The Reserve Bank of India is considering strict monitoring of end-use of money that is raised by different companies by floating commercial paper (CP), according to banking sources. A similar monitoring is also believed to be in the offing to ensure proper utilisation of bridge loans by commercial banks. The RBI, it might be noted, has already clamped restrictions on bridge loans to finance companies… it is certain that the RBI will not allow money being raised by way of CP or provided by way of bridge loans to be utilised for unproductive or speculative purposes and thus fuel inflation.

TPL plans to enter insurance sector

Tamil Nadu Petroproducts Ltd (TPL), a company of the M. A. Chidambaram group, is planning to enter the insurance sector and the business of refining petroleum. The company is seeking shareholders permission to enhance authorised share capital from the present Rs. 100 crores to Rs. 200 crores, and also to buy back its own shares when the law permits the companies to do so.

Cellular tenders may be clubbed with basic services

The Ministry of Telecommunications might delay the proposed tender for cellular mobile phone service in the 18 telecom circles and club it with the tender for basic service. Though tenders for each service may be treated as independent of each other, the Ministry might bow to the industry’s demand to allow one company to be a total communication provider in an area. This, in effect, means that the company which gets the licence for a telecom circle to operate basic service might also be allowed to be one of the two among the cellular service providers in the same circle.

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