Delhi/Mumbai, October 17
India's largest realty firm DLF today approached the Securities Appellate Tribunal (SAT) to challenge a SEBI order barring it and its top executives from capital markets for three years. The appeal would be heard by the SAT on October 22.

In a major blow to DLF, the order had been passed by SEBI for "active and deliberate suppression" of material information at the time of its IPO over seven years ago.

DLF’s initial public offer (IPO) in 2007 had fetched Rs 9,187 crore — the biggest IPO in the country at that time.

While the regulator did not impose any monetary penalty, the prohibition has barred DLF and the six executives, from any sale, purchase or any other dealings in securities markets for a period of three years, including for raising funds.

DLF had a debt of over Rs 19,000 crore as on June 30, 2014, while its already proposed fund-raising plans include Rs 3,500 crore through issue of certain bonds to replace its costlier debt. It has annual turnover of nearly Rs 10,000 crore.

This was one of the rare orders by SEBI where it barred a blue-chip firm and its top promoter/executives from market.

On Tuesday, DLF shares had plunged by nearly 30%, eroding the market value by about Rs 7,500 crore. The stock regained some lost ground in the next trading session.

In his 43-page order, SEBI’s Whole-Time Member Rajeev Agarwal said violations are grave and have larger implications on safety and integrity of the securities market.

Besides KP Singh, those barred from the markets include his son Rajiv Singh (vice- chairman), daughter Pia Singh (whole time director), managing director TC Goyal, former CFO Ramesh Sanka and Kameshwar Swarup, who was ED-Legal at the time of the company's public offer in 2007.

On October 13, DLF had said it has not violated any laws and it would defend its position against any adverse findings in the SEBI order. "DLF has full faith in the judicial process and is confident of vindication of its stand in the near future," the statement had said.

After its over four-year-long probe, SEBI found that a "case of active and deliberate suppression of any material information so as to mislead and defraud the investors in the securities market in connection with the issue of shares of DLF in its IPO is clearly made out in this case". — PTI

Chandigarh, October 17
The Canadian government aims to get a preferred trusted partner status from the Narendra Modi government, which will give a boost to bilateral trade between the two countries.

It is also hopeful of an early implementation of the Bilateral Investment Treaty between the two countries and an early end to negotiations on the FTA between the two countries. As of now, the bilateral trade between the two countries is to the tune of $6 billion per annum and there is a perfect trade balance between the two countries, with Indian exports to Canada valued at $2.8 billion and imports from the country at $2.9 billion.

Canadian Minister for International Trade Ed Fast, who was in town today, said he was hopeful that the present growth in bilateral trade (30% on a yoy basis) will grow phenomenally when the Bilateral Investment Treaty is signed. "I have met various ministers in the Modi government and I am hopeful that things will be expedited now. We see a huge economic opportunity in India and are happy at a responsive government in India to take things forward," he said.

The minister said Canada is a knowledge-based economy and India could benefit greatly with Canadian businesses coming here to set shop. "I also held discussions with Punjab Chief Minister Parkash Singh Badal today and considering the huge Punjabi Canadian population, we have identified key areas of cooperation between Canada and Punjab.

"We are in the process of identifying key deliverables that are achievable. We are looking at urban infrastructure, food security, grain storage, cold chain management, food processing, energy and biomass, education and skill development and training as areas where we could help Punjab. We will come up with a concrete plan on key areas where the two governments can cooperate," he said.

New Delhi, October 17
The Union Cabinet is expected to take up the issue of the merger of the two State-run loss-making telecom companies — BSNL and MTNL — at its meeting tomorrow, paving the way for public sector telecom operators to re-emerge as a single entity capable of taking up the competition from the private sector.

As per sources, a cabinet note suggesting the merger of the two loss-making telecom operators and its modalities, has already been moved and would be taken up for consideration at the next meeting of the Cabinet.

The issue was to have been taken up at the meeting of the Union Cabinet scheduled for Wednesday last, but since the meeting was postponed, it would now be taken up tomorrow.

Although, initially Prime Minister Narendra Modi was said to have been not in favour of the merger of the two loss-making entities, but following a presentation made by the Department of Telecom (DoT), he seems to have veered around to creating a single entity, which would not only be leaner but into which the government would pump in money to make it viable to compete in the highly competitive Indian telecom market.

In its presentation to the Prime Minister, DoT said it expects to “secure final Cabinet approval for the proposed BSNL-MTNL merger by June 30 next year”.

Ludhiana, October 17
CII Ludhiana Zonal Council organised a session with top officials from Hamriyah Free Zone, UAE Sharjah, yesterday.

Hamad Al Shamsi, head of sales, Hamriyah Free Zone Authority (HFZA), invited Indian industries to invest in Hamriyah Free Zone and shared the advantages and benefits offered by the Free Zone.

He said, “Sharjah, in the United Arab Emirates, is playing an important role as the pre-eminent industrial base of the UAE, with its unique strategic location between three continents, serving a growing market of 1.5 billion people”.

Ajay Nayar, chairman, CII Ludhiana, said, “Over the years, the key focus area of CII has been globalisation of Indian industry and its integration into the world economy”.

Muhamed Basheer, head of Overseas Promotions, HFZA, said licences are issued at the Zone in less than two hours. The types of licences are industrial (for manufacturing and assembling), service (consultancy), and commercial (general trading, import/export).

“Founded in 1995, the UAE’s Hamriyah Free Zone Authority (HFZA) is currently on the threshold of developing new horizons in industrial growth, and the UAE is India’s top export market in the Middle-East and North Africa (MENA) region, and also a prime gateway to other markets”, said Basheer.

Beijing, October 17
Volkswagen’s Chinese joint venture will recall more than 500,000 cars in China due to a defect in the rear axles, state media said today.

The German automaker, which has been in China since the 1980s, will recall a total of 581,090 cars, the official Xinhua news agency said, citing a statement from China’s General Administration of Quality Supervision, Inspection and Quarantine.

“The administration said it launched an investigation into the cars in August and the recall is the outcome of months of work on customer feedback and expert analysis,” Xinhua reported.

Volkswagen has offered to “place a metal plate in the trailing arm of the rear axles to ensure the proper operation of the vehicles in case of a rupture”, it added.

China is the world’s largest car market and is crucial for foreign automakers as sales elsewhere have slowed due to sluggishness in the global economy. — AFP

Chandigarh, October 17
In a fillip to investment in agro-based units in the state, UI Agro Enterprises Pvt Ltd in collaboration with Delhi-based Harvest Gold today started a Rs 100-crore bread manufacturing unit at Bailaspur village in Moga.

Claiming that local youths have been given recruitment in the plant, Rajnishpal Singh, managaing director, UI Agro, said the company had signed an MoU with the Punjab Government during the Progressive Punjab Agriculture Summit last year. He said another Rs 35 crore fruit juice bottling unit was being set up in partnership with Parle group in the same village.

He said the commercial launch of supply of bread has been started in Jalandhar and Amritsar and would be expanded in other areas soon.

BRIEFLY

HCL Tech Q1 profit up 32.3%; sees growth from US, Europe
New Delhi: Backed by strong growth in its US and European business, India's fourth largest software services provider HCL Technologies today posted 32.3% jump in net profit at Rs 1,873 crore for the first quarter ended September 30, 2014-15. Its consolidated revenue grew 9.7% at Rs 8,735 crore in Q1, 2014-15 as against Rs 7,961 crore in the same quarter of the previous fiscal. — PTI

Rupee snaps two-day fall, rebounds 39p vs US dollar
Mumbai: Tracking a recovery in local shares, the Indian rupee on Friday snapped a two-day declining trend and bounced back by 39 paise to end at 61.44 against the Greenback on fresh dollar selling by exporters and some banks. At the Forex market, the domestic unit commenced higher at 61.70 a dollar from previous close of 61.83. Soon after, it touched a low of 61.74. However, it rebounded on smart rise in domestic shares and fresh dollar selling by exporters. — PTI

Ambala woman entrepreneur invited to set up industry in HP
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RBI, Kenya’s central bank ink MoU for info exchange
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Star India, Hathway in war of words over channel price
New Delhi: Continuing their ongoing spat, broadcaster Star India has accused Raheja group-owned Hathway Cable & Datacom Ltd for alleged "misinformation" to consumers over increase in channel prices and passing the blame on it, which is denied by multi-system operator. According to a Star India official, while the broadcaster hasn't hiked the rates of its channels, Hathway has taken off the company's channels from regular consumer packages. — PTI

Axis Bank Q2 profit grows 18% to Rs 1,611 crore
Chandigarh: Axis Bank on Friday posted 18% growth in profit to Rs 1,611 crore in its second quarter ending September 30. It’s core operating revenue grew by 17% YOY to Rs 5,171 crore and for half yearly grew by 15% YOY to Rs 9,913 crore. — TNS