Bill on trading in derivatives
NEW DELHI, Oct 28 — The Government today introduced in the Lok Sabha a Bill to amend the Securities Contract (Regulation) Act (SCRA) to allow trading in derivatives in Indian stock exchanges.

IndusInd Bank net profit surges
CHANDIGARH, Oct 28 — IndusInd Bank has sustained its profit run during the current financial year by registering an increase of 89.47 per cent in net profit over the corresponding period last year.

Time to pick up FIIs’ favourites
WITH the FIIs pressing sales ahead of their accounting year end to meet their redemption requirements, the share prices of companies engaged in the high profile segments like information technology and pharmaceuticals have been the casualty of late.

Apollo Tyres & ICICI net profits climb
Apollo Tyres has reported a 92 per cent rise in the net profit at Rs 28.64 crore during the six months ended September 1999 against Rs 14.93 crore reported during the corresponding period last year.

Sops offered for LPG marketing
NEW DELHI, Oct 28 — The Government today offered incentives to foreign investors to create infrastructure and marketing for LPG in the country.

Insurance Bill to amend LIC, GIC Acts
Tribune News Service

NEW DELHI, Oct 28 — The Insurance Regulatory and Development Authority Bill, 1999, introduced in the Lok Sabha today proposes to provide for the establishment of an Authority to protect the interests of holders of insurance policies and to regulate, promote and ensure orderly growth of the insurance industry.

It also seeks to amend the Insurance Act, 1938, the Life Insurance Corporation Act, 1956 and the General Insurance Business (Nationalisation) Act, 1972.

The Authority will have a nine-member statutory body comprising a Chairperson, five whole-time members and four part-time members. The members would be appointed by the Central Government from amongst persons of ability, integrity and standing who have knowledge or experience in the insurance sector. The Chairperson and the members would have a tenure of five years.

The detailed 71-page Bill says that in an Indian insurance company, registered under the Companies Act, 1956, a foreign company, either by itself or through its subsidiary companies or its nominees, can not have aggregate holdings in excess of 26 per cent paid-up equity capital.

The Bill also provides that no promoter at any time can hold more than 26 per cent or such other percentage as may be prescribed of the paid-up equity capital in an Indian insurance company.

In cases where a company begins the business of life insurance, general insurance or reinsurance with more than 26 per cent of the paid up equity capital, it would divest in a phased manner the share capital in excess of 26 per cent of the paid-up equity capital after a period of 10 years from the date of commencement of business.

The manner and procedure for divesting the excess share capital would be specified by the regulations made by the Authority.

The Bill also provides that the minimum capital requirement for life and general insurance would be Rs 100 crore and for reinsurance firms it would be Rs 200 crore.

According to statements of objects and reasons of the Bill, the opening up of the sector was crucial to attract long-term resources for financing infrastructure besides providing better insurance cover to people.

The minimum solvency margin for private insurers is Rs 50 crore for Life Insurance companies, Rs 50 crore or a sum equivalent to 20 per cent of net premium income for general insurance and Rs 100 crore for reinsurance companies.

The Bill stipulates that funds of policy holders should be retained within the country besides compulsory exposure to rural and social sector which would be fixed by the Authority.

Bill on IT Act passed

NEW DELHI, Oct 28 (PTI) — The Lok Sabha today unanimously passed a Bill to amend the Income-Tax Act to provide 100 per cent deduction to contributions to the National Defence Fund (NDF) for personnel killed or injured in the Kargil conflict. Replying to a short discussion, Finance Minister Yashwant Sinha said since November 1, 1962 when the NDF was set up, over Rs 686 crore have been contributed including Rs 400 during and after the Kargil war.

Bill on trading in derivatives
Tribune News Service

NEW DELHI, Oct 28 — The Government today introduced in the Lok Sabha a Bill to amend the Securities Contract (Regulation) Act (SCRA) to allow trading in derivatives in Indian stock exchanges.

Mr Sinha also introduced another amendment to securities laws to transfer appellate functions of the Government to the Securities Appellate Tribunal.

According to the statements of objects and reasons, recently many companies especially plantation companies have been raising capital from investors through schemes which are in the form of collective investment schemes. However, there is not an adequate regulatory framework to allow an orderly development of this market. In order that the interests of investors are protected, it has been decided that SEBI would frame regulations with regard to collective investment schemes. It is, therefore, proposed to amend the definition of “securities” so as to include within its ambit the derivatives and the units or any other instrument issued by any collective investment scheme to the investors in such schemes.

Derivatives includes a security derived from a debt instrument, share, or a loan or a contract which derives its value from the prices or index of prices of underlying securities.

IndusInd Bank net profit surges
Tribune News Service

CHANDIGARH, Oct 28 — IndusInd Bank has sustained its profit run during the current financial year by registering an increase of 89.47 per cent in net profit over the corresponding period last year. The figure touched a mark of Rs 36.72 crore for the first half of 1999-2000 as against Rs 19.38 crore last year. Operating profit of the bank has also gone up by 51.95 per cent of Rs 78.07 crore as against Rs 51.38 crore in the corresponding period last year.

The better performance is mainly on account of improved interest spread. The net interest margin ratio improved to 2.08 per cent in the first half as compared to 1.06 per cent in the corresponding period last year. This significant rise is the result of meticulous interest rate management.

The total income grew by 9.47 per cent to Rs 363.54 crore, compared to Rs 332.08 crore last year. Included in this is the interest income which soared to Rs 313.79 crore as compared to Rs 274.82 crore last year. Interest expenditure went up marginally to Rs 253.81 crore in the first half from Rs 3836 crore last year.

The bank’s net worth has increased from Rs 532.07 crore in September ’98 to Rs 566.36 crore in September ’99 which is the highest among new generation private sector banks.

Indian heads Bell Labs
From Suman Guha Mozumder

New York, Oct 28 — An Indian Institute of Technology (IIT) graduate has been appointed president of Bell Labs, one of the world’s leading research and development (R&D) organisations credited with generating some 30,000 inventions since its founding in 1925.

Technology management expert Arun Netravali, Lucent Technologies’ Executive Vice-President for research, was named for the new position after the incumbent President, Dan Stanzione, was appointed special adviser to Lucent Chairman and CEO Rich McGinn. Bell Labs is the R&D arm for Lucent Technologies, headquartered in Murray Hill, New Jersey.

Netravali (53) who becomes the ninth leader of Bell Labs, which will celebrate its 75th anniversary next year, will report to McGinn.

Netravali is recognised as one of the world’s leading experts in the burgeoning field of multimedia communications. He holds over 60 patents and has authored some 140 papers in areas of computer networks, human interfaces to machines, picture processing and digital television. He has co-authored a textbook called ‘Digital Pictures - Representation and Compression’ which is considered today’s bible on video compression.

Netravali has been honoured with several prestigious awards, including the Alexander Graham Bell Medal of the Institute of Electrical and Electronics Engineers (IEEE) of 1991.

Netravali, who has been with Bell Labs for 27 years, was thrilled with his new appointment. “The prospect of leading one of the world’s premier R&D organisations is both electrifying and a bit daunting, particularly at a time when the demand for new communications technology is at its zenith,” he was quoted as saying in a company press note.

Bell Labs has 25,000 employees in 20 countries. Its scientists and engineers have won six Nobel prizes and 16 National Medals of Science and Technology. — IANS

Time to pick up FIIs’ favourites

WITH the FIIs pressing sales ahead of their accounting year end to meet their redemption requirements, the share prices of companies engaged in the high profile segments like information technology and pharmaceuticals have been the casualty of late.

However, notwithstanding this aberration, the undercurrent at the bourses remains positive overall and it is only a matter of time before the market takes a U-turn and begins to surge again.

It might not be a bad idea thus to commence a warehousing exercise and lap up some of the traditional FII favourites as they are likely to be the more sought after scrips once the FII selling spree ends and fresh buying commences.

Traders could consider taking up long positions at the counters of BFL Software at Rs 692 (square up at Rs 766), RS Software at Rs 344 (square up at Rs 399) and Fulford at Rs 437 (square up at Rs 492).

Short positions could be considered at the counters of Gujarat Ambuja Cement at Rs 642 (cover up at Rs 607) and BPL at Rs 490 (cover up at Rs 455). The dark horse bet of this week is Mysore Cement whose shares are reportedly being accumulated based on rumours of a possible takeover.

The portfolio pick of the week is MTNL whose prospects appear to be brightening up with the hotting up of events in the telecom segment. Given the temporary lull owing to FII selling, the time is optimal for investors with funds to go on an accumulation spree as the exit route too seems round the corner.

Apollo Tyres & ICICI net profits climb

Apollo Tyres has reported a 92 per cent rise in the net profit at Rs 28.64 crore during the six months ended September 1999 against Rs 14.93 crore reported during the corresponding period last year. The turnover rose nearly 26 per cent to Rs 671.99 crore for the same period (Rs 535.33 crore).

“Apollo’s improved financial performance is largely due to better current asset management. Efforts initiated over the last three years at inventory, working capital and human resource management are paying us rich dividends during the current growth phase”, said Mr Onkar S Kanwar, Vice Chairman and Managing Director, Apollo Tyres.

ICICI Ltd has reported a 6 per cent increase in the net profit to Rs 540 crore in the first half of 1999-2000 against Rs 507 crore in the same period last year, despite a 30.85 per cent increase in provisions and write-offs to Rs 246 crore. The net profit rose by 12 per cent to Rs 278 crore during the second quarter ended September 30, 1999.

State Bank of India’s net profit fell by 18.10 per cent to Rs 702.45 crore in the first half of 1999-2000 from Rs 857.70 crore in the same period last year, having made increased provisions as a matter of prudence including for non-performing assets (NPAs). A total of Rs 560 crore has been provided for NAPs against Rs 339.26 crore during April-September 1998 in order to evenly spread provisioning over the entire year.

Engineers India Ltd has recorded a 53.6 per cent rise in its turnover in the second quarter ended September 1999 at Rs 162.75 crore over the corresponding period last year. The company’s net profit has risen 26 per cent to Rs 55.80 crore during the period.

Eveready Industries Limited’s net profit during the second quarter ended September 30, 1999, increased by 15.15 per cent to Rs 28.40 crore from Rs 24.66 crore in the corresponding period previous year.

MRF Limited on Thursday announced a marginal decline in the net profit at Rs 98.76 crore for 1998-99 on a turnover of Rs 2,308.32 crore. The turnover during the year touched Rs 2,308.32 crore from Rs 2,203.77 crore in 1997-98, with interest outgo coming down to Rs 68.27 crore from Rs 77.44 crore during the period.

EIH Limited has registered a 69.41 per cent decline in the net profit in the second quarter of 1999-2000 leading to a 54.28 per cent drop for the first half of the current year. The net profit for April to September dropped to Rs 21.16 crore compared with Rs 46.28 crore in the corresponding period last year.

PNB Gilts Ltd, the primary dealer in government securities, has recorded total income of Rs 104.95 crore for the half year ended September 30, an increase of 49.6 per cent over the figure of Rs 70.15 crore notched up in the corresponding period of the previous year. The company had a net profit of Rs 26.80 crore, up from Rs 23.56 crore in the same period of the previous year an increase of 13.75 per cent.

ITC Hotels Limited has managed to reduce its net loss to Rs 0.26 crore in the second quarter ended September 30, 1999 compared with Rs 2 crore in the corresponding period last year.

— TNS, agencies

Sops offered for LPG marketing

NEW DELHI, Oct 28 (UNI) — The Government today offered incentives to foreign investors to create infrastructure and marketing for LPG in the country.

Inaugurating the 12th international conference of the World LP Gas Forum, being held for the first time in India, Petroleum and Natural Gas Minister Ram Naik drew the attention of experts on the petroleum sector to the “large market’’ for LPG in the country.

He said foreign investors would be allowed to set up 100 per cent wholly-owned subsidiaries for market studies and project preparation. Foreign direct investment up to 70 per cent in equity was allowed for LP Gas infrastructure and marketing.

Forex
US $ Rs 43.39/40
Stg £ Rs 71.30/32
Euro Rs 45.62/64
Jap yen (100) Rs 41.61/63

Credit policy
NEW DELHI, Oct 28 (UNI) — The RBI will present its busy season credit policy tomorrow at a time when the industry is demanding reduction in interest rates in an otherwise difficult fiscal environment.

OBC ‘Y2 OK’
Tribune News Service
NEW DELHI, Oct 28 — The Oriental Bank of Commerce has bagged the “Y2 OK” certification from the Ministry of Information Technology, becoming the first bank in the public sector to receive this recognition.

ABN Amro Bank
Tribune News Service
NEW DELHI, Oct 28 — ABN Amro Bank, India, has completed all formalities for acquiring the retail banking business of Bank of America in India. ABN has also absorbed 250 employees of the retail banking division of the Bank of America and over one lakh retail customers.

Indian Oil
Tribune News Service
NEW DELHI, Oct 28 — Indian Oil Panipat Power Consortium Limited (IPPCL) has been incorporated as a joint venture company of Indian Oil Corporation Limited (IOC) and Marubeni Corporation Limited. IPPCL will operate a 300 MW refinery residue (petcoke) based power project at Panipat. IOC Board had decided to diversify into power generation as a component of corporate business strategy to maximise stake holder value.

Reebok India
Tribune News Service
CHANDIGARH, Oct 28 — Reebok India sportswear and fitness company, has introduced their new collection — footwear products at competitive prices.