FIIs, corporates colluded with Ketan:Sebi
New Delhi: The Securities and Exchange Board of India (Sebi) has found the nexus among stock broker Ketan Parekh, certain foreign institutional investor and overseas corporate bodies as responsible for the crash of the share market soon after finance minister Yashwant Sinha presented the budget.

In its interim report, the summary of which was published by The Economic Times, Sebi explained how market players took advantage of the system to manipulate share prices in violation of the regulatory norms.

The report revealed that investigations were in progress regarding the links between Ketan Parekh, the main accused in the stock scam, and trades in scrips of companies like DSQ Software, Global Telesystems, Pentamedia Graphics, Satyam Computers, Zee Telefilms, Aftek Infosys, Ranbaxy Laboratories, SSI, Silverline Technologies, HFCL, Global Trust Bank, Padmini Technologies, Shonkh Technologies, Lupin Labs and Adani Exports.

Mr Parekh has been indicted for receiving substantial financing from banks and corporates which he is alleged to have used for stock market operations. Sebi has particularly indicted the Credit Suisse First Boston for facilitating creation of an artificial market in certain scrips through circular trading.

Sebi has decided to enlarge the scope of investigations into the activities of bears like Nirmal Bang, First Global, R S Damani, CSFB and Ajay Kayan to cover their trades over longer term.

Shankar Sharma of First Global, the main financier of tehelka.com, has emerged as one of the main protagonists of market manipulation in the Sebi report.
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Cellular firms on recruitment binge
Mumbai--While the recession is forcing most companies to lay-off staff, one industry seems to be is bucking the trend. Indian telecom industry players are on a hiring binge and could be adding as 10,000 employees to their payrolls in the next 6-12 months, all due to the proposed rollout of mobile services in 21 circles, including the four metros. Moreover, in an effort to ensure that they retain their best talent they are raising salaries and incentives at a time when increments have been frozen, salaries cut and people axed in large swathes of Indian industry.

Senior industry executives say that the industry directly employs around 20,000 people and provides indirect employment to another 30,000.
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IDBI has global aspirations
Mumbai: The newly-appointed chairman of the Industrial Development Bank of India (IDBI), Padmanabha P. Vora wants to make it a global player.

" My desire is to take IDBI on the road to universal banking. In the changed market scenario, cost of funds, operating cost and the spread are factors extremely critical in determining the profitability of the institution and universal banking provides it with flexibility," Mr. Vora told media persons here.

He said IDBI would also like to tap financing of pharmaceuticals, telecom, consumer goods, housing and infrastructure which offer opportunity for growth in business and profitability.

"Housing offers good growth potential and IDBI already has plans to enter this business. The sector is expected to grow at 25 to 30 per cent per annum,'' said Mr. Vora who was the head of the National Housing Bank before assuming charge at IDBI.
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Centre firm on Maruti rights issue
New Delhi: Scotching rumours that the government would pave way for Maruti Udyog Limiteds acquisition by Suzuki Motor Corp, heavy industries minister Manohar Joshi said the government favoured rights issue to divest part of the government stake in the company.

Mr. Joshi said his ministry was in complete sync with the recommendation of the cabinet committee on disinvestments that governments stake in Maruti should be divested through the rights issue. The statement puts at rest the speculation in the market that the government may allow Japans Suzuki Motor Corp to take majority stake in Maruti by issuing fresh shares in its favour.

Suzuki Motor Corp to take majority stake in Maruti by issuing fresh shares in its favour.

The government holds 49.74 per cent stake in Maruti, the country's largest car manufacturer while Japan's Suzuki Motor has 50 per cent equity stake in the company. An employee trust holds 0.76 per cent stake.

The Government has proposed to renounce its rights to subscribe shares during the issue in favour of domestic financial institutions. These institutions, in turn, will pay the Government a ``premium'' for renouncing its right, thereby netting the Government returns for the investment it made.
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