Financial Daily from THE HINDU group of publications
Thursday, Sep 22, 2005
Financial Daily from THE HINDU group of publications Thursday, Sep 22, 2005 |
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Markets
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Mutual Funds Pru ICICI awaits BSE nod for resumptions in SPIcE trading Nilanjan Dey
Kolkata , Sept 21 PRUDENTIAL ICICI MF, which recently suspended fresh sale of its exchange-traded fund, SPIcE, following a caveat from the Bombay Stock Exchange, is keenly awaiting an assessment by exchange authorities for resumption of transactions. Unusual transactions in SPIcE, which made news because of a sudden spurt in the price, had prompted the move. The situation, Pru ICICI MF feels, may now warrant a re-look. "We will have to take BSE's view on the matter," said Mr Pankaj Razdan, Managing Director of Pru ICICI MF, adding that investors may also want to know the latest developments in the exchange-traded fund (ETF). The fund hit headlines in May-June when its price jumped over 140 per cent in a single week or so. It was also noticed that the aggregate value of the units traded was exceptionally large and this set alarm bells ringing. It also brought the BSE management into the picture. SPIcE (Sensex Prudential ICICI Exchange Traded Fund) was conceived as a listed security, where the price of one unit was roughly 1/100th the Sensex value. An investor could buy one unit and keep it in a demat account, just like any other instrument. Mr Razdan also referred to the "confusion" in some quarters of the market, seemingly due to similar-sounding names. The exchange too had mentioned that some sections trading in SPIcE units had mistaken it for other listed securities. It had also advised brokers to ensure that clients were aware of the ETF's characteristics before ordering transactions. The last traded price for SPIcE according to BSE, is Rs 158.75 — down from the 52-week high of Rs 270 (reached on May 30) but still significantly more than the low of Rs 44.
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