Govt approves bill to empower SBI subsidiaries | business | Hindustan Times
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Govt approves bill to empower SBI subsidiaries

Govt approves a Bill that seeks to empower the boards of the seven subsidiaries of the SBI more operational freedom and improve corporate governance, reports Gaurav Choudhari.

business Updated: Apr 19, 2007 19:27 IST

The Union Cabinet on Thursday approved a Bill that seeks to empower the boards of the seven subsidiaries of the State Bank of India (SBI) more operational freedom and improve corporate governance.

The Cabinet on Thursday approved the State Bank of India (Bank Laws) Amendment Bill with a view to enhancing flexibility and powers of the banks' boards and improving corporate governance.

It would bring the operations of these banks in tune with the changed scenario and modern business practices, a government official said. The Bill seeks to empower the boards to frame their own regulations and improve corporate governance.

The Cabinet also approved the proposal to allow GVK Power and Infrastructure Ltd to issue over 7.8 million shares to NRI shareholders of its sister concern GVK Industries Ltd. This would enable the company to bring $500 million into the country. GVK Power and Infrastructure Ltd will issue and allot 78,58,388 equity shares of Rs 10 each to non-resident shareholders of GVK Industries Ltd amounting to up to 7.63 per cent of the post-issue paid up equity share capital of GVKPIL.

The Cabinet also approved the proposal to permitted foreign investments of up to $250 million dollars (about Rs 1,050 crore) in projects of DHFL Venture Capital Fund. The Cabinet gave its approval to overseas investors for investing in Class B units of Dream II scheme of the Mumbai-based venture capital fund.

DHFL Venture Capital Fund India Pvt Ltd, whose principal shareholders include Dewan Housing Finance Corporation Ltd, will manage the Dream II scheme. Foreign investors can make investments through one or more special purpose companies or their subsidiaries. The Dream II scheme proposes to issue four classes of units. While Class A units will be issued to only domestic investors, Class B units will be offered to offshore investors.

The Cabinet also gave its approval for undertaking legislation amending the Indian Boilers Act, 1923. The amendments in the Act will modify the outdated provisions of the present Act, which was enacted in 1923, for inspection of boilers during use and will provide for the inspection of boilers during manufacture, operations and maintenance in line with the present technological developments throughout the world.

The Cabinet also gave its approval to move the new amended Bill for repealing the Carriers Act, 1865, and enacting the new Bill namely the Carriage by Road Bill, 2005. The new legislation will cater to the present-day requirements of trade and transportation in road transport sector.