Finance ministry favours ‘middle path’ on Jalan panel recommendations

Earlier this week, the government held discussions on the report with the stock exchanges and other stakeholders and sought a roadmap by 30th May for segregation of regulatory and commercial roles of the exchanges

New Delhi: The finance ministry today pitched for a "middle path" on the Jalan Committee suggestions on a new set of rules regarding ways stock exchanges should be owned and run, amidst the recommendations generating strong divergent views, reports PTI.

At an Assocham meet here, secretary of Department of Economic Affairs R Gopalan said the Securities and Exchange Board of India (SEBI) is "seized" of the matter.

"This (Jalan Committee) report for a number of reasons has generated opinions for and against in equally strong manner. I am sure, we need to find a middle path given the firm views on both side," he said.

A SEBI-appointed committee, chaired by former Reserve Bank of India (RBI) governor Bimal Jalan, had last year suggested sweeping changes in the way stock exchanges are owned and run and strongly recommended capping their profitability and not allowing them to get listed to safeguard their front-line regulatory role.

Mr Gopalan said consultations on the report were still on.

Earlier this week, the government held discussions on the report with the stock exchanges and other stakeholders and sought a roadmap by 30th May for segregation of regulatory and commercial roles of the exchanges, sources said.

SEBI had set up the committee in January 2010 for review of ownership and governance norms for market infrastructure institutions such as stock exchanges and the panel submitted its report to the regulator in November last year.

The proposals generated intense debate with opposition expressed on proposals like non-listing of bourses and cap on profitability, terming them anti-investor measures.

In the wake of stiff opposition to the proposals, SEBI later put the ball in the government's court.


Tata Motors net profit trebles to Rs9,273 crore in FY11

Higher domestic sales and turn around at the Jaguar Land Rover unit boosts performance 

MUMBAI: Tata Motors on Thursday reported an over three-fold rise in its consolidated net profit to Rs9,273.62 crore for the fiscal year 2010-11, driven by higher domestic sales and by its Jaguar and Land Rover unit. The company posted a net profit of Rs2,571.06 crore in the previous year.

Consolidated total income from operations in the year under review also jumped by 33.09% to Rs1,23,133.30 crore from Rs 92,519.25 crore, PTI reports.

In 2010-11, Tata Motors sold 10,80,994 vehicles across the world, up 24.2% over that in the previous financial year, the company said. Jaguar Land Rover, which it bought from Ford Motor Company in 2008 and was initially a loss-making unit, has turned around recently and reported profit after tax of £1,043 million on net revenue of £9,906 million.

The company's board recommended a dividend of 200%, which is Rs20 per share, for every ordinary share. It has also recommended a dividend of 205%, which is Rs20.50 per unit, for every 'A' ordinary share.

The company said the board has approved a proposal to split the stock, under which its ordinary and 'A' ordinary shares, both of Rs 10 each, will be divided into shares of Rs 2 each.

Tata Motors shares closed 2.45% up at Rs1,161.25 a share on the Bombay Stock Exchange on Thursday, on a day when the benchmark Sensex climbed 1.11%, or 197 points, to 18,044 points.


Share prices gain strength: Thursday Closing Report

Nifty has crossed the first resistance of 5,400; watch out for 5,470

The market traded above yesterday's close from the start, tracking a firming trend on the bourses across Asia. The Sensex and Nifty opened at 17,917 and 5,373 respectively. Good earnings by Tata Steel and Coal India that came in after the market closed yesterday also assisted early gains. Support also came from metals, oil & gas and banking sectors in the early session.

There was a small decline in the first hour of trade, which is when the indices registered the day's lows. But the market overcame this and resumed its upward movement. A 1.04 percentage point rise in the weekly food inflation numbers for mid-May contributed to nervousness around noon.

In the last hour, short-covering and news that the government may decide on Cairn Energy's stake sale to Vedanta Resources helped the Nifty to cross the first support level of 5,400 and close above that level.

The next resistance is at 5,470. The intra-day highs by the Sensex and Nifty were 18,073 and 5,422 respectively. The Sensex rose 197 points to close at 18,045 and the Nifty closed 63 points up at 5,412. The advance-decline ratio on the National Stock Exchange was 751:620.

The broader indices underperformed the Sensex today with the BSE Mid-cap index adding 0.14% to its pervious close and the BSE Small-cap index gaining 0.46%.

BSE Oil & Gas (up 2.90%), BSE Metal (up 1.50%), BSE Auto (up 1.49%), BSE PSU (up 1.32%) and BSE Realty (up 1.24%) were the top sectoral gainers. BSE Consumer Durables (down 0.78%), BSE IT (down 0.19%) and BSE TECk (down 0.12%) were the losers.

The key performers on the Sensex were ONGC (up 4.44%), Hero Honda (up 3.97%), Sterlite Industries (up 3.45%), DLF (up 2.95%) and Reliance Industries (up 2.92%). ITC (down 1.08%), Infosys (down 0.56%) and HDFC (down 0.26%) were the major losers on the index.

After the petrol price hike a fortnight ago, the prices of diesel, LPG and kerosene could be hiked next month when the ministerial panel headed by finance minister Pranab Mukherjee meets to decide on the issue.

On 14 May, state-owned oil firms hiked the price of petrol by a steep Rs5 per litre and it has been reported that the oil ministry is pushing for a Rs4 per litre increase in the price of diesel and about Rs20-Rs25 increase in the domestic cooking gas (LPG) price. A kerosene price hike is also being considered.

Food inflation, which had been declining over the previous three weeks, rose by 1.08 percentage points to 8.55% in the week ended 14th May, over the 7.47% recorded in the previous week.

Markets in Asia closed mostly higher, as higher crude and metal prices lifted commodity-related stocks in the region. On the other hand, the Chinese benchmark Shanghai Composite declined, erasing some of its previous gains.

The Hang Seng gained 0.67%, the Jakarta Composite surged 0.92%, the KLSE Composite rose 0.48%, the Nikkei 225 finished 1.48% higher, the Straits Times added 0.16%, the Seoul Composite jumped 2.75% and the Taiwan Weighted climbed 0.70%.But the Shanghai Composite fell by 0.24%.

Back home, foreign institutional investors were net sellers of stocks worth Rs370.79 crore on Wednesday. On the other hand, domestic institutional investors were net buyers of shares worth Rs179.41 crore.


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