Reliance-ADAG demerged companies to list between Feb.13-March 10
Mumbai: The companies resulting from the RIL demerger will get listed on the bourses in February and March.
The listing of Reliance Capital Ventures (RCVL) is expected during the week starting February 13, Reliance Energy Ventures Ltd (REVL) will be on February 20, Reliance Natural Resources (RNRL) on February 27, and Reliance Communication Ventures on March 6.

Reliance-ADAG has already communicated to the SEBI, BSE, and the NSE in this regard and requisite approvals are awaited, the release said.

The boards of RCVL and REVL also approved amalgamation of the companies with Reliance Capital Ltd (RCL) and Reliance Energy Ltd (REL) respectively.

Earlier, the boards of RCL and REL had approved the amalgamation schemes on January 2 and January 3 respectively.

The amalgamation scheme proposes a share swap ratio of five equity shares of RCL for every 100 shares of RCVL and 7.5 equity shares of REL for 100 shares of REVL (all shares of Rs10 face value).
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Income from derivatives not to be viewed as speculative
Mumbai: The government has come to the rescue of derivatives traders and has clarified how to treat income/loss from derivatives transactions.

The government says all derivatives trades routed through recognised stock exchanges will not be treated as speculative transactions, according to clause (5) of section 43 of the Income-tax Act, 1961.

The Central Board of Direct Taxes (CBDT) issued a notification on January 25, '06, according to which, it has granted recognition to the two premier stock exchanges — BSE and NSE — to give effect to the clause. The notification also said that the government may withdraw recognition if the stock exchanges that violate income tax rules.

The basic problem facing derivatives traders (before the clarification) was that speculative income is taxed at the normal rate of 30 per cent and capital losses cannot be set off from tax payments due on other market transactions. The clarification implies that brokers can treat losses incurred in a derivative transaction to reduce the net taxable income from other transactions, including cash market transactions.
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GVK IPO likely to raise Rs.250-cr
New Delhi: GVK Power and Infrastructure public issue has been over-subscribed by 20 times after a good response from domestic and foreign institutional investors.

GVK is likely to raise close to Rs250 crore from the IPO of 8.28 million shares. The company received over two lakh application in the price band of Rs260-310. The IPO, which opened during February 2 and closed on Tuesday, received heavy response from qualified institutional investors (QIBs), high-networth individuals (HNIs) and retail investors.

QIBs bid over thirty times more than what was allocated for them, while HNIs and retail investors bid ten times more as per data available till February 7 evening.

GVK is raising capital from the market to part finance its 464 MW Gautumi Power plant to be commissioned by September in Andhra Pradesh.
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HDFC Life reports 150 per cent rise in premium income
Mumbai: HDFC Standard Life Insurance Company has reported a 150 per cent increase in its first year premium income at Rs599 crore in the nine months ended December 2005 due to a strong growth in policies sold as well as, an increase in average premiums.

For the individual business, volume measured by the number of policies sold, witnessed an 80 per cent growth, from under 1,25,000 in the first half of 2004-2005 to over 2,20,000 in the first half of 2005-2006.

The average effective premium, on the other hand, increased to Rs28,000 from approximately Rs15,000 for the same period last year.

Company officials said contribution to the individual business premium income by the different channels of distribution also changed significantly compared with the first half of 2004-05.

The corporate agency and bancassurance channels also grew well and currently account for over 45 per cent of the company's business.
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