ICICI is privately placing a seven-year on-tap bond issue offering a 14.25 per cent annualised return. This is a clear signal that the cost of money at the medium and longer ends of the market has gone up. The latest offering carries a semi-annualised yield of 13.72 per cent. ICICI expects to mop up over Rs 200 crore through the issue which closes on June 30.

No more fund-based activity for SBI Caps: SBI Caps, PNB Caps, BoI Finance and the merchant banking arm of Indian Bank will formally stop undertaking fund-based activities from Tuesday (June 30) following the expiry of the Sebi deadline for segregating merchant banking activities from NBFC activities.

SEBI may review short-selling norms: The Sebi-appointed BD Shah committee is considering formulating new guidelines on short-selling shares in stock markets and is reviewing the present guidelines, according to Sebi chairman DR Mehta. "The members of the commmitee are already studying variousaspects of short-selling, including the `up-tick' concept before framing fresh guidelines," he said.

OIL in race for $10m Middle East deal: OIL India is in the race for a $10 million exploration contract in the Middle East. The proposal has been forwarded to the cabinet and approval is expected shortly. OIL will hold a 20 per cent stake in this venture where the other partners are Total of France and the Oman Oil Company. The assignment involves work on an onshore exploration block next to a gasfield.

Pak nuke plans: Pakistan's military commanders have discussed pre-emptive nuclear strikes against India and have drawn up a list of cities and military installations to be targeted, according to a senior Pakistani weapons scientist, who has defected. The scientist said that technicians had been asked to prepare the ground for a possible "first-use" nuclear strike.

BA kicks off fare war, again: British Airways has kicked off a fare war by slashing fares by 20 per cent. Air India andother international airlines operating in India are expected to match BA's aggressive tactics.

FedEx plans $50m investment: The $11.5 billion international express transportation company, Federal Express Corporation, plans investments of around $50 million over the next five years. The company proposes to increase its presence and marketshare by investing in areas like customer service, sales resources and marketing.

Turbo-diesel Escort plan on hold: Faced with a major slump in the luxury car segment, Mahindra Ford India has put its plans to introduce the 1.8 litre turbo diesel version of the Ford Escort on the backburner. However, the company is going ahead with its plans to introduce a hatchback and a sports version of the Escort.

ONGC Videsh canvasses for OIDB loan: ONGC Videsh, expected to spearhead the country's hunt for security oil overseas, is desperately canvassing for an Oil Industry Development Board loan, now that volatile exchange rates and a downgrading by sovereignrating agencies have rendered xternal commercial borrowings (ECBs) unfeasible.

New private banks NPAs shoot up: Nine new private sector banks have piled up net non-performing assets close to Rs 300 crore in less than four years of operation. During the previous fiscal, net NPAs of the new generation private sector banks stood at close to Rs 150 crore.

Cyclone claims touch Rs 537 cr: The four subsidiaries of GIC have received claims worth Rs 537 crore for losses incurred on account of the recent Gujarat cyclone. The number of claims reported to the insurance companies has been pegged at about 1,800.

Jardine urges opening up of insurance: Jardine Fleming, the Hong Kong-based global investment bank, has called for the opening up of insurance, the development of long-term bond markets and improvements in the capital market and corporate governance to attract foreign direct investment in infrastructure development in India.

Inflation rate touches 6.55%: Reeling under budgethikes, the inflation rate rose once again, after a brief halt, to touch a 62-week high of 6.55 per cent on June 13. However, it was 5.69 per cent during the corresponding week last year (June 14). The impact of the budgetary increases was very much in evidence in the second week of the budget. The prices of many primary articles and food products went up mainly due to the rise in the prices of urea and petrol cess, though these hikes were rolled back later.

DSE's new norms: The Delhi Stock Exchange made major amendments on Sunday by way of voice-voting to the articles of association regarding election of directors on its board and their terms. In an extraordinary general meeting, the DSE unanimously passed almost all proposed amendments incorporating changes suggested by the Sebi for uniform eligibility norms for individual and corporate members contesting elections to the board of directors.

Aluminium producers seek tariff revision: The government is under pressure from downstream aluminiumproducers to reverse the contradictory tariff policy it is currently following for steel and aluminium scrap and on pre-export value addition in India.

Revenue deficit of centre, states: Revenue deficit of the centre and states should be jointly calculated as percentage of gross domestic product (GDP), the Phdcci said on Sunday. Expessing concern at the reduced transfer of central taxes to the states provided in the 1998-99 union budget, the chamber of commerce and industry said it would aggravate revenue deficit of the states as central taxes account for a large share in their total revenue receipts.

Sinha speak: Union finance minister Yashwant Sinha on Sunday disagreed with Moody's latest downgrading of the country's foreign currency ceiling by two notches to speculative grade from investment grade. Adressing a press conference at Tirumala, in Tirupati, he said their rating was flawed due to over-reaction. The same agency had miserably failed to identify the economic crisis in Mexico andIndonesia, he pointed out.