Private funds flow may be slow

The World Bank has held out little hope of recovery of rapid private investment in India. The Bank has said that a decline in private investment has been a frequent response to stabilisation and reform experiences elsewhere in the world — a natural pause follows major changes in the incentive regime as old projects are reassessed and new projects are formulated. The reforms introduced since June 1991 should lead manufacturing firms to adjust to the new economic environment by focusing production on fewer products, and merging and acquiring existing plants to exploit economies of scale.

Rating for registrars, merchant bankers soon

A rating system for evaluating domestic merchant bankers and registrars to capital market issues will be introduced shortly. The Securities and Exchange Board of India (SEBI), which has taken the initiative for this move, is now working on the parameters to evaluate the performance of merchant bankers as is done overseas, according to the SEBI Executive Director, Mr. V. H. Pandya. Once this rating system comes into vogue, the merchant banks will have to mention its rating in the prospectus of issues managed by it. The rating will hinge on the performance of the issues handled earlier bank and how it has fared post-issue.

Plan to open up defence sector to shipyards

The Centre is contemplating to partly open up the Defence sector to Indian shipyards so that they could compete with the defence shipyards in the area of submarine repairs. The country’s submarine arm is based at the Eastern Naval Command headquarters at Visakhapatnam. The Ministry is now evincing interest in Hindustan Shipyard Ltd (HSL) and has asked it to set up facilities to undertake submarine repairs.

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