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RBI stresses strengthening financial markets MUMBAI, Oct 10: The Reserve Bank of India in its mid-term review of the monetary....more NEW DELHI, Oct 10: DVC Shriram Consolidated Limited (DSCL) has incorporated......more Maruti hikes prices of M800, Omni, Zen, Esteem, Baleno NEW DELHI, Oct 10: Maruti Udyog Limited today effected a Rs 3,500-4,500 increase......more JSL records net profit NEW DELHI, Oct 10: Jain Studios Limited (JSL) has recorded a net profit of Rs 2.05 crore...more |
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Kaul to head corporate communications for Agrani (Excelsior e-mail service) JAMMU, Oct 10: Ashish Kaul who manages Corporate Communications for Subhash Chandra promoted ASC .........more Excelsior Correspondent JAMMU, Oct 10: The Jammu and Kashmir Bank Limited (JKBL) decided to provide...more RBI pares GDP growth MUMBAI, Oct 10: The Reserve Bank of India has pared the country’s real Gross Domestic Product (GDP) in .....more CII outlines measures for NEW DELHI, Oct 8: Confederation of Indian Industry, while welcoming SEBI’s initiative...more |
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RBI stresses strengthening financial markets MUMBAI, Oct 10: The Reserve Bank of India in its mid-term review of the monetary and credit policy for 2000-01 has laid emphasis on strengthening the financial markets by coming out with final guidelines on issue of Commercial Papers (CPs), catergorisation & valuation of banks’ investments and financing by them of equities and investments in shares. As announced earlier by the RBI Governor Dr Bimal Jalan, no changes were effected today in the mid-term review of monetary measures such as the bank rate, Cash Reserve Ratio and the Liquidity Adjustment Facility. In a bid to boost exports, banks have been permitted to credit 70 per cent of inward remittances in exchange earners foreign currency accounts of export oriented units in export processing zones, software technology/electronic hardware parks and 50 per cent in respect of others thus restoring fully the exporters entitlements. With a view to provide flexibility and depth to the money markets, RBI has proposed to withdraw restrictions on transferability period for certificates of deposits issued by both banks and Financial Institutions (FIs). The apex bank has issued guidelines on Commercial Papers (CPs) enabling companies particularly in the services sector to easily meet short term working capital needs and at the same time banks and fis would have the flexibility working capital limits duely taking into account the resource pattern of companies’ finances including CPs. It has proposed to make rating mandatory for the term deposits accepted by all-India FIs with effect from November One, 2000 so as to improve the functional efficiencies of the money markets. The RBI has decided to extend the permission granted to select companies, which have been given specific permission to route call money transactions through Primary Dealers (PDs), currently available upto December 2000 for a further period of six months. The RBI has decided to constitute a group to suggest smooth phasing out by a planned reduction in the access to call/money markets by FIs and mutual funds. It has decided in principle to move over in due course to order-driven screen based trading in Government securities on the stock exchanges. Guidelines governing the maintenance of the constituents’ Securities General Ledger (SGL) accounts would be framed to encourage investors to hold securities in scripless form and ensure that entities holding securities in custody employ practices and procedures so that constituents securities are appropriately accounted and kept safe. With a view to strengthen financial position of banks, it is proposed to include the general provision of standard assets in their two capital in line with the international best practices. To bring about more transparency to the balance sheets of public sector banks and to provide additional disclosures, RBI has asked banks to annex balance sheets of their subsidiaries to their own beginning from March 31, 2001. Due to improvements in the payment and settlement systems, recovery climate and upgradation of technology in the banking sector, the concept of ‘past due’ for non-performing assets was being dispensed with effect from March 31, 2001. RBI said it was moving towards a risk based supervisory regime and an international consultant has submitted its project report (Phase I) in this regard and their recommendations cover vital areas like data management, supervisory process, inspections, feedback to banks and external audit among others. A discussion paper regarding credit exposure limits of banks to individual and group borrowers is to be finalised by december that would address the concept of capital funds, credit exposure in particular the coverage of non-fund and other off-balance sheet exposures and the exposure limit itself. On banks financing equities and investment in shares, RBI said the guidelines would enable the bank boards to frame suitable operational guidelines for each bank, taking into account their individual risk profiles, and provide for investments by banks in the equity market on a more stable and long term basis subject to appropriate prudential norms. Banks may formulate transparent policy for charging penal interest rates with the approval of the boards and such policy should be governed by well accepted principles of transparency fairness, incentive to service the debt and due regard to genuine difficulties of customers. In the context of the present policy of providing more flexibility and operational freedom to banks as well as Government and other enterprises, it has been decided to undertake a review of the consortium arrangement for food credit which is presently disbursed under a single window led by State Bank of India. (PTI) |
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NEW DELHI, Oct 10: DVC Shriram Consolidated Limited (DSCL) has incorporated a new IT subsidiary to mark the company’s foray into the information technology sector, DSCL Vice Chairman and Managing Director Ajay S Shriram said. The company is likely to commence business in the areas of information technology in a couple of months, Mr Shriram said. "We are studying all the options at present to finalise the business model. We are looking at software development and other IT-related activities." however, the company is not in favour of becoming an internet service provider. As a first step in its foray into the IT sector, the company has incorporated DCM Shriram International Limited (DSIL) as its subsidiary, viz. DCM Shriram Credit and Investments Limited (DSCIL). DSIL, which was originally incorporated with the main objectives of acting as export and import agents, is now proposing to commence business in the areas of information technology. DSCL has recorded a 28.5 per cent jump in net profit for the quarter ended June 30, 2000, up 28.5 per cent from 7.15 crore a year ago. Its net profit the 1999-2000 fiscal stood at Rs 34.02 crore. The company’s total sales for the quarter amounted to Rs 239.76 crore, up from Rs 178.94 crore in the same quarter last year. Prior to this, SRF Limited had decided to diversify into the high growth knowledge-based business areas of information technology and Internet Service Providers (ISP). The company has already renamed its management services department as ‘SRF Infotel’ division. Under the diversification exercise, SRF intends to design, develop, purchase, import, export, distribute and deal in all types of information technology-related software used by computers, data processing systems. It also intends to provide complete solutions in related business activities, including computer consultancy services, management consultancy services and running training centres for all uses and for all types of consumers. (UNI) |
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Maruti hikes prices of M800, Omni, Zen, Esteem, Baleno NEW DELHI, Oct 10: Maruti Udyog Limited today effected a Rs 3,500-4,500 increase in prices of all the variants of its bread-and-butter car Maruti 800 in view of the rising production costs, even as the price tags of Wagon-R, Gypsy and Alto were left untouched. The price tag of the company’s top-of-the-line luxury car Baleno witnessed the greatest increase of Rs 22,000 at Rs 7.49 lakh, followed by Zen-diesel, whose prices were raised by Rs 10,000, Maruti dealers told UNI here today. Maruti Udyog Managing Director Jagdish Khattar confirmed the move saying a marginal price hike has been effected on most of the models. "We have just passed a small part of the increased costs to the customer." MUL has increased the price of Maruti 800 standard by Rs 3,500 to Rs 2.15 lakh, while the price tag of the M-800 EX and DX versions have been raised by Rs 4,500 to Rs 2.46 lakh and Rs 2.64 lakh (ex-showroom Delhi) respectively. The price of Zen LX version has been hiked by Rs 3,500 at Rs 3.43 lakh while the Zen-diesel is now priced at Rs 3.93 lakh. The prices of Zen VX, VXI, At and Classic have been left untouched. The price of Omni 5-seater has been raised by Rs 2,150 and of the 8-seater by Rs 2,060. MUL’s entry-level mid-sizer Esteem LX has been reprised at Rs 5.02 lakh, up Rs 3,000. The price tags of the VX and AX versions of the car have been raised by Rs 5,000 each at Rs 5.51 lakh and Rs 6.07 lakh respectively. Maruti had in July dropped prices of M800, Omni and Wagon-R for a limited period of three months terming it a step to kick-start a sagging market. Prior to Maruti, General Motors and Ford had hiked prices of their various car models following increased transportation costs and falling value of the rupee, and Daewoo and Hyundai had hinted that they would follow suit. Both the korean majors had added that efforts are on to minimise the price hike. GM India had reportedly increased prices of all versions of its mid-sized car Opel Astra by Rs 4,465-Rs 7,142, while in the case of Opel Corsa, the price hike is in the range of Rs 2,680-6,700 per vehicle. The new prices (ex-showroom, Delhi) of Opel Astra models range between Rs 7.95-10.37 lakhs whereas it is between Rs 6.32-7.10 lakhs in the case of Opel Corsa. The maximum price hike was effected in the case of Opel Astra ‘Club’ model as its price went up to Rs 10.37 lakhs from Rs 3.66 lakhs. Ford India had hiked price of only one variant namely 1.3 EXI of its mid-size car Ikon by Rs 13,979 and added "this is only price positioning as the variant was priced lower at the time of launch." Hyundai Motor India Limited had stated that increasing steel prices was forcing the comany to effect a hike in prices of its models. "But we are trying to absorb a sizeable portion of the increased cost and pass on to consumer only a negligible portion," company officials had said. Daewoo had yesterday announced that the company is contemplating a hike in prices of its small car Matiz. (UNI) |
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JSL records net profit of Rs 2.05 crore NEW DELHI, Oct 10: Jain Studios Limited (JSL) has recorded a net profit of Rs 2.05 crore in the 1999-2000 fiscal, up from Rs 2.89 lakh a year ago. Disclosing this at the company’s annual general meeting, JSL Chairman Dr Jain said the company’s net worth has increased from Rs ten crore as on March 31, 1999, to Rs 42.81 crore on March 31, 2000, registering an increase of 136 per cent. A statement issued here today said gross fixed assets increased from Rs 11.37 crore to Rs 21.26 crore. Due to increased profits, the return on capital employed increased from 1.64 per cent during 1998-99 to 11 per cent in 1999-2000. Dr Jain attributed the rise in profits to the company’s various initiatives in the media sector as well as IT sector. (UNI) |
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Kaul to head corporate communications for Agrani (Excelsior e-mail service) JAMMU, Oct 10: Ashish Kaul who manages Corporate Communications for Subhash Chandra promoted ASC Enterprises Limited which is Rs.4000 crore project to launch the first commercial, multi-mission satellite, has been given additional responsiblities. He will be responsible for Corporate Communications for Agrani Convergence Limited which is a new company promoted by Subhash Chandra. Agrani Convergence Limited will set-up the largest chain of retail supermalls across the country to sell IT related products. Ashish Kaul who specialises in Corporate Communications, has worked with some of the renowned transnational companies in the world. Kaul has moved from Hinduja Group where he looked after Corporate Communications for Gulf Oil - which is one of the largest lubricant manufacturer in the world, IN TV - largest integrated media company in India and CVO Channel - which is the largest cable delivered channel in the world. Kaul specialises in Telecommunications, Chemicals and Petrochemicals, Infrastructure Development and Financial Communications. |
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Bonus for share
holders at appropriate time Excelsior Correspondent JAMMU, Oct 10: The Jammu and Kashmir Bank Limited (JKBL) decided to provide Credit Card facility to its customers from next month beside bringing all ATMs on On-Line. This was disclosed by Mr M Y Khan, chairman of the Bank while addressing customers’ meet here this evening. Mr Khan said that JKBL was committed to provide every possible facility to its customers. "We have signed an agreement with American Express to provide Credit Card facility to our customers in one month ", he said and added that this was first ever agreement of the Amercian Express with any Indian bank. He said that it was due to reputation of the Bank that American company has agreed to sign the agreement. Chairman further said that beside providing ATM facility at three more branches with 15 days, management of the Bank has also decided to bring all ATMs on On-Line to provide better service to the customers. Responding to the demands and problems highlighted by the customers during two hours long meeting, Mr Khan announced in the meeting that bonous would be provided to the share-holders of the Bank at appropriate time. Admitting that value of the Bank share has not increasing but in the same time he said that values of the shares of other financial institutions are worst that J&K Bank Limited. He, however, urged the share-holders to starting trading of the shares to increase value. Mr Khan said that Bank has formulated a comprehensive transfer system to make the system transparent. He further said that Bank has also introduced Meritorious Performance System for promotions. He was of the view that transfers of the Bank employees out-side the State were necessary to get their aware of the latest banking system. He said that Bank has arranged flats for employees transferred out-side the State to solve their lodging problem. Responding to the other demands of the customers Mr Khan said that Bank management has given enough powers to the managers of the branches to provide efficient service to the customers. He said that power provided to the managers are more than any other bank and now it is duty of the managers to utilise their powers. Chairman of the Bank informed the customers that a large number branches of the Bank are fully computerised and 25 more will be computerised with in two months. Seven days working of Bank, he said, has started in three branches of the Bank beside RCC facilities from 5 to 7 pm is also started in some branches. Terming managers and clerks as ‘back-bone’ of the Bank, Mr Khan said that Bank management has taken every possible step to provide adequate facilities to its field staff. He asserted that there was 100 percent transparency in the recruitment policy of the Bank but ruled out any possibility of making any further recruitment at large scale. Regarding demands of the customers to provide concession in commission of Demand Drafts, Chairman assured the customers that concession would be given on case to case basis. Reacting to another problem of the customers, Mr Khan said that pensioners and salary counters would be separated from customers counters to provide early service to the customers. Mr M Y Khan informed the customers that Bank management has fulfilled long pending demand of the Jammuites and a General Manager, with adequate powers to pass any proposal, has been permanently posted at Jammu. With the intention of catering to high worth quality clients, the opening of Corporate Branches one each in Jammu, Srinagar, Delhi and Mumbai is also on the cards and with this the concept of Relationship Manager shall be implemented for the first time. Chairman, however, did not subscribe to the view point expressed by one of the Speakers for decrease in the interest rate by one percentage point to encourage good pay masters. Customers' satisfaction, Chairman said is uppermost in the growth strategy of the Bank and the holding of such customers' meet stands testimony to that. He informed the participants that the frequency of such interactions shall be further improved and in addition to annual customer meeting to be chaired by him, General Manager, Jammu shall also hold quarterly meetings. This, he said, will be in addition to the customer advisory forums already constituted at all the major branches. Mr D V Gupta, General Manager presented vote of thanks. Directors on Board viz Mr Radhey Shyam, Regional Director, RBI, Mr R N Singh, Mr H S Anand, Mr D S Rana and Mr Joginder Singh, Mr P Z Lateef Ahmed, Chief General Manager, Mr D V Gupta, Mr A R Fazili, Mr Mushtaq Ahmed and Mr Shamas Farooq, General Managers and other senior executives also took part in the meet. |
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RBI pares GDP growth at 6 pc to 6.5 pc MUMBAI, Oct 10: The Reserve Bank of India has pared the country’s real Gross Domestic Product (GDP) in the current fiscal to around 6-6.5 per cent as against the previous projection of 6.5-7 per cent in its April Monetary and Credit Policy. The GDP figure had been arrived at by the apex bank, by taking first quarter (April-June) data of Central Statistical Organisation which placed the real GDP growth at 5.8 per cent as against 6.9 per cent observed in the first quarter of 1999-2000, RBI said in its mid-term review of Monetary and Credit Policy for 2000-01. The bank said the rate of inflation on a point-to-point basis, as on September 23, 2000 had almost doubled to 6.06 per cent as against 3.20 per cent a year ago. "On an average, the annual inflation rate stood at 4.96 per cent as against 4.37 per cent last year" RBI said. It has attributed the rise in inflation to a 25.9 per cent increase in the index of fuel, power, light and lubricants, particularly in the mineral oils. "This is a consequential impact of the substantial rise in international oil prices since September 1999", it said adding the increase in prices of other items among both the primary articles and manufactured products, except fertilisers, were subdued.(PTI) |
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CII outlines measures for preventing insider trading NEW DELHI, Oct 8: Confederation of Indian Industry, while welcoming SEBI’s initiative in setting up an administrative framework of procedures and guidelines for preventing insider trading, said that the procedures should avoid undue administrative burden on the companies. CII acknowledged that the prohibitions against insider trading play an essential role in maintaining the fairness, health, and integrity of the capital markets. In fact it has been recognised that the fundamental unfairness of insider rading harms not only individual investors, but also the very foundations of our markets, by undermining investor confidence in the integrity of the markets. CII however emphasised that the procedures should be suggestive in nature giving a broad framework of what is expected. It should be up to the individual company to assess its needs and to come up with detailed policies and procedures tailored to its business, company structure and unique circumstances. CII stressed that a company’s code of conduct or compliance memos should set forth the salient points of the SEBI (insider trading) regulations and it is not necessary to give employees actual copies of the law. Employees may not be able to understand what is expected of them from a reading of the regulations. However, codes of conduct and compliance memos are specifically crafted to provide comprehensible guidance to employees. A general acknowledgement from an employee that he or she has read the code of conduct and understood it, should be a sufficient undertaking by the employee as to his or her understanding of the sebi (insider trading) regulations. This would avoid undue administrative burden, according to CII. CII has stated that the compliance department should be responsible for setting forth policies and procedures for the preservation of confidentiality of information and to monitor adherence to the rules regarding thereto as far as possible. As it is conceptually impossible for anyone other than the person who possesses the confidential information to be responsible for maintaining its confidentiality, CII said that it should be the responsibility of each employee of the firm to maintain the confidentiality of such information. On the issue of pre clearance of trades, CII said that not all employees in every firm would need to pre-clear traders and hence the need for pre-clearance of employee trades should be left to each firm to be decided. While only those employees who may be privy to inside information should be required to pre-clear their trades, other conflicts can be caught in the monitoring of trades post trade date, CII elaborated. CII pointed out that it is also important that supervisory personnel in the respective business units/departments pre-clear employees trades along with the compliance officer as it is the respective supervisors, and not compliance, who are best placed to know what information individual employees are privy to. Monitoring of trades is part of the compliance department function, but it is also something that the business unit management must do as they are best placed to spot conflicts, CII added. On the need for a confidentiality agreement CII said that requiring employees to sign a confidentiality agreements is not necessary and is not in accordance with international standards. An acknowledgement of the code of conduct is considered sufficient and to require a confidentiality agreement would unduly add to the administrative burden of the compliance department, CII pointed out. On unpublished price sensitive information, CII has suggested that it should be ensured that non-material events are not included in the definition. It should also be ensured that only unpublished price sensitive information, and not all confidential information, needs to be reported to the compliance department, which is in accord with international standards. Companies should also be allowed to maintain confidential files with adequate protection, according to CII. CII has also said that the international practice of putting securities on the grey list when the firm is associated with any material assignments for a client or is otherwise in possession of material non-public information as abuse of rating change information is usually detected through front-running surveillance reports. Securities that are being purchased or are being considered for purchase are not put on the grey list in most international firms. Employees in that business unit who can take advantage of this information are restricted to trade in the said securities by the pre-clearance process. Alternatively, front-running surveillance reports would detect such trading, CII said. (UNI) |
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