Friday, 28 February 2014

NEWS WRAP - FEBRUARY 28, 2014

  • Infrastructure company Ramky Infrastructure in talks to raise Rs. 900 crore from assets sale.
  • Tata Motors to set up Jaguar and Land Rover plant in Saudi Arabia.
  • Nigeria fines mobile firms MTN, Airtel and Globacom a combined $4 million for poor service.
  • EBay founder rejects Carl Icahn's call for PayPal spin-off.
  • No money for Kingfisher Airlines revival; Vijay Mallya pays over Rs. 4 crore for race horse 'Air Support'. 
Source: Economic Times

Thursday, 27 February 2014

NEWS WRAP - FEBRUARY 27, 2014

  • Coal India and its largest customer NTPC spar over Rs. 3,000 crore arrear settlement.
  • India, Dubai agree to increase bilateral airline seat entitlements by little over 20%.
  • Most Infosys staff to get 5-7% hike; seniors, onsite being finalized.
  • Anand Mahindra's $1 million challenge to solve traffic stress and electricity shortage awaits desi innovators.
Source: Economic Times

Wednesday, 26 February 2014

NEWS WRAP - FEBRUARY 26, 2014

  • Nasa to launch water-related satellite in collaboration with Isro.
  • India to block US trade probes, ready for fight at WTO.
  • No railway refund for non-travellers from March 1.
  • Tata Global Beverages gets bourses' nod to merge Mount Everest Mineral Water.
  • Swarovski to launch products specifically designed for India.
Source: Economic Times

Tuesday, 25 February 2014

NEWS WRAP - FEBRUARY 25, 2014

  • IT majors TCS, Infosys, Wipro and Cognizant focus on digital services to create business solutions.
  • Small companies market themselves on Facebook and seal deals via WhatsApp.
  • Corporation Bank in pact with Tata Motors to finance commercial vehicles.
  • Pfizer to buy stake in two foreign units; shares rally.
  • Ranbaxy Laboratories suspends drug ingredients shipment from 2 plants.
Source: Economic Times

Monday, 24 February 2014

NEWS WRAP - FEBRUARY 24, 2014

  • India to adopt global financial standards from April 2015.
  • Honda plans India R&D unit with initial investment of Rs. 500 crore to develop affordable cars. 
  • Emirates set to get more flying rights with additional 10,000 seats a week.
  • SpiceJet sparks off third fare war of the year; opens three day window to offer 75% off on base fare.
Source: Economic Times

Saturday, 22 February 2014

NEWS WRAP - FEBRUARY 22, 2014

  • Oil Ministry falters over price hike nod to Reliance post FIR.
  • Honda considers opening board to foreigners.
  • Videocon Group firm to set up Rs. 1,000 crore plant in Tamil Nadu.
  • Vodafone gives new arbitration notice; challenges right to slap Rs. 20,000 crore retro tax demand.
  • Steve Jobs, Snoopy, John Lennon to grace US stamps.
Source: Economic Times

Friday, 21 February 2014

NEWS WRAP - FEBRUARY 21, 2014

  • WhatsApp, BBM, FB chat under Sebi lens for being used to spread price-sensitive information.
  • With Dell's PowerEdge servers, Flipkart leads India's e-commerce transformation.
  • Bespoke suit makers, scotch brands join hands to woo rich Indian clients.
Source: Economic Times

Thursday, 20 February 2014

NEWS WRAP - FEBRUARY 20, 2014

  • CCI rules out unfair trade practices by Religare group firms.
  • ITC to take on Nestle, PepsiCo, Amul and HUL with dairy products and non-carbonated drinks.
  • Lotte India Corporation Ltd. to invest Rs. 300 crore in Haryana.
  • Government likely to increase and merge dearness allowance with basic pay.
  • Singapore's Jungle Ventures invest Rs. 7.3 crore in Crayon Data.
  • Facebook to buy WhatsApp message service for $19 million.
Source: Economic Times

Wednesday, 19 February 2014

NEWS WRAP - FEBRUARY 19, 2014

  • New Silk Route gets ready to sell Destimoney for Rs. 1,200 crore.
  • Mumbai builder Lodha Group buys second building on Carey Street in London for Rs. 1,000 crore after MacDonald House.
  • 14 more coal block licences of companies like ArcelorMittal, Hindalco, Tata Power, Reliance Energy cancelled.
  • 47 Taiwanese electronics firms to set up shop cluster in Bangalore.
  • Kiran Mazumdar-Shaw succeeds Mukesh Ambani as Chairperson of IIM-B board.
Source: Economic Times

Tuesday, 18 February 2014

NEWS WRAP - FEBRUARY 18, 2014

  • Centre takes back 10 coal blocks from firms like Jindal Steel, Tatas, Adani.
  • Amazon to use own logistics network for product delivery in 2 years.
  • Vote on Account 2014: Cars, two-wheelers, TVs, computers, refrigerators set to be cheaper.
  • Bangladesh inks hydrocarbon exploration deals with Oil India, ONGC.
  • Actavis Plc in talks to but Forest Laboratories Inc for upto $25 billion.
Source: Economic Times

Monday, 17 February 2014

NEWS WRAP - FEBRUARY 17, 2014

  • Airtel to announce Rs. 700 crore Loop Telecom deal soon via slump sale.
  • Mukesh Ambani's son Akash being mentored to join Reliance.
  • Manpasand Beverages Private Limited to invest Rs. 100 crore to raise sales to Rs. 1,000 crore.
Source: Economic Times

Saturday, 15 February 2014

GLOBAL TAX FREE TRADERS (INFORMANT) VS. WILLIAM GRANT & SONS (DEFENDANT)

Applicable Act: The Competition Act, 2002 (The Act)

ALLEGATIONS

A complaint filed by the Informant alleged that the firms had imposed exorbitant, unfair and discriminatory prices which were possible only due to the dominant position enjoyed by them in the liquor market in the country.

BRIEF OF FACTS

The Defendant, headquartered in the United Kingdom is engaged in the production, sale, marketing and distribution of spirit. It offers scotch whisky, single malts, handcrafted single malts, gin and other spirit. The Informant is an exclusive distributor of the Defendant.

It was alleged that the Defendant permitted import of their products into India through a number of entities such as Delhi Duty Free Services and other private companies, at prices much lower than those charged from the Informant. 
CCI noted that the firms which were the third largest producer of  'scotch whiskey' had around 10 percent market share after Diageo and Pernod Richard in the world. For the Indian market, CCI noted that United Spirits Ltd. (USL) held more than 50 percent of the market share in whiskeys followed by various other alcoholic beverages manufacturing companies. The percentage of imported liquor in India is very minimal, around 3 percent. 

CONCLUSION

Therefore, considering the above scenario, the CCI concluded that the Defendant were not dominant in any of the alternative relevant market definitions and therefore the issue of abuse would not arise.

DECISION

The fair trade regulator Competition Commission of India (CCI) dismissed charges of abuse of dominant position under Section 4 of the Act against the Defendant's three group firms with respect to purchase and sale of liquor in India.

NEWS WRAP - FEBRUARY 15, 2014

  • Egypt two-wheeler import ban likely to hit Bajaj Auto hard.
  • Sugar, soya oil may join Commodity Transaction Charge (CTT) negative list.
  • ACC enters brick segment with Bengal plant to make Fly Ash brick units.
  • Nissan ends sales, marketing pact with Hover Automotive ahead of Datsun launch.
  • CCI rules out abuse of dominance against William Grant & Sons with respect to purchase and sale of liquor in India.
Source: Economic Times

SEBI CLEARS NEW CORPORATE GOVERNANCE NORMS

To exhort listed companies and their top executives to follow 'good business practices', market regulator Sebi cleared new corporate governance norms which shall be effective from October 1, 2014. These new norms will be incorporated in the listing agreement also. Following are the new rules disclosed:
  • The new rules exclude Nominee Director from the definition of Independent Director. 
  • Sebi has restricted the tenure of Independent Directors to 2 to 5-year terms. Directors nominated by the company's promoter cannot be classified as an independent director. An Independent Director has a maximum term of 5 years extendable by another 5 years subject to a special resolution.
  • It is mandatory for the listed companies to disclose remuneration policies of CEO and Executive Directors, Related-Party Transactions (RPTs) and appointment and resignations of Independent Directors.
  • Mandatory constitution of Nomination and Remuneration Committee. Chairman of the said committee should be independent. 
  • Separate meetings of the Independent Directors should be held.
  • A person cannot be an Independent Director in more than 7 companies and 3 in case the person is serving as a Whole Time Director and cannot accept stock option plans.
  • It is mandatory for the companies to have an orderly succession plan for appointments to the board and senior management, a whistle blowing policy and to appoint at least 1 woman director on its board, besides empowering minority shareholders to approve related-party transactions.
  • The minimum capital requirement of an asset management company has been increased from Rs. 10 crore to Rs. 50 crore.
  • Get public shareholder's nod for RPTs and carry out performance evaluation of all directors. The constitution of a Stakeholders Relationship Committee has been made mandatory.
  • The role of Audit Committee has been expanded to its prior approval for all RPTs by shareholders through special resolution with related parties abstaining from voting.
  • The scope of the definition of RPT has been widened to include elements of Companies Act and Accounting Standards.

Friday, 14 February 2014

NEWS WRAP - FEBRUARY 14, 2014

  • Ministry of Rural Development demands Rs. 1,000 crore more for socio economic and caste census.
  • Sebi clears new corporate governance norms, mutual fund policy.
  • Gas price FIR: RIL weighs legal options, might go for defamation suit.
Source: Economic Times

Thursday, 13 February 2014

NEWS WRAP - FEBRUARY 13, 2014

  • Panasonic files plea for single-brand application to become the first global electronics brand to open company-owned outlets.
  • AstraZeneca to shut Bangalore R&D site; to impact 170 jobs.
  • Tea Board invites Expressions of Interest (EoI) from private parties for setting up Tea Park in Kolkata.
  • IPL7 Auction: Yuvraj joins RCB for a staggering Rs. 14 crore, Karthik at Delhi for Rs. 12.5 crore.
Source: Economic Times

UNITED STATES DRAGS INDIA TO WTO ON SOLAR MISSION PROGRAMME

India in 2010 launched Jawaharlal Nehru National Solar Mission. It aims to have 20,000 MW of grid-connected solar power by 2022. The US already had consultations with India on solar domestic content for the phase-I of the programme. Dismissing the allegations, India said its National Solar Mission programme is WTO-compliant and it would defend its stand in the Geneva-based multilateral body. 

The US has challenged that the domestic content requirements discriminate against US exports by requiring solar power developers to use India-manufactured equipment instead of US equipment and that these requirements are against WTO rules.The US added that solar power developers receive certain benefits and advantages, such as long-term tariffs for electricity, contingent on their purchase and use of solar cells and solar modules of domestic origin.

Commerce Secretary Rajeev Kher pointed out that several US companies have won contracts in phase-II of India's National Solar Mission. He further added that US solar and renewable energy projects are protectionist in nature.

"The claim states that India provides less favorable treatment to imported solar cells and solar modules that accorded to like products originated in India and they are trade-related investment measures inconsistent with India's obligations under the GATT," according to the WTO.

A request for consultations is the first step in the WTO dispute settlement process and is intended to help parties find a solution. If the matter is not resolved through consultations within 60 days of the request, the US may ask WTO to establish a dispute settlement panel.

DONATE TO A POLITICAL PARTY TO SAVE TAX

It is the height of election season, and campaign spending is setting new records. Many political parties are going all out to avail donations to fill their pockets. But breaking the traditions, parties are also focusing on individuals to mop up finance. Some parties are promoting their online donation platforms in the run-up to the polls, highlighting the tax deduction for contributing to political parties.

Election funding can reap some smart tax saving with 100% tax deduction for donation to political parties. The entire amount donated by an individual to a recognized political party is allowed as deduction under Section 80GGC of the Income Tax Act, 1961 while computing his/her gross total income. 

Following parameters should be kept in mind for availing deduction under the said section:
  • Donations made in cash are not eligible for tax deduction. In short, make the payments through banking channels - cheques, demand drafts, credit or debit cards and internet banking.
  • Another condition is that donation should be made to a political party registered under Section 29A of the Representation of the People Act, 1951.
While there is no cap on the claim amount as a deduction for such donations, there is an overall limit on total deductions. This exemption is part of Chapter VI-A deductions. And under the law, the total deductions under the said Chapter cannot exceed the gross income. The employees will have to claim a refund at the time of filing their Income Tax Returns. 

Wednesday, 12 February 2014

NEWS WRAP - FEBRUARY 12, 2014

  • Gas price row: Delhi CM Kejriwal orders Anti Corruption Branch to file FIR against Mukesh Ambani, minister Veerappa Moily.
  • Skoda plans sub-four-meter compact sedan for India to tap the upwardly mobile.
  • Abhishek Bachchan named ambassador of 'END7' Campaign to spread awareness on tropical disease.
  • Banking expansion may create up to 20 lakh jobs in 5-10 years.
  • Donation to a political party via cheque, credit/debit card or net banking can be claimed as deduction under section 80GGC.
  • Loopholes in Rural Electrification Plan resulted in cost escalation of Rs. 696 crore.
  • Solar plan: US drags India to WTO, India to defend local content policy.
Source: Economic Times

Tuesday, 11 February 2014

NEWS WRAP - FEBRUARY 11, 2014

  • Labour Bureau to revise outdated wage, price indices.
  • Soha Ali Khan joins hand with P&G's flagship Corporate Social Responsibility program P&G Shiksha headquartered at Gujarat.
  • Infibeam taking cloud platform BuildaBazaar, aimed at bringing offline retailers online, overseas.
  • Zydex Nanotechnology comes up with a solution for moisture-resistant and long-lasting roads.
  • PE firms General Atlantic Partners, Baring Asia, Actis, Apax negotiate for a large stake in CARE.
  • India the largest market of Truecaller application with 22 million users.
Source: Economic Times

Monday, 10 February 2014

NEWS WRAP - FEBRUARY 10, 2014

  • DLF sells Aman Resorts to its founder Adrian Zecha for Rs. 1,600 crore.
  • DCGI asks Novartis to seek 'violations' in papers on drug manufacture.
  • Labour Ministry asks EPFO to provide permanent PF account number soon.
  • Finance Ministry clears 9 Foreign Investment proposals worth Rs. 798.73 crore approved.
  • Government imposes ban on Reliance's retail LPG sales over violation of LPG control order.
Source: Economic Times

LAW LEXICON - The Law Dictionary

  • Contemporanea expositio est optima et fortissima lege: A contemporaneous exposition or language is the best and strongest in Law
  • Delegate potestas non-potest delegari: A delegated power cannot be delegated further
  • Ipso facto: By the very nature of the case
  • Amicus curiae: A friend of Court
  • Travaux preparatotries: Preparatory records

Saturday, 8 February 2014

NEWS WRAP - FEBRUARY 8, 2014

  • Ambuja Cements, ACC to see top-level rejig with MDs of both companies offering to resign.
  • Damodar Valley Corporation to move to Supreme Court against Reliance discom over Rs. 900 crore unpaid dues.
  • Apple-Bitcoin rift has currency's enthusiasts ditching iPhones.
  • 1 billion plastic notes of Rs. 10 denomination to be introduced later this year on a field trial basis.
  • ICICI-led infradebt fund inks Rs. 50 crore loan pact for road project promoted by Jaypee Group.
  • Toyota close to $1 billion deal to settle US probe: Report
Source: Economic Times

Friday, 7 February 2014

CHARAK PHARMACEUTICALS (INFORMANT) VS. GLENMARK PHARMACEUTICALS (DEFENDANT)


ALLEGATIONS

The Informant alleged that the mark adopted by the Defendant is phonetically and structurally deceptively similar to that of the mark of the Informant and was likely to create confusion in the minds of the consumers.

BRIEF OF FACTS

The Informant started making the drug 'Evanova' from April 2002 in the form of capsules for the treatment of menopause while the Defendant had in May 2006 applied for registration of its mark 'Econova' used in probiotic capsules for the treatment of bacterial vaginosis.

According to the Informant, it learned about the illegal activities of the Defendant of infringement of the Informant's registered trademark 'Evanova' and of passing off their product as that of the Informant's. The Informant contended that the products of both the parties dealt in the same area, the standard of scrutiny would have to reckon whether there was phonetical and structural similarity and whether they were likely to create any confusion in the minds of men of ordinary intelligence. The Court should note similarities of the two marks and not decide on the basis of dis-similarities.

The Defendant argued that its mark was aurally, structurally and visually different and dis-similar to that of the mark of the Informant's. Moreover, the product of the Defendant was available only against prescription and not Over The Counter (OTC) as in the case of Informant. It further contended that since May 2006, the company had been extensively using the said trademark and enjoyed immense reputation and goodwill of its own. For these reasons, the Defendant asserted that there is no similarity in the two marks.

CONCLUSION

The Bombay High Court Judge said that he was prima facie satisfied that the Defendant's mark 'Econova' was deceptively similar to the Informant's mark 'Evanova'. He further added that both the products were entirely different and if, as a result of the confusion, the wrong drug was administered, it would lead to disastrous consequences.

DECISION

The Bombay High Court has granted relief to the Informant, directing the Defendant to rename its drug 'Econova' since its name is deceptively similar.

NEWS WRAP - FEBRUARY 7, 2014

  • Vodafone India's Rs. 10,141 crore FDI proposal cleared by Cabinet.
  • Charak Pharmaceuticals wins case agains Glenmark over drug name.
  • KKR investing $100 million in Gautam Thapar's Avantha Group.
  • Viacom18 to launch indie music channel in mid-Feb with PepsiCo as anchor advertiser.
  • Huawei faces inter-ministerial probe on BSNL hacking charges.
  • Jubilant group considers sale of its chemical business to reduce debt.
  • Henkel bet turns glorious for Jyothy Labs.
  • BOSCH gets the first investment approval under MSIPS for Rs. 436 crore.
Source: Economic Times

Thursday, 6 February 2014

NEWS WRAP - FEBRUARY 6, 2014

  • India to extend visa-on-arrival facility to tourists from 180 nations.
  • After snapping up $50 million, Myntra is now in talks to raise $40 million more.
  • Government plans new car safety norms in 3 months after some cars failed safety tests in Europe.
  • Vikram Bakshi gearing up for legal battle against McDonald's; sells assets to create fund.
  • Jabong to hike up its funds for $100 million.
  • Microsoft ties up with Tata Tele, MBD and Acer to bundle content for schools.
Source: Economic Times

Wednesday, 5 February 2014

INTEREST RATES ON FCNR (B) DEPOSITS

ISSUING AUTHORITY : RESERVE BANK OF INDIA
DATE OF ISSUE : 31/01/2014
EFFECTIVE DATE : 01/03/2014
CIRCULAR NO. RBI/2013-14/477

In exercise of the powers conferred by Section 35A of the Banking Regulation Act, 1949, following changes in the interest rates on FCNR (B) deposits will be exercised with effect from March 1, 2014.

MATURITY PERIOD
EXISTING
WITH EFFECT FROM MARCH 1, 2014
1 year to less than 3 years

LIBOR/SWAP plus 200 basis points
No change

3 - 5 years

LIBOR/SWAP plus 400 basis points

LIBOR/SWAP plus 300 basis points


The interest rates mentioned vide Circular dated August 14, 2013 shall be applicable till February 28, 2014.

For detailed Circular, follow the Link below:
RBI/2013-14/477

DEREGULATION OF INTEREST RATES ON NON-RESIDENT (EXTERNAL) RUPEE (NRE) DEPOSITS

ISSUING AUTHORITY : RESERVE BANK OF INDIA
DATE OF ISSUE : 31/01/2014
EFFECTIVE DATE : 01/01/2014
CIRCULAR NO. RBI/2013-14/476

The freedom to offer interest rates on incremental NRE deposits with maturity of 3 years and above without any ceiling in order to pass on the benefit of exemption provided on such deposits from CRR / SLR requirements will remain unchanged up to February 28, 2014.

With effect from March 1, 2014 the interest rate ceiling will revert to the position prior to August 14, 2013, i.e. interest rates offered by banks on NRE deposits cannot be higher than those offered by them on comparable domestic rupee desposits.

For detailed Circular, follow the Link below:
RBI/ 2013-14/476

NEWS WRAP - JANUARY 5, 2014

  • IDFC private equity-led group in talks for stake in GVK's airport business.
  • Apple restarts production of iPhone 4 for India and 2 other markets with an eye on Rs. 20,000 segment to recoup market share.
  • Microsoft names India-born Nadella as next CEO, Gates to advise on technology.
  • Attero and Wealth out of Waste (WoW) to in Memorandum of Understanding for Clean-E-India.
  • Mahindra & Mahindra prepares a Quadricycle to take on Bajaj's RE60.
Source: Economic Times

Tuesday, 4 February 2014

NEWS WRAP - FEBRUARY 4, 2014

  • Government slashes pipe cooking gas, CNG prices by 20-30%.
  • Thomas Cook to take over Sterling Holiday Resort paying Rs. 125 per share, 36% premium.
  • Lupin buys Dutch delivery tech firm, Nanomi BV for injectables entry.
  • Singapore-based Sembcorp to buy 45% stake in NCC Gayatri project for Rs. 848 crore.
  • Government to provide Rs. 1,400 crore loan subsidy for rural women self-help groups.
Source: Economic Times

Monday, 3 February 2014

NEWS WRAP - FEBRUARY 3, 2014

  • Cheaper smartphones: Lenovo set to challenge major smartphone players after the Chinese major's acquisition of Motorola Mobility.
  • Marico forays into hair colour space with Livon; prices product 30% lower than L'Oreal.
  • Centre to hike dearness allowance by 10% to 100% for second time benefitting 50 lakh employees and 30 lakh pensioners.
  • Tata Nano, Alto, Figo and i10 fail independent crash tests, branded 'high risk': Global NCAP
Source: Economic Times

Saturday, 1 February 2014

NEWS WRAP - FEBRUARY 1, 2014

  • Hindustan Unilever promoters fined Rs. 50 lakh by Sebi for violating norms.
  • Fiat to present small Jeep in March, 500X in October: Italian Trade Union.
  • India's Rs. 400-crore automated surveillance system faces delay.
  • Price war: Airlines like SpiceJet, Indigo and others slash fares for second time in a month.
  • Yahoo detected a major email hack and is making users reset their passwords.
  • Detroit files lawsuit in US bankruptcy court to invalidate $1.44 billion of pension debt.
  • GSF launches global accelerator programme for startups.
Source: Economic Times