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CHAT JOCKEYS
EVENTS

The Damani Chat

We had D Ambani, and we had G V Ramakrishna. We had Kamal Kabra and The Almighty (or at least their alter egos). All slugging it out in the marathon chat. In the course of which, Damani ducked no questions, told no tales -- just fielded all the curve balls with his well-known angry-man gusto.

Presenting, the Rediff On The NeT chat with our guest for the night... M G Damani.

Dan (Tue Sep 3 19:45:50 1996 IST):

Hello

Hello Shail

Hi Badla Ram

hello dan: we are waiting for Mr. damani to login... he will be here in 5 minutes...

I'm ready for your questions.

Where is Madan Gopalji?

mr damani, the badla crackdown may claim many broking firms. i thought badla was banned? why are we still indulging?

damaniji, you say the depository will be up in the first quarter of 1997. can u be more specific?

You have been a crusader against SEBI in Ramakrishna's time.Why are you silent now when the SEBI is attacking BSE brokers. WShy are you not safeguarding our interests?

The revised carry forward systme (formerly called badla) is permitted by SEBI. Infact BSE is the only exchange in the country which has been permitted to carry on the revised carry forward system and this system is absolutely safe and poses no danger to the market.

Madan Gopalji: Why is the BSE a copycat? Why do you copy whatever the NSE does? Why are you so short of ideas?

Hello Mr. Damani

hey, MG, who do you hate more: R H Patil at the 'Casino', or GVR, your old badla foe?

mr damani, do you think the BSE is too heavy with listed scrips? The facet that we once considered an asset may be working against the exchange today, don't you think?

What have you to say about the FIIs capture of the capital markets? Don't you think this poses a real danger to Indian capital markets? How can any capital market be so dependant on FIIs? Why you are not taking any action in this matter? I think you have become very quiet after your election.

Mr.Damani it seems BSE is supported only by the speculative nature of trading and not by clean investor friendly trading, is this true?

you like to pretend that you are a broker reforming the market, but isn't it a fact that you have no broking business to speak off and that is the source of your belligerence?

Badla Ram: The reason for that confontration against SEBI was the arrogant and dictatoril attitude of the then SEBI Chairman. He never believed in a dialogue with the result that the broking community was left withno choice accept confrontation. As far as the present chairmann is concerned, he firmly belives in the process of consultation prior to making any channges in the rules and regulations. This is why there is no need for a confrontationist attitude on the part of any exchange including BSE.

MG, why did the market react so drastically to Chidu's budget? was it the MAT or the non-voting shares or.....?

In america the brokers of the New York stock exchange realised well in time before the American exchange took off that they need to reform. Hasn't your realisation dawned only after the NSE's turnover crossed the BSE's. Are you not guilty of failing to realise that you cannot ignore SEBI and failing to implement automation in time?

Hullo, Mr Damani, pleased to meet you if only in cyberspace. As someone interested in the Indian economy I just want to know why the BSE is so unscientific. I mean your sensex falls and rises based on no real scientific basis. Why so?

R H PATIL: It is totally incorrect to say that I don't carry on any business. Infact there have been settlements where the business was more than Rs 40 to 50 crores per settlement. The basic fact is that the almighty has given me the courage of conviction and that is why I can stand up to a principled stand based on convictions.

damaniji, what about the depository? and what is the outcome of Price Waterhouse's FIRE project?

Sinclair Williams: It is true that you cannot always give logic for rise or fall in the Sensex but this is so everyhwere in the world and India cannot be an exception. for eg. In Japan if the Emperor sneeazes the market tumbles. Atleast in Bombay it is not that bad you can take todays example the index nosedived because of American bombing on Iraq.

what special role do you see for nri like me to bring the sensex back to booming, or rather how do we contribute to the growth of the stock market, of course with personal benefits and gain dharma from singapore

Yazad: Price waterhouse will submit the project report by September 15. which will include the cost benefit analysis as well. Immediatly after that we shall take a decision about choosing the party that will be awarded the consultancy for implementing this scheme that is depository as a project.

mr damani, everybody reviles FIIs. but it is only the FIIs who are propping up the market today. Even their investment seems to be dropping. Why? Are they finding greener pastures in GDRs?

will you go the competitive bidding route for the depository?

With all due respect, Sir, you are defending the indefensible. There are too many shenanigans on at the BSE which makes Wetsrens nervous of taking part in the great Indian economic revolution.

That should read Westerners

Dharma: I have strongly pleaded with the Finance minister Mr. Chidambaram to treat NRIs at par with foreign institutionals investors (FIIs) as far as taxation aspect is concerned. Precisely I want the long term capital gain tax to be brought down to 10 per cent just as the case for FIIs. thereafter, it will be people like you to invest in the primary and the secondary market in India in a big way.

How are your relations with the Ambanis? They are out to get you, I hear. Why did you take them on last year? Was it not extremely foolish to take them on?

what are the long term prospect of investing inthe bse compared to the otcei or the nse

I read in the papers that you expect USAID to fund the depository infrastructure. This is surely rubbish. The USAID as I should know funds only training and consultancy programmes and not infrastructure. If they did wouldn't they have given the money to my exchange which is much better than yours.

You have been BSE boss for five months now. Please give us five things you have done to make trading more honest and more user friendly.

what r your views on MAT? will it mean decreased investment in capital goods? will it mean less returns for investors as profits will fall?

Sincliar Williams: The percentage of such people in India and for that matter in BSE is not less or more than in any part of the world. In any case BSE has a record of punishing the errant members without fear or favour. Obviously no witch hunting can be done on the basis of wild and sweeping allegatilons without substantiating the same.

In my country, the US of A, we crush anyone who is involved in insider trading. What have you done to eliminate insider trading? Why have Indian stockbrokers such low credibility?

How you doing Mr Damani. I am loggin in from Chicago. I'd like to ask why Indian brokers treat the little guy, the small investor like rubbish?

what has happened Mr.Damani, getting nervous? I answered far more questions than you in the same time. Again I am better than you. copy me .

mr damani, what is the latest position on BOLT expansion? you don't seem to be moving as fast as the NSE on such far-reaching reforms...

Do you believe that a scam like the harshad Mehta affair can happen again?

Is this R H Patil of the NSE? Good to know you are here, Sir. I just want to know how much we admire your work at the NSE.

Why are you so quiet?

robin D: The Minimum Alternative Tax (MAT)was overdue in the sense many industries and companies enjoyed the benefit of no tax liability for more than two decades. A time comes when every company that makes profit must pay direct taxes. As far as investment in Capital goods is concerned, there could be a temporary slow down more to demonstrate the resistance than the real intention of not growing. I do not think this would by itself damage the market sentiment from the investors point of view so long as the Finance Minister (FM) keeps up his promise of giving sops to bring back the small investor.

Why are you not answering BADLA RAM's questions. We hear that the Ambani's plan to boycott your copy cat depository

mr cordon from chicago: i beg to take issue with you. i have always found my broker scrupulously honest. i guess there are bad apples in every profession. BTW, i am a small -- a very small-- investor. Only 5 feet, 4 inches tall!:-)

When do you think the mood will change on Dalal Street?

with the takeover becoming more of a established activitiy are the days of cartel to rig the prices over? how you fel when many of the brokers will be on the roads soon for lack of business?

Hi sinclair. Am I R.H.Patil of the NSE or am I not. I;ll keep you guessing. But thank you for your appreciation of the NSE. India's number one exchange.

what CAN Chidu do to bring back the small investor? i think the days of the small investor are history. even mutual funds take her for a ride.

P Vasool: The 1992-93 scam was basically a scandal in the banking sector. and if the vigilance in that sector is lax, the history may repeat. As far as stock exchange is concerned there was no scam and none is likely in the foreseeable future. One must remember that Finacial markets the world over are full of hazards like the Barrings case in Singapore/Tokyo or the recent scam at LME.

with the takeover becoming more of a established activitiy are the days of cartel to rig the prices over? how you fel when many of the brokers will be on the roads soon for lack of business?

Ok Damani, I've been watching this for sometime. You cannot even take on R.H.Patil, what do you have to say to me -- you liar?

ROBIN D: I DO NOT BELIEVE IN PESSIMISM AS A WAY OF LIFE. I BELIEVE IN PERSEVERANCE AND I THINK NO GOVERNMENT IN OUR COUNTRY CAN AFFORD TO NEGLECT THE INTEREST OF 50 MILLION INDIVIDUAL INVESTORS FOR LONG. IN ANY CASE INDIA'S ECONOMIC GROWTH IS DIRECTLY LINKE WITH THE STATE OF THE CAPITAL MARKET.

MSSRS GVR & PATIL: hey guys, ease up, will you

This one is for G V Ramakrishna: i do not believe you r really there, of course, but for the record, my personal feeling is you did a lot to foul up market sentiment by the ill-considered ban on badla. what did you have against brokers, anyway???:-(

G V RAMAKRISHNA: THIS EXCHANGE (NSE) HAS COME UP BECAUSE OF PATRONAGE FROM THE GOVERNMENT. LET BSE OPERATE FROM 50 CENTRES AS NSE DOES TODAY AND THEN COMPARE THE PERFORMANCE. FOR NO RHYME OR REASON BSE HAS BEEN REFUSED THE PERMISSION TO GO BEYOND BOMBAY.

OK Mohandas , we understand your sympathy for Damani - who can't seem to answer our questions. Get him to speak will you?

hey, MG, why r u so angry? quit shouting, will ya.

BOLT is a problem which has happened in 1996, we are talking about the discipline required earlier. Isn't it a fact that your brokers are not with you on BOLT expansion also , particularly if your proposal to the finance ministry reduces the BSE's card value from the already low Rs 1.5 crore to Rs five lakhs of a Baroda or Mangalore card

damaniji, we would appreciate it if you answered the questions that really matter -- like the one on cartels and takeovers. are the days of cartels numbered when the days of takeovers have arrived with a vengeance?

B MOHANDAS: THE RIGGING OF PRICES HAS NOTHING IN COMMON WITH THE TAKEOVER CODE. I THINK ATTEMPTS TO ACQUIRE COMPANIES THROUGH FRIENDLY AND OR HOSTILE TAKEOVER WILL BECOME ORDER OF THE DAY IN A TRANSPARENT MANNER AND THIS SHOULD BE WELCOME. THIS DOES NOT IN ANY MANNER EFFECT THE BROKING BUSINESS ADVERSELY. IF ANYTHING IT MAY BRING MORE BUSINESS TO THE EXCHANGE. NATURALLY THIS WILL BE SHARED BY THE BROKERS.

damaniji, on a macro level, what further steps does the BSE plan to make trading more transparent and friendly for the small investor? Forget the FM, what is the exchange doing?

quit shouting, we're not deaf .....

Please suggest some good scrips to invest in. Would like to make a lot in limited time. Can you suggest real winners?

YAZAD: THE CARTELS ARE SOMEBODY'S FIGMENT OF IMAGINATION PARTICULARLY WHEN THE TRADING CYCLE IS JUST FIVE DAYS OR LESS IN ONE SETTLEMENT SO THERE IS NO QUESTION OF ANYBODY FORMING A CARTEL WITH OTHERS AND WORKING IN CONCERT OVER SUCH A SHORT CYCLE.

Dear yazad buddy I am very much here. If I did things to foul up market sentiment why cannot damani get over me two years later and clean up things? The market needed disciplining and the dead primary market, short sales by BSE directors and price rigging only proves it. I would have swept it clear by now.

BROKE: I WOULD SUGGEST THE INDUSTRIES WHICH WILL DO VERY WELL THIS YEAR 1) AUTO ANCILLARIES 2) TWO WHEELERS 3) SOFTWARE INDUSTRY 4) FERTILIZERS 5) PESTICIDES 6) TRACTOR MANUFACTURERS AND 7) IRRIGATION EQUIPMENT SUPPLIERS

PLEASE suggest some really fast winners.Cut the cackle and answer man!

PLEASE suggest some really fast winners.Cut the cackle and answer man!

damaniji, would you like to respond to GVR's note to me a couple of steps down??

Can you give actual Company names? I am new to this field.

hey guyssssss! get on the wagon... free investment advice!!!!! whooooeeeeee....

G V RAMKRISHNA: I THINK I KNOW THE PULSE OF MY MEMBERS BETTER THAN YOU. A SAMPLE OF 3 OUT OF 600 IS A LAUGHABLE POLL. I AM SURE ONCE THE BOLT EXPANSION COME THROUGH YOUR DOOM'S DAY FORECAST WILL BE PROVED AS A FALSE ALARM WITHOUT ANY BASIS.

Let patil and GVR go to hell. I was able to rig every raddi scrip in the market. Damani could do nothing to me. Talk about discplining errant members. Now I have quit the governing board of my own volition.

YAZAD: THE EXCHANGE HAS A LIMITED ROLE AND LIMITED POWERS TO BRING ABOUT A CHANGE IN THE SENTIMENT. WE ARE INTRODUCING TRADING IN DEBT SEGMENT WHICH SEEMS TO BE THE IN-THING FROM SEPTEMBER 9. THE RECCENT STEP TAKEN BY BSE TO HELP INVESTORS SELL/BUY ODD LOTS IN ALL SCRIPS IS A UNIQUE ONE. AND NO EXCHANGE IN THE COUNTRY THOUGHT OF SERVING THE MASS OF INVESTORS WHICH WERE STUCK UP WITH ODD LOTS.

Damaniji,please give names...so I can get on with getting rich quick

hey MG, who do you hate more... GVR or Patil? SEBI or NSE?

damaniji, would you like to respond to this? it is from GVR... Dear yazad buddy I am very much here. If I did things to foul up market sentiment why cannot damani get over me two years later and clean up things? The market needed disciplining and the dead primary market, short sales by BSE directors and price rigging only proves it. I would have swept it clear by now.

YAZAD: CONTD: THANKS TO BSE'S SINCERE EFFORTS AND ASSITANCE, UNIFORM BAD DELIVERY NORMS THROUGHOUT THE COUNTRY HAS BECOME A REALITY. AN INVESTOR CAN NOW REST ASSURED THAT HE WILL GET REPLACEMENT FOR BAD DELIVERY WITHIN 21 DAYS INCLUDING THE TIME TAKEN TO RESOLVE INTERECXCHANGE PROBLEMS. SETTLEMENT CYCLES ARE NOW DOWN TO ONE WEEK FOR ALL THE 6,622 SCRIPS LISTED ON BSE. AUCTIONS GET COMPLETED ON THE BOLT WITHIN ONE WEEK OF THE SETTLEMENT AND THIS HAS BEEN VERY WELL RECEVIED BY THE INVESTORS.

I computerised this closed club of brokers, who hate reform. Now you are claiming credit for it. If I had not got you BOLT you could never have spoken about expansion, or trading in odd lots, for that matter.

YAZAD: THIS QUESTION CAN BEST BE ANSWERED BY SEBI AND IT'S PRESENT CHAIRMAN. I DON'T BELIEVE IN SELF PATTING.

You claim credit for doing everything first. Be it uniform bad delivery norms, capital adequacy norms (something you were averse to) or even setting up a police chowkey outside the BSE building. How do you justify this? It take the guts of a person like me to respond to policce summons instead of claiming credit for setting up a police chowkey.

K KABRA: THIS QUESTION SEEMS TO BE FROM A FAKE KABRA AND NOT MY PREDECESSOR IN OFFICE. MR KAMAL KABRA KNEW VERY WELL THAT I HAD BEEN GIVEN THE RESPONSIBILTY OF IMPLEMENTING THE BOLT SCHEME BY HIS PREDECESSOR B B MERCHANT IN MARCH 1995 THAT IS BEFORE MR KABRA TOOK OVER AS PRESIDENT. INFACT THE BOLT WAS COMMISSIONED ON MARCH 14 1995 WITH 818 SCRIPS AND A RECORD 5,000 SCRIPS WERE TRRANSFERD FROM OPEN OUT CRY TO ONLINE TRADING IN RECORD TIME FRAME OF 50 WORKING DAYS. I WOULD GIVE FULL CREDIT FOR THIS TO THE ENTIRE TEAM WHICH WORKED ON THIS PROJECT.

mr damani, how do you explain the skewed discounting the market gives stocks? some really fundamentally great companies are quoting at abysmal PEs. what's wrong? too many listed stocks?

Never mind all these guys, I believe in your good judgement. Please give the Names of good scrips. Thanks

hiya broke, welcome to the club. actually, i should have logged in as STONY, and u r BROKE. get it?

I have been keeping quiet for a long time now. Not without reason, as being a small investor, I have no voice in the stock market. But I would like to ask Damani what he is doing to clean up the mess the BSE is in. My arbitration cases against members never come up for hearing and never get resolved. My bad delivery does not get rectified. Why do your members discriminate against me so much?

K KABRA: THIS QUESTION SEEMS TO BE FROM A FAKE KABRA AND NOT MY PREDECESSOR IN OFFICE. MR KAMAL KABRA KNEW VERY WELL THAT I HAD BEEN GIVEN THE RESPONSIBILTY OF IMPLEMENTING THE BOLT SCHEME BY HIS PREDECESSOR B B MERCHANT IN MARCH 1995 THAT IS BEFORE MR KABRA TOOK OVER AS PRESIDENT. INFACT THE BOLT WAS COMMISSIONED ON MARCH 14 1995 WITH 818 SCRIPS AND A RECORD 5,000 SCRIPS WERE TRRANSFERD FROM OPEN OUT CRY TO ONLINE TRADING IN RECORD TIME FRAME OF 50 WORKING DAYS. I WOULD GIVE FULL CREDIT FOR THIS TO THE ENTIRE TEAM WHICH WORKED ON THIS PROJECT.

Hello!! just for a change....the people having children at their home, please check http://www.newshouse.com (write it down, pls) after you finish conversing with Mr Damani.....MR DAMANI!! NOTICED?

what is the fate of dharavi scrips into which the so called small investor was lured?

damaniji, i would like to repeat mohandas's question.

mr damani, how do you explain the skewed discounting the market gives stocks? some really fundamentally great companies are quoting at abysmal PEs. what's wrong? too many listed stocks? don't you think the sheer number of listed scrips is playing havoc with the investors?

wow!! all big-shots here.....

SMALL INVESTOR: YOU ARE WELCOME TO COME TO ME WITH YOUR PROBLEM AND I ASSURE YOU, YOU WILL GO BACK FULLY SATISFIED AS I AM SURE YOUR GENUINE PROBLEM IF ANY WOULD BE RESOLVED WITHOUT DELAY.

newshouse??!! who the h.. r u? and why r u doing self-promotion out here, pal??:-)

News House : Don't be a cheapstake...blowin' your own trumpet at someone else's parade! Shame

presumptious indeed. What about the police chowkey?

MG, aren't you the guy who were desperately combating the ban on badla? how come now that it is resumed, you do not want it? what's wrong with it as it is?

Does BSE have plans for computer-based trading suitable for NRIs?

MOHANJI AND YAZAD: THE INVESTOR IS BASICALLY DISILLUSIONED BECAUSE HE WAS EXPECTING TOO MUCH THROUGH THIS BUDGET AND HE IS NOW DISAPPOINTED. THE SYMPTOMS ARE LIKE THE WITHDRAWAL SYNDROME WHEN A PERSON LOOSES ALL HOPES. HENCE, THE LACK OF INTEREST IN THE SCRIPS WHICH HAS A GREAT POTENTIAL TO RISE. LACK OF LIQUIDITY IN B1 AND B2 SCRIPS IS LARGELY DUE TO DENIAL OF BOLT EXPANSION. AS FAR AS DHARAVI (KACHRA) SCRIPS ARE CONCERNED THE SOONER THE INVESTORS FORGET ABOUT THE SAME FOR GOOD, THE BETTER.WE ARE SERIOUSLY CONSIDERING CLASSIFYING SUCH COMPANIES SEPARATELY SO THAT THE BUYERS BEWARE.

Please answer me, I've gotta go now. What Company do I invest in. I have a son to see through college and a daughter to marry off.. Please advise.

broke, why don't you shell out a few bucks and come to my table. i'll give you great advice. do u really think such avice comes free??? come on.....

SCHWAB: THE FORMAT FOR TRADING IS THE SAME FOR ALL INVESTORS. DURING MY RECENT VISIT TO DUBAI, NRIs REQUESTED FOR A BOLT TERMINAL AT THAT PLACE. I HAVE DECIDED TO TAKE UP THIS REQUEST WITH SEBI AFTER BOLT EXPANSION WITHIN THE COUNTRY IS CLEARED. ONE OF OUR ENTERPRISING MEMBER HAS ALREADY COME FORWARD WITH A REQUEST TO SET UP A TWS (TRADER WORK STATION) IF ALLOWED.THIS WOULD BE AT ANY CONVINENT PLACE/PLACES IN U.A.E.

ESSAR, whoever you are, you are logged in but not saying a word. what's the matter? lost your tongue?? or have you got Repetitive Stress Injury on your wrist? come on, man, say something.

robin d: is that past tense? Stop making Damaniji look cheap!

You reluctance to answer my questions confirms my belief that Indian brokers take investors for a ride.

MG, aren't you the guy who were desperately combating the ban on badla? how come now that it is resumed, you do not want it? what's wrong with it as it is?

Why are you so scared of the Ambanis?

what are your views on book building and market making in IPOs? will that help the small investor any? what are the pitfalls here?

ROBIN D: BANNING FORWARD TRADING (BADLA) WAS A WRONG STEP. THE THEN CHAIRMAN OF SEBI THOUGHT THAT AT RS 288 CRORES A DAY, THE VOLUMES AT BSE WERE VERY HIGH AND AS PER HIS VIEW THIS MEANT EXCESSIVE SPECULATION. HE THEREFORE BANNED FORWARD TRADING. THE SAME GENTELMAN PROPOGATED SETTING UP OF AN EXCHANGE WHICH WOULD BE A PURE CASH AND DELIVERY MARKET WHERE INVESTORS HAVE THE SAY. IT WAS CATEGORICALLY STATED THEN THAT SPECULATORS WOULD HAVE TO SPECULATE ON A SEPARATE EXCHANGE. THIS NEW EXCHANGE HAS NOW BECOME A VIRTUAL CASINO AND THE GENTELMAN IS NOW ABSOLUTELY QUIET EVEN WHEN THE LEVEL OF SPECULATION IS 95 PER CENT OF 2,500 CRORES OF RS PER DAY. IT REQUIRED A VIGILANT SEBI's INTERVENTION TO BRING THIS DOWN TO A SENSIBLE LEVEL OF RS 600 CRORES.

Thanks Damaniji,even if you couldn't / wouldn't answer me. Bye

P VASOOL: THE GENERAL PERCEPTION IS THE OTHER WAY ROUND. I AM ONLY AFRAID OF ALMIGHTY.

so whom go you hate more? GVR or Patil? SEBI or NSE?

Come, come, MG. The Ambanis are the Almighty. And you better watch out!

You have more enemies than Narasimha Rao. Where do you think you'll head after your term? It better be far away!

YAZAD: BOOK BUILDING IS A NEW CONCEPT FOR OUR COUNTRY AND PEOPLE WILL HAVE TO BE EDUCATED ABOUT IT. IN DUE COURSE BROKERS CAN USE THEIR NETWORK TO HELP THE BOOK BUILDING PROCESS WHICH FOR OBVIOUS REASONS WILL BE UNDERTAKEN BY MERCHANT BANKERS AFTER THEY HAVE NEGOTIATED AND FINALISED A TENTATIVE PRICE THAT SOME OF THE LARGE BUYERS ARE LIKELY TO PAY. WTIHOUT THIS INDICATION IT WOULD NOT BE POSSIBLE TO ATTRACT RETAIL INVESTORS.

It's good to know you are afraid of someone. The 'general perception' is you are afraid og nobody but yourself.

Mr Damani, looks like you have YAZADitis,you only answer his questions. No fair.......

Whatever you say, MG, you BSE brokers had better clean up your act. You have done nothing, I am ashamed to say, to improve the lot of the small investors. I guess we are Dharavi kachra.

Is Dhirubhai logged in?

P VASOOL: I DON'T SEE ANY VISIBLE SIGN OF YOUR FEAR OR PERCEPTION. IN ANY CASE YOU WILL FIND ME VERY MUCH IN BSE BOARD FOR TWO MORE YEARS AFTER MY PRESENT TERM AS PRESIDENT IS OVER.

ESSAR, I see you, but I don't hear you. Who/where are you??? Reveal yourself at least to your maker.

I'll wager you that the Ambanis will get you out next year. Do you drink? If you do, a drink at the Harbour Bar!

broke, that's probably because i am not trying to cadge free advice. anyway, what are you still doing here? you said you had some mouths to feed at home......?

Why did you take on the Ambanis? Do you think they treat the BSE like their fiefdom?

How long will FIIs dominate Dalal Street?

TT GOPAL: I DON'T THINK ANYBODY DARE TREAT BSE AS HIS/IT'S FEIFDOM. IT IS AN INSTITUTION WITH IMPEECABLE STANDING AND REPUTATION AND NOBODY DARE CHALLENGE IT.

CEASE AND DESIST FORTHWITH OR YOU ARE HISTORY

P VASOOL: AS LONG AS THERE ARE NO STRONG INDIAN INSTITUTIONS WHICH CAN MATCH THEIR FINANCIAL MUSCLE. WE NEED SIX FUNDS OF THE SIZE OF UTI (RS 65,000 CRORE EACH) TO BRING LEVEL PLAYING IN THE MARKET. THEN BOTH THE INDIAN INSTITUTION AND THE FIIS WILL ENJOY THE GAME BUT ON EQUAL FOOTING.

Damani, will it be possible for NRI to invest in BSE via computer/internet in the near future? If yes, what are your specific plans as of now?

SCHWABB: HOPEFULLY NRIs WOULD BE ABLE TO INVEST THROUGH COMPUTERS SOONER THAN LATTER MAY BE 1997 THIS WOULD NEED SOME AMENDMENTS TO FOREIGN EXCHANGE REGULATION ACT (FERA). AND I'M SURE NRIs WOULD IMMENSELY BENEFIT FROM THIS KIND OF TRADING. BSE WOULD TAKE THE LEAD TO ESTABLISH THIS FACILITY FOR NRIs.

THANK YOU FRIENDS FOR ASKING INTERESTING QUESTIONS AND POSING QUERRIES. IF SOMEONE IS LEFT OUT HE/SHE IS WELCOME TO WRITE TO ME AT THE BSE ADDRESS THAT IS: BSE,BOMBAY 1

Thank YOU, damaniji. more power to you and your reform plans. Goodnight.

Damani, Thanks for your response. I have a corp. in US. I plan to go public in NASDAQ (New York) Jan. 1998. I have plans for opening a branch office in Bangalore, India. Can I organize the Branch co. as an Indian co. and go public with it in BSE ? If yes, which Indian Govt. entity will be able to offer more information and guidance? (Of course, I will use JM or a similar manager).

Everyone: Surprise Surprise....guess who is comin to the Rediff Guest chat on Thursday .............none othert than Sanjay Manjrekar. So be there and pass the word along.

Everyone: Surprise Surprise....guess who is comin to the Rediff Guest chat on Thursday .............none othert than Sanjay Manjrekar. So be there and pass the word along.