The Government has reconstituted the boards of Air India and Indian Airlines by making the basic nomenclature of the board. For the first time, functional directors find place on the board. They would, however, have to be appointees of the Public Enterprises Selection Board, airline sources said here today. Currently, the directors are appointed by the respective airlines. There would be five non-official directors, nominated by the Government.

VSNL pricing to be pegged to current GDR

The pricing of Videsh Sanchar Nigam Ltd’ proposed equity disinvestment early next year will be pegged to the stock’s current GDR price, and not the domestic price, officials said. “The question — whether to peg to the GDR or domestic price — arises when there is a common book-building as is being planned,” sources said. However, the view is that the domestic price of VSNL (last quoted on the BSE at Rs. 718 per share), is under-valued due to poor liquidity. The trades in the stock are usually restricted to a few institutional players, officials point out.

IRA working on codes for merger, takeover

The Insurance Regulatory Authority (IRA) is working on the implications of mergers and takeovers, and the need to frame regulations to ensure against alteration of equity pattern of a company in violation of the legal stipulations on account of such market manoeuvres. The IRA Bill provides for a maximum of 26 per cent holding by a foreign company, while the Indian promoter would be required to divest its holding in excess of 26 per cent in a phased manner after six years of commencement of business. In addition, the Bill provides a cap of 14 per cent on the aggregate holding by FIIs, OCBs and NRIs.

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