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ECB pre-payment norms eased
Mumbai: The Reserve Bank of India has announced that companies will be
allowed to pre-pay external commercial borrowings on the basis of a single approval from
the same authority which approved the borrowings earlier. In the case of ECBs approved by
the government, authorised dealers designated by the borrower can now make remittances
towards pre-payment/part-payment of ECBs to the extent such prepayment has been approved
by the government. The authorised dealers will not have to take RBI approval for the same.
Similarly in the case of ECBs approved by the RBI (below $10 million), the borrower needs
to take approval from the RBI alone. The approval can be sought after the borrower gives a
certificate from auditors that the ECB proceeds have been utilised for the purpose for
which these were sanctioned. The borrower will also have to enclose an acknowledgement
from the regional office of the RBI for having received ECB-2 statement for the immediate
preceding quarter.
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No move to cut PF interest rates
New Delhi: The government has no proposal to reduce the rate of interest
on provident fund accumulations. Finance minister Yashwant Sinha says cutting interest
rates on provident fund is a sensitive issue and there will have to be political
consensus. At present, the rate is 12 per cent and there have been demands from various
quarters for reducing this rate to bring down overall lending rates. The finance minister
was talking to newspersons after inaugurating the emerging markets committee meeting of
the International Organisation of Securities Commissions.
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GIC MF to help cyclone
victims
Mumbai: GIC Mutual Fund is planning to send a team of its officials to cyclone-affected
Orissa to offer across-the-counter redemption in any of the schemes of the company.
Sources in the company said, the company is preparing a plan by which it would offer
redemption proceeds to investors even without physical possession of certificates, but
based on bankers’ verification of signature.
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Banks allowed to hedge
overseas
Mumbai: The Reserve Bank of India has allowed banks operating the gold
deposit scheme to enter into overseas hedging contracts. These banks can deal in futures
and options so that they can manage price risks. The RBI has, however, stipulated that the
banks entering into hedging arrangements should ensure that there is no net receipt of
premium, either direct or implied. Similar hedging facilities are also allowed within
India.
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Sidbi plans brand equity
fund
Mumbai: The Small Industries Development Bank of India, a subsidiary of
the Industrial Development Bank of India, is proposing to come out with a brand equity
fund for the information technology industry, the first such fund concept in the country.
The fund will help companies in the IT industry in building brands and enhancing images.
Sidbi has also plans to set up an international venture
capital fund.
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BankAm for derivatives
unit
Mumbai: Bank of America is setting up a full-fledged derivatives
department in India, which will cover investments in technology, system and people. It is
also planning to acquire a primary dealership licence.
The bank will immediately open a rupee derivatives book in
Mumbai in January 2000. The unit will offer international standard risk management
services to Indian companies. At present the bank is operating risk management services
for the entire Asian region from Hong Kong.
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