Bhave Opts Out Of All NSDL Probes

NEW DELHI: CB Bhave, whose appointment as the new SEBI chief was formally announced on Friday, has recused himself from all proceedings initiated by the market regulator against National Securities Depository Ltd, the agency he headed since its inception in 1996.

In a statement, the finance ministry said that the government has accepted Bhave's request and has asked the Sebi board to allow a team of part-time members, who were not party to the initiation or processing of such proceedings, to deal with these issues.

"Neither Bhave who was heading NSDL nor the nominee of the ministry of finance on the SEBI board will be involved in this special arrangement. These proceedings will be overseen by a three member team comprised of part time members of the board. The team will associate an eminent legal expert for professional advice," the finance ministry press release said.

Bhave, who has been given a three-year term from the date he assumes office, ran into trouble with SEBI almost two years ago after the infamous IPO scam involving Roopalben Panchal surfaced.

Panchal and her associates had managed to corner large chunks of IDFC and Yes Bank shares by opening multiple demat accounts using photographs of large number of people. On listing, the shares were sold at a premium to the issue price.

Subsequently, SEBI, in a disgorgement order, 10 entities, including NSDL, to return around Rs 116 crore to those who did not get shares.

The order was quashed by Securities Appellate Tribunal. In April 2006, SEBI had accused NSDL of "contributory negligence towards opening of fictitious demat accounts and lack of oversight over its depository participants".

Economy Surges On Manufacturing To Grow By 9.6 Pc In 2006-07

New Delhi (PTI): Recording another year of impressive performance, the economy grew by 9.6 per cent during 2006-07, leading to over 14 per cent increase in the per capital income, the government announced on Thursday.

The improved growth in the GDP, up from 9.4 per cent in 2005-06, has been achieved due to all around improvement in mining, manufacturing and services sectors, which helped to offset the slower growth in agriculture sector, according to the quick estimates released by the Central Statistical Organisation (CSO).

While agriculture sector grew by 3.8 per cent, down from 6.1 per cent, manufacturing sector recorded 12 per cent growth, which is substantially higher than 9 per cent growth recorded in the previous year.

Likewise, mining and quarrying sector growth also improved from 4.9 per cent to 5.7 per cent, according to quick estimates for national income, consumption, expenditure, saving and capital formation.

The impressive showing was also reflected in improvement in per capital income, which increased to Rs 29,642 from Rs 25,956 during 2005-06.

The overall improvement in the performance could also be attributed to an impressive 35.9 per cent growth in capital formation that stood at Rs 14,87,786 crore during 2006-07.

Such higher level of investment was made possible by a significant 34.3 per cent increase in domestic savings that were estimated at Rs 14,41,423 crore during 2006-07 at current prices.