L&T to capitalise on SA power transmission biz

India's leading engineering and contruction giant, Larsen & Toubro (L&T) has joined hands with a South African company, Befula Investments to capitalize on the Power Transmission and Distribution opportunities in South Africa.

The companies have signed a Share Holders Agreement to incorporate a Joint venture company ‘Larsen & Toubro T&D SA (PTY) Ltd’.

South Africa is a great marked for power as the country, which has an installed capacity close to 44000 MW, an installed capacity close to 44000 MW. The current peak demand shortage is approximately 3,000 MW and this is expected to grow 6 per cent every year.

Sizeable investments are lined up by the Government to cater to major generation capacity addition and augmentation of Transmission & Distribution Network in the next five years, L&T said in a statement elaborating on the business opportunity.

The Transmission Lines are expected to be in 400 / 765 kV class to service the major load centers and strengthen the National Grid for balancing of power and to minimize instances of shut downs, the press statement issued on Sep 23 added.

SBI Life tops global list of 'million dollar round table' agents

SBI Life Insurance said on Tuesday it had topped the list of global insurers by increasing ‘million dollar round table’ (MDRT) members to 2,904 in 2010 from 2,677 in 2009.

The MDRT includes agents who have done insurance business of more than $one million in a year. Less than one per cent of the world’s life insurers achieved the so-called MDRT membership, it said in a statement. MDRT was a global association of about 36,000 life insurance and financial services professionals from 76 countries, it said.

No plan to cap conventional life insurance charges: IRDA

The Insurance Regulatory and Development Authority (IRDA) has said it has no plans to cap the charges levied by life insurers on traditional savings policies. 

The insurance regulator also said it would approve the new Unit Linked Insurance Plan (ULIP) in time for the players to sell from Sep 1 onwards and it is not out to micro manage the sector.

Satyam case: Court refuses to postpone hearing

Citing that the deferment petitions were without merit, a special court on Friday, Sep 24 refused to postpone the hearing in multi-crore Satyam accounting fraud case.

The petions were filed by former Chief Financial Officer Vadlamani Srinivas, and two former Satyam employees D Venkatapathi Raju, Senior Manager (Finance) and Ch Srisailam, Assistant Manager, on Tuesday, Sep 14 on the grounds that the CBI probe was still pending and the agency is still to file the fourth chargesheet.

However, the XXI Additional Chief Metropolitan Magistrate (ACCM) court agreed with CBI’s Special Public Prosecutor K Surender's arguments and dismissed the pleas.

Tata Aria To Be Launched In October

Tata Motors had sent away its multi-utility cross over vehicle Aria to Jaguar and Land Rover plant in UK for an interiors makeover and now there is news that the vehicle would be launched in India within the next 4 weeks, for a reported price tag of Rs 10 lakh. Unveiled at the 2010 Auto Expo in New Delhi it is billed as a four-wheeler built for Indians by Indian engineers.

The Aria sports a 2.2-litre common rail diesel engine and blends the functionality and comfort of a mid-range MPV with the all-terrain assurance and premiums of an SUV. Safety features include 6 airbags and Electronic Stability Program (ESP), offered by an Indian manufacturer for the first time.

Tata Motors spokesperson has confirmed that the Aria would be launched within a month and the company is keen on cashing in on the festive season. The company plans to pack the vehicle with lot of features to take on utility vehicles like Innova, Scorpio, Bolero and Xylo.

Indian Bank to expand global footprint

Indian Bank is set to expand its global footprint-step by step. As starters, the Chennai-headquartered bank is opening a full scale branch in Jaffna, the capital of Sri Lanka’s northern province. It may be mentioned that Indian Bank already has a branch in the Sri Lankan capital Colombo. The next port of call for Indian Bank outside India will be Jakarta in Indonesia, which in all likelihood will be a representative office, and then another branch in some Sri Lankan industrial town.

“We have got all necessary clearances from different departments of the Indian government including the Finance Ministry’s go ahead to RBI. We are expecting to get the license within a fortnight’s time. In such an eventuality, we are hopeful of setting up a branch there by November,” T M Bhasin, Chairman & Managing Director, Indian Bank said.

Justifying their decision to go to Jaffna, Bhasin said, “There are a lot of opportunities coming in Jaffna. About Rs 1,000 crore has been earmarked for housing development in Jaffna—mostly for rehabilitation of the Indians. Besides, there are a lot of opportunities for entrepreneurship development”.

It may be mentioned here that the bank mostly caters to the banking needs of the Tamil Diaspora in overseas locations.

A S Bhattacharya, Executive Director, Indian Bank, said that Indian Bank actually had its operations in that part of Sri Lanka way back in 1914 but that branch had to be closed afterwards. It decided to start afresh its operations in the country after Sri Lankan president Mahinda Rajapaksa asked the bank to open branch there during his recent visit to India.

Meanwhile, the bank has clocked a net profit of Rs 100 crore from its Singapore operation and Rs 32 crore from Colombo branch. “I expect that this will also become a Rs 1,000 crore branch within a few years,” Bhasin said. With the Jaffna branch being fully operational the bank is eyeing a net profit of Rs 200 crore from its global operations within a year’s time.

On the proposed Rep Office in Jakarta, Bhasin said “From our experience we have seen that lot of business originating from that region comes to our Singapore branch. We find lot of opportunities wherever there is ethnic Tamil population.”

Addressing a press conference in Kolkata, he said that the bank is hopeful of achieving 24 per cent growth in credit and deposit this year. While its credit has grown by 24 per cent during the first two quarters of the fiscal deposit has grown by 19-20 per cent. As on date total business of the bank has crossed Rs 1.62 lakh crore with deposits over Rs 96,000 crore and advances over Rs 66,000 crore. With a provision coverage ratio of 83 per cent, Indian bank is planning to bring down its gross NPA to 1.25 per cent and net NPA to 0.5 per cent. Net interest margin (NIM) of the bank stands at 3.71 as on June 2010.

BSE Sensex hits 31-mth high on U.S. data relief rally

The BSE Sensex shot to a 31-month high and ended Monday 1.9 percent higher, its best single-day percentage-point gain in more than three months, tracking global stocks as concerns about the world’s largest economy facing a double-dip recession faded after encouraging U.S. payrolls data.

Lenders contributed the most to the gains, as investors placed bets on bullish loan demand outlook in the world’s second-fastest growing major economy after China.

The Sensex gained 1.86 percent or 338.62 points to 18.560.05, with 26 of its components closing in the green. It logged its best single-day gain since May 26.

The benchmark index rose as much as 2.1 percent to 18,600.30 points, its highest since February 2008.

The benchmark index is up 6.3 percent so far in 2010, with foreign funds investing a net $13 billion in Indian equities, including primary market offerings.

For the year to date, it has outperformed its emerging BRIC powerhouses. Russia’s RTS index is up 1.8 percent so far in 2010, while Brazil’s Bovespa and China’s Shanghai Composite index are down 2.8 percent and 17.7 percent respectively.

Emerging market equity and bond funds saw a 14th straight week of inflows last week, although investors were cautious about further increasing their equity holdings in emerging economies, with net inflows into that category at $250 million, data from fund tracker EPFR showed late last Friday.

"It is really reflecting the euphoric sentiment in other markets and stronger data from the U.S. Let us not forget that, the rise we are seeing today is in response to a gain in world markets," said V.P. Chaturvedi, managing director of Tata Asset Management.

"I don’t know if the global sentiment has turned decisively because we have the situation that we have some positive news flow on one day and negative on another."

Reliance Communications shed 0.3 percent, as the second-largest mobile carrier’s plan to sell its telecoms tower business to GTL Infrastructure fell through, dealing a blow to its efforts to nearly halve its debt.

"In our view, the GTL deal would have resulted in a healthier balance sheet for RCOM, thereby making it easier to attract strategic investors," Daiwa Capital Markets said in a note, adding the failure raises uncertainty over the firm’s future restructuring efforts.

GTL Infrastructure closed 0.9 percent higher after declining as much as 6.3 percent in the day.

Leading lender State Bank of India firmed 3.1 percent while rivals ICICI Bank and HDFC Bank rose 3.8 percent and 0.6 percent respectively. Leading mortgage lender Housing Development Finance Corp firmed 0.7 percent.

Top car maker Maruticlimbed 2.5 percent after its parent, Japan’s Suzuki Motor Co, said it would build its fourth plant in India boosting output to 1.5 million units a year.

Outsourcers that reap most of their revenue from the United States rose after the better-than-expected U.S. payrolls data last Friday.

Sector leader Tata Consultancy Services rose 1.9 percent, while Infosys Technologies and Wipro firmed 2.2 percent and 0.8 percent respectively.

Firm metal prices in Shanghai and London pushed the metal makers higher.

Aluminium maker Hindalco Industries firmed 4.8 percent, after its chairman said last Friday the company plans to spend $2.1 billion in the current financial year ending in March.

Non-ferrous metals producer Sterlite Industries gained 3.7 percent while Tata Steel, world’s seventh-largest maker of the alloy, jumped 6.6 percent.

Advancing shares outpaced declining ones in a ratio of 2.3:1 in a relatively better volume of 497 million shares.

The 50-share NSE index gained 1.8 percent to 5,576.95 points. It rose to as much as 5,589.40 in the day, its highest level since January 2008.

At 1025 GMT, MSCI’s all-country world stock index rose 0.5 percent, while the more volatile emerging markets index gained 0.7 percent.

STOCKS THAT MOVED

* Hospital operator Fortis Healthcare firmed 1.3 percent to 161.50 rupees after a senior company executive said it is looking to list a real estate investment trust in Singapore in the next six months to house its property assets and is looking at a valuation of $600 million to $700 million.

* Drugmaker Aurobindo Pharma rose 1.8 percent to 1,063.75 rupees, after it signed licensing and supply agreements with AstraZeneca.

* IT services firm Persistent Systems gained 5 percent to 467.50 rupees, after BNP Paribas kicked off its coverage on the stock with a "buy" rating.

MAIN TOP 3 BY VOLUME

* Karuturi Global on nearly 13 million shares

* Prakash Steelage on 8.6 million shares

* Ispat Industries on 8.6 million shares

SBI raises BLR; loans to get costlier

State Bank of India said Monday it will raise benchmark prime lending rate by 50 basis points and deposit rates by 25 to 150 basis points from Tuesday. This will make home, vehicle and corporate loans to existing customers costlier. 

"The bank has revised the benchmark prime lending rate upwards by 50 basis points from 11.75 per cent per annum to 12.25 percent per annum effective from August 17," SBI said in a statement to the Bombay Stock Exchange. 

In a separate statement,, the country’s largest lender said it would also raise deposit rates between 25 to 150 basis points depending on the maturity period. 

The highest increase of 150 basis points will be for the term deposits with maturity period between 15 to 45 days. While the interest rates on fixed deposit with a maturity period of 5 to 8 years will witness the lowest increase of 25 basis points. 

This is the first increase in lending and deposit rates by SBI since the Reserve Bank of India (RBI) started tightening monetary policy in March. 

The country’s central bank has raised reverse repo rate (the rate at which RBI borrows money from banks) by 125 basis points, and repo rate (the rate at which the central bank lends money to bank), cash reserve ratio and statutory liquidity ratio by 100 basis points each since March. 

The most recent hike was on July 27, when the RBI raised the short-term borrowing rate by 50 basis points and lending rate by 25 basis points. 

Meanwhile, the bank announced that it would launch a new scheme linked to base rate. "The bank announces launching of floating rate term deposit products linked to base rate effective from September 06, 2010," SBI said in a statement. 

In response to the RBI’s tight monetary policy, several other public sector banks have also revised upwards their lending and deposit rates. Punjab National Bank, the country’s second largest lender, has increased its benchmark prime lending rate by 75 basis points. This is the sharpest increase among all lenders. 

Bank of Baroda, Corporation Bank and Oriental Bank of Commerce have also increased their benchmark lending rates by 50 basis points.

Aviva Life Insurance launches 3 new products

Private insurer Aviva Life Insurance on Friday launched three new products, including two unit-linked insurance plans (ULIPs).


"... The two ULIP plans -- Aviva Freedom Life Advantage, Aviva Life Saver Advantage -- offer enhanced value to the customers and meet the new ULIP guidelines," the company said in a release.

Besides, a term plan -- Aviva Life Shield Advantage -- offers a return on the premium, with optional protection against disease and disability, it added.

As per the new IRDA guidelines, the commission paid to distributors and expenses charged by insurers will no longer be front-loaded and will be distributed over the lock-in period of the schemes, which has been raised to five years from three years earlier.

Aviva Life Insurance is a joint venture between Dabur Group and UK-based Aviva Group. Dabur Group is the 74 per cent shareholder, while Aviva Group holds 26 per cent.

Munjals to buy Honda stake in JV

A series of off-market transactions will see Japanese auto major Honda exit its 25-year-old joint venture with the Munjals in Hero Honda with the entire deal likely to be wrapped up in the next six months. The deal, which will be executed in two phases, will see the Munjal family - led by Brijmohan Lal Munjal group - form a special purpose vehicle (SPV) to buy out Honda's entire 26% stake in the venture. This would eventually be thrown open for private equity participation.



According to highly-placed sources, the Japanese auto major has decided to exit the highly-profitable Hero Honda JV — which controls more than 50% of the Indian two-wheeler market — as it focuses more on its fully-owned two-wheeler subsidiary, Honda Motorcycle and Scooter India (HMSI). HMSI has been growing rapidly and is in the process of setting up a second factory in the country.



Rising friction between the two partners and HMSI's growing competition with Hero Honda were the reasons that has prompted the two partners to go separate ways, said market sources. When contacted, a spokesperson for Honda Motor Japan said, ''There is no such plan at the moment."



A spokesman for the Hero group said, ''The information is incorrect. The Hero Group and Honda Motor Co, Japan, have for years enjoyed a very cordial and fruitful relationship, resulting in millions of satisfied Hero Honda customers across the country. Contrary to market speculation, there has been no change in this relationship."

However, sources in the banking sector told TOI that the deal would be completed through an SPV formed by the Munjal family. According to the arrangement being worked out, a foreign bank will extend a loan to the SPV to buy Honda's 26% stake. When the equity transfer is completed, the shares will be pledged as collateral to the financing bank.



In the second leg of the deal, the Munjal family will seek funding in the SPV from a number of private equity funds through quasi-equity route. A banker said negotiations were at an ''advanced stage" with a number of funds. According to sources, funds like KKR, Blackstone and Texas Pacific Group are among those in fray.

Importantly, Honda may offload its stake at a discount to Hero Honda's existing market price. The company's scrip closed at Rs 1,736 on the Bombay Stock Exchange, up 2.14%. At the current market price, Honda's 26% stake in the company is valued at Rs 9,000 crore. However, the banker refused to give the discounted price of the deal, though, it is learnt, that it would be substantial enough for the Munjals to complete the deal without any margin money to the SPV.



Market analysts said Honda's exit from the company is likely to drive down the valuation of the Hero Honda scrip on concerns that the company may not have access to the latest two-wheeler technology. Sources within Hero Honda, however, insisted that the company had adequate R&D to sustain operations competitively. After the deal, the Munjal family will own 52% in the company. As the deal is between the two promoters, Munjal will not have to make an open offer to the public.



Read more: Munjals to buy Honda stake in JV - India Business - Business - The Times of India http://timesofindia.indiatimes.com/business/india-business/Munjals-to-buy-Honda-stake-in-JV/articleshow/6488626.cms#ixzz0yY3lE1hj

Navi Mumbai airport likely to get green signal soon

Prime Minister Manmohan Singh has promised to stay engaged in pushing the required clearances for the Navi Mumbai airport project.




Mr Singh told Maharashtra chief minister Ashok Chavan on Friday that efforts would be made to iron out differences between the civil aviation ministry and the ministry of environment and forests.



Mr Chavan led a delegation of Congress ministers and elected representatives to the prime minister to seek environmental clearance for the greenfield airport on the outskirts of Navi Mumbai. Members of the delegation told ET that the prime minister assured early breakthrough in the impasse.



Another positive signal came in Mumbai when the officials of civil aviation ministry and Maharashtra government's Cidco expressed their willingness to modify project modalities to minimise environmental damage at the project site. The civil aviation and Cidco officials told a visiting team of the union environment ministry that the project site would be moved a bit away from the coastal zone to save some part of the mangrove forests and prevent altering the course of one of the two rivers on the site.



The Union ministry for environment and forests (MoEF) under Jairam Ramesh held back clearance for the `9,700 crore project on the ground that it would lead to the destruction of eco system in the area. The state government is now showing willingness to make changes for minimal environmental damage.



Maharashtra government sources told ET that all efforts would be made to get environmental a clearance at the meeting of environment ministry's Experts Appraisal Committee or EAC on September 22. The chief minister told the prime minister that the delay in getting environmental clearance was making the project costlier. "The chief minister pointed out that hold up in getting clearance was causing cost escalation and also putting the project behind schedule.



According to the initial plan, the first runway was supposed to get commissioned in early 2012 but that does not look possible now," a senior bureaucrat who accompanied the chief minister told ET. Last month, the aviation ministry had made a detailed presentation to the EAC and pointed out that delay was putting enormous burden on the Chhatrapati Shivaji International Airport in Mumbai.

HCL Info net jumps 11.27% to Rs 67 crore

Hardware and systems integrator HCL Infosystems today posted an 11.2 per cent rise in net profit for the fourth quarter ended June 30. Net profit stood at Rs 67.2 crore, compared to Rs 60.4 crore in the year-ago quarter. Gross sales at Rs 3,234 crore were up by 3.2 per cent from Rs 3,132.9 crore in the year-ago period.

The company plans to invest up to Rs 300 crore over the next two-three years on consolidating facilities and expanding software business. “We have bought 25 acres in Greater Noida and the plan is to consolidate our properties, which are scattered across various units. Also, it will house our software business,” said HCL Infosystems Chairman and CEO Ajai Chowdhry.

Tata Steel in talks with banks for 3.5 bn pounds loan

Leading steel producer Tata Steel is in discussions with banks to raise loans worth 3.5 billion pounds (over Rs 25,000 crore) for its UK unit.

Tata Steel is in talks with 11 banks for loans to the tune of 3.5 billion pounds for the company's UK unit, according to a Bloomberg report.

BNP Paribas SA, Credit Agricole CIB, HSBC Holdings Plc and Royal Bank of Scotland Group Plc are among the banks that may lend 2.5 billion pounds over a period of five years, it said.

According to the report, Citigroup Inc, Deutsche Bank AG, Standard Chartered Plc and ING Vysya Bank may also provide funds to Tata Steel.

Quoting people familiar with the development, Bloomberg said that State Bank of India may arrange a 1 billion pound loan over a period of seven years.

However, the Tata Steel officials declined to comment on the issue.

Going by the report, Tata Steel Chief Financial Officer Koushik Chatterjee on August 12 said the steel-maker plans to refinance as much as $6.5 billion of long-term debt.

The company had taken loans to fund its $12.9 billion acquisition of Corus Group Plc in 2007, just before the global economic slump pared demand for steel and forced banks to curtail lending.

Shares of Tata Steel closed marginally down at Rs 539.95 on the Bombay Stock Exchange today

Infosys open to foreigner as Chairman: Murthy

Infosys Chairman and Chief Mentor Narayana Murthy today said the company is open to a foreigner becoming his successor.

"Well, given that we have a significant percentage of foreign holdings in Infosys, I don't think it should matter whether it is an Indian or a foreigner who chairs the company," Murthy told a private TV news channel.

He was responding to a query on how Infosys' shareholders would react to a foreigner as his successor.

"What they (shareholders) would look for is a person who can guide the company in a proper direction, who can manage the board well, who has the support of all the people in the company, so I don't think it would matter," he added.

The hunt for a replacement for Murthy has already started as he would retire in August next year after he turns 65.

"I am sure we will see in the years to come... One of the members of the executive council become the CEO. There is no doubt about that at all.

"But, whether it is going to happen in the next two years, five years or seven years, that is not for me to comment," Murthy noted.

Earlier, Murthy had said that it would not be difficult for an outsider to succeed him.

Infosys' nominations committee has started the search for Murthy's successor. The committee has ICICI Bank Non-Executive Chairman K V Kamath, Cornell University Professor Jeffrey Lehman and HDFC Standard Life Insurance CEO Deepak M Satwalekar as members.

The search for a successor to Murthy comes at a time when India's top business group, the Tatas, has begun to look for a replacement for its Chairman, Ratan Tata, who is to retire in December, 2012.

HSBC warns UK bank break-up could force exodus

HSBC Holdings, Europe's biggest bank, warned that Britain's big banks could move overseas if a government review decides that lenders should be broken up. Stuart Gulliver, head of investment banking, said HSBC was "genuinely concerned" that a UK government appointed commission would recommend big banks must split retail banking from riskier investment banking. Gulliver said it was "clearly possible" the Commission will recommend a break up, which could have implications for itself, Barclays and Standard Chartered. "That has significant implications for where we may choose to headquarter our institution and that would probably also be the case for the other two institutions," Gulliver said at a conference held on Thursday, which was webcast. "Our absolute wish is to stay here in the UK, but we won't know until we see how the Commission responds." 

HSBC Chief Executive Michael Geoghegan moved to Hong Kong earlier this year to be in the bank's key region. The CEO of Asia-focused rival Standard Chartered warned last month that the rationale for keeping its headquarters in London was weakening as UK banks face being at a disadvantage to rivals on taxes, pay and regulation. Gulliver also said he expects HSBC's annual profit in the Middle East, which plunged to $455 million last year from $1.7 billion in 2008 due to troubles in Dubai, should recover to between $1 billion and $1.2 billion by 2012 at the latest.

TCS, Infosys, Wipro struggle to keep project managers

BANGALORE: Rising attrition among project managers with experience of between three and eight years, who handle critical delivery teams for topIndia's top 10 cos to work customers, is proving to be a big worry for major IT firms like Tata Consultancy Services (TCS), Infosys and Wipro that are scrambling to cope with renewed demand for offshore outsourcing.



Until a few months ago, technology firms were busy offering salary hikes and other incentives to software engineers to retain them as demand picked up. However, some companies are now battling attrition as high as 40% among their project managers, threatening to disrupt ongoing engagements.



“Customers want commitment about retention of these project managers. At best, we can offer them 15-20% retention hikes, but what can you do when multinationals like Accenture and Cognizant are wooing them with around 40% salary hikes?” said a senior executive of a mid-tier Indian outsourcing firm, which competes with larger rivals for more business from customers such as GE.

source-Economic Times

Japan's SMFG to buy 4.5% stake in Kotak Mahindra Bank for $296 mn

Sumitomo Mitsui Financial Group said it has agreed to buy a 4.5 per cent stake in Kotak Mahindra Bank for $296 million, as Japan's No 3 bank stepsTop 5 stock picks up efforts to expand its overseas operations.

SMFG and other major Japanese banks are seeking partnerships with local banks in Asian countries as growth prospects at home are weak, hoping this will expand their overseas customer base beyond Japanese clients working abroad.



SMFG has tie-ups with local banks in Hong Kong, South Korea, Indonesia and other Asian markets, including a 15 percent stake in Vietnam Export Import Bank.

It said it would acquire the stake in Kotak Mahindra through a private placement of new shares to be issued in August or September for about Rs 1370 crore ($296 million), pending approval by the Indian bank's shareholders and authorities.
SMFG plans to team up with Kotak Mahindra in asset management, stock brokerage and investment banking operations, it said in a statement.

Last week, Dutch financial services group ING sold its entire 3.1 percent stake in Kotak Mahindra Bank for $175 million.
Many foreign banks are looking to build up their presence in India, which is on track for economic growth this year of more than 8 percent but also limits the participation of foreign lenders in the country.
Last week, Dutch lender Rabobank moved a step closer to setting up its own banking unit in India by cutting its stake in midsize local lender Yes Bank for about $213 million, to meet regulatory requirements.

Goldman Sachs has applied for a banking licence in the country, while Australia and New Zealand Banking Group is planning a return to India after a 10-year absence, and numerous foreign banks are building up their private banking operations in India.

UK lender Standard Chartered last month raised $530 million in the first ever issue of Indian depositary receipts (IDRs), a move that was less about raising capital than about boosting its profile in India.

(Source - Economic Times)

Ashoka Buildcon plans Rs. 225 cr IPO

Ashoka Buildcon Ltd has filed a Draft Red Herring Prospectus for an Initial Public Offering of equity shares of Rs 10 each for cash at a price to be decided through a 100% Book-Building Process. The issue comprises a net issue of Rs. 225 crores to the public and a reservation of Rs. 4.50 crore for employees. The shares will be listed on the National Stock Exchange and Bombay Stock Exchange.

The infrastructure company operates one of the highest numbers of toll-based BOT projects in India. It has bagged two orders from National Highways Authority of India (NHAI), collectively worth Rs. 1389 crores for construction of roads on Design, Build, Finance, Operate and Transfer in Karnataka and on Orissa-Chhattisgarh border.

The company has bagged an order worth Rs. 909 crores for the construction of four lane road from 0.00 kms to 88.00 kms on NH 6 between Sambalpur-Baragarh on the Orissa-Chattisgarh border in Orissa to be executed as BOT (Toll) project on DBFO pattern under NHDP Phase III project.

The other contract, worth Rs. 480 crores, is for a stretch of 79.36 kms for six lane road on Belgaum-Dharwad section of NH-4 from 433.000 kms to 515.000 kms on DBFOT basis.

Reliance Broadcast Network up 4pc on deal with CBS

The Anil Ambani Group firm Reliance Broadcast Network (RBN) today settled up 4 per cent, buoyed by the company's entry into the television broadcasting space by forming an equal joint venture with the American media conglomerate CBS Corp.

Shares of Reliance Broadcast Network (earlier known as Reliance Media World) closed at Rs 79.10, up 4 per cent on the Bombay Stock Exchange. During the day, the scrip surged 5 per cent to hit-upper circuit at Rs 79.85.

"The stock today rallied complementing the broader market index Sensex. The market is volatile and investors may take time in making any long-tern investment in the scrip and rather will see its performance for some more time," SMC Global vice-president Rajesh Jain said.

A similar trend was seen on the NSE where it settled at Rs 79.70, up 4.87 per cent. On volume front, a total of 3.5 lakh shares of RBN changed hands on both the bourses.

Reliance Broadcast Network in a June 19 letter to the bourses had announced formation of a 50:50 joint venture with CBS Studios International, a wholly-owned subsidiary of CBS Corp, for owing and/or operating a portfolio of television channels.

The joint venture will initially broadcast English language general entertainment channels and will explore Hindi and regional language GECs in the next phase.

Source- Economic Times

IRDA to frame new guidelines on ULIPs

After winning the turf war with market watchdog SEBI on ULIPs, insurance regulator IRDA on Monday said it would frame new guidelines for these products to make them more attractive for policy holders.

"Certainly, yes," Insurance Regulatory and Development Authority (IRDA ) chairman J Hari Narayan said when asked whether the insurance regulator would unveil new guidelines for ULIPs to make them attractive for investors.

The government has ended the turf war between IRDA and SEBI, saying unit linked insurance plans (ULIPs) will be regulated by IRDA.

On Friday night, President Pratibha Patil issued the Ordinance, explaining that the life insurance business shall include any unit-linked policy or scrips or any such instruments.

The government has also constituted a high-level committee chaired by Finance Minister Pranab Mukherjee, which will sort out all issues of jurisdiction regarding hybrid products.

The committee on hybrid products will include the Finance Secretary, the Financial Services Secretary and heads of RBI, IRDA, SEBI and the Pension Fund Regulatory and Development Authority (PFRDA).

SEBI in April took the market by surprise when it banned 14 life insurance firms from issuing fresh ULIP schemes.

However, IRDA asked the life insurers to ignore the SEBI order and the matter then went to the Finance Ministry, which advised them to move the court. In the meantime, the ministry had asked them to maintain the status quo.

ULIPs account for more than 50 per cent of the life insurance business and the money collected from policy holders is invested in equities.


Source - Economic Times