| Govt mulls reforms to boost foreign capital inflows |
|
New Delhi, 13 June With the rupee touching new lows against the dollar and the Centre's current account deficit remaining at a high level, the government is planning a slew of reform measures to boost inflow of foreign capital. These include raising foreign direct investment ( FDI) caps for some sectors and easier norms for the entry of foreign institutional investors ( FIIs) into the country's markets. Besides, it is looking at ways to resolve issues related to coal and gas pricing and arrest a decline in natural gas, fertiliser and crude oil production. Finance Minister PChidambaram today said the government would take a call on further FDI reforms soon, while the Securities & Exchange Board of India ( Sebi) would decide on easing norms for FIIs. He also met Prime Minister Manmohan Singh to discuss coal and gas pricing reforms. "We are looking at every sector, including defence, and every cap ( for FDI). If a cap no longer serves any purpose, it should be reviewed," he said. After a committee headed by Economic Affairs Secretary Arvind Mayaram to clearly define FDI and FII gives its report on Monday or Tuesday, the finance minister would take up the issue with Commerce Minister Anand Sharma and the prime minister. The K M Chandrasekhar Committee, set up to unify foreign portfolio investment norms, has also filed its report, which is to be discussed by Sebi at its next board meeting on June 25. Chidambaram said the government was broadly in favour of the report, which had recommended doing away with prior direct registration of FIIs and sub- accounts with Sebi, besides clubbing of FIIs, sub- accounts and qualified foreign investors ( QFIs) to form anew investor class. Turn to Page 20 > ECONOMY, P6 Cabinet defers Ordinance on food security Bill The Cabinet on Thursday again deferred a decision on promulgating an Ordinance on National Food Security Bill, as a consensus eluded the senior ministers over implementing the project through this route. Those in the know of the development said the Cabinet note on the Ordinance had already been issued but when the matter came up at the meeting, Cabinet Secretary Ajit Seth said " deferred". "CIL is on the list of firms that we have to disinvest in. The ministry is talking to the union. There are some voices of protest but we will explain to them" PCHIDAMBARAM Finance Minister KEY TAKEAWAYS |FDI: Caps in various sectors to be reviewed |Coal & gas pricing: Issues to be resolved bynextweek |Gold imports: Further hike in dutyruled out |FIIs' entry: Rules mightbe simplified |Rupee volatility: Steps being taken to address the issue |Investment: Steps to be taken to revive stalled projects and boostinflows |Rate cut: Banks asked to pass on benefits to customers MARKET UNIMPRESSED Sensex lost 1.12% from previous close to end the dayat 18,827.16 RUPEE FALLS AGAIN Compared to previous close, the rupee lost 20 p against the $ Source: Bloomberg BS Research Bureau Steps to help finance CAD, support ₹; FM promises measures to tackle coal & gas pricing ECONOMY 6 > >FM meets PM on coal, gas pricing >' If someone thinks I am here to help RIL, history will speak against him' FINANCE 4 > >~ ends weak as FM disappoints Street OPINION 11 > >After the stimulus phase- out THE SMART INVESTOR 14 > >COMPASS: Quick- fix solutions to manage INR may not work |
| CLB orders probe into Manish Mehta firm |
|
New Delhi, 13 June The Mumbai bench of the Company Law Board ( CLB) has directed the central government to investigate Jinbhuvish Power Generations. The company, promoted by a Nagpur- based businessman, Manish Mehta, allegedly duped a British investor after receiving several crores of rupees, promising "10- 12 times returns". Mehta and his group companies, including Jinbhuvish, were in focus last year for their involvement in the Purti group of companies floated by then Bharatiya Janata Party President Nitin Gadkari. The investor, Mohammed Hanif Ahmed Manjra, had routed these investments through his company, Red Apple General Trading. Jinbhuvish had announced the 1,260- Mw coal- based power project in January 2009. It was to be implemented in two phases, of 600 Mw and 660 Mw. The ₹ 3,200- crore first phase was to have two units of 300 Mw each. According to the company's website, 750 acres had been acquired. However, the requisite share certificates were not issued to Red Apple in time. On enquiry, the investor realised the ₹ 10 shares were allotted at a premium of ₹ 105 each. Following the dispute, Red Apple filed complaints with the economic offences wing of the Maharashtra police and also moved the CLB. The CLB bench has said the transaction appeared "extremely suspicious and doubtful". According to the order, which came earlier this week, Red Apple's investment of ₹ 11.58 crore was transferred into the account of Jinbhuvish between March and November 2007. " Thereafter, the said funds were transferred in the account of Aamrupa Engineering and Mining and various group companies of R2 (Manish Mehta)." The investment was clearly not spent, says the order, in the project of Jinbhuvish but was rotated among the group companies for their benefit. The bench found several transactions between Jinbhuvish, Aarya Powertech and Aamrupa Engineering. " The respondents have failed to submit any cogent explanation in this regard," it said. The order also hinted at violation of foreign investment guidelines. "Investments made by a foreign investor into an Indian company require prior permission and sanction from the competent authorities... nothing has been produced by the parties that they had obtained any prior permission or sanction as required under law for the investments in the company. This was the duty of the respondents but by not doing so, it can be inferred that they deliberately ignored the law," it said. The bench said Mehta incorporated various companies with similar names and business activities; he was a director in 36 companies. " The balance sheet of Parshwa Agrico," a group company, " if looked into itemwise raise many questions to be answered." From perusal of the entire sequence, the bench said, it was established that Jinbhuvish operated with an intention to defraud Red Apple. The company allegedly duped aBritish investor after receiving several crores of rupees, promising 10- 12 times returns |
--
Company Secretary, Chennai
This mail and its attachments (if any) are confidential information intended for persons to whom the email is planned for delivery by the sender. If you have received this mail in error please notify the sender of the error by forwarding the email and its attachments (if any) and then deleting the mail received in error and the relevant email trail in this connection without making any copies or taking any prints.
__._,_.___
No comments:
Post a Comment