NEWS WRAP - AUGUST 07, 2013

• Former IMF Chief Economist 'Raghuram Rajan' becomes new RBI Governor.

• S P Jain Institute bags First Place in ISB-Ivey Global Case Study Competition conducted by Indian School of Business (ISB).

• Cadila Pharmaceuticals looking to set up $150 Million manufacturing unit in Astrakhan, Russia.

• Sanjeev Kapoor promoted - Wonderchef Home Appliances targets 3 fold jump in turnover to Rs. 160 crore by 2017.

• Vodafone, ICICI launches Mobile Money Transfer Service 'M-Pesa' in Bihar.

• Investors pull out over Rs. 48,000 crore from Mutual Fund Schemes in June, 2013.

• Subrata Roy not liable for refunding Rs. 24,000: Sahara to Supreme Court.

• Securities Appellate Tribunal quashes SEBI's order against NSDL in IPO Scam.

• CBEC plans to offer relief to battered Auto Industry.

• FIPB clears 12 FDI proposals worth Rs. 343 crore; decision on US based Mylan Inc's proposal to acquire Indian Pharma Company on hold.

• Government plans Incentive Fund for Healthcare with corpus of over Rs. 10,000 crore to provide additional Assistance to State Governments.

• 48% of all Infra Projects costing over Rs. 150 crore delayed: Government.

• Pharma Department to meet drugmakers today to sort out pricing problems.

• Mumbai's mega Infra Projects hit roadblock as most of the Projects are abandoned or derailed.

Source: Economic Times

LAW LEXICON - The Law Dictionary

• Quo Warranto: A writ or legal action requiring a person to show by what warrant an office or franchise is held.

• Modus Operandi: A particular way or method of doing something.

• In posse: In a state of possibility.

• Ex turpi causa non oritur  action: No action arises from an illegal or immoral cause.

• Sub Judice: Under judicial consideration.

NEWS WRAP - AUGUST 06, 2013

• SEBI looking closely at Holcim-Ambuja Cements deal; feels ACC-Ambuja was better option.

• Small Investors to get priority in NSEL payouts: FMC.

• Sameer Suneja, former India head of Perfetti to become Global CEO of World's third largest confectionery group; first non-Italian to head Italian Sugar Confectionery.

• Aviva likely to exit Indian Life Insurance JV, third Foreign Company to quit India since 2012.

• RBI may soon issue final guidelines on Subsidarization of Foreign Banks.

• RBI pulls Dhanlaxmi Bank for rise in bad loans, appoints Manoranjan Dash as Director on Bank's Board.

• Amid economic slowdown over supply, Hotel Occupancy dips by 10-15%.

• Mumbai based Real Estate Developer Orbit Corporation defaults on Rs. 96 crore Loans.

• Bajaj Auto to shift 50% production from Pune if strike does not end in a week: Rajiv Bajaj.

• Government plans to test all imported telecom devices for bugs and malicious software from October 1, 2013.

• 154 Companies including Saradha Group and Rose Valley Group come under scanner for Financial Fraud.

Source: Economic Times

NEWS WRAP - AUGUST 05, 2013

• NSEL suggests phased payments to end crisis.

• British Telecom major Vodafone not in favour of holding its Rs. 20,000 crore withholding tax dispute under Indian Jurisdiction; seeks Neutral Authority like UNCITRAL.

• Private Refiners made Rs. 10,000 crore on flawed pricing of Petrol and Diesel: CAG.

• Tata Motors cuts Pantnagar Unit Workforce by 21% in drive to cut costs.

• After Akash, Government planning sub-$100 Smartphones to push Broadband Services.

• Quick Heal plans Initial Public Offer, First Indian Anti-Virus Company to go Public.

• Investors in tax havens may have to share Information by signing Share Banking Agreement with CBDT.

• Union Bank to raise Rs. 3,000 crore Equity to meet Basel-III Norms after 2015.

• Mutual Funds withdraw Rs. 2,100 crore from Stocks in July.

• Market Capitalization of top 6 Companies dip by Rs. 92,649 crore; ITC, ONGC hit hard.

• Reliance Infrastructure to digitise Customer Services in 71 Bihar towns to cut losses of Bihar State Electricity Board (BSEB).

• Relaxation of Port Tariff Rules vide issue of New Tariff Guidelines 2013, to create new and different projects within major ports.

Source: Economic Times

NEWS WRAP - AUGUST 03, 2013

• FTIL & MCX Stocks continue to be hammered; Spot Trading to come to Forward Markets Commission (FMC) net post-NSEL.

• Rupee Depreciation: Global Funds like Fidelity, HSBC, JP Morgan, Franklin sell Indian Equities worth $1.4 billion.

• BCCI to appeal High Court's Order; Srinivasan made to wait.

• Infosys founder Nandan Nilekani's wife Rohini sells 5.77 lakh Infosys stocks worth Rs. 163.51 crore, plans to use money for philanthropic activities.

• Telecom Department issues final Unified License Norms, telecos can enter into Roaming Pacts.

• GlaxoSmithKline loses Cancer Drug Patent in India for its Anti-Cancer Drug 'Tykerb'.

• TRAI Chief Rahul Khullar says 3G roaming pacts must be allowed.

• ISRO, Tata Motors develop India's first Hydrogen Fuel cell Bus.

• Google  enters Smart Phone Market with 'Moto X'.

• Reliance Industries Limited denies CAG charges, says it cleared all dues to MMRDA for its upcoming project BKC.

• Single Brand Retailers like Mark's & Spencers allowed to sell sub-brands from stores.

• SEBI imposes Rs. 25 lakhs penalty on Keynote Commodities for Fraudulent Trade Practices in IPO of Emmbi Polyarns in 2010.

• Power Grid Corporation to Increase Capital expenditure by 10-15%; to sell 15% through Offer for sale.

• BSE halves Circuit limit for Multi Commodity Exchange (MCX)  Shares with effect from August 5, 2013.

• Kerela State with best Health Indicators, has the lowest density of Doctors.

• TVS Motor Company plans to set up manufacturing unit in Uganda.

Source: Economic Times

PORT PERFORMANCE SIGNALS SHIFT IN CARGO TRAFFIC

As reported by ICRA, Cargo traffic at India's 12 major ports which accounts for 58% of India's total seaborne cargo showed a decline of 2.6% in 2012-13 compared to 1.7% decrease in 2011-12.

CAUSES OF DECLINE IN CARGO TRAFFIC

At a time the cargo traffic at major ports are conveying sluggish signals, non-major ports in the country are reported to be doing better and are outpacing major ports in cargo traffic growth. 

Non-major ports handled nearly 42% of the maritime freight traffic of the country during 2012-13.

  

According to ICRA, the cargo growth outlook for the Indian Port Sector continues to be strong over the medium to long term driven by the domestic requirements of coal, power, crude oil, domestic petroleum requirements and containers given the cost and logistical advantages associated with containerization.

The growth in quantity cargo handled at non-major ports has been primarily driven by growth in non-major ports in Gujarat which account for about three-fourth share in cargo handled at non-major ports.

 

TRAFFIC HANDLED BY NON MAJOR PORTS

NEWS WRAP - AUGUST 2, 2013

• Payment crisis at National Spot Exchange: Bourse halts trade as Rs. 5500 crore trading positions outstanding.

• GOAL, Avarsala and Godrej & Boyce developing parts worth Rs. 700 crore for world's largest telescope.

• L&T explores Business trust model for its Infrastructure development arm IDPL's road Portfolio; to raise Rs. 2500 crore.

• Amrit Kaur: Aged 80, India's newest billionaire, won father's wealth worth Rs. 2000 crore.

• Gold Import Curbs causes Investors switch trading to Silver.

• Airtel ropes in Bharti Walmart's suspended CFO, Pankaj Madan.

• Sintex Industires scrip down 92%, Torrent Power, Adani Power, GMDC touch multi year low.

• Crocs sees big opportunity in India, to bring in more of its 350 odd designs from Global Portfolio.

• Louis Vuitton, Hermes, Gucci top three global luxury brands 2013.

• Fiat meets creative Agencies for brand Jeep; plans to launch its SUVs Grand Cherokee and Wrangler in India by the year end.

• Coke Officials to travel Economy Class; a Cost cutting drive of Beverage Maker.

• Fashion retailer Henes & Mauritz launched e-commerce operation in U.S. for e-shoppers.

• SEBI begins probe into FTIL, MCX stock crash for violations in Insider and Fraudulent Trading norms.

• Ryanair's cheap tricks: Passengers may have to pay for cabin baggage.

• Lucrative real-estate Projects to replace petrol pumps in Big Cities.

• Mumbai's Sewri TB Hospital, Asia's largest of its kind, runs out of Drug resistant Medicine.

Source: Economic Times

THE JET-ETIHAD ACQUISITION DEAL, 2013

EMERSION OF THE DEAL:

• Indian Government allowed Foreign Airlines to own up to 49% Stake in Indian Carriers in September 2012.
• On April 22, 2013 Cabinet approved 40,000 Bilateral Seat Rights per week to Abu Dhabi.
• On April 24, 2013 Etihad Airways announced to purchase 24% stake amounting to Rs. 2058 crore in Jet Airways.
• On April 24, 2013 Bilateral Agreement was signed between India and Abu Dhabi followed by Jet-Etihad Deal.

 CONCERNS RAISED BY SEBI AND DIPP:

On July 22, 2013  SEBI and DIPP raised concerns on Effective Control.

SEBI's concerns over Commercial Cooperation Agreement (CCA):

1. CCA will give Etihad Airways the upper hand in Operational Matters.
2. Etihad gets right to source candidates for Senior Management positions.
3. Plan to shift Network and Revenue Management functions and Consolidate Sales Office to Abu Dhabi.
4. Etihad would lead role in Negotiating with Suppliers.
5. All major decisions to be approved by Etihad which would give Etihad Airwyas substantial control over Jet Airways. Hence, SEBI proposed to amend Corporate Governance Code Clauses for passage of Board Resolutions by Simple Majority.
6. The nominations Committee should not have exclusive powers to recommend appointment or removal of all Independent Directors and the CEO as these powers were against the Companies Act, 1956.

DIPP's concerns over Shareholder's Agrement:

1. Effective Control and Ownership lie with Etihad and not Jet Airways.
2. If Naresh Goyal's stake is included, the 49% FDI limit is breached.
3. Under the FDI Norms, Voting and Nomination Rights should stay with Jet Airways.

Jet Airways had submitted a modified Shareholder Agreement on July 25, 2013 to address all concerns raised by various ministries and Stock Market watchdog SEBI.

On July 29, 2013 the deal was cleared with conditions that include:

1. Jet Airways will have to seek prior approval from the Government for making any changes in the Shareholder's Agreement.
2. Articles of Associationshould override Shareholders Agreement.
3. Etihad to get 2 seats on 12 member Board.
4. All Independent Directors should be Indian.
5. Jet airways will appoint 4 Directors of which 1 can be Foreigner.
6. The 9% stake owned by Tailwinds, holding company in Jet will have to be directly owned by Jet Chairman - Naresh Goyal.
7. All disputes relating to Shareholder Pact to be settled under Indian Law.
8. Any Arbitration in respect of other issues can be in London.

The deal is seen as a positive for the Aviation Sector since most of the Indian Carriers are bleeding due to high debt and surging fuel costs.

MADRID PROTOCOL BECOMES EFFECTIVE IN INDIA

Making a significant progress in the area of Trademark Law, on April 8, 2013 India became the 90th member of Madrid Protocol which is effective in India from July 8, 2013 as per Information Notice No. 15/2013.

WHAT IS MADRID PROTOCOL

Madrid Protocol is a Treaty that provides for the International Registration of Trademarks by filing a Single Application in one language for ensuring registration in several countries. The Madrid Protocol, along with the International Treaty called the Madrid Agreement governs the Madrid System for the International Registration of Trademarks. The system is administered by the International Bureau of the World Intellectual Property Organization (WIPO), which maintains the International Register of Trademarks.

AMENDMENT OF TRADEMARK LAW (EFFECTIVE FROM JULY 8, 2013)

The Trade Marks (Amendment) Rules, 2013 introduces Chapter III A to the existing Trade Marks Rules, 2002 relating to 'Special Provisions for Protection of Trademarks through the International Registration under the Madrid Protocol'.

This comes as a cost effective step for any natural person or legal entity which has a real and effective industrial or commercial establishment in, or is domiciled in, or is a national of India and has got a registration of Trademark in India, as this system will allow an applicant to make an Online Application for the International Registration of Trademark under the Madrid Protocol.

This system is advantageous to an applicant as now an International Registration may be obtained by simply filing a single application with the International Bureau of the WIPO in a single language and on payment of single set of fees.

These advantages also exist for renewals and for recording of transactions.

Thus by making an Online Application, an Indian Applicant can make an application for registration of Trademark in as many as 89 countries apart from India and hence it implies that the Trademark owners can get their trademarks protected in the Indian jurisdiction as well as in the jurisdiction of the 89 other member countries through a single application.

The list of Contracting Parties to the Protocol can be found at http://www.wipo.int/treaties/en/ShowResults.jsp?lang=en&treaty_id=8

NEWS WRAP - JULY 8, 2013

• FM confident of financing of Current Account Deficit this fiscal without drawing down Forex Reserves.

• Petrol price hiked by 70 paise, Diesel by 50 per litre.

• Rate of Interest Subsidy for exporters hiked from 2% to 3%.

• Founder Shiv Nadar's daughter Roshni joins HCL Tech Board as a Non-Executive Director.

• Gujarat Housing Board invites applications for Affordable Housing Schemes in Vadodara, Surat, Rajkot; applicants to get subsidy of up to Rs. 2 Lacs.

• Chopper Deal : India receives Fresh Papers from Italy for Rs. 3600 crore VVIP Helicopter Deal.

• Rail Coach maker Bombardier Transportation initiates legal inquiry against workers of its Savli Facility.

• Zee Entertainment to launch a set of New Channels under brand '&', '& Pictures' to debut within a month.

• CSR not just a Photo-op anymore, its driving Social Transformation: Debate at Inter Brand - The Economic Times 'Best Indian Brands'.

• SEBI imposes a consolidated penalty of Rs. 1 crore on Golden Tobacco Limited for violation of Listing Agreement and other regulations.

• Mundra Port overtakes Kandla Port to emerge as India's largest port by tonnage.

• Indians among top Foreign Investors in Dubai Real Estate Market.

• Spykar promoters in talks with private equity firm - India Value Fund Advisors (IVFA) to sell 15% stake.

• ONGC Videsh's operations in Russia may have to pay for Sistema's Indian woes.

Source: Economic Times