February 12, 2001

Going After the Hindujas
It's funny how the Indian press is so lukewarm about the Bofors case even though the trial has begun and the famous Hinduja brothers have had their passports impounded. In the UK however, the Hindujas connection with the ruling politicians has made it the hottest story to chase. The bluest of British newspapers, television networks and magazines are working overtime to unearth some Indian shenanigans of the four brothers. From mundane stories like the alleged bid to takeover a sports ground, to charges by Sindhi community that the brothers cheated them - it is all being investigated. One network even wanted us to dig up our 1990 reports to see if there were any Hinduja connections to the notorious BCCI bank which had collapsed that year. But even though they are chasing down every clue and tracking the most tenuous link, most journalists have drawn a curious blank. The Sindhi investors of the Indusind group have been bailed out through a buy-back deal and it seems as though the Bofors is history. It is almost as though nobody has a problem with the groups anymore or does not want to talk about it.

Holding the job
SEBI chairman D R Mehta's decision to transfer two key portfolios (primary markets and takeover) to Prof. J R Varma has sparked off an interesting debate. Some senior executives believe that as a member of the SEBI board Prof. Varma ought not to hold operational charge of portfolios. They say that it reduces the Member to the level of an Executive Director. Others believe that Mehta has only asked Prof. Varma to hold fort temporarily and that he already has someone lined up for the senior executive director's job. This view gathered further momentum when Yashawant Bhave, the Maharashtra cadre bureaucrat often described as 'everybody's blue-eyed boy' was seen meeting the chairman. Bhave was being escorted by former Sr ED O P Gahrotra - also a Maharashtra bureaucrat who goes back to his State posting. There is talk about Bhave having sent in an application for the job. A fair exchange? Yashawant Bhave, who has suddenly quit as chairman of the Maharashtra State Electricity Board (MSEB) was on leave until recently. Interestingly, at one time there were two IAS - wallahs at SEBI. C B Bhave, who was SEBI's first Maharashtra babu has since quit government and moved to the National Share Depository.

Calcutta capers
The unofficial market in calcutta continues to wreak havoc on prices at the two major stock exchanges. During the closing hour on Friday, stock prices turned weak and the Sensitive index collapsed a coal 103 points on fears that a calcutta operators was unable to pay up a huge liability. The panic was partly exaggerated by end of account consideration and the long bank holiday. Market sources, who from part of the old economy bull group believe that the crisis will blow over, and the big fall in the NASDAQ has only amplified the week end jitters. The bull operators are also working overtime to avoid a crisis. With election round the corner in several States, a booming stock market good for raising funds - political parties too are determined to keep the rallying going, at least until the Budget.

Exit Damani?
A After toying with the idea of filing an appeal against the Supreme Court verdict, stockbrokers have finally decided that their best is to plead with the SEBI for a sympathetic interpretation of the R S Bhatt committee report, on broker turnover fees. A group of NSE brokers turnover fees. A group of NSE brokers met top EBI executives last week and pleaded for an interest waiver... The week Bombay Stock Exchange has gone a step further. It has formed a committee of brokers and office bearers which is empowered to confabulate with SEBI on their behalf. The one person missing from this committee is the former Brokers Forum leader M G Damani. Brokers believe that it was his misplaced confidence that had egged them on to fight the regulator; they now believe that they would have had a more favourable verdict had they pleaded for concessions instead of rejecting the payment of fees altogether and blame Damani for their stand. Brokers close to Damani explain his absence from the negotiating team saying that he is not on the committee because he is no longer a broker. Though broker are set to plead their case, SEBI sources say that granting concessions may not be easy. For starters, the Ahmedabad brokers who did not get a stay order have paid their entire fee; also smaller brokers and foreign brokers have also begun to send in their cheques. This would leave just about 300 odd brokers with a serious problem. Though SEBI has agreed to sympathetic consideration it is making no promises.

Updated weekly.

The author's e-mail address is: suchetadalal@yahoo.com

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