Operators hadhope that the buyback shares would produce enough heat for a strong upsurge in share prices but for the stricter norms of the scheme that could enable only a few corporates to buy back their stocks.

On the contrary, the market witnessed extremely narrow movements adversely affecting the volume of business after promulgation of buyback ordinance last Sunday.

The rally, albeit small in the last two days, when FIIs showed up as net buyers had proved that the capital market heavily depend on this particular foreign support.

Bear operators were hesitant in the first two days even when the market was in oversold zone, despite small to modest buying from domestic institutions, and covered their short sale positions only after FIIs steppd up purchases.

Brokers had underlined the need of fresh steps by the Government to restore the depressed capital market or aggressive purchases by domestic institutions and funds to inject confidence in the investors.

Market sources said operators were avoiding purchases in bulk which was the main reason for the narrow movements.

The BSE sensitive index, that initially fluctuated in a narrow grove, later showed good activity at the fag end closing the week at 2884.37 as against last weekend close of 2812.49, netting a gain of 71.88 points. The BSE-100 index improved by 22.44 points to end the week at1283.22 from previous weekend close of 1260.78.

The BSE-200 and the dollex were quoted remarkably up at the weekend at 297.19 and 116.89 compared with last weekend close of 293.73 and 115.42 respectively.

On the NSE, S&P CNX nifty and S&P CNX defty firmed up by 11.95 points and 10.25 points to close the week at 840.80 and 688.75 as against last weekend close of 828.85 and 678.50 respectively. The CNX nifty junior, however, dipped by 17.00 points to end the week at 1406.20 from previous weekend close of 1423.20.

The total volume of business on the BSE and the NSE was very low at Rs.3722.33 crore and 4582.24 crore as compared to last week’s turnover of Rs.6172.39 crore and Rs.7189.55 crore respectively. (PTI)

Altogether 445 accounts make up the sum SBI is seeking to recover through legal means, which includes Rs 812.08 crore from big bull Harshad Mehta, the Central figure in the securities scam of early 1990s.

Bank of India follows SBI with Rs 1,112.75 crore stuck in litigation against 279 borrowers and the next is the troubled Indian Bank with 175 accounts having to pay up Rs 1,001.58 crore.

Bank of Baroda is attempting to recover Rs 606.36 crore through access to legal course.

As per the list, C R Bhansali’s curb capital market ltd owes Rs 58.09 crore to SBI, Rs 3.84 crore to State Bank of Travancore and Rs 2.61 crore to Bank of Rajasthan Ltd.

A sum of Rs 7.10 crore is due to bank of Tokyo-Mitsubishi from CRB Capital Ltd, while CRB Corporation Ltd has to pay Bank of Rajasthan Rs 4.50 crore, Rs 8.50 crore to Vysya Bank, Rs 7.52 crore to UTI Bank and Rs 11.03 crore to Indusind Bank. Hyderabad-based Asia Pacific Investment Trust Ltd, which has field Marshall S H F J Manekshaw as one of its directors, owes Rs 2.78 crore to State Bank of Hyderabad and Rs 1.05 crore to State Bank of Mysore.

Mumbai-based All Seasons Foods Ltd, a company under liquidation and having Mahesh Jethmalani as one of its directors, is supposed to pay Rs 2.79 crore to Mashreq Bank, Rs 2.41 crore to Industrial Finance Corporation of India and Rs 1.25 crore to Deutsche Bank AG.

Bifora Watch Co Ltd is required to pay SBI Rs 2.32 crore, Industrial Development Bank of India (IDBI) Rs 13.08 crore, IFCI Rs 4.66 crore and ICCI Rs 7.84 crore, while sister company bifora clock industrie owes SBI Rs 1.39 crore.

East West Travel and Trade Links Ltd, which promoted the now defunct East West Airlines, owes Rs 9.74 crore to Dena Bank, Rs 18.39 crore to State Bank of Travancore, Rs 11.39 crore to SBI, Rs 16.87 crore to State Bank of Hyderabad, Rs 100.71 crore to Indian Bank, Rs 2.55 crore to Vijaya Bank and Rs 9.63 crore to United Western Bank Ltd.

Bank of India has claimed Rs 2.48 crore from Lazard Credit Capital Finance Corporation and SBI Rs 7.67 crore from TATA Mills Limited and Rs 62.60 crore from J K Synthetics Ltd. (PTI)

This is one of the suggestions put forth in a paper prepared by the chamber for the revival of the capital market.

SEBI Board should comprise of representative of industry nominated by Chambers of Commerce, Chartered Accountants, nominees of association of Mutual Funds of India, representatives of Association of Merchant Bankers of India and only one-sixth of the board should consist of Finance Ministry, Reserve Bank of India (RBI) and Industry Ministry representatives.

The paper has also urged for prompt implementation of Dr S Acharya Committee’s recommendations as they will be important in for stering a healthy and efficient capital market, particularly when the economy is suffering from serious lack of demand both for investment and consumption and investments in new ventures are constrained due to lack of capital.

The PHDCCI paper has suggested that domestic savings be increased to 30 per cent of GDP and mutual funds should increase the capital and net investible funds and the proceeds of increased savings should go in for investment in secondary markets.

There is a need to design appropriate instruments to arouse the investors interest for investment both in domestic and in foreign markets, like Resurgent India Bonds (RIBS) of State Bank of India (SBI) and proposed Millennium Bonds (UTI) and new bonds with inflation indexed and suitable tax rebates. At least, deployment of 10 per cent of Provident Fund (PF) resources through FIS and investment institutions like UTI should be permitted by Government.

Insurance sector’s reforms are a must for mobilising the public savings for financing long-term funds for infrastructure projects, says the chamber. If insurance growth is pegged at four per cent of GDP, then about 15 to 20 billion dollars long-term funds could be mobilised, as even Rakesh Mohan Committee has also emphasised generation of 80 to 85 per cent funds internally for infrastructure needs. (UNI)

All the three projects, estimated to cost around Rs 1,000 crore, would be set up by a Yemen-based company Vavasi Oil and Gas Pvt Ltd, Patnaik told.

The Chief Minister said the Managing Director of the company, Farid Arifuddin informed him the decision to set up the projects, after having a series of deliberations with the officials of Singapore-Gopalpur port consortium and the officials of the TATA Iron and Steel Company (TISCO) over the last few weeks.

The company has decided to finally locate its proposed projects within the Gopalpur port, he said.

The basic raw material of the petro-chemical complex would be natural gas from the republic of Yemen, which had proven and established its reserves, Patnaik said.

He said the Yemen Ambassador to India, Ibraim Sadi called on him last month to assure him support of his Government to the company.

The company would also establish 1500-2000 mw floating power plant along with a fertiliser plant, he said.

The capacity of the proposed fertiliser plant would be more than one million tonnes per annum, Patnaik said.

Vavasi Oil and Gas Private Limited has been promoted in India by the Yemen-based company Al Manhal. (PTI)

CERC will appoint consultant: Rao

NEW DELHI, Nov 8: The Central Electricity Regulatory Commission will appoint a consultant within next couple of weeks to advise the commission on framing grid code for inviting private companies to participate in the transmission sector, CERC Chairman S L Rao has said.

The commission has already identified consultants and the process of finalising the appointment would be completed within next two weeks, Mr Rao told and added that the code would be ready within three months.

"As we do not have much expertise in the field, an international consultant would be appointed to advise the commission on this aspect," Mr Rao said.

The commission has appointed a committee to frame the grid code under the chairmanship of Mr D P Singh, a CERC member, he said. The committee is closely working with players in the field of power like NTPC and Power Grid Corporation of India Limited (PGCIL).

Since PGCIL is running many grids, it is essential to have code before private players are invited in the field, he said.

The code would not comprise rigid rules and regulations and amendments could be effected in few months after it was framed, he said.

It was upto the PGCIL to identify the sectors of grids which would be opened for private participation, Mr Rao said.

Meanwhile, Mr R K Madan, PGCIL director (projects), said the Britain-based National Grid Corporation, Hyundai of Korea and Esckom of South Africa have evinced keen interest in entering the transmission sector.

However, the private companies which will be invited in the transmission sector would not be allowed to operate the transmission lines, which will be the sole responsibility of power grid, PGCIL Chairman cum Managing Director R P Singh said. The private companies, on the other hand, would build and maintain the lines.

The details of the private sector participation would be expelled by PGCIL only after grid code came into effect, Mr Singh said. (UNI)

HP Govt is formulating new industrial policy

SHIMLA, Nov 8: The Himachal Pradesh Government is formulating a new industrial policy envisaging scientific management of resources and giving an impetus to the industrial growth based on locally available raw materials in the state.

Industrial investments are on the rise specially in cement, electronics, spinning and textiles, pharmaceutical and engineering sectors. At present about 75 projects with an anticipated outlay of about Rs 50 billion stand approved and many of them are under various stages of implementation, according to an official spokesman here.

There are more than 27,000 industrial units employing nearly 1.39 lakh people in the state. The total investment of medium and large scale industrial sector has been to the tune of Rs 2,000 crore. The investment in the small scale sector is about Rs 2,500 crore.

The spokesman said an attractive package of incentives, facilities and concessions will be given for the new projects.

The Government is also removing the procedural bottle-necks. The entrepreneurs are no longer required to obtain approval of the government for setting up of units in the medium and large sector. It has also been decided to simplify rules for transfer of land for industrial purposes.

The spokesman said in order to ensure expeditious clearances from the respective departments for setting up of new units,a three-tier mechanism was being adopted. Under it a review and monitoring committees have been constituted at the district level to sort out the issues related to coordination among different departments. An industrial promotion cell is being set up which would help the entrepreneurs in expediting clearance of their units.

The spokesman said on the request of the State Government the Central Government had allowed tax holiday for industrial units in Himachal Pradesh upto 2000 AD.

To ensure that clean environment of the state is not effected eco-friendly and pollution-free units such as electronic, units based on information technology, soft ware technology, cyber cafes and information kiosks would be encouraged.

The state has also tremendous potential for setting-up of industries based on horticulture, agriculture, floriculture, medicinal and other herbal produce, he said. (UNI)


All India tax and company law conference from Nov 13

NEW DELHI, Nov 8: A multi-pronged strategy to check the proliferation in direct and indirect tax litigation and reduce the huge pendency of cases is expected tobe evolved at the two-day "all India tax and company law conference" on November 13 and 14 1998.

The seminar to be inaugurated by Finance Secretary Dr Vijay Kelkar and addressed amongst others by Revenue Secretary, chairman CBDT and CBEC, y Law Secretary and tax experts is being organised by the Associated Chambers of Commerce and Industry of India (ASSOCHAM).

The strategy entails curbing the tax authorities from passing erroneous orders leading to "illegal demands" of taxes, interest and penalties due to their obsession with fulfilling revenue targets, pre-determined by higher authorities.

Tax authorities most often do not act according to law. "There are huge demands, high pitched assessments, unsustainable orders passed ex-parte and violative of natural justice, without the revenue discharing its onus of proof and without giving to the assesses the benefit of doubt even in matters of fiscal laws involving interpretation thereof."

The tax authorities are not guided by the law declared by the courts and tribunals which are binding on them and they tend to pass orders which do not stand judicial scrutiny.

The income-tax law is fairly complicated which keeps on adding to the proliferation of litigation because the officers do not apply their mind nor do they give any opportunity of hearing to the assessee and rise illegal and whimsical demands of tax, interest etc. In the most illegal and arbitrary manner.

The work of the assessing officer is virtually passed on to the subordinate staff and the officer does not even know what exactly has been sent as intimation to the assessee concerned. According to the seminar paper the regular assessment process is another area in which the Government and its revenue functionaries need to give immediate thought.

There should not be a casual and careless approach nor the stereotyped questions or questionnaire to be issued for making scrutiny assessments. The assessing officer must in every case be making an assessment.

Often the tendency is to find out something which falls outside the purview of computation of income and wealth and make additions thereof as unexplained income or wealth.

The tendency is invariably to err on the side of the revenue and not to act in a manner justifiable in law.

The quasi-judicial nature of the powers and functions of an assessing officer in making an adjudication is often forgotten and the impartiality expected of the functionary is missing.

The paper pointed out that it is the failure of the assessing officer to render effective justice which drives the aggrieved taxpayers to the need for litigation so as to obtain relief which drives the aggrieved taxpayers to the need for litigation so as to obtain relief in the manner permissible in law. In appeallate process, judicial interventions also nothing but the judicial review of the action and orders of the authorities below.

It should be made incumbent on the assessing or adjudicating authority to pass orders strictly in accordance with law and not to deviate therefrom in any manner whatsoever.

It should also be made obligatory for the assessing officer concerned to study the relevant case laws before taking a decision in the matter of assessment or adjudication.

Tax payers, who are subjected to search and seizure under different tax laws, are faced with more serious problems for the reason that the tax authorities do not give to the tax payers concerned all the records, documents, and evidences taken away from the assessee concerned and also those collected from outside sources nor do they provide the assessee an effective show cause notice promptly.

The departmental authorities take their own time, some times years, to study and analyse the records and to make out a show cause notice but when it comes to the assessee, neither the records are given back to assessee nor is the assessee given adequate time to deal with all the factual and legal aspects arising from the show cause notice. (UNI)

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