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Sebi now unearths IDFC IPO scam
Govt nod to FDI in retail luxury goods soon
Standard’s battery-driven two-wheeler a hit
Tatas, Fiat tie up to sell vehicles
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Tatra trucks with Russian firm
Suzuki turns Heat on rivals
Ashok Leyland to invest Rs 1,000 cr in North India
Trai invites suggestions on differential tariffs
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Sebi now unearths IDFC IPO scam
Mumbai, January 13 Further, the market watchdog has brought four leading finance firms under its scanner. Registrar to the IDFC IPO Karvy Computer Shares, lead managers to the issue Kotak Mahindra Capital Company and DSP Merrill Lynch, and SBI Capital Markets would now have to undergo Sebi probe. “The entire problem is not with the allotment process, which has by and long come to stay as stable and secure, but the way in which banks and DPs in some cases, which have connived with the key operators in derailing the tried and tested process of fair and transparent allotment of shares in IPO,” Sebi said in a press note here today. Some of the banks in which the suspected benami accounts were opened are, Bharat Overseas Bank, HDFC Bank, ING Vysya Bank, Vijaya Bank and IDBI Bank. Karvy Computer Shares is likely to feel the heat most as the regulator has found it of having opened 95 per cent (42,056) multiple demat accounts in relation to IDFC IPO. Out of the total fake accounts, Sebi suspects that 14,807 are Roopalben Panchal’s, the main accused in Yes Bank IPO scam. Other names to figure were Sugandh, Purshottam Budhwani and Manojdev Seksaria. Terming the scam as one that has seen rampant use of multiple accounts and probable funding by banks to these fake players, Sebi has asked the Reserve Bank of India (RBI) to check ‘benami’ accounts of the banks involved in IPO scam. “Any system that is unable to identify and alert Sebi about multiple dematerialised accounts based on common addresses cannot be accepted,” Sebi said. The regulator has banned a total of 35 entities including Roopalben Panchal, Sugandh Estates and Investments, Purshottam Ghanshyam Budhwani and Manojdev Seksaria from dealing in the capital markets. Meanwhile, Finance Minister P. Chidambaram today said the government and market regulator Sebi will not allow any misuse of the system in new public issues and “severe action” would be taken against all those involved in Yes Bank and IDFC IPO allotment scam. “We have cautioned everybody that there should be no such misuse of the system when the new issues hit the market... I have spoken to the persons concerned...I think for new issues, they are taking care that such scam does not take place,” Mr Chidambaram told reporters. “I don’t think there is any worry about the new issues,” he said adding: “I think all agencies acting together will take severe action against them (those involved in the scam)”. Mr Chidambaram was responding to Sebi unearthing another multiple demat account scam in IDFC IPO, which is of a much larger proportion than in the Yes Bank IPO allotment detected last month. After manipulating IPO allotment of Yes Bank, Roopalben Panchal and other three fictitious investors through benami demat accounts had cornered 8.29 per cent of the retail category of IDFC public offer. The size of the retail portion of IDFC IPO was 14.12 crore share. Mr Chidambaram said it was the same set of players — 4 or 5 individuals, a couple of banks and depository participants were involved as in the case of Yes Bank. “I am told it is the same set of people. Four or five individuals, couple of banks are the same. The depository participants are the same. Culprits are pretty much identified,” he said. “Now we know who the culprits are—same bank managers, same depository participants, same lead managers and identified individuals,” he said adding it was systemic deficiencies.
— PTI
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Govt nod to FDI in retail luxury goods soon
Mumbai, January 13 Inaugurating the Hindustan Times Luxury summit here, the Union Minister said: “We are now looking at formulating a policy that does not displace or disturb the small retailers and neighbourhood stores.” He said the government was of the view that retail should not replace or displace the small enterprises, 98 per cent of which are in the unorganised sector. He said the government was looking at the correct definition by which FDI could be facilitated without disturbing the existing retail outlets of small enterprises. “Luxury brands do not pose any such threats to the neighbourhood stores,” he assured. When asked about FDI in retail of high-end products, he said, “You will not have to wait long for this to happen.” The Union Minister said the fact that there was a large market and demand for high-end products shows the success of economic growth in India. “Our model of reforms is a revival of the weakest and not survival of the fittest,” he said. “The bedrock of our reform process was all-inclusive. It has helped us tide over all challenges and crisis,” Mr Kamal Nath added. Talking of the success of India as an economic power, he said, “We have many times in the past faced a question: Is it worth it to be in India? But this is not the question today. Can you afford to be not in India today?” The luxury summit, the first of its kind in the country, provides a platform for heads of top lifestyle brands to interact with the government, which is considering opening up the domestic retail sector to foreign direct investment. — Agencies
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Standard’s battery-driven two-wheeler a hit
New Delhi, January 13 Hailing from Barnala in Punjab, Standard is already Asia’s largest harvesting machine manufacturer. It is showcasing its innovative products - with European quality and Chinese price - varying from tractors (Rs 1.29 lakh to Rs 2.80 lakh), three-wheelers (Rs 1.65 lakh to Rs 1.75 lakh), cranes to front-loaded excavators and two wheelers. “We are now geared up to register a 100 per cent growth rate in our business every year from Rs 125 crore achieved last fiscal year. The target is to achieve a turnover of Rs 250 crore this year and Rs 500 crore in the next one-two years,” said
Mr Nachhattar Singh, Managing Director, Standard Combines Pvt. Ltd. He said Standard was setting up an assembly line in Baddi to manufacture three- wheelers and cranes, estimated to cost Rs 50-60 crore. The 48- volts
scooty, set to be launched in four months at a price of Rs 25,000, is attracting crowds. Once charged with home electricity, it can be driven for up to 80 km at an average speed of 60 km per hour, he said. Elaborating its features, company Senior Manager Swaran
S. Brara said; “It will be most suitable for school, college students, besides working people in small towns. The company has already got an order to export 500 tractors and over 200 harvesting machines to Sri Lanka, besides orders from South African countries. Standard, which manufacturers around 1,000 harvesting machines, recently acquired a 1.5 lakh capacity three-wheeler manufacturing plant of Gujarat Narmada at a price of Rs 25 crore. The plant machinery, said Mr Nachattar Singh, had been shifted to Barnala and Baddi to manufacturer three-wheelers, cranes and parts of tractors. Standard sold over 4,000 tractors last year, besides exporting harvesting machines to African countries. “We are looking for a big market for harvesting machines and other products in Pakistan. Once the borders open we will offer them machines at Rs 10-11 lakh in their currency for which they are now paying up to Rs 20 lakh,” he added.
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Tatas, Fiat tie up to sell vehicles
New Delhi, January 13 Talking to the reporters at the Auto Expo Tata group Chairman Ratan Tata said, “The alliance will help Tata get new technology and enhance its product portfolio along with overseas expansion.” According to the agreement, a selection of Fiat cars and the Tata product range, along with service and sale of spare parts, will be available from March 2006 through the Tata dealership network. The deal is the result of the joint activity started after the MoU between the two companies in September 2005. Mr Tata further said that he was very pleased with the association with Fiat and looked forward to long-term relationship. “We believe this will soon result in more strategic alliances between the two organisations and across various markets,” he said. However, no financial details about the alliance was declared. The alliance will also help Fiat’ to pull back from its worst-ever crisis by launching new models, striking industrial alliances and producing in low-wage countries to cut costs. Fiat Chief Executive Sergio Marchionne said the company might also look at sourcing auto components from India. “This alliance enables us to increase out customer base in India and also provide superior service and facilities to our existing customers,” he said. He further said, “I am confident that this association will expand in the areas of product development, manufacturing and sourcing.” The tie-up also gives Tata Motors the opportunity to compete with Suzuki Motor Corporation and Hyundai Motor Company, which are together investing $1.7 billion to expand in India. Fiat has two factories near Mumbai. While the Palio is made at Kurla, the plant at Ranjangaon is not used. Meanwhile, Tata Motors today increased the prices of its passenger vehicles by up to Rs 11,000 owing to rising input costs. The hike will come into effect from January 15. The price hike varies from Rs 1,500 to Rs 11,000 depending on the makes of the vehicles. “The hike in the prices will range from Rs 1,500 to Rs 2,000 on the lower side and Rs 11,000 on the upper side on various passenger vehicles,” Tata Motors sources said. The hike in the prices is due to increase in input costs, he added.
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Tatra trucks with Russian firm
New Delhi, January 13 “Manufacturing of the Kamaz truck components would be done at the company’s Hosur plant in Tamil Nadu. After procuring the required clearance certificate from the authorities it would roll out heavy-duty trucks in the Indian market by this year-end,” Managing Director Tatra Vectra Motors Ltd Rakesh Jinsi told reporters at the Auto Expo here. The two companies have been working together for the past few months identifying suitable products for the Indian market, he said. The company would initially be sourcing some of the truck components from Russia but might look into its localisation depending on economics and requirements here, he said. The company in full capacity (two shifts) could
manufacture about 12,000 trucks a year. — PTI
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Suzuki turns Heat on rivals
New Delhi, January 13 The company has already made an initial investment of Rs 200 crore in its manufacturing facility at Gurgaon and plans to produce and sell one lakh units in 2006. Suzuki Motor Corporation has 74 per cent stake in its Indian subsidiary, Suzuki Motorcycle India Pvt Ltd (SMIPL). Speaking at the launch, joint MD Katsumi Takata said: “Considering that the Indian two-wheeler market is growing at a steady pace, we are upbeat about our plans for India.” The two new motor cycles — Heat and Zeus are targeted at excessive bike users and young college students and executives, respectively. Heat would be priced at Rs 37,893 (ex-showroom Delhi) and Zeus would also be very competitively priced, the company said.
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Ashok Leyland to invest Rs 1,000 cr in North India
New Delhi, January 13 The company has already entered into new areas like design and engineering services, that go beyond its core business of commercial vehicles, Mr R. Seshasayee, Managing Director, Ashok Leyland, told reporters at Auto Expo. Without disclosing the location of new investment, he said, the company planned to invest up to Rs 1,000 crore in North India, besides a bus-manufacturing facility in Dubai. “We will shortly identify a location in North India to set up a manufacturing facility for city buses, in partnership with IRIZAR-TVS, our joint venture partner. This is our response to our major customers in the region, who are increasingly seeking commuter-friendly modern options, including low-floor buses,” he said. The company was planning to launch by 2007 buses for the premium segment with
European standards, he added.
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Trai invites suggestions on differential tariffs
New Delhi, January 13 Trai has initiated a consultation process on this, also known as On Network calls (within the same network), with a view to formulate regulatory policies in the matter of interpretation of the principle of non-discrimination in as far as it is applicable to tariffs for telecom services (voice telephony). This process has been initiated with the issue of Consultation Paper on Differential Tariff for On-Network calls. “The key issue to be deliberated in the consultation process would be the definition of the term On-Network for the purpose of applicability of differential call charges”, a Trai statement said. In 2004, the Authority reviewed the manner in which the principle of Non-Discrimination was being interpreted and allowed the operators to have differential call charges for On-Network and Off-Net calls. It is more than a year since that review was made. Since then the market has witnessed a variety of differential tariffs offered by the operators. Some operators have requested the Authority to clearly specify as to what would constitute On-Network calls for the purpose of application of differential call charges and whether differential tariffs for On-Network calls should continue to be permitted. Trai is empowered to fix tariffs for telecommunication services under Section 11(2) of Trai (Amendment) Act, 2000. — PTI
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