BoR to issue warrants with rights: Bank of Rajasthan has decided to issue convertible warrants alongwith its proposed Rs 67-crore rights issue. The rights issue, at a premium of Rs 5, is in the ratio of five shares for every two shares held in the bank and one warrant will be attatched to each equity share. The warrantsoffered as a part of the rights issue will be converted into equity shares at the option of the warrant holders within twelve to eighteen months from the date of issue. The warrants are proposed to be listed at the Jaipur Stock Exchange, the Bombay Stock Exchange, the Calcutta Stock Exchange, the Delhi Stock Exchange and the MP Stock Exchange.

Negative return from Indian bourses: Most emerging markets, including India, have given a negative return over the past one year. A recent study of eleven emerging markets across the globe undertaken by SBI Capital Markets reveals that India and Indonesia were the worst performers in Asia in 1998. The two countries gave a negative return of 30 per cent over the past one year. South Korea was the star performer with a return of over 50 per cent, followed by Thailand at 20 per cent and China at 5 per cent. The laggards included Latin American countries like Brazil and Venezuela as well as Russia. In fact, Russia was the worst performer with a negative return ofaround 90-95 per cent.

Volumes in 12 demat scrips rise: Trading volumes and prices of most of the 12 scrips shortlisted for mandatory demat trading at the National Stock Exchange from Wednesday onwards, remained on the upswing in line with the general trend in the market. A statement issued by NSE put the response from investors as "tremendous" citing figures of a turnover of Rs 155 crore in these 12 scrips and 25,578 trades representing 10 per cent of the total trades carried out at the bourse. Brokers also pointed out that for some period of time there could be a slight squeeze on the supply of these shares as investors still go about dematerialising their shares and this could provide an opportunity to speculators to push the prices up.

Tea scrips perk up on higher output expectations: Expectations of a higher production next year coupled with resumption of exports to Russia and higher dividend yields have seen operators rushing to the counters of tea manufacturers. Scrips like AFTIndustries, Assam Brooke, Assam Company, Bishnauth Tea, Dhunseri Tea, Harrison Malayam and Tata Tea have gained substantially on the bourses. In the last five trading sessions, Bishnauth Tea has moved up from Rs 55 to Rs 70.15, AFT Industries from Rs 106.5 to Rs 136.6 and Dhunseri Tea from Rs 27 to Rs 32.8. Tata Tea has also risen from Rs 290 on December 17 to its current level of Rs 365.5. According to analysts, the the tea industry is expected to close calender year 1998 with more than expected exports to Russia and a huge order from Iraq.

Sebi suspends brokers: Sebi has suspended Suresh Chandra Agarwal & Rakesh Kumar Agarwal of Madhya Pradesh Stock Exchange for a period of six months with effect from January 7 or till such time he comes forward before Sebi for the inspection of books of accounts. The member has failed to furnish books of accounts and other documents for inspection to the Sebi inspection team.

Registration cancelled: Sebi has cancelled the registration of Gujarat Shares &Securities, member NSE with immediate effect. Enquiry was initiated against the broker on the basis of various violations like not maintaining segregation between clients' and own funds, delay in payment to clients, not entering into agreement with the clients and not reporting off-the-floor transactions and spot transactions to the Exchange. The broker has also surrendered their trading membership to the exchange.

Sebi suspends JSE broker: Sebi has suspended Praveen Ramavat member Jaipur Stock Exchange, for a period of six months with effect from December 31, for not maintaining books of accounts, irregularities in issuance of contract notes, not maintaining strict lines of segregation between clients accounts and own account, dealing with unregistered sub-brokers, not reporting off-the-floor transactions, failure to obtain client registration application form duly filled, delay in delivery and payment to clients and delay in rectification of bad deliveries. Sebi has also suspended Shrenik J Shah,for a period of four months with effect from January 1, 1999, for issuing fictitious contract note and non-cooperation with Sebi inspection team.

ELSS from Kothari Pioneer: Kothari Pioneer Mutual Fund's (KPMF) fifth equity linked savings scheme (ELSS) Taxshield '99 opens on December 31. The fund is expecting a corpus of about Rs 5 to Rs 10 crore. Fifty per cent of the corpus would be invested in the information technology sector. The investors will benefit from 20 per cent rebate under section 88 of Income Tax Act. The earlier four ELSS of KPMF have outperformed the market. The issue closes on March 31, 1999.

OTCEI cuts transaction cost: The Over-the-Counter Exchange of India (OTCEI) has reduced transaction charges for its dealers with effect from January 1, 1999. In the physical mode, the transaction charges have been reduced from the present 0.00675 per cent to 0.005 per cent for a turnover of upto Rs 100 crore. The transaction cost for turnover over Rs 100 crore, in the physical mode,will be lower at 0.003 per cent. For delieveries in the dematerialised mode the transaction charges have been reduced from the present 0.00375 per cent to 0.0025 per cent, and for negotiated trades of 0.002 per cent. The transaction cost for the members of the exchange is at 0.0025 per cent for turnover in physical mode and 0.0014 per cent for delivery in the dematerialised mode.

Market advance is likely to continue: Yesterday this column had a made careful analysis of the technical position and pointed out that the Sensex is likely to gather strength. This deduction was gathered from the limited risk on the downside, and the fact that the index was taking support on a weekly trend line.