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| Saturday, October 28, 2000, Chandigarh, India   
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Samvat 2057: primary market holds the key Microsoft computers
hacked Losses from cyber crime touch $43b: experts Sops for housing
sector demanded Early US Green Cards
for hi-tech workers |
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Sinha wants global action to reduce petrol prices Plastic industry faces problems MTNL committee for cellular tariff Dabur India insurance
partner by Nov-end Maruti Udyog
management acts tough CLB disposes of 15,533 cases
Her bikini upsets V-C Tata to provide guard services
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Samvat 2057: primary market holds the key THE ‘Muhurat trading’ session on Thursday heralded the dawn of Samvat 2057 and bid good-bye to Samvat 2056, which left behind bitter-sweet memories. During Samvat Year 2056, the bell-weather BSE Sensex fluctuated in a manner that would have given even a yo-yo a major complex and swung from a zenith of 6100 odd points to its recent nadir of a sub-3600 points. While much has been spoken and written about the FIIs and market operators which were two major factors for the Sensex somersaults, a crucial factor that merits closer attention is the health of the primary market. The wheel seems to have turned a full circle. A year and a half ago, the IPO of Polaris Software which was very well received and its subsequent listing triggered off a rally at the bourses that gathered substantial steam thereafter and was a precursor to high profile book-building IPO’s like that of Hughes Software and HCL Technologies. The phenomenally good response to these IPO’s aided in no small measure by the ‘funding’ phenomenon triggered a major boom in the primary market which in turn further fuelled the ongoing boom in the secondary market. Suddenly, investors just could not get enough of IPO’s and while IT companies ruled the roost in both, the primary and secondary markets, there was a sudden spate of issues from companies engaged in other sectors too. One IPO that specifically comes to mind is that of Sree Rama Multi Tech, a fairly good paper packaging company whose IPO was heavily oversubscribed, partially on the erroneous assumption by investors that it was an IT company. This was a classic example of the greed factor from the time tested ‘greed and fear theory’ that is omnipresent in every money-market. The success story of TV 18’s IPO triggered off a spate of IPO’s from the media and entertainment segment and its phenomenal listing price which was 900 per cent more that in its IPO offer price, led to merchant bankers throwing caution to the winds and advising IPO issuers to price their offerings at abnormally high P/E multiples. That was really where the rot set in and the upward revision of the discovered price of Cinevista on the conclusion of the book-building portion of its IPO really proved to be the proverbial last straw on the camel’s (read as market) back. Both, Sree Rama Multi Tech and Cievista listed well below their offer price and all of a sudden, the party in the primary market was over. Historical evidence has repeatedly proven that the health of the secondary market is invariably correlated to that of the primary market, and prudent investors would have seen the writing on the wall as early as March, before the by now, infamous stock market post-budget crash of April,2000. That the markets have never really recovered thereafter is proven by the recent fate of two excellent IPO’s namely Aztec Software and IT&T which just about scraped through. Interestingly, Creative Eye whose book-built IPO had elicited a miserable response a couple of months ago prompting it to have the dubious distinction of withdrawing from the market, is now foraying back into the market, albeit with a substantially discounted price tag. Hence, it is quite evident that the key to any major market revival lies as much in the primary market as in FII inflows and operator machinations. There is a school of thought in the markets that Samvat 2057 will herald a turnaround in the fortunes of the Indian bourses. Perhaps so, but in the meanwhile keep an eye on the equity offerings in the primary market and their subsequent listing price. The first signals of a comprehensive and sustainable rally will invariably come
therefrom. |
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Losses from cyber crime touch $43b: experts BERLIN, Oct 27 (Reuters) — Top Internet experts from the world’s richest countries met to forge new approaches in the battle against growing cyber crime but acknowledged they had no solution to the problem. “Data espionage and data theft, credit card fraud, child pornography, far-right extremism and terrorists are ever more common on the Internet,” Foreign Minister Joschka Fischer told a conference of 100 government and industry experts yesterday. “Already today losses from cyber crime are 100 billion German marks ($42.9 billion) a year. And without a doubt, this is only the beginning,” he told the three-day conference of specialists from the Group of Eight (G8) industrialised nations. As an example of the threat, U.S. delegation head Michael Sussmann recalled the case of a Russian who in 1994 used his laptop to steal $10 million from Citibank. Timur Lakhonin, the head of the Russia delegation, cited a 1998 hacker attack into giant Russian gas company Gazprom as an example of the danger hackers pose to vital sectors of the economy. “Unfortunately, as the internet develops more crime will be committed,” he told Reuters. “It’s a danger for all countries.” German Interior Minister Otto Schily said the overwhelming majority of Internet crime in Germany originated from abroad. “The worldwide data networks jump over all borders, and so Internet criminals do not stop at our national boundaries,” he said. “Activity registered by Germany’s crime agency in 1999, 80 per cent had traces leading to the USA, Canada, Japan, Australia and Russia.” The experts say hackers are constantly attacking both government and private sector computer systems, sometimes with a specific aim to commit crimes, but often as a sort of intellectual test. Software that enables hackers to break into private networks is widely available over the Internet itself, and in some countries such as Russia it is openly sold at outdoor markets. German Justice Minister Herta Daeubler-Gmelin said governments should boost technology to be able to trace illegal computer activity quickly. “Today, one must be able to deal in real time. Data evaporates very fast in the system and can be hidden easily,” she said. “If the current situation remains, we would have to apply for legal assistance over international borders and wait for approval, so we can forget about catching the criminal,’’ she said. ‘’We must make it technologically possible to follow the lines across computer networks to the criminal’s PC.” Officials called for governments to agree on common laws on internet crime so criminals could be convicted wherever they are based, but the governments first have to agree how much regulation is justified. Some experts fear that too much government power to act against Internet abuse could erode personal privacy and Fischer said these views had to be taken into account. “Our vision is not a transparent person watched by a global Big Brother, or the transformation of the Net into a global police regime,” Fischer said in opening the conference. “In an information society, what is the right balance between fundamental freedoms and security?” |
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Sops for housing
sector demanded NEW DELHI, Oct 27 — The government should grant tax concession to the construction industry to bolster growth in the housing sector. The interest rates on property mortgage loans in all segments of the housing sector should not exceed 8 per cent per annum, while the repayment tenure should be in the bracket of 20 to 30 years, Assocham said. The chamber said mortgage regulations should ensure quick decisions of disbursal by banks, maximum within two to three working days. Towards this end, a Mortgage Insurance Guarantee Fund should be established by the government, which can reinsure and guarantee these disbursements as is existent in the UK and the USA. This will ensure quick disbursements, transferable mortgages for end-users and facilitate longer loan duration of 20-30 years, subject to the borrower having the ability to repay the loan, the chamber said. Money invested by developers in the housing sector should be fully tax exempt for three years. The construction and real estate business would include a uniform rate at stamp duty — currently it ranges from 6 per cent to 14 per cent in the states — proper implementation of the Rent Control Act in all states, exemption of wealth tax on urban land for developers as stock in trade to prevent double taxation and escalation of end product prices. The chambers also proposed that the concession of interest payment for construction of residential houses for self-occupation under the IT Act be increased from Rs 75,000 to Rs 1,50,000 so that it is in line with the RBI policy on priority lending. |
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Early US Green Cards
for hi-tech workers WASHINGTON, Oct 27 — A drastic reduction in the time involved in issuing “Green Cards” to foreign workers, entitling them to permanent residence in the USA, especially in case of holders of H1-B visas given to immigrant hi-tech workers, has been recommended in a report on the manpower requirements of the US information technology sector. Software professionals from India have been the major beneficiaries of the H-1B visa programme. The USA needs to train more hi-tech workers to meet the market demands, says the report, soon to be released by the National Academies of Sciences National Research Council (NRC). According to a press release on the report, the number of immigrant workers is large enough to satisfy the current market, but future growth of the information technology sector will slow down unless more highly skilled workers join the labour force. The NRC prepared the report, “Building a workforce for the information economy,” after Congress decided in early October to increase the number of H1-B visas awarded to immigrant hi-tech workers. It called for “many changes” in the H1-B visa programme and also other changes in the government’s policies on foreigners who work in the USA temporarily or permanently. In addition, it recommends that the H-1B visa should be made more “portable” so workers can easily change jobs. The government also needs to consider the impact of increasing the number of H-1B visas without streamlining the Green Card process or re-evaluating the numerical limits on these card holders. “As the U.S. economy comes to depend more heavily on information technology, the availability of skilled workers becomes increasingly important to the nation,” said committee Chairman Alan Merten, President of George Mason University. “The labour market for these workers is unquestionably tight and all sources of talent, both domestic and foreign, are needed to address this problem.”
— IANS |
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Sinha wants global action to reduce petrol prices MONTREAL, Oct 27 (PTI) — India today demanded immediate global action to reverse the surging international oil prices and early steps to implement development programmes including market access, and increased assistance to poor countries. Making an impassioned plea at a meeting of the newly constituted Group of 20 industrialised and developed nations, Finance Minister Yashwant Sinha said global community must act fast on these to ensure that benefits of globalisation percolated down, especially to the poor. G-20 encompasses all the members of Group of Eight industrialised nations and select members from Group of 24 developing countries including India. This is the second reunion of the G-20 Finance Ministers and Central Bank Governors since the group was formed in 1999. Elaborating on the programme, Sinha suggested that free market access should be available for all goods and services from developing countries including movement of personnel. Apart from increasing Official Development Assistance (ODA) from industrialised nations to developing countries, Sinha said long-term lending from World Bank to fund reforms, Infrastructure and Human Resource Development aimed at poverty reduction needed to be stepped up. Besides, International Monetary Fund should be equipped with adequate resources to deal with fiscal emergencies, he said, adding there was a need for attitudinal change to ensure that international financial institutions did not follow compartmentalised approach towards “lenders and borrowers”. The joint meeting of Finance Ministers and Central Bank Governors was also attended by RBI Governor Bimal Jalan. The Governor of US Federal Reserve Alan Greenspan, Wim Duisenberg of European Central Bank, Eddie George of Bank of England, Hayanu of Bank of Japan and Dai of Bank of China also attended the meeting. Earlier, an Indian delegation, headed by Yashwant Sinha, held bilateral talks with German Finance Minister Hank Eichel and his aides and reviewed the existing, wide-ranging relations and cooperations between the two countries. The meeting also discussed ‘harmony of approach’ for international cooperation in various fora, tax and insurance reforms and technical assistance. |
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Re sinks to a new low MUMBAI, Oct 27 (UNI) — The Indian rupee continued its slippery trend against US Greenback and fell to new life-time intra-day low of Rs 46.78/79 on heavy month-end dollar demand and thin supply, before closing at a new low of Rs 46.74/76, losing its value by 10 paise at the interbank foreign exchange (Forex) market today. The rupee had so far lost its exchange value against US dollar by Rs 3.25 (about 7.5 per cent) during the calandar year from Rs 43.49/50. |
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Plastic industry faces problems FARIDABAD, Oct 27 — Plastic Industry in Haryana which has grown up tremendously in the recent years is faced with several problems which need the immediate attention of the state government. It would help the manufacturers of the state to face the stiff competition in market at National and International level. Stating this, the General Secretary of the Haryana Plastic Industries Association (HPIA), Mr M R Chaudhary told The Tribune here today that the Association had decided to take up the issue of higher sales tax with the authorities concerned at various levels. Claiming that the rate of sales tax in Haryana on plastic products which was about 12 per cent was three times higher than what was in the neighbouring states of Delhi and Punjab was one of the main issue of the concern. He said higher sales tax had not only been coming in their way of ‘level playing field’ in matter of competition with other states but the consumers were ultimately forced to pay higher costs of various products due to this reason. Claiming that several of the units including smaller and medium ones had already shifted or had been thinking to shift to some other place because of the higher sales tax, he said the matter had been raised at various occasions before the authorities but no positive result had come so far. He said there were over 100 units in the state and majority of them has come under the banner of the HPIA which is about a year old. The Association recently held its first Annual General meeting here recently. The Assocation asked its members to be ready to face stiff competition in the field sue to entry of the multinational and introduction of the International Standards norms in order to make them eligible to enter the Export market. Some of the members of the Association alleged that a kind of Tirade had been on by certain vested interests who were propagating against the use of plastic products in life. They said it was wrong to say that use of plastic was harmful to life anyway. They said while plastic had become apart of life today any use or misuse was in the hands of the consumers. They said if the waste plastic products were disposed of properly and thrown carelessly in open there were hardly any chances of any harm to either human beings or animals. The HPIA has also demanded easing of certain rules and cooperation of the district
authorities in various programme. The Secretary of the Association claimed that the HPIA had donated liberally to provide help to the victims of natural and manmade calamities at various places in the past one year. |
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MTNL committee for cellular tariff NEW DELHI, Oct 27 (PTI) — MTNL
has constituted a 4-member internal committee to work out the tariff plan for its cellular mobile telephone services to be launched in January next year, General Manager S.S. Sirohi has been appointed head of cellular operations. “We have appointed a team comprising officials from finance, commercial and marketing departments to work out the details and they will submit the report within a month,” Mr Narendra Sharma, Chairman and Managing Director,
MTNL, told PTI. Asked whether MTNL would be offering affordable tariffs, he said the prices would be competitive and market determined while emphasising that “mtnl’s cellular services will be a common man’s phone.” “We have an official from the marketing department in the internal committee so that tariffs plan could be worked out keeping in mind the market trend,” he said but refused to give details about the committee. He also assured that the services would be introduced in January next year while pointing out that the launch has been delayed due to some technical problems like setting up of base stations at more than 140 locations in Delhi alone. |
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Dabur India insurance partner by Nov-end NEW DELHI, Oct 27 (UNI) — Dabur India Limited is likely to finalise a new joint venture partner for its proposed life insurance foray by november-end. The company has already initiated talks with a few international players in the insurance business and is likely to shortlist the partner and sign a memorandum of understanding by the end of November, a company spokesman said. This comes close on the heels of its earlier JV with Allstate International falling through. Dabur had earlier applied for a licence to enter the life insurance sector in India. But due to change in international life insurance strategy, its US partner Allstate International Insurance Holdings withdrew from the venture. “We are talking to several companies for forging another joint venture to enter the life insurance sector. We hope to finalise a partner by the end of November,’’ the spokesman said here. He also stated that Dabur was firm on entering the life insurance business and would continue with its endeavours, but refused to divulge further
details. |
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Maruti Udyog
management acts tough NEW DELHI, Oct 27 (UNI) — The management of Maruti Udyog Limited (MUL) toughened its stand on the wage-related battle with its workers’ union, refusing to withdraw the good-conduct undertaking and suspension and dismissal orders against 24 employees. However, the management has agreed to discuss a fresh pension scheme “after normalcy is restored’’ at its Gurgaon plant, Maruti Udyog Managing Director Jagdish Khattar said in a letter to the employees. Meanwhile, Maruti Udyog Employees’ Union (MUEU) General Secretary Mathew Abraham today claimed that workers of four of Maruti’s leading ancillary manufacturers have joined the wage agitation with
MUEU and gone on a two-hour tools down strike. CLB disposes of 15,533 cases NEW DELHI, Oct 27 (UNI) — The Company Law Board (CLB) disposed of 15,533 cases pertaining to investors, including individual depositors, in the first five months, till August. At the end of August, 11,933 cases were pending with the CLB, an official press note said today. |
Her bikini upsets V-C PERTH: A 53-year-old University Dean has created a stir by posing in a scanty bikini in her office after winning a bodybuilding competition. Professor Elizabeth Hatton, Dean of the Edith Cowan University’s South-West campus, in Bunbury, remained unrepentant today after a storm generated by the publication of a photograph of her in two newspapers. Wearing only a bra and pants, plus a mortarboard, Prof Hatton poses for the camera against a background of bookshelves. The photograph was published initially in The South Wetern Times, in Bunbury, a regional city. The colour shot was then run today over almost half of the front page of the West Australian, the only Perth-based daily newspaper in the state. Hatton was astonished by the fuss over the photograph, and denied she had acted unprofessionally by allowing it to be taken. University Vice-Chancellor Millicent Poole said she had complaints from staff, students and community groups. In an e-mail to staff, Poole said the professor’s pose contradicted protocol over allowing her professional position to be overshadowed by her personal life. Professor Hatton said she loved bodybuilding, which was her first attempt at any sport, but did not want to create a bad image for the university. “Initially, I just started doing it to get strong, so could move my own furniture,” she said.
— AFP Tata to provide guard services NEW
DELHI: Gone are the days when trailing an adulterous spouse or providing simple security services were the exclusive domain of private eyes. Today, we have giant global corporates who have entered this million dollar market providing exclusive services ranging from 24-hour house surveillance, fire-fighting and ferreting out pirated CDs, books, drugs or any other products. The latest group to enter this market is Central Monitoring Services India (CMSIPL), a joint venture company between Tata Honeywell and Group Securitas, which will provide subscription-based security monitoring and response service to customers across 34 Indian cities. “CMSIPL is unique in this business, as an addition to monitoring alarms generated by devices in the customers’ premises, the company will also provide a response service,” says Salil Kumar CEO of CMSIPL. “As affluence grows as a result of economic liberalisation, so does crime and traditional law keepers have their hands full. Hence the need for private security agencies,” says a top police official. However, another police officer feels that there is need for proper regulations for these mushrooming private security agencies. While agreeing with the police official that there is need to overhaul the entire security market, Matthew Neil, Divisional Managing Director, Group4 Securitas Guarding says CMSIPL, being a combination of a pioneer in electronic systems and Group4 known for its guard services, can provide total security solution. Says Kumar, our central monitoring and response service will play a major role in burglar and fire alarm protection. Trained operators will monitor the system 24 hours a day, record signals and take appropriate action. A CMSIPL team is equipped to handle all kinds of intrusion, fire and medical emergencies,” he says. CMSIPL will conduct its monitoring and response functions through central monitoring in each city. The central monitoring station will be connected to the subscriber through telephone lines and in emergency at the subscribers’ end, a master computer will be triggered which will give a print out of the subscribers location and other details like personal doctors.
— PTI |
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Atlas Cycle net inches up to 2.12 cr NEW DELHI, Oct 27 (UNI) — Atlas Cycle Industries Limited has posted a net profit of Rs 2.12 crore for the second quarter of the 2000-01 fiscal, up slightly from Rs 2.08 crore in the corresponding period last year. Net sales for the quarter stood at
RS 93.85 crore as against Rs 100.55 crore a year earlier. Other income increased to Rs 65 lakh for the quarter ended September 30, 2000, from Rs 49 lakh in the same period last year. Max India net grows 105 pc NEW DELHI, Oct 27 (PTI) —Max India has reported a 105 per cent growth in net profit at Rs 10.24 crore in the second quarter as against Rs 4.99 crore last year. Sales of the company was up by 7 per cent to Rs 35.75 crore in the quarter ended September 2000 as compared to Rs 33.43 crore. Announcing the results, Max India Chairman Analjit Singh said “our focus has been on building new business areas of healthcare, life insurance and information technology.” The company’s insurance venture — Max-New York Life Insurance Company — has recently obtained “in-principle” permission from the Insurance Regulatory and Development Authority (IRDA) for entering the sector. Otis reports lower net at 4.70 cr MUMBAI, Oct 27 (PTI) — Otis Elevator Company (India) Ltd has reported a lower net profit at Rs 4.70 crore in the third quarter ended September 30, 2000 as against Rs 5.55 crore in the same period in the previous year. The company’s net sales were up by 11 per cent to Rs 69.99 crore compared to Rs 63.01 crore in Q3 last year, as per the unaudited financial results released here today. Other income stood at Rs 1.26 crore (Rs 1.47 crore in Q3 last year). MRPL reports lower net at 63.65 cr MUMBAI, Oct 27 (PTI) — Mangalore Refinery and Petrochemicals Ltd, a joint venture of Birla Group and Hindustan Petroleum Corporation Ltd, has posted a lower net loss at Rs 63.65 crore in the second quarter ending September 30 against Rs 83.59 crore during the corresponding period last year. Net sales for the second quarter stood at Rs 948.04 crore (Rs 720.53 crore) while expenditure was Rs 924.60 crore (Rs 708.62 crore), Managing Director Ravi Kastia said. Tata Electric net spurts 7 pc MUMBAI, Oct
27 (UNI) — Tata Electric Companies (TEC), has posted a 7 per cent higher net profit of Rs 221 crore for the first half of this fiscal against Rs 207 crore in the previous H1. The company’s total revenue has increased by 32 per cent to Rs 1964 crore during the period ended September 30,2000 from Rs 1484 crore in the corresponding period of last
year. The total power sales were also moved up to 5009 million units compared with 4872 million units. |
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E-governance Domino Xerox Crompton Compubell Matiz |
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