The Hindu Business Line

TWENTY YEARS AGO TO­DAY

- Business · Securities and Exchange Board of India · Belgium · Alcoa · Zurich · Reynolds Metals Company · Aluminum Company of Canada

Au­gust 13, 1999

Link MF in­vest­ments to NAV, says SEBI panel

The SEBI-ap­pointed ad­vi­sory com­mit­tee on mu­tual funds has rec­om­mended the link­ing of all in­vest­ments of a mu­tual fund in equity and debt to its net as­set value (NAV). The rec­om­men­da­tions would be placed be­fore the SEBI board. The com­mit­tee rec­om­mended re­strict­ing the in­vest­ments of a mu­tual fund to 10 per cent of the NAV of a scheme in the equity shares or equity-re­lated in­stru­ments of a sin­gle com­pany. Mr. Ashok Kacker, Ex­ec­u­tive Direc­tor, SEBI, said that this would en­able the mu­tual fund to di­ver­sify its risk ex­po­sure in the equity mar­ket.

Al­coa makes $5.6-b bid for Reynolds

Al­coa Inc of­fered to buy Reynolds Me­tals Co for $5.6 bil­lions in cash, stock and as­sumed debt, a move spurred by ri­val Al­can Alu­minium Ltd's ef­fort to sup­plant Al­coa as the world's big­gest alu­minium pro­ducer. Al­coa's un­so­licited bid came hours af­ter Al­can said it would buy French com­peti­tor Pechiney SA and the alu­minium and pack­ag­ing units of Zurich-based Al­group for $9.2 bil­lions in stock.

SEBs reject FIs' es­crow model

The model es­crow agree­ment (MEA) scripted by fi­nan­cial in­sti­tu­tions (FIs) has been re­jected by most State elec­tric­ity boards (SEBs), and the move is ex­pected to set back the fi­nan­cial clo­sure of sev­eral power projects which have al­ready been awarded the es­crow cover by the re­spec­tive SEBs. The SEBs are peeved over a con­di­tion which states that "the Board un­der­takes to main­tain at least 25 per cent of the ag­gre­gate re­ceiv­ables free from any lien or charge". They feel that this clause will sharply re­duce their es­crow­able ca­pac­ity and limit the num­ber of projects that can come up in the State.

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