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RBI withdraws Directions issued to Kisan Nagari Sahakari Bank Maryadit, Parbhani, Maharashtra

Written By Unknown on Senin, 13 April 2015 | 23.07

RBI withdraws Directions issued to Kisan Nagari Sahakari Bank Maryadit, Parbhani, Maharashtra - Moneycontrol.com
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Apr 13, 2015, 07.40 PM IST | Source: RBI

RBI withdraws Directions issued to Kisan Nagari Sahakari Bank Maryadit, Parbhani, Maharashtra

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RBI withdraws Directions issued to Kisan Nagari Sahakari Bank Maryadit, Parbhani, Maharashtra

RBI withdraws Directions issued to Kisan Nagari Sahakari Bank Maryadit, Parbhani, Maharashtra

The Reserve Bank of India has withdrawn the All Inclusive Directions issued on January 29, 2015 to Kisan Nagari Sahakari Bank Maryadit, Parbhani, Maharashtra with effect from close of business as on April 09, 2015.

The withdrawal of Directions is in exercise of powers vested in the Reserve Bank under sub section (2) of Section 35A of the Banking Regulation Act, 1949 (As Applicable to Cooperative Societies). A copy of the Order is displayed on the bank's premises for perusal by interested members of public. The bank will continue to undertake regular banking business hereafter.

Alpana Killawala
Principal Chief General Manager

Press Release: 2014-2015/2163

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23.07 | 0 komentar | Read More

DSP BlackRock Balanced Fund announces dividend

DSP BlackRock Balanced Fund announces dividend, the record date for dividend is April 17, 2015.

DSP BlackRock Mutual Fund has announced dividend under regular plan-dividend option & direct plan-dividend option of DSP BlackRock Balanced Fund, an open ended balanced scheme. The record date for declaration of dividend is April 17, 2015.

The quantum of dividend on the face value of Rs 10 per unit will be Rs 0.80 per unit under each plan as on the record date.


23.07 | 0 komentar | Read More

Lakhvi release: India should be composed collected

R Jagannathan
Firstpost.com

The release of 26/11 mastermind and Lashkar-e-Taiba commander Zakiur Rehman Lakhvi is not something we should keep wringing our hands in despair about. Pakistan is never going to bring him to justice for the simple reason that he is a creation of the core Pakistani state – which is not civil society, but the army and the ISI.

The right response from India should be composed and collected, and run something like this: "While we are saddened by the release of Zakiur Rehman Lakhvi, the man responsible for the killings of around 170 people in Mumbai in 2008, we acknowledge that the task of making him to pay for his crimes is currently that of Pakistan, in whose territory the 26/11 terrorist plot was hatched and master-minded. The evidence for his conviction for the crime of terrorism lies both in Pakistan and in India. If Pakistan wants to convict Lakhvi, it can find the evidence at home since the LeT, of which Lakhvi is commander, is based there. Preventive detention of Lakhvi without looking for and providing local evidence will always be subject to court scrutiny. We are thus not surprised that a court has set him free. India, for its part, will focus on bringing him to justice�in India, whenever possible, as we have the evidence to nail him. India is always willing to provide the evidence to Pakistan, as we have done in the past. We will continue to talk to the government of Pakistan consistently and continuously to get justice done."

India should accept that no court in Pakistan can keep a man in jail forever purely on the basis of preventive detention laws. And Lakhvi has spent nearly six or seven years in jail - with special privileges, including conjugal rights. This has been done largely for global optics, to show its US patron that it is hard on terror, when the reality is that Pakistan is mollycoddling the anti-India group of terrorists. Keeping Lakhvi in jail through political pressure is pointless. Ask yourself: if Lakhvi is a creation of the Pakistani state, why would the mere fact of his being in jail limit his ability to plot terror? Lakhvi can direct his next terrorist operation against India from prison, and he will even have plausible deniability on it. His alibi will be that he could not have plotted any terror since he was already in custody!

In fact, we should forget about getting the Pakistanis to nail him and instead find a way to nab him and bring him to justice�in India�- even if it takes five years to launch a covert operation for this. If nothing else, we should quietly leak stories suggesting that India has sent two assassination squads led by disaffected Baloch and Sindhi rebels to capture or kill him on our behalf. Let Lakhvi spend his remaining years worrying about his life instead of living it up in a fake prison.

The one thing we should not do is keep bringing up Lakhvi's bail with Pakistan - which unfortunately we have done in a kind of Pavlovian response to his release yesterday (10 April). Nothing pleases the Pakistanis more than India displaying its impotence about 26/11's chief perpetrator.

The kneejerk political reaction to the Pakistani recalcitrance would be to suspend talks - but we should never do that. We should instead give Pakistan that privilege by persisting with talks all the time and frustrating them by yielding nothing substantive in these sessions. The sole purpose of talk is optics and more talk - to show the world we are reasonable people. Consider how long China has prolonged border talks without allowing any forward movement. Sometimes talk may yield results – in the form of easier visas, or more trade, but reciprocity should be the name of the game. Talking does not mean conceding more to Pakistan than what they are willing to concede to us. Talks will succeed only when the will of the Pakistani state to support terrorism against India is sapped or defeated. But there is no sign of that at all.

So, talk we must, even if we achieve nothing. In fact, we should use the Lakhvi release to launch the next round of talks where we can focus on terrorism and present our evidence again – but with the full knowledge that nothing will come of it.

Remember Salman Bashir, former Pakistani ambassador to India? When he was foreign secretary, he had contemptuously dismissed the dossiers we presented on 26/11 as mere "literature." Nothing thrills a Pakistani more than putting us down. So we should not give them further pleasure on this score.

The problem is we have allowed the Pakistanis to play the game their way – which is to keep lying and pretending they want a good relationship with us, and all that stands in the way is the Kashmir issue. We start believing that "this time it is different", and we end up signing worthless agreements in Shimla, Lahore and Agra, which finally end in the dustbin. Pakistan talks only if it is in a difficult situation (9/11, 26/11), and once the immediate peril has passed, it reverts to its old jihadi strategy.

To be sure, India is not the only one making the same mistakes repeatedly. The US too has been led up the garden path by Pakistan, but the difference is we are next-door. America does not usually have to pay too high a price for its mistakes. We do. The idea that Pakistan is somehow an ally in the war on terror, and also a victim, has been repeatedly bought by foolish bureaucrats in the US state department – as evidenced in the recent decision to offer nearly USD 1 billion in military aid to buy attack helicopters and missiles. Are missiles going to be used against the Taliban or India?

The truth is Pakistan will not end its antagonism of India even if we offer them a deal on Kashmir . As C Christine Fair, author of a book on Pakistan's army, said in an interview to The Times of India last year, "Pakistan is an ideological state. The Kashmir issue is not causal, it's symptomatic. If there were to be any kind of negotiation on Kashmir that gives up any inch of territory, it is not going to fix the situation."

In a more recent post , Fair notes that the Pakistanis have managed to paint themselves as victims of terror and suckered the US government to pour even more money into that terror headquarters. She notes that in return for nearly $31 billion in aid and transfers to Pakistan since the early 2000s, all the US got in return was the deaths of thousands of American, allied and Afghan soldiers and civilians due to covert Pakistani support for violent Islamic jihadis and the Taliban.

Terrorism is official state policy in Pakistan. She writes in a recent blog: "This sort of behaviour has become Pakistan's standard operating procedure. Since 1947, Pakistan has used Islamist militants in an effort to wrest Kashmir from India. It has used Islamist militants in Afghanistan since 1974, if not earlier. Since 1990, Pakistan has introduced extremely lethal groups such as Lashkar-e-Toiba (LeT, now operating under the name of its above-ground wing Jamaat-ud-Dawa, JuD) and Jaish-e-Mohammad into the Kashmir theatre and elsewhere in India. Since 2002, according to the Global Terrorism Database at the University of Maryland, these two groups have killed more than 1,132 persons and injured more than 2,423 in about 162 attacks."

Fair, in fact, points out that Pakistan has developed tactical nuclear weapons not to defend itself, but to deter India from any kind of short-term reprisals when the next major terror attack is unleashed by the likes of Lakhvi and Masood Azhar. Put another way, it means Pakistan's nuclear strategy is to�enable terrorism, not defend the country.

It is time we woke up to this reality. Our simple Pakistan policy should be four-fold: talk, plot, defend, wait. We should�talk�endlessly and use soft words to describe the possibility of solving all our mutual issues, including poverty, terrorism, etc. We should�plot�more covert operations and gather intelligence in Pakistan, and especially against the likes of LeT and Lakhvi. We should�defend�ourselves as best we can against terrorism - but it will never be foolproof. And we should�wait. Give Pakistan 15-20 years and its blind hatred of India can only lead to some form of self-destruction.

As counter-terrorism expert Ajai Sahni wrote in Firstpost last month : "From a geo-strategic perspective, as far as India is concerned, Kashmir is a holding operation, even in the absence of an effective competitive strategy. If India holds on to Kashmir for another 15 or 20 years, Pakistan will destroy itself, even without India doing anything substantial to secure this end."

We should wait for Pakistan to self-destruct – unless, through an unexpected miracle, it corrects itself and truly wishes peace. But when 9/11 did not change Pakistani attitudes, I would not bet even one paisa on this possibility.

Let's be clear. We have no stake in keeping Pakistan united when the Lakhvis, the LeTs, the Jaishes and the Taliban are busy rending it apart. A Lakhvi outside jail won't be able to plot any more anti-India terror than what he could have done anyway from jail.

We will serve our own interests better if we let Pakistan implode under the weight of its own contradictions. Lakhvi will get it there faster.

The writer is editor-in-chief, digital and publishing, Network18 Group


23.07 | 0 komentar | Read More

Centre must push ahead for Pandits to return to Kashmir

R Jagannathan
Firstpost.com

The issue of the return of the Pandits to Kashmir Valley more than 25 years after their ethnic cleansing by rabid fundamentalists has moved centrestage, with both Centre and state making positive noises about it. Actually, there is no time like the present for a return of the Pandits to their homeland, with a PDP-BJP government in place that represents both Muslims and Hindus.

But the window of opportunity is narrow. Twenty-five years is a long time in exile. One generation - possibly one-and-a-half - has come into being, and possibly has no sentimental links to the Kashmir Valley that was their parents' home. So, if justice is not done now, it may never be done at all. Wait another decade, and there will be no older generation Pandit left to rehabilitate.

This may be what Pakistan wants, and what the separatists may also not mind, but that is precisely why the Modi government should push ahead immediately with their rehabilitation on the basis of a workable compromise. Delay suits no one but the Pakistanis and the ISI.

As things stand, despite the fact that no Kashmiri group opposes the return of the Pandits to the valley, consensus breaks down on the question of how: should they be invited back to live in (or near) their old homes with their Muslim neighbours, or in hermetically sealed clusters.

No party actually wants a Pandits-only cluster - and with good reason. A purely Hindu enclave in a largely Muslim valley is like an open invitation to jihadi targeting even while reducing the Pandits to a ghetto-like existence estranged from their old neighbours. It is not worth returning to a communally-polarised Kashmir. The purpose of the Pandits' return should, apart from doing them justice, should be to make the valley secular again. This can't happen without the Pandits.

It is interesting that all Kashmir-based parties made references to Israel and Palestine when opposing the Pandit cluster idea. The problem though is in their understanding of where the parallels lie. The Israelis have built settlements in Palestinian areas, and most separatists see this as the situation they want to avoid. They don't want Pandit settlements in their land.

But the real point is this: the Pandits are the Palestinians of Kashmir Valley. They are the ones on whose land fundamentalist forces encroached and drove them out. It is the Muslims of the Valley who need to see themselves as aggressive Israelis in this case.

It is worthwhile analysing the various players and what they may really want in this situation.

One, Pakistan and the ISI would not want the Pandits to return for the simple reason that the secular character of Kashmir will work against their ideology of religion-based national identity The fewer the Pandits in the Valley, the more it is possible to paint India as an occuptation force in Kashmir. Also, the ISI can hope to prise a portion of Kashmir away from India only if it can maintain a constant insurgency there. So they will do everything to prevent the Pandits from returning.

Two, the pro-Pakistani separatists, including Syed Ali Shah Geelani, who wants Kashmir to be an Islamic state, are the elements to watch. Their gameplan is similar to Pakistan's even though they want the Pandits to live like intimidated minorities among them - like Hindus in Pakistan. They would probably prefer the Pandits to live as Koranic "dhimmies" (protected minorities in an Islamic state and, effectively, second class citizens), but without having to pay "jiziya". Their ambivalence towards the Pandits' return was on display today in Yasin Malik's stone-throwing protests.

Three, the mainstream political parties want the Pandits to return and live in their old homes, but beyond opposing ghettoes they are not clear how they will actually facilitate the return of the Pandits in peace and amity. The mainstream parties - essentially National Conference and PDP - live in fear of both the separatists and Pakistan, and do not have the gumption to provide an acceptable solution to the Pandits. Or else they would have come up with ideas of their own by now.

Four, the BJP wants the Pandit vote and will not mind having a Hindu cluster in the Valley. But with the party now in alliance with the PDP in a coalition government, it may accept the idea of mixed Pandit-Muslim clusters. The BJP's actual position is confused and still evolving.

Five, the Pandit-based political outfits like Panun Kashmir would like an autonomous Hindu enclave - which is not going to happen. Ordinary Pandits are not sure they want to live like prisoners in a Hindu ghetto.

Is there a compromise possible?

The way ahead could lie in developing Pandit-based clusters right in the places where they lived earlier - next to their Muslim neighbours - with Muslims also being allowed to take up flats or residence in these hybrid clusters. Young Muslims moving out of ancestral homes nearby may like this option, but how this is to be done should be an individual choice.

Unobtrusive security will be critical in the initial phases of this resettlement, and this security will have to come from the local police and residents themselves, with the army or CRPF providing only covert support from a distance.

A political understanding between all Kashmir-baed parties - both mainstream and separatist - guaranteeing the safety of the Pandits is vital. If the separatists don't play ball on this, the idea won't fly - and they will stand exposed as nothing more than rank communalists.

But one objective must be clear to everybody: the return of the Pandits, in separate or mixed enclaves, is non-negotiable, never mind what Pakistan wants. The only issue on the table is how, and with what assurances and compromises, this should be done. This ethnic cleansing has to be reversed at any cost. The time to deliver a modicum of justice to the Pandits is now.

The writer is editor-in-chief, digital and publishing, Network18 Group


23.07 | 0 komentar | Read More

5 risks investor faces in risk-free fixed income investing

Fixed income investments are exposed to risks such as credit risk, inflation risk, market risk among others.

Image

Nitin Vyakaranam
ArthaYantra

Many of us believe that there are a few 'Risk-Free' investments available in the market. It is a myth that investing into these risk-free instruments would yield us good returns without taking any risk. If we search the term 'risk-free' interest rate on internet, it shows us a definition which says "risk-rree interest rate is the theoretical rate of return of an investment with no risk of financial loss".

We believe that fixed income investments like PPF, FD, RD, and government bonds instruments provides us risk-free returns. This is because we profoundly trust banks and government which ensures their credibility and returns. To an extent these facts are right but there is an element of risk in these investments which should not be ignored by the investors.

Here are some of the risks that an investor has with the risk-free investments:

1) Credit Risk
Credit risk may arise when the investment issuer defaults in paying debts. Default can happen due to consistent losses by the organization which result in non-payments of interest, wages or in banking terms 'insolvency'. If such risk happens then recovery of the principal amount invested would be difficult. However, this kind of risk is very less likely to happen in India where banks have strong fundamentals.

2) Market Risk
This risk can happen in government bonds. Risk occurs due to demand and supply gap. Government bonds are traded in the market and their values would largely depend on investor sentiments. Only thing that is secured in the bonds are regular payment of interest. Principle amount invested in the bonds would be subjected to the market price which is driven by the buyer and sellers of the bonds.

3) Inflation Risk
Risk-free instruments have fixed rate of returns and have a long-term period of investing. During this tenure of investing the returns are always subjected to risk which is due to the inflation in the economy. Higher inflation rate would impact the real rate of returns in the investment (Real Rate = Returns – Inflation) which is anyways not very high under normal circumstances. For example : A fixed deposit having a returns of 9% per annum would have a real rate of return of just 1%, if the inflation is at 8% per annum. In case of inflationary market this real rate may go below zero which indicates negative growth of investments.

4) Liquidity Risk
Fixed income securities may give pre-defined returns but due to long-term nature of the investment (PPF, Government Bonds) it becomes difficult for the investor to withdraw the investment before the maturity period. This causes liquidity risk to an investor, as withdrawal costs him to lose some of his principal amount. This mostly happens in government bonds, where the bonds are purchased for long-term and are not available for redemption before it matures.

5) Interest Rate Risk
Interest rate is an ideal indicator of the inflationary trends and economic growth in the country. This interest rate indirectly affects the fixed income investments as it changes as per the inflation rates. If there is an increase in inflation then interest rate would also increase which will reduce the net yield from these fixed income securities and vice versa.

Conclusion
For investors with low risk appetite, it would be a logical choice to go for fixed returns investment options. However, care should be taken to keep the above risk factors in mind before choosing the investment option. Also, it would be prudent to keep in mind that there is nothing like "Risk-Free" when it comes to investments.


23.07 | 0 komentar | Read More

Modi's Germany visit to open new avenues: Baba Kalyani

In an interview to CNBC-TV18, Baba Kalyani of Bharat Forge, discusses what Prime Minister Narendra Modi's Germany visit means to India Inc.

Prime Minister Narendra Modi is expected to attend a community meeting in Berlin hosted by the Indian ambassador. Earlier in the day Modi laid out the red carpet for German investors, promising a "predictable, stable and competitive" tax regime as he pitched his 'Make in India' agenda. In an interview to CNBC-TV18, Baba Kalyani of Bharat Forge , discusses what the development means for India Inc.

Below is the transcript of Baba Kalyani interview with CNBC-TV18's Sanjay Suri.

Q: At the Hannover Messe we have had the political speeches. What could be their fallout for industry we will hear from Baba Kalyani.

A: I think it has been a perfect venue to communicate India's new aspirations, specially the whole "Make in India" programme. I think Prime Minister Modi has communicated this extremely well at the Hannover Messe to the German industry, to the German government, to the German politicians and of course to the Indian industry that is present here.

Q: Any indication of the fallout? Of course it is early days but any indication that you are seeing?

A: From whatever private discussions that I have had with a number of my friends in the Germany industry, they are impressed, they are motivated. Nobody is going to jump in and open the floodgates and I don't think that is desirable. However, I think everybody is going to start looking at India in a new and a different way. Everybody is going to start looking at which areas they could invest in whether it is infrastructure, power. There was a lot of discussion on power and infrastructure. The Germans very rightly believe that unless you have high quality and 100 percent power you really can't develop business. Unless you have good quality of infrastructure you really can't make business productive.

Q: What about defence production, that should be an area that you should tell us more about?

A: Defence production was not on the discussion table from a business to business area right now. I think that is going to be discussed from what I hear in Berlin at a government to government level and I think some policy decisions on this might come out after tomorrow after which I think Indian business will engage with the German counterparts who are engaged in defence.

Q: We have had the Rafale deal which we are told is an of the shelf sale, whatever that may mean, but will there be a fallout benefit for Indian industry from it?

A: The most positive part of that is somebody has started making decisions and I think that is what in India we were lacking, decisions were not being made. I think the Prime Minister has made the right decision. I think Indian Air Force needs fighter jets. Their inventory of aircrafts has depleted quite a lot. So, it is a good thing. Now is this going to be the end game in itself? No. This is the beginning of creating a large aeronautics industry in India and I think as some weeks and months go by we will hear the contours of what this will bring to industry.

Bharat Forge stock price

On April 13, 2015, Bharat Forge closed at Rs 1309.45, down Rs 22.55, or 1.69 percent. The 52-week high of the share was Rs 1362.90 and the 52-week low was Rs 401.25.


The company's trailing 12-month (TTM) EPS was at Rs 27.26 per share as per the quarter ended December 2014. The stock's price-to-earnings (P/E) ratio was 48.04. The latest book value of the company is Rs 115.67 per share. At current value, the price-to-book value of the company is 11.32.


23.07 | 0 komentar | Read More

Rajan has to lower rates to drive investments: Chidambaram

Higher interest rates are the single biggest impediment to investments--- believes finance minister Arun Jaitley's predecessor P Chidambaram. He also cautioned the government against targeting growth rate of over 8 percent saying it could be inflationary.

Higher interest rates are the single biggest impediment to investments--- believes finance minister Arun Jaitley's predecessor P Chidambaram. In an exclusive interview with CNBC-TV18, the former finance minister added that the RBI is right in being cautious over rate cuts. He also cautioned the government against targeting growth rate of over 8 percent saying it could be inflationary.

Below is the transcript of P Chidambaram's interview

Q Is the RBI governor looking at easing rate cycle?

A I don't think Raghuram Rajan is on an easing cycle; he wishes to get on to that cycle but is waiting for more data. He is right, we need to see how the monsoon turns out, it is very critical; the monsoon that should break out in end May and early June is very critical. We need to see how the kharif crop turns out. But going forward he is obliged to ease the interest rates; interest rates have to move down because that is the single biggest factor that is inhibiting investment.

Q. Will the government achieve its growth traget this fiscal?

A. 7.5 percent is achievable. It could be a few basis points above 7.5 percent, closer to 8 percent; but I can't see how it can be more than 8 percent. In fact, I would caution them not to attempt anything more than eight because then that becomes a bit inflationary.


23.07 | 0 komentar | Read More

Tata Equity P/E Fund announces dividend

Tata Mutual Fund has announced dividend under Tata Equity P/E Fund - Plan A (Dividend Trigger Option A-5%) & Tata Equity P/E Fund - Direct Plan (Dividend Trigger Option A-5%). The record date for declaration of dividend is April 17, 2015.

The amount of dividend on the face value of Rs 10 per unit will be Rs.0.60 per unit under each plan.


23.07 | 0 komentar | Read More

Net Neutrality: Battle to 'save the Internet' heats up

Manu Kaushik

The case for net neutrality has slowly but firmly attained critical mass and entered the mainstream consciousness supported by politicians and celebrities like Ravi Shankar Prasad, Digvijay Singh, Shahrukh Khan and Farhan Akhtar tweeting their support for a free internet.

The debate caught public imagination especially after an AIB video explaining net neutrality went viral on the web to the extent that Facebook had to take it off after it's algos decided the video was spam. But the video was restored shortly, say reports. The video has already been viewed by over 1,141,503 just two days after being uploaded.  

Celebrities weighed in and the hashtag #SaveTheInternet and #NetNeutrality began trending on Twitter. The hastag was viewed by more than 19.5 million unique users worldwide, half of which were original posts and the other half retweets. The hashtag "SaveTheInternet" reached 19,509,175 (the number of unique users that saw the tweet related to the hashtag).

Concerns regarding a potentially biased Internet came to surface after e-tailer Flipkart signed a deal with Airtel to be featured on its marketing plan -- Airtel Zero. Airtel says through this platform, it will allow consumers to access applications "free of cost."

Why then anybody would need to fight off a plan (Airtel Zero) that aims to make web cheaper or in this case "free of cost"? For the simple reason it discriminates between the apps and services it has signed a deal with and leave out others, thereby giving itself the power to dictate the flow of internet traffic.

In the deal, Flipkart has essentially agreed to buy data from Airtel on behalf of its potential customers in order to provide its app for free. This means that users get to access the Flipkart app for free on Airtel zero platform while they still will be incurred data charges for accessing for example peer websites such as shopclues.com or a start-up, which doesn't have the financial heft to strike such deals with telecom companies.

Telecom companies will be able to regulate what users access online, the way they access it and in what quantum, if this were to become a norm. The news website medianama.com was among the few that spotted the potential harm this might lead to and built a campaign around it.

Websites like Savetheinternet.in and netneutrality.in (created by reddit user: ishan001) are at the frontline of the battle along with the activist community on Reddit India. The topic "Fight for Net Neutrality: The way forward" is ranked highest on Reddit India homepage.

In the discussion threads, online activists discussed ways to increase the reach of the campaign by means of  memes and infographics . One came up with a plan: users should down-rate Airtel and Flipkart apps on Google Play and Apple App store.

The telecom regulator TRAI (Telecom Regulatory Authority of India) has come up with a consultation paper inviting comments from general public on whether telecom companies be allowed to charge users separately for accessing services such as Facebook, Viber, WhatsApp among other social media and messaging apps (called 'OTT' or Over the Top Services in technical jargon).

Apparently, telecom companies such as Airtel are perturbed at heavy profits these OTTs are making, riding on their airwaves and infrastructure, which they say involve heavy capital infrastructure and maintenance cost. They also allege losing call and messaging revenue to OTTs such as WhatApp and Viber.

The above two issues are collectively pose a grave threat to the concept of Net neutrality, say activists. The moderators of the above discussion thread and Medianama.com have collated answers and made TRAI's questionnaire of 20 questions (spread over 118 pages) easier to understand.

They have also urged visitors to mail their responses to TRAI keeping netneutralityindia02@gmail.com in the bcc (option is given to the user to edit the collated answers). Over 1 Lakh emails have been sent to TRAI via this method.

Currently, there is no law to enforce net neutrality but one Redditer--Karan Shah, has taken it upon himself to fill the gap. He has come up with " Guidelines on the Net Neutrality and Internet Traffic Management Act, 2015 ."

"There are literally no guidelines on this issue. The act which should ideally cover these things dates to 1885, a time we didn't even have internet! Therefore, the idea is that there should be some guidelines. TRAI has come up with a paper on this very issue, but the paper is largely biased towards the telecom players and thus the campaign was launched so that TRAI could be told that Net Neutrality matters. In line with what all major developed countries have ruled: the ideal internet should be neutral, like how we buy electricity: You would wonder how consumers would react if the electricity discom started selling fan pack, tube light pack, CFL pack, etc? Right now, just this is happening, in the virtual world," said Shah.


23.07 | 0 komentar | Read More

Govt notifies new law on judges' appointment

Government today brought into force a controversial law to appoint members to the higher judiciary, two days before a Constitution Bench of the Supreme Court hears a clutch of petitions challenging the National Judicial Appointments Commission Act.

Government today brought into force a controversial law to appoint members to the higher judiciary, two days before a Constitution Bench of the Supreme Court hears a clutch of petitions challenging the National Judicial Appointments Commission Act.

The notification bringing into effect from today the National Judicial Appointments Commission (NJAC) Act along with a Constitutional Amendment Act (99th Amendment Act) to give constitutional status to the new body was issued by Department of Justice in the Law Ministry.

A bunch of petitions moved by the Supreme Court Advocates on Record Association ( SCAORA), Bar Association of India and some individual lawyers challenging NJAC and the Constitition amendment will come up for hearing before the Constitution Bench on Wednesday.

Functionaries in the Law Ministry said with the notification, technically the collegium system has come to an end. But, at the same time, they said the new body may take some time to come into into being.

Prime Minister Narendra Modi will now have to call Chief Justice of India H L Dattu and Congress' Mallikarjun Kharge, the leader of single largest opposition party in Lok Sabha, to nominate two eminent persons to the NJAC.

The NJAC will have to ratify the rules governing its functioning in the first meetings before they are notified. The draft rules are ready with the government.

Under the collegium system, which came into existence in 1993 after a Supreme Court judgement, five top judges of the apex court recommend transfer and elevation of judges to Supreme Court and 24 High Courts.

The government can return the recommendation to the collegium under this system. But it has to accept the recommendation if it is reiterated by the collegium.

The collegium system had come under fire for lacking transparency by politicians and some eminent jurists, who contended that judges appointing judges without any say of the Executive has led to complaints of nepotisim and favouritism.

But successive CJIs have defended the system saying it has stood the test of time and was working without any hitches.


23.07 | 0 komentar | Read More

Vatsa Education standalone Jan '15 sales at Rs 0.00 crore

Written By Unknown on Senin, 06 April 2015 | 23.07

Jan '15 Oct '14 Oct '13 Net Sales/Income from operations 0.00 0.00 0.00 Other Operating Income -- -- -- Total Income From Operations 0.00 0.00 0.00 EXPENDITURE Consumption of Raw Materials -- -- -- Purchase of Traded Goods 0.00 0.00 0.00 Increase/Decrease in Stocks -- -- -- Power & Fuel -- -- -- Employees Cost 0.00 0.00 0.00 Depreciation -- -- -- Excise Duty -- -- -- Admin. And Selling Expenses -- -- -- R & D Expenses -- -- -- Provisions And Contingencies -- -- -- Exp. Capitalised -- -- -- Other Expenses 0.00 0.00 0.00 P/L Before Other Inc. , Int., Excpt. Items & Tax 0.00 0.00 0.00 Other Income -- -- -- P/L Before Int., Excpt. Items & Tax 0.00 0.00 0.00 Interest -- -- -- P/L Before Exceptional Items & Tax 0.00 0.00 0.00 Exceptional Items -- -- -- P/L Before Tax 0.00 0.00 0.00 Tax -- -- -- P/L After Tax from Ordinary Activities 0.00 0.00 0.00 Prior Year Adjustments -- -- -- Extra Ordinary Items -- -- -- Net Profit/(Loss) For the Period 0.00 0.00 0.00 Equity Share Capital 10.38 10.38 10.38 Reserves Excluding Revaluation Reserves -- -- -- Equity Dividend Rate (%) -- -- -- EPS Before Extra Ordinary Basic EPS -- -- -- Diluted EPS -- -- -- EPS After Extra Ordinary Basic EPS -- -- -- Diluted EPS -- -- -- Public Share Holding No Of Shares (Crores) -- -- -- Share Holding (%) -- -- -- Promoters and Promoter Group Shareholding a) Pledged/Encumbered - Number of shares (Crores) -- -- -- - Per. of shares (as a % of the total sh. of prom. and promoter group) -- -- -- - Per. of shares (as a % of the total Share Cap. of the company) -- -- -- b) Non-encumbered - Number of shares (Crores) -- -- -- - Per. of shares (as a % of the total sh. of prom. and promoter group) -- -- -- - Per. of shares (as a % of the total Share Cap. of the company) -- -- -- Source : Dion Global Solutions Limited
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Essar Group of companies was controlling Loop: CBI to court

Advancing final arguments in the case in which promoters of Essar Group and Loop Telecom are facing trial along with others, Special public prosecutor Anand Grover referred to the documents and statements of prosecution witnesses to buttress the agency's claim.

CBI today told a special court that documents recovered during the investigation and statements of various prosecution witnesses examined during trial in a 2G spectrum scam case, showed that Essar Group of companies was controlling Loop Telecom.

Advancing final arguments in the case in which promoters of Essar Group and Loop Telecom are facing trial along with others, Special public prosecutor Anand Grover referred to the documents and statements of prosecution witnesses to buttress the agency's claim. Grover told Special CBI Judge OP Saini that the materials collected by the agency during its probe corroborated that the Essar Group of companies had provided the funds for the entire transactions relating to the case.

"Essar Group of companies was fully controlling Loop," Grover told the court and gave details of the money flow which allegedly took place in the entire case. He also read out statements given by some of the witnesses during their testimonies before the court during the trial. CBI arguments today remained inconclusive and would continue tomorrow.

The CBI had earlier told the court that accused firm Loop Telecom Ltd (LTL) was "used" by Essar Group of companies to acquire 2G licences by "circumventing" the procedures. Essar Group promoters Ravi Ruia and Anshuman Ruia, Loop Telecom promoters, Kiran Khaitan, her husband I P Khaitan and Essar Group Director (Strategy and Planning) Vikash Saraf are facing trial in the case, along with three telecom firms - LTL, Loop Mobile India Ltd and Essar Tele Holding Ltd (ETHL). The five individual accused, who are out on bail, have all denied the charges levelled by CBI.


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Shareholder Activism: Is India Inc. Prepared?

Published on Mon, Apr 06,2015 | 19:21, Updated at Mon, Apr 06 at 19:21Source : Moneycontrol.com 

By: Amrit Singh Deo, Sr Director - Strategic Communications Practice, FTI Consulting

Till recently, only Indian companies wanting to raise capital outside the country took a hard look at their corporate governance practices in expectation of heavy external scrutiny. Increasing international institutional investments in India's high growth companies created a similar demand for greater transparency and disclosure standards among India-listed companies. If early indications are anything to go by, this trend is seeing further strengthening - with US-style shareholder activism gaining favor with international institutional investors in emerging markets across Asia, including India.

There are three inter-connected developments or factors that indicate increasing instances of shareholder activism and hopefully, a subsequent rising of the bar for corporate governance and disclosure standards in India:

The first key factor is INSTITUTIONAL MONEY BACKING ACTIVISM. FTI Consulting polled 100 international institutional investors, who collectively manage US$1.7 trillion of investments across the Americas, Europe and Asia, to gauge their view about shareholder activism. Unsurprisingly, an over-whelming majority favoured US-style activism, with over 80% saying shareholder activism adds value to companies targeted by them – as they act as checks to corporate actions and are seen as catalysts for change. Research of previous years too demonstrates a rising trend of institutional investors' consistent backing to shareholder activism in fast-growth economies with relatively weak capital market controls, as compared to the traditional developed markets where they have focused in the past.

The second factor is FRESH REGULATIONS SUPPORTING ACTIVISM. A favourable investor sentiment towards shareholder activism is matched by a catch-up of the regulatory eco-system. In India, the New Companies Act paves the way for class action suits in the future. Capital market regulator SEBI's (Securities Exchange Board of India) mandate to make e-voting facility compulsory for listed entities and its directive to mutual funds (domestic institutional investors) to disclose voting decisions along with supporting rationale have caused a fundamental shift in capital market agent behavior. Amendments to Clauses 36 and 49 of the listing agreement, by SEBI, have laid down specific standards for timely, quality disclosure; attempted to reform board composition by restoring the 'independence' of the independent director, made maintenance of high disclosure standards a board-level responsibility, mandated whistle-blower protection and clearly identified related-parties so that conflicts of interests are clearly resolved. Insider Trading regulations have been further strengthened to ensure that material, price-sensitive information are uniformly available to all shareholders and prevent market abuse. Changes in Clause 49 in particular, clearly require corporate boards to develop communications capacity to explain corporate actions, better articulate business strategy, defend their positions and proactively engage with multiple stakeholders. Deviations against clearly mandated behavior will trigger activist responses, from minority shareholders.

The third factor is SHAREHOLDER VOTING AGAINST MANAGEMENT RESOLUTIONS. According to India-specific data with www.nseinfobase.com which tracks instances of institutional shareholders in India banding to vote against management resolutions, there were 32 such instances in 2013, when at least 50% of institutional investors banded together to vote against board-sponsored resolutions. In 2014, within one year, this figure had risen to a staggering 448 instances - attributable largely to e-voting being made mandatory. This is a telling statistic. Shareholder activism is clearly present and in potent form here.

It may be argued that the legal and business environment in India is not yet conducive for activist – led campaigns as we have seen in the US, but the three factors mentioned above indicate that one must expect increasing activist action by minority shareholder groups on Corporate India. A landmark case - hedge fund TCI's (The Children's Investment Fund) campaign against Coal India – is usually held up as an example by skeptics, pointing to the peculiarities of the Indian environment as a natural 'safeguard' against activist campaigns . In this specific case, the promoter of Coal India, i.e., the Government of India, was able to stonewall efforts to review coal pricing strategies, even though they ran counter to minority shareholder interests. TCI did finally withdraw the threat of litigation against the company and its directors but the episode brought the issue of shareholder conflict to the fore. I believe it encouraged domestic institutional investors to act in concert, ably supported by local proxy advisory firms, to target relatively smaller game – as it happened when they voted against Maruti Suzuki's plan to buy cars built at a plant in Gujarat that was owned by parent company Suzuki; or when they voted against director-remuneration resolutions in Ambuja Cements, GAIL and Seamec, to name a few such instances.
    
In India, all three factors mentioned earlier – Institutional Money Backing Activism, Fresh Regulations supporting Activism and Increasing Instances of Institutional Shareholders Voting against Management Resolutions – raise the spectre of shareholder activism and associated litigation risk for Indian corporations. A shareholder activism campaign is likely to trigger weakened share price, valuations and corporate reputations/goodwill of the company – and is a significant source of enterprise risk. Unless boards and corporate teams recognize the interplay of these three factors and make adequate preparations, they will be continuously pushed to the back foot, 'playing defense' to activist actions. Voluntary, continuous, integrated disclosure – like fresh air – is the recommended alternative but the majority of Corporate India is yet to publicly acknowledge its link with corporate health and longevity.

Even for an optimist like me, the tell-tale signs are hard to ignore. India's first Class Action Suit may well be under preparation and being filed as you are reading this.

VOLUNTARY DISCLOSURE: The author does not advise nor is it engaged in any sort of business prospecting with Indian corporations mentioned in this report.

Attached here is FTI's Report: 2015 Shareholder Activist Landscape - An Institutional Investor Perspective

Disclaimer: The information/opinions expressed in this report/newsletter are those of the author. This website has not verified the accuracy of the claims made in the report/newsletter, nor does it agree or disagree with, or endorse any information/opinions contained therein;


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Have patience, govt 'running' for reforms: Naidu to Ind

Asking Indian industry to show "patience" over reforms and development, Union Minister M Venkaiah Naidu today said the government is "running", not walking, under Prime Minister Narendra Modi.

The comments assume significance as they follow criticism by eminent banker Deepak Parekh that impatience has begun creeping in among businessmen as nothing has changed on ground in the first nine months of the Modi-led government. "Today when I am trying to push certain reforms, I have to go carefully.

Take the people along with me and others also...and then only I can move forward. This is the system, this is the constitution," said the Parliamentary and Urban Development Minister, while addressing the members in industry body CII here. "So please understand.

Have some patience, this government is only nine months old," he added. "In nine months, normally, one starts walking but this government is running. Prime Minister Modi is practically running.

He wants actions, reforms and development," he said. Some people were happy while some were critical of the government, Naidu said indicating to Parekh's recent remarks. "One of the leading bankers also recently said that the pace is slow.

Sir, try to understand the system. Without that you can not move, (otherwise) you will be called a dictator and you can not be a dictator. You are not in emergency (rule) and we do not want to have an emergency.

We want urgency, not emergency," he stressed. Naidu, who is also Parliamentary Affairs Minister, said the government wants to do things at a faster pace and is moving in that direction taking along people, parliament, political parties and media with it as it is a democracy. "I have to go to Lok Sabha, then to Rajya Sabha, otherwise it (reform) will go to parlok sabha", he said in a lighter vein.

He said the NDA government has inherited an economy of several deficits including fiscal, trade, CAD, governance as well as trust deficit. "Now the trust is coming back. The leadership is coming back, the economy is back on rails.

But I know some of you (industry) are impatient. Things are not happening? You should have moved faster? But you should understand that we are a democracy," he said. 


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IND-AS: Income Computation Disclosure Standards

Published on Mon, Apr 06,2015 | 19:21, Updated at Mon, Apr 06 at 19:21Source : Moneycontrol.com 

By: Dolphy D'Souza, Partner,  India member firm of EY Global

Background
The Indian Accounting Standards (Ind AS), the Indian version of International Financial Reporting Standards, will have significant impact on financial statements for many entities.  Ind AS's are meant to primarily serve the needs of investors and hence are not suitable for the purposes of tax computation.  A clear need was felt for tax accounting standards that would guide the computation of taxable income.

The Central Government (CG) constituted a Committee in December 2010, to draft Income Computation and Disclosure Standards (ICDS).  Section 145 of the Indian Income tax Act bestows the power to the CG to notify ICDS to be followed by specified class of taxpayers or in respect of specified class of income.

In August 2012, the Committee provided drafts of 14 standards which were released for public comments by the CG. After revisions,  the CG has now notified 10 ICDS effective from the current tax year itself (viz. tax year 2015-16) for compliance by all taxpayers following mercantile system of accounting for the purposes of computation of income chargeable to income tax under the head "Profits and gains of business or profession" or "Income from other sources".

Earlier, the CG had notified two standards in 1996 viz., (a.) Accounting Standard I, relating to disclosure of accounting policies. (b.) Accounting Standard II, relating to disclosure of prior period and extraordinary items and changes in accounting policies. They now stand superseded. These standards were largely comparable to the current AS corresponding to AS 1 & AS 5.  

ICDS are meant for the normal tax computation.  Thus, as things stand now, ICDS has no impact on minimum alternate tax (MAT) for corporate taxpayers which will continue to be based on "book profit" determined under current AS or Ind AS, as the case may be.

ICDS shall apply to all taxpayers whether corporate or otherwise.  Further, there is no income or turnover criterion for applicability of ICDS. An entity need not maintain books of accounts to compute income under ICDS.  However, if the differences between ICDS and Ind AS/current AS as the case may be are several, an entity may need to evolve a more sophisticated system of tracking them as against doing it manually on an excel spread sheet.  It is possible that the current tax audit requirements will be enhanced to require auditors to report on the correctness of tax computation under ICDS.  Noncompliance of ICDS gives power to the Tax Authority to assess income on "best judgement" basis and also levy penalty on additions to returned income.

List of ICDS

Following is the list of 10 ICDS notified w.e.f. 1 April 2015:

1.    ICDS I relating to accounting policies
2.    ICDS II relating to valuation of inventories
3.    ICDS III relating to construction contracts
4.    ICDS IV relating to revenue recognition
5.    ICDS V relating to tangible fixed assets
6.    ICDS VI relating to the effects of changes in foreign exchange rates
7.    ICDS VII relating to government grants
8.    ICDS VIII relating to securities
9.    ICDS IX relating to borrowing costs
10.    ICDS X relating to provisions, contingent liabilities and contingent assets

Key differences between ICDS and current AS

A few key differences between ICDS and current AS are given below:

•    ICDS I prohibits recognition of expected losses or mark-to-market losses unless permitted by any other ICDS.
•    During the early stages of a contract, where the outcome of the construction contract cannot be estimated reliably contract revenue is recognised only to the extent of costs incurred. This requirement is contained both in AS 7 and ICDS III.  However, unlike AS 7, ICDS III states that the early stage of a contract shall not extend beyond 25 % of the stage of completion.
•    AS 7 requires a provision to be made for the expected losses on onerous construction contract immediately on signing the contract.  Under ICDS III, losses incurred on a contract shall be allowed only in proportion to the stage of completion. Future or anticipated losses shall not be allowed, unless such losses are actually incurred.
•    Under AS 9 revenue from service transactions is recognized by following "percentage completion method" or "completed contract method". Under ICDS IV only percentage of completion method is permitted.
•    Under AS 11, all mark-to-market gains or losses on forward exchange or similar contracts entered into for trading or speculation contracts shall be recognized in P&L.  In contrast, ICDS VI requires gains or losses to be recognized in income computation only on settlement.
•    Under AS 11, exchange differences on a non-integral foreign operation are not recognized in the P&L, but accumulated in a foreign currency translation reserve.  Such a foreign currency translation reserve is recycled to the P&L when the non-integral operation is disposed.   Under ICDS VI, exchange differences on non-integral foreign operations shall also be included in the computation of income.  
•    Under AS 12, government grants in the nature of promoter's contribution are equated to capital and hence are included in capital reserves in the balance sheet.  Under ICDS VII government grants should either be treated as revenue receipt or should be reduced from the cost of fixed assets based on the purpose for which such grant or subsidy is given.
•    Under AS 12 recognition of government grants shall be postponed even beyond the actual date of receipt when it is probable that conditions attached to the grant may not be fulfilled and the grant may have to be refunded to the government.  Under ICDS VII, recognition of Government grants shall not be postponed beyond the date of actual receipt.
•    Under AS 16 in the case of borrowings in foreign currency, borrowing costs include exchange differences to the extent they are treated as an adjustment to the interest cost.  Under ICDS IX borrowing cost will not include exchange differences arising from foreign currency borrowings.
•    AS 16 requires the fulfillment of the criterion "substantial period of time" for treating an asset as qualifying asset for the purposes of capitalization of borrowing costs.  ICDS IX retains substantial period condition (i.e. 12 months) only for qualifying assets in the nature of inventory but not for fixed assets and intangible assets. Therefore, ICDS requires capitalisation of borrowing costs for tangible and intangible assets even when they are completed in a short period.
•    Under ICDS IX, capitalisation of specific borrowing cost shall commence from date of borrowing.  Under AS 16, borrowing cost is capitalized from the date of borrowing provided the construction of the asset has started.
•    Unlike AS 16, income on temporary investments of borrowed funds cannot be reduced from borrowing costs eligible for capitalization in ICDS IX.
•    Unlike AS 16, requirement to suspend capitalization of borrowing costs during interruption of active construction of asset is removed in ICDS IX.
•    Under ICDS X a contingent asset is recognized when the realization of related income is "reasonably certain".  Under AS 29 the criterion is "virtual certainty".

Impact of ICDS
The notification of ICDS was imperative to ensure smooth implementation of Ind AS, and therefore should have maintained a tax neutral position. Unfortunately ICDS are not tax neutral vis-à-vis the current Indian GAAP and tax practices currently followed and may give rise to litigation. For example, based on AS 7 Construction Contracts, the current practice is to recognise any expected loss on a construction contract as expense immediately. In contrast, ICDS will require expected losses to be provided for using the percentage of completion method.

ICDS I lays out the "accrual concept" as a fundamental accounting assumption.  The prohibition on recognizing expected or mark-to-market losses appears to be inconsistent with the accrual concept.  Though mark-to-market losses are not allowed to be recognized, there is no express prohibition on recognizing mark-to-market gains.  The ICDS therefore appear to be one sided, determined to maximize tax collection, rather than routed in sound accounting principles.  Matters such as these are likely to create litigious situations despite the Supreme Court decision in the Woodword Governor case where the status of ICDS is upheld.

The preamble of the ICDS states that where there is conflict between the provisions of the Income-tax Act, 1961 and ICDS, the provisions of the Act shall prevail to that extent.  Consider that a company has claimed mark-to-market losses on derivatives as deductible expenditure under section 37(1) of the Income-tax Act.  Can the company argue that this is a deductible expenditure under the Income-tax Act (though the matter may be sub judice) and hence should prevail over ICDS which prohibits mark-to-market losses to be considered as deductible expenditure?  

Consider that a company receives a government subsidy for non-depreciable asset. Hitherto, it was accepted that it is a capital receipt not falling within the definition of 'income' and did not impact business income computation. Can the company argue that such receipt cannot be taxed in absence of amendment to definition of 'income' and hence should prevail over ICDS which requires such receipt to be recognized as income over the period of meeting related obligations? These are untested areas, and could be litigated.

All ICDS (except ICDS VIII relating to Securities) contain transitional provisions.  These transitional provisions are designed to avoid double jeopardy.  For example, if foreseeable loss on a contract is already recognized on a contract at 31 March 2015, those losses will not be allowed as a deduction again on a go forward basis using the percentage of completion method.  On the other hand, if only a portion of the loss was recognized, the remaining foreseeable loss can be recognized using the percentage of completion method.  The detail mechanism of how this will work is not clear from the ICDS.

The transitional provisions are not always absolutely clear.  In the case of non-integral foreign operations, e.g., non-integral foreign branches, ICDS requires recognition of gains and losses in the P&L (tax computation), rather than accumulating them in a foreign currency translation reserve.  It is not absolutely clear from the transitional provision whether the opening accumulated foreign currency translation reserve, which could be a gain or loss, will be ignored or recognised in the first transition year 2015-16.  Since the amounts involved will be huge, particularly for many banks, the interpretation of this transitional provision will have a huge impact for those who have not already considered the same in their tax computation in past years.

Some of the transitional provisions are also expected to have a material unanticipated effect.  For example, the ICDS requires contingent assets to be recognized based on reasonable certainty as compared to the existing norm of virtual certainty.  Consider a company has filed several claims, where there is reasonable certainty that it would be awarded compensation.  However, it has never recognized such claims as income, since it did not meet the virtual certainty test under AS 29.  Under the transitional provision it will recognize all such claims in the first transition year 2015-16.  If the amounts involved are material, the tax outflow will be material in the year 2015-16.  This could negatively impact companies that have these claims.  The interpretation of "reasonable certainty" and "virtual certainty" would also come under huge stress and debate.   This may well be another potential area of uncertainty and litigation.

Overall, the CG through CBDT will have to play a highly pro-active role to provide clarity and minimize the potential areas of litigation.


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REC stake sale on Wednesday; govt to get about Rs 1,600 cr

The government is likely to fix the floor price for the OFS at a discount to the current market price. The 5 per cent share sale would fetch about Rs 1,600 crore to the exchequer.

Government will sell 5 percent stake in  Rural Electrification Corporation on April 8 to mop up close to Rs 1,600 crore, marking the first disinvestment of the current fiscal. Taking the offer for sale (OFS) route, government will sell over 4.93 crore REC shares. "The offer shall take place during trading hours on a separate window of the stock exchanges and shall commence on April 8," REC said in a filing to the BSE.

Shares of REC closed at Rs 335.60, down 0.52 percent over previous close on the BSE. The government is likely to fix the floor price for the OFS at a discount to the current market price. The 5 percent share sale would fetch about Rs 1,600 crore to the exchequer.

As much as 20 percent of the offer size would be reserved for retail investors, who can bid for shares worth Rs 2 lakh. They would be offered shares at 5 percent discount to issue price. Besides, 25 percent of the offer would be alloted to mutual funds and insurance companies.

REC would be the first PSU to hit the market in the current fiscal. The government has budgeted to raise Rs 41,000 crore through minority stake sale in 2015-16. The disinvestment department has a pipeline of companies to sell minority stake to avoid bunching up of disinvestment towards the end of end of the fiscal.

"It is not very healthy to bunch stocks towards the end of fiscal because then you cannot watch the market and there is limited depth in market. So one may not get the full worth also. We will not bunching them together," Disinvestment Secretary Aradhana Johri had said earlier.

J M Financial, Morgan Stanley and IL&FS Broking Services are acting as merchant bankers to the issue. In 2014-15, government had raised about Rs 24,500 crore through disinvestment.


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Dena Bank, LIC sign MoU to provide life cover under PMJBY

Under the Memorandum of Understanding, LIC will give a life cover of Rs 2 lakh in case of death of the insured person at a nominal premium of Rs 330 per annum. Account holders in the age group of 18 to 50 years can avail of the product.

State-run lender  Dena Bank today signed agreement with LIC to provide insurance cover to its savings account holders under the Prime Minister's Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJBY) scheme.

Under the Memorandum of Understanding, LIC will give a life cover of Rs 2 lakh in case of death of the insured person at a nominal premium of Rs 330 per annum. Account holders in the age group of 18 to 50 years can avail of the product.

People who join the scheme before completing 50 years can continue to have the risk of life cover up to the age of 55 years subject to payment of premium. The scheme will come into effect from June 1, 2015. The bank customers can join the scheme between June 1, 2015 to May 31, 2016.

"It is a very important step towards meeting the government financial inclusion plan. This will increase the insurance penetration," Dena Bank Chairman and Managing Director Ashwani Kumar told reporters after signing the MoU. LIC Chairman SK Roy said, "This represents version two of financial inclusion of India.

This will help in expanding the life insurance coverage through banking channel." "We have already signed agreements with two banks for this product. We are in discussion with our other partner banks and will complete (the process) in 10 days," he said. Dena bank will have separate branches for claim settlement.

The bank currently has 1.2 crore savings accounts and is targeting to extend the life cover benefit to all the customers.

Dena Bank stock price

On April 06, 2015, Dena Bank closed at Rs 51.65, up Rs 0.30, or 0.58 percent. The 52-week high of the share was Rs 94.40 and the 52-week low was Rs 46.75.


The company's trailing 12-month (TTM) EPS was at Rs 7.38 per share as per the quarter ended December 2014. The stock's price-to-earnings (P/E) ratio was 7. The latest book value of the company is Rs 132.81 per share. At current value, the price-to-book value of the company is 0.39.


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PSU stake sale: Sebi seeks public comments on trading halts

Pressed by the government to take steps to ensure greater success of PSU divestments, Sebi today sought public comments on halting secondary market trading in such stocks during Offer For Sales and for holding such share sales on Saturdays.

Other suggestions, which Sebi said, have been received from "various stakeholders", include reducing the mandatory notice period for OFSes to one day, from two days currently, and to restrict trading in the concerned stocks within a price band on the day prior to the share sale.

The move follows apprehensions raised by the government in the past, during some divestments through OFS route, that the secondary market price could dip below the proposed OFS price and thus hamper the share sale process.

OFS is the easiest and fastest route for sale of shares in an already-listed company and the government has also used this route for sale of its minority stakes in case of 13 PSUs so far.

The government had, however, requested Sebi to further ease the norms for OFS by way of halting secondary market trading and other steps to boost its divestment programme, under which it aims to raise Rs 41,000 crore from sale of minority shares in the current fiscal.

The public comments have been sought till April 18 on a host of suggestions, which also include providing the retail investors an option to bid at cut-off price in all OFS.

The OFS mechanism presently provides that seller may give option to retail investors to place price bid or place bid at cut-off price.

"Recent experience with OFS has shown that some retail investors bid at high prices, on the assumption that they would get allotment at cut-off price. Therefore, it is suggested to make it mandatory for sellers to provide option
to retail investors to place price bid or place bid at cut off price for better retail participation," Sebi said in its discussion paper.

Sebi has presented both 'for' and 'against' views on all the suggestions, while inviting public comments.

On suggestion for trading halt, Sebi said that "opponents argue that halts are unnecessary barriers to price discovery and do not actually reduce volatility in trading following the lifting of the halt.

"For example, if fundamental information arrives at the time of the trading halt, the price adjustment process is delayed. This may in turn increase price uncertainty because no information is transmitted through trading when there is a halt.

"In addition, by preventing investors from trading during a halt, investors may not be able to liquidate their position, if so required by them for sale of shares using OFS through stock exchange mechanism."


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Corporate credit quality to take longer to improve: Crisil

Domestic ratings agency Crisil today said credit quality improvement will continue to be gradual in FY 2016 as well, but underlined that large companies are a cause of worry.

The large companies need to deleverage balance-sheets stretched by loans for an improvement in the overall NPA situation of banks, which is around 12 percent of the system now, it added. "We expect that the credit ratios will improve gradually in FY 2016," agency's chief analytical officer Pawan Agrawal told reporters on a conference call here.

He said the credit ratio, which is the ratio of upgrades to downgrades, for the 13,000 companies it rates, had a slow recovery in FY 2015, helped largely by the mid-sized enterprises with Rs 100-500 crore revenues. These 13,000 companies represent around 40 per cent of the bank credit to corporates. There were 816 upgrades in the final six months of the past fiscal compared to 466 downgrades, resulting in an overall credit ratio of 1.75 for the period.

However, the large corporates having revenues of over Rs 500 crore continue to show tepidness in their credit quality, Agarwal said. Going by the quantum of credit, companies having an exposure of Rs 2 trillion got downgraded in FY15 as against Rs 1.4 trillion of credit which got upgraded. But for large companies, the credit ratio was only 0.45 in H2 of FY15 versus 2.26 for mid-sized firms 1.55 for the small-sized firms.

"The heavy burden of debt will continue to constrain the ability of large firms to improve their credit profiles," he said in the outlook for FY16 and specifically pointed out that a chunk of this debt has been taken for stuck projects. Agrawal said factors like movement in commodity prices, domestic investment climate which depends on the movement on the reforms front and the domestic consumption will be the key factors which will have a bearing on the credit profiles of the companies. Other factors like the movement in the lending rates will also be a key monitorable, he said, stressing that banks need to pass on the RBI's rate cuts to borrowers.

On the high non-performing assets situation, Crisil said an improvement is possible only if the companies are able to deleverage their balance sheets stretched by high loans. In FY 2015, two-thirds of the rating upgrades were driven by business-related factors, while 28 per cent were driven by liquidity improvements. However, for the rating downgrades, 60 percent were due to liquidity problems.

From the sectoral basis, mid-sized companies from the textile, trading companies, agri and auto parts scetors showed improvement, while infrastructure and steel companies (which are among the highest borrowers) saw the most downgrades, Agrawal said.


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What does India Inc expect from tomorrow's credit policy?

Industry bigwigs such as Rahul Bajaj and Adit Godrej hope for a rate cut. Though Bajaj believes a rate cut tomorrow is highly unlikely. Godrej on the other hand is also hoping for some action on the CRR and SLR front.

All eyes are on the first Reserve Bank credit policy due tomorrow. Industry bigwigs such as Rahul Bajaj and Adi Godrej hope for a repo rate cut. Though Bajaj believes a rate cut tomorrow is highly unlikely. Godrej on the other hand is also hoping for some action on the CRR and SLR front.

Economists and bankers too are divided on their opinion.

Rahul Bajaj: I also am in favour of low rates of interest but I don't think that is likely tomorrow. I don't think that is likely, I would welcome it even by 25 basis points if he reduces and everybody will be jumping through the roof if he reduces by 50 basis points but that is highly unlikely. 25 also unlikely but he might adjust the CRR.

Adi Godrej: I hope there is a rate cut, 25 basis points would be appropriate because the inflation has come down quite a lot and it will help growth and I hope there is an statutory liquidity ratio (SLR) and cash reserve ratio (CRR) cut also.

Arundhati Bhattacharya, Chairman, State Bank of India : I think you will see some rate action going forward. Of course everybody is going to wait for the monetary policy I suppose because that does give some indicators about the thinking of the regulators as to how they see the trajectory of various economic indicators.

The slack season is here, we need to get credit growth to pickup. Given those realities I think some kind of rate action will follow.

Samiran Chakraborty, MD and head – South Asia Macro Research, Standard Chartered Bank: Timing of the rate cut call is becoming increasingly difficult with two consecutive inter-meeting rate cuts. We still expect another 25-50 basis points of rate cuts to happen if our overall inflation trajectory view on that remains correct. We are looking for 5.4 percent average inflation for fiscal year 2016 and about 150 basis points of real policy rate should give RBI scope for a little bit more rate cuts.

Sonal Verma, Chief Economist-India, Nomura: Our base case is for no more cut. I think the language used in the March surprise inter-meeting statement was that RBI has pre-empted the rate cut given weakness in the economy. So, our sense is that RBI has frontloaded the interest rate cuts in order to give more time to banks to respond going forward. I guess the focus in this policy should be much more on transmission rather than RBI action per se. So, unchanged at the April policy is our expectation.


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Why today's market bounceback may not last

Written By Unknown on Senin, 30 Maret 2015 | 23.07

Indian equities snapped an eight-day correction, the longest since 2001, to rise about 1.85 percent today, as traders covered some of their short positions. But according to analysts, this may not be time for investors to look at equities afresh.

Indian equities snapped an eight-day correction, the longest since 2001, to rise about 1.85 percent today, as traders covered some of their short positions.

But according to analysts, this may not be time for investors to look at equities afresh.

"Unless corporate earnings see a meaningful sign of revival, which won't happen for one or two quarters, we don't believe there will be a significant bounceback in equities," Angel Broking's Mayuresh Joshi told CNBC-TV18.

In fact, if the March quarter earnings, which will start soon, are worse than already-muted expectations, or if there renewed global macro worries such as from Greece, Joshi said the markets could again start drifting lower.

Analyst Ambareesh Baliga agreed with the assessment. "We don't think the recent correction has ended. This bounceback may not last beyond a few days," he said.

According to Baliga, once earnings start trickling in, along with the flood of divestments the government has planned for PSU companies, it would keep pressure on the markets.

"We think the Nifty may head closer to 8,000," he said. "If you've bought during the recent decline, this bounceback is the time to sell."

"There is no way to say where this bounceback will stop," technical analyst Sudarshan Sukhani said. "But at some point it will stall."

Sukhani advised short-term traders to not carry overnight positions.


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MCX sells Rs 2.25cr warrants in MCX-SX to ILFS

The warrants were sold at Rs 2.50 per piece. The sale is subject to "applicable provision with respect to ownership of stock exchanges under Securities Contracts (Regulations) (Stock Exchanges and Clearing Corporations) Regulations, 2012," the filing noted.

Leading commodity bourse MCX  on Monday said it has sold 90,17,227 warrants worth Rs 2.25 crore in MCX-SX to IL&FS Financial Services. MCX, which currently has 4.14 percent equity stake in MCX-SX, is selling the warrants to comply with regulations. In a regulatory filing, MCX said it has sold as many as 90,17,227 warrants, which are convertible to equal number of equity shares of MCX-SX, to IF&FS.

The warrants were sold at Rs 2.50 per piece. The sale is subject to "applicable provision with respect to ownership of stock exchanges under Securities Contracts (Regulations) (Stock Exchanges and Clearing Corporations) Regulations, 2012," the filing noted.

With the acquisition, the shareholding of IF&FS in the MCX Stock Exchange would increase to around five percent, sources said.

After sale of these warrants, MCX would be holding about 58 crore warrants worth Rs 116 crore in the stock exchange, they said. The commodity bourse has to offload bulk of the warrants by June-end, they added. 

MCX India stock price

On March 30, 2015, Multi Commodity Exchange of India closed at Rs 1135.45, up Rs 11.75, or 1.05 percent. The 52-week high of the share was Rs 1289.40 and the 52-week low was Rs 483.00.


The company's trailing 12-month (TTM) EPS was at Rs 23.43 per share as per the quarter ended December 2014. The stock's price-to-earnings (P/E) ratio was 48.46. The latest book value of the company is Rs 258.07 per share. At current value, the price-to-book value of the company is 4.40.


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Jet Airways to expand code-sharing partnership with Etihad

Private carrier Jet Airways on Monday announced that it would expand its code-sharing partnership with Etihad to offer new destinations in North America, Europe and Australia to its customers.

Currently, the Naresh Goyal-promoted airline offers code-share flights from Abu Dhabi to New York (JFK), Chicago (ORD) and Washington DC, with Etihad. Code-sharing allows an airline to book its passengers on its partner carriers and provide seamless transport to multiple destinations where it has no presence.

Following the expansion, Jet Airways would place its 9W code on Etihad Airways flights from Abu Dhabi to San Francisco (SFO), Dallas/Fort Worth (DFW) and Los Angeles in the United States. Etihad holds 24 per cent stake in Jet Airways. The expansion of code-share options also includes Etihad Airways' proposed flights to Edinburgh, Zurich and Perth, Jet Airways said.

"The expansion of code-sharing will further strengthen our global network and provide a significant number of new and important destinations, particularly in the United States," Jet Airways chief executive Cramer Ball said.

As part of the expansion, Jet Airways would also operate code-share flights with Etihad from the Gulf airline's hub Abu Dhabi to Jaipur and Kolkata. In return, Etihad Airways will place its EY code on Jet Airways' flights from Ahmedabad to Abu Dhabi, the release said.

Ahmedabad is one of the three places from where Jet Airways had yesterday launched daily flight services to Abu Dhabi as part of its enhanced summer schedule. The airline also said its passengers travelling to the United States can avail the benefit of having pre-cleared US Customs and Border Protection at Abu Dhabi Airport.

The process allows passengers to pass through all required checks including US customs, immigration and security before they board their flight to the US, enabling them to avoid queues on arrival, it said.

Another key benefit of US pre-clearance is that baggage security screening meets United States Transport Security Administration standards, allowing passengers who connect onto a domestic flight in the US to have their baggage checked through from Abu Dhabi to their final destination.


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ICICI, HDFC Bank cut bulk deposit rates by up to 0.25%

The rates have been revised downwards for deposits over Rs 1 crore by 0.25 percent by ICICI Bank effective today, sources said. Fixed deposit rate of maturity between 121-150 days has been revised downward to 8 percent from 8.25 percent earlier.

Leading private sector lenders ICICI Bank  and HDFC Bank  have cut rates by up to 0.25 percent on high value fixed deposit on select maturities, a move that could be a precursor to lower lending rates.

The rates have been revised downwards for deposits over Rs 1 crore by 0.25 percent by ICICI Bank effective today, sources said. Fixed deposit rate of maturity between 121-150 days has been revised downward to 8 percent from 8.25 percent earlier.

Term deposit of the country's largest private lender between 61-90 days for high value fixed deposit over Rs 5 crore and above has been lowered to 8 percent from 8.25 percent.

Similarly, for term deposit between 91-120 days would attract lower interest rate of 8 percent. The second largest private sector lender, HDFC Bank too lowered its on fixed deposits of over Rs 5 crore and above effective yesterday.

Earlier this month, Axis Bank  reduced fixed deposit rates by up to 0.25 percent across various maturities. Axis Bank was one of the first major lenders to slash its deposit offering after RBI's repo cut on March 4.

The third largest private sector lender has cut its deposit rate offerings by 0.25 percent across buckets in the 18 to 36 months window, Axis Bank official said.

Similarly, for deposits up to 18 months, the rates have been decreased by 0.15 percent to 8.50 percent. With easing liquidity conditions and the low credit offtake, Axis Bank was among the few which cut its base rate or the minimum rate of lending in October last year by 0.10 percent.

It can be noted that the RBI indicated a shift in its stance after getting a grip over inflation and delivered a surprising 0.25 percent cut in January, and followed it up with a similar move on March 4, indicating its comfort with the Budget announcements.

Following these moves, the repo rate at which the central bank lends to the system, currently stands at 7.75 percent. While banks claim the policy moves generally take time to get transmitted into actual lending rates, the RBI has been unhappy with the banks for not passing the benefits of the rate cuts to the borrowers.

The country's largest lender, State Bank of India , has indicated that it would be very difficult to have a cut in lending rates till the end of March, which is generally the busy season for credit offtake. 

ICICI Bank stock price

On March 30, 2015, ICICI Bank closed at Rs 318.35, up Rs 3.95, or 1.26 percent. The 52-week high of the share was Rs 393.30 and the 52-week low was Rs 238.40.


The company's trailing 12-month (TTM) EPS was at Rs 18.81 per share as per the quarter ended December 2014. The stock's price-to-earnings (P/E) ratio was 16.92. The latest book value of the company is Rs 126.27 per share. At current value, the price-to-book value of the company is 2.52.


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Oricon buys 70% of Oriental Containers for Rs 105 crore

Oricon Enterprises has a consolidated turnover of nearly Rs 1,000 crore and is engaged through its subsidiaries in the business of marine logistics, packaging, automobile distribution and petrochemicals.

Oricon Enterprises , a group company of Parijat Enterprises, on Monday said it has acquired 70 percent shares of Oriental Containers Ltd from its joint venture partners OC Holding Ltd, Mauritius, for Rs 105 crore.

"We have acquired 70 percent shares of Oriental Containers Ltd from its joint venture partners OC Holding Ltd Mauritius at a consideration of Rs 105 crore, thereby making it a 100 percent subsidiary," Oricon Enterprises CFO B M Gaggar said in a statement here.

Oricon Enterprises has a consolidated turnover of nearly Rs 1,000 crore and is engaged through its subsidiaries in the business of marine logistics, packaging, automobile distribution and petrochemicals.

Further, it holds nearly three acres of land parcel in Worli (Mumbai), which is slated for development in the near future.

Oriental Containers is the largest manufacturer of a wide range of closures, which includes crowns, plastic beverages and water closures, ROPP Caps, chamfered caps, aluminium collapsible tubes and other packaging products at its manufacturing facilities in Maharashtra and Goa.

Oriental Containers supplies its products to various industries like beverages and water, FMCG, breweries and distilleries.

Leading customers include Pepsi, United Spirits, United Breweries, Heineken, Diageo, Bisleri, Unilever and others. The company's products are exported to more than 40 countries covering Asia, Middle East, Far East and the African continent. 

Oricon Ent stock price

On March 30, 2015, Oricon Enterprises closed at Rs 51.70, up Rs 3.55, or 7.37 percent. The 52-week high of the share was Rs 71.40 and the 52-week low was Rs 17.60.


The company's trailing 12-month (TTM) EPS was at Rs 0.43 per share as per the quarter ended December 2014. The stock's price-to-earnings (P/E) ratio was 120.23. The latest book value of the company is Rs 30.52 per share. At current value, the price-to-book value of the company is 1.69.


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RBI issues Draft Directions on Need to obtain Its Prior Approval for Acquisition/Transfer of Control of NBFCs

The Reserve Bank of India today released on its website, draft directions for Non-Banking Financial Companies (NBFCs) (Approval of Acquisition or Transfer of Control) Directions, 2015 seeking views/comments from all interested parties and general public. Suggestions and comments on the draft directions may be sent by April 15, 2015 to the Chief General Manager, Reserve Bank of India, Department of Non-Banking Regulation, 2nd Floor, World Trade Centre, Cuffe Parade, Mumbai-400005 or can be emailed by clicking here.

The draft has been proposed based on representations received from NBFCs and other industry participants and once issued, these will replace 'Non-Banking Financial Companies (Approval of Acquisition or Transfer of Control) Directions, 2014' dated May 26, 2014 .

The final set of directions in the subject matter will be issued after receiving feedback, comments and suggestions on the draft directions.

Alpana Killawala
Principal Chief General Manager

Press Release : 2014-2015/2056


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