Underwriting fee payment scheme

MUMBAI: The Reserve Bank of India (RBI) has today announced a ``scheme for payment of underwriting fee to primary dealers". According to the scheme, a minimum of 25 % of each issue of Government of India dated securities and treasury bills would be offered for underwriting by primary dealers and the underwriting amount and the underwriting fee will be determined on the basis of the bids submitted and accepted by the RBI for each issue.

The scheme will come into force with effect from June 2, 1997. The scheme replaces the present system of payment of commission to primary dealers on purchases of government securities in the primary market, as also the system of fixing commitment percentages for development on each primary dealer.

Rhone Poulenc

MUMBAI: Rhone Poulenc (India) has earned a substantially higher net profit of Rs 20.23 crore during the year ended March 1997 from Rs 13.69 crore last year. The net sales during the year amounted to Rs 145.84 crore (Rs 135.68 crore) and other income at Rs 10.58 crore (Rs 8.38 crore). It has earned a higher gross profit of Rs 35.10 crore against Rs 29.63 crore. The provision for depreciation is at Rs 3.03 crore (Rs 3.24 crore) and for taxation at Rs 14 crore (Rs 12.70 crore).

Dubai Fair

MUMBAI: The Dubai Summer Fair, the frist of its kind in Dubai, will be held from June 22-July 6 1997 in halls 6 & 7 at the Dubai World Trade Centre.

This consumer show aims at attracting familes and students for shopping and indoor sports events.

Organized by MedEx, the show will offer retailers lucrative opportunities to promote and demonstrate their products and services while offering discounts and promotions to potential buyers in Dubai and the GCC countries. For further information contact: Dubai World Trade Centre LLC, PO Box 9292, UAE Tel:(9714) 3086079, Fax (9714) 3064033.

K D Vora

MUMBAI: K D Vora, chairman, Kapol Co-Operative Bank Ltd, and former president of the Chemists & Druggists Association has been awarded the very first Vyapar Bhushan Puraskar for the year 1997 institutated by Federation of Assocations of Maharashtra (FAM), for his oustanding social services for business community and public.

Sebi

MUMBAI: The Securities and Exchange Board of India has informed the Bombay Stock Exchange on May 7, that it has examined the applicability of rule 8 (1) (f) and 8 (3)(f) of the Securities Contracts (Regulation) rules 1957 in relation to fund based activities of brokers and has opined that borrowing and lending of funds by a trading member, in connection with or incidental to or consequential upon the securities business would not be disqualified under Rule 8 (1)(f) and 8(3)(f). This decision came in the wake of representations received from various stock exchanges .

Copyright © 1997 Indian Express Newspapers (Bombay) Ltd.