The Securities and Exchange Board of India has denied approval to Bombay Dyeing and Manufacturing Co. to acquire shares in Ahmedabad Electricity Company Ltd (AEC) saying that as it was a competitive bid, the company should have made the offer within two weeks of the offer made by the Torrent Group. Bombay Dyeing’s bid was rejected as it was not in conformity with the regulations of SEBI on takeovers. According to SEBI, the bid by Bombay Dyeing to acquire the shares of AEC at Rs. 90 per share was indeed a competitive acquisition.

World Bank to develop active debt market

The World Bank has initiated discussions with the Union Government, the RBI and financial institutions like the IDBI and the ICICI to help develop an active debt market in the country. It would help to work out a mechanism that would ensure a market not only for Government securities but also for non-Government securities such as the debt instruments floated by PSUs and private companies. The scope of public issues of different types of debt instruments as in equities, too, was being explored.

FIs against recast of ITC board

The Chairman of IDBI, Mr. S. H. Khan, said today that the nominees of financial institutions on the board of ITC Ltd, who jointly hold close to, 38 per cent equity, have in principle decided against a radical restructuring of the board which may have been along the lines of Cadbury Committee recommendations. The committee of FI nominees has accepted the present board structure in ITC comprising an executive chairman aided by a vice chairman and two deputy chairmen as a satisfactory arrangement.

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