May 8, 1995
Underwriting commissions are skyrocketing in the wake of depressed conditions in the stock market, which has led to several primary issues devolving in recent times. Top merchant bankers say that several brokers and merchant bankers are extracting their pound of flesh by charging up to 10 per cent of the underwritten amount as commission, despite a ceiling of 2.5 per cent fixed by SEBI. According to market players, the underwriting fees are placed even higher than 10 per cent for companies with weak fundamentals. Sources say that while the regular underwriting commission is paid and recorded in books, the unofficial portion is adjusted otherwise.
China has sought additional one million tonnes of rice from India to overcome the food shortage it is facing, according to the Food and Agriculture Organisation (FAO). This would be in addition to the large shipments sent to China earlier this year, the latest issue of FAO’s Food Outlook said, adding that between December 1994 and end of February, rice exports from Thailand to China amounted to 6.21 lakh tonnes.
Acer tie-up to benefit Wipro
Wipro’s joint venture with Acer is different in that it may be the first time that an Indian IT company has considered a tie-up with a Taiwanese partner. With the dominant presence of the US in the IT industry, most tie-ups are either with the big names in the US with an eye to capture the US market or with European companies to cater to the EEC countries. Lately, there has been a foray into the Japanese market, but Taiwan is probably the first of its kind for a major Indian company.