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August 11, 2001
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Money > Business Headlines > Report August 11, 2001 |
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Sebi seeks details of split sharesJanaki Krishnan The Securities and Exchange Board of India is asking stock exchanges to furnish details of share price and volumes of companies which split their shares. The securities regulator has sought market information before and after the stock split. Around 80-odd companies have gone in for a stock split thus far. Among the more prominent companies, which split their shares are Infosys Technologies, Zee Telefilms, Wipro, Hindustan Lever, among others. Incidentally, Cyberspace had also gone in for a stock split in September last year and the information being obtained gains significance in this respect. The split resulted in its face value going down to Rs 2 per share. Sebi sources said the information was being obtained at the insistence of the Joint Parliamentary Committee. Sebi officials said no detailed study had been done thus far on how the share prices of the companies moved after the stock split. While the regulator in its preliminary investigation report has given some statistics on price movements of companies such as Zee and others, there is no analysis on the pattern of price movement. Further, there is no information on how the other companies' shares have fared after the stock split. Infosys was the first company to split its stock from Rs 10 a share to Rs 5 share. ACC split its shares from Rs 100 a share to Rs 10 per share. Zee split its shares to bring down its face value to Re 1 a share. The idea behind the split was to increase liquidity in the stock, thereby reducing volatility and also making it more affordable to retail investors. Prior to the split in Infosys, the scrip had touched a high of Rs 17,000 per share during the boom phase in the market early last year. Wipro, whose scrip value is Rs 2 per share now, was also a highly volatile stock. In fact, after the stock split though the share prices were a bit subdued, the scrips regained their volatility once the market got used to the larger number of shares in the market. Powered by YOU MAY ALSO WANT TO READ:
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