About Me
- VIJAY POPAT
- KOLKATA, WEST BENGAL, India
- I have completed my MBA from IIPM KOLKATA, with triple specialization :- 1) FINANCE 2) MARKETING 3) INTERNATIONAL MARKETING. I am also pursuing C.A. I believe in making new friends, networking with every one and taking all challenges positively. Have done my summer internship from Max New York Life. Have worked in HDFC - LIFE as SALES DEVELOPMENT MANAGER ( SDM ) for 3.5 months and now I am working in HSBC as FUND ADMINISTRATOR.
Saturday, February 27, 2010
Retailindustryanalysis 091210114006 Phpapp01
THIS WAS MY PORTFOLIO MANAGEMENT PROJECT ON INDUSTRY ANALYSIS OF RETAIL MARKET IN IIPM KOLKATA. POWERED BY www.vijaypopat.blogspot.com.
Friday, February 26, 2010
Ratio Analysis
Ratio Analysis http://slidesha.re/culZrm, all formulas required for ratio analysis, powered by www.vijaypopat.blogspot.com. THIS WAS ONE OF MY FINANCIAL MANAGEMENT PROJECT IN IIPM KOLKATA.
Ratio Analysis
View more presentations from vpvijayrocks.
UNION BUDGET 2010
FM " Mr. Pranab Mukherjee" revises tax slabs. The complete review of budget with different reactions.
The finance minister proposed the following slabs for individual tax payers:
There will be no tax for income upto Rs 1.6 lakh. This was the same earlier.
For income between 1.6 lakh - 5 lakh, the tax liability will be 10%. The older slab was 1.6 - 3 lakh.
For income between 5 lakh - 8 lakh, the tax liability will be 20%. Earlier 20% tax was deducted on Rs 3-5 lakh income.
Individuals with income of above Rs 8 lakh will have tax liability of 30%. Earlier 30% was deducted on income of Rs 5 lakh and above.
The government would allow a deduction of up to Rs 20,000 for investments in long-term infrastructure bonds. The deduction would be in addition to Rs 100,000 allowed under Section 80C of India's Income Tax Act.
"The proposal to reduce the tax slab will benefit 60 percent of all tax payers," he said and added that he wished to hike the minimum alternate tax (MAT) to 18 percent of book profits from the present 15 percent.
Mukherjee said 46 percent of the plan allocation will be set aside for infrastructure, while hiking the outlays for rural and urban development, as also for education and healthcare. He also promised to implement the direct tax code from April next year, assured a simplified foreign investment policy soon.
At the same time, he budgeted a lower fiscal deficit of 5.5 percent of gross domestic product for the next fiscal, against the budget estimates of 6.8 percent for this fiscal, and promised to lower it further to 4.8 percent and 4.1 percent over the next two years.
The finance minister said three challenges he had listed last year remained today -- those of quickly reverting to a high growth path of 9 percent and cross over to double-digit expansion; making growth more inclusive and developing infrastructure; and strengthening food security.
"We hope to breach the 10 percent growth mark in not too distant future," he said, adding that the government will also review the fiscal stimuli to make the country's growth more broad based.
He also said Rs 35,000 crore ($7 billion) was raised by the government by way of divesting stake in public sector enterprises and that more will be accrue to the exchequer during the upcoming fiscal. The minister also promised more banking licenses for the private sector.
Mukherjee said in 2009, when he presented the interim budget in February and the regular budget in July, the Indian economy was facing grave uncertainties, the economy had slowed down and business sentiment was low.
This year, however, the budget has come against the backdrop of the Economic Survey for 2009-10, saying India's growth can go up to double digit levels in four years, with the country emerging as the fastest growing economy in the world.
The market reaction, as the finance minister read his speech was positive, with the sensitive index (Sensex) of the Bombay Stock Exchange (BSE) ruling at 16,360.90 points, against the previous day's close at 16,254.2 points, with a gain of 106.7 points, or 0.65 percent.
Those in the packed house presided over by Speaker Meira Kumar, included Prime Minister Manmohan Singh, United Progressive Alliance (UPA) chairperson Sonia Gandhi and Leader of Opposition Sushma Swaraj.
This was Mukherjee's fourth budget of his career as finance minister and the second for the United Progressive Alliance (UPA) government in its second straight term after being voted back to office in May last year.
Although the budget speech also contained some policy pronouncements and other steps directed at reforms, it is basically an annual statement of accounts for the upcoming fiscal in terms of receipts and expenditure, along with direct and indirect tax proposals.
The budget was presented after a quick meeting of the federal cabinet inside the parliament house presided over by the prime minister for a customary approval for the proposals.
VIJAY POPAT
The finance minister proposed the following slabs for individual tax payers:
There will be no tax for income upto Rs 1.6 lakh. This was the same earlier.
For income between 1.6 lakh - 5 lakh, the tax liability will be 10%. The older slab was 1.6 - 3 lakh.
For income between 5 lakh - 8 lakh, the tax liability will be 20%. Earlier 20% tax was deducted on Rs 3-5 lakh income.
Individuals with income of above Rs 8 lakh will have tax liability of 30%. Earlier 30% was deducted on income of Rs 5 lakh and above.
The government would allow a deduction of up to Rs 20,000 for investments in long-term infrastructure bonds. The deduction would be in addition to Rs 100,000 allowed under Section 80C of India's Income Tax Act.
"The proposal to reduce the tax slab will benefit 60 percent of all tax payers," he said and added that he wished to hike the minimum alternate tax (MAT) to 18 percent of book profits from the present 15 percent.
Mukherjee said 46 percent of the plan allocation will be set aside for infrastructure, while hiking the outlays for rural and urban development, as also for education and healthcare. He also promised to implement the direct tax code from April next year, assured a simplified foreign investment policy soon.
At the same time, he budgeted a lower fiscal deficit of 5.5 percent of gross domestic product for the next fiscal, against the budget estimates of 6.8 percent for this fiscal, and promised to lower it further to 4.8 percent and 4.1 percent over the next two years.
The finance minister said three challenges he had listed last year remained today -- those of quickly reverting to a high growth path of 9 percent and cross over to double-digit expansion; making growth more inclusive and developing infrastructure; and strengthening food security.
"We hope to breach the 10 percent growth mark in not too distant future," he said, adding that the government will also review the fiscal stimuli to make the country's growth more broad based.
He also said Rs 35,000 crore ($7 billion) was raised by the government by way of divesting stake in public sector enterprises and that more will be accrue to the exchequer during the upcoming fiscal. The minister also promised more banking licenses for the private sector.
Mukherjee said in 2009, when he presented the interim budget in February and the regular budget in July, the Indian economy was facing grave uncertainties, the economy had slowed down and business sentiment was low.
This year, however, the budget has come against the backdrop of the Economic Survey for 2009-10, saying India's growth can go up to double digit levels in four years, with the country emerging as the fastest growing economy in the world.
The market reaction, as the finance minister read his speech was positive, with the sensitive index (Sensex) of the Bombay Stock Exchange (BSE) ruling at 16,360.90 points, against the previous day's close at 16,254.2 points, with a gain of 106.7 points, or 0.65 percent.
Those in the packed house presided over by Speaker Meira Kumar, included Prime Minister Manmohan Singh, United Progressive Alliance (UPA) chairperson Sonia Gandhi and Leader of Opposition Sushma Swaraj.
This was Mukherjee's fourth budget of his career as finance minister and the second for the United Progressive Alliance (UPA) government in its second straight term after being voted back to office in May last year.
Although the budget speech also contained some policy pronouncements and other steps directed at reforms, it is basically an annual statement of accounts for the upcoming fiscal in terms of receipts and expenditure, along with direct and indirect tax proposals.
The budget was presented after a quick meeting of the federal cabinet inside the parliament house presided over by the prime minister for a customary approval for the proposals.
VIJAY POPAT
Indian companies laud FM for good Budget; regrets MAT hike
Reactions from Bharti, Infosys, Kotak Mahindra, ASSOCHAM, PwC, Samsung India, Religare, Fortis, Sharekhan Ltd, CLP India and Firstsource Solutions
New Delhi: Indian industry on Friday welcomed the Union Budget for 2010-11 saying it was a balanced approach though it expressed disappointment over the hike in minimum alternate tax (MAT) from 15% to 18%.
The captains of the industry lauded the concessions given to individual and corporate tax payers, saying Mukherjee had done a “good” job.
Loading video...
“The Finance Minister has done a good in balancing job... He has been able to contain the fiscal deficit at 6.9%, which is very good,” said Harshpati Singhania, President of apex chamber Ficci.
“However, there is a big surprise and disappointment on MAT. Decrease in surcharge would be eaten by increase in the MAT rate,” Singhania added.
CII President Venu Srinivasan said: “It is a very balanced and responsible budget. The growth will continue with this Budget. The changes in Income Tax slabs are a welcome step.” He also complimented the Finance Minister for calibrated roll back of stimulus measures, which is how the industry had wanted it.
“The only dark spot is increase in MAT.”
Loading video...
Bharti Enterprises Vice Chairman Rajan Mittal and president elect FICCI said, “We would have been much happier if the MAT have not been increased. While reduction on surcharge is welcome, increase in MAT is a disappointment,” Mittal, however, said the Budget is growth oriented and “good part is that he has shown the road map for the implementation of GST (Goods and Services Tax).”
FIEO President A Sakthivel welcomed the extension of concessional export finance regime till 31 March 2011, but expressed disappointment on exclusion of some of the labour intensive sectors.
“Exclusion of textiles, leather, marine and gems and jewellery will add to the woes of these sectors as some are still showing decline while other exhibited growth on very low base,” Sakthivel said.
Infosys Human Resource director Mohandas Pai said hike in MAT will not impact large companies, though smaller IT companies will be hit. “The country has lost thousands of jobs in IT industry. So, it’s disappointing for IT industry.” Meanwhile, Infosys CEO Kris Gopalkrishanan said that the move will not impact the company.
Kotak Mahindra Bank vice chairman Uday Kotak said the Finance Minister had played a balancing act of trying to get all the concerned actors on board for the GST. “It will be credible if the GST could be brought in by April 2011.”
ASSOCHAM president Swati Piramal called the Budget pragmatic, positive and development oriented aimed at inclusive growth.
She said Mukherjee has sufficiently incentivised renewable energy, infrastructure, research and development and equipped these sectors with reasonably higher allocations. “Giving tax credits on R&D is a major welcome step, which will encourage innovation and reduce manufacturing cost.”
L&T Chief Financial Officer YM Deosthali said, “This is not a surprise Budget ... The thrust on infrastructure is continuing ... The only surprise was MAT ... as 15% was in any case a very high.”
Consultancy firm PwC managing director Deepak Kapoor said that the finance minister’s emphasis on reducing the combined debt-GDP ratio and fiscal deficit is a good sign of fiscal consolidation.
Samsung India MD R Zutshi said, “I would term the budget as a good budget since it seeks to make economic growth more inclusive.”
“The changes in tax slabs will put more money in the hands of the common man, which should spur the overall economic growth,” he said.
Religare and Fortis group chairman Malvinder Mohan Singh said that Mukherjee has focussed on growth and talked about bringing down deficit.
Gaurav Dua, head research, Sharekhan Ltd said, “the Budget addresses fiscal concerns with no apparent negatives. Finance minister has addressed the key issues of containing fiscal slippage and outlined a clear roadmap for the next three years. The net government borrowing program for 2010-11 is also well under control and allays fears of crowding out of bank credit for private sector. Tax proposals related to corporate and capital markets were benign and in line with expectation with no negative surprises. The thrust t on reforms and announcement like banking licenses for private sector non-banking companies were unexpected positive moves.”
Rajiv Ranjan Mishra, managin director of CLP India, said, “Overall, the budget is good news for the infrastructure sector with a welcome thrust on super-critical technology for large scale thermal power projects.”
“Building a balanced energy generation portfolio, with equitable allocation between thermal and renewable energy projects is now important for the government to focus on; the setting up of a National Clean Energy Fund and encouraging competitive bidding for coal blocks are the progressive proposals coming from the Union Budget 2010-11.”
“With the establishment of a regulatory authority, we hope to witness speedier execution of projects that are announced; for CLP India, it is clear that our continued emphasis on triple bottom line will remain - meeting environmental, social and economical objectives are integral to sustainable growth. At the same time, the increase in Minimum Alternate Tax rates is a negative for the establishment of new generation facilities. In a scenario of tariff-based bidding for thermal projects and fixed, regulated tariffs for renewable projects, increase in these taxes affect the economics of these projects negatively and have an adverse effect on investor sentiments”
Ananda Mukerji, MD & CEO, Firstsource Solutions, said “It’s a balanced and overall positive budget. Given fiscal constraints, the continued investment in infrastructure, education and health is a good sign. However 14 -16% growth in investment in historically hugely underinvested areas like primary education and healthcare is not going to be enough for sustained development in the long run and it would have been good to see bolder steps in this area. Commitment to a clear target of fiscal reduction and a roadmap of getting there is a laudable effort.”
“While the fine print will have to be examined the Government’s stated intention to ease the refund of service tax credits to BPO units is also good to hear.”
“A clear disappointment is the lack of extention of STPI benefits given the huge role mid-sized IT and BPO companies play in employment generation in the country. This clearly has the risk of reducing India’s attraction as a a global outsourcing destination. Another retrograde step is increase in MAT. Though for Firstsource specifically this has very little cashflow impact since part of our revenues in any case attract deduction at source.”
VIJAY POPAT
Reactions from Bharti, Infosys, Kotak Mahindra, ASSOCHAM, PwC, Samsung India, Religare, Fortis, Sharekhan Ltd, CLP India and Firstsource Solutions
New Delhi: Indian industry on Friday welcomed the Union Budget for 2010-11 saying it was a balanced approach though it expressed disappointment over the hike in minimum alternate tax (MAT) from 15% to 18%.
The captains of the industry lauded the concessions given to individual and corporate tax payers, saying Mukherjee had done a “good” job.
Loading video...
“The Finance Minister has done a good in balancing job... He has been able to contain the fiscal deficit at 6.9%, which is very good,” said Harshpati Singhania, President of apex chamber Ficci.
“However, there is a big surprise and disappointment on MAT. Decrease in surcharge would be eaten by increase in the MAT rate,” Singhania added.
CII President Venu Srinivasan said: “It is a very balanced and responsible budget. The growth will continue with this Budget. The changes in Income Tax slabs are a welcome step.” He also complimented the Finance Minister for calibrated roll back of stimulus measures, which is how the industry had wanted it.
“The only dark spot is increase in MAT.”
Loading video...
Bharti Enterprises Vice Chairman Rajan Mittal and president elect FICCI said, “We would have been much happier if the MAT have not been increased. While reduction on surcharge is welcome, increase in MAT is a disappointment,” Mittal, however, said the Budget is growth oriented and “good part is that he has shown the road map for the implementation of GST (Goods and Services Tax).”
FIEO President A Sakthivel welcomed the extension of concessional export finance regime till 31 March 2011, but expressed disappointment on exclusion of some of the labour intensive sectors.
“Exclusion of textiles, leather, marine and gems and jewellery will add to the woes of these sectors as some are still showing decline while other exhibited growth on very low base,” Sakthivel said.
Infosys Human Resource director Mohandas Pai said hike in MAT will not impact large companies, though smaller IT companies will be hit. “The country has lost thousands of jobs in IT industry. So, it’s disappointing for IT industry.” Meanwhile, Infosys CEO Kris Gopalkrishanan said that the move will not impact the company.
Kotak Mahindra Bank vice chairman Uday Kotak said the Finance Minister had played a balancing act of trying to get all the concerned actors on board for the GST. “It will be credible if the GST could be brought in by April 2011.”
ASSOCHAM president Swati Piramal called the Budget pragmatic, positive and development oriented aimed at inclusive growth.
She said Mukherjee has sufficiently incentivised renewable energy, infrastructure, research and development and equipped these sectors with reasonably higher allocations. “Giving tax credits on R&D is a major welcome step, which will encourage innovation and reduce manufacturing cost.”
L&T Chief Financial Officer YM Deosthali said, “This is not a surprise Budget ... The thrust on infrastructure is continuing ... The only surprise was MAT ... as 15% was in any case a very high.”
Consultancy firm PwC managing director Deepak Kapoor said that the finance minister’s emphasis on reducing the combined debt-GDP ratio and fiscal deficit is a good sign of fiscal consolidation.
Samsung India MD R Zutshi said, “I would term the budget as a good budget since it seeks to make economic growth more inclusive.”
“The changes in tax slabs will put more money in the hands of the common man, which should spur the overall economic growth,” he said.
Religare and Fortis group chairman Malvinder Mohan Singh said that Mukherjee has focussed on growth and talked about bringing down deficit.
Gaurav Dua, head research, Sharekhan Ltd said, “the Budget addresses fiscal concerns with no apparent negatives. Finance minister has addressed the key issues of containing fiscal slippage and outlined a clear roadmap for the next three years. The net government borrowing program for 2010-11 is also well under control and allays fears of crowding out of bank credit for private sector. Tax proposals related to corporate and capital markets were benign and in line with expectation with no negative surprises. The thrust t on reforms and announcement like banking licenses for private sector non-banking companies were unexpected positive moves.”
Rajiv Ranjan Mishra, managin director of CLP India, said, “Overall, the budget is good news for the infrastructure sector with a welcome thrust on super-critical technology for large scale thermal power projects.”
“Building a balanced energy generation portfolio, with equitable allocation between thermal and renewable energy projects is now important for the government to focus on; the setting up of a National Clean Energy Fund and encouraging competitive bidding for coal blocks are the progressive proposals coming from the Union Budget 2010-11.”
“With the establishment of a regulatory authority, we hope to witness speedier execution of projects that are announced; for CLP India, it is clear that our continued emphasis on triple bottom line will remain - meeting environmental, social and economical objectives are integral to sustainable growth. At the same time, the increase in Minimum Alternate Tax rates is a negative for the establishment of new generation facilities. In a scenario of tariff-based bidding for thermal projects and fixed, regulated tariffs for renewable projects, increase in these taxes affect the economics of these projects negatively and have an adverse effect on investor sentiments”
Ananda Mukerji, MD & CEO, Firstsource Solutions, said “It’s a balanced and overall positive budget. Given fiscal constraints, the continued investment in infrastructure, education and health is a good sign. However 14 -16% growth in investment in historically hugely underinvested areas like primary education and healthcare is not going to be enough for sustained development in the long run and it would have been good to see bolder steps in this area. Commitment to a clear target of fiscal reduction and a roadmap of getting there is a laudable effort.”
“While the fine print will have to be examined the Government’s stated intention to ease the refund of service tax credits to BPO units is also good to hear.”
“A clear disappointment is the lack of extention of STPI benefits given the huge role mid-sized IT and BPO companies play in employment generation in the country. This clearly has the risk of reducing India’s attraction as a a global outsourcing destination. Another retrograde step is increase in MAT. Though for Firstsource specifically this has very little cashflow impact since part of our revenues in any case attract deduction at source.”
VIJAY POPAT
Tuesday, February 23, 2010
Nirma
Check out this SlideShare Presentation: this was my marketing project on rebranding NIRMA in current fmcg segment. www.vijaypopat.blogspot.com
Nirma
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Nep
Check out this SlideShare Presentation: PRESENTATION ON NATIONAL ECONOMIC PLANNING, IIPM'S MOST IMPORTANT PRESENTATION. www.vijaypopat.blogspot.com
Nep
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Shree Hazarilal Cold Storage Private
Check out this SlideShare Presentation: THIS IS MY COMPANY LAW PRESENTATION IN IIPM KOLKATA. WE HAD TO INCORPORATE A NEW DUMMY COMPANY BY OURSELF AND STRUCTURE ITS ARTICLE OF ASSOCIATION, MEMORANDUM OF ASSOCIATION, ETC.
Shree Hazarilal Cold Storage Private
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Hsbc Corporate Banking , a complete overview
Check out this SlideShare Presentation: THIS WAS ONE OF MY EX-COM PRESENTATION IN IIPM KOLKATA. for more of such presentations, case studies, notes and updates do follow my blogs on www.vijaypopat.blogspot.com
Hsbc Corporate Banking
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Kindness Vijaypopat.Pps
Check out this SlideShare Presentation: THIS WAS ONE OF MY EXOM PRESENTATION IN IIPM KOLKATA
Kindness Vijaypopat.Pps
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BUDGET 2010
Inclusiveness key theme in Budget 2010?
The development strategy, likely to be articulated in the Budget, envisages social protection for the common man through maximum access to energy resources
New Delhi: In a strong signal ahead of the presentation of Budget 2010 on 26 February, the Congress-led United Progressive Alliance (UPA) reiterated the government’s commitment on its development strategy of inclusiveness, even as it was bullish that growth would bounce back to 8%-plus from the next fiscal.
Clear signal: President Pratibha Patil addressing the joint session of Parliament on Monday. PTI
At the same time, the government played down expectations ahead of the resumption of bilateral talks with Pakistan on 25 February after a 13-month hiatus, with President Pratibha Patil saying that New Delhi would have a “meaningful relationship with Islamabad” if the latter “seriously addresses the threat of terrorism and takes effective steps to prevent terrorist activities against India”.
The President was making her customary address, reflecting the government’s thinking, to both houses of Parliament ahead of the Budget session.
Invoking the speech of Jawaharlal Nehru at midnight on 14 August 1947, when he emphasized poverty alleviation and condemned income inequalities, Patil said: “Our country stands at a historic turning point. Never before were we so close as we are today to realizing our national aspirations as envisaged by our founding fathers.”
In her speech that lasted a little under an hour and was laced with several references to the aam aadmi (common man), Patil also conceded that the UPA was not in a position to give a deadline for the much-awaited Food Security Bill’s introduction while still being committed to it. In all, the speech had four references to aam admi and nine mentions of “inclusiveness”.
The development strategy, likely to be articulated in the Budget, envisages social protection for the common man through maximum access to energy resources. Patil announced the launch of the Rajiv Gandhi Gramin LPG Vitarak Yojana for distributing liquefied petroleum gas (LPG) to rural people, electricity for all by 2012, besides food security.
“My government firmly believes that the time has come to focus on ensuring that the processes of governance is sensitized, administrative instruments sharpened, and that the benefits of welfare programmes reach the aam aadmi,” Patil said while kicking off the three-month-long Budget session.
The message was clear to the party faithful.
“The President’s speech has given clear signals that the UPA is continuing its focus and attention on rural development because the government knows that India will fail to go up unless rural infrastructure improves,” said V. Kishore Chandra Deo, a senior Congress MP. “Even prices can be controlled only when rural development takes place. The government is in the right direction.”
But the President indicated that last year’s drought had set back the government’s food security plans. In her last address to Parliament, the first after the UPA returned to power, the President had listed enacting the National Food Security Act as one of its priorities in the government’s 100-day programme.
In an attempt to pre-empt criticism by the Opposition, Patil listed the measures undertaken by the government to contain food inflation, which touched 17.97% for the week ended 6 February. The opposition Bharatiya Janata Party (BJP), the Left parties and some allies of the Congress in government have sought a detailed debate on inflation even before the customary discussion on a motion thanking the President for her address.
“The nation is burdened with the problem of price rise. The address of the President does not give any indication of the government’s policy or resolve to contain it,” said Gopinath Munde, deputy leader of the BJP in the Lok Sabha.
The Prime Minister’s economic advisory council recently said that surging food prices may lead to broader inflation and endanger the economic recovery.
Patil also said the government was committed to bringing a “paradigm shift” in the education infrastructure based on the three pillars of expansion, inclusion and excellence. She referred to the law to make education the fundamental right of every child in the 6-14 age group passed by Parliament in August.
To prevent opposition parties from taking political advantage of what they termed the government’s failure in unearthing unaccounted money stashed outside India, the President announced measures such as amending the Income-tax Act to enable the government to enter into tax agreements with non-sovereign jurisdictions.
“Renegotiation of the tax treaty with Switzerland is in process,” she said.
VIJAY POPAT
The development strategy, likely to be articulated in the Budget, envisages social protection for the common man through maximum access to energy resources
New Delhi: In a strong signal ahead of the presentation of Budget 2010 on 26 February, the Congress-led United Progressive Alliance (UPA) reiterated the government’s commitment on its development strategy of inclusiveness, even as it was bullish that growth would bounce back to 8%-plus from the next fiscal.
Clear signal: President Pratibha Patil addressing the joint session of Parliament on Monday. PTI
At the same time, the government played down expectations ahead of the resumption of bilateral talks with Pakistan on 25 February after a 13-month hiatus, with President Pratibha Patil saying that New Delhi would have a “meaningful relationship with Islamabad” if the latter “seriously addresses the threat of terrorism and takes effective steps to prevent terrorist activities against India”.
The President was making her customary address, reflecting the government’s thinking, to both houses of Parliament ahead of the Budget session.
Invoking the speech of Jawaharlal Nehru at midnight on 14 August 1947, when he emphasized poverty alleviation and condemned income inequalities, Patil said: “Our country stands at a historic turning point. Never before were we so close as we are today to realizing our national aspirations as envisaged by our founding fathers.”
In her speech that lasted a little under an hour and was laced with several references to the aam aadmi (common man), Patil also conceded that the UPA was not in a position to give a deadline for the much-awaited Food Security Bill’s introduction while still being committed to it. In all, the speech had four references to aam admi and nine mentions of “inclusiveness”.
The development strategy, likely to be articulated in the Budget, envisages social protection for the common man through maximum access to energy resources. Patil announced the launch of the Rajiv Gandhi Gramin LPG Vitarak Yojana for distributing liquefied petroleum gas (LPG) to rural people, electricity for all by 2012, besides food security.
“My government firmly believes that the time has come to focus on ensuring that the processes of governance is sensitized, administrative instruments sharpened, and that the benefits of welfare programmes reach the aam aadmi,” Patil said while kicking off the three-month-long Budget session.
The message was clear to the party faithful.
“The President’s speech has given clear signals that the UPA is continuing its focus and attention on rural development because the government knows that India will fail to go up unless rural infrastructure improves,” said V. Kishore Chandra Deo, a senior Congress MP. “Even prices can be controlled only when rural development takes place. The government is in the right direction.”
But the President indicated that last year’s drought had set back the government’s food security plans. In her last address to Parliament, the first after the UPA returned to power, the President had listed enacting the National Food Security Act as one of its priorities in the government’s 100-day programme.
In an attempt to pre-empt criticism by the Opposition, Patil listed the measures undertaken by the government to contain food inflation, which touched 17.97% for the week ended 6 February. The opposition Bharatiya Janata Party (BJP), the Left parties and some allies of the Congress in government have sought a detailed debate on inflation even before the customary discussion on a motion thanking the President for her address.
“The nation is burdened with the problem of price rise. The address of the President does not give any indication of the government’s policy or resolve to contain it,” said Gopinath Munde, deputy leader of the BJP in the Lok Sabha.
The Prime Minister’s economic advisory council recently said that surging food prices may lead to broader inflation and endanger the economic recovery.
Patil also said the government was committed to bringing a “paradigm shift” in the education infrastructure based on the three pillars of expansion, inclusion and excellence. She referred to the law to make education the fundamental right of every child in the 6-14 age group passed by Parliament in August.
To prevent opposition parties from taking political advantage of what they termed the government’s failure in unearthing unaccounted money stashed outside India, the President announced measures such as amending the Income-tax Act to enable the government to enter into tax agreements with non-sovereign jurisdictions.
“Renegotiation of the tax treaty with Switzerland is in process,” she said.
VIJAY POPAT
B-schools struggle
B-schools struggle to attract students into academics
IIM-B has also set a target for students to produce two research papers of publishing quality during the duration of the course
Bangalore: Sumit Bakshi, 30, will don a graduation gown and receive his PhD in management studies from the Indian Institute of Management, Bangalore (IIM-B), in April. But the computer engineer says he ended up in academic research “by accident”—one that he has already moved to correct.
Quality upgrade: Gopal Naik (right), chairperson, fellow programme in management, IIM Bangalore, with his students. The country’s business schools are tweaking their curricula to promote academic research. Jagadeesh NV/Mint
Like most of his classmates, Bakshi has taken up a corporate job, as manager of special projects with a United Arab Emirates-based money exchange and remittance firm. “I chose a corporate job because I want hands-on experience,” he says.
Bakshi is a classic case of a student who found his way into doctoral research without aptitude or interest. But with a degree from a prestigious institute such as IIM, such students have little trouble finding an exit route.
Virtually every PhD student at IIM-B has taken up a corporate job in the last few years—three out of four in 2009, six out of eight in 2008 and seven out of eight in 2007. The story isn’t vastly different at other management campuses either.
The fallout is an acute dearth of teachers for degree courses in management research, and the consequent inability of India’s premier institutes to break into the lists of top global management schools.
Bakshi says he completed his engineering degree soon after the dotcom bust of 2001. Jobs were scarce, so he took up a teaching position at an engineering college for two years before wandering into IIM’s PhD programme.
“You can never have money in academics,” he says, explaining his exit. He adds that he will earn five times more in his corporate job compared with that of an assistant professor, whose monthly salary is Rs25,000.
Additionally, those in academics are burdened with administrative duties and an excessive amount of teaching work, leaving little time for research, adds Bakshi.
A. Vinay Kumar, professor and chairman, fellow programme in management, IIM Lucknow, agrees with Bakshi.
“There is a demand from industry for PhD students, and remuneration-wise, it (corporate sector) is much more rewarding,” says Kumar, who loses 30-40% of his PhD students to corporate jobs.
The exodus has led to a severe faculty shortage at IIMs, which currently have 388 teachers against 468 positions.
To keep students rooted to careers in academic research, business schools such as IIM-B, IIM Lucknow and the Xavier Labour Relations Institute (XLRI), Jamshedpur, among others, are tweaking their PhD curricula and offering other incentives.
Until recently, the first-year curriculum of a doctorate programme was a copy of a postgraduate programme in management. But IIM-B and IIM Lucknow introduced courses in research methodology and structural modelling in 2009, while XLRI did the same a year earlier.
VIJAY POPAT
IIM-B has also set a target for students to produce two research papers of publishing quality during the duration of the course
Bangalore: Sumit Bakshi, 30, will don a graduation gown and receive his PhD in management studies from the Indian Institute of Management, Bangalore (IIM-B), in April. But the computer engineer says he ended up in academic research “by accident”—one that he has already moved to correct.
Quality upgrade: Gopal Naik (right), chairperson, fellow programme in management, IIM Bangalore, with his students. The country’s business schools are tweaking their curricula to promote academic research. Jagadeesh NV/Mint
Like most of his classmates, Bakshi has taken up a corporate job, as manager of special projects with a United Arab Emirates-based money exchange and remittance firm. “I chose a corporate job because I want hands-on experience,” he says.
Bakshi is a classic case of a student who found his way into doctoral research without aptitude or interest. But with a degree from a prestigious institute such as IIM, such students have little trouble finding an exit route.
Virtually every PhD student at IIM-B has taken up a corporate job in the last few years—three out of four in 2009, six out of eight in 2008 and seven out of eight in 2007. The story isn’t vastly different at other management campuses either.
The fallout is an acute dearth of teachers for degree courses in management research, and the consequent inability of India’s premier institutes to break into the lists of top global management schools.
Bakshi says he completed his engineering degree soon after the dotcom bust of 2001. Jobs were scarce, so he took up a teaching position at an engineering college for two years before wandering into IIM’s PhD programme.
“You can never have money in academics,” he says, explaining his exit. He adds that he will earn five times more in his corporate job compared with that of an assistant professor, whose monthly salary is Rs25,000.
Additionally, those in academics are burdened with administrative duties and an excessive amount of teaching work, leaving little time for research, adds Bakshi.
A. Vinay Kumar, professor and chairman, fellow programme in management, IIM Lucknow, agrees with Bakshi.
“There is a demand from industry for PhD students, and remuneration-wise, it (corporate sector) is much more rewarding,” says Kumar, who loses 30-40% of his PhD students to corporate jobs.
The exodus has led to a severe faculty shortage at IIMs, which currently have 388 teachers against 468 positions.
To keep students rooted to careers in academic research, business schools such as IIM-B, IIM Lucknow and the Xavier Labour Relations Institute (XLRI), Jamshedpur, among others, are tweaking their PhD curricula and offering other incentives.
Until recently, the first-year curriculum of a doctorate programme was a copy of a postgraduate programme in management. But IIM-B and IIM Lucknow introduced courses in research methodology and structural modelling in 2009, while XLRI did the same a year earlier.
VIJAY POPAT
MAX NEW YORK NEW POLICY
Max New York Life to cut costs, consolidate operations
Private life insurer Max New York Life Insurance will focus on increasing operational efficiency and cutting costs this fiscal, while
pushing health, pension and traditional policies, a top official said here on Wednesday.
"The focus this year will be on improving the efficiency of our agents and cutting costs by outsourcing non-core activities. We will also focus on pension, health and traditional insurance policies," Rajit Mehta, executive director and chief operating officer, told reporters.
Asked about the impact of last year's stock market crash on the company's policy sales, he said: "The per-policy size has reduced a bit but there is no increase in policy lapasation. Our policy persistency ratio is around 85 percent."
VIJAY POPAT
Private life insurer Max New York Life Insurance will focus on increasing operational efficiency and cutting costs this fiscal, while
"The focus this year will be on improving the efficiency of our agents and cutting costs by outsourcing non-core activities. We will also focus on pension, health and traditional insurance policies," Rajit Mehta, executive director and chief operating officer, told reporters.
Asked about the impact of last year's stock market crash on the company's policy sales, he said: "The per-policy size has reduced a bit but there is no increase in policy lapasation. Our policy persistency ratio is around 85 percent."
VIJAY POPAT
AVG Antivirus and Security Software - AVG Blogs | Stay tuned. Stay protected
FRIENDS I HIGHLY RECOMMEND EVERY ONE TO READ THIS ITS REALLY INTERESTING AND USEFULL FOR OUR PC'S AND LAPTOPS.
AVG Antivirus and Security Software - AVG Blogs Stay tuned. Stay protected
VIJAY POPAT
AVG Antivirus and Security Software - AVG Blogs Stay tuned. Stay protected
VIJAY POPAT
Monday, February 22, 2010
EXPERIENCE IN INSURANCE INDUSTRY
SUMMER INTERNSHIP PROJECT FROM MAX NEW YORK LIFE INSURANCE.
As per my MBA schedule from IIPM KOLKATA I preferred MAX NEW YORK LIFE INSURANCE company over many other companies which came to IIPM campus for internship project. Prime reason at that point of time to choose it over other options i.e. STANDARD CHARTERED BANK, RELIANCE MONEY, MINT PAPER ( H.T.), etc, was that work offered here was quite lucrative and attractive.
Interns in MAX, were given three basic projects.
1) RECRUITMENT
2) DEVELOPMENT OF RECRUITED PEOPLE,
3) RISK MANAGEMENT ( FACT FINDING ).
The whole tenure of training was of just 2 months, but in this small period I was lucky to have a considerable exposure to INSURANCE industry, corporate life, inside politics, cut throat competition and surviving the immense pressure from higher authorities, how to handle your boss, and side effects of working with baggage of insurance tag word.
Its quite funny and surprising to realize that not only uneducated people but literate society is also so negative about insurance industry. Thinking about insurance everyone just start thinking about liability of paying premiums, deaths, bugging advisors and all negative supportive elements pops-up in everybody's mind. But like any other industry insurance industry has many positive elements, which are beneficial to society, government and even insured individual citizen. I wont diverge my topic from my experience of MAX to parasol of insurance industry, so quickly i will love to summarize my experience of summer internship with MAX NEW YORK.
Recruitment phase was really practical and helped me understand human psychology, as it purely exposed me to human resource and leadership quality inside me. Then following the process we had to develop those recruited person with skilled and organized fashion. Risk management involved finance expertise as it dealt with risk involved in assessment of clients mortality rate, i.e chances to die and in terms risk liability ratio needed to be calculated from some specified techniques. Fact findings dealt with clients assets/ liabilities ratio and consulting them proper financial plan to assist their respective portfolio in much safe and profitable manner.
During my short journey with MAX NEW YORK LIFE INSURANCE i understood the value of being all rounder. Corporate world is quite merciless in terms of expectations it expects from every one to know every thing. One needs to possess required talent and knowledge about almost anything and everything to be a good manager and survive the cut throat competition.
Mr. Abhishek Mukherjee , Mr Kaushik Majumdar, and Mr Ritoproto Goswami were my hard core mentors in MAX NEW YORK, I did my internship under there wise guidance at Kolkata VIII office,
84, RAJA S.C. MULLICK ROAD,
NEAR GANGULYBAGAN BUS STOP,
BAISHALI HOUSE, 1ST FLOOR;
GARIA ( KAVINAZRUL METRO STATION);
KOLKATA - 47
To summarize my experience there I can suggest everyone to be open to all opportunities and maintain learning spirit throughout there journey, I had quite fruitful time in my small association with insurance sector.
VIJAY POPAT
As per my MBA schedule from IIPM KOLKATA I preferred MAX NEW YORK LIFE INSURANCE company over many other companies which came to IIPM campus for internship project. Prime reason at that point of time to choose it over other options i.e. STANDARD CHARTERED BANK, RELIANCE MONEY, MINT PAPER ( H.T.), etc, was that work offered here was quite lucrative and attractive.
Interns in MAX, were given three basic projects.
1) RECRUITMENT
2) DEVELOPMENT OF RECRUITED PEOPLE,
3) RISK MANAGEMENT ( FACT FINDING ).
The whole tenure of training was of just 2 months, but in this small period I was lucky to have a considerable exposure to INSURANCE industry, corporate life, inside politics, cut throat competition and surviving the immense pressure from higher authorities, how to handle your boss, and side effects of working with baggage of insurance tag word.
Its quite funny and surprising to realize that not only uneducated people but literate society is also so negative about insurance industry. Thinking about insurance everyone just start thinking about liability of paying premiums, deaths, bugging advisors and all negative supportive elements pops-up in everybody's mind. But like any other industry insurance industry has many positive elements, which are beneficial to society, government and even insured individual citizen. I wont diverge my topic from my experience of MAX to parasol of insurance industry, so quickly i will love to summarize my experience of summer internship with MAX NEW YORK.
Recruitment phase was really practical and helped me understand human psychology, as it purely exposed me to human resource and leadership quality inside me. Then following the process we had to develop those recruited person with skilled and organized fashion. Risk management involved finance expertise as it dealt with risk involved in assessment of clients mortality rate, i.e chances to die and in terms risk liability ratio needed to be calculated from some specified techniques. Fact findings dealt with clients assets/ liabilities ratio and consulting them proper financial plan to assist their respective portfolio in much safe and profitable manner.
During my short journey with MAX NEW YORK LIFE INSURANCE i understood the value of being all rounder. Corporate world is quite merciless in terms of expectations it expects from every one to know every thing. One needs to possess required talent and knowledge about almost anything and everything to be a good manager and survive the cut throat competition.
Mr. Abhishek Mukherjee , Mr Kaushik Majumdar, and Mr Ritoproto Goswami were my hard core mentors in MAX NEW YORK, I did my internship under there wise guidance at Kolkata VIII office,
84, RAJA S.C. MULLICK ROAD,
NEAR GANGULYBAGAN BUS STOP,
BAISHALI HOUSE, 1ST FLOOR;
GARIA ( KAVINAZRUL METRO STATION);
KOLKATA - 47
To summarize my experience there I can suggest everyone to be open to all opportunities and maintain learning spirit throughout there journey, I had quite fruitful time in my small association with insurance sector.
VIJAY POPAT
Friday, February 19, 2010
FISCAL CONSOLIDATION
Govt. must start fiscal consolidation in FY11: PM panel
The Indian economy is likely to grow more than 7.2% in the current fiscal year ending March, C Rangarajan, the Prime Minister’s economic adviser, said on Friday
New Delhi: India should begin to lower its fiscal deficit in the Budget set to be announced next week but should not cut capital spending on infrastructure, a top government panel said on Friday.
The panel also projected economic growth of at least 8.2% in 2010-11, from over 7.2% forecast for the current fiscal year. Other top officials have said the economy would grow at 8% in the year that ends March 2011.
The fiscal deficit, running at a 16-year high of 6.8% of GDP this year, threatens to push up long-term market interest rates and constrain the setting of monetary policy, the prime minister’s economic advisory council said.
Market watchers say continued heavy government borrowing would crowd out credit to the private sector, drive up rates and add to the government interest burden.
The panel also warned about the spread of food price inflation to the broader economy.
India aims to cut its fiscal deficit to 5.5% of GDP for the year that begins 1 April, and Union finance minister Pranab Mukherjee is expected to announce a partial roll-back of stimulus measures when he announces the Budget for the next fiscal year on 26 February.
“Although the large deficits this year and the last year did have a counter-cyclical impact, it is necessary to initiate measures towards fiscal consolidation in the forthcoming budget,” the council said in its review of the 2009-10 fiscal year.
The council said by keeping spending and subsidies at current levels, it was possible to cut the fiscal deficit by 1-1.5% for the year that ends in March 2011 without hurting economic growth. An improving economy and sales of state company stakes and 3G cellphone spectrum are expected to lift revenue.
“While it is important to reduce the fiscal deficit significantly in the coming budget, it is important to safeguard capital expenditures, particularly in the infrastructure sectors,” the report said.
Poor infrastructure has long been a brake on India’s growth, and government efforts to close the shortfall have been hampered by red tape, difficulties over land acquisition, and a lack of long-term funding sources.
The council’s head, influential former Reserve Bank of India (RBI) governor C Rangarajan, said he expected government borrowing for the 2010-11 fiscal year to be around or slightly lower than the current year’s record Rs4.51 trillion ($97 billion).
The central bank and economists polled by Reuters expect a slight rise in gross borrowing in the new year. The Reuters poll pegs the gross market borrowing figure for 2010-11 at Rs4.61 trillion because of higher redemptions.
Indian bond and foreign exchange markets shrugged off Rangarajan’s comments, which traders said were broadly in line with those made by other policymakers.
At 0747 GMT, the yield on the 10-year benchmark bond was at 7.89%, higher from its Thursday close of 7.86%. The partially convertible rupee was trading at 46.4575/4675 per dollar, from the previous close of 46.27/28.
Rangarajan said he expects wholesale price inflation to hit 8.5% by the end of March, although some private forecasters expect it to reach double-digits by then.
Still, the BBI has said it is unlikely to move interest rates before its 20 April policy review, barring an unforseen event.
Growth and inflation data have both been on the rise.
“I think the RBI will adopt a wait and watch policy and any action could happen only in the April review,” said M Govinda Rao, a member of the Prime Minister’s Economic Advisory Council.
Rangarajan said the economy will grow at over 7.2% in the year that runs through March, slightly lower than the central bank’s projection of 7.5%.
VIJAY POPAT
The Indian economy is likely to grow more than 7.2% in the current fiscal year ending March, C Rangarajan, the Prime Minister’s economic adviser, said on Friday
New Delhi: India should begin to lower its fiscal deficit in the Budget set to be announced next week but should not cut capital spending on infrastructure, a top government panel said on Friday.
The panel also projected economic growth of at least 8.2% in 2010-11, from over 7.2% forecast for the current fiscal year. Other top officials have said the economy would grow at 8% in the year that ends March 2011.
The fiscal deficit, running at a 16-year high of 6.8% of GDP this year, threatens to push up long-term market interest rates and constrain the setting of monetary policy, the prime minister’s economic advisory council said.
Market watchers say continued heavy government borrowing would crowd out credit to the private sector, drive up rates and add to the government interest burden.
The panel also warned about the spread of food price inflation to the broader economy.
India aims to cut its fiscal deficit to 5.5% of GDP for the year that begins 1 April, and Union finance minister Pranab Mukherjee is expected to announce a partial roll-back of stimulus measures when he announces the Budget for the next fiscal year on 26 February.
“Although the large deficits this year and the last year did have a counter-cyclical impact, it is necessary to initiate measures towards fiscal consolidation in the forthcoming budget,” the council said in its review of the 2009-10 fiscal year.
The council said by keeping spending and subsidies at current levels, it was possible to cut the fiscal deficit by 1-1.5% for the year that ends in March 2011 without hurting economic growth. An improving economy and sales of state company stakes and 3G cellphone spectrum are expected to lift revenue.
“While it is important to reduce the fiscal deficit significantly in the coming budget, it is important to safeguard capital expenditures, particularly in the infrastructure sectors,” the report said.
Poor infrastructure has long been a brake on India’s growth, and government efforts to close the shortfall have been hampered by red tape, difficulties over land acquisition, and a lack of long-term funding sources.
The council’s head, influential former Reserve Bank of India (RBI) governor C Rangarajan, said he expected government borrowing for the 2010-11 fiscal year to be around or slightly lower than the current year’s record Rs4.51 trillion ($97 billion).
The central bank and economists polled by Reuters expect a slight rise in gross borrowing in the new year. The Reuters poll pegs the gross market borrowing figure for 2010-11 at Rs4.61 trillion because of higher redemptions.
Indian bond and foreign exchange markets shrugged off Rangarajan’s comments, which traders said were broadly in line with those made by other policymakers.
At 0747 GMT, the yield on the 10-year benchmark bond was at 7.89%, higher from its Thursday close of 7.86%. The partially convertible rupee was trading at 46.4575/4675 per dollar, from the previous close of 46.27/28.
Rangarajan said he expects wholesale price inflation to hit 8.5% by the end of March, although some private forecasters expect it to reach double-digits by then.
Still, the BBI has said it is unlikely to move interest rates before its 20 April policy review, barring an unforseen event.
Growth and inflation data have both been on the rise.
“I think the RBI will adopt a wait and watch policy and any action could happen only in the April review,” said M Govinda Rao, a member of the Prime Minister’s Economic Advisory Council.
Rangarajan said the economy will grow at over 7.2% in the year that runs through March, slightly lower than the central bank’s projection of 7.5%.
VIJAY POPAT
GLOBAL OPPORTUNITY & THREAT ANALYSIS FROM IIPM KOLKATA.
WE WENT TO BELGIUM ( BRUSSELS & ANTWERP) , U.K. ( CAMBRIDGE & LONDON )
Budget View: Commodity mkt hopes for entry of banks, funds
India which opened commodity futures trade seven years ago has not allowed foreigners, banks and funds to trade
Mumbai: Indian commodity market players are seeking entry of banks, funds and foreign brokers in the futures market in the forthcoming federal budget, but analysts fear spiralling food prices may hinder policy moves.
“Banks and fund’s entry will push volumes up exponentially giving them increased opportunity as an asset class,” said Gnanasekar Thiagarajan, director, Commtendz Research.
India which opened commodity futures trade seven years ago has not allowed foreigners, banks and funds to trade. It also doesn’t allow options and indices trading which are volume generators across the world’s bourses.
Finance minister Pranab Mukherjee will unveil the federal budget in parliament on 26 February.
Turnover at 23 commodity bourses in India has grown to Rs52.5 trillion in 2008-09 from Rs1.29 trillion in 2003-04. Turnover is up about 50% so far in the current fiscal.
The growth is attracting investment from overseas, with Goldmans Sachs, IntercontinentalExchange owning stakes in National Commodity and Derivatives Exchange, while Fid Fund (Mauritius) Ltd., an affiliate of Fidelity International, and NYSE Euronext are investors in Multi Commodity Exchange (MCX). Analysts, however, believe this blistering growth may not sustain for long if further reforms are not put in place and one of the expectations is that the Forward Markets Commission, the market regulator, may be given more powers.
“Before the market widens to a larger scale what we need a strong autonomous regulator ... strengthening the regulator is the key to next level of reforms,” said PK Singhal, deputy managing director of MCX, the biggest bourse.
The Forward Contracts (Regulation) Amendment Bill 2006, which is pending approval in the lower house of Parliament, gives more teeth to the regulator and allows trade in options and non-deliverable commodities like weather derivatives and indices.
Autonomy?
Now the FMC is governed by the ministry of consumer affairs unlike its autonomous counterpart the Securities Exchange Board of India and the budget is expected to contain hints on the issue of autonomy, although concrete steps may be come later.
Bourses and the regulator are also expecting FMC being made the regulator for warehouses across the country.
“We think FMC stands a good chance of becoming a common regulator for both exchanges and warehouses,” the official said. FMC already regulates warehousing operations of all commodity bourses in India, he said.
Spot and futures commodity bourses also seek infrastructure status to avail prevalent tax concessions, which they hope will trigger growth in the industry.
“The government is looking at this sector in a positive way. Last year the transaction tax was removed which brought a lot of confidence,” said Ajit Mittal, managing director of Indian Commodity Exchange, the youngest and third biggest commodity bourse. India also relisted wheat futures in 2009.
“In the immediate future, we expect entry of foreign brokers in the Indian commodity futures market..there has been a proposal by the regulator,” said an official of another commodity bourse.
Bourses and domestic brokers also demand exemption of the current tax deduction on brokerage in commodity futures trade provisioned under section 194 (H) of Income Tax Act.
But, the sharp rise in food prices continue to worry some analysts who fell it may restrict some decisions.
“Government will act cautiously ...food prices are higher..they may wait till the monsoon before taking major decisions in this sector,” said Commtrendz’ Gnanasekar.
India which opened commodity futures trade seven years ago has not allowed foreigners, banks and funds to trade
Mumbai: Indian commodity market players are seeking entry of banks, funds and foreign brokers in the futures market in the forthcoming federal budget, but analysts fear spiralling food prices may hinder policy moves.
“Banks and fund’s entry will push volumes up exponentially giving them increased opportunity as an asset class,” said Gnanasekar Thiagarajan, director, Commtendz Research.
India which opened commodity futures trade seven years ago has not allowed foreigners, banks and funds to trade. It also doesn’t allow options and indices trading which are volume generators across the world’s bourses.
Finance minister Pranab Mukherjee will unveil the federal budget in parliament on 26 February.
Turnover at 23 commodity bourses in India has grown to Rs52.5 trillion in 2008-09 from Rs1.29 trillion in 2003-04. Turnover is up about 50% so far in the current fiscal.
The growth is attracting investment from overseas, with Goldmans Sachs, IntercontinentalExchange owning stakes in National Commodity and Derivatives Exchange, while Fid Fund (Mauritius) Ltd., an affiliate of Fidelity International, and NYSE Euronext are investors in Multi Commodity Exchange (MCX). Analysts, however, believe this blistering growth may not sustain for long if further reforms are not put in place and one of the expectations is that the Forward Markets Commission, the market regulator, may be given more powers.
“Before the market widens to a larger scale what we need a strong autonomous regulator ... strengthening the regulator is the key to next level of reforms,” said PK Singhal, deputy managing director of MCX, the biggest bourse.
The Forward Contracts (Regulation) Amendment Bill 2006, which is pending approval in the lower house of Parliament, gives more teeth to the regulator and allows trade in options and non-deliverable commodities like weather derivatives and indices.
Autonomy?
Now the FMC is governed by the ministry of consumer affairs unlike its autonomous counterpart the Securities Exchange Board of India and the budget is expected to contain hints on the issue of autonomy, although concrete steps may be come later.
Bourses and the regulator are also expecting FMC being made the regulator for warehouses across the country.
“We think FMC stands a good chance of becoming a common regulator for both exchanges and warehouses,” the official said. FMC already regulates warehousing operations of all commodity bourses in India, he said.
Spot and futures commodity bourses also seek infrastructure status to avail prevalent tax concessions, which they hope will trigger growth in the industry.
“The government is looking at this sector in a positive way. Last year the transaction tax was removed which brought a lot of confidence,” said Ajit Mittal, managing director of Indian Commodity Exchange, the youngest and third biggest commodity bourse. India also relisted wheat futures in 2009.
“In the immediate future, we expect entry of foreign brokers in the Indian commodity futures market..there has been a proposal by the regulator,” said an official of another commodity bourse.
Bourses and domestic brokers also demand exemption of the current tax deduction on brokerage in commodity futures trade provisioned under section 194 (H) of Income Tax Act.
But, the sharp rise in food prices continue to worry some analysts who fell it may restrict some decisions.
“Government will act cautiously ...food prices are higher..they may wait till the monsoon before taking major decisions in this sector,” said Commtrendz’ Gnanasekar.
Thursday, February 18, 2010
RECENT UPDATES FROM STOCK MARKET
Shares ease as Reliance falls 3.4%
Sensex closes down 112.63 points at 16,316.28; Nifty closes down 30.05 points at 4,883.95
Mumbai: Mumbai: Mumbai: Indian shares shed 0.6% on Thursday after a two-day rise, weighed down by Reliance Industries on concern the energy major would have to pay more if it wants to buy LyondellBasell.
Reliance, the country’s largest-listed firm with the most weight in the main index, dropped 3.4% to Rs997.40. It was the biggest one-day fall in two weeks.
“Today, the speculation that Reliance may have to hike its bid for LyondellBasell is doing the damage to the stock price,” said Prayesh Jain, a research analyst with India Infoline.
“I believe Reliance will not go beyond $15-$16 billion and possibly the deal may not even go through,” he said.
Reliance may be forced to raise its offer for LyondellBasell or abandon its bid all together after the target settled a dispute with creditors that paved the way for an exit from bankruptcy.
The 30-share BSE index dropped 0.62%, or 101.07 points, to 16,327.84, after rising 2.4% over the last two sessions. Twenty-one of its components closed in the red.
“It will continue to be rangebound in the near term,” said Daljeet Kohli, head of research for private client group at Emkay Global, adding demand from foreign funds was reviving but the buying was relatively small.
“More clarity should emerge post budget for investors to take calls,” he said.
The government is widely expected to start rolling back fiscal stimulus measures in the Budget on 26 February, but should also push ahead with key reforms such as asset sales.
“After many years, we have a stable government presenting the Budget without any internal pressures. I think they will use this opportunity to send a strong reform message,” Kohli said.
Foreign funds have bought $178 million of equities in the last three days, after dumping $2.2 billion over 16 sessions.
Tata Steel, the world’s eighth-largest steel maker by output, declined 1.3% after climbing nearly 12% in the last four sessions.
Non-ferrous metals producer Sterlite Industries fell 2.6%, as copper prices eased on a stronger dollar and worries that China might return as a seller of metal after week-long holidays.
Top mobile operator Bharti Airtel gained 0.7% to Rs281.10 as investors bet the price was a bargain on long-term prospects.
The stock is down more than 10% this week on its planned $9 billion deal to buy Kuwaiti firm Zain’s African assets, on worries the debt to finance the transaction may strain its finances over the near term.
“I believe we will see consolidation happening in the telecom sector, and Bharti is here to stay as it has the strong muscle and experience to sail through the tough times,” Kohli said.
In the broader market, losers outpaced gainers in the ratio of 1.7:1 on volume of 319 million shares, lower than last week’s daily average of 351 million shares.
The 50-share NSE index dropped 0.5% to 4,887.75.
23 firms keen to enter mutual fund business, seek SEBI nod
Some of the Indian companies whose applications are with the market regulator include India Bulls Ltd, Future Finance Ltd, SREI Infrastructure Finance Ltd and ASK Investment Holdings Pvt Ltd.
New Delhi: As many as 23 firms are awaiting approval from the market regulator Sebi to enter into mutual fund space, which is already overcrowded with 37 players managing assets over Rs7 trillion.
Companies have filed for regulatory approvals, which are being processed by Sebi, sources said.
Some of the Indian companies whose applications are with the market regulator include India Bulls Ltd, Future Finance Ltd, SREI Infrastructure Finance Ltd and ASK Investment Holdings Pvt Ltd.
Besides, brokerage entities like India Infoline, Prime Securities Ltd, Karvy Stock Broking Ltd and Jaypee Capital Services Ltd have also sought licences from SEBI for asset management.
Two state-run banks — Union Bank of India and IDBI Bank — are also planning to venture into the asset management space and have approached the regulatory authority.
While IDBI Bank had filed application for licence in June last year, Union Bank had submitted its papers in February 2009.
Meanwhile, the country’s third largest private sector lender Axis Bank has already got the regulator’s approval to start asset management business.
The Union Bank has set up an asset management firm with KBC Group of Belgium. The joint venture, in which the PSB owns 51% stake, expects to start operations during the current fiscal.
Another public sector lender IDBI Bank has got Sebi approval to set up the asset management company either as a wholly-owned subsidiary or as a joint venture.
Currently, there are five mutual funds either fully or partly owned by Indian banks, along with foreign partners.
These include Baroda Pioneer Mutual Fund, Canara Robeco Mutual Fund, ICICI Prudential Mutual Fund, Principal Mutual Fund and SBI Mutual Fund.
At the end of January, the mutual fund industry in India was managing asset to the tune of Rs7.61 trillion.
The industry’s average asset under management fell by Rs32,853.79 crore or 4.13% during the said month.
The combined average asset under management of the 37 fund houses stood at Rs7,61,632.26 crore at the end of January, according to a data released by the Association of Mutual Funds in India.
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