• Likely removal of distinction between holding cos & holding-cum-operating cos for crucial Sectors
• RBI questions transparency of new foreign investment norms
• Sick PSEs may get nod to encash land bank
• Interim Foreign Trade Policy today
• DoT to dilute roll-out norms
• Sanofi leads race to buy Piramal
• SEBI fines Indiabulls for ‘fraudulent practices’
• GMR acquires Indonesian coal firm for Rs 400 cr
• According to sources, the govt is planning to remove the existing distinction between holding companies and holding-cum-operating companies in crucial sectors such as oil and gas, mining, real estate and construction. This will enable indian subsidiaries of multinationals to invest in the country without further govt approval. Department of Industrial Policy And Promotion (DIPP) is expected to notify the new norms shortly through Press Note 4. (ET)
• Reserve Bank of India (RBI) is likely to send its objections to the finance ministry shortly on the new foreign investment guidelines for calculating indirect foreign holding in Indian companies stating that the guidelines are non-transparent and will make monitoring of sectoral caps difficult. RBI feels that while a sectoral cap was meant to protect the interest of Indian shareholders in sensitive sectors, the new mode of calculation of indirect foreign holding provided for a circuitous way which would make monitoring of inflows difficult, in terms of maintaining the cap in sensitive sectors; checking the quality of funds and ascertaining the actual owner of the Indian investing company with foreign ownership. (BS)
• According to sources, govt planning to allow sick public sector companies raise cash by selling surplus land available with them. The proposal, which was shelved earlier on account of opposition from Left parties, is likely to make almost 1,500 acres available in the open market despite lowering demand in the real estate sector. Out of the 54 centrally-owned PSEs whose revival has been recommended, 21 are sitting on surplus land which can be offloaded to raise cash. The PSEs could either be allowed to sell them or tie up with realty companies and lease the land out. (ET)
• Commerce Minister is expected to be announcing the interim Foreign Trade Policy today. According to sources, the new policy would focus on procedural simplification of existing export support schemes and the interim policy is likely to be on the same lines as the one that was released by the previous government in January 2004. A full-fledged Foreign Trade Policy is expected once the new government takes over at the Center. (BS)
• Department of Telecom has decided to dilute the roll-out conditions for mobile companies by allowing them to fulfill their obligation within one year from the date of getting spectrum. DoT has also decided that in buildings, coverage will not be made mandatory for operators. DoT has already notified these amendments in the cellular licence. (BL)
• According to sources, the French drug major Sanofi-Aventis has emerged as the front-runner to buy a substantial stake in Piramal Healthcare (formerly Nicholas Piramal) at a more than 50% premium over the Indian company’s current share price. Sanofi-Aventis is learnt to have completed the due diligence, and the deal is expected to be closed soon. (ET)
• SEBI has slapped a fine of Rs 15 lakh to Indiabulls Securities for conducting “manipulative and fraudulent” practices in the Futures and Options (F&O) market during January to March 2007. SEBi, in its adjudication order has stated that during the period, Indiabulls Securities had carried out reversal transactions in 23 F&O contracts. Some of these transactions constituted of over 50 % of the market volume. These reversal transactions resulted in a close out difference (gains or losses due on such activities) of Rs 35.43 lakh. Replying to the show cause notice, Indiabulls has stated that it has not been involved in any fake trading or price fixing in the F&O segment, has not traded directly or indirectly in its own account in the 23 trades mentioned and that the close out difference of Rs 35 lakh was relatively a small amount and hence not suspicious and alarming. (BS)
• GMR Energy, a subsidiary of GMR Infrastructure, has acquired Indonesian coal company PT Barasentosa Lestari for $80 million (around Rs 400 crore) through its wholly-owned subsidiary GMR Energy. The move is aimed at securing coal supply to its proposed 1,500 mega watt (MW) plant in the western coast. The company is looking for locations in Maharashtra and Gujarat for the plant. GMR has paid half of the acquisition amount upfront and the balance will be paid after commercial production begins two years from now. (BS)
