Different Strokes

Where is the Parekh report?UTI would do well to release the Deepak Parekh report if it wants credibility for its aggressive corporate go...

Where is the Parekh report?

UTI would do well to release the Deepak Parekh report if it wants credibility for its aggressive corporate governance8217; campaign. For two weeks now, it has been leaking convenient morsels from the report to various newspapers. We hear that the Parekh report is already a much diluted version of its initial comments. If UTI is afraid of releasing even this, it does not say much about its seriousness to clean up. By the way, while Parekh gives UTI three years to switch to a NAV based pricing, my guess is investors are not going to give it the luxury. Foreign mutual funds are already mopping up huge sums of money 8212; even the discredited Morgan Stanley has improved its NAV. When Citibank and AmEx join the race, UTI had better watch out. While it will be busy running other companies through nominees on their board, the competition will have walked away with the investors.

Comparing regulators

The CAG8217;s strictures about the big spending ways of the telecom regulatorTRAI are giving the jitters to another regulatory body 8212; the capital market watchdog, SEBI. As this paper reported, TRAI benchmarked its perks against SEBI. If TRAI is pulled up for foreign jaunts, the CAG cannot have missed the frequent travel by top SEBI officials on hefty daily allowances. In fact, SEBI insiders direct recruits as against outsiders8217; on deputation refer to the occasional presence of one particular executive director ED as visits8217; to the homeland 8212; a few others are not too far behind. Sources say that the protests of SEBI8217;s officers against the ascent of one director to the post of ED is also getting them sympathy from officials at North block. Since SEBI and its perks are the benchmark for all regulators there are bound to be some interesting developments on this front.

Building blocks

While on spending, SEBI has topped a bid from Kumarmangalam Birla to acquire ICICI8217;s old office building in south Mumbai. ICICI itself has moved to the new financial district atBandra-Kurla, to a building so swank it is described as 7-star8217;. Apart from fancy interiors, architects say the atrium style will cost it a packet on air-conditioning. Estimates put the cost of land, building, and fixtures at a few hundred crore. But ICICI8217;s may not be the fanciest building yet. Infrastructure Leasing and Financial Services, with help from its close associate Mahindra amp; Mahindra is constructing a smart building8217;. Going by ILamp;FS8217; present offices, it is expected to top ICICI8217;s glitz. Did someone say something about stock prices?

Panic stations

Corporate grapevine has it that RBI has appointed two full-time inspectors to keep a vigil on a south-based finance firm which has collected over Rs 600 crores in fixed deposits and is threatening to go belly up. The RBI does not want a panic and is hoping to salvage the situation without triggering off a run on the money.

Irrelevant views

While MPs agitate about Mohan Guruswamy8217;s allegations, no one8217;s asking for UTI8217;s views on ITCshares. The trust is, in fact, in favour of increasing holdings, based on a theory that keeping BAT on tenterhooks will raise ITC prices. It also believes ITC8217;s management when it says that BAT control will be bad for ITC.So what are our MPs agitated about, particularly the Congress party? Is it because it believes from it own experience in government, that UTI8217;s views are irrelevant?

The authors e-mail: suchetadalalyahoo.com