The Government has decided to auction its rights entitlement in public sector companies tapping the capital market. The Industry Ministry has decided to invite bids from institutional investors to buy its rights entitlement in public offerings of PSUs. In the process, the government has ensured that the premiums offered on the renunciation will flow to its kitty, and help bridge the budget deficit. The first instance where the government has decided to auction its rights entitlement is that of Bharat Earth Movers Ltd (BEML).

60% cap for inter-corporate loans in new Co.s Bill

The Department of Company Affairs has incorporated several path-breaking proposals in the amended Companies Bill, 1993, such as introduction of non-voting shares and a higher ceiling of 60 per cent for inter-corporate loans and investments. Speaking at the All-India Tax and Company Law Conference, the Additional Secretary, DCA, Mr. G. Venkataramanan, said the Bill has also proposed do away with the group concept for the purpose of inter-corporate loans and investments. However, he mentioned that despite agreeing to the proposal of the higher outer limit, he still had a feeling that the provision could be vastly misused by companies.

Cabinet approves farm policy

The Agriculture policy, extending all the benefits of the industrial sector to farmers, has been approved “in toto” by the Cabinet and is likely to be deliberated upon in the winter session. Disclosing this to newspersons on Saturday, the Union Agriculture Minister, Dr. Balram Jakhar said that draft agriculture policy has been fine-tuned to incorporate recommendations of the Parliamentary Standing Committee on Agriculture, chaired by Mr. Nitish Kumar.

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