"One thing is certain that confidence has come back in respect of the Indian markets ... There has been a slow recovery and in couple of days it will be stable," finance minister Mukherjee said while expressing optimism over the recovery today
New Delhi: Encouraged by the nearly 400 points upsurge in the BSE Sensex in opening trade today, finance minister Pranab Mukherjee today exuded confidence that markets will stabilise in the next few days, reports PTI.
He also said the government and the Reserve Bank of India (RBI) will work in close co-operation to bring stability besides ensuring adequate liquidity in the forex market.
"One thing is certain that confidence has come back in respect of the Indian markets ... There has been a slow recovery and in couple of days it will be stable," Mr Mukherjee told reporters here.
Snapping its six-session losing streak, the Bombay Stock Exchange benchmark Sensex made a strong comeback by rising nearly 400 points in opening trade, supported by a rebound on other Asian bourses.
The 30-share BSE barometer, which has lost nearly 1,455 points in the past six sessions and had hit a 14-month low, rose by 398.55 points to 17,256.46 as stocks moved into positive terrain with gains of up to 2.96% in morning trade.
On steps to deal with the financial crisis triggered by downgrading of the US sovereign rating by Standard and Poor's, Mr Mukherjee said, "Both RBI and the ministry of finance are working together in close co-operation to ensure that whatever steps are needed... (are) taken. There will be no dearth of liquidity of forex."
As regards the fallout of the US Federal Reserve's decision to keep the interest rates at near zero level for two year, the minister said, "it will have some impact" on the Indian markets which are in the process of stabilisation after witnessing huge decline.
The CBI, in its charge-sheet, alleged that Reliance Telecom structured Swan Telecom Pvt Ltd (STPL) as its front company to circumvent the then existing telecom policy which held existing players ineligible for new licences in the same circle
New Delhi: Reliance Telecom (RTL), one of the accused firms in the second generation (2G) case, today told a Delhi court that it did not hold substantial equity in Swan Telecom at the time of grant of spectrum licences, reports PTI.
"No criminal case is made out against RTL as it held only 9.9% equity in Swan Telecom when the latter was granted spectrum licences," the counsel for Anil Ambani-promoted telecom company told special Central Bureau of Investigation (CBI) judge OP Saini.
The CBI, in its charge-sheet, alleged that Reliance Telecom structured Swan Telecom Pvt Ltd (STPL) as its front company to circumvent the then existing telecom policy which held existing players ineligible for new licences in the same circle.
The Anil Ambani-promoted firm was ineligible to get the spectrum as the Department of Telecom (DoT) had debarred the CDMA player from entering into GSM telephony sector, it said.
The counsel for RTL denied CBI's allegation that when DoT allowed use of dual technology, RTL washed its hands off Swan Telecom.
"So far as the guidelines (of DoT) are concerned, they only prohibited an existing telecom company from holding shares in excess of 10% in another telecom company. We held 9.9% stake in Swan telecom and no case is made out against us," the defence lawyer said.
The guidelines did not prohibit Reliance Telecom from funding another telecom company, he said, adding the Reliance group company only held preferential equities in Shahid Balwa-promoted Swan Telecom.
"STPL cannot be held as an associate firm of RTL as the latter did not have any say in deciding the board members of STPL," the lawyer said opposing the framing of charges against the firm.
The CBI, in its first charge-sheet, alleged that top Reliance ADAG officials-Gautam Doshi, Hari Nair and Surendra Pipara-had conspired with former telecom minister A Raja and others.
"The accused persons structured the holding of Swan in a manner that only 9.9% equity was held by RTL and rest 90.1% was shown as held by Tiger Traders Pvt Ltd, although the entire company was held by the Reliance ADA Group of companies through the funds raised from RTL," the CBI had alleged.
RTL and its officials are accused of creating shell firms like Swan Telecom, Zebra Consultancy Services, Giraffe Consultancy Private Ltd and Parrot Consultants to create a web in which no company is a holding firm and the officials are the real masters, the CBI had alleged.
It had said that after Reliance ADAG applied for 2G licence through Swan Telecom, it got GSM spectrum in 13 circles under dual technology policy which rendered Swan Telecom useless for it and prompted it to withdraw its holding, transferring the shell firm to Shahid Balwa and Vinod Goenka.
"Accordingly, Reliance ADA Group withdrew its holding from Swan Telecom and the three accused transferred the control of Swan Telecom to co-accused Shahid Balwa and Vinod Goenka in order to facilitate them to cheat the DoT by getting UAS Licence in the name of Swan Telecom which was till 18 October 2007 ineligible for licence," the probe agency had said.
Reliance Mutual Fund new issue closes on 11th August
Reliance Mutual Fund has launched Reliance Fixed Horizon Fund-XX-Series 24, a close-ended income scheme.
The investment objective of the scheme is to generate regular returns and growth of capital by investing in a diversified portfolio of central and state government securities and other fixed income/debt securities maturing on or before the date of maturity of the scheme with the objective of limiting interest rate volatility. The tenure of the scheme is 370 days.
The new issue closes on 11th August. The minimum investment amount is Rs5,000.
Crisil Short Term Bond Fund Index is the benchmark index. Amit Tripathi is the fund manager.