january 7, 1995

Essar Oil Ltd. (EOL) has applied to the Securities and Exchange Board of India asking for a revision in the terms of payment for its optional fully convertible debentures (OFCDs) following a demand by Indian financial institutions and mutual funds that they be treated at par with resident Indian investors. EOL is planning to issue OFCDs of Rs. 190 each. Resident Indian investors will be required to pay Rs. 47.50 (25 per cent) on application and the balance on allotment, first and second calls.

HC dismisses suits against Investment Trust

The Madras High Court has dismissed separate suits filed by two shareholders of Investment Trust of India Ltd in which they had sought the grant of an interim injunction restraining the company from giving effect to two resolutions it had passed in the course of an extraordinary general meeting on May 9 last year. The first resolution related to the issue of equity shares on a rights basis to the shareholders of ITI in the ratio of 1: 1 at a premium of Rs. 30 per share while the second resolution authorised the company to increase the stake of the promoters’ group to over 50 per cent through a preferential allotment at the same premium as offered to the rights shareholders.

Japan to establish $1 b. credit line for India

Japan has decided to establish a line of credit I of up to $1 billion for a two-year period and further lower the rates of export-insurance and investment-insurance premia for India to support its economic development programme. The Japanese Minister for International Trade and Industry, Mr. Ryutaro Hashimoto, told delegates at the Joint Business Council meeting that his country was also ready to provide “in principle” cover of up to three billion yen per contract.

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