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May 15, 2001, Chandigarh, India   
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SEBI bans carryforward
India bags Malaysian rail project
Prices of 23 drugs revised downwards |
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BSNL estimates hefty revenue loss HPCL arm to build
Bathinda refinery Package for khadi industries unveiled Oyzterbay opens outlet in city JPC begins probe into stock scam Indya.com official website for KBC ANALYST’S DIARY
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SEBI bans carryforward Mumbai, May 14 The decision, which came after a three and a half hour-long board meeting, spells death for the age old badla system, which the market has been resisting. All deferral products, namely automated lending and borrowing mechanism (ALBM), borrowing and lending of securities scheme (BLESS), modified carryforward system (MCFs) and continuous net system (CNS), as proposed by the J.R. Verma committee on deferral products would be discontinued from July 2. Sebi Chairman D.R. Mehta told newsmen that the board has granted permission to introduce options on individual stocks from that date and consider bringing in other derivative products like futures later. Accordingly, all outstanding deferred
positions in the current settlement would have to be compulsorily liquidated by September 3, 2001. The board also approved a code for insider trading based on recommendations of the SEBI group on insider trading. Mehta said any position taken on or before May 15 (tomorrow) would have to be compulsorily unwound by July 2. The rolling settlement scheme, which the Finance Minister Yashwant Sinha had announced in Parliament, would be applicable to 414 scrips as against the present 200 scrips. The rest of the scrips would be brought under the scheme from January 2, 2002, he said adding that during this interim period these scrips would be traded on uniform settlement (Monday-Friday) cycle on all exchanges from July 2. Mehta said the circuit filters (price bands) would cease to exist on individual stocks from July 2 in the scheme and SBI would shortly announce a system for market-wide index-based circuit breakers. The board discussed in detail the implications of ban on deferral products, based on the recommendations of full time member J. R Verma, at the meeting which was attended by Rakesh Mohan, advisor to the Finance Minister, Reserve Bank of India Deputy Governor S. P. Talwar. Public nominee and Aditya Birla Group Chairman Kumarmangalam Birla and Department of Company Affairs Secretary Govindarajan did not attend the meeting. SEBI Executive Director L. K. Singhvi said capital market regulator would notify the insider trading code in a span of two to three weeks and corporates and stock exchanges would be given three months time to implement the code. |
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India bags Malaysian rail project Kuala Lumpur, May 14 A formal agreement between the two countries will be signed tomorrow. It will cover communications, satellite launches and training of manpower in space technology. India and Malaysia already enjoy close political and economic ties. The cooperation in the field of space technology, announced on the second day today of the four-day visit of the Prime Minister, Mr Atal Behari Vajpayee, to Malaysia underlines warm and friendly relations between the two countries. The same warmth and cordiality marked the one-to-one meeting between Mr Vajpayee and his Malaysian counterpart, Dr Mahathir Mohamad, this morning. The issues which figured in these talks included the situation in South Asia and the recent violence against the people of Indian origin in Malaysia. As many as seven government-to-government agreements and MoUs have been signed or are in the process of being signed between India and Malaysia. The Prime Minister, who is accompanied by the Minister for Information Technology, Mr Pramod Mahajan and the Minister of State for Industry, Mr Omar Abdullah, is also leading a 75-member delegation of industrialists and businessmen drawn from the CII and the FICCI. This is stated to be one of the largest delegation of Indian industrialists led by a Prime Minister to any country in recent years. One of the most important MoUs to be signed between the two countries relates to the award of a $1.5 billion contract for the construction of a 350-km double railway track to IRCON International Ltd., a Government of India Railway
Construction Company. It will utilise the proceeds of palm oil on counter-trade basis. The second agreement between the Government of Malaysia and the Government of India on exemption of the visa requirement for holders of diplomatic and official passports, signed by the Malaysian Foreign Minister, Mr Syed Hamid Albar,and the Indian Minister for Information Technology, Mr Pramod Mahajan, will enable the citizens of both countries, who are in possession of valid diplomatic or official passport, to enter into, exit from and transit through each other’s country without visas. As per the agreement, holders of the diplomatic/official passport of either country shall be allowed to stay in the territory of other country for a period of ninety days. This period may be extended by the relevant authorities of each country. The third agreement provides for the avoidance of double taxation and the prevention of fiscal evasion with respect to taxes on
income. The first such agreement between Malaysia and India was signed in 1976 based on the then existing income tax laws. Since then the laws have changed substantially in both countries necessitating major upgradation of the agreement earlier signed. An MoU provides for mutual cooperation relating to investment, construction, privatisation and management of seaports in India. Yet another important MoU has been signed on the cooperation in Information Technology and Services. This will cover electronic commerce and multimedia development, electronic government, information security and cyber crime, human resource development, research design and development, exploring third country markets and any other area of cooperation as may be mutually agreed upon. Yet another MoU covers exchange of experts in the field of civil service, personnel management and public administration, establishment of cooperation between civil service training institutes of the two countries, and exchange of relevant published
materials. Another MoU covers Securities Commission of Malaysia and SEBI in India. |
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Prices of 23 drugs revised downwards New Delhi, May 14 The authority has also fixed for the first time prices of 25 other formulations. In the case of 23 packs, prices have been revised downward in the range of 0.73 per cent to 68 per cent. The new prices would effective within 15 days from the date of notification in the official gazette or the receipt of the order of the NPPA in this behalf. The revision was necessitated due to downward revision in the prices of scheduled bulk drugs like Ranitidine, Benzathine Penicillin G. Sodium Penicillin G and Procaine Penicillin G. The 23 packs, prices of 16 packs were revised on suo motu basis according to the provisions of the DPCO, 1995 as the manufacturers, though required to apply for price revision, did not do so. Of the total 48 formulation packs, ceiling prices (exclusive of excise duty and local taxes) have been fixed in respect of 26 packs. The non-ceiling prices (inclusive of excise duty but exclusive of local taxes) have been fixed in respect of the remaining 22 packs. The formulations for which prices have been revised or fixed are based on bulk drugs Levodopa and Benzerazide used in the treatment of Epilepsy, Insulins used in the treatment of diabetes, Aspirin used in the treatment of Cardiovascular diseases and as Analgesic, Ranitidine used in the cure of Ulcer, Penicillin formulations used as anti-biotic, and multi-vitamins in oral, liquids and injection forms, according to an official release here.
PTI |
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BSNL estimates hefty revenue loss New Delhi, May 14 Telecom Dispute Settlement and Appellate Tribunal (TDSAT) today adjourned the hearing on the case while admitting applications of Escotel and Fascel directing BSNL to file a counter-affidavit. According to sources in BSNL, the corporation was losing substantial revenues on account of non-adherence to the defined National Routing Plan. BSNL sources said that the corporation was also losing revenues from basic service providers on account of similar arrangements. For the Madhya Pradesh circle alone, the losses to BSNL were to the tune of upto Rs 120 crore for flouting the disciplinary norms by basic service provider Bharti Enterprises, the corporation had said in its presentation to the Telecom Regulatory Authority of India (TRAI). The TRAI had issued a determination on January 8, 2001, on PoI and cellular operators had challenged the TRAI norms with the Telecom Dispute Settlement and Appellate Tribunal. The Tribunal had stayed the TRAI determination following the case by Cellular Operators Association of India (COAI). During the previous hearing on April 4 this year, TDSAT had granted COAI additional time of three weeks to file reply on Points of Interconnect case. The tribunal had also directed BSNL to restore the status quo ante in Dehradun, Barelli, Saharanpur and Muzaffarnagar, after COAI pointed out that PoI remained be restored in these four areas in compliance with TDSAT’s March 15 directive. On March 15, TDSAT asked BSNL to restore status quo ante on points of interconnect offered to cellular operators.
PTI |
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HPCL arm to build
Bathinda refinery Chandigarh, May 14 An information to this effect has been passed on to the Punjab Government recently by HPCL. In absence of the joint venture partner, HPCL will spend money from its own sources through its subsidiary. The Centre has already approved the project proposal of HPCL. The Centre had sanctioned Rs 300 crore for taking up the initial work at the project last year. At a recent meeting, the progress of the project was reviewed by officials of the Punjab Government and HPCL . "The state government is satisfied with the way the project is progressing. Almost all initial formalities, including the no objection certificates from the Union Ministries concerned, have been cleared", said Mr Ramesh Inder Singh, Principal Secretary, Industries, Punjab. Among the senior officers of HPCL who attended the meeting were Mr D.S. Mathur, Project Incharge, M.A. Tankiwala, Executive Director of the project and Mr R.K. Madan, Coordinator of the project. There are three major components of the Rs 10,000 crore refinery part of the project. First is a mooring part in the sea where ships carrying crude oil from abroad will anchor for the transfer of raw material through a pipeline to storage tanks set up near the port. Second is a pipeline from Kandla to the refinery for transferring the crude oil to refinery from the tanks. Third is a refinery plant at Phulo-Khari near Bathinda. However, the total unrevised cost of the project which includes a captive power plant of 140 MW is nearly Rs 13,000 crore. Mr Ramesh Inder Singh said the work was going on all three major components of the project at a required pace. Asked about when the plant would start coming up at the site, he said the HPCL officials had said the design of the plant prepared by Engineers India Limited has been approved by the
authorities concerned. On the basis of the design the tenders for the machinery had been floated in the international and national market. The HPCL authorities said the plant would start coming up in December this year. The foundation stone of the project was laid by Atal Behari Vajpayee on November 13, 1998, and then it was announced the project would be completed within 48 months. Since then, 29 months have passed. The administrative block has started coming up. The work on the widening of the road from Rama Mandi to Dabwali was near completion. It would provide a direct link to the refinery to Delhi via Dabwali national highway. The work to widen the link roads near the site is also in progress. A special water channel to carry water to the refinery is also under construction. |
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Package for khadi industries unveiled New Delhi, May 14 Under the package, khadi is to be designated a heritage product, workers in the sector are to be provided insurance cover and it would get market development assistance. Announcing the package, Minister of State for Small Scale Industry Vasundhara Raje said the package includes a budgetary support of Rs 390 crore and finance from financial institutions to the tune of Rs 825 crore. The package follows the recommendations of a committee set up under the Chairmanship of Mr K.C.Pant. The package was cleared by Mr Atal Behari Vajpayee. The Minister said the package was part of the government’s endeavour to further expand the role of the sector in the national economy and provide employment in the rural areas. Under the scheme to rejuvenate the KVIC, plans are afoot to make the organisation leaner. Bogus units are to be closed and only those in operations would be retained. Under the package, khadi producers would have the option to sell their products under the existing rebate scheme or move over to the Market Development Assistance, which would be 20 per cent of the annual turnover. To improve the quality of the khadi products, they would be certified through labs accreditated by the National Accreditation Board for Labs. Mrs Raje also indicated that the marketing strategy for the sector would be made more aggressive and efforts would be made to take it to the elite crowd too. Luxury hotel chains would be roped in to promote the products. Top designers would be associated with packaging. “We have recently roped in the Hyatt to use our khadi brand of herbal
cosmetics, honey, organic foods and essential oils,” she said. |
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Oyzterbay opens outlet in city Chandigarh, May 14 While talking to newspersons here Mr Vasant Nangia, Chief Executive Officer, said the company plans to open as many as 50 outlets in the country by the end of next year. The company launched a set of over 1,050 contemporary and classic designs categorised in four ranges — Neptune, Atlantis, Coral Reef and Mermaid— which have been priced between Rs 500 and Rs 5,000. The jewellery items being offered by the company include 24 and 22 karat pure gold delicate jewellery, natural gemstones and sterling silver designs. |
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JPC begins probe into stock scam New Delhi, May 14 The closed-door meeting is understood to have taken stock of the situation and deliberated on how to go about the enquiry. The 30-member JPC, set up by Parliament on April 26, would probe the manipulations, insider trading and the Pay Order fraud that swung stock market indices violently. The role of cooperative banks and the access to public money by stock market operators would also figure in the enquiry. Sources said the JPC would go for field surveys in Mumbai, Kolkata and other places to get to the bottom of the matter. Finance Ministry officials, SEBI officials and stock market experts are also expected to brief the MPs. Almost all the members attended the meeting today. |
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Indya.com official website for KBC New Delhi, May 14 “We are very excited about being the official website for Star’s KBC. Apart from giving our users online access to the most amazing gameshow India has ever seen, KBC on indya.com adds to the compelling online user experience through loads of exciting information and interactive applications,” Vice President (Content & Services) Arun Katiyar said here. The address for accessing KBC information is ‘kbc.indya.com’ which will have sections including how to get on the show, its rules and regulations, besides myths and facts surrounding this show.
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ANALYST’S DIARY LAST week I had the pleasure of running into the very affable Mr Jagdish Saxena, who is the Managing Director of Elder Pharmaceuticals at the airport. Formerly a pilot, Mr Saxena has his feet firmly on ‘terra firma’ notwithstanding his success story as an entrepreneur. As the head of a team that tracks Indian pharma companies closely, I could not help but enquire about the latest developments at Elder Pharma. It was with a sense of great professional pride that Mr Saxena told me about the company’s recent tie-up with the Hartmann group and its joint venture with Stiefel Laboratories. The Hartmann group of Germany is one of the leading European companies in the surgical and hygiene products segment. Hartmann’s tie-up with Elder Pharmaceuticals in India will focus on providing wound management and incontinence related products. With this, the company will now be able to offer an entire bouquet of products in the wound-care management range. Mr Saxena opined that it was a matter of great pride that the Hartmann group, after considering a lot of other partners in the country, opted for Elder. Stiefel Laboratories, on the other hand is the largest independent pharmaceutical company, specialising in dermatology. Again, Mr Saxena was rightfully proud of the fact that for the first time in the 150-year history of Stiefel, they are opening a new country market using a joint venture company, and that involved Elder Pharmaceuticals, which will partner the organisation in its manufacturing and marketing efforts. Just then, Mr Saxena’s flight was announced and he bid good-bye and left promising to keep me posted of the developments at Elder Pharma. Such meetings only reinforce my belief that Indian promoters and their companies will not only survive but also thrive in the post-2004 scenario, contrary to the doomsday predictions that generally float around. Later in the week, I met Mr S.M. Arora, the Managing Director of Melstar Information Technologies Limited. Now, Mr Arora, an ex-IBM man who has worked abroad extensively has immense and in-depth knowledge about the trends in the IT segment and his disarming smile when I raised the topic of the impact of the tech meltdown in the USA conveyed more than a thousand words might have. Melstar though has fared reasonably well and with a topline growth of over 80 per cent and bottomline growth of over 40 per cent, it remains in the ‘worth watching’ category among the relatively medium-sized entrants into the capital market. Over the weekend, at the office, I encountered an interesting question from one of the management summer trainees who wanted to know how ITC’s share price was holding firm amidst the shambles at the Indian bourses. Off the cuff, I jocularly
responded that maybe our broking and trading fraternity might be trying to smoke their market related worries away thus enhancing consumption and resultantly the company’s topline and bottomline, not to speak of its share price. But jokes aside, do you think there might also be a correlation with a possible growth in respiratory and lung related disorders across India? |
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Mercedes-Benz Rose export Export house IFFCO IEC Tata Infotech EIL honoured |
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