The Hindu Business Line
TWENTY YEARS AGO TODAY
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.