BSE launches 500-scrip index

The BSE-500 index has a market capitalisation of Rs 4,25,779 crore as on March 31, 1999 which is 82.17 per cent of the total BSE market capitalisation on the same day. The index represents all the 23 major industries and 102 sub-sectors of the economy and is the most broad-based index, possibly accounting for the highest market capitalisation, Rathi said.

The base date of the index has been fixed as February 1, 1999. The base value of the index has been fixed at 1000 points.

Meanwhile, the BSE also appointed Price Waterhouse Coopers (PWC) as consultants to articulate `Vision 2005′, one of the strategic objectives of BSE’s ambitious project Mission 2000.

PWC will undertake a study that would cover major stock exchanges in the world. “The scope of work would include regulatory structure, role of regulatory bodies, supervision of exchanges, supervision of broker dealers, investor protection regulations, ethical standards, market structure and size, organisations, products, technology, competition and internet trading,” he said.

Rathi said the BSE has decided to sponsor a study to do research on "rate of return on equities". The research would be done by the Society for Capital Market Research and Development (SCMRD), which is a non-profit body registered under the Society Act. L C Gupta is the director and member Secretary of SCMRD, which has a board of governors headed by Abid Hussain and includes P G Mankad and Rakesh Mohan.

Rathi said that the scope of research will encompass rate of return on different kinds of portfolios like that of large companies, mid-sized and small sized companies, frequency distribution by rate of return, returns by industry groups, return on Sensex and other indices. The period covered would be 1980 till date, he added.

Winding-up notice against 163 cos

MUMBAI: The Bombay Stock Exchange (BSE) would initiate winding-up petitions against 163 companies in addition to five such notices already issued for erring on various issues.

The exchange has zeroed in on 163 companies in the "Z" category that have failed to reply to its notice and defaulted on all investor related issues. "We would also request the court to appoint a provisional liquidator for better recovery or else it would be a mere academic exercise," said a BSE official

The exchange has also written to the Board for Industrial and Financial Reconstruction (BIFR) to allow it to proceed against sick companies. Notices issued by the exchange to 39 companies were returned undelivered even as the number of companies in the "Z" category has risen to 295. Rathi, however, declined to classify these as "vanishing companies".