Today's Biz Bit

• According to sources, finance ministry is considering a proposal to make it compulsory for private provident funds, superannuation funds and gratuity funds to appoint an asset management company (AMC) or investment advisor to ensure that they deploy the money efficiently. Guidelines in this regard are expected to be issued soon. (ET)
• TRAI has decided to take ESPN to court and seek prosecution on ESPN’s failure to adhere to TRAI’s directive on pricing for DTH operators. TRAI is also learnt to have written to I&B ministry asking it to revoke registration of ESPN’s three channels. (ET)
• According to an ASSOCHAM study, FDI in real estate sector is likely to rise to $25 bn in next 10 years from $4 billion, even as the industry faces a slowdown in short term due to rising interest rates. (ET)
• According to sources, European buyout firm Candover is planning to open an office in Mumbai and has roped in Harsha Raghavan from Goldman Sachs to head its India unit. The co is expected to have a core team of 5 people and will partner local co.s to pursue buyouts of European firms. It would also pick up minority stakes in Indian companies looking for expansion in the European markets. (ET)
• State-run trading firm MMTC is learnt to be scouting for strategic partners, Indian or overseas firms, for its proposed SEZs to develop, finance, construct, operate and maintain the zones. The SEZs will house gems and jewelry and agro-based units. The potential partner is expected to have a net worth of at least Rs 100 crore and must also have experience in setting up such zones. (ET)
• According to sources, Italian auto major Piaggio is planning to make its upcoming engine shop at its existing Baramati plant, the global hub for sourcing powertrains. Piaggio is investing Rs 450 crore in the engine shop and will develop twin cylinder turbocharged diesel engines of up to 1.2 litre in technical collaboration with Japanese major Diahatsu Motors. (ET)
• According to sources, Tata Motors is in talks with a Norway-based company, Miljobil Grenland, to develop an electric car using alternative, environment-friendly technologies that would be rolled out in Norway this financial year while in India, it would be launched a year later.
• SEBI is learnt to have completed the process of allocating higher investment limits in bonds to select FIIs like Lehman Brothers, DBS Bank, Citicorp, JP Morgan among others. (ET)
• Infrastructure major GMR is learnt to be in race for Russia’s 3^rd largest airport, Pulkovo Airport in St Petersburg, which the Russian government had included in its privatisation list and had called bids for recently. GMR has been identified as an eligible bidder and the second round bid is scheduled to open soon. Currently, GMR is doing an internal due diligence. Pulkovo is reportedly one of the biggest aviation enterprises in Russia. (ET)
• According to sources, Temasek Holdings has shortlisted Tata Power to bid for the city state’s power generating company, Senoko Power. This would enable Tata co to enter the second round of a global bidding and would enable Tata to compete with some of world’s largest power companies to buy the Singapore company. (ET)
• SEBI has made amendments to SEBI (Employee Stock Option Scheme and Employee Stock Purchase Scheme) Guidelines, 1999, making the directors nominated by financial institutions as eligible for ESOPs, provided the director and nominating institutions sign an agreement on this and a copy of it is given to the company. Before amendment, ESOPs were meant for whole-time directors, employees and officers of an organisation. Exempt categories were promoters or directors with over 10 per cent holding in the company. (BS)
• Planning Commission is learnt to have recommended that the private company in a 50:50 joint sector infrastructure projects should be selected through competitive bidding as against the existing system of such JVs being formed through closed-door negotiations which are not transparent. The Commission has also proposed that in case where produce of these JVs are to be purchased by the public sector partner, the procurement should again be based on competitive bidding. The proposal is currently under consideration of the Committee of Secretaries, which will submit its final guidelines shortly after holding consultations with various departments and ministries. (BS)
• According to sources, U S-based lender JPMorgan Chase and Co. plans to invest more than $1 bn (Rs4,230 crore) in Asian real estate over the next three years. (Mint)
• According to sources, the pension reforms bill to set up a regulator and give more freedom to subscribers for investing their retirement money is likely to be tabled in the monsoon session of the Parliament. The official amendments are ready and the finance ministry is also learnt to be in process of finalising and issuing investment guidelines for private sector superannuation funds. (FE)
• SEBI is learnt to have decided to re-allocate unutilized debt investment limits, i.e., limits allocated to entities on June 20 and not utilized by entities by stipulated date, August 15, 2008 shall be withdrawn and allocated to the entities lower down in the list of requests received by the regulator on June 17 this year. For corporate debt, debt limits are being allocated lower down in the list after allocation to entities in waitlist. (FE)
• State governments have opposed the stamp duty exemption provided to them under the SEZ Act, 2005 and the matter is under consideration of law ministry for further clarity. Some state governments are of the view that blanket exemption from stamp duty may be misused by SEZ developers. States have also protested against exemption provided to SEZ developers for operations in non-processing areas, as they do not promote any economic activity. (FE)