April 5, 1996
Four State-owned banks, the Canara Bank, Bank of Baroda, Corporation Bank and the Bank of India, have collaborated to float a company for operating as a primary dealer in government securities. The new company will kick-off its operations in the gilts market during this quarter. This will be the fifth primary dealer in the Government securities market after the entry of the Securities Trading Corporation of India (STC1), the Discount and Finance House of India (DFHI). the recently formed SBI Gilts and PNB Gilts, promoted by Punjab National Bank.
Wheat exporters are up in arms against the latest policy of the Government which is seen as a virtual ban on exports. Even as the validity of the registration-cum-allocalion certificates (RCACs) has been extended by three months, severe restrictions have been imposed on wheat exporters holding the certificates. As per an export instruction dated March 29 issued by the Director-General of Foreign Trade (DGFT) under the Ministry of Commerce, RCACs issued against the ceiling of 2 5 lakh tonnes of non-durum wheat for the licensing year 1995-96 will be valid till June 50.
Consultant to draft guidelines
The system of awarding discovered acreages to the private sector may be discarded soon. The Petroleum Ministry plans to engage a consultant soon to draft a fresh set of norms for awarding fields to private sector firms for development. Initially, the Ministry planned to merely amend the bid evaluation criteria, but now it is of the view that a complete overhaul was needed to ensure transparency in the system. Negotiations are on with an agency of international repute to draft the guidelines.