TWENTY YEARS AGO TODAY
February 11, 1999
RBI to set up repos panel
The Reserve Bank of India has decided to set up a repos committee to develop the repos market. According to banking sources, this was decided at a meeting between bankers and the RBI a few days ago. The repos market is expected to be expanded to include more players instead of restricting it only to primary dealers and banks. There is also the possibility to include more instruments such as PSU bonds and commercial papers. At present, only government securities can be extended for repos. Market dealers feel that once the market develops, the facility can be extended on a daily basis instead of the three-day repos prevailing at present.
Indirect tax collections far below estimates
The Government is in deep trouble on the indirect tax front, with customs collections logging a negative growth of 1.5 per cent during the April-January period, compared to the same period during the previous fiscal. Customs collections during the first ten months of the current fiscal slipped to Rs. 32,800 crores, compared to Rs. 33,400 crores during the same period earlier, largely on account of the continued decline in oil imports.
VSNL GDRs may be tapped at $ 9.4-10
International equity investors appear set to pick up the GDRs of the Videsh Sanchar Nigam Ltd (VSNL) at a bargain pricing in the range of $9.4 to $10, hours before the pricing of the issue. The indicative price of $9.5 per GDR, which is what fund managers are expecting the issuer and the Government to settle at, belies earlier expectations of raising $400 millions by dis-investing 10 million shares (i.e., 20 million GDRs, considering half a share for each GDR) in the company.