India Is Now A Space Power
Hurling the Geosynchronous Satellite Launch Vehicle into orbit from Sriharikota marks the maturing of India's space faring capabilities. Besides saving on the costs of launching its own satellites, the country has entered the billion-dollar space launch market.

Moment Of Reckoning
The polls are likely to be milestones for the political parties. In Tamil Nadu, Karunanidhi is poised to hand over the mantle of the DMK to his son Stalin. And in West Bengal, Mamata may find it takes more than aggression to win a mandate.

Breaking Trust
UTI's dealing in Ketan Parekh's favourite shares has been under a cloud and SEBI's report on the stock-rigging scandal reaffirms suspicions. Bogged down with chunks of worthless shares, UTI's credibility has taken a nose dive.

Cold-Blooded Gamble
Sudden, violent skirmishes along the India-Bangladesh border leaves many dead and raises worrisome questions about peace and security in the North-east as a "friendly" neighbour's problems spill over.

Blue Sari Mystery
A dead polo player, a beautiful woman, an unclaimed garment. The Rajasthan High Court orders the police to look into the case.

BUSINESS: STOCK SCAM

EXCLUSIVE SEBI REPORT
Naming The Culprit

By Prabhu Chawla and Rohit Saran

The night of April 14 was very long on the first floor of Mittal Court in Nariman Point, Mumbai. Officials of the Securities and Exchange Board of India (SEBI) were scrambling to meet the
April 15 deadline for submission of their report on the stock scam. Chairman D.R. Mehta was in office virtually the whole night as officials reeled out the five-chapter, 92-page report. Next day SEBI's Senior Executive Director I.K. Singhvi flew to Delhi to present it to Finance Minister Yashwant Sinha. The first draft, studied among others by Finance Secretary Ajit Kumar and Adviser to the Finance Minister Rakesh Mohan, had some portions missing which were later filled in.

Though preliminary, the SEBI investigations reveal the persons who rigged the markets, the method they adopted and the corrective actions that must be taken. Three major findings of the investigation:

FII'S ROLE IN MARKET MANIPULATION

One of the most striking findings of SEBI's investigations is the alleged rigging of share prices by foreign institutional investors (FIIs) in collusion with the fallen Big Bull Ketan Parekh. SEBI claims to have "found that certain sub-accounts of FIIs (accounts of small foreign investors who invest in India through FIIs) have been predominantly transacting in the scrips that are identified with Ketan Parekh and his companies".

For instance, Coral Reef Investment Company, CAL FP (Mauritius) Limited and DBMG of (Mauritius) Limited-which are sub-accounts of FIIs RP&C International, Credit Agricole Lazard Fin Prod and Deutsche International Trust Corp CI-have mostly transacted in the shares of HFCL, Zee, DSQ Software, Silverline, Global Trust Bank (GTB) and Aftek Infosys. These are all known to be Ketan Parekh's favourite stocks.

The sub-account's transactions in these stocks range from 51 to 94 per cent of their total transactions in value terms. Besides, most of these transactions have been put through broking companies connected to Parekh.

The SEBI report also hints at the "possibility of misuse of investment and automatic repatriation facility to FIIs" through a system of what is known as Participatory Notes (PNs). Loosely defined, PNs are receipts of transactions issued by the FIIs to foreign investors on whose behalf they buy or sell shares in India. According to SEBI, PNs "allow the participants to trade in the stocks of Indian companies anonymously and indulge in circumvention of laws including takeover code" as well as manipulate the markets.

It also opens the possibility of repatriation of profits based on the rigged prices, causing foreign exchange outflow. The investigation also found many Overseas Commercial Bodies (OCBs) registered in Mauritius trading heavily in stocks identified as Ketan Parekh stocks. The SEBI suspects many of these OCBs were actually operated by Indians. One advantage of doing so is the exemption from capital-gains tax Mauritius-based companies enjoy on their incomes from stocks transactions in India.

A foreign broking company that the SEBI's investigation has zeroed in on is Credit Suisse First Boston (I) Securities (CSFB). Between January and March 2001, Ketan Parekh group companies made sales worth Rs 1,813.77 crore through CSFB at the Bombay Stock Exchange and the National Stock Exchange. After investigation into the transactions, SEBI concluded that "these transactions are in the nature of funding by the member (CSFB) to Ketan Parekh group. The member acted in collusion with Parekh". Though CSFB clarified to the SEBI that its transactions had taken place in the ordinary course of business, the SEBI report had reasons to conclude that "these are not genuine transactions but are highly irregular in nature and in violation of rules and regulations governing fair and transparent dealing in securities."

JM Morgan Stanley Securities is another foreign broking firm SEBI investigated. Though the report found "instance of transactions that appear to be manipulative and could have impacted the decline in some share prices", it refrained from passing a judgement in the absence of a detail analysis of the trading by the firm.

MetroScape

Operation Opera
If he can pull it off, it might well be the highpoint in India's cultural and tourism calendar for 2002. After restoring heritage properties and turning them into highly successful resorts, Francis Wacziarg is now turning to producing a full scale opera in Delhi.
more...

Looking Glass

Calcutta Restaurant: The Hub

Delhi Film Club:
Habitat Film Club

Delhi Bar: Golf Bar

Mashobra Resort: Wildflower Hall