9 june 2001

jpc to take finance ministry, rbi to task
new delhi—the current joint parliamentary committee is piqued over the non-implementation of the 1992 joint parliamentary committee’s action taken report (atr) recommendations and plans to take the ministry of finance and the reserve bank of india to task in its next sitting on june 12.
the committee has asked the rbi and finance ministry officials to explain why a scam similar to the 1992 one broke out a decade later despite the earlier jpc explicitly revealing the systemic gaps and failure of the rbi’s supervisory mechanism in ensuring effective compliance by banks. the securities and exchange board of india (sebi) which was just getting into place then, in 1992, however, would not be grilled by the jpc as far as the implementation of the last atr’s recommendations were concerned. however, sebi’s laxity in monitoring the secondary markets during the current stock scam would be probed in detail.

6 june 2001

dpc lenders to resume talks today in singapore
mumbai—representatives of idbi, icici, state bank of india (sbi) met on tuesday to chalk out the strategy at the two-day meeting with offshore lenders and enron officials.
the indian team was led by mr rs agarwal, the idbi executive director, along with the other officials from other lending institutions including those from the sbi and icici.
apparently, the domestic fis, revived their efforts to convince dpc’s offshore lenders to maintain "restraint" to save the dabhol project.
the foreign lenders are expected to take a clear stand on wednesday.
enron india managing director k wade cline and dpc president neil mcgregor are likely to participate in the second day of the meeting. the meeting was also attended by a consortium led by abn-amro, citibank na, japan exim bank and opic.

5 june 2001

floater mediclaim policies terminated
mumbai-- state general insurance companies have terminated the loss-making mediclaim policies issued under floater basis to large companies.

insurers say that now companies will have to pay additional premium to make the cover "viable," if they want the policies to continue.

in a floater policy, a family is considered a single unit and the risk coverage in terms of premium paid is calculated based on the primary unit member, which means a family with any number of dependents pays just an additional 10 per cent for every member in or even just a flat 10 per cent additional premium for the entire group of dependent members.

the decision to discontinue policies issued on floater basis was taken at a meeting of the general insurers’ (public sector) association of india (gipsa) last month.

in cases where this was not possible due to market pressure, it was decided that "floater loading for individual members of the family should be arrived at after consultation with an actuary and should be complied with uniformly by all the companies."

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