SEBI bid to steady grey market
Trading of new issues may be allowed as soon as the prospectus is filed with the Securities and Exchange Board of India. SEBI is considering this move to regularise the grey market and bring it within its ambit, say sources. In the grey market, trading begins on the basis of anticipated allotment soon after an issue is announced. Deals are struck and an unofficial premium on the issue price emerges as operators buy and sell forward. The market, concentrated in the Rajkot, Ahmedabad and Jaipur belt, is often used by small investors to gauge the strength of a new offering. However, the unofficial premium market has virtually ground to a halt since February. Although the mandi still functions partially in Calcutta and Bombay, there is nil activity in the major centres — Jaipur, Rajkot and Ahmedabad..
Union Carbide denies charges
Union Carbide India Ltd (UCIL) has refuted allegations that it was surreptitiously removing material from its Bhopal plant to tamper with vital evidence relating to the 1984 gas leak disaster. UCIL’s counsel, Mr. Vijay Gupta, said the allegations by the Bhopal Gas Peedit Sangarsh, the Sahayog Asamiti and the Bhopal Group for Information and Action were totally “frivolous”. Mr. Gupta was filing a counter to an application moved on July 4 by the three organisations, seeking an injunction against the UCIL management from removing or selling any movable or immovable property of its Bhopal pesticide plant. UCEL told the court that the criminal case against it was being pursued by the CBI and if an illegal act was being committed with reference to any material involved in the criminal case, the CBI would have brought it to the notice of the court.
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