NEW DELHI. Dec 31 Finance Minister Manmohan Singh said India had stopped four foreign banks repatriating their profits for 1991/92 (April/ Marchi over their alleged Involvement in the country's worst financial scandal, reports Reuter.

The repatriation of profits of the four banks for 1991 /92 has been withheld." he told parliament at the end of a two-day debate into the scandal.

He did not elaborate on whether the profits were withheld permanently for the banks — Standard Chartered (Stan.L). ANZ Grindlay's (ANZ. Ax). Bank America (BAC.N) and Citicorp (CCI.N).

The government will see to It that the foreign banks func-

tion^yithln the four corners of the country's laws and proper action will be taken If any of them breach the law of I he land, he said

They won t have a licence to flout the laws of the country."

Prime Minister PV Narasi mha Rao said those found guilty would be punished over a scandal In which bankers and brokers are accused of illegally syphoning money from the inter-bank securities market to fuel a stock market boom. He did not elaborate.

Singh, who has offered his resignation after an all-party committee criticised his ministry over the scandal, did not spell out what punishments might be imposed on the banks.

’But he suggested the gov

eminent would not suspend tlielr licences, one recommendation of the committees re port.

"We must caution ourselves Dial we live In a civilised world and therefore any action that we take against them has to be fair and square." he said.

$&06b foreign projects approved

AFP report says: India h proved foreign Investment pro jects worth 2.66 billion dollar between January and November against 1.29 billion dollar for all of last year, the finance ministry said here yestefday.

Investment proposals from the United States, the leading foreign investor in India, rose to

1.11 billion dollar in the first' 1 1 months of the year, from 410 million dollar in 1992. the min istry said In a statement.

Britain. Switzerland and Japan also substantially increased their investment in India this year, it said.

Overseas investment proposals have risen sharply since sweeping economic reforms were launched In 1991. Foreign investment projects worth 4.09 billion dollar have been approved since the economic Mb ei.ilisatlon programme began.

The new economic regime. Introduced by Finance Minister Manmohan Singh, includes easier Investment and profit repatriation norms and a free-floating rupee.