 |
Sunday,
May 20, 2001, Chandigarh, India  
|
JPC on stock scam racing against time 25 firms eye overseas
listing
Haryana Power Utilities losses cut What will happen to PCs? Privatisation of NFL, BHEL soon: Patwa |
|
|||||||||||||||||||||||||||||||
|
Additional volatility margins on 62 scrips Gold, silver prices shoot
up CyberConnect inaugurated SBI scheme for senior citizens Cadila’s valuation
Q: I am planning to start an Engineering Consultancy Service as proprietory concern.
240 working days
|
|
JPC on stock scam racing against time New Delhi, May 19 The 30-member JPC has to give its report at the monsoon session of Parliament and going by the slow progress of the proceedings so far, the task looks gigantic. A member confided that stock market business was complex and technical and it could take a few months for several JPC members to understand the nuances of the multi-crore scam. Several MPs have also sought time to attend to their constituencies , making the holding of regular sittings of the JPC difficult. At the going rate, a thorough inquiry could take even a year, a member felt. The government has made arrangements to brief the members about the working of the stock market and other essential aspects required for the probe and has lined up officials from the SEBI and the Finance Ministry to brief the JPC. The foundation for the probe has been laid by the SEBI itself as it has already circulated an interim report on its findings on the stock scam. The report meant to be confidential has, however, been leaked to a section of the Press, giving a new twist to the probe. With the possibility of the media guiding the probe, various lobbies at the stock markets too have become active. The JPC Chairman, Mr P.M.Tripathi, it is understood to have taken exception to members disclosing the contents of the SEBI report to the media and had asked them to be cautious. The warning however, came too late as the reports have been covered extensively by the media. Several JPC members are also contacting top brokers to learn the finer aspects of the stock market functioning. The trend has however, increased the possibility of various lobbies finding a say in the happenings of the JPC. Apart from external influences, another cause of worry has been the closeness of some members to various corporate houses. For instance, a Samajwadi Party MP, Mr Amar Singh has informed the JPC Chairman of his interests in five companies, including ABCL and Flex Industries. The Chairman, Mr Tripathi, has said any MP on the panel, who had a personal stake or a direct interest in a corporate house, which was under probe, would have to apprise the Lok Sabha Speaker on the nature of his involvement. Mr Tripathi said the parliamentary guidelines in this regard were clear and it was up to the Speaker to take a final decision on whether or not to debar any member from the deliberations. Another development that takes the punch from the JPC probe is that even while the enquiry is on, the SEBI and the Reserve Bank of India are allegedly moving swiftly to plug the loopholes found in the recent scam. The market watchdog has announced several measures, including the abolition of badla and new guidelines on insider trading while the RBI has taken steps to limit the exposure of banks in the stock bourses. SEBI investigations have already traced the use of around Rs 2,000 crore to rig the markets by broker Ketan Parekh and the role of other market operators in the scam. Considering the fact that the SEBI is yet to come out with the final report, the probe by the JPC is hampered.
|
|
25 firms eye overseas listing New Delhi, May 19 Some 60 companies have in the past one year announced plans to raise resources through an overseas listing and out of these 25 companies are actively pursuing their plans, the company said in its annual market review report released here Friday. Prominent among these are Bharti Tele-Ventures, which plans to float an issue worth $200 million, BPL Communications ($200 million), HCL Technologies ($500 million), HDFC Bank ($175 million), Reliance Infocom and Reliance Petroleum ($1,000 million). BPL Communications, HCL Technologies and Reliance Petroleum have already obtained government approval for floating an overseas issue. "The preferred route this time, however, appears to be NYSE (New York Stock Exchange) and LSE (London Stock Exchange) and not the Nasdaq sock exchange that has witnessed extremely turbulent times," Prithvi Haldea, Managing Director of Prime, said. Other domestic companies eyeing the overseas stock exchanges include Apollo Hospitals, Ballarpur Industries, Bank of Baroda, Birla-Tata-AT&T, Corporation Bank, Global Trust Bank, Hindalco, Oriental Bank of Commerce, Pentamedia Graphics and UTI Bank. "With the domestic primary market continuing to be in a state of turmoil and eligibility criteria for domestic listing for several large corporate houses not being very conducive, the attention is now shifting towards the overseas capital markets," Haldea said. In the current fiscal, Hyderabad-based Dr. Reddy's Laboratories and Satyam Computer Services have raised $133 million and $141 million, respectively, through American depository receipts (ADRs) on NYSE. According to the report, the capital raised through overseas listing route in the current year is expected to exceed Rs. 17.64 billion that was mopped-up in the fiscal ended March 31, 2001. Companies that helped raise Rs. 17.64 billion in last fiscal include Wipro with Rs. 6.07 billion, Silverline Technologies (Rs. 4.83 billion), Aptech (Rs. 3.77 billion), Rediff.Com (Rs. 2.84 billion) and Usha Beltron (Rs. 520 million), the Prime report said. The total mobilisation in 2000-01 through overseas route, however, marks a decline of 65 per cent compared to fiscal 1999-2000 that had seen seven corporates such as ICICI, Satyam Infoway, ICICI Bank and Gas Authority of India Ltd. raise Rs. 49.91 billion. "The reason for the massive downward trend in 2000-01 is clearly the outcome of the crash at Nasdaq in April last year which has increasingly made raising of capital difficult," Haldea said. The crash led to shelving of issue plans. India's media major Zee
Telefilms, which in early 2000 had announced its plan of floating overseas public offer of $1.5 billion, has still not been able to tap the market despite scaling down its issue size successively.
IANS
|
|
Haryana Power Utilities losses cut Chandigarh, May 19 The utilities plan to reduce tariff, once they make a profit. For the current year, the utilities have asked the Haryana Electricity Regulatory Commission (HERC) to merely convert the fuel surcharge — presently about 5.5 per cent — into tariff, with the result that the consumers will continue to pay for power what they are paying at present, without any further increase. This is subject to the permission of the HERC, which may ask the utilities to increase the tariff. The financial results of the utilities for the last financial year show that they ended up with a loss of Rs 209.56 crore against the projected loss of Rs 1,011 crore. Despite an increase in the cost of power from Rs 1.54 per unit to Rs 1.99 per unit. Its own generation capacity also remained affected because of the non-functioning of a unit of the Panipat thermal plant, which was handed over to a multi-national company for modernisation. The work has been held up for the past two years owing to a dispute between the company and the power utilities over certain terms and conditions of the agreement. The utilities registered an increase of 20 per cent in revenue collection from sale of power over the previous year. While the utilities were able to reduce the expenses on maintenance and employees by 2.5 per cent and 6.7 per cent, respectively, their interest burden went up by 15.7 per cent. The Chairperson of the utilities, Mrs Meenaxi Anand Chaudhry, says the government is open to the issue of privatisation. But it is no longer a matter of compulsion. Now the government can take a decision on privatisation on the merits of the issue. The utilities plan to change the meters of around 10 lakh consumers of the nearly 35
lakh.
|
|
What will happen to PCs? London, May
19 However, to observers such as Don Norman, the celebrated computer design guru, the slowdown heralds something quite different: nothing less than the beginning of the end for the personal computer as we know it. In Norman's view, the PC is doomed because it is too complicated for ordinary human beings. Making serious use of a PC, he says, requires a level of technical proficiency that is way beyond the average citizen. The learning curve is just too steep. And besides, most people have better things to do with their time than learn about Windows system calls. And why is the PC so complicated? Answer: because it's a general purpose device. Given the right software, a PC can do an astonishing range of things — from spreadsheet number-crunching and word processing, through speech recognition and three-dimensional graphics to interactive games, musical composition, web publishing and a zillion other things. The machine on which I'm writing this holds most of my favourite music tracks and can play them on demand. It also holds my family's collection of digital photographs, and allows me to display and edit them to my heart's content. It hooks up to a webcam and to the net, it can send and receive faxes, and so on. To Norman and his colleagues, however, my computer looks awfully like the domestic electric motor in the 1918 Sears Roebuck mail-order catalogue. Electric motors were a big deal in 1918. Sears sold a magnificent model that could do virtually anything provided you possessed the appropriate attachment. Under the headline "Aids that every Woman Appreciates" the catalogue explains that the $8.75 "Home Motor" can drive a fan, churn milk, whip cream, sharpen and grind tools and do dozens of other useful tasks. In the years since that catalogue was published, the electric motor that was such a big deal in 1918 has become ubiquitous. Electric motors are everywhere nowadays — in watches, cameras, hi-fi systems, washing machines, microwave ovens, fridges, power tools, garage doors and heating systems. And that, says Norman, provides a good analogy for what will happen to computers. They will become miniaturised, ubiquitous and invisible, metamorphosing into specialised `information appliances'. Thus if I want to send an email in the future, I will no longer have to boot up a PC and load a mail program. Instead, I'll just open my email device and start typing (or dictating, or whatever). For most people the decline of the fiendishly complex PC is something devoutly to be wished for. They look forward to an age of simple devices that you just switch on and use. But a downside to these information appliances is only now beginning to surface — namely that they will be intrinsically more controllable by the industries that make them and provide content to run on them. In other words, we may wind up exchanging the complexities of freedom for the restrictions of specialisation. Norman may well be right about the fate of the generalist PC. But we may live to rue its demise.
Observer News Service |
|
Privatisation of NFL, BHEL soon: Patwa Bhopal, May 19 He told reporters the prolonged strike in Balco, in protest against its privatisation, had caused maximum damage to its employees and severely hit the economy of Korba where it is located. He said, “the move to privatise Balco was first made by Narasimha Rao government and later endorsed by the governments of by H.D. Deve Gowda and I.K. Gujral”. However, the actual disinvestment took place under the Prime Ministership of Mr Atal Behari Vajpayee, giving the impression that it was the BJP that initiated the disinvestment in Balco, he said. The minister said his party was strongly of the view that it was not the job of the government to run business of any kind. “It is the job of the government only to run the administration and not keep itself occupied with running any business”, Patwa added.
PTI |
|
Additional volatility margins on 62 scrips Mumbai, May 19 Adani Exports, Adiabs Films, Aksh Optifibre, Aptech, Ashok Leyland, Avinash Information Techonologies, Azteo Software and Technology Service, Balaji Telefilms, Blue Dart Express, Carrier Aircon, Crest Communication, Digital Equipment (India) D-Link (India), DSQ Software, Essel Packaging, Fujitsu Icim, Gati Corporation, Geometrio Sofware Solution Co. Gillettee India, Global Telesystems, Gujarat Mineral Development Corporation, HCL Infosystems, HCL Techonologies, Himachal Futuristic Communication, Hughes Software Systems, Infotech Enterprise, IVRCL Infrastructures and Projects, Jindal Steel and Power Jupiter Bioscience, Mascot Systems, Mastek Nedungadi Bank, NIIT, Nucleus Software Exports, OCL India, Orient Information Techonology, Otis Elevator Co (India), Padmalaya Telefilms, Pentamedia Graphics, Philips India, Polaris Software Lab, PSI Data System, Punjab Communications, RS Software , Rolta India, Satyam Computer Service, Saw Pipes, Shonkh Technologies International, Shyam Telecom, Sierra Optima, Silverline Technologies, SSI, Sterlite Optical Technologies, Subex System, Sun Inforways, TCI Industries, Television Eighteen India, Tips Industries, Trigyn Technologies, Wipro, and Zee Telefilms. The AVM will be computed on the net outstanding purchase or sales position as may be applicable, including carryforward positions at the end of the day.
UNI
|
|
Gold, silver prices shoot up New Delhi, May 19 Silver also moved up along with the bullish market and gained substantial
ground. Marketmen said the notable rise was a record in recent years due to stockists buying despite the ongoing off-marriage and off-festival season. They said the spurt was the impact of an overnight rise of more than $13 an ounce on the New York bullion market. Standard gold and ornaments shot up by Rs 200 each at Rs 4,650 and Rs 4,500 per gm respectively. Sovereign also joined the bullish trend and gained Rs 100 at Rs 3,900 per piece of 8 gm. Silver (ready) moved up further by Rs 30 at Rs 7,465 per kg and weekly based delivery by Rs 25 at Rs 7,470 per kg. Silver coins were better by Rs100 at Rs 11,000/11,200 per 100 pieces.
PTI
CyberConnect inaugurated Chandigarh, May 19 The centre will showcase an entire range of Internet and telephone products and services. The facilities will include video conferencing, calling cards, limited mobility handsets, ComeConnect Internet packs and regular telephone sets . With launching of the telecom shops, Connect expects a substantial increase in its share in the public Internet access market. Such centres would be located in commercial as well as residential areas and local markets
etc.
SBI scheme for senior citizens Mumbai, May
19 The product named “Senior Citizens Deposit Scheme” will be available for individuals aged 60 years and above, SBI said in a release here today. For maturity period of three years and above, the rate of interest offered will be 75 basis points higher than the normal rate for term deposits. The minimum deposit sum has been fixed at Rs 10,000.
PTI |
cr
Cadila’s valuation The small shareholders of German Remedies are protesting the payment of Rs 225 more per share than what they have been offered, to the parent company by Cadila, the acquirer. Now, the additional sum was very obviously towards the purchase of the brands too from the company, and what’s more, there is little room for debate that the offer price to the shareholders of Rs 650 per share is a generous one, given the prevalent market conditions. Hamara Bajaj The Bajaj group has indulged in a lot of brave talk on taking on the Chinese collaborators on its own terms, shift of focus from scooters to motorbikes, its productivity enhancement measures and so on and so forth, but at the end of the day, analysts seem unimpressed. Why? Well, there’s no escaping the fact that the bottomline is dwindling and rapidly at that. Prediction The grapevine has it that the Pune based astrologer who had predicted the bull run and its end, predicts that the markets will revive in a big way
post-Divali. How? Well, it seems only the stars can tell. Nobody’s complaining though! Hind Lever With the tech related stories getting more frightening by the day, it seems fund managers have reconciled to returning to old time-tested favourites like Hindustan Lever. Remember, not too long ago, several fund managers had criticised it as ‘only
topline’ growth company. Seems they’ve now realised that’s better than no growth at
all. |
ty
by A. N. Shanbhag Q: I am planning to start an Engineering Consultancy Service as proprietory concern. 1. What are the formalities required for starting a proprietory firm. 2. I am employed in a Ltd. firm. Is there any legal problem to start a proprietory firm. 3. What are the Income — tax formalities required for the properitory concern. — T.J. Joy, B 10-22¾, Sector-3, CBD- Belapur 400614. A: There are no formalities required for starting a proprietorship business. The only care you have to take is to choose a name which is not protected by copyrights of any other organisations. In respect of taxes, it would be necessary for you to prepare separate P&L account (as well as Balance Sheet) and carry over the profit to your own individual tax returns. Q: In para 13 of CBDT Circular No. 798 (F.No. 275/192/2000-TT (B) dated 30. 1. 2000 (issued for Deduction of Tax at Source from Salaries), it has been laid down “—It may be noted that the amount which will qualify for tax rebate in respect of this item (capital repayment of loan taken for housing) will not exceed Rs 20,000. In respect of repayment of loans taken for the purchase or construction of a new residential house property the construction of which does not get completed by the end of the financial year 2000-2001, no tax rebate in respect of these items shall be admissible to the employees”. This provision of completion of the constructions by the end of the financial year does not seem to be logical. On one hand even the contribution/subscription made to the Home Loan Account (or such other scheme of Nation House Bank) opened for the purpose of saving the funds with the future purchase of residential house property are admissible and on the other hand keeping a stipulation that repayment of loans taken for the purchase or construction of a new residential house property the construction of which does not get completed by the end of the financial year 2000-2001, no tax rebate in respect of these items shall be admissible to the employees seems to be contrary to the spirit of this rebate. —
P. K. Mishra, Dy. Chief Engineer, North Central Railway, Allahabad pkmishra@vsnl.com A: I agree with you in
toto. This is inequity of high order. Incidentally, the Circular you have cited contains many stipulations which are different from the main body of the Act. For availing the benefit of the rebate and deduction of interest payable on housing loans, the construction should be complete, the flat should be ready for occupation and the municipal annual value known. In the case of interest payable prior to the year in which the property was acquired or constructed, there is some protection. It shall be deducted in 5 equal annual instalments commencing from the year of purchase or completion. There is no such protection for the rebate u/s 88. It is lost until the house is ready. Unfortunate! Q: I had purchased 100 shares of an unlisted company at a price of Rs. 300 in Dec. 1995, company gave bonus of 1:1 in September 99. Now I have sold these shares at a price of Rs 2,150 in January 2001. Please advise me on:- 1. Tax payable on account of capital gains, best way of reducing tax. 2. I propose to gift Rs. 2,50,000 to my wife out of the balance and she invests in monthly savings scheme of post office as she does not have any tax liability. 3. Any other mode of avoiding tax on these transaction/best course of action. —v bhagtani@im.eth.net A: The cost inflation index of 95-96 was 281 and that of 00-01 is 406. The indexed cost of acquisition in Rs. 43,345. Your sale price of these 100 shares is Rs 2,15,000. The long-term capital gains are Rs 1,71,655 on which the tax liability @ 20% works out at Rs 34,331. Since the shares are unlisted, the option of tax @10% without indexation is just not available. The one and only way of saving this tax is to contribute Rs 1,71,655 to avenues u/s 54EC. The only on tap instrument available under this umbrella is NABARD Bonds where one can invest in multiples of Rs 10,000. Unfortunately, the interest rate is as poor as 8.5 per cent p.a., payable annually and more unfortunately, it is fully taxable. The other 100 bonus shares are acquired in 99-00 and therefore, these are short-term asset and being bonus, the cost of acquisition is to be taken as nil. The short-term gains are Rs 2,15,000, chargeable to tax at the normal rate applicable to you. The income from gift to your wife is clubbable in your hands and does not provide you with any benefit to save taxes. There is no advantage in gifting the money to your wife. You may be able to save capital gains tax by purchasing a house within 2 years from the date of sale by investing the net proceeds, provided you did not own more than one house at the time of the sale of shares and you will not be able to sell the new house for a period of three years. Also your should not purchase another house within a period of 1 year or construct another house within a period of 3 years from the date of sale of shares. |
co
by Praful R. Desai 240 working days Q: Whether government can decide that workman has completed 240 days and thus refuse to make reference? Ans: Rajasthan H.C. in Bhika Ram v State of Rajasthan (2001-I-LLJ.1014) opined thus: The government refused to refer the matter for the reason that the workman had not completed 240 working days in a calendar year. The single judge also dismissed the writ petition on that ground. Thus, the matter is before the Division Bench of that H.C. The H.C. pointed out that in Dhanbad Colliery Karamchari Sangh v Union of India (1991 suppl (2) Sec. P. 10) the S.C. has clearly held that the Govt. cannot itself decide the dispute. This judgement is clearly binding on us. In view of the above, the H.C. opined that the State Govt. was wholly in error in passing the impugned order and refused to make reference to the competent Labour Court. In view of the above, the H.C. allowed the appeal and the aforesaid order passed by the State Govt. refusing to make reference to the Labour Court is quashed and set aside. Before parting, the H.C. stated that the matter was argued before the Learned Single Judge on merits as well and the Learned Single Judge has arrived at the conclusion that the workman failed to establish that he worked for 240 days in a calendar year. In the opinion of the Division Bench of the H.C. this issue could not have been gone into and decided by the Learned single Judge in writ jurisdiction because it require evidence which can only be led before the Labour Court. Accordingly, while allowing special appeal, the D.B. of the H.C. set aside not only the impugned order of the State Govt. but also set aside the judgement and order passed by the Learned Single Judge of this H.C. The H.C. accordingly accepted the writ petition to the extent that the impugned order of the State Govt. was bad. The H.C. in the end directed the State Govt. now to refer the dispute to the Competent Labour Court as early as possible, preferably within one month from the date of receipt of the copy of this order. |
bb
IndusInd Bank New Philips TV Infosys chief Award for BHEL ONGC bags deal Gruh Finance LIC growth Servo in Lanka NIIT Futurz |
 |
| Punjab | Haryana | Jammu & Kashmir | Himachal Pradesh | Regional Briefs | Nation | Editorial | | Business | Sport | World | Mailbag | In Spotlight | Chandigarh Tribune | Ludhiana Tribune 50 years of Independence | Tercentenary Celebrations | | 121 Years of Trust | Calendar | Weather | Archive | Subscribe | Suggestion | E-mail | |
