Today's Biz Bit

• RBI has asked finance ministry to prevent foreign investors from side-stepping foreign investment norms by taking recourse to the venture capital and has recommended that foreign venture capital investments (FVCIs) be restricted to sectors identified in Union Budget 2007-08 as eligible for benefit of tax pass-through (biotech, IT, nanotechnology, seed research, R&D to create new chemical entities in pharma, dairying, poultry, biofuels and hotel-cum-convention centers with more than 3,000 seats). It has further suggested that investment in other sectors to be treated as FDI. (ET)
• Essar Group-owned Aegis Communications has bought Philippines-based Nasdaq-listed BPO PeopleSupport for $250 million. Aegis has signed a definitive agreement to buy the firm and following acquisition, PeopleSupport will delist and Essar group will own 100% of the entity. (ET)
• ICAI has asked SEBI to make co.s conform to only those accounting norms that have been notified by government in order to make process of convergence to IFRS easier for India. It has asked SEBI to make changes in its accounting treatment prescribed in listing norms for co.s and bring them on par with directives of the National Advisory Committee on Accounting Standards (Nacas) —an expert body under ministry of corporate affairs. ICAI also wants govt to revise the threshold limit defining a public-interest entity, which is mandatorily required to adopt IFRS and urged IRDA to take steps to ensure timely convergence with global norms. (ET)
• CBEC has launched a drive to verify records of manufacturers and dealers of certain items such as iron, steel and plastics to tackle rampant evasion of taxes. It has formed special committees to collect information and scrutinise data given out by manufacturers from these sectors about production, raw material consumption and Cenvat credit availed by them. Units in exempted areas have also been put on watch and records of units that have shown adverse value addition will also be verified. (ET)
• NTPC is in negotiations to buy at least one coal mine in Indonesia and taking a long lease on another. NTPC and the recently floated SPV, International Coal Ventures (ICVL) (with stakeholders such as SAIL, Coal India, Rashtriya Ispat Nigam and National Mineral Development Corp.), will implement the overseas acquisitions. NTPC is also looking for coal assets in Australia, Mozambique, South Africa, Canada and Indonesia on its own. (ET)
• According to a circular issued by the ministry of heavy industries and public enterprises, top-level PSU executives, including directors and chief executives, will not be able to join private firms after retirement or resignation unless they get go-ahead from govt and in case they decide to join, they may have to pay damages to govt for violation of the bond or agreement signed with department concerned. (ET)
• SEBI has approved the application of Daiichi Sankyo to launch a 20% open offer for shareholders of Ranbaxy. The offer is now expected to open around mid-August. (ET)
• According to sources, 6 global defence majors (including US giants Lockheed Martin and Boeing, European consortium EADS, French fighter maker Dassault, Russian MiG-Mapo corporation and the Swedish company SAAB) have offered to invest an estimated $2 billion to $3 billion to revitalise India’s defence and aerospace industry. The companies have offered to pump in more investments, create defence exports and set up weapon-related joint ventures under the proposals. (BS)
• According to a recent ICRIER report, increase in transaction tax proposed announced by FM in Budget 2008-09 is likely to defeat the very purpose of commodity markets by forcing farmers and hedgers to exit due to greater cost. Any increase would increase the transaction cost and may keep farmers and hedgers out of market, an outcome which would fail to achieve the objectives of commodity futures markets. (Mint)