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IPO scam guilty to be brought to book soon, says Chidambaram
Few export-promotion schemes may be axed
Kalam asks IT sector to log into new markets
Infosys gets land in Mangalore
1,320-MW power plant for Chhattisgarh
Govt to list big, profitable central PSUs
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Pak not to open up trade with India
European regulators publish Mittal proposal
SBI gets nod to operate in China
Bima Yojna
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IPO scam guilty to be brought to book soon, says Chidambaram
New Delhi, February 17 “The enquires and investigation made so far by the RBI and SEBI seem to indicate that the bank accounts and demat accounts with depository participants (DPs) were opened without adherence to prescribed procedures. Some banks extended IPO finance and facilitated movement of funds in violation of the guidelines.” He said the accused branches, managers and brokers had been identified, and interim action, including fines on the banks, had been taken. But, the final action would be taken in the next few days, he told the Lok Sabha. Claiming that unlike the Harshad Mehta scam, the banks had not suffered any financial losses though these had violated the guidelines regarding “know your customer.” “Same set of persons had opened multiple accounts in May,2003, using the same address. They were emboldened by the fact that no action was taken against them at that time.... Now we have identified them and action will be taken in the next few days,” the Finance Minister said. Mr Chidambaram said SEBI had noted certain irregularities in the issue of IPO shares in the recent past relating to the two banks. Enquiries indicated that a few entities had opened thousands of demat accounts with depository participants and bank accounts in names of fictitious or benami individuals. The penal action taken by the RBI includes imposition of penalties ranging from Rs 5 lakh to Rs 5.20 lakh on seven banks taking into account the extent and enormity of the violation of the RBI guidelines. In order to prevent
irregularities, Mr Chidambaram said, SEBI had directed the depositories to advise their DPs to verify “ the genuineness of the demat account-holders where 20 or more demat account-holders have a common address, besides undertaking other measures.
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Fraudsters exploited software loophole
Glitches in the software of banks allowed the multiple demat account scam in the IPOs of IDFC and Yes Bank to go unnoticed, Finance Minister P. Chidambaram today said while assuring further action against bank managers and brokers in the next few days.
More action will be taken against brokers and managers of seven banks involved in opening multiple accounts in the same addresses in fictitious names to get the shares, Mr Chidambaram told the Lok Sabha. The Finance Minister blamed the software in the banks for not detecting the benami accounts. “Obviously there are glitches in the software. This is being set right,” he said. The scamsters managed to get around the banking rules to open fictitious accounts in common addresses because the software was not foolproof, Mr Chidambaram said during question hour.
— UNI
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Few export-promotion schemes may be axed
New Delhi, February 17 “The government is likely to scrap the target plus scheme under which tax evasion has been found amounting Rs 8,000 crore annually by Director General, DGFT,” said official sources. The Finance Ministry has found “outright diversion of duty free imported goods without bringing them to the declared premises under the Advance Licensing Scheme.” A study undertaken by the Ministry has observed that a large number of beneficiaries were utilising duty free material for purposes other than fulfilment of export obligation. Such cases have been found in towns like Ludhiana, Jalandhar, Faridabad and Gurgaon in North India, besides other export centres across India, official sources said. The modus operandi of tax evasion under duty drawback scheme, especially by the textile units was non-fulfilment of export obligation, over-invoicing of export goods, export in the name of non-existent persons and forging of ship documents, an official said. The Director General, DGFT, has recommended the winding up of target plus scheme from the next financial year, besides review of Vishesh Krishi Upaj Yojana, he added. The Ministry has also taken a serious note of the only 61 per cent of such buyers were quoting fact that total number of transactions involved in huge tax evasion. Currently, the ministry is issuing letters to such buyers, but it plans to use this information with effect from April 1, 2006, said official sources. Concerned with huge tax evasion by buyers of luxurious goods like home theatres, plasma TVs, high end refrigerators and imported cars, Finance Minister P. Chidambaram is expected to tighten the tax net around them. The Ministry has asked the IT to verify the income tax returns filed by high-end buyers with the data collected from market with effect from April 1 this year. The Standing Committee on Finance, which submitted its report to the Lok Sabha today, has also recommended the review of all such schemes to make them evasion-proof. With particular reference to misuse of EPCG scheme for importing cars, the Committee wanted better coordination among state agencies. It called upon the government to impress upon states to bring in rationalised and uniform rates of stamp duty. Finance Minister is expected to announce an initiative in this regard in the Budget, said sources adding some incentives on the par of VAT may be given to states to adopt uniform rates.
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Kalam asks IT sector to log into new markets
Mumbai, February 17 “Focus on India, but also keep in sight ASEAN and African markets to sustain long-term growth in information technology. Work harder and aim higher,” President Kalam said. Dr Kalam felt that Nasscom with its projection of $60 bn by 2010 was a lot lower. “The present projection of Nasscom is $60 billion by 2010 and I am here to discuss how to make it $200 billion,” he said. The President then went on to list a number of suggestions for the ambitious growth plans charted by him. “Form an ICT market for Asia, Africa and ASEAN nations,” Dr Kalam said. He also called on the industry to focus on the Indian and Asian markets. The President went on to urge Nasscom to convert the addressable market into an actual market. He urged the expansion of BPO and IT activities into small towns with a population of 1 million. Apart from engaging more partner nations like the Philippines and Singapore, the President called for the industry to take up projects in e-biz, e-governance, etc. The President called on the big companies to take along the smaller players in a bid to grow the market. He felt that taking knowledge to the villages would help the industry grow faster. “Develop domain services on the lines of kisan centres that help farmers to use IT,” Dr Kalam said. The President asked the industry to be a part of the World Knowledge Platform with joint partnerships and invest in R&D and knowledge products that would earn more revenue. The President felt that the Indian IT and BPO sector which accounts for just 3.5 per cent of the total global market should aim for at 15 per cent share.
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Infosys gets land in Mangalore
Bangalore, February 17 This was the message given out at a function organised by the Software Technology Parks of India (STPI) and the Karnataka IT Department today. The STPI and the Karnataka government have got together to highlight the achievements of the state and Bangalore in the face of what it called “increased media negativity” on this score. Both claimed the state would not only maintain its leading position in the field of IT exports but also build upon it in the future. Karnataka STPI Director B.V. Naidu said during the current financial year, 150 new companies were added against 135 companies in the same period last year. He said this indicated an average of four companies were setting up operations in Karnataka every week. He said major global companies, which had set up shop this year with Apple Computers finalising a plan to open a Tech Support Centre in the city on the lines of the Dell Centre which was already operational. He said Deutsche Bank, Bearing Point, Caterpillar, J P Morgan and Target were among the other companies setting up shop this year. A high-level committee, headed by Karnataka Chief Minister H.D. Kumaraswamy, has cleared an investment proposal by IT major Infosys for setting up another campus in the city. Talking to newspersons here, State Information Technology and Biotechnology Principal Secretary M.K. Shankaralinge Gowda said the demand for 700 acres by the company for the campus was now before the Land Audit Committee. Asked about the Infosys’ proposal to start a huge campus in Hyderabad for which the company would be signing a MoU with the Andhra Pradesh Government, he said the state could not avoid expansion plans of companies in other places.
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1,320-MW power plant for Chhattisgarh
New Delhi, February 17 To be set up by the US-based Texas Power Generation (TPG) company, the project will be on the banks of the Mahanadi river. The US firm is in talks with the government to get coal from a captive pit head near the site, Chairman and Chief Executive Officer, Vijay Kumar Jain said at a press conference here. He said the funding for the project would come from the USA and not from India. Also, a consortium of financers from Europe and West Asia would also lend support to the project, Mr Jain added. Currently the $ 2 billion company is engaged in acquiring land and preparing a detailed project report which will be submitted to the Power Trading Corporation (PTC). The Houston-based company will initially invest Rs 5,000 crore in the project (about Rs 3.6 crore per MW). Another Rs 2,000 crore will be invested for the developing of coalmines.
— UNI
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Govt to list big, profitable central PSUs
New Delhi, February 17 “The government has decided, in principle, to list large, profitable central PSUs on domestic stock exchanges and to selectively sell small portions of the equity in listed, profitable CPSUs other than navratnas”, Minister of State for Finance S.S. Palanimanickam informed the Lok Sabha today. In a written reply, he said the government had recently decided to disinvest 5 per cent of its 100 per cent equity shareholding in the Power Finance Corporation and also to disinvest 15 per cent out of the 98.34 per cent equity shareholding in the National Mineral Development Corporation through an “offer for sale” in the domestic market. The disinvestment in the PFC would be through piggy-back on the public issues being done by
PFC. — PTI
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Pak not to open up trade with India
Islamabad, February 17 “We would continue our bilateral trade with India through 773 items. Those products which are not included in the positive list would not be allowed to be imported under the SAFTA agreement,” said Mr Humayun Akhtar Khan. After the Pakistan Cabinet approved the treaty on Wednesday at a meeting, he said Islamabad would not grant the MFN status to India until there was a tandem move in other bilateral issues, particularly Kashmir. “The implementation of SAFTA could not bind us (Pakistan) to grant the MFN status to India until bilateral issues are not resolved amicably,” the minister was quoted as saying by the local daily Dawn. He said Pakistan needed not grant MFN status to India as even WTO rules allow member countries a cushion of not granting such a status to any country for some peculiar reasons. When Pakistan did not give the MFN status to India under the WTO, then how would it be possible to give the same under a regional agreement? he asked. Under the SAFTA agreement, the seven SAARC countries would bring down their tariffs to 0-5 per cent within the agreed time period to increase the volume of regional trade. As per schedule, the SAFTA protocol, signed by SAARC countries in Islamabad in January, 2004, was to come into force on January 1, 2006, and fully materialise by December 31, 2015. The delayed ratification by Pakistan followed media reports that Khan’s ministry circulated a report to the Cabinet suggesting a delay, saying that SAFTA would entail opening of trade with India which would in turn compromise Islamabad’s stand restricting bilateral economic ties without progress on resolution of the Kashmir issue.
— PTI
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European regulators publish Mittal proposal
London, February 17 The offer notice was published by three European regulators — Belgian Commission Bancaire Financiere et des Assurances, Luxembourg Commission de Surveillance du Secteur Financier and the Spanish Commission Nacional del Mercado de Valores, Mittal Steel announced. The main terms of the proposed offer have been officially made public and the draft offer documentation would now be reviewed by supervisory authorities, the company said. Meanwhile, in a new twist to the raging controversy over steel magnate L.N. Mittal’s bid to take over giant Arcelor steel plant, Luxembourg today said it doubted his “intentions” and questioned India’s intervention in the issue. Citing “historical, cultural and economic attachment” to Arcelor which is located in Luxembourg, its Ambassador Paul Steinmetz said Mr Mittal should “explain more” on why he was taking the step that appeared more of a “financial project rather than an industrial one”. Mr Steinmetz also brushed aside reports that India could back out on signing the Double Taxation Avoidance Agreement (DTAA), saying the Finance Ministry, which was involved in the talks on the pact, had conveyed nothing of that sort to his government.
— PTI
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SBI gets nod to operate in China
Beijing, February 17 “We have received the licence from the China Banking Regulatory Commission
(CBRC) to start normal banking operations in foreign currency,” Chief Executive Officer of SBI (Shanghai Branch)
T.C.A. Ranganathan said here. SBI, the largest commercial bank of India, has already taken adequate office space in China’s largest city and commercial hub, Shanghai, he said.
— PTI
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Bima Yojna
Chandigarh, February 17 The policy would be applicable in case of accident with any agriculture machinery or road mishap and the total maximum capital sum insured would be Rs 1 lakh.
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STCI buys UTI Securities RCVL listing Spentex buy Trusted airline Inflation at 4.08 pc Tata Motors Sejal Group |
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