The Tribune, Chandigarh, India

	ULIP Row: SC for super regulator Notice to Centre, 14 insurance companies R Sedhuraman/Legal Correspondent New Delhi, April 30 Throwing up a suggestion for setting up a super regulator, the Supreme Court today issued notice to the Centre and 14 life insurance companies on a petition by market regulator Securities and Exchange Board of India (SEBI), seeking transfer to SC all cases pertaining to the jurisdiction over unit-linked insurance products (ULIPs). A Bench headed by Justice SH Kapadia also sought the response of some PIL litigants who have approached various high courts, seeking clarification over the jurisdiction of ULIPs - SEBI or Insurance Development Regulatory Authority (IRDA). Part of the ULIP premiums is invested in the stock market. The dispute has arisen following claims of SEBI and IRDA, each asserting that ULIP was under its jurisdiction. The SEBI slapped a ban on 14 life insurers, including the companies of SBI and Reliance Group (Anil Ambani), restraining them from raising money under the ULIP schemes for their failure to register themselves with the Board. IRDA, however, advised these companies to ignore the ban and carry on with their business. At the intervention of the Finance Ministry, SEBI subsequently relented but insisted that the insurance companies could not issue further policies under ULIP pending a final resolution on the jurisdiction. Posting the matter for further hearing on July 8, the Bench initially felt that the issue should have been decided by the Bombay High Court as SEBI and most of the insurance companies, including LIC, were headquartered there. When Attorney-General GE Vahanvati mentioned the matter before the Bench, the court said since the two regulators were fighting “why not appoint a super regulator.” PTI adds: Amid the conflicting orders, the Finance Ministry brokered peace between the two regulators and asked them to jointly seek legally binding order from an “appropriate” court over jurisdiction on ULIPs. Till then, status quo ante was restored. However, when contacted IRDA chairman J Harinarayan said the PILs do not deal with the issues relating to dispute about jurisdiction, but about mis-selling. “SEBI and our problem is of jurisdiction. Does SEBI have right to regulate ULIPs? That is the question. That is not the question in the PIL. PIL is another matter.” Following the government directive of status quo, SEBI allowed insurers to raise money from existing ULIPs, but asked them not to issue fresh ULIPs after April 9, the date when it issued the order banning 14 life insurance companies from raising funds through ULIPs. ULIPs are insurance products but part of the premium raised through them is invested in capital market. While SEBI regulates the capital market, the working of the insurance companies is overseen by IRDA.
	SBI extends teaser rate scheme till June 30 Mumbai, April 30 Country's largest lender SBI has extended its special concessional home loan rate scheme, popularly known as teaser rates, by two months to June 30. The bank decided to extend the scheme, which was to expire today, since it is very popular with customers and because the bank's liquidity is good, an SBI official told PTI on the condition of anonymity. "This scheme is very popular with customers. As far as liquidity is good, we can continue with this scheme," the official said. While the rates for the first three years have been retained, the rate for fourth year onwards has been slightly reduced. For the first year, home loan would carry 8 per cent interest rate and for the second and third years it would attract 9 per cent rate. From the fourth year onwards, home loans up to Rs 50 lakh will be charged 9.25 per cent interest rate while higher loans will carry 9.75 per cent interest rate. Currently, the scheme carries 10 per cent interest rate from the fourth year onwards. SBI's teaser rates scheme was to originally expire on March 31 this year, but was later extended by a month to April 30. Teaser rate scheme provides concessional home loans to borrowers in the initial years, after which interest rates increases to align with prevailing market rates. SBI's decision comes even as the government said that these schemes are a matter of regulatory concern and may impact financial stability of lenders. — PTI
	ICICI, HDFC Bank not Indian-owned: Govt New Delhi, April 30 The government today said ICICI Bank and HDFC Bank cannot be called Indian-owned banks, setting at rest the debate generated over the nationality of the top two private sector lenders. "At best, the two can be called as Indian-controlled banks," DIPP Secretary RP Singh said today when asked about the government's stand in the wake of the two seeking clarifications on the matter. "ICICI Bank managing director and CEO Chanda Kochhar met me day before yesterday, she has discussed (the issue) with me," he said. ICICI Bank had maintained that it continues to be an Indian bank as its management and Board was Indian. However, both ICICI Bank and HDFC Bank have over 74 per cent foreign holding, including that of foreign banks and overseas institutional investors. "Banks will be covered in one paper which we are trying to bring out on the financial aspects totally... It will cover banks also," he said referring to the six discussion papers on FDI that the Department of Industrial Policy and Promotion is planning to bring out soon. "You know the definition of what is a company controlled by Indians and what is the definition of a company owned by Indians," Singh said. Going by the definition, they are certainly a bank which is not owned by Indians, because equity of at least 74 per cent or around 74 per cent is from outside, he pointed out, buttressing the government's stand. But they can be construed as banks controlled by Indians if the majority of directors are Indians and right to directorship is with Indians. So depending upon that they are construed as banks controlled by India, but they can certainly not be called banks owned by Indians. — PTI
	Nokia offers free movies, unlimited music on handsets Prabhjot Singh Tribune News Service Pune, April 30 It is not only 4 million tracks from across 19 genres, including rock, Bollywood, soft, indipop, Indian classical, devotional, ghazals alone but also in Punjabi, Bengali, Gujarati, Tamil, Malayalee and other languages that will come free with your new handset. In fact you may also start getting new digital films on your handsets soon. Rakesh Om Parkash Mehra of Rang De Basanti fame, for example, is planning a digital film “51” that will be a conglomeration of 51 short stories on how the world culture and Indian culture are getting blended thanks to technology. Rakesh Om Parkash Mehra, who was here at a summit organised by global handset leader Nokia, said he had been contemplating to enter the new media since a longtime and the idea of producing 51 has concretised. “You never know you may start getting each of these 51 stories on your mobile handset once a week,” he said while announcing the launch of Ovi unlimited music that would give the buyers of selected handsets access to 4 million songs free of cost. “There will be no additional cost of the music content provided,” says Elizabeth Schimel, Global Head of Music and Connected Entertainment. Handset owners will be allowed to keep the downloaded music. D Shivakumar, vice-president and managing director, Nokia India, said “the idea of giving unlimited access is totally an Indian innovation by Nokia. Even those who already have the specified handsets can come for replacements of their old sets with the new enabled sets.” While dwelling upon the changing role of handsets, D. Shivakumar said handsets would now have increasing use for commerce, including banking.
	New inflation series by July New Delhi, April 30 The government today said it plans to come out with the new inflation series, which will give a better reflection of price movements in the country, by July. "We plan to bring out the new WPI series in June or July. It will have over 600 items from the current 435 items," RP Singh, Secretary with the Department of Industrial Policy and Promotion (DIPP), told reporters on the sidelines of a function here. He said the whole basket of items would be adjusted, depending on the turnover of commodities and "the trial is on." The wholesale price-based inflation stands at 9.9 per cent in March, but many analysts criticise the compilation of data, saying it includes several items that are no longer in vogue. Earlier, officials had said that items such as typewriters and VCRs would be moving out making way for mobile phones and LCD TVs in the new inflation series. The new index, with 2004-05 as the base year, will have 250 new items and is expected to provide a more realistic picture of price rise and its impact on people, officials had said. At present, the base year for wholesale price-based inflation is 1993-94. Most of the new additions would be in the manufacturing products category while primary items, that includes foodgrain and milk, would remain unchanged, officials had said. — PTI
	ATF prices hiked New Delhi, April 30 State-owend oil retailers today raised jet fuel, or ATF prices, by Rs 273 per kilolitre, making it the fifth straight increase since March. Aviation Turbine Fuel (ATF) rates in Delhi have been raised by Rs 272.77, or 0.6 per cent, to Rs 42,452.02 per kilolitre with effect from midnight tonight, an official of the Indian Oil Corp, the nation's largest oil firm, said. Jet fuel constitutes roughly 40 per cent of the operating cost of an airline and today's increase in fuel rates would put a nominal, but extra burden on Indian carriers. It was, however, not immediately clear if airlines will pass this burden to passengers. ATF prices have been raised by 11.7 per cent in five instalments since March 1. Jet fuel price in Delhi was Rs 37,982.22 per kl in February. Today's hike comes on the back of a 3.2 per cent increase on April 16 when prices in Delhi were raised to Rs 42,179.25 per kl. — PTI
	21 companies keen on Gidderbaha power project Kulwinder Sandhu Tribune News Service Moga, April 30 As many as 21 companies have expressed their interest in setting up the 2,640 MW Gidderbaha Thermal Power Project before the State Power Corporation, a successor entity of the Punjab State Electricity Board, on Thursday. The companies who have come forward for this project include Sterlite Industries Private Ltd, Larson and Turbo Limited, LANCO, Pipavav Energy Private Ltd, Mercados Energy Markets India Private Limited, Amco Ltd, CLP Power India Limited, IVRCL Infrastructure and Projects Ltd, IL and FS Energy Development Ltd, KSS Infrastructure India Private Ltd, Jaiparkash Associates Ltd, GVK Industries Ltd, TATA Power Company Ltd, Jindal Power Ltd, Mining and Industries Ltd, ABB Ltd, DSC Limited and India Bulls Power Limited. The proposed Gidderbaha Thermal Power Project is located at Ghagga village, Theri and Babania in an area of 2,432 acres near Gidderbaha town in the Muktsar district of the state and the total cost of this project is estimated at a cost of Rs 13,000 crore. A senior official of the power corporation revealed that in the expression of interest the representatives of various prospective bidders and senior officials of the state government participated in the conference, which was chaired by Anurag Aggarwal chairman of managing committee of Punjab State Power Corporation Limited. PFC Consulting Limited, a wholly owned subsidiary of Power Finance Corporation Ltd, New Delhi, is the consultant for this project and was represented by its Chief Executive Officer Dinesh Vij. The bidders would be selected through tariff-based International Competitive Bidding. The selected developer would be allowed to sell 30 per cent of the power from the project as merchant power. The new provisions would be put in the bidding documents for this project subject to approval of the government. It may be mentioned that this project was held during the past few months due to lack of clarity on coal linkage. With the Central Electricity Authority (CEA) recently sending recommendations for coal linkage to the ministry of power, the project is expected to gather pace. Earlier Section 4 notification under Land Acquisition Act was issued for approximately 2,300 acre but Section 6 notification was not issued due to lack of clarity of coal linkage. Now, since, the CEA has recommended for coal linkage, GPL Board has again initiated actions for acquiring land for the project.
	Corporate Governance Voluntary norms may be mandatory Tribune News Service Chandigarh, April 30 Voluntary guidelines in corporate governance may soon become mandatory, to ensure that corporates act in more transparent manner. This was stated by secretary, Ministry of Corporate Affairs, R Bandopadhyay, while speaking at the inaugural session of national conference of practising company secretaries here. He, however, said a final decision would be taken only after getting views of all stakeholders. “We can enact a code with regards to voluntary guidelines on corporate governance,” he said, adding that they were in the process of collecting views of all stakeholders. These guidelines include demarcation of roles of chairman and managing director, remuneration of directors, secretarial audit, constitution of mechanism for whistle blowing, audit rotation etc. “In fact, we have issued voluntary guidelines on corporate governance last December with a view to improve the corporate governance standards and practises, after the Satyam scam,” he said. Bandyopadhyay said the Companies Bill, 2009, may be tabled either in the monsoon or winter session of the Parliament. “Currently, the Bill is with the standing committee, who are also discussing it with all stakeholders,” he said. He said a Cabinet note had been prepared to bring in changes in the Acts of professional bodies like ICAI, ICWAI and ICSI to fine-tune their laws with LLPs.