Russia suspends trading
MOSCOW, Aug 27 — The Russian authorities cancelled all hard currency trading today after the initial demand by private banks for the dollar dropped the value of the beleaguered rouble by over 10 per cent.
Malaysian economy shrinks 7 per cent
SINGAPORE, Aug 27 — Asia is sinking deeper into recession, with Malaysia and South Korea both reporting today a second consecutive quarter of economic contraction in the three months to June.

People queue outside a commercial bank to get their money as a bank official talks on a phone finding out if the bank will have cash in downtown Moscow on Wednesday. — AP

IMF grants reprieve
WASHINGTON, Aug 27 — In a major departure from its general policy of austerity for financially troubled economies, the International Monetary Fund has allowed its borrowers in Asia and Russia to postpone payments due to banks and other lenders.

Oriental Bank to invest 100 pc deposits in Punjab
CHANDIGARH, Aug 27 — The Oriental Bank of Commerce has decided to invest 100 per cent of its deposits from Punjab in the state itself to raise the credit to deposit ratio.
Tube Invest plant set up in Haryana
NEW DELHI, Aug 27 — Tube Investments India Ltd , a part of the Rs 2,900 crore Murugappa group, today commisioned the new TI Metal Sections Plant at Bawal industrial estate in Haryana.
Rouble trouble pulls down shares
MUMBAI, Aug 27 — After a firm start, equities met with a strong resistance losing initial gains and even declined further with a moderate fall of 18 points in the sensex on the stock market today due to late selling by operators as well as foreign funds.
Sebi relaxes terms for FIIs
MUMBAI, Aug 27 — The Sebi has simplified the procedure for registration of sub-accounts of foreign institutional investors and proposed to grant registration within three days.

Russia suspends trading

MOSCOW, Aug 27 (AFP) — The Russian authorities cancelled all hard currency trading today after the initial demand by private banks for the dollar dropped the value of the beleaguered rouble by over 10 per cent.

Trading will resume later, but on a still-undisclosed date, central bank officials told Russian news agencies.

Banks desperate to swap the plummeting Russian currency for dollars were offering in interbank trade to buy the dollar at 11.0986 roubles, a 29 per cent fall on the official rate of two days ago.

Official interbank trading on the Moscow Interbank Currency Exchange, Micex, opened this morning with the rouble plummeting to 8.80 against the dollar after initial bank offers, a drop of 10.9 per cent on Tuesday’s level.

Malaysian economy shrinks 7 per cent

SINGAPORE, Aug 27 (AFP) — Asia is sinking deeper into recession, with Malaysia and South Korea both reporting today a second consecutive quarter of economic contraction in the three months to June.

They join Japan, Hong Kong, Indonesia and Thailand in the infamous league of recession casualties after nearly 14 months of financial turbulence in the region following a debilitating currency crisis triggered off in mid-1997.

Economists say Singapore should also enter recession by the end of the year while Philippine economy is suspected to have posted negative growth in the second quarter of 1998.

South Korea’s Central Bank of Korea today said the giant Asian economy shrank 6.6 per cent in the three months to June, posting second straight quarterly contraction and signalling Korea Inc.’s slump into recession.

AP adds: Malaysia has fallen into full-blown recession, with its once booming economy shrinking by 7 per cent in the second quarter, the government announced today.

The figures marked a dramatic fall from grace for the Malaysian economy, which grew at a rapid pace for the last decade and expanded 7.8 per cent in 1997. The country now faces its worst slump in 13 years.

IMF grants reprieve

WASHINGTON, Aug 27 (PTI) — In a major departure from its general policy of austerity for financially troubled economies, the International Monetary Fund has allowed its borrowers in Asia and Russia to postpone payments due to banks and other lenders. John Boorman, the IMF’s Director of Policy Development and Review, in an interview to The New York Times said: "We are basically reacting to the realities that are unfolding".

Taking insurance against burglary

By Pushpa Girimaji

MOST people may not realise this, but there is a vast difference between theft and burglary. While theft is an act of stealing, burglary involves breaking into the premises to commit theft. And on this difference rests many an insurance claim.

In a recent case pertaining to insurance against burglary brought before the Monopolies and Restrictive Trade Practices Commission (MRTPC), the insurance company said the insured had lost the goods from his godown as a result of theft. The insurer was therefore not liable to indemnify the loss, as the policy covered burglary and not theft. The police, however, after investigation said it was a case of burglary, but the insurance company was not willing to accept it. The MRTPC deliberated over the issue and said the insurance company should go by the opinion of the competent authority, that is the police and make good the loss suffered by the insured.

Another important judgement on the subject was delivered in 1996 by the National Consumer Disputes Redressal Commission, when it enlarged the meaning of "violent and forcible entry" and thereby provided for indemnification of the loss suffered by the insured.

In the case before the MRTPC (Prem Nath Diesels vs Oriental Insurance Company) the police initially registered the complaint under Section 380 of the Indian Penal Code but subsequently, after completing the investigations, issued the final report under Section 457 and 380 of the IPC. The insurance company’s argument was that even though the police, after investigation, changed the nature of the crime from theft to burglary and theft, they had not responded to the insurer’s queries on the factors leading to this change of opinion.

After hearing the arguments, the MRTPC pointed out that with criminal offences, the police was the competent authority to decide, after due investigation, the nature of the crime. Of course, this was subject to the scrutiny of the competent criminal court when it went for trial, but in this case, the police had investigated the crime, filed the final report under Sections 457 and 380 and declared that it was an ‘untraced case’.

And once the competent authority had given its opinion that it was a case of burglary, it was not proper for the insurance company to repudiate the claim by alleging that it was a case of theft. Holding the insurer guilty of unfair as well as restrictive trade practice, the commission directed the company to pay Rs 4 lakh, being the loss assessed by the surveyor, along with 18 per cent interest and Rs 10,000 as costs.

In another case pertaining to the theft of auto sleeves from Sakar Iron Industries too (New India Assurance Company vs Sakar Iron Industries), the insurance company had requdiated the claim on the ground that neither the lock nor the door was broken and there were no signs of breaking into the premises. The insurer was liable to pay only if the insured property was lost or destroyed or damaged by theft following forcible and violent entry into the premises by persons committing such theft, the insurance company said.

Here, the National commission looked at the dictionary meaning of "violent" and said it was characterised by forcible, vehement, rapid and often sudden movement, requiring exhibiting of a powerful voluntary exertion of muscular strength, violent efforts. Said the commission: "Violent entry" may not include a theft where the thief only had to return the handle and walk in, but in this case, the report of the surveyor said that the culprit may have entered the casting department of the factory through the small open gap above the locked gate.

It was thus an unlawful, unnatural entry requiring exercise of force to gain entry. And "Violent" means was used in this case in that the person gaining entry had to use great physical force to enter through the gap above the door, the commission concluded. In this case too, the commission went by the assessment of the surveyor and directed the insurance company to pay Rs 2,29,991 with interest.

These two orders are very important from the point of view of consumers. but remember, whether you already have a policy against burglary or housebreaking or intend to take one, always read the conditions attached to the policy very carefully and ensure that there is no breach of policy.

One such condition in these policies is that if you change residence or move the insured goods, you must intimate the insurer of the change of address and get an endorsement of the change of location duly signed by an official of company. policy holders have failed to get the insured money only because they did not follow this condition in the policy document.

Oriental Bank to invest 100 pc
deposits in Punjab
Tribune News Service

CHANDIGARH, Aug 27 — The Oriental Bank of Commerce has decided to invest 100 per cent of its deposits from Punjab in the state itself to raise the credit to deposit ratio.

The issue that has caused anxiety among banking circles, for quite some time has been the low CD ratio, particularly in Punjab. Currently, the CD ratio is around 39 per cent in the case of OBC and 39.7 per cent average by scheduled banks in Punjab. With the decision, in CD ratio in case of Oriental Bank of Commerce is sure to go up substantially.

To augment the CD ratio, Mr Dalbir Singh, Chairman and Managing Director, inaugurated the new office of General Manager, for Punjab, Himachal Pradesh, Jammu and Kashmir and the Union Territory of Chandigarh today. Mr P.K. Sharma, who took charge as General Manager, said that the bank is targeting Rs 3,000 crore deposits from the Punjab zone. The bank will invest 100 per cent incremental deposits from Punjab in the state itself during the current year. However, the total advances in the zone comprising Punjab Himachal Pradesh, J&K and Chandigarh will be Rs 1,500 crore. This means the OBC will achieve a credit to deposit ratio of 50 per cent in this zone.

The bank has sanctioned Rs 103 crore to the Market Committee in Punjab for the development of yards. Another Rs 112 crore is being advanced to Markfed. The proposal for advancing Rs 600 crore to the Rural Development Board is under consideration with a consortium of banks for infrastructure development as well as laying/repairing existing roads.

The bank has also decided to extend loans against urban, semi-urban property mortgage for trade to the tune of Rs 2 lakh to Rs 10 lakh in each case. "Minimum questions" are to be asked in all these cases, he clarified. The bank is also introducing cash credit limits against the mortgage of land for farmers in the Punjab zone to bring up advances. Under this scheme loans up to 50 per cent of the cost of land can be extended without tedious documentation.

Mr Sharma claimed that the Punjab zone has already garnered Rs 2,400 crore deposits and is sure to surpass the target of Rs 3,000 crore during this financial year. Advances are to the tune of about Rs 900 crore and are targeted to reach Rs 1,500 crore by the current financial year end.

The new General Manager, speaking about his priorities, said he would try to bring down the non-performing assets (NPA) from the present 6 per cent to about 3 per cent in the zone. Out of the 16 loss-making branches, a majority are expected to break even during the current year.

Tube Invest plant set up in Haryana
Tribune News Service

NEW DELHI, Aug 27 — Tube Investments India Ltd (TI India), a part of the Rs 2,900 crore Murugappa group, today commisioned the new TI Metal Sections Plant at Bawal industrial estate in Haryana. The plant will manufacture door frames and trims for Maruti Udyog Limited (MUL).

The new plant has been set up at an estimated cost of Rs 18.5 crore and spread over an area of four acres. The plant is capable of producing 1,70,000 sets of door frames for Maruti 800cc cars.

The plant, in its full capacity, is expected to generate a turnover of Rs 20 crore,the Managing Director of TI India, Mr A. Vellayan, said here today.

The company’s plant in Tarapore caters to Telco and Eicher Motors, while the Chennai plant will cater to Hyundai, Ford and Ashok Leyland.

The company is using the technology developed by Ed Rose of the UK. Ed Rose is a part of the Wagon Group Plc who are the manufacturers of automotive components, auto manufacturers like Ford, Toyota and Honda in Europe.

TI India, a Rs 600 crore company, has four divisions — cycles, engineering services, tube products and metal sections.

Rouble trouble pulls down shares

MUMBAI, Aug 27 (PTI) — After a firm start, equities met with a strong resistance losing initial gains and even declined further with a moderate fall of 18 points in the sensex on the stock market today due to late selling by operators as well as foreign funds.

The BSE sensitive index rose to the intra-day high of 3040.48, but later fell back to close at 2974.83 as against Tuesday’s close of 2993.36, netting a loss of 18.53 points. The BSE-100 index eased by 7.97 points to 1331.21 from previous close of 1339.18.

Market sources said encouraging response to the State Bank of India’s bond issue that raised about US $ 4.16 billion earlier had attracted buying at the initial stages, but the statement by the AIADMK chief, Jayalalitha that the question of support to the BJP-led government at the Centre was still under review triggered bull liquidation.

The financial crisis in Russia also led to heavy selling by foreign funds, who pressed sales in ITC, Hind Lever, EI Hotel and others, they added.

Russia’s rouble, after a sharp devaluation last week, had fallen 10 per cent to 7.88 to the dollar on Aug 25, followed by another 5 per cent drop yesterday resulting in suspension of trading soon after it started on the Moscow interbank currency exchange.

The credit rating agencies had also downgraded its Russia debt rating and long-term foreign currency rating.

Financial institutions, however, picked up shares of BHEL, BSES, Larsen & Toubro, EI Hotel and GE Shipping.

The BSE-200 and the dollex were quoted fractionally down at 310.60 and 121.59 compared with the previous close of 312.49 and 122.42 respectively.

Sebi relaxes terms for FIIs

MUMBAI, Aug 27 (PTI) — The Sebi has simplified the procedure for registration of sub-accounts of foreign institutional investors (FIIs) and proposed to grant registration within three days.

With a view to expedite the grant of registration to sub-accounts, FIIs registered with Sebi would only be required to submit details of the sub-account along with an undertaking and a fee of $ 1,000. No other document or enclosures would be necessary, Sebi said.

Registration would be granted merely on the basis of the undertaking given by the FII and the latter would have to conduct the due-diligence exercise to verify the eligibility of the sub-accounts, the regulator added.

In case any details are subsequently found to be incorrect, the FII would become liable for appropriate action.

The sub-account registration would have the same validity as that of the FII under which it is registered, irrespective of the date of initial registration of the sub-account.

Court reserves orders in LML case

KANPUR, Aug 27 (PTI) — A city civil judge today reserved orders on a plea by the Singhanias challenging their partner Piaggio’s contention that the case relating to their joint venture LML limited be transferred to the International Chamber of Commerce (ICC) at Singapore for arbitration. Senior judge Ashok Kumar Jain also directed the two parties to file written arguments by September 1.

FIs sell stake in SVCL to Raju

NEW DELHI, Aug 27 (PTI) — Promoters of Sri Vishnu Cement Ltd (SVCL), Dr B.V. Raju, and his associates managed to increase their stake in the company to about 70 per cent with all three financial institutions (FIs) selling their 26.21 per cent stakes. IDBI and IFCI sold 13.16 and 6.52 per cent at Rs 90 and Rs 100 per share respectively to Raju and his associates yesterday.

Corn Products bags Tarla Dalal

MUMBAI, Aug 27 (PTI) — Corn Products Ltd (CPC) today added to its impressive brand portfolio, which includes Brown & Polson custard, Rex Jelly, Glucovita and Knorr soups, yet another household name, Tarla Dalal. Announcing the acquisition of the Tarla Dalal brand along with its associated goodwill, technical knowhow, plant and machinery from Tarla Dalal Foods (TDF), CPC Chairman and Managing Director Salil Punoose said the acquisition is expected to boost CPC’s foray into the instant foods market.

Central Pulp net falls

NEW DELHI, Aug 27 (UNI) — Central Pulp Mills Limited (CPML) has recorded an over 27 per cent drop in net profit during the year ended June 30, 1998 to touch Rs 5.01 crore from Rs 6.87 crore the previous year. Sales and other income stood at Rs 123.27 crore as against Rs 122.38 crore in the previous year. Operating profit before interest and depreciation was Rs 20.32 crore, down from the previous year’s Rs 21.86 crore.

Award
Tribune News Service
CHANDIGARH, Aug 27 — Lt- Col Inderjit Singh, Principal Adviser, Fujitsu India Telecom Ltd, Mohali, has been selected for the first IETE-BV Ballga Memorial Award of the IETE for his contribution in electronics and communications.

Association
Tribune News Service
CHANDIGARH, Aug 27 — Chandigarh Electrical and Electronic Traders Association formed a body yesterday with following as office-bearers: president — Mr R.P. Gupta; vice-president — Mr P.N. Khanna; general secretary — Mr Deepak Jaiswal; secretary — Mr Mahendra Choudhry and cashier — Mr K.C. Taneja.

PF function
Tribune News Service
CHANDIGARH, Aug 27 — At a function organised in the Regional Office here today Mr A.D. Nagpal, member, C.B.T. distributed cheques, PPOs and annual accounts slips to pensioners, widows and employers. Mr M.L. Meena, Regional PF Commissioner, highlighted salient features of the E.P.S. 1995.

Forex rates
MUMBAI, Aug 27 (PTI) — The following are interbank forex rates (in rupees per unit — buyer/seller).

U.S. $ 42.49/51
Sterling £ 70.05/07
Deutsche Mark 23.51/53
Yen (100) 29.72/76
The RBI reference rate was Rs 42.53.