MUMBAI: Procter & Gamble Company of the US has launched an innovative stock-option scheme for employees of Procter & Gamble India, through which all full-time employees are offered a one-time grant of stock appreciation rights (SAR) for 100 shares of the parent company. The shares were issued at an average price of $82.5 per share, the market price as on May 15 this year. The parent company will pay for the appreciation in value between the grant price and the value on the date the rights is exercised.

The programme will have a five-year vesting period from May 15, 1998, to May 14, 2003, within which employees are at liberty to exercise the appreciation rights. Employees can exercise their rights any time between after five to 10 years from the grant date, viz. from May 15, 2003 until May 14, 2008. The options become increasingly valuable if the market price exceeds the original offer price. However, the employees do not gain in case of a depreciation in the stockvalue.

Kotak Securities

MUMBAI: Kotak Securities has stopped retail operations of its fixed-deposit programmes in 10 cities including Delhi, Chennai, Bangalore, Hyderabad and Baroda from July. The firm, which will also stop funds mopup through mutual funds, UTI schemes and RBI bonds, will continue its primary equity and debt issue-related operations, according to a letter issued to its sub-brokers.

HDFC issue

MUMBAI: HDFC will privately place Rs 100 crore through a 14 per cent five-year debenture float. The issue, which is being targeted at provident, superannuation and gruity funds, has bagged top ratings from credit-rating agencies Crisil and Icra. HDFC plans to retain the oversubscibed amount and seeks to use the funds to augment its long-term resources.