No policies please, its election time

Exporters are quite upset about this development. Some are planning to approach the EC so that they can persuade the EC to allow the Ministry to make the announcement.

While a timid Commerce Ministry has held back its plans, the Industry Ministry has gone ahead, firm in the belief that it is not violating any code of conduct. Industry Minister Murasoli Maran announced a fresh stock option scheme for public sector employees. This comes close on the heels of announcement of the acceptance of the Vittal Committee report that slashed the number of guidelines ruling the public sector. There are also reports that the Finance Ministry is going ahead with the disinvestment of some PSUs like Modern Foods and Bharat Aluminium.

The new stock option scheme would replace the existing one for direct sale of up to 200 shares per employee. Under the new scheme, a trust named Employees Mutual Benefit Fund would be created by the disinvesting PSU for holding shares offered to employees. The trust will ensure continuity as employees will be allowed sell shares only to the trust. The scheme will be applicable to all cases of disinvestment or fresh equity by a PSU and would be subject to provisions of Company Law and SEBI guidelines as applicable from time to time. Employees will be offered five per cent of the paid-up capital at a 15 per cent discounted price on the average disinvestment price with a lock-in period of three years. The PSUs do not need to seek specific approval of the Government for promulgation of the scheme within the broad parameters, he said.

Tying up funds

Morgan Stanley, one of the largest investment banks in the US, has tied up with one the oldest Indian investment banks JM Financial. The two companies announced the setting up of two joint ventures. JM Morgan Stanley will be involved in domestic business of investment banking, retail distribution and fixed income securities. JM Financial will hold 51 per cent and Morgan Stanley 49 per cent of the joint venture. The other venture JM Morgan Stanley Securities will deal with stock broking operations and institutional equity sales. In this venture Morgan Stanley will hold a majority stake of 51 per cent while JM will hold the rest. This venture will compete with the other biggies in the financial markets like DSP-Merrill Lynch.

Friends again

Indo-Russian ties are on a upswing. After a Joint Commission meeting, the Governments have agreed to set up a free trade zone between, India, Russia and some CIS countries. Both sides also resolved issues relating to the sale and building of two nuclear reactors at Kudamkulam, in Tamil Nadu. The two plants are worth $2.5 billion. The two countries achieved important decisions that have so far hampered the bilateral relationship from taking off since the break-up of the Soviet Union in 1991 end. The Rs 3000 crore debt (total debt is Rs 30,000 crore) that India annually pays Russia will now be auctioned in Moscow.