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Foreign banks asked
to bring in capital for infrastructure funding
New Delhi: The Union finance ministry has
decided that foreign banks with Indian operations cannot guarantee infrastructure projects
based on just their Indian strengths, according to a report in the Business Standard.
This means that foreign banks have to bring in capital from their parents to match the
guarantees provided for such projects.
Non-fund based financing will now be
curtailed to the financial players of Indian origin. Some foreign banks are protesting
this move since their balance sheets are cleaner and stronger compared to those of some of
the Indian banks that are providing financial guarantees for infrastructure.
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Cellular
usage increases in Mumbai
Mumbai: Mumbai’s cellular phone usage has almost doubled between
1998 and 1999. It is expected to compete with the levels prevailing in some of the
developed countries, once incoming calls are made free from 1 November 1999. Hutchison Max
and BPL Mobile, cellular operators in Mumbai have a combined subscriber base of around 3
lakh.
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FIPB
decision on retail trading
New Delhi: The Foreign Investments Promotion Board has taken an
in-principle decision to allow foreign investments in retail trading. The committee set up
for this purpose has not given permission for such investments in a few other sectors.
Each sector will also have a maximum and
minimum capitalisation norm. Other conditions include dividend balancing, 50 per cent
export, and foreign exchange neutralisation.
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Inflation
increases
New Delhi: Increases in the prices of food articles and vegetables have
caused a rise in inflation to 1.7 per cent in the week ended 7 August 1999. Around a
fortnight ago inflation touched a 20-year low of 1.19 per cent.
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SBI
Securities to be converted
Mumbai: SBI Securites will be converted into a shell company with the
transfer of the stock exchange cards that it owns to SBI Capital Markets at cost price.
SBI Securities owns cards on the Bombay Stock Exchange and the National Stock Exchange.
SBI Securities, which has an equity base
of Rs.50 crore, may well become the insurance arm of the State Bank of India. Its equity
will then be increased to around Rs.200 to Rs.300 crore.
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Quasi
MMMFs to be allowed certain facilities
Mumbai: In a meeting that took place between the Reserve bank of India
and the Securities and Exchange Board of India, allowing cash, liquid and gilt funds to
offer a cheque writing facility to investors, was discussed. These funds will do this in
association with banks. The RBI feels this would encourage wider retail investor
participation in government securities.
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