PM promises sops to market

The government also plans to take policy initiatives on the basis of the recommendations made by the six task forces appointed by the Council on Trade and Industry. The six task forces have been appointed to give recommendations on capital markets, agro-processing, infrastructure, financial sector reforms, service sector and legal and administrative changes.

The Prime Minister is expected to announce thegovernment’s decision to go ahead with an ordinance for implementation of buy-back of shares by companies as a part of the package to boost the capital markets.

Buyback of shares is expected to be permitted without requiring a case-by-case approval from the Department of Company Affairs. Additionally, the government’s intention to provide flexibility on the limit on intercorporate deposits would be announced paving the path for corporates to go ahead with their investment plans in subsidiary or third companies without seeking DCA nod.

The prime minister is also expected to announce the government stand on allowing issue of sweat equity to the director of software companies.

The buyback ordinance has been long awaited and an indication to its promulgations soon was given by finance minister Yashwant Sinha last month.

Vajpayee is also likely to unveil government’s fresh initiative to put the private sector projects in basic and cellular on stream which have been plagued by problems. A large number oflicence holders in the basic service sectors have not started their services since they have not been able to pay the whopping licence fee in the wake of reluctance of financial institutions and banks to lend money. Similarly, majority of the cellular companies and paging companies are in the red as their operating costs are much higher than the revenue earnings.