Banks agree to give UTI loans at sub-PLR

Public sector banks have indicated their willingness to provide a soft loan to the Unit Trust of India (UTI) at interest rates below their Prime Lending Rates (PLR) to support the package under preparation for the bail-out of the troubled US-64 scheme. The loans would be provided against the pledge of securities held by the trust. This view of the PSU banks emerged at an early morning meeting of the top brass of the country's financial sector here today which was hurriedly convened to evolve a consensus to support the bail-out package.

Onus of US-64 revamp on UTI board: Sinha

The Finance Minister, Mr Yashwant Sinha, today said that the onus of finalising the package for the US 64 investors was on the UTI board. The UTI board will have to take the decision and hopefully, it would be done by this week, he told newspersons today. Mr Sinha said that the Government would have to work hard to achieve the budgeted tax collection of Rs 1,41,000 crore. Although the Government was aware of the fact that customs collection would be lower at a time when imports are showing a declining trend, the Minister said that he was hopeful that indirect taxes would be on course to meet the target.

SEBI asked to amend rules on takeover norms

The Department of Disinvestment (DoD) has requested SEBI to amend the takeover regulations to provide for change of management control, as soon as the Government transfers its shareholding to a strategic partner. The DoD wants SEBI to permit the handing over of management to a strategic partner prior to the completion of the mandatory open offer. The justification for this is that in the case of a Government company, the risks involved in completing the transaction within the mandatory period for the open offer without effective transfer of management is far greater.

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