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ADAE slaps slew of legal notices on Mukesh
group
Visiting a doctor may become costlier post-Budget
‘Exempt’ superannuation schemes from FBT
Kamal Nath woos Japanese investors
Bankers want FBT relaxed
SBI global presence to grow bigger |
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Toshiba takes Westinghouse for
Gold glitters at new high
of Rs 8,300
Pay BSNL Rs 40 cr, SC tells Rel Info
Dr Reddy’s poised for landmark deal
Lifetime validity means life of licence: COAI
PNB debit card
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ADAE slaps slew of legal notices on Mukesh group
Mumbai, February 6 Accusing Mukesh group of trying to get “demutualised” shares converted to physical shares, ADAG recalled that it had been given “irrevocable” powers of attorney (PoAs) to enable transfer of shares of four new companies and said if the other side had succeeded, the PoAs would have become useless. When contacted, an ADAG spokesperson confirmed that legal notices were sent from Friday night onwards to Mukesh group-promoted companies, JM Financial and Karvy Consultants and Depository Participants and Registrars. A confirmation of legal notices by ADAG came a day after it had accused Mukesh’s camp of “criminal attempt” to frustrate the transfer of shares to it. ADAG sources said the MDA group had withdrawn the attempt to convert share to physical form on Saturday after the legal notices were served and alleged that “to protect their skin, Mukesh group is now spinning a false story of the conversion allegedly having agreed to by ADAG.” Stating that these moves were “one more proof of the devious mindset and approach” of the Mukesh group, they said that their withdrawal (from efforts to convert shares to physical form) following the legal notices was a testimony to it. Claiming that the electronic shares have still not reached ADAG, group sources accused that Mukesh camp of fraudulently trying to stop the transfer of shares when they approached them to implement the Power of Attorney (PoA) on February 3. ADAG Directors Gautam Doshi and Satish Seth asked the Directors of Transferor companies (Mukesh group-promoted companies) through a letter sent to them on February 3 to withdraw their requests for rematerialisation (conversion of shares from electronic to physical form) and “desist from taking any such illegal, fraudulent and malafide action, which would involve civil and criminal liabilities.” The letter said that the Power of Attorneys executed by Directors of Transferor companies holding the demat accounts were in pursuance of reorganisation of Reliance group, agreed by Anil Ambani on the consideration that the shares of the four resulting companies would be transferred to companies under his control. “We understand that when you were informed by JM Morgan Stanley Financial Services of the fact that we had lodged the PoAs for transferring shares in favour of ADAG, you chose to take a completely fraudulent, illegal and malafide step of seeking rematerialisation of the said shares,” they said. Mukesh aide scoffs
Earlier in the day, Mr Sandeep Tandon, Mukesh confidant and Chairman of the four new companies — Reliance Energy Ventures, Reliance Capital Ventures, Reliance Communication Ventures and Reliance Natural Resources — had scoffed at the allegations and dared Anil’s group to file a criminal case against him and that he was willing to face the consequences. Reliance Industries Ltd (RIL) said it has completed the process of transfer of control of four demerged companies to Anil Dhirubhai Ambani Group (ADAG) in compliance of the norms laid down by Security Exchange Board of India (SEBI). RIL Group Advisor Sandeep Tandon said transfer of shares to ADAG was completed today and the company was expecting the transfer certificate from the Depository
Participants (DPs) today itself. Mr Tandon said transfer of shares would pave the way for listing of the four companies on Stock Exchanges provided the ADA Group submitted all the relevant papers to the bourses and Sebi as per the requirements of corporate governance as well as other listing norms. Information memoranda in respect of all four companies except Reliance Communications Ventures had been filed with the BSE and NSE on January 31 itself, he pointed out. For listing the Reliance Communications Ventures, exhaustive disclosure requirements had to be complied because there were over 200 companies within the group for which no disclosure had ever been made while the Group was being managed by Mukesh Ambani.
— Agencies
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Visiting a doctor may become costlier post-Budget
New Delhi, January 6 Finance Minister P. Chidambaram has indicated that he would review the controversial fringe benefit tax (FBT) while bringing more services under the service tax net. During his last Budget, he had assured the auto industry, that he would review the additional 8 per cent excise duty on automobiles, whenever the economy improves. The Ministry sources has said that with the buoyancy in revenue collections, the government is ready to have a look on “ excise duty” on auto sector, besides bringing more services under service tax net. “Corporate tax rates could remain untouched at the present level but bowing to the pressures from apex chambers, the controversial Fringe Benefit Tax would be simplified to remove some of the glitches. Prime Minister Manmohan Singh has made it clear, taxes should be “moderate and not confiscatory.” Presently, 81 per cent services are covered under 10.2 per cent service tax, they said, adding that the tax net could bring multiplexes, fashion designers, doctors, lawyers, healthcare facilities and trade fairs. But Finance Minister has rejected the plea of some quarters that there should be negative list for service tax. Keeping in like with his promise, he is likely to bring down peak customs duty from 15 per cent to 12-13 per cent, but the focus will remain on tax reforms.
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‘Exempt’ superannuation schemes from FBT
New Delhi, January 6 Insurers have also asked Finance Minister P.Chidambaram to keep life insurance policies and pension annuities out of the ambit of the proposed ‘EET’ model that envisages tax on withdrawals to encourage long-term savings, which can be channelised for infrastructure development. The Life Insurance Council under IRDA has already submitted its memorandum to the Finance Minister in this connection. “The first concern is the FBT on group superannuation schemes. The government should review the decision to charge FBT on these schemes. If complete exemption is difficult, the FBT should be imposed on 20-30 per cent of the value of superannuation benefit,” Mr S.V. Mony, who heads the council, said on the sidelines of a FICCI seminar here today. Justifying the rationale to exempt pension contribution from employers from the FBT, Mr Mony said super-annuation benefits were not cash benefits given to employees immediately but effectively given after 20-30 years. Meanwhile, IRDA said it would submit its recommendations to the government to amend the Insurance Act, 1938, by month end. While addressing a seminar at FICCI today, Mr C.S. Rao, Chairman, IRDA, said the IRDA suggestions would be in tune with the recommendations of the Law Commission and the K.P. Narsimhan Committee. HDFC Standard Life CEO Deepak Satwalekar said the ‘EET’ model should not be applied to life insurance policies as it would hurt the common masses more. “If withdrawals from life insurance policies are taxed as per the EET mode, people in the lower income bracket will end up paying taxes at the highest rate of 30 per cent,” he said.
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Kamal Nath woos Japanese investors
New Delhi, February 6 The appeal was made by Union Minister for Commerce and Industry Kamal Nath here while addressing an investment seminar of ‘METI-JETRO India Investment and Business Promotion Mission,’ who, however, regretted that there had been no financial collaboration between the two Asian giants in the recent past. The minister put
across to the large number of Japanese investors the advantages India offers — a fast growing free market economy, its burgeoning youth population which constitutes an active market and working population, a well settled system of entrepreneurial system and above all the success of the big bang reforms launched in 1991. Looking at $ 500 billion worth of economic engagement globally for India within the next three years, the Commerce Minister said that the economic architecture in the country was rapidly witnessing a paradigm shift. He urged the huge turnout of Japanese entrepreneurs to exploit potential business opportunities in the country’s small and medium enterprises (SMEs) sector. The Commerce Minister also invited a cluster of Japanese companies to invest proactively in special economic zones set up by the government in various states and reap the benefits of tax and other fiscal incentives. Minister of State for Industry Ashwani Kumar pointed out the complimentarities between the SME sectors of both countries and expressed India’s eagerness to aggressively pursue its mandate in a globalised economy. Mr Ashwani Kumar welcomed extensive Indo-Japanese
cooperation. — UNI
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Bankers want FBT relaxed
New Delhi, February 6 In a review meeting with Finance Minister P. Chidambaram here today, bankers also wanted relaxation in the fringe benefit tax on super-annuation schemes and other benefits offered to employees, as it was eating into the profitability of banks. Bankers discussed issues pertaining to mergers and acquisitions, securitisation of bad loans, credit growth, especially to the farm sector and revision of pay package. In its Budget wish-list, the Indian Banks Association wanted interest earnings from bank deposits to be treated like other saving instruments and come under the Rs 1 lakh exemption envisaged in Section 80C of the Income Tax Act. The move assumes importance in view of the sluggish growth in bank deposits compared to credit growth which, in turn, led to liquidity crunch and was putting pressure on lending rates. Interest on bank deposits have become unattractive to depositors on account of the tax and was channelising household savings to other short-term investments like equities and mutual funds. Banks also pitched for reduction in the Cash Reserve Ratio and release of funds from the Market stabilisation scheme to ensure higher liquidity to meet the high credit demand in the past two months of this fiscal. The minister promised banks that the Finance Ministry and the RBI will soon work out “hybrid instruments” that would enable banks to increase their capital and meet credit demand.
— PTI
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SBI global presence to grow bigger
Kolkata, February 6 Stating this here today, the SBI Chief General Manager, Bengal Circle, Mr Uday Shankar Roy, said though no specific timeframe had been fixed so far for the overseas expansion, in accordance with the directive of the Union Finance Ministry the entire process would be completed by 2007-08. Referring to the recent acquisition of three major local banks in Kenya, Japan and Mauritius by the SBI, besides cementing its strong presence in those countries, Mr Roy said at present SBI was present in 35 countries with 58 offices and branches. At present at least 16 per cent of SBI’s total business was coming from its overseas operations, Mr Roy said replying to a query adding with the opening of new branches it might cross the 25 per cent margin during the next few years. To another query, he said apart from opening full-fledged branches, they were planning to acquire some new foreign banks, enter joint venture with local banks, open SBI subsidiaries or introduce useful representative offices in some new areas. Banking museum
A unique first of its kind archive showcasing the 200-year-old history and contribution of State Bank of India (SBI) will come up in Kolkata, its birthplace, by April opening a new chapter. Being set up in a 7,000 sq ft area within SBI’s regional headquarters in down-town eastern metropolis, the archive following its formal inauguration within the next three months would display a number of invaluable documents of the Bank including the original loan documents of Prince Dwarakanath Tagore and Pundit Iswar Chandra Vidyasagar of Rs 6200 in 1873 besides some original legal banking tenders, old currency notes and very old cheque books used by eminent personalities like Rabindranath Tagore, JRD Tata and some others.
— UNI
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Toshiba takes Westinghouse for $5.4 billion
London, February 6 Toshiba, Japan’s largest maker of power plant equipment, said it expected several minority investors to participate in the deal, but added that it intended to retain a stake of more than 51 per cent in Westinghouse. BNFL, which is owned by the British government, said it expected the sale to be finalised within around six months. BNFL had bought Westinghouse in 1999 for $1.1 billion. The deal is, meanwhile one of the biggest overseas acquisitions by a Japanese company. Toshiba, named last month as the preferred bidder for Westinghouse, beat off competition from 13 other parties, including US conglomerate General Electric and Japanese group Mitsubishi. Japan, which depends on nuclear power for 30 per cent of its energy needs and is a net importer of crude oil, is looking to build a new generation of nuclear scientists before 2030, when its current reactors will need to be replaced. Upon completion of the acquisition, Toshiba said it expected its nuclear power business to expand three-fold by 2015 as a result of operational and technological synergies. BNFL chief executive Mike Parker said the deal would “secure the maximum return on the British taxpayers’ investment and cement the continued leadership of Westinghouse”. Parker met with Toshiba Corporation president and chief executive Atsutoshi Nishida at London’s Dorchester Hotel on Monday to sign a purchase and sale agreement.
— AFP
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Gold glitters at new high
of Rs 8,300
New delhi, February 6 The yellow metal surpassed the previous peak of Rs.8290 quoted on February 3, and maintained an upward march for the past eight days in a row. Silver too surged on the back of higher demand from coins fabricators and industrial units. The precious metal spurted in line with other Asian markets where gold gained $ 3.95 at 572.85 an ounce largely in view of tension in West Asia. Standard gold and ornaments shot up by Rs 60 at Rs 8,300 and Rs 8150 per 10 gm, respectively while sovereign gained Rs 50 at Rs 6350 per piece of 8 gm.
— PTI
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Pay BSNL Rs 40 cr, SC tells Rel Info
New Delhi, February 6 BSNL had raised a demand of Rs 160 crore on Reliance Infocomm of which the private operator had already paid Rs 10 crore. The direction to pay additional Rs 40 crore was given by the Division Bench. Last month TDSAT had passed a judgement stating fixed wireless phone services offered by Reliance Infocomm equivalent to a limited mobile service and, therefore, liable to pay relevant charges like access deficit
charge. The same was challenged by Reliance Infocomm in the Supreme Court.
— PTI
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Dr Reddy’s poised for landmark deal
London, February 6 The deal would be the biggest overseas acquisition by an Indian drugs group. Quoting sources, the Guardian daily reported from Brussels today that Dr Reddy’s, one of four Indian companies initially in the running for Betapharm, had outbid France’s Sanofi-Aventis and Israel’s Teva. The Indian group’s bid comes amid evidence of a renewed shake-up in Europe’s pharmaceutical sector with Glaxo-SmithKline in talks to buy Serono, the Swiss-based biotechnology group.
— PTI
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Lifetime validity means life of licence: COAI
New Delhi, February 6 With the term lifetime spelling out different connotation for different categories of people like customers, operators, Cellular Operators Association of India (COAI) has stated: “The lifetime plans of the cellular operators can only be offered during the lifetime of their license and to that extent the lifetime plans of different operators will vary in their validity duration. “The service providers cannot commit to a service offering beyond the lifetime of their license.” Licences are issued for a period of 20 years. This means, an operator who received a licence 10 years ago would be able to offer the scheme only for another decade.
— PTI
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PNB debit card
New Delhi, January 6 “This card will go a long way in providing over 3.6 crore PNB customers with secure and convenient electronic access to their own money anytime, anywhere,” said Mr. Nitin Gupta, country General Manager, South Asia, MasterCard International.
— TNS
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Oil price jumps
London, February 6 Iran said today that large-scale uranium enrichment work, the focus of fears it is seeking nuclear weapons, would begin in “due course” in response to the IAEA decision weekend. New York’s main contract, light sweet crude for delivery in March, gained 73 cents to $ 66.10 per barrel in electronic
deals. — AFP
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Tata AutoComp, GYIN form jv
New Delhi, February 6
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Yahoo, AOL plan
New York, February 6
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First ‘green’ IT park GAIL adviser Ranbaxy-CIH jv |
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In video: Japanese business delegation calls on PM. (
