NEWS WRAP - SEPTEMBER 30, 2013

• SFIO probe calls Rs 1,700 crore Tata - Unitech deal in 2007 Dubious and Disguised.

• Bids for Highway project wroth Rs 17,000 cr. to be awarded by October, 2013.

• China launches a new Free Trade Zone in Shanghai to start wave of reform.

• Auditor Grant Thornton refuses opinion on NRE Coke OZ Arm Accounts of the year, citing doubts over Company's ability to survive.

Source: Economic Times

NEWS WRAP - SEPTEMBER 28, 2013

• India's two leading stock exchanges have questioned the Indiabulls group's decision to hold share-holder meets of all six group compaines within a 75 minute gap on monday.

• Government clears 15 foreign direct investment (FDI) propasals worth Rs. 2000 crore.

• Tamilnadu and Andhra Pradesh (Southeastern India) sits on Diamond bed.

• The fast food chain Mc Donald's announced that it would increase its offerings of fruits, vegetables and promote more nutritional options to children.

• Auto major Mahindra & Mahindra said it will hike the prices of its passenger cars and commercial vehicles by up to 20,000 from October,2013.

• BIS Certification date extended till January by Government.

Source: Economic Times

NEWS WRAP - SEPTEMBER 27, 2013

• Tata Teleservices, Russia's Sistema JSFC and Aircel, controlled by Malaysia's Maxis, are in exploratory talks for a three-way merger to create India's third-largest Telecom Company.

• National Green Tribunal (NGT) insists any establishment not adhering to Environment Regulations had to close.

• Rajasthan Government named Kokilaben Ambani, as a Vice President of the Nathdwara Temple Board.

• Ebay to buy Braintree for about $800 million in cash to add to its PayPal Business.

• German furniture fittings brand, Hettich, to invest Rs. 500 crore in India.

• The Beer Cafe to enter Mumbai by November 2013 with 10 outlets.

• Lakme Lever plans to add 300 stores in the next three years.

• Nokia launches 41 Megapixel Camera phone Lumia 1020 which will hit shelves on October 11, 2013 and will be available in the range of Rs. 47,000-Rs. 48,000.

• Oberoi Realty's Share sale offer gets good response.

• SEBI settles SpiceJet case with WL Ross for Rs. 1.10 crore.

• Barclays to cut jobs, shut wealth Management Services in 130 countries.

• Darjeeling Tea Prices fall 50% on quality concerns post-rains.

• Railways to start power Trading in the Open Market within next two months.

• Last date for e-filing of Tax Audit Report extended to October 31, from September 30.

Source: Economic Times

CCI ORDERS INVESTIGATION AGAINST ACI FOR ALLEGED VIOLATION OF COMPETITION ACT

COMPETITION COMMISSION OF INDIA (CCI) has ordered Investigation on a complaint filed by M/s Financial Software and System Private Limited (FSS, Informant) against M/s ACI Worldwide Solutions Private Limited, India, M/s ACI Worldwide Incorporated, USA and M/s ACI Worldwide (Asia) Pte. Limited, Singapore (ACI, Respondents) on the Allegations of contravention of Provisions of section 3 and 4(1) of the Competition Act, 2002.

BRIEF FACTS OF THE CASE

1. The Informant is a Private Limited Company incorporated in India. It is stated to act as a system integrator to bank and other Financial Institution. ACI is stated to be engaged in the business of developing software (BASE24) for electronic payment solutions which enables card-based payment transactions for banks.
2. FSS and ACI are stated to have a long standing relationship, starting from acting as a re-seller for ACI for BASE24 India in 1991, then FSS becoming a distributor and service provider for BASE24 in India in 1998 through various agreements.
3. The FSS has alleged that ACI took the position that it would not allow FSS to continue to provide system integration in respect of the BASE24 software.

ALLEGATIONS

The Informant has alleged that ACI has contravened provisions of section 3 and 4(1) of the Competition Act, 2002 abusing their dominance by -

• Not allowing ACI banks to choose a service provider of their choice.
• Imposing unfair condition in the purchase or sale of goods or services through exclusive supply arrangements with ACI Banks.
• Restricting  the ACI Banks, not to avail the integration services of FSS.
• Limiting technical or scientific development in the market.

CONCLUSION

After initial examination CCI has observed that prima facie the conduct of the respondents amount to 'tie in arrangement' and 'refusal to deal'. Such Agreement are also likely to have appreciable adverse effect on competition looking at the market share and market size of the enterprise in question.

CCI will complete the Investigation within 60 days.

NEWS WRAP - 26 SEPTEMBER, 2013

• DIPP proposes 100% FDI in Railway projects.

• New bank licences: RBI could ease initial equity capital requirement of rs 500 crore.

• HUL spreads its wing to retain edge with projects Telecalling, Columbus.

• Nokia weighs Alcatel-Lucent tie-up after Microsoft deal.

• Sun Pharma hits all-time high as rival announces shortage of cancer drug.

• JP MORGAN in talks to settle Government probes for $11 billion.

• LARSEN & TOUBRO PLANS $500 million-$ 1 billion toll road IPO in Singapore. 

Source: Economic Times

NEWS WRAP - SEPTEMBER 25, 2013

• Appointment of a reputed consultant, acceptable to both Goverment and RIL, to put rest to one of the biggest controversies in Energy Sector.

• Parle Agro Launched 'Cafe Cuba', India's First Coffee Flavoured Carbonated Beverage.

• Tata SIA Airlines to have a 6-member Board, Singapore Airlines Proposes to hold a 49% Stake in the Venture.

• High Court restrains John Abraham's Production Company from naming its movie 'Hamara Bajaj'.

• Impresario to open 16 Restaurants under 'Smoke House Deli' and 4 Restaurants under 'Mocha' Brand in India.

• Muthoot Finance NCD Issue over subscribed by 1.084 times.

• JP Morgan's legal hurdles expected to multiply.

Source: Economics Times

BUSINESS LEXICON

• Tapering - It is the process of reducing the pace of purchasing assets with money created out of thin air.

• Squeeze - To be strict about the monies and limit how much is available to a Company or an Organisation. 

• Boil the Ocean - To undertake an impossible task or project or to make a task or project unnecessarily difficult. Boiling the Ocean generally means to go overboard.

• Dead Cat Bounce - A temporary recovery from a prolonged decline or bear market, followed by the continuation of the downtrend. A Dead Cat Bounce is a small, short-lived recovery in the Price of a Security, such as a Stock.

• Bleeding Edge - It is a category of technologies incorporating those so new that they could have a high risk of being unreliable and lead adopters to incur greater expenses in order to make use of them.

• Open the Kimono - To reveal what is being planned or to share important information freely.  Similar to "open the books" or an "open door policy", Opening the Kimono means Revealing the inner workings of a Project or Company to an outside Party. 

• Big Uglies - They are the stocks that provide solid, long term earnings, growth and Dividends like old Industrial Companies in gritty Industries (such as mining, steel and oil) and as a result, they tend to be unpopular stocks with Investors looking for bargain priced stocks.

NEWS WRAP - SEPTEMBER 23, 2013

• Blackberry's bet on devices running on BB10 fails to deliver as sales fall by 50% in India.

• Neilson to factor Mobile Viewership into TV Ratings.

• JP MORGAN CHASE, JP MORGAN STANLEY bag Leading roles in Twitter's Credit Line ahead of IPO.

• Apollo Hospitals may List on Singapore Stock Exchange to raise rs. 2500 Crore.

Source: Economic Times

NEWS WRAP - SEPTEMBER 21, 2013

• Air Asia Partners Arun Bhatia miffed about the Tata's not having informed him before announcing the second Venture with SIA.

• EMIS for Home, Car Loans set to go up as Bank gear up to rise Lending and Deposit Rate.

• The upward revision in Repo Rate by the Reserve Bank of India (RBI) is likely to increase pressure on Realty Firms to offer discount in the upcoming Festive Season.

• L'Oreal India has made its first Acquisition in the domestic beauty market by talking over the Assets of Mumbai-based Chery's Cosmeceuticals.

• 12 Cos Designated as Biz partners for UN Summit will play an important role at the UN Sponsored Climate change negotiations to be held in November in the Poland.

• Budget Carrier Spice Jet, in talks with Air Arabia for an "INTERLINE ARRANGEMENT'.

Source: Economic Times

NEWS WRAP - SEPTEMBER 20, 2013

• Tata Group hands again with Singapore Airlines (SIA) to start new full services Airlines in India, eighteen years after their attempt.

• Tata Group is in talks with the AAI and planning to set up a maintenance, repair and overhaul (MRO) unit for planes in India.

• Bharti Walmart agents threatened to take legal action against the retailer for allegedly not settling their dues.

• India's natural Imports may push up in the coming months due to limited local availability, lower global price and appreciation.

• The Bank of London & The Middle East PLC. the largest Islamic Bank in Europe, to list on the NASDAQ Dubai Stock Exchange in October.

• Blackberry's chat service BBM coming to Android, iPhone by this Week.

Source: Economic Times

NEWS WRAP - SEPTEMBER 19, 2013

• New Tax rules introduced to reduce transfer Pricing rows.

• Bharti Airtel shares rally as Singapore Telecommunications Ltd. (SingTel) pledges support.

• Wagh Bakri is stepping up expansion of its Tea Lounges business with plans to set up 50 outlets in three years in metros.

• Telecom Commission okays Rs. 5000 crore Government Subsidy to provide 2.5 crore Mobile handsets.

• 14 Collective Investment Scheme (CIS) entities convicted in FY13, overall convictions at 138.

• India signs Double Taxation Avoidance Agreement (DTAA) with Latvia to prevent Income Tax Evasion.

• Jewellery designer Nirav Modi plans to open at least 10 retail stores in India and Overseas and introduce pieces at Lower price points.

Source: Economic Times

NEWS WRAP - SEPTEMBER 18, 2013

• Investors may get exit option if promoters misuse issue proceeds.

• Toyota to hike Vehicle prices by upto Rs. 24,000 from September 21, 2013.

• Bikanervala to invest Rs. 250 crore by FY'16 on expansion.

• Trump inks pact with Lodha for Central Mumbai, the 77-Storey Tower Project, with over 460 Apartments, likely to be priced between Rs. 8-10 crore.

• Twitter, the microblogging service that plans an Initial Public Offering, is outspacing its bigger competitors Facebook and Google in Mobile Advertising.

• Sun TV's frequent Buying & Selling of Aircraft is making analysts wary.

• The Country's largest realtor, DLF, will invest Rs. 400 crore over the next 2-3 years in Lucknow's 2 Projects.

Source: Economic Times

NEWS WRAP - SEPTEMBER 17, 2013

• US Food and Drug Administration (FDA) extends consent decree to Ranbaxy's Mohali Unit.

• Punjab government announces waiver of RDF, market fee on Basmati.

• Indian Steel Corporation scraps steel SEZ plans in Kutch.

• Titan launches 'Skinn' fragrance line.

• ITC ties up with RP Group to manage Hotels in India, Dubai.

• IKEA sends legal team to clear out Namesakes before India entry.

• Haryana Industry shares resources to fight Chinese Competition.

• 'Authorising Nation' Status: India may emerge as a low-cost testing hub for IT & Telecom products.

• Housing and Urban Development Corporation (HUDCO) to raise upto Rs. 4,800 crore via Tax-free Bond Issue.

• US Car maker Chrysler plans to file documents that would allow its minority investors to sell shares in a stock market listing. Fiat wants to buy 41.5% stake in Chrysler held by VEBA.

Source: Economic Times

NEWS WRAP - SEPTEMBER 14, 2013

• VV Minerals Chariman Vaikundarajan under scanner for illegal mining to the tune of Rs. 94,000 crore.

• Anti-Corruption Act may get tougher; centre proposes attachment of corrupt official's property pending trial.

• Anil Ambani's e-filing facility of I-T Account was allegedly hacked by a 21-year old Chartered Accountant student while pursuing her Articleship in Hyderabad.

• Ford India recalls 1,66,021 lakh units of Figo, Classic.

• FIIs can invest in government debt without Auction.

• Aberdeen unseats HSBC as top India fund as rupee crisis takes toll.

Source: Economic Times

NEWS WRAP - SEPTEMBER 13, 2013

• Top Global Universities like Harvard, Stanford, Cambridge, MIT rule out possibility of setting up campuses in India.

• Starbucks goes plush for India, gives its stores a local flavour.

• By adding Fingerprint Scanner, Apple fires Bio-metrics into the mainstream.

• Bluechips with big export play bounce back despite rupee fall.

• Castrol to reward Shareholders by reducing its Equity Capital; to return Rs. 5 for every share of face value of Rs. 10 to stakeholders.

• Hilton files US IPO of up to $1.25 billion.

• Tata Group hospitality firm Indian Hotels to open 34 more hotels, to have 156 hotels by 2017.

Source: Economic Times

NEWS WRAP - SEPTEMBER 12, 2013

• Walmart mulls exisitng India, final decision out by month-end.

• Jaypee Cement to sell 51% stake in Gujarat unit to Ultratech for Rs. 4,000 crore.

• The Delhi-Mumbai Industrial Corridor (DMIC) clears 6 projects; expects Investment of Rs. 1.10 lakh crore.

• Sadbhav Engineering gets Rs. 457 crore order for two water projects.

• Meru Cab, a radio taxi service, announced to launch operations in Ahmedabad.

• Bangalore-Headquartered HealthCare Global Enterprise (HCG) acquired Land at Sun Pharma in Vadodara for the Hospital.

• McDonald's is currently testing a Mobile Payment Application in US.

• TCS is now second among world's most valuable IT firms.

• Americans have become enthusiastic about High Value Indian Tea.

• RBI allows banks to borrow Overseas up to 100% of their Capital and swap it at a subsidized rate.

• India, Japan to consider setting up of Electronic township in country.

Source: Economic Times

NEWS WRAP - SEPTEMBER 11, 2013

• NSEL borrower Mohan India used driver's account as dummy to divert funds.

• Hero MotoCorp to set up R&D centre for Rs. 450 crore in Rajasthan, to be ready by June 2015.

• Airlines hike fares by 10-15% for select routes ahead of festive season.

• Zenith Infotech which is facing Winding Up Petition from Foreign Lenders, lost its court appeal challenging liquidation.

• SEBI notifies rules to classify illegal Collective Investment Schemes as fraud.

• SME Ace Tours Worldwide to enter Capital Market to raise Rs. 8 crore.

Source: Economic Times

FTE - A FAST TRACK EXIT MODE FOR COMPANIES

INTRODUCTION

Fast Track Exit (FTE) is a simplified procedure for the registered Companies for easy dissolution rather than undergoing the tedious and year long process of Winding Up. Winding up affairs in India is comparatively more time consuming and takes almost a life time for the Companies to get dissolved. In view of this, the Ministry of Corporate Affairs (MCA) introduced Fast Track Exit (FTE) Mode in the year 2011 for Defunct Companies under Section 560 of Companies Act, 1956. Thus, for at least the Defunct Companies the scheme is boon.

MAIN HIGHLIGHTS OF THE SCHEME

• The Company making Application under FTE should have Nil Assets and Liabilities. 
• The Company should not carry on any Activity or Business since Incorporation or should not be carrying out any Business Activity for the last one year before making an Application under FTE.
• A Company whose status on MCA Portal is Active or is identified as Dormant may apply for FTE.
• The Promoters of Defunct Companies by opting for easy Liquidation will save on effort and cost towards Annual Compliance.

WHO CANNOT AVAIL?

FTE is not applicable to the following Companies:

• Listed Companies
• Companies that have been de-listed
• Section 25 Companies
• Vanishing Companies
• Companies under Investigation/Inspection pending in any Court
• Companies where order u/s 234 has been issued and the reply/prosecution is pending
• Companies against which prosecution for a Non-Compoundable offence is pending in Court
• Company in respect of which filing of documents have been stayed by Court or CLB or Central Government or any other competent authority
• Companies with outstanding Public deposits or secured loans
• Companies in a Management Dispute
• Companies owing dues to Income Tax, Sales Tax, Central Excise, Banks and Financial Institutions or Central Government or State Government or any Local Authority

PROCEDURE

- Make an Application in the Form FTE available on MCA Portal, along with a filing fees of Rs. 5000/-

- Form FTE to be accompanied by:

1. Affidavit from each existing Director
2. Indemnity Bond from individual Director or collectively duly notarized
3. Statements of Accounts duly certified by the Statutory Auditor or a CA in whole time practice
4. Board Resolution showing authorization given to the Directors for filing the form with the ROC

Along with these documents, Form FTE is to be filed. The  Registrar of Companies on receipt of application, shall examine the same and if found in order, shall give Notice to the Company giving 30 days time, stating that unless cause is shown to the contrary, its name be struck off from the Register and the Company will be dissolved.

NEWS WRAP - SEPTEMBER 10, 2013

• TRAI recommends up to 60% cut in base price for upcoming 2G Auctions; a drive to woo telecos and bring big revenues to curb Fiscal Deficit.

• Nestle weighs options for L'Oreal stake sale conundrum.

• Vikram Bakshi alleges McDonald's of piling pressure; moves to Company Law Board.

• KKR likely to buy Gland Pharma for Rs. 1000 crore by month-end.

• LG, Samsung, Panasonic and Sony bet big on B2B space to insulate growth from economic slowdown.

• Samsung to launch 10-inch tablet, spacious fridge by December in India.

• Companies Act draft rules put a cap on term of auditors by mandating Rotation of Auditors in Listed Companies.

• Russia lifts ban on import of rice, peanuts from India.

Source: Economic Times.

EXTERNAL COMMERCIAL BORROWING (ECB) FROM THE FOREIGN EQUITY HOLDER

ISSUING AUTHORITY : RESERVE BANK OF INDIA

DATE OF ISSUE : 04/09/2013

EFFECTIVE DATE : IMMEDIATE EFFECT

CIRCULAR NO. 31

It has been decided to permit eligible borrowers to avail of ECB under the approval route from their foreign equity holder company with minimum average maturity of 7 years for general corporate purposes.

Till now borrowings in the form of ECB were not permitted to be utilized for general corporate purpose.

However, it includes certain conditions:

• Minimum paid up equity of 25% should be held directly by the Lender.

• Such ECBs would not be used for any purpose not permitted under extant the ECB Guidelines (including on-lending to their group companies/step down subsidiaries in India).

• Repayment of the Principal shall commence only after completion of minimum average maturity of 7 years. No prepayment will be allowed before maturity.

All other aspects of extant ECB guidelines shall remain unchanged.

For detailed circular, please follow the Link below:
A.P. (DIR Series) Circular No.31

NEWS WRAP - SEPTEMBER 09, 2013

• Abu Dhabi's Utility Company ADWEA to acquire Jaypee's 2 Hydro Power Plants in Himachal for $2 billion.

• Sahara busy dealing to acquire Grosvenor House, the iconic London Hotel.

• Sony India's Smartphone biz set to overtake flagship LED Division.

• Over 250 projects worth Rs. 11 lakh crore queue up for Fast-track clearance by PM-backed cell.

• Ministry of Tourism brings out new guidelines for Star Luxury Hotels.

• Krishnamurthy Vijayan launches Rs. 250-crore Impact Investment Fund, to invest in India's livelihood and skills development space.

• EPFO may approve 8.5% Interest Rate for 2013-14.

• Tokyo to host Summer Olympics 2020.

Source: Economic Times

NEWS WRAP - SEPTEMBER 07, 2013

• RBI eases rules for Foreign and NRI Promoters to raise stake in listed firms.

• Government to reimburse the total cost of treatment abroad to IAS, IPS and IFS Officers.

• Forex Reserves dip to $ 275 billion as RBI tries to stem Rupee fall.

• Bombay High Court dismisses Vodafone's plea against I-T department; clarified that Transfer Pricing Authorities have jurisdiction to investigate suo moto any cross border transactions.

• Government lines up Rs. 10,000 crore subsidy for mobiles, tablets in rural areas.

• Nasa launches Robotic LADEE to moon.

• Apple poised to ship iPhones to China Mobile.

• Tata Sons appoints Havard Business School Dean - Nitin Nohria as Non-Executive Director.

• Sahara Group ties up with Dainik Bhaskar for Q Shop Retail Chain in Delhi through Super Bazar outlets.

• Reliance Communications appoints Deepak Khanna as CEO for local enterprise business.

• ONGC's $ 200 million order to L&T-Pipavav Shipyard valid: Bombay High Court.

Source: Economic Times

NEWS WRAP - SEPTEMBER 05, 2013

• Economic slowdown hits IIM Campus Placements: Average salaries may stay flat or go up by 8%.

• Uncertain Economic Scenario: Employees brace for a dip in year-end variable pay.

• Tata Motors to re-align its sourcing strategy as a part of major organization revamp.

• Vanzara's Letter has 'only political, no legal value': CBI.

• India Inc increase debt MF exposure by 14% ; Reliance Industries, Cairn India, Bharti Infratel top the charts.

• Private Equity Fund 'Quadria Capital' eyes $300 million for healthcare fund.

• Rupee's downslide: Reliance Communications to pass the increased input costs to customers.

• ICICI Bank launches 'branch on wheels'.

• Samsung to launch 2 ultra-high definition TVs in India this month.

Source: Economic Times

NEWS WRAP - SEPTEMBER 05, 2013

• Gold-rich temples refuse to unlock idle assets to help Government bring down Gold Import.

• SpiceJet increase fares by 25%; others follow suit.

• U.S. Senate panel passes authorization for use of military force in Syria.

• Kohlberg Kravis Roberts and Co (KKR) led consortium may invest Rs. 600 crore in Apollo Hospitals.

• Awaiting clarity on M&A norms in telecom sector: Gopal Vittal, CEO - Bharti Airtel.

• Mahindra's Scorpio overtakes Renault Duster in August sales.

• Warner Brothers to expand Kids WB stores in India.

• FMCG Companies like Asian Paints, Pidilite, Emami, take legal route for Trademark Infringement.

Source: Economic Times

NEWS WRAP - SEPTEMBER 04, 2013

• Microsoft, which has bought Nokia for 5 Billion Euros, to slash prices of Nokia Smartphones in India to regain its lost market.

• V Balakrishnan to rise in Infosys: Elevation as CEO near certain if SD Shibulal decides to give up post.

• Kingfisher Airlines CEO Sanjay Aggarwal gets Rs. 4 crore pay package even as headcount halves.

• Environment Ministry levies Rs. 200 crore fine on Adani Group's Mundra Port and SEZ for damaging mangroves and local environment.

• Etihad likely to complete 24% stake in Jet Airways by September 20 as it is expected to get all regulatory clearances by then.

• 2 Vadodara based Companies Gacl and Prakah Chemicals bag award from CHEMXCIL; former company awraded Gold for Export Performance while the latter bags Platinum.

• Lanco Group cuts down 4000 employees due to slowdown.

• America's iconic Women Apparel Brand 'The Limited' plans India foray by opening 5 stores next year.

• Italian Luxury goods firm 'Bulgari' plans to set up exclusive retail stores in India; ready to play second innings after ending JV in 2011.

• Finance Ministry nudges Coal India to buy-back 5% of its Shares.

• Microsoft-Nokia Alliance - A Death Knell for Blackberry.

Source: Economic Times

NEWS WRAP - SEPTEMBER 03, 2013

• Radico Khaitan to sale its 26% stake to Japanese Liquor Company - Suntory Holdings for Rs. 870 crore.

• PM Manmohan Singh launches Mahatma Gandhi Portal, aimed at making "Mahatma Gandhi accessible all over the world" on an Electronic Platform.

• Realty Firm Mahindra Lifespace Developers to raise Rs. 400 crore by issue of Equity Shares by way of Qualified Institutional Placement (QIP).

• ACC Cement to set up Cemeny Factory in Kharagpur.

• World's largest Insulin player Novo Nordisk to launch Insulin Injection 'Tresiba' for Diabetes in India.

• DoT to seek 10 years Tax Holiday for Telecom Infrastructure Sector without a sunset clause.

• NSEL crisis: Bank of India sells MCX stake for over Rs. 20 crore.

• Singapore Stocks worst hit among Developed Markets on Fed Tapering.

• Pakistan Mangoes sell at Rs. 80/kg in Delhi as against Rs. 150-200/kg for desi variety.

Source: Economic Times

NEWS WRAP - SEPTEMBER 02, 2013

• Bharti Airtel in talks to acquire 'Loop Mobile' - Mumbai's one of the oldest Cellular Networks.

• Vodafone India to soon award $200 million contract to Finland's Nokia Solutions and Networks to upgrade its 2G and 3G networks.

• Vikram Bakshi to move to CLB to seek reinstatement as Managing Director of JV with McDonald's.

• Customer complaints rise against Life Insurers by over 10%.

• India incurs loss of Rs. 2 lakh crore/year post harvest of fruits, veggies due to lack of storage & processing facilities.

Source: Economic Times