Economy & Business   

Foreign Direct Investment hike proposed for the insurance sector

What is India News Service, July 23, 2004, 1700 hrs IST

The proposal to hike foreign direct investment (FDI) cap for the insurance sector could be the first casualty in the ongoing political battle over FDI with the Government understood to have expressed its willingness to the Left parties to put the move on the backburner.

Birlas opt for out-of-court settlement:The Birlas have finally broken their silence and appear to have extended the olive branch by announcing that they are willing to go ahead with an out-of-court settlement with Mr R.S. Lodha.

SEBI amends ESOS norms: The Securities and Exchange Board of India (SEBI) has amended the Employee Stock Option Scheme (ESOS) and Employee Stock Purchase Scheme (ESPS) guidelines to include provisions of mandatory disclosures of employee compensation cost using fair value of employee stock option and purchase schemes.

Corporates prefer bank deposits: Anticipating a hardening of interest rates, corporates have begun unwinding their Government securities holdings in a bid to avert losses. Sources said most of these corporates had bought into these securities last year as part of their treasury management

Agro-chemical firms pin hopes on exports: If domestic sales get affected on poor rains, the companies could look at the overseas markets.Officials of agro-chemical companies say that the prospects for the current kharif sowing season appear far from bright. Sowing has been affected in states of Maharashtra, Andhra Pradesh, Madhya Pradesh, Rajasthan and other northern states due to lack of adequate monsoons. 

Tata Steel makes profit:In spite of experiencing what was a very difficult period for the steel industry, given the spiraling input prices, Tata Iron & Steel Company Ltd. (Tata Steel), has announced a significantly improved performance for the quarter ended June 30, 2004 with a net profit of Rs. 745.49 crores.

Delta's offers additional service: Effective November 2, Delta Airlines will be offering an additional daily flight between Mumbai and Atlanta via Frankfurt. The additional service will be available till March next year. 

ONGC, Reliance in Business Week list: Eight Indian companies including the Oil and Natural Gas Corporation Limited (ONGC) and Reliance Industries Limited (RIL) have found place for the first time in `The Global 1000 List' of BusinessWeek in terms of market value.

Infrastructure perks up: The infrastructure sector perked up in the first quarter of the current fiscal at 5.4 per cent against 4.7 per cent over the same period last year despite poor growth in the cement and steel sectors. The improved performance was largely due to a steep 12.6 per cent rise in the oil refinery sector.

New stock option norms: The Securities and Exchange Board of India has amended its guidelines on Employee Stock Option and Purchase Schemes (ESOP and ESPS) to provide for mandatory disclosures, pricing and appointment of merchant bankers. 

Housing as priority sector advances: The Reserve Bank of India today said banks can classify investments in mortgage backed securities (MBS) under housing loans as priority sector advances subject to certain conditions. 

HLL beefs up corporate relations: Amid reports of squeezing margins due to price wars, FMCG behemoth Hindustan Lever Ltd. (HLL) has decided to focus on strengthening corporate relations in Delhi for which it has given the charge to Shubhabrata Bhattacharya.

Hyundai aims high: Hyundai Motor India Ltd. (HMIL) is confident of achieving a production level of 2.5 lakh units a year in its manufacturing facility in Tamil Nadu in the current year. The company is bullish on its growth and aims to become the top revenue earner in the car segment by the end of the current calendar year.

India cautioned about employment generation
: With 200 million people being added to the ranks of its unemployed every year, the United Nations Industrial Development Organisation (UNIDO) warned that India would not be able to sustain its economic growth and achieve its objective of generating employment unless
it undertakes measures to initiate significant labour market reforms.

Tyco Global to be acquired: The race to acquire the US-based Tyco Global Network is gaining speed. While the Tata run-Videsh Sanchar Nigam Ltd (VSNL) has
completed the valuation of assets and has also looked at the books of Tyco, Reliance Infocomm executives are understood to have winged their way to the US recently. 

Sensex up by 8 points
: The indices have bounced back into the green after briefly venturing into the negative territory. The Sensex is now up 8 points at 5,062. The
Nifty is up 3 points at 1,601.