Forex reserves up by $ 201 million
Mumbai: India's foreign exchange reserves continued their upswing with a rise of $ 201 million to touch a new record high at $ 49,766 million during the week ended 8 February 2002.

Foreign currency assets (FCA) rose to $ 46,848 million, witnessing an increase of $ 201 million in the reporting week, according to Reserve Bank of India.

Gold reserves and special drawing rights remained static at $ 2,913 million and $ 5 million respectively.
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Bank credit up Rs 3,006 cr
Mumbai: Bank credit has increased by Rs 3,006 crore for the fortnight ended 25 January 2002 to Rs 5,68,824 crore.

Food credit has increased by Rs 1,485 crore to Rs 54,680 crore while non-food credit has risen by Rs 1,521 crore to Rs 5,14,144 crore.

Total accommodation provided by scheduled commercial banks to the commercial sector in the form of bank credit and investments in shares, debentures, bonds and commercial paper has increased by Rs 45,851 crore to Rs 5,94,151 crore as on 25 January 2002 from Rs 5,48,300 crore as on 23 March. 
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CII team to visit Afghanistan
New Delhi: A high-level delegation from the Confederation of Indian Industry (CII) is visiting Afghanistan to make an initial assessment of requirements and possible areas for co-operation.

The CII team's visit, led by Jagdish Khattar, managing director, Maruti Udyog Ltd, will be the first visit by an Indian business delegation after the new regime in Afghanistan assumed power.

The CII team includes leading representatives from the automobile, construction and infrastructure sectors. 
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Indo-German CEOs' meet
New Delhi: Over 40 chief executives of German and Indo-German companies will participate in the Indo-German Summit 2002 to be held at Jodhpur on 9 March.

The meeting would assess new areas for promoting investments in Rajasthan.

The prominent companies taking part in the day-long deliberations include Alstom LHB GmbH, BHF Bank, Commerzbank AG, Freudenberg GIMRET Group, Konrad Adenauer Foundation, Lurgi India Ltd and Vereinbank AG. 
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FDI in banks can go up to 49%
Mumbai: The Reserve Bank of India has said foreign banks can now take up to a 49 percent stake in private banks.

The RBI's move should see several major international banks invest in the sub continent.

FDI up to 49 percent from all sources will be permitted in private sector banks on the automatic route, subject to conformity with the guidelines issued by the RBI from time to time, the central bank's notification said.

RBI said foreign direct investment can include investments through initial public offer of shares, private placements, American or global depositary receipts and acquisitions.

The limit also applies to foreign banks operating in India, which want to buy a stake in a local private bank.

Until now, the FDI ceiling in an Indian bank was only 20 percent while ceilings on investments made through the portfolio route were set by bank boards and approved by the central bank.
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Nabard reduces refinance rates
Mumbai:Nabard has cut interest rates on refinance for loans above Rs 2 lakh for farm mechanisation, rural godowns, setting up of agriclinics and agribusiness centre from the existing rate of 10 per cent to 8.5 per cent per annum, making it a uniform rate for all loans above Rs 25,001.

The refinance rate for loans up to Rs 25,000 will be 7.5 per cent per annum for commercial banks ( CBs), primary urban co-operative banks and regional rural banks (RRBs) while state co-operative banks (SCBs), state co-operative agriculture and rural development banks (SCARDBs) will be charged 7 per cent. 
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No retrenchment in Railways
Patna: Union Railway Minister Nitish Kumar has ruled out retrenchment of railway employees.

There is no question of retrenchment in railways. We do not have surplus staff, Kumar told reporters after flagging off Sampoorna Kranti Express here.

Asked whether his ministry had any proposal to privatise the loss incurrring branch lines in the country, Kumar said, the government was contemplating to appoint a consultant to study the feasibility of such branch lines and thereafter a decision on the issue would be taken.
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Pak to receive $800,000 from ADB
Islamabad: The Asian Development Bank has announced an $800,000 grant to help Pakistan's small and medium enterprises spur growth and employment amongst the country's poor.

The grant is aimed at boosting the potential of small and medium enterprises to spur growth, create employment and reduce poverty, the ADB said in a statement.
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KP entities kept Satyam share price artificially high Mumbai: Investigations by Sebi have brought to the fore allegations of Ketan Parekh entities artifically hiking share prices of Satyam Computer, which rose from Rs 225 in October 1999 to Rs 1,427 in March 2000.

Meanwhile, as per the statistics available with the investor grievance and guidance division of Sebi, about 1,624 complaints were received against Satyam. They were, however, not on allegations of price manipulations.
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Capital gains tax waiver for all exchanges
New Delhi: Finance minister Yashwant Sinha is likely to grant a one-time capital gains tax exemption to the broker-members of all recognised exchanges and give the bourses an exit route in their transition to demutualision.

The exit route for regional exchanges which want to shut shop could be allowed to dispose the assets without attracting capital gains tax under Section 54 E of the Income-Tax Act. The exchange would, however, be required to pay a corporate tax of 35 per cent on the funds realised from sale of assets. 
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Shankar Sharma remanded to judicial custody
Mumbai: First Globals chief Shankar Sharma, in custody of Enforcement Directorate for alleged contravention of Foreign Exchange Regulation Act, was remand for a further two weeks.

Sharma, brought from Delhi's Tihar jail under police escort, was produced before chief metropolitan magistrate B M Bansod here.

He is facing the allegation of conspiring with 16 others, including his company First Global Stockbroking, to sell 5,92,950 shares of Himachal Futuristic Communication in March 2000 at half the prevailing market price to foreign institutional investors without obtaining permission of the Reserve Bank of India as required under Fera.

Sharma was arrested in Delhi on 18 December last year by ED which filed a complaint against him on 11 February in Mumbai.
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