Tuesday, August 31, 1999
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B U S I N E S S | Tuesday, August 31, 1999 |
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Sebi alerts bourses on
bull charge |
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FIPB clears Satyam Info
ADR issue hike Three more models of Zen on the
anvil SBI deposits touch 5,768 crore in
Punjab ICICI Ltd to quit London exchange Khadi exports ‘woefully
low’ Why record production of wheat |
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Sebi alerts bourses on bull charge NEW DELHI, Aug 30 (PTI) — Capital market regulator Sebi today said it has asked all stock exchanges to be on the alert as the share prices continued to climb dizzy heights across bourses. “We are constantly monitoring the situation and have advised all stock exchanges to be on the alert to avoid any crisis,” Sebi Chairman D R Mehta told PTI here. The country’s bourses are on a bull-run with the Bombay Stock Exchange (BSE) sensitive index nearing 5000-mark in the morning session today. “The markets are safe and we are fully geared up to face any crisis,” he said when asked whether the stock markets were faced with an impending crisis at these record index levels. Stating that the major stock exchanges have put in place “stock watch systems” to monitor positions of brokers on a real-time basis, Mehta said Sebi has also asked the exchanges to impose additional margins, if the situation warrants. Currently, the exchanges impose additional volatility margins and mark-to market margins, where by the exchanges fix margins on actively fluctuating scrips every day. Scrips that fluctuate 8 per cent from the previous day’s closing rate invite volatility margins of 20 per cent and trading is not allowed at prices beyond the 8 per cent limit upwards or downwards on a trading session. Mehta said the “stock watch system” has been installed by the exchanges of National, Bombay, Calcutta, Delhi and Ahmedabad. The National Stock Exchange (NSE) has imposed additional margins over the existing set of margins while the BSE was working on additional margins. Asked about the rumours that flooded the stock market last week sending the stock prices on a roller coaster, Mehta said the market regulator was helpless in checking rumours. “I don’t think any regulator across the world can check rumours. However, we have asked the stock exchanges to act as a self-regulating organisations (SROs) and not to wait for Sebi to come out with certain instructions from time to time for taking actions against members for share price manipulation. Last week, Sebi had suspended two BSE brokers and one NSE member for their alleged involvement in the share price rigging of the scrips of BPL, Videocon and Sterlite after the regulator conducted an enquiry in the wake of the sudden payment crisis on the BSE in June last year. Mehta, however, refused to be drawn into the controversy on insider trading allegations levelled against Executive Director of the BSE in selecting scrips for induction into the group ‘A’ category last week. The selection was done by an index committee of the exchange comprising four public representatives including a former high court judge and four brokers of the exchange. “The stock
exchanges should be responsible and their credibility
will decide their long-term survival, “Mehta said,
adding that the regulator would certainly act tough, if
any manipulation comes to its notice. |
Adopt user
charges for water: Pant NEW DELHI, Aug 30 — The Deputy Chairman of Planning Commission, Mr K C Pant, today called for adoption of user charges and decentralisation of water supply services for better water management. Outlining a long-term approach to water management at a conference organised by the CII here today, Mr Pant called for commercialisation of and private participation in provision of water services, both for municipal and multi-municipal schemes. He also called for evolving a market oriented financing system through direct access to bond issues, new forms of financial intimidation and leveraging for public resources. The industry needs to develop and utilise at a large scale technology that conserves water and aids recovery and reuse of wastes, he added. Mr Pant suggested that industry be given financial incentives for use of such technology, reinforced by disincentives for inefficient water management and recycling. The “Polluter pays” concepts must become widespread and recycling and reuse of water must be part of water audits is all industries. Water irrigation is already a major concern for worry, Mr Pant said adding that gross underpricing has led to massive wastage and low irrigation efficiency. The most important is handing over the entire irrigation systems to users as represented by groups or cooperatives, he said. For this purpose institutions and organisations that could carry on function independently without government support must be developed. With involvement of user groups, the hugely inflated wage bills of irrigation departments would also be substantially reduced, he added. “At present, water is a highly subsidised commodity, and gross under-pricing leads to tremendous wastage through seepage, percolation and runoff,” said Mr Pant. This was also affecting
the irrigational programme of agriculture, Pant said,
adding that there was an urgent need for a rigorous
economic analysis of irrigated agriculture and massive
water literacy awareness in order to mitigate the
damaging effects. |
FIPB clears Satyam Info ADR issue hike NEW DELHI, Aug 30 (PTI) — The Foreign Investment Promotion Board (FIPB) today approved foreign investment worth Rs 715 crore including Satyam Infoway’s proposal to raise about Rs 516 crore from overseas markets. The company was allowed to increase the size of its proposed American Depository Receipts (ADRs) to Rs 516 crore by issuing an additional 16.5 lakh shares. Earlier, the Board had permitted the company to issue 48 lakh shares through ADRs to fetch about Rs 240 crore. According to the new proposal, the company expects to fetch a premium of Rs 790 per share for the ADR issue compared to Rs 490 projected earlier. FIPB also allowed AES Corporation of the USA to set up a joint venture in India to pick up a 51 per cent stake in Central Electricity Supply Corporation (CESCO) of Orissa by in vesting Rs 42 crore. The board also allowed ING Group company, Bank Brussels Lambert (BBL) to increase its stake in private sector Visio Bank to 20 per cent from the present 9.9 per cent. Bank Brussels would bring in Rs 33 crore to buy the equity stake in Visio Bank at a premium of Rs 140 per share. German-based Papierfabrik Louisenthal GmbH’s proposal to set up a 50:50 joint venture for manufacturing paper for bank notes and securities also got the go ahead from the FIPB. Among other foreign
investment proposals cleared by the FIPB were those of
ORG Marg Research, Acer Computers, KPMG India and
Meddison Square Holdings. |
Three more models of Zen on the anvil NEW DELHI, Aug 30 (UNI) — After Zen Classic, Maruti Udyog Limited will introduce three new variants of Zen by the end of this fiscal. While the first new variant will be an upgradation of the existing Zen VX model, the other two will sport multi-point fuel injection (MPFI) engines, company sources told UNI here. The final price tags of these vehicles are also being worked out. MUL, when contacted, said it was currently working on the existing as well as new models. However, it refused to state a time frame for the introduction of these models. “The upgradation of existing models and launch of new variants and models is a continuous process at MUL, as is evident from the introduction of six models and more than 35 variants over the last 15 years,’’ the company said in a faxed response. Upgradation on the Zen VX, to be christened Zen VXI, would hit the city streets in September this year. To be priced slightly above the existing VX model, the car would feature a power steering, rear wind-shield demister, side mouldings as additions on the existing Zen VX features. The first MPFI Zen,
powered by a two-valve engine, will also zip the streets
in the same month. The car will be Euro-II emission norms
compliant and produced in limited numbers initially for
technology demonstration. |
SBI
deposits touch 5,768 crore in Punjab CHANDIGARH, Aug 30 — Mr Prabhakar Sharma, Chief General Manager of State Bank of India, Chandigarh Circle, called upon Lt. Genl. (Retd.) B.K.N. Chhibber, Governor of Punjab and Administrator of UT of Chandigarh, to apprise the performance of State Bank of India in Punjab. Mr Sharma said that the deposits of bank with a network of 274 branches in Punjab and the UT have reached to the tune of Rs 5,768 crore while total advances in both States stood at Rs 2,457 crore. Out of total advances in
both the States, Rs 1,361 crore have been financed to the
priority sector. The bank’s credit to the
agriculture sector in the States stood at Rs 573 crore,
said Mr Sharma. |
ICICI Ltd to quit London exchange NEW DELHI, Aug 30 (UNI) — ICICI Limited, which is coming out with a $ 350 million ADR issue to be listed at the New York Stock Exchange, will delist its GDR issue from the London Stock Exchange, Mr M.V. Kamath, Managing Director, ICICI Limited, said today. The financial institution plans to delist from the London Stock Exchange before coming out its ADR issue next month, Mr Kamath said at a press conference here. The pricing of ADR will be decided from a book building exercise and announced at the time of issue. The GDR holders will be given the option of converting into ADR at 1:1 ratio. ICICI had come out with a $ 225 million GDR issue in 1996. Since then, its GDR is being traded at the London Stock Exchange. Simultaneous to its ADR issue, ICICI will offer a share of Rs 10 face value at a premia of Rs 63 in the domestic market. The domestic offer will open on September 9. With this fresh capital infusion, the capital adequacy ratio of ICICI will be at an impressive 16 per cent from 12 per cent. Asked on the timing of the issue as it was coinciding with general election, Mr Kamath said, “we have been told by our advisers that September will be the best time for the issue. The Y2K scare will affect the sentiments for the issue thereafter.’’ The FI Managing
Director, claiming ICICI to be a technology-savvy
organisation with Internet products, did not rule out
venturing out of the country. “As part of our
efforts to offer universal banking, we will branch out of
the country at an appropriate time,’’ Mr Kamath
added. |
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NEW DELHI, Aug 30 (UNI) — Regretting that the share of Khadi and Village Industries in India’s total exports is”woefully low” SSI Secretary C.T. Benjamin today set an agenda, including quality improvement to boost their exports. “In a globalised economy, the khadi and village industries will have to provide for continuous upgradation of quality, cost-cutting measures and marketing and after- sales service,” Mr Benjamin said adding that only those equipped to face these challenges are likely to succeed abroad. Delivering a keynote address at a workshop on “Export opportunities in the KVI sector” organised by the Khadi and Village Industries Commission (KVIC) and SIDBI here, Mr Benjamin said the attainment of production quality at par with international standards is a necessary condition for exports. While achieving such quality levels, the KVI will have to reckon with problems of lack of resources, high capital costs, poor resource base, inadequate and delayed credit, low technology, lack of information of market and inadequate infrastructure. Mr S.B. Mohapatra, Additional Secretary, Commerce Ministry, said rebates on cottage industry products will be of little use if quality is not improved. “A network with local R & D institutions and KVI units need to be established providing for extensive transfer of technology.” Responding to the demand for giving export promotion council (EPS) status to KVIC, Mr Mohapatra considered giving export orientation to KVIC and encouraging quality products for exports as more important. Earlier, KVIC Chairman
Mahesh Sharma said the commission needs to be recognised
as EPC as part of achieving the ambitious target of $250
million worth of KVI exports within five years.
Currently, KVI sector directly exports Rs 29 crore and
another Rs 100 crore through merchant exporters. |
Why record production of wheat LUDHIANA, Aug 30 (UNI) — An all-time high 73 million tonnes wheat production in the 1998-99 rabi season has been largely attributed to the adoption of the “high-yielding PBW-343” variety developed by scientists of Punjab Agriculture University here. This was stated at the 38th all- India wheat research workers meeting held at the university last week. Indian Council of Agricultural Research (ICAR) Deputy Director General Mangla Rai said sowing of this high-yielding variety in more than three million hectares area was the major reason for the spectacular increase in wheat production. It gave a yield of 43 quintals per hectare, Dr Rai said adding that nowhere in the world a single wheat variety had been sown in such a large area. Veteran wheat production
expert and Andhra Pradesh University’s former Vice
Chancellor M.Rao, however, underlined the need for
further increase in productivity, failing which he warned
that the country would have to import foodgrains by 2030.
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