The case built up by ICICI Bank against divesting the equity of its promoters and going public in the process has been turned down by the RBI. ICFCI Bank had sought an exemption from the RBI on disinvesting its equity on the plea that as the main promoter, the Industrial Credit and Investment Corporation of India (ICICI) and the co-promoter, SCICI, had one of the widest domestic shareholding base, there was no need to further ensure that the equity was widely held. However, the RBI does not share this view. According to the guidelines for new banks issued by it, the promoters of banks cannot hold more than 40 per cent of the equity. Officials said granting an exemption to one institution would put the RBI in a spot when a couple of private sector banks are yet to go public.
Tata electric cos join as Haldia co-promoters
The Tata electric companies have now been brought in as additional co-promoters of the much-delayed Rs. 3,600-crore Haldia Petrochemicals project, which is now being steered firmly towards a zero date. The three original promoters are West Bengal Industrial Development Corporation Ltd with 25 per cent of equity contribution, Chatterjee Petrochem (Mauritius) Co. with 25 per cent and the Tatas with 8.33 per cent.
Pillai: CBI assurance to Interpol-Singapore
The CBI has assured Interpol-Singapore of assistance “in all possible manner” in the extradition of the biscuit tycoon, Mr. Rajan Pillai, who was recently convicted by a Singapore court on several counts and came to India before he could be sentenced. The CBI, which is Interpol-India, has informed the Singapore authorities about the surrender of Mr. Pillai in a Thiruvananthapuram court on Friday.