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Posted by on Mar 15, 2012 in Business, Law | 0 comments

Bombay HC: Reconsider MCX-SX application;Setback to SEBI

Bombay HC: Reconsider MCX-SX application;Setback to SEBI

In a rare occasion where an action of a regulatory body is found contrary to law, Bombay High court has directed the Securities Exchange Board of India (SEBI) to reconsider within one month, the application of nation’s biggest commodities bourse, Multi Commodities Exchange (MCX) to set up an exclusive stock exchange with independent trading platform. SEBI had earlier rejected MCX’s application to float the exchange in 2010. SEBI rejected the application on the grounds that “it wasn’t in the interest of trade and public to allow the application” and said the rules of MIMPS (Manner of Increasing and Maintaining Public Shareholding) were violated, which mandates promoters of the exchange to hold only 5% stake. The court noted that a genuine attempt has been made by the promoters to keep the stake less than 5% and speculation cannot be used as evidence against the application. “The mere possibility of a hypothetical situation cannot result in the invalidation of the transaction which is otherwise lawful” quoted the judgment. However the court...

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Posted by on Mar 7, 2012 in Business | 0 comments

Dampened Congress may drag India to a period of economic instability

Dampened Congress may drag India to a period of economic instability

If the drubbing that Congress received with the results of 5 state elections was any indication of the trend to follow till 2014, Congress may well be out of power in the next 2 years. While it retained Manipur and just managed to claim government in Uttarkhand, it lost heavily in Punjab & Goa and in UP it was just short of a disaster. If political equations get more complex, then UPA can be unseated even before it completes the term. What this means to the country’s economy which is already going through a tough phase is critical. While other parties too performed badly in Uttar Pradesh, Congress stands out as the biggest loser. It is because of two reasons. One, its prime crowd puller who was widely banked upon to deliver and revive the party in Hindi heartland, Rahul Gandhi, has failed miserably. That will seriously dent Congress’ position on he leading the party and in governance and he may not enjoy the same confidence from the stakeholders....

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Posted by on Mar 4, 2012 in Business | 0 comments

Negative tax list, FDI, GST primary focus points of Budget 2012-13

Negative tax list, FDI, GST primary focus points of Budget 2012-13

Next 2 weeks will be very carefully watched by analysts and markets as Railway budget is to be presented on Mar 14, a key monetary review meeting is scheduled by RBI on Mar 15 and the Union Budget is to be presented on  Mar 16. 2011 was a very rigid year for economies around the world. Lack of turnaround announcements or big ticket business decisions is understandable given the tight credit regime that existed. Whole of Europe sparing Germany was in “not-so-healthy” mode and we witnessed a lot of political turmoils, uprising and resignations. India however, thanks to its internal consumption did not experience alarming growth problems. But the inflationary pressures and dampened export added to a devalued rupee that further hiked procurement rates which kept the industry in check and led to a large fiscal deficit for the government. The Union Budget 2012-13 is, therefore, a very important opportunity for the government to provide the necessary fillip to growth, which has been lackluster for the last one year....

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Posted by on Feb 27, 2012 in Business | 0 comments

Delay in salary is ‘personal sorrow’, will pay you: Mallya

Delay in salary is ‘personal sorrow’, will pay you: Mallya

Chairman of Kingfisher Airlines and liquor baron Vijay Mallya has admitted in an internal communication that delay in payments of salaries is a “source of great personal sorrow”. He claimed that he has been working tirelessly to “negotiate” and that his efforts will be successful this week. There are indeed a few reasons to be upbeat about his promise. He cited ‘light at the end of a long dark tunnel’ pointing to the government notification that allows direct import of aviation fuel, a move that would help Kingfisher’s current fuel costs to come down by 15%. The government is now planning to allow 49% investment by foreign airlines in domestic carriers. If materialized, Kingfisher can manage to find a foreign investor to pump money enabling a private rescue, but that is bound by the investor’s risk appetite. Mallya also revealed that the airline’s chief promoter, the UB Group has bought some of its loans in exchange for 5% stake. This announcement comes against the backdrop of the Income Tax...

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