MUMBAI, Nov 23: The level of dematerialisation as a percentage of the floating stock of a company has exceeded 20 per cent in 22 companies. This startling revelation forms part of a study conducted by leading foreign financial institution, ING Barings (and updated by The Financial Express on data provided by National Securities Depository Ltd).

ING Barings has in its study zeroed in on a percentage of floating stock of each scrip. It has then taken the level of percentage of dematerialisation in a stock. As the level of dematerialisation is pertinent in the context of the floating stock (since promoters are not in any case going to dematerialise their holdings), the percentage of shares forming part of the floating stock has been arrived at.

GSFC tops the list of companies with nearly 90 per cent of its floating stock having been dematerialised. It is followed by Grasim at 72.49 per cent, BSES at 62.53 per cent, Hindalco at 56.10 per cent, ICICI at 55.74 per cent, Century Textiles at 54.44 per cent, ITC Bhadrachalam at 47.88 per cent, Cromptom Greaves at 46.50 per cent, Escorts at 42.73 per cent, Indo-Gulf Fertilisers at 40.28 per cent, IPCL at 35.92 per cent, Indian Rayon at 35.39 per cent, Bombay Dyeing at 32.03 per cent, Reliance at 28.45 per cent, HDFC at 29.53 per cent, Arvind Mills at 24.89 per cent, L&T at 24.89 per cent, ACC at 24.41 per cent, DSM Ltd at 24.28 per cent, Siemens at 21.32 per cent, Crisil at 20.46 per cent and BPCL at 20.67 per cent.

In some other key stocks the level of demat as a percentage of the floating stock is still below the 20 per cent mark.

In State Bank of India the level is 11.78 per cent, HLL at 9.93 per cent and IDBI at 14.81 per cent. Meanwhile the number of shares that have been dematerialised has gone up to 752 million shares a jump of 200 million shares since the SEBI diktat of October 15 which had made it mandatory for institutions, both domestic and foreign, to settle trades only through the depository. Market sources say that the process of dematerialisation is only expected to pick up more as and when the deadline date approaches.

Copyright © 1997 Indian Express Newspapers (Bombay) Ltd.