PAC demands probe

The Public Accounts Committee (PAC) has found gaping holes in the disinvestment of public sector companies shares, stating that the lack of transparency in the manner in which the whole exercise was undertaken requires to be probed since it entailed substantial loss to the exchequer. In its 75th report on disinvestment of Government shareholding in select public sector enterprises, tabled in Parliament today by its Chairman, Mr. Bhagwan Shankar Rawat, the committee said it was “dismayed” to note that several alternatives were discussed by officers of the Ministry of Finance with the Finance Minister, Manmohan Singh, before the process of disinvestment was launched.

Nadkarni cautions against over-regulation

It is neither possible nor desirable to eliminate speculation, and the emphasis has to be on healthy and transparent trading practices along with prudential regulation and imposition of discipline in the securities markets, said Mr. S. S. Nadkarni, Chairman, Securities and Exchange Board of India. SEBI, he said, recognised the beneficial role of speculation within limits.

Refineries face import threat

Oil refining companies producing lube base stocks are facing trouble, with competition expected from imported products. The recent Union Budget had slashed import duty on lubricants and lube base stocks from 65 per cent to 30 per cent. This has exposed refineries like Madras Refineries Ltd. (MRL) and the Haldia refinery of Indian Oil Corporation (IOC) to competition from the imported product. Imported lubricants, consequent to the duty reduction, will be cheaper by as much as 50 per cent than the local product.

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