The 11.99-per cent government bonds maturing in 2009 sold like hot cakes at RBI's open sale window on Friday, but bankers allege that the central bank didn't convey the sale notice well in advance. The RBI offered two government securities -- 11.99 per cent, 2009 and 11.98 per cent, 2004 -- worth Rs 5,000 crore and none of the business dailies carried the announcement which took most bankers by surprise.

Centre privately places Rs 5,000cr with RBI

The Centre has privately placed Rs 5,000 crore with RBI, completing 41 per cent of its gross borrowing target for the fiscal 1999. It has reissued the 11.98 per cent 2004 paper worth Rs 3,000 crore at Rs 102.85 and 11.99 per cent 2009 paper worth Rs 2,000 crore at Rs 101.40.

Guidelines for banks, FIs

Minister for environment and forest Suresh Prabhu has said the Government will soon announce guidelines for banks and FIs so that they start incorporating environment concerns while clearing loansfor industry. Discussions regarding the required norms have already taken place between the Government, RBI representatives and FIs, he said.

FIs policy on cement sector M&As

FIs propose to formulate a comprehensive policy for funding and encouraging mergers and acquisitions in cement industry. Since FIs have large exposures in cement companies, a uniform policy will facilitate smooth takeovers and mergers, sorces said.

Corporate Monitor

Sivasankaran to sell TMB equity

The three-year old controversy over attempted takeover of Tamilnad Mercantile Bank has come to an end with NRI businessman C Sivasankaran agreeing to sell his 67.3 per cent equity for Rs 186 crore to an investment forum of the Nadar community. The forum will pay Rs 186 crore for 67.3 per cent equity, sources said.

CLB seeks reply from LML

CLB on Friday sought reply from LML and its managing director Deepak Singhania to a petition filed by estranged joint venture partner Piaggio Vespa allegingmismanagement in the affairs of the scooter company.

CLB has asked the LML to file its reply by July 10.

Maruti sales up 6.5% in May

Maruti Udyog has recorded a 6.5 per cent growth in sales of passenger cars in May 1999 despite a ban on sale of its vehicles in the national capital region during the month.

New Holland puts off plans

New Holland NV, a Fiat group subsidiary, has put off plans to foray into the local construction industry. However, the company will continue to expand its presence in the local tractor industry, company sources said.

DSQ Software mulls direct marketing

The Rs 220-crore DSQ Software is planning to set up more overseas development centres to attract customers through direct marketing. It plans to do away with channel partners to acquire new businesses.

Sterlite plant eyes Rs 1,200cr sales

The copper plant of Sterlite Industries in Tuticorin is poised to increase its sales turnover to Rs 1,200 crore next year owing to the expectedhassle-free operation of its smelter and production of 350 tonnes a day of phosphoric acid.

J&N aims 15% sales growth

Jenson & Nicholson has targeted a 15 per cent growth in turnover for the current year as part of its restructuring efforts. The paint major has been able to achieve a growth of 10 per cent in 1998-99.

Market Pulse

Panel mulls group to deal insider trading

The Kumarmangalam Birla committee on corporate governance has suggested that a separate group be set up to develop necessary safeguards for companies to effectively deal with insider information and against insider trading.

The committee, set up by Sebi, also decided to set up three sub-groups to focus on each of the constituents of corporate governance, shareholders, board of directors and the management.

Sensex up 65 points

Institutional players were back in action with the problems on the Kargil front factored in the market. The 30-share Sensex rebounced with vigour to breach the crucial barrierof 4,000 points to close at 4,042.52 on Friday, registering a net gain of 65.64 points.

India Hotels private placement

India Hotels Company will enter the private placement market with a Rs 150 crore bond issue with an average maturity of seven years. The issue is being priced at 12.75 per cent payable semi-annualy and the annualised yield works out to 13.16 per cent.

Banking & Finance

T-bills

RBI on Friday pegged the yield of 14-day T-bills at 8.37 per cent and 91-day T-bills at 8.81 per cent. For the 14-day T-bills, the central bank received 21 competitive bids worth Rs 359.5 crore and one non-competitive bids worth Rs 500 crore. It accepted 10 competitive bids worth Rs 100 crore and one non-competitive worth Rs 500 crore.

Care develops interest-rate model

Care has developed an interest-rate model which will allow a lending institution to arrive at the interest rate to be charged of the borrowers.

The interest rate structure model has been developed based on theneed of lending institutions to arrive at an appropriate interest rate according to the risk perception of individual loans.

Economy & Infrastructure

Centre not to extend onion export nod

With the impact of last year's onion crisis fresh in memory, the Centre has decided not to extend permission for exports of onion from June. The decision has been taken in view of the monsoon and firming up of prices in the last few weeks.

Politics and Policy

Don't tamper with LoC, India tells Pak

India on Friday rejected as "untenable" Pakistan's claim that the line of control was not clearly demarcated and asked Islamabad to give up its "desperate and foolhardy" attempts to change it, asserting that a meaningful dialogue could be held only if Pakistan "begins to act accordingly".