1
 In Bombay stock market circles, the buzzword is mega.
5003
span

2
 At least 40 companies are coming to the capital market
5002
span

3
 to raise $6 billion, an amount
5001
span

4
 never thought possible in India.
3
elaboration-object-attribute-e

5
 When they talk mega-issues,
5004
Topic-Comment

6
 they're truly talking mega,
5004
Topic-Comment

7
 says S.A. Dave, chairman of the Securities and Exchange Board of India.
5004
attribution

8
 The capital market is booming.
5005
elaboration-additional

9
 But the mega-issues are raising megaquestions about the rapidly evolving Indian capital market.
5021
span

10
 One is whether there is enough money 
5009
span

11
to fund the new issues
5008
span

12
 without depressing stock trading.
11
manner

13
 Moreover, in the relatively unregulated Indian stock markets, investors frequently don't know 
5010
attribution-n

14
what they are getting
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span

15
 when they subscribe to an issue.
14
circumstance

16
 A prospectus in India doesn't always tell a potential investor much.
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span

17
 Some of the large amounts are being raised by small firms.
5018
List

18
 In addition,
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Same-Unit

19
 once money is raised,
5015
circumstance-e

20
 investors usually have no way 
5015
span

21
of knowing
22
attribution

22
 how it is spent.
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span

23
 Some analysts are concerned 
24
attribution

24
that the mega-issues, in such an unregulated environment, could lead to a mega-crash.
5022
span

25
 The rate of failures will be much more than the rate of successes in the mega-projects,
5023
span

26
 says G.S. Patel, a former chairman of the giant, government-run mutual fund, the Unit Trust of India.
25
attribution

27
 They're going to have mega-problems.
5023
explanation-argumentative

28
 The Indian stock markets have been on a five-year high, with dips and corrections,
5027
span

29
 since Prime Minister Rajiv Gandhi started liberalizing industry.
28
consequence-n

30
 But the last stock market boom, in 1986, seems small
5028
span

31
 compared with the current rush to market.
30
comparison

32
 The $6 billion
5032
span

33
 that some 40 companies are looking to raise in the year
5031
span

34
 ending March 31 
33
elaboration-object-attribute-e

35
compares with only $2.7 billion
5030
span

36
 raised on the capital market in the previous fiscal year.
35
elaboration-object-attribute-e

37
 In fiscal 1984,
5034
span

38
 before Mr. Gandhi came to power,
37
circumstance-e

39
 only $810 million was raised.
5035
Same-Unit

40
 This year's biggest issue, $570 million of convertible debentures by engineering company Larsen & Toubro Ltd., is the largest in Indian history.
5039
span

41
 And it isn't the only giant issue:
5038
span

42
 together, the top four issues will raise $1.3 billion.
41
example

43
 Convertible debentures 
5041
span

44
-- bonds
5040
span

45
 that can later be converted into equity shares --
44
elaboration-object-attribute-e

46
 are the most popular instrument this year,
5042
Same-Unit

47
 though many companies are also selling nonconvertible bonds or equity shares.
5042
antithesis

48
 These mega-issues are being propelled by two factors, economic and political.
5082
span

49
 In the past, the socialist policies of the government strictly limited the size of new steel mills, petrochemical plants, car factories and other industrial concerns
5048
span

50
 to conserve resources 
5047
List

51
and restrict the profits 
5046
span

52
businessmen could make.
51
elaboration-object-attribute-e

53
 As a result, industry operated out of small, expensive, highly inefficient industrial units.
5049
span

54
 When Mr. Gandhi came to power,
55
circumstance

55
 he ushered in new rules for business.
5050
span

56
 He said
5051
attribution

57
 industry should build plants on the same scale as those outside India 
5051
List

58
and benefit from economies of scale.
5051
List

59
 If the output was too great for the domestic market,
5053
span

60
 he said,
59
attribution

61
 companies should export.
5054
span

62
 India's overregulated businessmen had to be persuaded,
63
consequence-n

63
 but they have started to think big.
5058
span

64
 Some of the projects
5060
span

65
 being funded by the new issues
64
elaboration-object-attribute-e

66
 are the first fruits of Mr. Gandhi's policy,
5061
Same-Unit

67
 and they require more capital than the smaller industrial units
5059
span

68
 built in the past.
67
elaboration-object-attribute-e

69
 The industrial revolution has produced an explosion in the capital market,
5066
span

70
 which is a far cheaper source of funds than government-controlled banks,
5065
span

71
 where interest rates for prime borrowers are around 16%.
70
elaboration-additional-e

72
 The second factor 
5068
span

73
spurring mega-issues
72
elaboration-object-attribute-e

74
 is political.
5069
Same-Unit

75
 Mr. Gandhi has called general elections for November,
5070
consequence-n

76
 and many businessmen fear 
77
attribution

77
that he and his Congress (I) Party will lose.
5070
span

78
 Some companies are raising money in anticipation of a government less predictable than Mr. Gandhi's, and possibly more restrictive.
5071
evidence

79
 The buoyant Bombay rumor mill also says
5075
attribution

80
 that some of the money 
5074
span

81
raised in the current spate of issues
80
elaboration-object-attribute-e

82
 will be used as campaign donations before the elections.
5075
Same-Unit

83
 No one admits to anything,
5077
comment

84
 but India's industrialists have a history
5077
span

85
 of making under-the-table campaign donations.
84
elaboration-object-attribute-e

86
 So far, the mega-issues are a hit with investors.
5090
span

87
 Earlier this year, Tata Iron & Steel Co. 's offer of $355 million of convertible debentures was oversubscribed.
5086
List

88
 Essar Gujarat Ltd., a marine construction company, had similar success with a slightly smaller issue.
5086
List

89
 Larsen & Toubro started accepting applications for its giant issue earlier this month;
5085
span

90
 bankers and analysts expect it to be oversubscribed.
89
elaboration-additional

91
 Still to come are big issues by Bindal Agro Chem Ltd., a petrochemical and agrochemical company, and Usha Rectifier Corp.
5087
span

92
 (India),
91
elaboration-additional-e

93
 a semiconductor maker.
5088
Same-Unit

94
 While many investors are selling parts of their portfolios
5091
span

95
 to buy the new issues,
94
purpose

96
 prices on India's 16 stock exchanges are holding up so far.
5092
span

97
 I don't think
98
attribution-n

98
 it will lead to any chaos in the secondary market,
5093
span

99
 says Mr. Patel,
5093
attribution-e

100
 only a sagging tendency.
5095
Same-Unit

101
 Says M.J. Pherwani, chairman of the Unit Trust of India:
102
attribution

102
 The markets are headed for growth unheard of and unseen before.
5096
span

103
 But with growth come growing pains,
5100
span

104
 and never has this been clearer on the Indian capital market than now.
103
elaboration-additional

105
 In the past, the government controlled the markets indirectly, through its tight grip on industry itself.
5106
span

106
 Various ministries decided the products
5103
span

107
 businessmen could produce
106
elaboration-object-attribute-e

108
 and how much;
5104
Same-Unit

109
 and government-owned banks controlled the financing of projects
5102
List

110
 and monitored 
111
attribution

111
whether companies came through on promised plans.
5101
span

112
 The government has been content with this far-reaching, subtle form of control,
5107
span

113
 exercised on a case-by-case basis with no clear rules or guidelines.
112
elaboration-object-attribute-e

114
 But now,
5109
span

115
 with large amounts being raised from investors,
114
circumstance-e

116
 the government's dawdling on regulation and disclosure requirements has a more dangerous aspect.
5110
Same-Unit

117
 The Securities and Exchange Board of India was set up earlier this year, along the lines of the U.S. Securities and Exchange Commission,
5112
concession

118
 but New Delhi hasn't pushed the legislation
5112
span

119
 to make it operational.
118
elaboration-object-attribute-e

120
 Mr. Dave, its head, acts cheery and patient,
5115
antithesis

121
 but he makes no bones about the need 
5115
span

122
to get to work.
121
elaboration-object-attribute-e

123
 Mega or non-mega,
5118
span

124
 we feel
123
attribution-e

125
 the prospectus standards need to be considerably improved,
5119
Same-Unit

126
 he says.
5119
attribution

127
 Disclosures are very poor in India.
5131
span

128
 He says
5126
attribution

129
 the big questions
5124
span

130
 -- Do you really need this much money
5121
span

131
 to put up these investments? 
130
purpose

132
Have you told investors
133
attribution

133
 what is happening in your sector?
5122
span

134
 What about your track record? -- 
5123
List

135
aren't asked of companies
5125
span

136
 coming to market.
135
elaboration-object-attribute-e

137
 Instead,
5128
span

138
 he says,
137
attribution-e

139
 most investors have to rely on the rumor-happy Indian press.
5129
Same-Unit

140
 An example is the biggest offering of them all, Larsen & Toubro's $570 million bond issue.
5136
span

141
 The engineering company was acquired in a takeover earlier this year by the giant Reliance textile group.
5132
background

142
 Although Larsen & Toubro hadn't raised money from the public in 38 years,
143
antithesis

143
 its new owners frequently raise funds on the local market.
5132
span

144
 (Reliance floated a $357 million petrochemical company in 1988 
5134
span

145
that was, at the time, the largest public issue in Indian history.)
144
elaboration-additional-e

146
 The media has raised questions about Larsen & Toubro's issue,
5138
span

147
 pointing out 
148
attribution

148
that it exceeds the company's annual sales and its market capitalization.
5137
span

149
 Even stranger is the case of Usha Rectifier, a semiconductor company with 1988 sales of $28 million
5141
span

150
 that's raising $270 million
5140
span

151
 to build an iron plant.
150
purpose

152
 Once the money is raised,
153
circumstance

153
 it isn't always certain how it is used.
5145
span

154
 Larsen & Toubro, for example, says
5146
attribution

155
 it's raising $570 million
5146
span

156
 to use as supplier credit on large engineering jobs.
155
purpose

157
 Unlike other companies, it hasn't pin-pointed specific projects for the funds.
5148
span

158
 And even when specific projects are described in prospectuses,
159
antithesis

159
 the money often is used elsewhere,
5150
span

160
 according to analysts.
5150
attribution

161
 Someone must monitor
162
attribution

162
 where the funds are deployed, 
5153
span

163
says Mr. Dave.
5153
attribution

164
 Mr. Patel agrees:
165
attribution

165
 There is no proper monitoring and screening of the use of these funds.
5155
span

166
 They're trying to plug the various loopholes,
167
antithesis

167
 but they're totally unprepared for this.
5156
span

168
 Because of the large amounts of money 
5166
span

169
being raised,
168
elaboration-object-attribute-e

170
 the loose disclosure requirements and the casual monitoring 
5165
span

171
of how the money is used,
170
elaboration-object-attribute-e

172
 some analysts fear 
5163
attribution

173
that there could be a few mega-crashes,
5163
span

174
 which could hurt market confidence far more than the small bankruptcies
5162
span

175
 that followed the boom of 1986.
174
elaboration-object-attribute-e

176
 The government insists
177
antithesis

177
 that such a possibility is low.
5169
span

178
 It says
5171
attribution

179
 that
5171
Same-Unit

180
 despite loose regulation of the market itself,
181
antithesis-e

181
 its longstanding regulation of industry will prevent such crashes.
5170
span

182
 T.T. Ram Mohan contributed to this article.
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elaboration-additional

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multinuc
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comparison

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elaboration-additional

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purpose

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result

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concession

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multinuc
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circumstance

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elaboration-additional

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elaboration-additional

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span
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consequence-n

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elaboration-additional

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span
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multinuc
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elaboration-additional-e

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elaboration-additional

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background

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elaboration-set-member

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elaboration-additional

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elaboration-additional

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evidence

5090
span
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span

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span
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concession

5092
span
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span
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elaboration-additional

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elaboration-additional

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span
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antithesis

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multinuc
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List

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multinuc
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List

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multinuc
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evidence

5106
span
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span

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span
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elaboration-additional

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span
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antithesis

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span
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multinuc
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elaboration-additional

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elaboration-general-specific-e

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span

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antithesis

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span
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explanation-argumentative

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span
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span

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evidence

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elaboration-additional

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elaboration-additional

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explanation-argumentative

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circumstance

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elaboration-additional

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elaboration-object-attribute-e

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explanation-argumentative

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antithesis

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elaboration-additional

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elaboration-additional

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elaboration-additional

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