Investors lap up DVR shares

DVR shares of four companies rose by 3.44% to 5.30% at 14:30 IST on BSE on reports that Indian exchanges may consider admitting such shares on their benchmark indexes.

Future Retail-DVR (up 5.30% to Rs 67.60), Tata Motors-DVR (up 5.29% to Rs 349.25), Gujarat NRE Coke-DVR (up 4.96% to Rs 4.87) and Jain Irrigation Systems-DVR (up 3.44% to Rs 69.20), edged higher.

The S&P BSE Sensex was up 242.08 points, or 0.93% at 26,345.31.

According to the media report, the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE) are considering admitting shares with differential voting rights (DVRs) on their benchmark indices, Sensex and Nifty.

The index committees of the top bourses are holding discussions with relevant market participants before arriving at a decision, report said.

The move is aimed at making Indian benchmark indices align with the best-in-class standards of its peers like S&P in the US and Bovespa in Brazil, reports added. Earlier this year, S&P 500 allowed shares with differential (non) voting rights, while Bovespa provides an emerging market case for DVR shares performing on a par or sometimes better than normal stock.

An approval to include DVR shares in the main stock indices could narrow DVR shares' discount to regular shares, reports sugested.

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