German tyre major, Continental, which collected the bid pack, has not submitted its offer till now, Gupta said.

SBI Capital Markets, which is acting on behalf of financial institutions for the sale of Modi Rubber stake was thus forced to extend the last date for submission of bids to December 15, he said.

"We have all the support of finance ministry and the government," Gupta said when queried whether government supported the institution's move.

Gupta said the institutions hoped to complete the sale procedure before the end of this fiscal.

On IDBI, Gupta said the institution is planning to come out with American depository receipts (ADRs) or global depository receipts (GDR) issue for listing on the international stock exchanges.

"IDBI is preparing for international listing and preparations have started including consolidation of group accounts," Gupta said.

Once the Small Industries Development Bank of India (Sidbi), an existing subsidiary is hived off into a separate company, our road to global listing will be clearer, he said.

IDBI has already prepared financial statements according to generally accepted accounting principals (GAAP) as per stringent norms for information disclosure and accounting for listing on aamercian exchanges last year.

However, the bank is yet to firm up the date for the international float.

On IDBI's plans to foray into the insurance sector, Gupta said the institution was negotiating with three foreign insurance companies and a final decision would be taken by this month-end. IDBI is planning to enter the life insurance sector once the sector is opened up for private players, he said.

Earlier, addressing a seminar on corporate governance, Gupta said the main reason for companies not performing despite having well-known names on their boards was due to "lack of adequate compensation" for the members.

Gupta called for an increase in compensation for nominee directors and non-executive directors to at least Rs 5,000 per sitting so that these board members would show adequate interest in working of companies.

Currently the nominee directors and non-executive directors were paid only meagre amount for sitting in a meeting, which could extend for one full day, he said.

Gupta said these members should also be given adequateinformation on the working of the company allowing them to guide the company in a better way.