State-run oil units allowed to pledge petro bonds
The Centre has allowed oil companies to pledge petro bonds as collateral with banks as well as financial institutions for raising funds. The Reserve Bank of India (RBI) will issue petro bonds worth Rs 12,800 crore to seven oil companies. The companies are IOC, ONGC, MRPL, HPCL, BPCL, Madras Refinery and Oil India.
Banks may be allowed to import gold sans duty for exporters
The Union commerce ministry has initiated talks with the Reserve Bank of India (RBI) and the department of customs and central excise on abolition of import duty on bullion by banks for exclusive purchase of exporters. Under the proposed scheme, the ministry will allow 11 commercial banks to import duty-free gold for selling it to exporters at international price.
Private-sector companies opt for funding via internal accruals
Internal accruals generated by depreciation and proceeds from assets restructuring have emerged as the preferred funding alternatives for private sector companies, according to a Crisil Research & Information Services study. The study notes that internal sources of funds have increased "substantially" from 21-24% in the last three years to 31.5% in 1996-97.
BSE plans to infuse Rs 30 crore into depository, offers stake to members
The Bombay Stock Exchange (BSE) has decided to pump in a minimum equity of Rs 30 crore in Central Depository Services (India) Ltd. The BSE is currently targeting its member-brokers to pick up an equity stake in the venture. The exchange has reportedly received commitments to raise 75% of the capital from eligible promoters.
Turn down offer from Sterlite, writes Indal to shareholders
Indian Aluminium Company (Indal) has finally taken up cudgels against Sterlite. Sushim Mukul Datta, in his capacity as the company's non-executive chairman, has sent a signed letter to every shareholder of the professionally-managed company suggesting that the Sterlite bid for 20% Indal stake be rejected.
Amitabh Kumar to head VSNL's value-added arm
The state-owned Videsh Sanchar Nigam Ltd's (VSNL) director (operations) Amitabh Kumar will head the company's value-added subsidiary, VSNL Seamless Services Ltd (VSSL). Kumar will reportedly take charge when VSSL starts its operations as a shell company from April 1.
