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| Friday, February
2, 2001, Chandigarh, India   
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Supreme Court upholds stock broker fee
CHANDIGARH, Feb 1 — British business will target strategic partnership with small and medium enterprises in northern India, which is the backbone of the region’s industry. This was stated by Mr Tom Mecan, Deputy High Commissioner, who was addressing the Himachal Pradesh industrialists at Parwanoo, under the aegis of the PHDCCI.
Exports rise 20.42 pc in dollar terms Fed cuts US interest rates half a point |
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| Maruti, GM sales mount in
Jan NEW DELHI, Feb 1 — India’s largest car maker Maruti Udyog today reported a 27.5 per cent rise in domestic sales at 33,898 units in January over 26,590 cars sold in the same month last year. ‘Market borrowing good for Himachal projects’
Mahathir tired & out of touch? Not
yet Protection for mobiles Smart lock for telephones
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Supreme Court upholds stock broker fee BOMBAY, Feb 1 — India’s Supreme Court has ruled that the Securities and Exchange Board of India (SEBI) can levy a turnover-based registration fee on stock brokers, a SEBI source told Reuters on Thursday. The fee — set at 0.01 percent of a broker’s daily turnover — is intended to raise money needed to finance the operations of SEBI, a watch dog agency set up in 1992 to insure fairness in the Indian securities industry. News of the decision caused Indian stocks to fall on Thursday, reflecting concern brokerages would begin selling stocks they own directly to raise money needed to pay the fees. A large amount is already owed under the ruling, which has retroactive effect. “Approximately eight billion rupees ($172.4 million) will have to be paid by various Indian stock brokers as a result of this decision,” said Vinod Gupta, Chairman of the legal panel of the Association of National Stock Exchange Members of India (ANMI). At present some 9,000 brokers are registered with SEBI and it has collected over 550 million rupees as turnover fees since 1992, according to a SEBI source who asked not to be named. The Bombay Stock Exchange’s 30-issue Sensitive index fell to a low of 4,230.17 points, down 2.23 percent from the previous day’s close, immediately following news of the decision around midday. It subsequently pared its loss to finish at 4,286.11 points, down 0.94 percent.
NINE-YEAR BATTLE Gupta, the head of the brokers’ legal panel, said the Supreme Court decision meant that brokers had no further legal recourse in their nine-year battle to have the fee withdrawn. But he said ANMI members will meet on Saturday to review the situation, and may appeal to the government to order SEBI to retract the fee. “The decision has given SEBI the right to collect a transaction fee. However, we may approach the government and plead that the regulator not implement the judgment,” Gupta said. SEBI first proposed the fee in 1992 when it was created as a source of funding for its own operations. Brokers reacted by filing 450 petitions with various high courts around India, challenging the legal right of SEBI to impose such a charge. Eventually SEBI filed a motion to consolidate all those petitions and transfer the case to the Supreme Court. “The Court held that the fee is not merely for registration of brokers but also for performing the regulatory functions of SEBI,” a lawyer for the securities industry watchdog said in a statement explaining the decision. It gives SEBI the right to collect a turnover-based fee set at 0.01 percent of a brokerage’s daily turnover for the first five years, and an annual amount of 1,000 rupees for the next five years. No fee is to be charged after 10 years. Broker reaction to the Supreme Court decision was mixed. “The best part is that uncertainty is over,” said Ajit Ambani, a member of the Bombay Stock Exchange. He added SEBI in all fairness should waive the interest amount and allow brokers to pay the amount due in
instalments.
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UK firms eye small enterprises CHANDIGARH, Feb 1 — British business will target strategic partnership with small and medium enterprises in northern India, which is the backbone of the region’s industry. This was stated by Mr Tom Mecan, Deputy High Commissioner, who was addressing the Himachal Pradesh industrialists at Parwanoo, under the aegis of the PHDCCI. Mr Mecan said lower labour costs and environment conducive to business were major competitive advantages which made setting up of business profitable in Britain. He said for the expansion of bilateral trade business visas were being issued liberally. He, however, said delays in payment of dues by the Maharashtra Government to Enron was sending negative signals to the prospective investors in Britain. Mr Satish Bagrodia, Chairman HP Committee, PHDCCI said the two countries can get synergy benefits in several areas.
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Exports rise 20.42 pc in dollar terms NEW DELHI, Feb 1 — India’s exports during April-December 2000-2001 recorded a 20.42 per cent increase over the same period of the previous year, according to the latest trade data. Exports during the period under review were valued at $ 32266.30 million which is 20.42 per cent higher than the level of 26793.89 million during April-December 1999-2000. In rupee terms, the exports were Rs.146552.42 crore, which is 26.42 per cent higher than the value of exports during April-December 1999-2000. Exports during December 2000 were valued at $ 3599.65 million which is 17.33 per cent higher than the level of $ 3067.88 million in December, 1999. In rupee terms, the exports were Rs. 16828.21 crore, which is 26.14 per cent higher than the value of exports during December 1999. India’s imports during April-December 2000-2001 were valued at $ 38150.25 million representing a growth of 8.95 per cent over the level of imports valued at $ 35015.67 million in April-December 1999-2000. Oil imports during April-December 2000-2001 were valued at US $ 12449.65 million which is 78.23 per cent higher than oil imports valued at $ 6985.13 million in the corresponding period last year. Non-oil imports during April-December 2000-2001 were estimated at $ 25700.60 million which is 8.31 per cent lower than the level of such imports valued at $ 28030.54 million in April-December 1999-2000. Fed cuts US interest rates half a point WASHINGTON,
Feb 1 — Together with an equally large rate cut earlier this month, the widely expected move marks the powerful central bank’s most aggressive monetary easing campaign in almost a decade, showing Fed Chairman Alan Greenspan’s iron resolve to keep alive a more than 10-year-old expansion in the world’s biggest economy. Still, financial markets greeted the news with little enthusiasm, and investors — convinced the fed’s easing cycle is far from over — quickly moved on to speculate about the timing and extent of the next US rate cut. Wednesday’s action takes the bellwether fed funds overnight bank lending rate to 5.5 per cent from 6 per cent, erasing all rate increases of 2000, when the economy was still booming and the fed was trying to keep inflation under wraps. To underline its determination not to let recession fears get the upper hand, the powerful central bank also cut the discount rate — charged on direct Fed loans to commercial banks — by a half-point to 5.0 percent.
— Reuters
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NEW DELHI, Feb 1 — India’s largest car maker Maruti Udyog today reported a 27.5 per cent rise in domestic sales at 33,898 units in January over 26,590 cars sold in the same month last year. The January sales were also higher by 48.6 per cent compared to 22,799 cars sold in December 2000. Cumulative sales (April-January 2000-01) have however dropped by 14 per cent to 2.7 lakh cars over 3.1 lakh cars sold in the year-ago period. Maruti’s sales have touched 34,887 vehicles, including exports of 878 cars in the review month, a company statement said here. In the competitive ‘B’ segment, Maruti sold 10,349 cars which was 64 per cent higher than in January last year. It included 5,039 units and 3,693 units of the premium small cars ‘Zen’ and “Alto” respectively and 1,617 units of the “WagonR MAV”. The company sold 16,731 units of its bread-and butter model ‘Maruti 800’ and 5,616 ‘Omni’ vans. The mid-size car ‘Esteem’ accounted for 1,045 units while sales of premium mid-size car ‘Baleno’ stood at 157 units. Maruti also sold 111 ‘Gypsy’ multi-utility-vehicles during the month. GM sales up 176 pc General Motors India (GMI) has posted a 176.2 per cent rise in January sales at 558 cars over 202 cars in the same month last year. The January sales included 243 units of the mid-size car ‘Opel Corsa’ and 315 units of premium mid-size car ‘Opel Astra’, GMI Vice President (Corporate Affairs) P Balendran told PTI . The company had sold 202 ‘Astra’ cars in January 2000 while the Corsa’ was launched in early last year, he said. GMI, a subsidiary of US-based General Motors Corp posted a 55 per cent growth in January over 360 cars sold in December last year. Honda Siel sales drop Honda Siel Cars India has recorded a 15.2 per cent drop in January sales at 850 cars against 1,003 cars sold in the same month last year. Cumulative sales (April-January 2000-01) was, however, up by 9.5 per cent at 8,087 cars over 7,383 units in the year-ago period. The January sales were up by 17 per cent against 728 units sold in December 2000. |
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‘Market borrowing good for Himachal projects’ SHIMLA, Feb 1 — A cash-strapped state like Himachal Pradesh has no option but to go in for market borrowing to raise finances for development projects, says Mr Arun Sampat, a leading financial adviser who was instrumental in introducing the concept of “market borrowing for development” for the first time in the country in Maharashtra. Official statistics reveal that there is a price escalation of 10 per cent every year and the cost of development schemes also rises accordingly. As such if the government borrows funds from market at an interest rate ranging from 13 to 13.5 per cent, the loss to the exchequer will not be more than 3.5 per cent but at the same time the early completion of scheme will ensure generation of revenue well in advance, Mr Sampat told The Tribune, here today. He said the experiment had been a great success in Maharashtra where five irrigation development corporations were set up to implement specific irrigation projects through market borrowings. There had been no looking back since and this mode of funding had been used for constructing roads, bridges and fly-overs, all which had been completed in record time. As many as 56 fly-overs have been constructed in Mumbai alone for easing traffic congestion. The corporations set up for the purpose raised considerable amount which were not reflected in the budgetary borrowings and their debt service, both interest and principal amount were guaranteed and to be discharged by the state government. This had now become a national phenomenon and Himachal Pradesh should also follow suit. He said the financial position of the Himachal Pradesh was not as bad as of many other state. While Reserve Bank of India statistics revealed that the percentage of guarantee issued by the state was 120 per cent of its total income of Rs 8512 crore in case of Punjab and 71 per cent of the income of Rs 15635 crore in case of Andhra Pradesh. However, in the case of Himachal Pradesh it was only 50.79 per cent against an income of Rs 2234 crore. Thus, the financial institutions should not have any apprehensions about repayment of loans. Mr Sampat also advised Mr P.K. Dhumal, Chief Minister, to use his political clout with the Centre to persuade the Nabard and the Industrial Development Bank of India to re-discount the bills of contractor fraternity in the projects financed under the rural infrastructure development fund. In this manner the effective rate of interest could be reduced to 10 per cent as Nabard paid only 8 per cent to the banks for deposits in the RIDF. Thus the rate of interest would be equal to price escalation and if the schemes were completed in a year instead of two years it would be even more beneficial. The commercial banks could come to the rescue of the autonomous corporations which were engaged in the development of roads, water supply, irrigation system and other developmental projects. Once the state got sanction from the Centre for re-discounting of bills which would be drawn by contractors, accepted by the corporations and co-accepted by the state government, which would guarantee payment of interest and the principal amount. These bills should be for a period of seven years as was the case in the IDBI discounting scheme. The interest would be paid by the government every six months, Mr Sampat explained. Mr Sampat said such a scheme which got acceptance in Maharashtra, would go a long way in enabling Himachal to maintain the pace of development in the face of financial crisis. |
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Mahathir tired & out of touch? Not yet KUALA LUMPUR: Prime Minister Mahathir Mohamad, Asia’s longest serving elected leader, took issue on Thursday with a magazine that portrayed him as being tired and out of touch with the prevailing currents in modern Malaysia. An interview with Mahathir was published last month in the Hong Kong-based Asiaweek under the headline “Mahathir’s Dilemma”. The article carried a photograph with a caption “Is the Prime Minister being left behind by a new Malaysia that he helped build?”, and said he was “slumped in his chair and appeared tired and worn down by the unprecedented criticism of his rule.” The story touched off a small flutter of speculation in the foreign media about Mahathir’s durability, and whether he would see out what he has said is his last term in office, scheduled to end in 2004. The feisty 75-year-old premier, who has ruled for almost two decades, accused the magazine of playing up the tiredness that he said was natural sometimes, given his punishing schedule. “To find a picture that makes you look as if you are an idiot, is deliberately done,” Mahathir told reporters, according to the state-run Bernama news agency. “They must have taken nearly 200 photos but chose that ‘so right’ photograph,” Mahathir said. “Anybody would look tired. I work about 24 hours a day and I rest a little,” said Mahathir, who is known for his work rate and energy despite major heart surgery over 10 years ago.
— Reuters Protection for mobiles LONDON: British scientists have developed a fraud detection system for mobile phones based on the call patterns of owners, New Scientist magazine said on Wednesday. The new system, devised by the intelligent enterprise systems company SearchSpace, uses information on the numbers called, length of calls and when they are made to make behaviour profiles of users so special software can detect when something unusual occurs. “It’s like having a virtual software guardian assigned to each customer,” SearchSpace’s Jason Kingdon told the weekly magazine. By using pattern recognition software, the system can pick up strange usage and send a text message to the mobile phone to confirm the pin number to verify their identity. On a “pay-as-you-go” phone, users will be asked to increase their credit to confirm they are the rightful owners. The phone will be cut off if the users do not comply. “The software differs from existing fraud-detection systems because it analyses behaviour dynamically. By not having fixed rules, it can recognise that users might make more calls than normal on New Year’s Eve, for example, and let these through,” the magazine said. SearchSpace was spun off from the Intelligent Systems Laboratory at University College London.
— Reuters Smart lock for telephones CHANDIGARH: To check the misuse of the facility for calls made within a range of 200 km, which came into effect on January 26, a Chandigarh company, Five Star Telecommunication, has developed a “smart lock”. This pocket friendly device can be fitted in a telephone wire. Customers can generate their own four digit changeable secret code and lock or unlock the “95” facility. They can also lock all other local and STD calls. This device does not require any battery or power. The commercial production of this equipment will start from February 15, says Mr Jaswinder Singh, Director of the company.
— TNS |
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UCO Bank VRS Hero Honda IT return date Fortis hospital Aid for quake-hit |
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