Different strokes

Globally, big investment banks own brokerage houses and also manage billions of dollars. Maloo8217;s offer is currently open and SEBI officials say that Parekh doesn8217;t figure on the documents, but confess to some unease about Maloo8217;s takeovertoo. Investors will probably worry about both.

GE Capital and Ranbaxy

It appears that GE Capital India is as bullish about Ranbaxy8217;s promoters. One of GE8217;s two emerging market funds made a big profit on Ranbaxy last year and also reported to the SEC as one of its top three profits earners the scrip value had doubled. GE Cap has also lent over Rs 200 crore to the family of the Late Parvinder Singh as a sort of bridge loan to 8220;restructure their holding8221;.

Top GE officials say that it is a kind of loan that a lot of other companies would have given and that they have taken reasonable precautions to ensure that the funds do not find their way into the stock market for speculation. At one time though, GE had been trying to flog around Rs 60 crore of this holding with Ranbaxy shares as collateral to an Indian FI. The deal was attractive, but without recourse to GE. The FI initially agreed but later backed out of the deal. GE Capital8217;s India management insists that they are happy to hold on to areasonable portion of the loan. Leading investment bankers, however, are not so comfortable with this loan. They say that if GE8217;s funds are available for structuring bridge finance in an over-heated market, others will do the same and regulators will do well to keep a close watch on lending of this type.

Hectic travel and quiet action

The October-November period is very busy for the SEBI Chairman and his top executives. Starting last week, Chairman D R Mehta will be in Mumbai for just two days on October 25 and part of the 26, in the entire one-month period. He is travelling, mostly abroad. At least four other Executive Directors EDs are also equally busy attending foreign meetings. Their travel schedules are keeping SEBI officials so busy that even a decision to press ahead with action/prosecution against the three companies 8212; BPL, Videocon and Sterlite 8212; who were involved in the price rigging and crash of June 1998, is being kept completely under wraps.

Trade unions want a say

Thelast has not been heard of the Kumaramangalam Birla report a draft on corporate governance. Few large trade union leaders, who feel that their role as stakeholders is not adequately recognised by companies, have written to the SEBI asking for a hearing by the Birla Committee. It will be interesting to see what the panel says about their role.

Tailpiece

The first-ever issue through the book building route continues to make controversial news about disclosures and allotments. Interestingly, when we asked Hughes Software, the beneficiary of phenomenal public support, what it had to say about the allotment process, its spokesperson said that the MD would reply only after a week. It is more than that now and there is still no response did someone say that this is a company of the future, and that we are in living in the days of instant global connectivity and transparency?

Author8217;s email: suchetadalalyahoo.com