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Stop violating F&O norms
SEBI tells Indiabulls, other stock broking firms

Mumbai, June 19
Market regulator Securities and Exchange Board of India (SEBI) today asked 15 stock broking firms, including Indiabulls, and 10 other entities to desist from violating the SEBI code on future and options (F&O) trading.

DS Constructions acquires Globeleq
New Delhi, June 19
A premier engineering construction DS Constructions has emerged as a global power entity, with its acquisition of Globeleq America’s power assets for $542 million in 50:50 Joint Venture (JV) with Israel Corporation.

Tata Sons sets up financial arm
Mumbai, June 19
Tata Sons Ltd, the holding company of the Tata Group, said today it has formed a wholly owned subsidiary to enter new segments in financial services.

Spice fixes price band for IPO
Issue opens on June 25
Mumbai, June 19
Cellular operator Spice Communications Ltd today announced a price band of Rs 41-46 for its initial public offer to raise up to Rs 520 crore.

New aviation policy to encourage regional airlines
New Delhi, June 19
The remote regions of the country would have greater access to air travel following the implementation of the Vision 2020, the new civil aviation policy, which proposes a series of new measures, including a review of the existing norms to provide better air connectivity to remote and far-flung areas.



EARLIER STORIES

 
In this file picture, a combination of photos shows a box of Cadbury Heroes chocolates (left) and a bottle of Schweppes lemonade. Cadbury Schweppes said on Tuesday that it planned to slash 15 per cent of its workforce at its confectionery arm following the likely sale of its US soft drinks business. The British group said that a process to sell its American beverages arm was "actively underway", adding that 7,500 jobs would go at Cadbury. —
In this file picture, a combination of photos shows a box of Cadbury Heroes chocolates (left) and a bottle of Schweppes lemonade. Cadbury Schweppes said on Tuesday that it planned to slash 15 per cent of its workforce at its confectionery arm following the likely sale of its US soft drinks business. The British group said that a process to sell its American beverages arm was "actively underway", adding that 7,500 jobs would go at Cadbury. — AFP photo

Emaar-Premier Travel JV to dole out $600 m
New Delhi, June 19
With an eye on the huge potential for ‘limited services hotel’ in India, Emaar MGF, real estate developers, today announced a 50:50 joint venture (JV) with Premier Travel Inn - a subsidiary of Whitbread PLC, UK’s largest hospitality company.

Mahindra & Mahindra to infuse Rs 100 cr in Punjab
Ludhiana, June 19
The $4.5-billion Mahindra Group today said it will invest Rs 100 crore in the IT sector in Punjab, besides tapping its agri potential by taking up potato seed development in the state.

IT raids on commodity exchange
New Delhi, June 19
The IT department today conducted raids on a multi-commodity exchange and its associates in Mumbai today, but there were no searches on stock brokers.

Punjab Budget
More funds for power sector expected

New Delhi, June 19
Toning up of power sector, revamping the fiscal structure and rationalisation of the subsidies being given by Punjab are some of the expectation from the budget to be presented by the Punjab government.

Nabard funding up by 21.9 pc in HP
Shimla, June 19
The National Bank for Agriculture and Rural Development (Nabard) has been playing an important role in strengthening and expansion of infrastructure in rural areas.

Manufacturing sector to create 1.6 m jobs: Ashwani
New Delhi, June 18
Minister of state for industry Ashwani Kumar has said the embrace of the market economies by India and China would make possible emergence of an international treaty-based regime towards a fully-integrated global economy.

ICICI issue gets oversubscribed by 2.74 times
Mumbai, June 19
ICICI Bank today received bids for over 27 crore shares, nearly three times the shares on offer in its follow-on public issue, generating a demand of Rs 23,975 crore.
In Video(56k)

Maximum VRS in textile sector: Assocham
New Delhi, June 19
Despite textile sector registering average growth of over 7 to 8per cent in 2005-06, the employees under the central public sector enterprises (CPSEs) have taken the maximum voluntary retirement under the voluntary retirement schemes (VRS) followed by coal and telecommunications, which respectively grew at 4 per cent and over 25 per cent respectively during the period.

Sanmina Corp to invest $50 m in TN
Chennai, June 19
The Tamil Nadu government today signed an MoU with Sanmina Corporation, a $11 billion company, to set up a plant at the Oragadam SEZ, which will be its second largest facility in the world with an initial investment of Rs 220 crore.

 

 

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Stop violating F&O norms
SEBI tells Indiabulls, other stock broking firms

Mumbai, June 19
Market regulator Securities and Exchange Board of India (SEBI) today asked 15 stock broking firms, including Indiabulls, and 10 other entities to desist from violating the SEBI code on future and options (F&O) trading.

Indiabulls Securities Ltd and others were directed to “cease and desist from indulging in F&O contracts in violation of the SEBI (Stock Brokers and Sub Brokers) Rules and Regulations, 1992 till further orders”, SEBI said in a press release today.

The regulator passed the order against brokers and entities for “non-genuine trade transactions” at the NSE between January and March 2007 to create false and misleading appearance of trading and booking profits or losses on such transactions.

Fourteen other brokers against whom the SEBI passed the order include Kumar Share Brokers, CPR Capital Services, SMC Global Securities, Khandelwal Services, Shilpa Stock Brokers, Angel Capital and Debt Market, Vibrant Securities, Systematix Shares and Stocks, Steel City Securities, Ashika Stock Broking, Prashant Jayantilal Patel, PSJ securities, Pratibhuti Vinihit and Manu Stock Broking.

The 10 entities which were asked by the SEBI to cease and desist from indulging in F&O trading are Rakhi Trading, Kasam Holding, Tungarli Tradeplace, Manu Vyapar, Raj Corporation, TLB Securities, Amar Mukeshbhai Shah, Shah Chirag Kirtikumar, Amit Business and Suresh Bharrat. — PTI 

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DS Constructions acquires Globeleq
Tribune News Service

New Delhi, June 19
A premier engineering construction DS Constructions has emerged as a global power entity, with its acquisition of Globeleq America’s power assets for $542 million in 50:50 Joint Venture (JV) with Israel Corporation.

“With our acquisition of power assets in South America, we have emerged as a global power entity with a capacity of over 3,400 MW. We have already been awarded 1,260 MW power projects in India and with this acquisition, we are moving closer to our goal of becoming a 10,000 MW company by 2015,” M S Narula, managing director, DS Constructions said today.

“The acquisition has been funded through internal resources. The assets have a total capacity of over 2,180 MW and are engaged in the production and sale of electricity. Some of the power plants, acquired as a part of this transaction, are hydroelectric and gas-based. The JV company plans to be a major player in the global power sector and will be looking at acquiring more power assets in the near future,” he added.aGlobeleq’s assets consists of natural gas and hydro power plants in Peru and Bolivia, fuel-based power assets in El Salvador, Dominican Republic, Guatemala, Nicaragua, Panama and Jamaica with a total capacity of over 2,180 MW.

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Tata Sons sets up financial arm

Mumbai, June 19
Tata Sons Ltd, the holding company of the Tata Group, said today it has formed a wholly owned subsidiary to enter new segments in financial services.

Tata Capital Ltd will offer capital market services, merchant banking, housing finance, private equity, vehicle and retail finance, and other services, it said in a statement.

Other Tata companies engaged in financial services, including Tata AIG Insurance, Tata Asset Management Co and Tata Investment Corp — companies in which Tata Sons has a substantial holding — would remain separate entities, it said. — Reuters

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Spice fixes price band for IPO
Issue opens on June 25

Mumbai, June 19
Cellular operator Spice Communications Ltd today announced a price band of Rs 41-46 for its initial public offer to raise up to Rs 520 crore.

The company would issue around 11.3 crore shares through a 100 per cent book-building process. The issue would open on June 25 and closes on June 27.

Spice would raise about Rs 465 crore at the lower band and Rs 520 crore at the upper band. The proceeds would be used for expansion and paying debt.

"We have also concluded a pre-IPO placement of 2.48 crore shares at Rs 45 per share, raising about Rs 112 crore. A clutch of investors led by Lehman Brothers and Sinnaker Investments have picked up a small stake in Spice Telecom," Spice CMD Dilip Modi said here.

Post-IPO, the stake of both the promoters — B K Modi and Telekom Malaysia —would come down by 10 per cent each. B K Modi, the Indian promoter, currently holds 51 per cent and Telekom Malaysia the remaining 49 per cent.

"We are the second largest operator in Punjab with approximately 1.91 million subscribers and the fifth largest operator in Karnataka, with approximately 0.82 million subscribers," Modi said.

The company intends to consolidate and boost its presence in both the markets by expanding its coverage with a view to increase its marketshare, he said.

"We also plan to work with our roaming partners to improve and expand our coverage and to provide consistent products and services to our subscribers," he added. — PTI 

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New aviation policy to encourage regional airlines
Girja Shankar Kaura
Tribune News Service

New Delhi, June 19
The remote regions of the country would have greater access to air travel following the implementation of the Vision 2020, the new civil aviation policy, which proposes a series of new measures, including a review of the existing norms to provide better air connectivity to remote and far-flung areas.

As per the recommendations of the civil aviation ministry, new norms would also be put in place to encourage regional airlines.

Under the existing policy, airlines have to adhere to route dispersal guidelines (RDG) to connect remote areas in north-eastern region, Jammu & Kashmir, Andamans & Nicobar and Lakshadweep.

According to the policy, the route dispersal guidelines shall be reviewed to promote connectivity to remote areas and unconnected stations. The current guidelines state that the operator will have to deploy at least 10 per cent of the capacity it operates on commercially unviable routes in the remote areas.

However, excepting the public sector Indian (airlines), none of the other private airlines actually take this norm seriously.

The ministry has also proposed to provide suitable regulatory incentives for creating regional airlines and similarly also propose separate fleet-strength norms for them. “State governments will also be requested to provide suitable incentives to encourage such regional airlines”, the draft policy says.

In a move which would make air travel more affordable and more accessible to the people, there is also a move to provide incentives to the first airline starting services to and from hitherto unconnected cities. Incentives would be in the form of exemption from payment of all airport and navigation charges at both airports.

The ministry had earlier proposed to set up a non-lapsable Essential Air Services Fund (EASF) on the lines of the central road fund to provide explicit subsidy support to essential but uneconomical domestic air services and commercially unviable airports. It was proposed to set up the fund by levying a cess on both domestic and international air travel.

The finance ministry, however, opposed the proposal for such a fund for viability gap funding for uneconomic routes by airlines on the grounds that such funds are distortionary in nature and should be discouraged. According to the new policy, the proposal to set up an EASF to provide subsidy support to airlines for operating in uneconomic routes has been dropped. 

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Emaar-Premier Travel JV to dole out $600 m
Tribune News Service

New Delhi, June 19
With an eye on the huge potential for ‘limited services hotel’ in India, Emaar MGF, real estate developers, today announced a 50:50 joint venture (JV) with Premier Travel Inn - a subsidiary of Whitbread PLC, UK’s largest hospitality company.

This JV will develop and operate 80 limited services hotels under the brand ‘Premier Travel Inn’ over the next 10 years across India with an investment of up to $600 million.

Emaar-MGF’s executive vice-chairman and managing director Shravan Gupta said: “We are glad to partner with Premier Travel Inn bringing yet another first for Indian business and leisure travellers. This alliance will introduce a new category of affordable class of branded hotels for the discerning Indian traveller looking for best amenities at reasonable price points.”

Uniquely positioned between a business and budget category, this initiative will add over 12,000 hotel rooms across India. Affordably priced between Rs 2400 and Rs 3600, this will be an appropriate offering for the travellers seeking high quality branded budget hotel accommodation, he said.

“This JV is in line with our ambitious hospitality plans and will serve to be a quantum leap for the sector in the country,” Gupta added.

Whitbread PLC’s chief executive Alan Parker said: “We have been looking at emerging international markets and this part of the world is enjoying rapid growth in both business and leisure travel.”

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Mahindra & Mahindra to infuse Rs 100 cr in Punjab

Ludhiana, June 19
The $4.5-billion Mahindra Group today said it will invest Rs 100 crore in the IT sector in Punjab, besides tapping its agri potential by taking up potato seed development in the state.

“Our group company Tech Mahindra Limited, which provides IT solutions, will invest Rs 100 crore in the Rajiv Gandhi Technology Park for IT development in the state and will offer 3,000 jobs,” Mahindra and Mahindra vice-chairman and managing director Anand Mahindra told reporters here.

Considering huge agri potential in the state, Mahindra said the group was keen to develop potato seed in Ludhiana, Jalandhar and Nawanshahar.

“Our company Mahindra Subhlabh will start developing potato seed in the state through contract farming. The company will provide technical know-how and extension services to the farmers for producing high quality potato seed,” informed Mahindra, who was felicitated with Vardhman Award by Ludhiana Management Association for Entrepreneur of the year 2006.

On being asked about the ramping up the capacity of Punjab Tractors Ltd, in which M&M had acquired 43.5 per cent stake couple of months back, Mahindra said: “We are quite keen in expanding the capacity of PTL but it will take some time.”

Mahindra Group has also urged the Punjab government for setting up a university in Chandigarh in line with its objective of establishing a Mahindra University. ‘Mahindra University will open five university campus and we intend to open first such campus in Chandigarh,” he said. — PTI 

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IT raids on commodity exchange
Tribune News Service

New Delhi, June 19
The IT department today conducted raids on a multi-commodity exchange and its associates in Mumbai today, but there were no searches on stock brokers.

‘The Income-tax department is today conducting searches on a commodity exchange and its associates in Mumbai,” an official statement said here.

Surveys are also being conducted on the exchange branches in Ahmedabad, Bangalore, Chennai, Delhi and Kolkata.

However, there is no raid on any share broker connected with a stock exchange.

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Punjab Budget
More funds for power sector expected
Tribune News Service

New Delhi, June 19
Toning up of power sector, revamping the fiscal structure and rationalisation of the subsidies being given by Punjab are some of the expectation from the budget to be presented by the Punjab government.

“De-monopolisation of existing power utilities in Punjab on the lines of telecom sector and unbundling it in order to open up the power sector for competition can bring about significant changes for ensuring uninterrupted and quality supply that can change the industrial and agricultural landscape of the state,” says Sanjay Bhatia, president, Phdcci.

The chamber, which represents the industry’s voice in the region, said the government may consider facilitating natural gas as the feedstock for industry and for domestic purposes that can considerably reduce dependence on electricity.

This will also ensure reduced fuel cost since natural gas will be less than Rs 4 per unit. In order to assess the demand for gas for present and future, a demand-cum-feasibility study be commissioned in consultation with the Gas Authority of India. Also, the state government should install the Tax Information Exchange System in the current year and, thereafter, only electronic filing be acceptable.

The industry lobby group said it looks forward to streamlining the classification of industrial inputs by adopting a harmonised system of nomenclature under VAT for all states, integration of all state level taxes, simplification of VAT procedure for refunds, reduction of VAT on certain goods like steel, footwear, desi ghee, and CFL lamps. The wish list also includes introduction of user charges for pricing public utilities, revamping tourism sector, larger allocation for industrial infrastructure, rationalisation of subsidies, promotion of education and greater private sector involvement.

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Nabard funding up by 21.9 pc in HP
Tribune News Service

Shimla, June 19
The National Bank for Agriculture and Rural Development (Nabard) has been playing an important role in strengthening and expansion of infrastructure in rural areas.

For the first time, the Rural Infrastructure Development Fund (RIDF) has given the permission for the state to cross the Rs 250-crore mark.

A total number of 385 projects were sanctioned under the RIDF during 2006-07 involving a loan assistance of Rs 274 crore, which represents a growth of 21.9 per cent. The disbursements amounted to Rs 140 crore during 2006-07 as compared to Rs 125 crore in 2005-06.

Till date, a total number of 3,512 projects, with a loan assistance of Rs 1,513.33 crore have been sanctioned. An amount of Rs 986.2 crore had been disbursed till March 31, 2007. A major portion of the loan has been given for construction of roads and bridges to facilitate better rural connectivity.

The Nabard has provided refinance support of Rs 146 crore during 2006-07 to various banks for promoting investment in farm and non-farm sectors.

Further, micro-credit movement made further strides in the state with 3,500 new Self Help Groups (SHGs) getting security credit. A pilot project for the promotion of micro-enterprises by SHGs in Kangra district was launched. The micro-credit movement is being spearheaded by 775 bank branches and 37 non government organisations (NGOs).

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Manufacturing sector to create 1.6 m jobs: Ashwani
Tribune News Service

New Delhi, June 18
Minister of state for industry Ashwani Kumar has said the embrace of the market economies by India and China would make possible emergence of an international treaty-based regime towards a fully-integrated global economy.

Delivering a keynote address at a session on “Rapid emergence of India and China as global economic powers and their impact on the developed world”, at an UBS CEO Forum in Florence, Italy, on Sunday, Kumar said growth in the emerging economies had positively impacted on consolidation of the developed economies themselves by spurring demand and supply, ensuring economies of scale, increasing the global labour force and a coherence in the global development agenda, an official release issued here yesterday said.

Kumar said India’s economic growth story was unique in as much as overall economic growth had been achieved in the country consistent with the government’s commitment to social justice and inclusive agenda.

He appealed to the investors to consider the resilience of India’s democratic institutions as the nation’s strength and rejected the debate between democracy and freedom as spurious exercise.

Infrastructure development in India requires an estimated expenditure of $550 billion in the medium term, and at least one third of the resources can be obtained through FDI.

“The manufacturing sector in India was likely to grow by 12 per cent per annum by 2010 which could generate additional 1.6 million jobs every year. The UPA government under Prime Minister Manmohan Singh was committed to ensuring distributive equities by enlarging opportunities for wealth generation and without compromising human dignity and moral integrity,” he said.

Later, answering queries from the participants, Kumar stated that the National Rural Guarantee Programme, the Bharat Nirman Programme and the Urban Renewable Programme in addition to a host of other initiatives were intended to generate large-scale employment for the unemployed youth of India.

Other key participants in the session included Mukesh Ambani, CMD, Reliance Industries, Sanjay Chandra, MD, Unitech Limited, Dr Fu Yuning, director & president, China Merchants Group, Eddie Wang, president, China Minsheng Banking Corporation. 

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ICICI issue gets oversubscribed by 2.74 times

Mumbai, June 19
ICICI Bank today received bids for over 27 crore shares, nearly three times the shares on offer in its follow-on public issue, generating a demand of Rs 23,975 crore.

The issue was oversubscribed 2.74 times and received a majority of bids within a price range of Rs 885 and Rs 910. More than 1.7 lakh bids were at the cut-off price, data available on the NSE shows.

The FPO is part of the bank’s plan to mop up Rs 20,125 crore from domestic and international markets, including a green shoe option of 15 per cent.

ICICI Bank has said five per cent of the issue (Rs 437.5 crore) would be reserved for existing investors holding shares worth Rs 1 lakh as on June 13 - the record date for the issue. — PTI

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Maximum VRS in textile sector: Assocham
Tribune News Service

New Delhi, June 19
Despite textile sector registering average growth of over 7 to 8per cent in 2005-06, the employees under the central public sector enterprises (CPSEs) have taken the maximum voluntary retirement under the voluntary retirement schemes (VRS) followed by coal and telecommunications, which respectively grew at 4 per cent and over 25 per cent respectively during the period.

According to an analysis on the VRS done by the Associated Chambers of Commerce and Industry of India (Assocham), in CPSEs under the ministry of textile, 6,637 employees - ranging from lower to upper middle division - opted for VRS in 2005-06 against the figure of 5,608 the preceding year. It was mainly due to technological infusion in them.

Releasing the analysis, Assocham president Venugopal N Dhoot said: “The number of VRS optees from CPSEs during 2005-06 were 13,661. The total number of separated employees trained and redeployed under the scheme were 28,718 and 15,464.”

CPSEs employees under the ministry of coal, who opted for VRS in 2005-06, were 3,232 as against 4,348 in 2004-05 followed by MTNL, where 1,014 employees opted for VRS as against 2,314 in 2004-05, the analysis said.

CPSEs employees under the ministry of steel, who preferred for voluntary retirement in 2005-06, were 1,001 as against 2,354 in the preceding year and reason is less of choice by the employees and more of technological infusion which called for downsizing the staff, says the analysis.

The Assocham chief also said during 2005-06, banking sector has been the in which VRS was not opted as expected because when the government introduced the scheme a couple of years ago, the sector took lead in responding to it which resulted in acute shortage of banking staff.

After experiencing shortages, the commercial banks discouraged extension of VRS to their employees to take on the working pressure. As a result from 2004-05, the banking and financial sector virtually witnessed no VRS within their institutional arrangements, concludes the Assocham analysis. 

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Sanmina Corp to invest $50 m in TN
Tribune News Service

Chennai, June 19
The Tamil Nadu government today signed an MoU with Sanmina Corporation, a $11 billion company, to set up a plant at the Oragadam SEZ, which will be its second largest facility in the world with an initial investment of Rs 220 crore.

The MoU was signed in presence of Tamil Nadu Chief Minister M. Karunanidhi to set up a plant on 100 acres of a plot. It will provide direct employment to 500 persons to begin with, and to 10,000 within a period of five years.

Sanmina president, global operations, Hari Pillai, said, "The initial investment will be of $50 million (Rs 220 crore) and we will focus on medical, defence, aerospace, communications, automotive and multimedia."

The company, which claims to be one of the largest electronics manufacturers in the world, has 80 plants worldwide in 20 countries and employs 50,000 persons.

Pillai said by July next year, the plant at Oragadam, 70 km from here, would begin its operation and start "shipping technology".

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BRIEFLY

Multi-lingual site by RBI
New Delhi, June 19
The RBI has launched a multi-lingual site for the common man, which gives information in 13 languages. The site includes recent instructions of the RBI relating to customer service, lending rates of banks, Banking Ombudsman Scheme, Right to Information Act and links to commercial banks’ websites. There is also a section on the role and functions of the RBI, according to a RBI spokesperson. — TNS

Tripex plan
Mumbai, June 19
Tripex Overseas today announced plans to set up a SEZ unit near Valsad, which will produce bulk drug and formulations, with an initial investment of Rs 200 crore. The company has acquired about 1400 acres land and the development work would commence soon, Tripex Overseas informed the BSE. — PTI

Larsen & Toubro
Mumbai, June 19
Larsen & Toubro (L&T) and its UAE-based joint venture partner Eastern Contracting LLC have bagged an order valued at about Rs 618 crore for building a residential property in Dubai. L&T and Eastern bagged the order from UAE-based Victory Heights Golf Residential and Development LLC, the company informed the BSE. — PTI

Surana Industries
Chennai, June 19
Surana Industries today announced that it plans to raise $25 million though foreign currency convertible bonds and said it has already received subscription worth $14 million. Managing director of the company Dinesh Surana said: “The fund has been raised for our expansion plans for the steel plant at Raichur in Karnataka which will begin production by June next year.” — TNS

Hyundai Inds
Mumbai, June 19
Hyundai Heavy Industries today signed an MoU with the Maharashtra government for setting up a construction equipment plant in the state. Hyundai would invest about Rs 260 crore in the proposed plant at Chakan near Pune. — PTI

Sterlite ADS
Mumbai, June 19
Sterlite Industries today said it has priced its initial public offering of American Depositary Shares (ADS) at $13.44 each. Calculated on the basis of this price, Sterlite Industries would raise over $1.75 billion through the issue of over 13.04 crore equities in the form of ADS. — PTI

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