The Hindu Business Line - - THINK -

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.

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