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Sunday,
November 17, 2002, Chandigarh, India  
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No PNB
shares to NBL shareholders PNB
records 44 pc net profit BSNL
mobiles cross 1 lakh In the
wonderland of investment Tomato
paste unit for Ambala Corporation,
Karnataka banks tie up |
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Forex reserves touch $ 65b
Can sex
boost economy?
Agreement
Plan
panel for open aviation policy
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No PNB shares to NBL shareholders Mumbai, November 16 As per the draft scheme, the RBI clarified that PNB would first evaluate the assets and determine the liabilities of Nedungadi Bank and on completion of this exercise, PNB would pay depositors and creditors to the extent of their balances. Shareholders of Nedungadi Bank would be entitled for payment of pro-rata value of shares only if any surplus remained after paying off the depositors and creditors, the RBI said here in a statement. SEBI also said in a statement that the proposed merger of Nedungadi Bank with PNB was exempted from the applicability of regulations 10, 11 and 12 of its takeover code and consequently, there would not be any public announcement or open offer for acquisition of shares. The statement from both regulators came in the wake of media reports regarding price movement of shares of Nedungadi Bank ever since the scheme was notified on November 13. Nedungadi scrip then rose by 4.45 per cent to Rs 15.25 and PNB was up by 1.21 per cent at Rs 41.85 a day later. On the commencement of the scheme, which has been notified by the RBI, the entire amount of the paid-up capital and reserves of the Nedungadi Bank would be treated as provision for bad and doubtful debts and depreciation and other assets of the bank. As per the merger scheme, all employees of Nedungadi Bank will continue in service and be deemed to have been appointed in PNB at the same remuneration and on same terms and conditions of service as were applicable immediately before the close of business on November 2, 2002. PNB would have the option of integrating branches of Nedungadi Bank according to its convenience and/or close down or shift the existing branches. However, this option would be exercised by PNB with the prior approval of the apex bank, the statement said.
PTI |
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Merger by Jan: Chairman Kozhikode “With the RBI seeking suggestions on its draft scheme for
the proposed amalgamation from NBL, PNB and depositors by November 30, the entire process of merger is likely to be completed by January next”, Prabhu told PTI here. Since assets and liabilities of NBL would be taken over by PNB thereby ensuring total protection to the depositors’ money with interest and that all employees would be absorbed, the merger proposals were likely to be accepted unanimously by all quarters, he said. However, modalities concerning seniority of staff would be worked out by PNB in consultation with NBL and the former had the right to rationalise the network vis-a-vis retaining “potential centres” and closing down others, Prabhu said. In view of suspension of business that followed the Centre’s November 2 moratorium and the hardship faced by depositors, who could withdraw a maximum only Rs 5,000 from any account, the process of merger would be carried out soon, he said, adding that by all accounts the Centre was expected to notify the merger in its Gazette by mid-January.
PTI
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PNB records 44 pc net profit Ludhiana, November 16 Mr Bhargava disclosed that total income increased to Rs 887 crore for the half year ended September, 2002 from Rs 789 crore in the corresponding period last year showing a growth of 12.48 per cent. The total expenditure during this period increased to Rs 669 crore from Rs 638 crore registering an increase of 4.95 per cent.
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BSNL mobiles cross 1 lakh Chandigarh, November 16 He was here to inaugurate the scheme of payment of telephone bills through HDFC
Bank. Talking to the mediapersons, he disclosed that the initial response to the cellular services was overwhelming. He asserted, ‘‘BSNL has achieved the subscriber base of 1 lakh about a week ago and is determined to add about 1.5 million cellular subscribers by March end, including 3 lakh subscribers in the Punjab and Chandigarh circle.’’ Mr Prithpal Singh claimed that BSNL had invested about Rs 2,500 crore to set up the cellular network, including Rs 300 crore in the Punjab circle. He further announced that BSNL would launch WLL services in Chandigarh and other cities by December end. The target was to sanction 3 million landline connections and 1.5 million WLL and cellular connections each during the current fiscal year. Despite investment of about Rs 20,000 per landline connection, in comparison to Rs 8,000 per cellular connection, it would try to encash the landline connections by offering value added services like video-conferencing, internet connection and other services. Asked about the offer of zero monthly rental by Spice and AirTel, he said, ‘‘we are closely watching their new packages and will offer additional packages to our subscribers at appropriate time. At present, our focus is on making the network functional.” Mr S. C. Chaudhary, Principal General Manager, Punjab circle, BSNL, said by next week, the cellular operations would start functioning in Jalandhar, Hoshiarpur, Patiala and other cities in the region. |
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Pay BSNL bills through Bank of Punjab Chandigarh, November 16 Mr
D.P. Singh said BSNL customers could now simply walk into one of the bank’s branches or use any of the preferred channels to access their accounts and by pressing a few buttons and their bills would be paid. Mr Pritpal Singh stressed on BSNL’s focus on customer convenience. This tie-up would enable BSNL customers to pay their bills online through various electronic channels of the bank namely ATMs, internet banking, phone banking and mobile phone.
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In the wonderland of investment Q: I have the following query:- Exemption of 15000 in 80L is dividend income from UTI and other mutual funds is up to 12000 or extra 3000 is meant for these dividends too apart from 12000. Contribution to Group Insurance Scheme attracts 100 per cent rebate or 20 per cent u/s 88 Manjish Gargi A: 1. The extra deduction of Rs 3,000 is only for interest from government securities (issued by RBI) and not for dividends from schemes of UTI/MF. 2. The Group Insurance Scheme is contributed to by employer. How can an individual get any rebate or deduction for the same u/s 88? If you are referring to Mediclaim policy for the family contributed to by an individual, he will be entitled to deduction up to Rs 10,000 (Rs 15,000 if one of the persons covered is a senior citizen) or the premium whichever is lower. Q: Unfair practices in buy-back and delisting at the expense of small shareholders. I would like to urgently bring to attention, some practices, which companies adopt to buy back and delist the target company at the expense of small shareholders. The game is to gain management control of the target company, depress the share price by showing poor operational results and financial, and then buy the shares cheap through low-priced offers using the threat of delisting. I shall site a few examples. Cadila Healthcare gained control of German Remedies with an offer of Rs 650 per share in September, 2001, and then in July, 2002 they forced small investors to sell at Rs 300 per share with a threat to delist. True they used SEBI norms for pricing but is this correct? Hindalco has made an offer to buy Indian Aluminum shares at Rs 120 per share whereas the earlier offer at which they were bought was for Rs 190 per share just two years ago and the company is doing well. Madura Coats issued right shares in June, 1975, at Rs 65 per share that is at a premium of Rs 55. Then it sold off some brands for garments at good price. Thus they collected good deal of cash. Then they depressed the market price of shares showing not-so-good performance. Now, its associate British company is buying back the shares at only Rs 40 per share. This means that they will garner all cash they got from rights issue as well as the sale of good brands. Small shareholders are threatened that the company will be delisted if they get 90 per cent of the total equity. Small shareholders have no choice but to sell at the dictated price. I think the same is going to happen to Larsen & Toubro and I suspect that Hindustan Lever price is purposely depressed so that promoters force small investors to sell at a low price using buy back mechanism. I urge you to look into this matter and if you think that the small shareholders are being short changed then please use your good offices to stop it. Phiroze Kutar A: Yes, you are absolutely right. This dirty game is being played within the four corners of the law and SEBI can do nothing but watch. The market has hit the bottom and is sitting pretty there for a period that has beaten all the records so far and perhaps is about to become the world title holder in this regard. The cash-rich management with insider information has realised that this is the right time to slap a buyback. The SEBI formula price is extremely attractive to them and the fear of delisting is equally scary for shareholders. Thankfully, shareholders of Sterlite Industries succeeded in making the authorities hear their cries. I hope that SEBI will promptly take some corrective action now, rather than after-the-damage salvaging operations as is its wont. |
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Tomato paste unit for Ambala London, November 16 A memorandum to this effect was signed today here between representatives of Alberto Bertuzzi, Mr Roberto Benvenuti, Managing Director of Radha Agro Wax Limited, Mr Laxman Goyal, and Managing Director of Haryana State Industrial Development Corporation, Dr Harbaksh Singh, who signed in the capacity of a facilitator in the presence of Haryana Chief Minister, Mr Om Prakash Chautala, who is on a six nation visit to attract direct foreign investments in the state. The daily production capacity of this unit would be 200 tonnes and it would benefit tomato growers of the districts of Ambala, Panchkula, Yamunanagar and Kurukshetra. The Italian firm would provide technical know-how as well as machinery for setting up this unit whereas the land would be provided by the HSIDC. The equity participation of Radha Agro Wax in the unit would be 55 per cent and that of Alberto Bertuzzi would be 35 per cent.
Agency
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Corporation, Karnataka
banks tie up
Chandigarh, November 16 Addressing a joint Press conference, Mr K. Cherian Varghese, Chairman and Managing Director, Corporation Bank, said the agreement was the first of its kind wherein a public sector bank and a private sector bank had come together to share their infrastructure for offering better facilities to their customers. Such sharing would also help both banks to reduce the cost of transactions by economising the investment on IT infrastructure. Mr Varghese said Corporation Bank had already installed 252 online inter-connected ATMs throughout the country and was in the process of installing additional 250 ATMs by March, 2003, thereby taking the network beyond 500.
TNS
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Mammen Mathew appointed Reuters Trustee New Delhi, November 16 Mammen Mathew worked as a newspaper journalist in the UK and the USA in the late sixties and is a former Chairman of the Indian section of the Commonwealth Press Union. He served as the President of the Indian Newspaper Society and the President of the Editor’s Guild of India and was a member of the Press Council of India for two consecutive terms. Mammen Mathew was first selected by a nomination committee, two members of which are judges of the European Court of Human Rights. Later, the Trustees unanimously voted 58-year-old Mammen Mathew as a Trustee and Director. Pehr Gyllenhammar, Chairman, Reuters Founders Share Company, said, “We are delighted to welcome Mammen Mathew as Reuters Trustee. He brings a strong background in international journalism and we are sure he will make a valuable contribution to the Reuter’s Founders Share Company”. |
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Forex reserves
touch $ 65b Mumbai With the rupee gaining strength, the lag in export earnings has reduced, thus, leading to the rise in the country’s foreign exchange reserves by $ 755 million to $ 65,376 million in the reporting week. The country’s foreign currency assets during this period also rose by $ 755 million to reach a level of $ 62,088 million, the RBI said in its weekly statistical supplement here today.
PTI |
Can sex boost economy?
Singapore, November 16 “Sexual health is not just about absence of disease or dysfunction.... It is about the ability to enjoy sex,” Ng told reporters on the sidelines of the 7th Asian Congress of Sexology. “ This will improve the
whole nation's well-being and productivity. When your economy is down, sexual activity will be lower, not because of sexual problems, but financial problems. This is a vicious cycle.” Experts also said that sexual myths rooted in Asia’s diverse religious and cultures could create social problems that spread into an adult’s working life.
Reuters
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by Praful R. Desai Agreement Que: Is the agreement entered into between landlord and tenant regarding tenancy is simply a balled agreement and thus not binding upon authorities? Ans: In Sankatha Prasad v Add. Distt. Mag. Varanasi (2002 (I) RCJ 231), Allahabad-14-C was opining thus: The proceedings were initiated after the Rent Control Inspector submitted its report on 23.10.98. On the basis of the report, the Rent Control Officer has issued notices to all concerned, including the petitioner-tenant. After considering the case, set up by all parties, came to the conclusion that the petitioner is occupying the premises which is covered with the provision of the U.P. Act, without any allotment order and , therefore, the vacancy has been declared and the matter was directed to come up for hearing, for which the present writ petition was filed. The petitioner raised a preliminary objection. He has also relied upon an injunction order passed by the Civil Court that the petitioner cannot be evicted except in accordance with law. The contesting respondents — landlords in reply to the objection submitted that the petitioner is living with the consent of the landlords under an agreement and have relied upon a Full Bench decision of this court Nutan Kumar v IInd Add. Distt. Judge, Banda (AIR 1994 Art. 398) In that case, this H.C. has held that with regard to the premises, which is regulated and governed with the provision of the U.P. Act, an agreement entered into between the landlord and tenant is simply a belled agreement and cannot bind upon the authorities under the UP Act. In this view of the matter, the view taken by the Rent Control Officer declaring the vacancy does not warrant any interference by this Court U/Art 226 of the Constitution. The H.C. while dismissing the present writ petition held that the present writ is otherwise covered by the finding of fact and thus calls for no interference.  |
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by K. R. Wadhwaney Plan panel for open aviation policy THE aviation scenario can wear a rosy picture if the government favourably considers Planning Commission’s recommendations, most of which are realistic. It, among several far-sighted proposals, has suggested that further liberalisation of the open sky is essential so that aviation in the country takes off in a big way. Advocating minimum restrictions, the Planning Commission suggests a virtual open policy so that more charter flights operate through this country. The more, the merrier seems to be the thinking of the commission. Many of the ills plaguing the aviation industry in this country will disappear if there is an open house for the operation of flights and fare structure. The commission has recommended that domestic private airlines should be permitted to fly on international routes. The wider the umbrella and stiffer the competition, the better will be the performance of the national carriers, Air India and Indian Airlines (IA). Air cargo sector Many foreign airlines believe that air cargo transport is as important, if not more, as passenger traffic. There are quite a few carriers, which operate combi-aircraft so that cargo upliftment keeps pace with passenger movement. Cargo, according to them, is as much money earner as passenger traffic. With a view to augmenting revenue through cargo, India, Russia, and Iran have signed an agreement for a new route for the transport of cargo from Mumbai to Bandar Abbas (Iran) and Petersberg (Russia). Airport project There is every possibility that direct flights from Jaipur to Bangkok and Kuala Lumpur may start operating soon. |
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