New Delhi, September 24
Days ahead of announcing its reinstated financial results, Mahindra Satyam (formerly Satyam Computer) today said it will delist from the New York Stock Exchange as it is unable to comply with US market guidelines.

The company would delist its American Depositary Receipts (ADRs) from the NYSE on October 14. ADRs are shares issued by non-American companies to raise money in the US.

Mahindra Satyam Chairman Vineet Nayyar said in a filing to the BSE the company would not be able to file restated US-GAAP financial statements for the period ended March 31, 2009 on or prior to October 15, the deadline given the US regulator SEC.

Erstwhile Satyam Computer did not file its financial results for 2008-09 and 2009-10 its former its founder B Ramalinga Raju admitted to an an accounting scam running into several crore of rupee.

The company is slated to come out with its financials for the first time since the scam on September 29.

Raju in January 2009 admitted to fudging the company's accounts for years. Following the revelation, the company's administration was taken over by a government-nominated Board, which subsequently cleared sale of the company to 
Mahindra Group.

ADRs of Mahindra Satyam were trading at USD 4.95, down 19.12 per cent on the NYSE.

Besides, the company anticipates that after delisting, the ADRs will continue to trade in the over-the-counter (OTC) market.

In addition, throughout this period and in the future the equity shares underlying the ADRs will continue to be listed on the Indian stock exchanges.

"Keeping in view the paramount interest of the investors, our objective is to enable the ADRs to be quoted without interruption in the US domestic over-the counter market so that the investors can continue to trade the ADRs throughout the transactions period and beyond," Nayyar added.

Over-the-counter (OTC) trading is to trade financial instruments such as stocks, bonds, commodities or derivatives directly between two parties.

The company was notified by the NYSE of its non- compliance. Pursuant to the NYSE's rule, the company was given until October 15, to make this filing, which represents the maximum time period available.

The Board of Satyam, now acquired by Mahindra Group and since renamed Mahindra Satyam, will review the audited accounts of the company and the same would be submitted to the Company Law Board.

The CLB on a request from Mahindras had allowed the company to submit the audited results for 2008-9 and 2009-10 by September 30. It had earlier set June 30, as the deadline for Mahindra Satyam to file its re-stated accounts. — PTI 

Ludhiana, September 24
With the Commonwealth Games organisers failing to make arrangements for generating enough power for the smooth conduct of games, the northern grid will come to the rescue and divert almost 2,000 MW of power during the games.

The CWG complex requires almost 5,000 MW of power on a daily basis. The government had planned to generate extra power from the proposed new units to meet this requirement.

The power generating plants at Dadri (UP), Jhajjar (Haryana), Durgapuri and Raghunathpur (West Bengal), Koderma (Jharkhand) and Delhi were planned to meet the extra power requirement during the Commonwealth Games.

According to sources, only one project of Dadri has been completed. This plant will provide only 490 MW of power. The total installed capacity of the proposed power plants was about 7,180 MW. As a result, the northern grid will have to divert 2,000 MW of power to meet the requirement of the CWG.

With such diversion, people of Punjab in general and industry in particular, will bear the brunt.

"The supply of power in Punjab and other northern states is already lopsided. Private power producers have eased the power position to some extent but the government intervention is making things difficult for industrial and other consumers," said P.D. Sharma, president, Apex Chamber of Commerce and Industry.

Punjab's industry, particularly Micro, Small and Medium Enterprises (MSME) sector is dependent on Delhi to some extent. Some sectors and sections of the industry are heavily dependent on Delhi.

As a result, the industrial and commercial sector of Delhi will be hit hard. It is likely that the business establishments of Delhi will become non-functional for about three weeks. This will hurt the industry of Punjab as well. Supply of goods will be hampered. Payment position of Punjab's industry will get worsened. Exports, too, will be affected. It is well known that export of services is now declining sharply. Therefore, the export of goods should not be slowed on any account.

"The country is already facing a high deficit in external trade. The Prime Minister is urged to ensure that business between the capital and states like Punjab flows smoothly during the CWG. Power supply should not be hampered in the state during games," Sharma added.

New Delhi, September 24
The National Stock Exchange has invited brokers to register for trading over its new wireless platform, which allows investors to buy or sell securities using mobile phones.

NSE, the country's top equity bourse, has come out with a set of guidelines for wireless trading, following an August 27 circular from market regulator SEBI. The exchange has already started trial trading via wireless technology for its members.

The facility will enable any registered broker or a client to trade over their mobile phones from anywhere in the country. Clients can place orders, view positions and trade from anywhere in the country.

As per the NSE guidelines, member brokers of the bourse will have to submit an application seeking permission to commence securities trading using wireless technology, which would be granted on a case-by-case basis, it said in a statement.

Once the bourse grants approval, a broker can start providing this mobile trading facility to clients.

Last month, market regulator Securities and Exchange Board of India had issued guidelines for securities trading using wireless technology, including devices such as mobile phone and laptops with data cards. Earlier this week, the NSE's rival — the Bombay Stock Exchange -- launched mobile-based trading through its 33 leading brokers. — PTI 

Chandigarh, September 24
In order to check the progress of the one per cent interest subvention scheme for housing loans, the RBI has asked all banks to submit their claims for settlement on a monthly basis. These banks have been advised to put in place a suitable mechanism to ensure that eligible borrowers avail the benefit of interest subvention, for one housing unit only.

The government had initiated this scheme of 1 per cent interest subvention in respect of individual housing loans up to Rs 10 lakh (with the cost of unit not being over Rs 20 lakh) last year. An allocation of Rs 1,700 crore was announced by the government for this purpose, so that banks could be compensated for this interest subvention of 1 per cent.

The objective of the scheme was to provide interest subsidy on housing loans as a measure to generate additional demand for credit and improve affordability of housing to eligible borrowers in middle and lower-income groups. The scheme is being implemented through scheduled commercial banks and housing finance companies. The scheme began on October 1, 2009, and will be in operation till March 31, 2011. Since the RBI is a nodal agency for the scheme, the banks are required to claim disbursement of subsidy from RBI on a monthly basis.

However, many instances have come to light where a single borrower has taken loans under this scheme for more than one unit. Cases where benefits of interest subvention have been extended to those whose housing unit cost was over Rs 20 lakh have also come to light. Thus, there is a need to regulate the loan disbursal under this scheme. The RBI has now asked all the banks to send its claims within a fortnight from the end of the month for which claims are being demanded, so that a proper verification can be done.

The banks have also been asked to submit a utilisation certificate of the subsidy amount extended to them by the RBI. This utilisation certificate is to be submitted on a quarterly basis to RBI, after being certified by an auditor that the claims are true.