• DoT rejects finmin’s wait list plan for 3G : GoM set up to look into 3G auction
• Govt may bond directly with RBI for debt
• New regulatory regime for drug cos on cards
• Sensex slips 248 points, ends at 8,198
• NDTV demerger soon, seeks shareholders’ nod
• Pfizer, Sanofi vie for Wockhardt biotech
• Department of telecom (DoT) is learnt to have turned down finance ministry’s proposal to put successful bidders for 3G spectrum in a waiting list in nine circles, including Delhi, where there are not sufficient airwaves to accommodate four private players. DoT is also learnt to have decided that once 3G airwaves auctions take place, there will be no further auctions for 12 months and the highest bid in the first round will be taken to be the reserve price when the second round of 3G auctions are held. Meanwhile, Govt has constituted a 10-member panel of ministers led by external affairs minister Pranab Mukherjee to look into the auction of third-generation (3G) spectrum. However, it is felt that the Group of Ministers (GoM) cannot take any policy decision since the model code of conduct for the Lok Sabha elections is already in place. (ET)
• Government is looking at private placement of bonds with the Reserve Bank of India (RBI) in the coming fiscal year starting April 1 in order to raise funds without directly affecting the bond market. Leading economists, including members of PM’s economic advisory council (EAC) have strongly opposed the thinking on the ground that it would undermine the fiscal discipline of govt. The Fiscal Responsibility & Budget Management (FRBM) Act prevents the central bank from directly buying government bonds except in exceptional circumstances, apart from setting limits on deficits in general. (ET)
• According to sources, Govt is considering a proposal from the department of pharmaceuticals on a new regulatory regime for the country’s pharmaceuticals sector suggesting comprehensive changes in the laws governing research funding, drug discovery, clinical trials and approvals at different stages. The proposal seeks to catapult domestic drug makers into the global league of inventors from being successful copiers of expensive multinational brands and encourage investment in high-risk research, testing experimental drugs on animals, protecting costly research data shared with the regulators and everything needed to transform the country’s drug makers into leaders in scientific breakthroughs. (ET)
• The 30-share Sensex of Bombay Stock Exchange (BSE) closed at 8,197.92 points down by 248.57 or 2.94%. On the other hand, the broader S&P CNX Nifty of National Stock Exchange (NSE) lost 68.50 points or 2.59% to end the day at 2,576.70 points. Despite a rate cut by the RBI and a further dip in India’s headline inflation, the domestic equity bourses continued with their loosing streak as the deteriorating fiscal deficit situation and a falling rupee dampened investors sentiment forcing foreign institutional investors (FII) to pull out from the Indian market. According to the provisional figures provided by the BSE, FIIs were net sellers to the tune of Rs 590.92 crore on Thursday while domestic institutional investors (DII) were net buyers worth Rs 479.04 crore. (FE)
• New Delhi headquartered media conglomerate New Delhi Television (NDTV) has announced that it would seek approval for the segregation of its news and entertainment businesses from its shareholders and creditors this month. The co will hold separate meetings of its equity shareholders, secured creditors and unsecured creditors on March 24 to mull and decide over the scheme of arrangement between the company and its subsidiaries, which proposes to segregate the news and entertainment businesses. The decision to split into two groups of companies – with one arm focusing on the news business, and the other concentrating on the entertainment business was made public last October and both the co.s are expected to be listed on the BSE. The move once operational, will enable the media co to raise capital as the current policy framework doesn’t lay any FDI limit for non news entertainment companies. It may also actually allow NDTV to raise funds for the news arm with the aid of revised FDI policies, once the market conditions improve.(FE)
• World’s largest drug company, Pfizer, and French drug major Sanofi-Aventis are learnt to be in the race to pick up a significant slice of India’s sixth-largest drugmaker Wockhardt’s biotechnology business, which would give Wockhardt a global presence. According to sources, if there is a complete buyout, the deal could touch Rs 250 crore. Wockhardt, which has a market cap of Rs 780 crore, may have to hive off its biotech business into a separate company to clear the way for another co to pick up stake. Cash from the sale would also allow Wockhardt to pay off its foreign loans. (ET)
