Hoffland Finance's `safety first' deposit scheme seems to be a unique one. Apart from 18 per cent interest, depositors will be given share certificates of Group A companies in lieu of the principal amount which has to be a minimum of Rs 35,000. If the value of the scrip rises by more than 20 per cent during the course of the year, the depositor will have to refund the excess amount. Similarly, he will be provided with more share certificates if the scrip price falls by 20 per cent.

In fact, the share certificates can even be transferred in the name of the depositor. The catch, however, is that the shares cannot be sold. Neither is the depositor entitled to any dividend or bonus issued by the company.

Cholamandalam pares rates

After Sundaram Finance resumed and revised its FD rates early this month, Chennai-based Cholamandalam Investment & Finance Company has announced its decision to pare deposit rates. One a one-year deposit, the company is now offering 14 per cent. Similarly, on the two-year and three-year deposit, the new rates are 15 per cent and 15.5 per cent, respectively.

Apart from the downward movement of interest rates post-credit policy, the low rates can also be attributed to the fact that the company has already collected Rs 175 crore (target for the full financial year) in the first-half itself.

Hectic activity in Reliance Petro

The zero per cent Reliance Petroleum 2001 debenture has been attracting a lot of buying interest on the wholesale debt market of the National Stock Exchange. On May 6, for instance, out of the total traded value of Rs 94.13 lakh in this segment, Reliance Petroleum alone accounted for Rs 70.99 lakh. While the price rose from Rs 41.50 to Rs 42, volumes registered a high of 169,400.

Market sources say the hectic activity in the counter is because a cash-rich corporate, which has raised substantial low-cost funds abroad, is buying the paper.

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