New Delhi, June 19
The Tatas may not be known for being on stock-based rich lists, but changing market dynamics have led to the salt-to-software conglomerate overtaking the combined market wealth of the two Ambani Groups put together.

Share prices for both the Reliance Groups has been tumbling in recent times. Analysts put the blame on a string of controversies surrounding them for months now.

A host of Tata Group firms, on the other hand, have grown stronger, in terms of stock market valuation. The group has also shrugged off an overall bearish sentiment in the broader market and even some controversies related to it.

In the process, the stock market wealth of the entire Tata group has grown close to Rs 4,40,000 crore - highest for any corporate house and bigger than the combined figure of the two Ambani Groups together - at about Rs 3,67,000 crore.

This marks a sharp reversal of the things seen about an year ago, when the Tatas were smaller than the Mukesh Ambani Group alone. Tatas have about 30 listed companies, while the Mukesh Ambani group has only two.

According to the latest market value of individual groups, Tatas rank on the top, followed by Mukesh-led Reliance group at second position with about Rs 2,85,000 crore.

The Reliance Anil Dhirubhai Ambani Group (R-ADAG), which ranked third after the Mukesh-led RIL group and Tatas a year ago, does not figure even among the top 10 groups now.

In the past one year, R-ADAG's market wealth has plunged by over Rs 60,000 crore to close to Rs 82,000 crore now.

The Mukesh-led group's valuation has also fallen by about Rs 73,000 crore, but that of Tatas has grown by more than Rs 1,00,000 crore in the same period.

The Tata companies that have added significant market wealth in the past one year include TCS, Tata Motors, Tata Steel, Titan, Tata Coffee, Tata Chemicals and Rallis.

All the companies of the two Ambani groups, barring the smallest of them Reliance Broadcast Network, have lost market value since July last year.

In the MDA group, Reliance Industries has lost about Rs 72,000 crore, while the only other listed firm Reliance Industrial Infra Ltd has also lost about Rs 650 crore. Among ADAG firms, the losses are about Rs 21,000 crore for RCOM, about Rs 20,000 crore for R-Power, Rs 14,000 crore for R-Infra and over Rs 5,000 crore for Reliance Capital. — PTI

New Delhi, June 19
In a major relief to employees, the government has said they would no longer have to pay income tax on money drawn from welfare funds for annual medical check-ups.

The Central Board of Direct Taxes (CBDT) has issued a notification in this regard. The notification says that no income tax will be levied ‘to meet the cost of annual medical tests or medical check-ups of the member, his spouse and dependent children’ if money is drawn from the welfare fund to meet the expenses.

Earlier, only cash benefits to a member of the welfare fund on superannuation, illness (including spouse or dependent children), or towards education of dependent children were exempted from income tax.

Exemption from taxation is granted under Section 10 of the I-T Act. The latest exemption has been given under a clause that deals with income received on behalf of a fund established for the welfare of employees or their dependants.

Earlier, the government had withdrawn a proposal to impose 5% service tax on services provided by AC hospitals of more than 25 beds and on diagnostic services. — PTI

Chandigarh, June 19
The Punjab National Bank (PNB) today said it was eyeing expansion in the European Union, Canada and Australia. “We are trying to walk on the untreaded path and explore new avenues,” Chairman and Managing Director KR Kamath said.

Kamath added that the presence of Punjabi community in the UK was one of the key reasons behind the bank’s success there.

Focusing on retail and operating through its subsidiary, Punjab National Bank (International) has seven branches in the UK. These mostly operate in areas dominated by the Punjabi community, like the ones at Southhall, Birmingham and Wolverhampton.

“In four years, we have 30,000 Indian accounts (mostly of those from Punjabi community) in seven branches in the UK. Even the British High Commission has showcased it as a success story,” he said.

He said PNB International would take care of the bank's operations in Europe, even as the bank eyed presence in other European countries over the next two years.

Kamath said during the current year, the bank is looking for a total of $2 billion deposit and advances by the subsidiary.

With presence in nine countries, he talked about few more expansions including opening up of a representation office in Australia and Canada, where too Punjabis are present in numbers.

PNB, which has its roots in Pakistani City of Lahore, would also put its stake whenever in future the governments on both sides decide to open a branch there.

“If the climate for our bank going there in Lahore is there, we will make our stake very strongly because our roots are there,” he said.

Punjab National Bank (International) made an operating profit of almost $10 million in the year ended March, 2011, he added.

By August, PNB may finalise a partner for its life insurance business after having received financial bids from three players — Aviva, Bharti AXA and Metlife, 
he said.

On increase in EMIs for loans, Kamath said: “Interest rate is not the villian as far as people getting affordable houses is concerned.”

Kamath said the bank plans to recruit 10,000 people under various categories.

— With Agency Inputs

New Delhi, June 19
Cotton exporters, who fail to ship the quantity allocated to them within the stipulated period, will be debarred from future allocations, according to norms of the commerce ministry.

The Directorate General of Foreign Trade (DGFT) has said it would also initiate penal action against the defaulting exporters.

Cotton exports are being restricted through a quota in the wake of shortages. While initially, the quota allocation was 55 lakh bales (a bale = 170 kg each), the same has been increased to 65 lakh bales.

“...he (exporter) shall be liable to a penalty of not less than Rs 10,000 and not more than five times the value of the goods or services or technology in respect of which any contravention is made or attempted to be made, whichever is more,” the DGFT said.

According to the modalities, allocation will be made to those exporters who must have exported cotton in either of the two previous cotton years.

“The allocation will be done on a pro-rata basis with a ceiling of 4,250 tonnes per Importer Exporter Code (equal to 25,000 bales) and floor of 100 tonnes per IEC,” it said.

An applicant can apply for a quantity which is the higher of its export of cotton in the two previous cotton years (2008-09 and 2009-10) subject to a quantity ceiling of 4,250 tonnes, it added.— PTI

New Delhi, June 19
India is likely to allow foreign individuals to invest in mutual funds in the next two weeks but with a cumulative cap of $10 billion, an official said today. The detailed guidelines are being worked out jointly by the finance ministry, the RBI and the SEBI.

These will be notified by the capital market regulator, the Finance Ministry official said. The move follows announcement in the last Budget by Finance Minister Pranab Mukherjee.

“This will increase corpus in MF holdings, which means MFs will purchase more equity and other schemes as a result of which it will help in fighting volatility, which takes place due to FII outflows,” an official said.

Currently, only FIIs and sub-accounts registered with the market regulator SEBI and NRIs are allowed to invest in MF schemes.— PTI

Chandigarh, June 19
Reliance Communication (RCom) has paid outstanding dues worth Rs 2.87 crore to state-owned BSNL (Punjab) on account of Interconnection Usage Charges.

However, connectivity between RCom and BSNL networks, is yet to be restored as company is still to pay restoration charges of Rs 9.27 lakh.

Once the charges are paid, connectivity would be resumed. After snapping connectivity, Punjab BSNL had sent a letter to RCom earlier this month asking them to pay up the dues or face forfeiture.

Sources added the company, which allegedly owes close to Rs 492 crore in various circles of BSNL, has cleared its dues and paid Rs 1.87 crore in the Haryana circle too.