Financial Briefing
No response for 3-day fixed repos: The Reserve Bank of India did not receive any application for the three day fixed rate repo held on Saturday, which carried an interest rate of 7 per cent.RBI planning cell renamed: The Reserve Bank of India has changed the name of its credit planning cell to monetary policy department, effective January 1, reflecting the functional role of the department --- to formulate monetary policy. Plea to block transfer: Leaders of the backward "Nadar" community in Tamil Nadu on Friday urged the Reserve Bank to block the transfer of shares of the Tamil nadu Mercantile Bank (TMB) to the Essar group or industrialist C Sivasankaran, on the ground that such a move would go against the objects of the bank. In a letter to the RBI governor, Bimal Jalan, the Nadar Mahajana Bank Share Investors Forum chairman B Ramachandra Adityan said that Essars had gone back on a "gentlemen's agreement" struck with the forum that the disputed shares would be sold back to the
community for Rs 100 crore. He pointed out that as per the articles of association of the bank, its main objective was to promote the welfare of the Nadar community and said the current takeover attempt would only foil it. The 69 per cent stake, through which Essars tried to enter the bank but failed due to RBI's refusal to permit the share transfer, is currently with Sivasankaran, who has applied for RBI approval. ALFS guide: The Association of Leasing and Financial Services Companies (ALFS) has come out with a booklet to educate investors. The association also plans to form an investors grievance cell to address their complaints. The booklet explains issues like risk-reward relations with regards to different instruments. It also talks about good investment including debt instruments, yield on various instruments, tax liability and importance of credit rating. "A simple service to the valued investors will go a long way in rebuilding their confidence in the NBFC sector, which is presently in a bad
shape," said a association release. ALFS proposal: The Association of Leasing and Financial Services Companies (ALFS) has decided to make a presentation to the Reserve Bank of India on the new NBFC regulations announced on Friday. Some of the points likely to be raised are extension of the time frame for implementing the new capital adequacy norm of 10 per cent and the restrictive features of the new regulations.
Copyright © 1998 Indian Express Newspapers (Bombay) Ltd.
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