Investment norms relaxed

The Department of Public Enterprises has, in a modification of its guidelines, allowed PSUs to park surplus funds in any bank instrument that has ‘investment grade rating’ from a recognised agency. The guidelines, however, retain the ban on investments in instruments with ‘speculative grade rating’. As per the earlier, December 1994, guidelines, funds could be placed only in instruments with the highest rating. The new guidelines also allow the deployment of the surplus with banks with a net worth of Rs. 100 crores, instead of only in those with a paid-up capital of that amount, as stipulated earlier.

Most ITC directors to resist Malcolm Fry

Any attempt by BAT to foist its New Delhi-based representative, Mr. Malcolm Fry, on the ITC board for the chairman’s post will be resisted by a majority of the senior directors, say informed corporate sources. The ITC board was already split during the last phase of Mr. K. L. Chugh’s normal term and if BAT, the single largest stakeholder with close to 32 per cent, chooses to disturb the post-Chugh hierarchy it may further widen the chasm and harm the tobacco major in the immediate term.

SEBI declines to entertain RIL plea

The Securities and Exchange Board of India A (SEBI) has dismissed the Reliance Industries Ltd (RIL) appeal against suspension of trading its scrip by the Bombay Stock Exchange on the duplicate shares issue. Addressing presspersons here, the SEBI chairman, Mr. D. R. Mehta, said the matter was discussed with RIL officials in Bombay on the day of the receipt of their complaint. Mr. Mehta said SEBI had no jurisdiction over the matter and hence declined to entertain the RIL appeal.

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