Preference shares outside ECB norm

The Government has clarified that issue of X preference shares by Indian corporates would be treated as equity issues and would fall outside the guidelines or the cap on external commercial borrowings (ECBs). The proposals from the companies for the issue of preference shares to foreign investors would be treated as proposals for foreign equity induction and will be processed through the automatic Reserve Bank of India (RBI) route of the Foreign Investment Promotion Board (FIPB) as would be applicable.

Reliance raises PSF prices

Reliance Industries has increased prices of polyester staple fibre (PSF) by Rs. 1,000 per tonne to Rs. 51,000, following improved demand for the product. Meanwhile, Bombay Dyeing was likely to hike DMT prices by at least Rs. 1,500-2,000 per tonne, industry sources said. The basic price quoted by the company was Rs. 30,000 per tonne, on which discounts were given. Speculation is rife with respect to the DMT plant being shut down by Bombay Dyeing on account of a severe shortage of paraxylene since two days, according to market sources. Paraxylene prices internationally are reflecting a firm trend.

ECGC capital base enhanced

The equity base of Export Credit Guarantee Corporation (ECGC), a PSU, has been enhanced from Rs. 75 crores in 1996-97 to Rs. 150 crores this year. The capital base of the PSU was boosted, with the Union Commerce Minister, Dr. B.B. Ramaiah, today handing over a demand draft of Rs. 75 crores to Mr. D. Mehta, Chairman and Managing Director of ECGC. It may be recalled that last year, the Government had disbursed Rs. 25 crores to ECGC for raising its capital base from Rs. 50 crores to Rs. 75 crores.

comment COMMENT NOW