Andhra Bank postpones issue
Mumbai: Andhra Bank Ltd. will postpone its issue slated earlier for October 1999. This is owing to the lack of consensus among its board of directors. The board felt that the third quarter of 1999 was cluttered with too many public issues, and that Andhra Bank may not get a good price for its issue. A final decision in the matter will be taken when the board meets again in the first week of October 1999.

Some sources attribute the postponement to qualifications made by auditors of the bank regarding the bank’s internal systems, and credit facilities granted to some directors under the credit card scheme.
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Lots of companies seeking ‘nidhi’ status
New Delhi: The department of company affairs in consultation with the Reserve Bank of India is processing applications from a large number of companies which are seeking declaration as 'nidhis' or a ‘mutual benefit societies’ under the Companies Act 1956.

Section 620A(1) of the Companies Act 1956 states that a nidhi or a mutual benefit society is a company which the central government may notify and declare as a nidhi or as a mutual benefit society.
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DLD telephony tariffs may become cost-based
New Delhi: The Telecom Authority of India may convert domestic long distance telephony tariffs into a cost-based system once the sector is opened for private operators during year 2000. B K Zutshi, vice chairman, Trai, hinted this by saying that even in a revenue sharing system, the tariff structure can be cost-based.

Private telecom operators feel that the DLD telephony licence fee should not be greater than five per cent of gross revenue. They feel that in metropolitan cities this percentage can be slightly higher. But, in small towns, private operators want a fee waiver if the telephone density has to be increased in accordance with the telecom policy.
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BIFR starts removing nominee directors
New Delhi: The Board for Industrial and Financial Recontruction has removed 19 nominee directors it had appointed on 27 companies’ boards. It is planning to remove a further 65 by the end of 1999. These are persons who have crossed the age of 65, the limit fixed by BIFR. The BIFR is also considering a proposal to prohibit its special directors from also practising as chartered accountants.

In a recent meeting, banks and financial institutions urged the finance ministry to close down BIFR. It is claimed that the recent moves by BIFR are aimed at soothing these banks and financial institutions. Only in late 1998, banks and financial institutions were seeking a further strengthening of BIFR.
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Law suit against genetically engineered seeds
Washington: Major agro-chemical companies in the business of producing genetically engineered seeds will be sued for billions of dollars by two farm and environmental groups in the US. These groups claim that the concerned companies possess huge control over genetically engineered seeds. The anti-trust lawsuit is expected to be filed by 1 December 1999.
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IMF lending at record high in 1998-99
Washington: The International Monetary Fund lent $30.5 billion in the financial year ended 30 April 1999, an all-time record. In 1997-98, its lending was $27.3 billion.

In 1998-99, Brazil borrowed as much as $9.7 billion, thus making it the biggest debtor country last year. Russia followed with $5.6 billion.

The IMF feels that the major economic problems that troubled most parts of the developing world are over. At the same time it says that countries such as Ecuador and Indonesia have to be watched for a sustained period to be assured of stability.
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