Wipro falls on options norms worry

MUMBAI: Shares in Indian software services firm Wipro Ltd. fell as much as

6.28 per cent on Monday on speculation the stock may not fulfill the criteria

laid down by the regulator for options trading, dealers said.

By 2:26 p.m. (0856 GMT), the stock as down 4.89 per cent at Rs 1,584.90, off

an early low of Rs 1,562.20, while the benchmark Bombay index was 1.2 per cent

weaker.

Under the norms for allowing options trading in stocks, the Securities and

Exchange Board of India said on Friday that the founders' holding in the firm

should not be more than 70 per cent. "Traders fear this criteria could

exclude Wipro from the list of shares which will be available for options

trading," said a dealer with a foreign brokerage.

Wipro's Chairman Azim Premji owns more than 80 per cent of the Rs 458.31

million equity in the company. Wipro shares have outperformed the broad market

rising more than 86 per cent after hitting a 52-week low of Rs 852.75 in

mid-April while the benchmark Bombay index has gained 10.6 per cent during the

same period.

(C) Reuters Limited 2001.