Monday, 31 March 2014

NEWS WRAP - MARCH 31, 2014

  • Apple could use buyback formula for iPad Air and Retina iPad mini too.
  • Morgan Stanley almost doubles Gorman's 2013 pay to $18 million.
  • Google, Facebook, Twitter eye Rs. 500 crore social media election pie.
Source: Economic Times

Saturday, 29 March 2014

NEWS WRAP - MARCH 29, 2014

  • Nokia to Madras High Court: Can’t pay even part of Rs 2,400 crore sales tax demand.
  • SEBI summons Etihad officials over stake deal with Jet to clarify on Jet open offer.
  • W owner TCNS Clothing plans to scale up India business; getting ready for global show in a year.
  • Canadian smartphone maker BlackBerry Ltd. reported a smaller-than-expected loss.

Source: Economic Times

Friday, 28 March 2014

NEWS WRAP - MARCH 28, 2014

  • Subrata Roy to stay in jail till April 3, Sahara says can't pay Rs. 10,000 crore for bail.
  • StemCyte Inc. to open more umbilical cord blood collection centers in India.
  • CBI files chargesheet against Congress MP Vijay Darda, son in coal scam.
  • Reliance Industries shuts Jamnagar paraxylene unit for 6 weeks for maintenance.
  • General Motors president predicts autonomous cars by 2020.
  • Cox & Kings and Ezeego1.com join hands with G Adventures.
  • Competition Appellate Tribunal dismisses Bhargava's plea against Jet-Etihad deal.
  • Swiss firm Capri-Sun enters India with fruit juices for kids.
  • Tatas, Srei Infrastructure look to sell majority stake in Viom Networks.
  • Park Hyatt Hyderabad owner seeks recast of Rs. 450 crore loan; asks more time for repayment.
  • Drug maker Sun Pharma to buy Standard Chartered's Mumbai Tower for Rs. 280 crore.
  • Ramesh Sanka resigns from DLF; will continue as MD till July 31.
  • Calvin Klein deal to help denim wear maker Arvind rise the market ladder.
Source: Economic Times

LAW LEXICON - The Law Dictionary

  • Notice of Dishonour: Notice given by the holder of a bill of exchange to the drawer when the bill is refused or delayed payment
  • Stare Decisis: Let the decision stand. The policy of courts to abide by or adhere to principles established by decisions in earlier cases
  • Abscond: To hide; withdraw; to depart clandestinely. To go out of the jurisdiction of the courts, or to conceal oneself to avoid legal process.
  • Docket: A list of cases scheduled to be heard in court on a specific day or week
  • Decree: An order that has force of law

Thursday, 27 March 2014

NEWS WRAP - MARCH 27, 2014

  • Supreme Court asks Sahara Group to deposit Rs, 10,000 crore to grant bail to Subrata Roy.
  • Top-deck exit continues at Jet Airways; acting CEO R Gopalakrishnan 3rd one to quit since June.
  • CPI (Consumer Price Index)-linked bond investment limit hiked to Rs. 10 lakh for individuals.
  • Vijay Mallya may be labelled as 'wilful defaulter' by SBI.
  • Companies get relaxation on compliance requirements till September for approval of shareholders through ordinary resolution.
Source: Economic Times

Tuesday, 25 March 2014

NEWS WRAP - MARCH 25, 2014


  • 2G Scam: Supreme Court refuses to cancel Sanjay Chandra's bail.
  • EPFO to provide Permanent Account Number from October this year.
  • Bank of India to sell Rs. 900 crore bad loans to Asset Reconstruction Company.
Source: Economic Times


Monday, 24 March 2014

NEWS WRAP - MARCH 24, 2014


  • FMCG cut down on product launches in 2013 in a tough market.
  • Aditya Birla Private Equity in talks to pick 6% in Adlabs Imagica for Rs 100 crore. 
  • E-filing of I-T returns: Taxpayers to get digital signatures.
  • Tata group firm Titan Co. is looking to increase its size by two-and-a-half times in the jewellery market over the next five years.
  • Tata Motors to invest Rs 1,500 crore on new trucks, buses in Financial Year 2015. 
  • Shoppers stop, Infiniti Chief win accolades at Economic Times Retail Awards.
Source: Economic Times

Saturday, 22 March 2014

NEWS WRAP - MARCH 22, 2014

  • British supermarket giant Tesco announces joint venture with Tata to enter India retail space.
  • Nokia's trouble multiply as Tamil Nadu Govt serves Rs. 2,400 crore tax notice.
  • Government sells 9% stake in Axis Bank, garners over Rs. 5,500 crore.
  • TCS ranked No. 1 employer in Europe.
  • Drug Controller General of India may soon be approving special licences to stem cell operators.
Source: Economic Times

Friday, 21 March 2014

NEWS WRAP - MARCH 21, 2014

  • SUUTI to sell 9% in Axis Bank via block trades, government plans to mop up Rs. 5,500 crore.
  • Infosys co-founder Nandan Nilekani, wife Rohini declare assets worth Rs. 7,700 crore.
  • SpiceJet defends holi jig, denies violating air safety guidelines.
  • NHB likely to raise $200 million from overseas market.
  • Election Commission permits Ministry of Corporate Affairs to notify new company laws operational from April 1, 2014.
  • Pakistan set to import 1,200 MW electricity from India.
  • Starbucks says India operations fastest growing in its history.
  • JLR invests 45 million pounds in a new press line at Halewood plant.
  • PK online plans to raise Rs. 100 crore in first round funding.
Source: Economic Times

Thursday, 20 March 2014

NEWS WRAP - MARCH 20, 2014

  • Indian techies in Silicon Valley turn angel investors for Arvind Kejriwal.
  • Volvo teams up with Bangalore company, SM Kannappa Automobiles to produce buses for emerging markets.
  • Banks to remain open this weekend to facilitate advance tax collection.
  • SAIL's Bhilai Steel Plant conducts hot trials of new Rs. 730 crore sinter plant.
  • RBI allows more private banks to import gold in easing of curbs.
Source: Economic Times

LAW LEXICON - The Law Dictionary

  • Mens Rea: The intention or knowledge of wrong doing that constitutes part of a crime, as opposed to the action or conduct of the accused
  • Ad Curiam: At a Court
  • Pro Bono Publico: For the public good
  • Judgement Creditor: A party to which the debt is owed that has proved the debt in a legal proceeding and that is entitled to use judicial process to collect the debt; the owner of an unsatisfied court decision
  • Judgement Debtor: Any person against whom a decree has been passed

Wednesday, 19 March 2014

NEWS WRAP - MARCH 19, 2014

  • France's Vicat in talks to buy out Sagar Cements' 47% stake for Rs. 4100 crore.
  • RIL reaches to aam aadmi via SMS to counter Kejriwal; urges people to read documents.
  • Dhoni statement against match-fixing is a Rs. 100 crore suit against Zee.
  • Nikon halts D600 camera sales in China after consumer TV show alleged flaws.
Source: Economic Times

Tuesday, 18 March 2014

NEWS WRAP - MARCH 18, 2014

  • Tech Mahindra in talks for offering IT services in Saudi Arabia.
  • Apple likely to cut iPhone 5C price, reduce storage to 8GB.
  • Hinduja brothers among Britain's top 3 richest families.
  • Singapore University confers honorary degree on Ratan Tata.
Source: Economic Times

LAW LEXICON - The Law Dictionary

  • Res sub judice: Matter under consideration
  • Fatum: Beyond human foresight
  • Pro bono: Done for the public good without compensation
  • Ad referendum: For further consideration
  • A fortiori: Much more, much stronger reason

Saturday, 15 March 2014

NEWS WRAP - MARCH 15, 2014

  • Auto companies like Audi India, Mercedes Benz and others hire race and rally drivers as trainers to enhance brand value.
  • ONGC, OIL buy 10% government stake in Indian Oil Corporation.
  • As SpiceJet, IndiGo pull down air fares, uptick seen in travel bookings this summer.
  • Home Ministry's clearances still pending for India heads of Telenor, Sistema, Vodafone.
  • Sanjay Lalbhai-controlled Arvind acquires 49% stake in Calvin Klein India for Rs. 100 crore.
Source: Economic Times

Friday, 14 March 2014

NEWS WRAP - MARCH 14, 2014

  • Gautam Thapar puts Crompton Greaves, the biggest unit of Avantha Powerhouse up for sale.
  • SpiceJet raises Rs. 133.3 crore from promoters over allotment of 6.4 crore warrants.
  • Dr Reddy's lab recalls 58,656 bottles of heartburn drug, Lansoprazole in US.
  • US FDA bans imports from Sun Pharma's Gujarat facility.
  • L&T wins Rs, 3,655 crore mega road project in Qatar.
Source: Economic Times

Thursday, 13 March 2014

SAHARA CASE: AN EYE OPENER

In March 2008, two Sahara Group firms - Sahara Housing Investment Corporation and Sahara India Real Estate Corporation passed a board resolution under the Companies Act to raise funds for acquisition of land, developing townships, residential apartment and shopping complexes etc, through unsecured optionally fully convertible debentures (OFCDs) by way of private placement.

The two companies of the Sahara Group had mobilised a large sum of money (more than 24,000 crore) from over 3 crore investors without complying with SEBI's regulatory framework for public issues. SEBI came to know about such fund raised through an IPO draft red herring prospectus filed by Sahara Prime City Limited with SEBI where it was disclosed that the two firms had issued OFCDs.

SEBI's contention had been that, firstly the entity should be profitable, should have an adequate net worth, and the funds to be raised should be limited to a multiple of the net worth, to ensure that the issuer has the financial strength for prudent use of public money. There have been many emotional pitches by Sahara Group, which claimed to have a net worth of Rs. 68,000 crore and assets worth over Rs. 1.5 lakh crore. One of the Sahara firms was making a loss and the net worth of the other was Rs. 11 lakh. Clearly, neither company had the requisite financial standing to raise thousands of crores of rupees from the public.

Secondly, it was not a private placement as the number of investors was above 50 and that the securities should have been listed. Also, the prospectus floated for the amounts mobilised were scrutinised by SEBI and found to be wanting in terms of adequacy and accuracy of disclosures.

Lastly, the securities market enables the promoters of businesses to raise capital from the public without directly involving them in the business, when the capital needed is spliced into securities of small denominations in which several investor protection in such cases rests on the safeguards created by regulators. SEBI's regulatory framework requires clear accounting of funds, its audit and supervision of end use. It also requires setting up a debenture trustee mechanism if the security represents a borrowing. The Saharas had none of these safeguards.

The Supreme Court ordered and asked the two firms to deposit the money in three instalments beginning with an immediate payment of Rs. 5,120 crore. While the group paid the first instalment, it failed to meet the deadline for other two payments. SEBI began an exercise for refund to genuine investors from the money deposited in the first instalment by the Saharas. However, not much headway appears to have been made in the process as SEBI has detected instances of multiple accounts, on which it has sought a clarity from the Supreme Court.

The high - profile saga saw the arrest of flamboyant Sahara Group Chief Subrata Roy, after the Supreme Court ordered his arrest over delays in repaying thousands of crores of rupees illegally collected from small investors. Roy's jailing is a landmark case, showing that even the most powerful fraudsters will eventually be brought to book.

NEWS WRAP - MARCH 13, 2014

  • SpiceJet signs a deal for 42 Boeing 737 MAX planes worth $4.4 billion.
  • Dubai, Sharjah, Abu Dhabi to stage 16 IPL 7 matches next month.
  • General Insurance Corporation stares at 75 crore claim for missing Malaysian flight.
Source: Economic Times

Wednesday, 12 March 2014

NEWS WRAP - MARCH 12, 2014

  • Quikr raises Rs. 550 crore from group of investors led by Swedish investment company Kinnevik.
  • Jabong teams up with fashion designer Rohit Bal to launch exclusive collection; also to launch 4 in-house brands.
  • Day 1: NHB closes bond issue after over-subscription of 2.08 times.
  • Aishwarya Rai Bachchan and tennis ace Martina Navratilova speak over their achievements to AV Birla group employees.
Source: Economic Times

Tuesday, 11 March 2014

NEWS WRAP - MARCH 11, 2014


  • Darshan Patel, the co-promoter of the erstwhile Paras Pharma, to invest Rs. 150 crore in his new venture Vini Foods over the next two years.
  • Malaysian Air Shares Decline to Record Low After Flight Vanishes.
  • Central Government sees 200 low-cost Airports in two decades to expand connectivity to Tier II and III cities.
  • FDI in Services Sector drops 60% to $1.59 billion during April-October  2013.
  • Trent Hypermarket waits for Joint Venture Nod with TESCO: Noel Tata.
  • By March 10, UIDAI had generated and dispatched unique Aadhaar numbers to 60 crore people.
Source: Economic Times

Saturday, 8 March 2014

NEWS WRAP - MARCH 8, 2014

  • Instagram signs deal, pegged at $100 million, with major ad agency.
  • Former Apple CEO John Sculley to launch smartphone in India; to sell handsets at Rs. 12,000 and less.
  • Ranbaxy Laboratories recalls over 64,000 bottles of generic Lipitor in US.
  • New bank licences in a few weeks: RBI Governor Raghuram Rajan
  • Samsung, Accenture team up for secure mobile platform, apps.
Source: Economic Times

Friday, 7 March 2014

NEWS WRAP - MARCH 7, 2014

  • Bharti Group in talks with with Carrefour, Aeon to form Retail Joint Venture.
  • CIPLA under Income Tax Authorities' scanner for alleged Tax Evasion.
  • BSE SME Exchange hits half-century, taking its Market Capitalization to over Rs. 3000 crore.
  • Mafatlal Industries to invest Rs. 200 crore more in Gujarat Units.
  • Private Gear Maker Alstom bags Rs. 85 million euro Contract from BHEL.
  • Vedanta appoints ex-Rio Tinto chief Tom Albanese as next CEO.
  • Birla Group seeks partner for Health Insurance foray.
  • Google and Walt Disney's Foreign Investment proposals  have received the go-ahead by FIPB.
Source: Economic Times

Thursday, 6 March 2014

FII/QFI INVESTMENTS IN COMMERCIAL PAPERS

ISSUING AUTHORITY : SECURITIES AND EXCHANGE BOARD OF INDIA
DATE OF ISSUE : 14/02/2014
EFFECTIVE DATE : IMMEDIATE EFFECT
CIRCULAR NO. CIR/IMD/FIIC/4/2014


The limit for investment by SEBI registered FIIs, QFIs and long term Investors in Corporate Debt stood at USD 51 billion. Out of the above limit of USD 51 billion, a sub-limit of USD 3.5 billion was available for investment by eligible investors in Commercial Paper (CP). 
Thus, to encourage long term investors, it has been decided, to reduce, with immediate effect, the existing Commercial Paper sub-limit of USD 3.5 billion by USD 1.5 billion to USD 2 billion. The balance USD 1.5 billion shall, however, continue to be part of the total Corporate debt limit of USD 51 billion and will be available to eligible foreign investors for investment in Corporate debt.
For detailed Circular, please find the link below:

NEWS WRAP - MARCH 6, 2014

  • Anil Ambani-led Reliance Infrastructure has filed a Rs 100-crore defamation suit against the Aam Aadmi Party in the Bombay High Court.
  • Bharti Airtel, Kenya’s telco Safaricom bid for licences and 2.7 million customers of Yumobile.
  • Vodafone gets nod to merge its India units; riders attached could stymie move, say observers.
Source: Economic Times

Wednesday, 5 March 2014

NEWS WRAP - MARCH 5, 2014

  • New office bearers selected for CII Central Gujarat Zonal Council for the year 2014-15.
  • Paarth Infrabuild will invest Rs. 650 crore over next four years in Green Building in Lucknow.
  • Walmart to expand in e-retailing in India, planning marketplace model akin to Amazon, eBay.
  • GMR Group forays into Railway Sector, bags first order worth Rs. 267 Crores.
  • Novartis may be fined for submitting 'fake' document to Drug Controller General of India.
  • Tata Communications may sell Neotel in South Africa to Vodacom, Stock gains 4%.
Source: Economic Times

Tuesday, 4 March 2014

NEWS WRAP - MARCH 4, 2014

  • RBI grants additional 9 months to swap notes printed before 2005.
  • Stock Broker Ketan Parekh sentenced to two years rigorous imprisonment by CBI Court.
  • Hindustan Unilever becomes the most preferred employer for B-school graduates once again.
  • Lenovo to launch Ashton Kutcher-designed smartphones this year.
  • Sweet! Bio-batteries that run on sugar to power smartphones for 10 days.
  • Indian Banks are increasingly seeking Insurance Cover against fraudulent online transactions.
Source: Economic Times

Monday, 3 March 2014

THE CORPORATE SOCIAL RESPONSIBILITY (POLICY) RULES, 2014

Ministry of Corporate Affairs, Government of India on 27th February, 2014 announced the Corporate Social Responsibility (Policy) Rules 2014 under Section 135 of the new Companies Act 2013. Section 135 pertains to spending for the purpose of Corporate Social Responsibility by companies.

A FORMAL FRAMEWORK FOR SOCIAL SPENDING BY CORPORATES

Effective from - April 1, 2014

How Much?

2% of Average Profit of previous three years.

(Profits from overseas branches and dividends from other Companies not included in Net Profit for calculation).

Who?
  • Companies with Net Worth of Rs. 500 crore or Turnover of over Rs. 1,000 crore or Net Profit of over Rs. 5 crore.
  • Foreign Companies registered in India.
What all? 

There are many new additions when compared to the CSR Activities that enlists in the Schedule VI of the Act, which are as follows:
  • Livelihood
  • Enhancement and rural development projects
  • Measures for benefit of armed forces, veterans, war-widows and their dependents.
  • Working towards protection of National Heritage, Art & Culture.
  • Reducing inequalities faced by socially & economically backwards.
  • Protection of Flora & Fauna, animal welfare, agro-forestry, etc.
Where?

CSR Activities will have to be within India.

How?

Company's Board will decide in accordance with its CSR Policy and the decision of its CSR Committee.

Do's & Don'ts
  • Surplus from CSR cannot be included in Profit.
  • CSR work can be done through a registered Trust or Society or a separate Company.
  • Companies can collaborate with other Companies but will have to report separately.
One major addition in Section 135 is provision of upto 5% of the CSR budget for training and capacity building of employees and implementing partners for CSR.

Composition of CSR Committee


Every Company including its Holding or Subsidiary, and a Foreign Company having its branch office or project office in India which fulfills the quoted applicability criteria.



Who shall not be required to constitute the CSR Committee?

Every Company which ceases to be a Company quoted under the applicability criteria for three consecutive financial years.

CSR Committees


(i) An unlisted Public Company or a Private Company covered which is not required to appoint an Independent Director - Shall have its CSR Committee without such Director.

(ii) A Private Company - Having only two directors on its Board  shall constitute its CSR Committee with two such Directors.

(iii) With respect to Foreign Company - Shall comprise of at least two Persons* of which one person shall be nominated by the Foreign Company.

*Person under section 380(1)(d) of the Companies Act, 2013 means - The name and address or the names and addresses of one or more persons resident in India authorised to accept on behalf of the company service of process and any notices or other documents required to be served on the company.

CSR Reporting

An emphasis is given to disclose the CSR expenditure. The Board will have to include an Annual Report on CSR from 2014-2015 on wards.

In case of Foreign Company - Balance Sheet shall contain an Annexure regarding report on CSR.

Display of CSR activities on its website

Following the Board's Approval, the CSR Policy will have to be disclosed on the Company's website.

NEWS WRAP - MARCH 3, 2014

  • Telecom Commission to soon clear Rs 7,103-crore project for mobile connectivity in border areas.
  • Mark Zuckerberg's fortune grows by a massive $15 billion in less than 2 years as Facebook shares soar.
  • Being Human: Salman Khan’s apparel brand raked up sales of Rs 179 crore in its first year.
  • Department of Industrial Policy & Promotion (DIPP) has proposed 100% FDI through Automatic Route in the cash-starved Railway Sector.

Source: Economic Times

Saturday, 1 March 2014

NEWS WRAP - MARCH 1, 2014

  • US advocacy group slams move to blacklist India as a "priority foreign country" in trade feud.
  • Facebook, Skype challenge telcos' free cash flows: Fitch
  • Government to take over KG-D6 block if Reliance Industries shuts down production.
  • Vodafone conciliation decision after transfer pricing row ends.
Source: Economic Times