The SEBI’s guidelines on preferential issues have been challenged by the Hindustan Lever group companies in the Bombay High Court. Mr. Justice Pendse admitted on September 5 the writ petition filed by HLL subsidiaries, Ponds India Ltd and Stepan Chemicals, which had proposed a preferential issue to their parent, Unilever Pic. The Ponds petition refers to the guidelines as being ‘bad in law’ and accuses them of being ‘contrary to the very concept of legitimate corporate democracy.’

BPL-Sanyo tie-up approved

Close on the heels of the green signal to Sony for establishing a fully-owned subsidiary in India for making CTVs and a wide range of other electronic items, the Centre has, given the go-ahead to the multiproduct BPL group to set up a holding company with Sanyo Electric Company on a 50: 50 equity partnership basis. Approval for setting up the holding company, BPL Finance Ltd., was accorded by the Empowered Committee under the chairmanship of the Finance Minister, Dr. Manmohan Singh.

New scheme soon to replace IPRS

An alternative to the International Price Reimbursement Scheme for engineering exporters will come into effect soon. It will accord deemed export status to the supply of steel and pig iron against Advance Release Orders, helping engineering exports stay competitive. Mr. C. M. Vasudev, Joint Secretary, Ministry of Commerce, said the IPRS was originally conceived as a self-financing scheme free of any budgetary support, but mounting arrears and the Government’s inability to subsidise exporters merely through the steel cess rendered the whole exercise infructuous.

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