SEBI puts scam onus on broker, Fll, OCB nexus

The Securities and Exchange Board of India (SEBI) has established a clear nexus between brokers, foreign institutional investors (FIIs) and overseas corporate bodies (OCBs) which led to the crash in stock prices soon after Budget 2001-2002 in its interim report on the stock scam. “Brokers received large finance from banks and corporates and used it for stock market operations,” SEBI said in its 1,500-page, four-volume interim report submitted to the Government and the joint Parliamentary committee (JPC).

HP pulls out of CMC race

Computing giant Hewlett-Packard Co (HP) has withdrawn from participating in the disinvestment of State-owned CMC Ltd, citing "limited synergies" between the two companies. "We withdrew from this opportunity several weeks ago since we felt that there were limited synergies," the HP India President, Mr Arun Thiagarajan, said. The Government is selling 57.31 per cent of its 83.31 per cent stake in CMC to a strategic partner. Earlier, over 20 companies had reportedly expressed interest in acquiring the Government's stake in CMC.

Bidders concerned over VSNL valuation

As the deadline for VSNL's loss of monopoly looms closer and the deadline for its disinvestment recedes further, prospective bidders for the 25 per cent stake in VSNL are finding their target less and less attractive. "Its valuation is certainly diminishing from our point of view," said sources close to some of the bidders. "One can see that even the scrip has fallen further — even after its Rs 50 fall when it went ex-dividend early this week. It is quoting at Rs 203.1 on Thursday, which shows the market was just holding on only for the 500 per cent dividend."