Thursday, February 24, 2000,
Chandigarh, India






THE TRIBUNE SPECIALS
50 YEARS OF INDEPENDENCE

TERCENTENARY CELEBRATIONS
B U S I N E S S
With the Capitol in the background, truckers form a long line in Washington on Tuesday, during a protest against skyrocketing diesel fuel prices. More than 200 truckers participated in the protest which started in New Jersey and travelled through Delaware and Maryland before winding through Washington.
With the Capitol in the background, truckers form a long line in Washington on Tuesday, during a protest against skyrocketing diesel prices. More than 200 truckers participated in the protest which started in New Jersey and travelled through Delaware and Maryland before winding through Washington.— AP/PTI

Volatility margins on FIIs likely: SEBI
HONG KONG, Feb 23 — SEBI Chairman D.R. Mehta said today it would not be possible to bring foreign institutional investors under the existing general margin system, but hinted that volatility margins could be imposed on them in the near future.

Bajaj and LML scooter sales decline
Changing customer preferences continued to alter scooter/bike sales composition with the motorcycles segment posting a 28.4 per cent growth during April-January 1999-2000, leaving scooter sales way behind.

Hind Lever board clears stock split
MUMBAI, Feb 23 — The Board of Directors of Hindustan Lever Limited today recommended splitting of shares of Rs 10 face value into 10 shares of rupee one each and declared a final dividend of Rs 17 per share, together with the interim dividend of Rs 12, amounting to Rs 29 per share for 1999.



EARLIER STORIES
 

"Greenpeace" activists block the main entrance of the European Patent Office in Munich, Germany, on Tuesday, to protest against patents on life and genetic material. — AP/PTI

Kothari Taxshield payout
at 80 pc

NEW DELHI, Feb 23 — Asset Management Company Kothari Pioneer today reported a 268 per cent return on its open-ended equity linked saving scheme Taxshield and has recommended 80 per cent tax-free dividend.


SBI officers plan strike
CHANDIGARH, Feb 23 — The All India State Bank Officers Federation has decided to go on token strike throughout the country on March 3.

Aptech launches education portal
BANGALORE, Feb 23 — Aptech, a global education and software company, today announced the launch of its educational portal, which will offer online education courses to students of all ages and corporates.


Trophies given by Canara Bank
CHANDIGARH, Feb 23 — A business plan conference of Canara Bank, Chandigarh and Lucknow circle, was held here today which was presided over by Ms Ranjana Kumar, CMD. Top


Volatility margins on FIIs likely: SEBI
From Ameer Shahul

HONG KONG, Feb 23 — SEBI Chairman D.R. Mehta said today it would not be possible to bring foreign institutional investors (FIIs) under the existing general margin system, but hinted that volatility margins could be imposed on them in the near future.

Talking to a group of Indian journalists after meeting the top brass of foreign investment banker Jardine Fleming here, Mehta said: “The issue of bringing FIIs under the margin system was well debated by the regulator and was decided that it was not practical to bring them under the general margin system.”

However, an internal committee of SEBI has been constituted to go into the details of collecting volatility margins from FIIs, he said. Experts in the field would also be invited to give their inputs on the issue.

FIIs could not be treated on a par with Indian investors since they are not generally speculators. “But if we impose margin on them, they will ask for equal treatment with general investors and then can lead to speculation,” he added.

Currently, trades by Indian and foreign institutional investors are excluded from the various margin system. There are three margins being imposed on the brokers, namely, volatility margin, cross-exposure margin and market-to-market margins.

Volatility margin is calculated by taking the average of six weeks’ price movement in scrips and exchanges fix the margin depending on the situation.

Mehta, who has been given an extension of two more years at the helm of SEBI said that according to the latest figures all the stock exchanges together collect something between Rs 6,500 crore and Rs 7,000 crore per day as margins and this system has made the Indian stock market crash-proof.

He ruled out any chances of a market crash but added that if it all there were something, it would be very minor ones.

In the month of February alone, FIIs have made Rs 2398.8 crore net investment in equity with a gross purchase of Rs 7417 crore and gross sale of Rs 5073 crore. This is against Rs 196.6 crore in the previous month.

During the whole year of 1999, the net FII investment in India was Rs 6696 crore.

The cumulative FII investment till February 22 stood at Rs 38,234.7 crore with a contribution of Rs 2857 crore during the first two months of this year alone.

Mehta said the international investment community was so bullish on India that western journals, which generally try to downgrade India, have of late begun coming out with very positive articles.

Top Jardine Fleming officials, including its Chairman, whom he met in the morning were highly bullish on the Indian market, he said, adding, this makes one feel happy about to work for the market regulator. — PTITop



 

Bajaj and LML scooter sales decline

Changing customer preferences continued to alter scooter/bike sales composition with the motorcycles segment posting a 28.4 per cent growth during April-January 1999-2000, leaving scooter sales way behind.

The poor performance by the sector was mainly due to negative growth registered by scooter majors Bajaj Auto and LML. However, TVS Suzuki and Kinetic Motor posted impressive sales despite adverse market conditions.

Bajaj’s scooter sales declined by 9.1 per cent to 4.72 lakh units in April-January of the current financial year while LML sales slipped by 13.1 per cent from 2.75 lakh units in the same period of 1998-99.

TVS Suzuki posted an impressive 27 per cent growth by selling 1.04 lakh scooters during the first 10 months of the current fiscal against 0.82 lakh units in the same period of the last financial year.

In the motorcycles segment, Bajaj Auto topped the growth chart by clocking a 133 per cent jump in sales at 3.35 lakh units during the reference period.

Hero Honda recorded a 40 per cent growth in sales to 6.09 lakh units during April-January of the current fiscal against 4.35 lakh units sold in the corresponding period last year.

Escorts Yamaha Motor also witnessed a 40 per cent rise in its sales to 1.90 lakh bikes from 1.38 lakh in the first 10 months of the last fiscal.

Motorcycle sales of TVS Suzuki went up by 22.8 per cent to 2.67 lakh units from 2.17 lakh units sold in the comparable period last year.

Exports skid: Exports of made-in-India passenger cars hit a major stonewall in the first 10 months of 1999-2000 with despatches skidding 14.7 per cent even as sales in the domestic market shot up 25 per cent during the period.

Maruti’s multi-utility vehicle (MUV) sales in the foreign markets recorded a greater fall, dipping 28 per cent over the previous year, latest figures released by the Society of Indian Automobile Manufacturers (SIAM) reveal.

The company exported 14,618 passenger car units and 346 MUVs during the April-January period as against 17,155 and 483 units respectively a year ago. MUL had sold 308,440 units of passenger cars and 5507 MUVs in the domestic market during the period.

Telco passenger car sales in the foreign markets skid off tracks to post an 81 per cent drop in despatches at a mere 246 units for the period as against 1,299 units a year ago.

Daewoo Motors India, Hyundai Motors India and Honda Siel cars made forays into the export markets during the period. Daewoo led the pack with total shipments of 895 units followed by Honda Siel at 14 units and Hyundai at 10 units.

‘Best value car’: Daewoo Motor Corporation’s 796cc Matiz has bagged the first BBC Top Gear Best Value Car Award 2000.

BBC’s international magazine Top Gear had selected 11 cars from across the globe for the award, including Lexus IS 200, Subaru Impreza Turbo, Seat Arosa, Jaguar s-type and Jeep Grand Cherokee. The 11-member evaluation committee then declared Matiz the best value car, Mr B.S. Min, Deputy Managing Director (Corporate Communications), Daewoo Motors India Limited, told UNI.

Siena costs 4.4 lakh: Ind Auto Limited on Wednesday announced a stripped down base version of its mid-size car Siena, sporting a price tag of Rs 4.42 lakh (ex-factory Mumbai) and Rs 4.92 lakh (ex-showroom in Delhi).

The new version — Siena ED — comes without a power steering, stereo system and polyurethane bumpers.

Siena ED comes close on the heels of Fiat Siena EL PS, unveiled at the recently-held auto expo. The ED version is powered by a 1242cc, MPFI engine, which develops 72BHP at 6000RPM. — agenciesTop




 

Hind Lever board clears stock split
To pay 290 per cent

MUMBAI, Feb 23 (PTI) — The Board of Directors of Hindustan Lever Limited (HLL) today recommended splitting of shares of Rs 10 face value into 10 shares of rupee one each and declared a final dividend of Rs 17 per share, together with the interim dividend of Rs 12, amounting to Rs 29 per share for 1999.

The fmcg major registered a 32.8 per cent growth in its net profit from Rs 806 crore in 1998 to Rs 1070 crore after exceptional items.

The stock split in the ratio of 10:1 is to enable small retail investors to participate in the equity capital of the company as the liquidity of the shares improves. The final dividend and stock split is subject to shareholders approval at the annual general meeting to be held on April 24.

The turnover grew by 7 per cent to Rs 10,142.49 crore against Rs 9,482 crore in 1998.

Announcing the results after the board meeting, HLL Chairman K. Dadiseth, who takes over as Director of Unilever in the UK from May 1, said the domestic home and personal care business recorded good sales growth in a market which witnessed significant consumer downgrading.

The Finance Director D. Sundaram announced a number of e-commerce initiatives that would bring e-business to the heart of the company. In the supply chain the aim is to link in Phase I with some 3000 stockists, 30,000 retailers and 100 suppliers spread over 1000 locations.Top



 

Kothari Taxshield payout at 80 pc

NEW DELHI, Feb 23 (PTI) — Asset Management Company Kothari Pioneer today reported a 268 per cent return on its open-ended equity linked saving scheme Taxshield and has recommended 80 per cent tax-free dividend.

Kothari Pioneer Taxshield has delivered a 268 per cent absolute return in the 10 months since its inception in April 1999, based on February 21 NAV of Rs 36.88, a company statement said here today.

All investments in Taxshield before the record date of March 31, 2000 will be eligible for dividend.the statement said adding that investment of up to Rs 10,000 will also be eligible for 20 per cent income tax rebate under Section 88 of the Income Tax Act.

Prudential ICICI: The Rs 4630 crore Prudential ICICI Asset Management Company has declared a 6.25 per cent maiden semi-annual tax-free dividend on its open ended Gilt Fund under the Investment Plan for the half year ended February 17, 2000.

The company has also declared the second quarterly tax free dividend of 2.90 per cent on the same fund under the Treasury Plan.

As on February 22, 2000, NAV of investment plan (dividend option) stands at Rs 10.3438 while that of treasury plan (dividend option) was Rs 10.2625. Top



 

SBI officers plan strike on March 3
Tribune News Service

CHANDIGARH, Feb 23 — The All India State Bank Officers Federation has decided to go on token strike throughout the country on March 3.

The demands include promotion policy for officers, compassionate appointment of dependents of officers who die in service, restoration of petrol reimbursement to pre-gulf level, compensation to officers working on Sundays and holidays, review of disciplinary procedures, post allowance etc.

A demonstration was held today by the officers in the L.H.O. building of the bank.Top



 

Aptech launches education portal

BANGALORE, Feb 23 (PTI) — Aptech, a global education and software company, today announced the launch of its educational portal, which will offer online education courses to students of all ages and corporates.

Announcing the launch of www.onlinevarsity.com, Aptech Executive Director Pramod Khera told reporters that this portal would function as a virtual campus on the Internet.

SSI GDR issue: CHENNAI: SSI Limited will raise $100 million by issuing 10 million Global Depositary Receipts (GDR) at $10 each.

The proceeds of this amount will be used to fund the company’s joint venture project with the National Association of Securities Dealers (NASD), the parent company of NASDAQ Stock Exchange, SSI Chairman K. Suresh told reporters here after the conclusion of an extraordinary general meeting where the shareholders approved the proposal to raise GDR.

The GDR will be listed in the London Stock Exchange. Top



 

Trophies given by Canara Bank
Tribune News Service

CHANDIGARH, Feb 23 — A business plan conference of Canara Bank, Chandigarh and Lucknow circle, was held here today which was presided over by Ms Ranjana Kumar, CMD.

Inaugurating the conference Ms Ranjana Kumar emphasised the need to increase retail lending, lending to SSIs and other priority segments.

Mr K. Raghunath, General Manager, Chandigarh circle, and Mr R. Murali Mohan Rao, General Manager, Lucknow circle, highlighted achievements of their respective circles.

Trophies were presented to the R.O. Jalandhar for being the best Regional Office and BNC, Ludhiana, for best VLB for 98-99. The R.O. Karnal was awarded the trophy for timely submission of balance sheet 98-99.

Mr N. Kanthakumar, General Manager, Mr G. Narayanamoorthy, DGM, and Mr D.K. Sahoo, DGM were also present.Top



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BIZ BRIEFS

Bullion
Gold Std. Rs 4760
Gold 22-Ct Rs 4610
Silver Ready Rs 8050
Silver delivery Rs 8060

Cyber trading
NEW DELHI, Feb 23 (TNS) — Trade your goods in cyberspace even if you do not have a website. Register with www.sellpurchase.com, says Mr Rajiv Jain, Director of the site company.

NetSpace Com
NEW DELHI, Feb 23 (TNS) — NetSpace Communications has entered into a strategic alliance with IT major Cincom System of the U.S.A. NetSpace will market and support entire range of $ 250 million Cincom’s advanced control and manage software products hosted on large servers like ERP and encompass in the areas of CRM, a release said.

PSEB levy
LUDHIANA, Feb 23 (TNS) — The Punjab Chamber of Industrial and Commercial Undertakings (CICU) has opposed the move of the PSEB to impose a levy at the rate of 1.05 paise per unit on the production of electricity by entrepreneurs and traders through private generators from April 1, 1995.
Top




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