GRASIM INDUSTRIES - Undercapitalised

Mock Beginning Jairaj Kapadia THE Over-the-Counter market in equity shares of companies not listed on the stock exchanges was declared open on September 29 by the OTC Exchange of India, comprising the financial institutions which were authorised some yean back by the government to establish an OTC market in unlisted scrips. But the market was not inaugurated for trading on that day with Vasundhara Rasayans, the first and the only company so far listed with the OTCEI. No trading was done and no deals were struck in the Vasundhara Rasayans scrip. And this was in spite of Vasundhara Rasayans having completed its public issue of share capital further to OTCEI listing on August 28 and having made allotment of shares to 3,172 successful applicants from among the public The situation of the market being declared open but there taking place no trading in the shares of the listed company was due primarily to the fact that Canbank Financial Services as the agency sponsoring Vasundhara Rasayans for listing with the OTCEI had not picked up the mandatory 5 per cent of the share capital issued by the company as it was required to do under the OTCEI rules. Nor did Credit Capital Finance Corporation do that, after it was appointed additional market maker in Vasundhara Rasayans scrip. Both are said to have exercised the waiver, because they were prevailed upon by the management of the company. But the two had faulted in their obligations as market makers.