New Delhi, February 13
There was some good news for Finance Minister P. Chidambaram in the final few weeks of the Congress-led UPA-II government as the telecom companies, looking to garner as much of the 2G airwaves, bid aggressively to give the government over Rs 18,000 crore in this fiscal while giving the national exchequer over Rs 61,000 crore in all, over the next few years.

As the bidding for the 2G spectrum ended this evening after 10 days and 68 rounds, reports suggested the government would be able to mop up around Rs 61,141 crore from the auction of spectrum in the 900 MHz and 1,800 MHz bands.

As companies have the option to pay in instalments, the government will get Rs 18,273 crore in the current fiscal year, about 57% higher than Rs 11,343 crore that the government had budgeted for the current year in the Union Budget last year.

The total earning of the government from the 2G auction is 61% higher than the value of entire spectrum being auctioned at reserve price (Rs 37,903 crore) and around 20% more than what the government had earned from the 3G auction in 2010 by selling 20 MHz of spectrum for Rs 50,968 crore.

In the deferred payment mode, telcos will have to pay 25% of the total bid amount for 900 MHz band and 33% of the total bid amount for 1,800 MHz in the first year. The remaining amount will be paid in instalments over the next few years.

The auction for 900 Mhz and 1,800 Mhz bands saw contest for the radiowaves among eight telecom companies, with the bidding stretching to 68 rounds.

Reacting to the ending of the bidding, GSM operators umbrella body COAI said, “We are glad that the auctions are over and we feel that the government has emerged as the real winner. While the industry is relieved at the conclusion of the auctions, there also lies disappointment at the winning price points. We are awaiting the details of the results with the list of the winners, which will determine the emerging competitive landscape going ahead.”

The bid value of the spectrum in the two bands, used for offering 2G services, has reached around 90% of the money that the government had received in the 3G spectrum auction in 2010, which fetched Rs 67,718.95 crore.

Speaking after the conclusion of auctions, Telecom Minister Kapil Sibal said, "This auction has been successful but it will be really successful only when we are able to provide efficient services at relatively affordable prices to consumers. We hope services will remain efficient and tariffs affordable".

In the 900 MHz band, Delhi was the most sought after circle where price increased by 106% to Rs 740.96 crore as compared to the original reserve price of Rs 359.65 crore. Prices have also increased in Mumbai (71.9%) and Kolkata (55.3%) as compared to the reserve price.

In the 1,800 MHz band, spectrum price has increased the most in Assam by more than 400% over the past 10 days.

New Delhi, February 13
The government is likely to sell its 10% stake in Indian Oil Corporation (IOC) through an off-market deal to ONGC and OIL at a discount of 10% over the current market price.

"IOC stake sale will be an off-market deal... The price will probably be at 10% discount to current market price," a top government official said. Shares of IOC today closed at Rs 244.10 per unit, down 5.07% on the BSE.

As per the current market price, the government is expected to fetch Rs 5,300 crore by selling 10% equity or 24.27 crore shares at discounted price to ONGC and Oil India Ltd. Both the companies would buy 5% each.

The official further said the final price would be decided by the EGoM headed by Finance Minister P Chidambaram. IOC shares have gained Rs 36 a piece since January 16, when the EGoM on disinvestment cleared the stake sale.— PTI

New Delhi: IOC on Thursday reported a net loss of Rs 961.45 crore in the December quarter after the government paid less than half of the due oil subsidy, negating gains made from foreign exchange. — PTI

New Delhi, February 13
To exhort listed companies and their top executives to follow 'good business practices', market regulator SEBI today cleared new corporate governance norms that require them to justify CEO salaries, put in place whistle-blower policies and have orderly succession plans.

The new norms were cleared by the SEBI Board today and the relevant provisions would be incorporated in the listing agreement soon, SEBI chairman UK Sinha said.

Speaking to reporters after the meeting of the Board, which also cleared a long-term policy for mutual funds, Sinha said any decision on the lapsed ordinance that granted greater powers to SEBI needs to be taken by the government.

The Board also cleared new KRA (KYC Registration Agency) Regulations that would make it easier for the investors to comply with Know Your Customer (KYC) requirements across various segments of the capital markets.

The approval by SEBI Board to the new corporate governance norms follows months-long discussion among various stakeholders on draft regulations released last year.

The new norms seek to check excessive salaries paid to top executives of listed companies by requiring them to justify such payments, as also all related party transactions with entities linked to promoters and directors.

The companies would also need to adopt a whistle-blower policy for employees, while the number of directorship a person can hold on company Boards would be capped, among various other measures to safeguard the interest of minority shareholders.

The new norms provide for greater oversight by minority shareholders and independent directors and check any unjustifiable payments to related parties.

They also seek to bring in a greater alignment of CEO salaries with the performance and goals of the company, while requiring disclosure of ratio of remuneration paid to each of their directors and their median staff salary.

Similar provisions have been made in the new Companies Act.

SEBI had earlier said that "on average, the remuneration paid to CEOs in certain Indian companies are far higher than the remuneration received by their foreign counterparts and there is no justification available to that effect".

Through these measures, SEBI is seeking to adopt better global practices without increasing the cost of compliances, so that confidence of the investors is brought back to market.

Among other major decisions, the SEBI Board today cleared the much-awaited long-term policy for mutual funds, which includes various proposals, including potential tax benefits, for the future growth of the sector. — PTI 

New guidelines

* As per new norms, listed companies are required to justify CEO salaries, put in place whistle-blower policies and have orderly succession plans

* The norms seek to check all transactions with entities linked to promoters and directors

* The number of directorship a person can hold on company Boards would be capped

* Through these steps, SEBI seeks to adopt better global practices without increasing the cost of compliances

Mumbai, February 13
The benchmark Sensex today plunged 255 points to a four-month closing low of 20,193.35 on poor earnings of Cipla and Coal India, weak global cues and continued worries over the domestic economy.

Banking, capital goods, refinery, metal and pharma sectoral indices suffered the most among the 11 that dropped on the BSE while realty index bucked the trend.

Overall, 26 out of 30 Sensex-based scrips fell. Drop in HDFC, HDFC Bank, ICICI Bank, ITC, L&T, RIL, Cipla, ONGC, HUL and SBI together added over 200 points fall to the blue chip index, which had gained over 114 points in the past two days.

The BSE gauge opened higher but quickly fell back on weak Asian cues. It remained in the negative terrain throughout to settle lower by 1.25% or 255.14 points - its biggest fall since February 3. Today’s closing level of 20,193.35 is the lowest since October 8, 2013 (19,983.61).

Worries over the domestic economy also led to selling after data yesterday showed industrial output contracted 0.6% in December. Retail inflation easing to 2-year low of 8.79% in January, did not help frayed nerves. The Nifty also tumbled 82.90 points. — PTI

Chandigarh, February 13
Haryana Chief Secretary SC Choudhary today urged the banks to give loans on priority to students, women and weaker sections of society. He was speaking at the 127th meeting of State Level Bankers’ Committee, Haryana, which was convened by PNB today.

PNB executive director Rakesh Sethi presided over the meeting. Sethi assured the state government full cooperation by member banks in discharging their responsibilities towards strengthening and uplifting the socio-economic condition of the people of the state and achieving different missions set by the government.

Sethi said under the ‘One Account per Household’ initiative of the Department of Financial Services, the banks in the state have linked 92% and 97% households in rural and urban areas, respectively, as on December 31, 2013, in Haryana. He said DBT scheme has been extended to 120 more districts in the country, including 13 districts of Haryana, as on January 28, 2014. The scheme is already being implemented in Ambala and Sonepat districts.