SBI Capital Markets, which is acting on behalf of financial institutions for the sale of MRL stake, had extended the last date for submission of `techno-financial proposal' to December 15, as it received only five bids and none from well-known groups, Gupta said. Unit Trust of India (UTI), Life Insurance Corporation (LIC) and General Insurance Corporation (GIC) hold substantial chunk of the 44 per cent stake in MRL. IDBI's stake in MRL is "very less", Gupta said after addressing a seminar on corporate governance organised by the Lal Bahadur Shastri Institute of Management here.

Institutions ledby LIC, GIC and UTI have decided to sell their stake in Modi Rubber as the company was not managed to the expectation of the shareholders. "We have all the support of finance ministry and the government," Gupta said when queried whether government supported the institutions move.

Gupta said five companies including domestic companies had evinced interest to buy equity in MRL, when the earlier set date to close the bid elapsed last week. SBI Caps has now extended the date and asked the interested parties to submit their bid accompanied by documents supporting their eligibility to buy 44 per cent in the company before December 15. "We hope to complete the sale procedure before the end of this fiscal," he said.Earlier, Gupta said the main reason for companies not performing despite having well-known names on their boards was due to "lack of adequate compensation" for the members.

Gupta called for an increase in compensation for nominee directors and non-executive directors to at least Rs 5,000 per sitting sothat these board members would show adequate interest in working of companies. Currently the nominee directors and non-executive directors were paid only meagre amount for sitting in a meeting, which could extend for one full day, he said.Gupta said these members should also be given adequate information on the working of the company allowing them to guide the company in a better way.

On IDBI's plans to foray into the insurance sector, Gupta said the institution was negotiating with three foreign insurance companies and a final decision would be taken by this month-end. IDBI is planning to enter the life insurance sector once the sector is opened up for private players, he said.