Wednesday, September 9, 1998
Unit Trust to step up stocks' exposure
The sagging morale of the secondary market is set to receive a booster dose, with the new Unit Trust of India chairman P S Subramanyam identifying investments in equity as his priority. UTI's investible funds, currently at Rs 60,000 crore, are being targeted to grow by 20% a year for the next four years, leading to a deluge in fund flow into the secondary market.
VSNL global depository receipt issue faces a bumpy ride ahead
The proposed global depository receipt (GDR) issue of Videsh Sanchar Nigam Ltd (VSNL) could not be more ill-timed. The company has been headless since the time chairman and managing director BK Syngal was denied an extension of his tenure. To add to the government's woes, the VSNL GDR is currently trading at around $10, a discount of 28.2% to its issue price of $13.93.
RBI hikes yields on four gilts
The Reserve Bank of India (RBI) launched aggressive open-market operations (OMOs) by hiking the yields on four securities in its sale list. The bank has also indicated that it will soon put out the 364-day treasury bills and other short-term securities list to sterilise the impact of the Resurgent India Bonds proceeds.
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