The Surface Transport Ministry favours Indian shipping companies directly acquiring foreign flag vessels on a bareboat-cum-demise basis. At present, the companies sell and buy back their own ships on a bareboat-cum-demise charter reducing Indian tonnage. The procedure being adopted by the shipping firms, though legal, does not fulfil the objective of increasing the national tonnage for which the Government announced the provision in April 1992.

RBI allows banks to invest freely in FIs bonds

The RBI has exempted bank investments in equities and bonds issued by financial institutions from the ceiling of five per cent of incremental deposits over the previous year. According to a circular issued by the RBI on Wednesday, investments by banks in equities and bonds issued by the FIs will be outside the ceiling of five per cent prescribed for that in shares and debentures of corporate bodies. The move is expected to provide a boost to investments by banks in bonds issued by corporates considering several floating rate bond issues by private corporates met with a poor response due to the ceiling.

Country-wide cellular tender floated

India is on the threshold of a wireless communications boom with the Department of Telecommunications (DoT) releasing the much-awaited notice inviting tenders for operating cellular mobile telephone services in all telecom circles barring the four metros and adjoining areas. The decision on the announcement was made by the Telecom Commission Chairman’s office late in the evening on Thursday. However, there was no word from the Telecom Commission on when the tender for basic services would be announced.

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