Questioning Of Vinod Baid Unnerves Marketmen

This is the second jolt to the Calcutta market in four days. Ajay Kayan, another topnotch stockbroker, was arrested last Saturday and released on bail on Monday. Kayan had been arrested in connection with the securities scam case involving Canfina.

We are wondering what the next shock to this already dwindling market will be, said a senior broker.

Prudential Capital Markets, a non-banking finance company formed in 1987 and reckoned among the top 10 in the country, is bound to receive a setback with this development.

Baid, whose office and residence was searched, is seen as a key market connection in the ITC imbroglio.

 

The raids were conducted to ascertain the relationship between Baid and ITC and ITC Classic, ED sources said.

Prudential Capital Markets, a non-banking finance company formed in 1987 and reckoned among the top 10 in the country, is bound to receive a setback with this development.

Baid, a chartered accountant, started his career as finance manager to Kanoria Chemicals and in 1987 and floated Prudential Capital Markets with the view that a professionally managed merchant banking unit or a stock-broking company will be of immense help to small and medium entrepreneurs.

Prudential Capitals clients include the Industrial Finance Corporation of India, MMTC, Steel Authority of India, Shaw Wallace, Peerless General Finance & Investment, ITC Ltd, ITC Agro Tech, ITC Classic, ITC Bhadrachalam and ITC Hotels.

The company recorded a total income of Rs 44.83 crore and a net profit of Rs 24.64 crore in 1994-95.

The paid-up capital of the company in 1994-95 stood at Rs 13.59 crore.

In March 1995, the Prudential Group announced plans to float a mutual fund which would be initially close-ended with a size of Rs 18 crore. But the launch got mired in investigations. Eventually, the Securities & Exchange Board of India refused clearance to the mutual fund.

The group has four main divisions under its ambit capital markets, stock-broking, industrial enterprises and international business. Prudential Venture Capital and Prudential Housing Finance comprise the capital markets group.

The stock-broking group consists of Prudential Stocks & Securities, Prudential Securities Corporation, Prudential Stock Broking Services and Prudential Share Broking.

In industrial enterprises, the group functions through Prud-ential Mouli Sugars, Prud-ential Tea and Prudential Indus-tries.

Finally, the group involved in international business includes Prudential International, Prude-ntial Infotech and Prudential Tea Exports.