DSE says NIIT reply unsatisfactory

While company officials could not be contacted despite several attempts exchange sources, however, indicated that bonus issue was not on agenda of NIIT board meeting on October 14.

NIIT had announced bonus shares at the rate of 1:2 after the board meeting with DSE taking an exception to the announcement saying it was in violation of listing agreement.

Sources said exchange had asked for theminutes of the October 14 board meeting to study the matter closely. Market sources said that other bourses are also pursuing the matter with the company in accordance with the listing agreement, which provides for prior intimation to stock exchanges of any development that could prove to be price sensitive.

Sources said the NIIT reply to the showcause was faxed to DSE late Tuesday and could be taken up only today the last two days were holidays. Immediately after announcement of bonus shares, NIIT’s share price rose to Rs 1241.75 from Rs 1200 the previous day.

According to the stock exchange, NIIT had announced the bonus issue at its board meeting but did not intimate the stock exchange in advance of the board meeting to consider the bonus issue. The company notice to the exchange only mentioned that the company board will be meeting on October 14 to consider recommendations of dividend and approve the audited financial results for the year ended September 30, 1998.