MUMBAI: The Parliamentary Standing Committee has approved the ammendment to the Securities Contracts Regulation Act (SCRA) to include derivatives under the definition of a security, thereby ruling out a further debate on the subject on the floor of the house.

The SCRA Ammendment Bill can now be passed within a month of the commencement of the next parliament session, joint director stock exchange division in the Ministry of Finance, M S Sahoo said today. The bill was moved in parliament on July four, 1998. Addressing the Institute of Chartered Accountants here, Sahoo said the standing committee had approved of the bill with minimum changes. The group was of the opinion that the introduction of derivatives would uplift a sagging capital market, increase investment activity in the country and improve investor confidence.

Introduction of index based futures contracts has been delayed pending ammendment to the SCRA, the 1969 ammendment banning forward trading and subsequent governmentnotification of the same despite the Securities and Exchange Board of India having approved the regulatory framework.

Fag Bearings

MUMBAI: FAG Precision Bearings will now be called Fag Bearings India with German partner FAG AG increasing its holding in the company from 40 to 51 per cent. Despite the slowdown in the auto sector, FAG India plans to expand capacity to launch new products and tap export product, said a press release from the company. ``These products are going to be essentially in the automotive sector the first generation bearings," said JR Patel, MD, FAG India. With the centre keeping track of the extent of indigenisation by auto manufacturers, Indian companies should rise to the occasion and provide worl class products, he said. Fag India also introduced a new line of manufacturing to produce first generation car hub units.