Series of measures taken to keep watch on financial markets

NEW DELHI, Dec 12: Government has taken a series of measures, including setting up of additional institutional mechanisms, to keep a regular watch on financial markets, Lok Sabha was told today.

These measures also included establishment of a coordination mechanism with regulators and investigating agencies, reference to SEBI regarding the secondary market investment decision of UTI in 89 comapnies identified by Tarapore committee and setting up of serious frauds investigation office, Finance Minister Jaswant Singh said.

Submitting in the horogress report on the action taken pursuant to recommendations of the Joint Parliamentary Committee (JPC) on stock market scam, Singh said the Government was also considering bringing about other legislations like the Companies Law (amendment) bill and Government Securities Bill.

Recalling that the JPC had submitted its report on December 19 last year and the action taken report was presented on May nine this year, the Finance Minister said as desired by the JPC, Government would continue to submit periodic reports of action taken at six-monthly interval till Parliament was fully satisfied.

Soon after the minister’s statement, several congress and Samajwadi Party members sought a full debate on it.

Singh said the Government had no reservation and "we would like to have a debate on it." This pacified the opposition members.

The Finance Minister said the Government had greatly benefited from JPC’s deliberations and its wide-ranging and valuable suggestions.

While certain legislative measures such as the amendment of SEBI Act and repeal of UTI Act had already come into effect, other proposals like the amendment to the Securities Contract (regulations) Act for ensuring demutualisation and corporatisation of stock exchanges and amendment of the banking regulations act for better regulation of cooperative banks were before Parliament.

Government is monitoring developments on a continuous basis and there has been good progress in the ongoing investigations. It shall be our endeavor to see that wherever any action is pending, it is most expeditiously completed, Singh added. (PTI)

Krishna carries out minor restructuring of ministry

BANGALORE, Dec 12: Carrying out a minor restructuring of his 51-month old ministry, Karnataka Chief Minister S M Krishna today inducted two ministers to fill up the vacancies and elevated two ministers to the cabinet rank.

Ending speculations about a major reshuffle, Krishna opted to induct former Chief Secretary J Alexander and state’s special representative in Delhi T B Jayachandra and gave the cabinet rank to D B Inamdar and Raja Amareshwara Naik.

Alexander, who was recently cleared by a court of corruption charges in the classik computer case during the s Bangarappa regime, fills the Christian quota following the vacancy caused by T John who resigned after his shock defeat in the recently-held legislative council polls.

Jayachandra, a Vokkaliga who was dropped from the ministry before being sent to Delhi, makes a re-entry in place of Food Processing Minister Raju Gowda who had resigned for personal reasons, with both inductions aimed at maintaining the caste and community equations.

The new ministers were administered the oath of office and secrecy by Karnataka Governor T N Chaturvedu at the glass house in Raj Bhavan.

Krishna later told reporters that he had only filled up vacancies and that resignations of John and Raju Gowda have been accepted.

Asked if the present excercise, which puts the ministry strength to 48, would be the last reshuffle before next year’s assembly elections in the state, Krishna said he would not like to "hazard a guess".

Krishna said there would be some "minor changes" in portfolios following the restructuring.

Asked if his party was for early assembly polls, he said regardless of when the elections were held "we are ready".

To a question whether he was "comfortable" with his ministry’s strength, he said there were compulsions for it, including maintaining regional, caste and communal balance.

On induction of Alexander who was the first time MLA, he said he was "eminently qualified" to fill the quota from the Christian community.

Today’s exercise is fifth ministry reshuffle undertaken by Krishna in the last four years after he assumed the office of the Chief Minister in October 1999. (PTI)

POTA Court rejects Vaiko’s plea to attend Parliament

CHENNAI, Dec 12: MDMK general secretary and MP Vaiko’s application to a designated POTA Court to permit him to participate in Parliament proceedings was today rejected on the ground that the plea was beyond the jurisdiction of the Court.

Dismissing the application, seeking permission to take part in the debate and voting on the POTA amemdment bill in Parliament, designated Judge I Rajendran held that "the comprehensive relief called for by the petitioner is beyond the ambit of jurisdiction of the special Court", set up to try cases under POTA.

The relief sought by Vaiko did not fall within the ambit and scope of POTA, Criminal Procedure Code, the Prison’s Act or Tamil Nadu Prison Rules, the Judge said.

Besides, Vaiko had not substantiated his claim within any provisions of law, he said.

Noting the MDMK leader’s submission that on two prior occasions he had obtained permission from the Madras High Court in similar circumstances, the Judge pointed out that "without specially assigning any reasons and provisions of law, the petitioner has chosen this forum which professes no jurisdiction".

Later, when asked by media persons about the next course of action, MDMK advocates said that question of moving the High Court for the relief would be discussed.

"Most probably we will move the High Court", MDMK advocate Nanmaran said.

Vaiko and eight of his partymen were arrested under POTA in July last year for allegedly speaking in favour of the banned LTTE at a public meeting at Thirumangalam in Madurai district on June 29.

Earlier, Vaiko was brought under heavy police escort to the high security court at Suburban Poonamallee. (PTI)

Opposition walkout in Rajya Sabha over minister’s remarks

NEW DELHI, Dec 12: Main opposition Congress, Left parties and RJD today staged a walkout in Rajya Sabha protesting against the chair not responding to their demand to expunge what Congress called "baseless" allegations made against its leadership yesterday by a minister in connection with the Jogi episode.

The walkout came came after Deputy Chairperson Najma Heptulla said she could not respond to their demand immediately as she was not aware of what decision the chairman had taken on the issue.

Soon after question hour, leader of the opposition Manmohan Singh charged Information and Broadcasting Minister Ravi Shankar Prasad with making "baseless allegations against top leadership of the Congress" on which the party was "very much exercised".

Singh said the minister was asked to substantiate his allegations yesterday during the course of discussion on Prime minister’s statement on Judeo incident.

But the minister had not done so far, he said adding the chair had also agreed to look into the issue and expunge the remarks.

Prasad had remarked yesterday that former Chhattisgarh Chief Minister Ajit Jogi was "dumped" for having shown the courage to name Congress president Sonia Gandhi in a taped conversation.

This had resulted in uproarious scenes leading to abrupt adjournment of the House as Congress members led by Pranab Mukherjee challenged the Minister to furnish proof of his claim.

Prasad should either authenticate his statement or apologise for his remarks, they said. The chair had also offered to look into the record.

"Most obnoxious remarks have been made against our top leadership in connection with the so-called Jogi affair and this was followed by sloganeering agains the party’s leadership," Manmohan Singh said adding this was something which did not add to decorum of the House.

"We had a meeting in the chairman’s office (in this regard) and we will like to know the status of the request," he said.(PTI)

World Bank to double assistance to India
to $3 bn in 2-3 yrs

NEW DELHI, Dec 12: World Bank today indicated that it will double its lending to India to 2.5-3.0 billion dollar annually within 2-3 years, and said it plans to raise 100 million dollars from the domestic market through bonds.

"We have already discussed with Government, which wants the bank to increase our lending. Our funding to India would increase substantially in the next 2-3 years," World Bank Country Director Michael Carter said after launching a `country-level development marketplace’ initiative here.

Indications are that World Bank would step up loan sanction to 2.5-3.0 billion dollars by 2007 from 1.7 billion dollars during July 2003-June 2004.

World Bank’s announcement of hiking loan sanction to India comes a day later ADB expressed willingness to increase its lending to 1.7 billion dollar from next year.

"We are planning to sanction loans to 10 ne&127tructure, HRD, rural livelihood and fiscal and structural reforms of states.

Referring to Finance Minister Jaswant Singh’s plan of heralding in a second green revolution, Carter said, "our asessement is that — what is needed in rural development is substantial increase of investment in agriculture."

He said the World Bank was eager to offer assistance to India in development of rural roads, electrification, irrigation and R&D.

"We are also talking to State Governments of Orissa, Tamil Nadu and Punjab for fiscal and structural adjustment," Carter said.

The bank was also eyeing major infrastructure projects including roads (two of the National Highway Development Programme), railways, power and water.

Carter said although he favoured private particiaption in infrastructure project, the Government has to commit bulk of the investment, especially in areas like irrigation.

Of the total 1.7 billion dollar sanctioned by World Bank, Carter said, half was through IBRD’s market related rate and the remaining through IDA’s concessional loans.

The bank would discuss the next round of IDA loans with the Government next year, he said.

The portion of IBRD loans would go up substantially as there were some restrictions on the IDA loan sanction to India.

On the proposed bond issue, he said World Bank had received all necessary clearances for raising 100 million dollars (about Rs 450 crore) from the domestic market through rupee-denominated bonds.

"Government approved the bonds a year ago. But our treasury department has to decide on the time of the bond issue," Carter said.

The bond issue would be part of World Bank’s overall borrowing and the fund would be part of the pool used to finance infrastructure, education and health sectors of the country. (PTI)

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