Mumbai: Smaller cities are scoring over metros in terms of growing urbanisation, and cities such as Jalandhar, Aurangabad, Bhubhaneshwar, Agra and Raipur are believed to be the next ‘cities of opportunities’.
According to the latest Morgan Stanley research report, ‘AlphaWise City Vibrancy Index: A Guide to India’s Urbanization’, households in these cities earn more than India’s average urban household.
Centre for Monitoring Indian Economy (CMIE) pegs the quarterly average household income at about Rs 45,000 per urban household, whereas in cities such as Jalandhar, Bhubaneswar, Guwahati and Aurangabad have a quarterly average household income of above Rs 65,000.
The report measures the key drivers of urbanisation such as physical infrastructure, financial penetration, consumer services and job listings in the top 200 cities (by population) in India. The vibrancy index is aimed at helping investors evaluate companies’ strategic positioning in urban centers and monitor sector trends.
Urbanisation is important to the process of city formation and building India’s competitive strength in the global markets, feels Ridham Desai, head of India research and India strategist at Morgan Stanley. “The relative performance of components of the vibrancy index could give us insight into potential for urbanisation. For example, a city’s rate of urbanisation may be low but it may be (that) financial penetration may be high. This gives us potential for consumer services or job creation in that city,” says Desai.
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Showing posts with label Business News. Show all posts
Showing posts with label Business News. Show all posts
Monday, February 21, 2011
Asba now mandatory for institutions, HNIs
Mumbai: In his last press conference as chairman of the Securities & Exchange Board of India, C B Bhave extended the scope of some market reforms he initiated when entering office three years ago.
Asba, or applications supported by blocked amount, has been made mandatory for qualified institutional buyers and high net-worth investors when applying for public or rights issues. Bhave had introduced Asba in the second board meet that he chaired in May 2008 after assuming office in February that year.
“After taking into account the feedback received from market participants, it has been decided that Asba will be mandatory for the non-retail segment from May 1 onwards,” said Bhave while addressing the media here on Monday.
Under Asba, an applicant can submit a bid, even as the money remains in the bank account. The money is debited only at the time shares are allotted. This eliminates delays related to refunds, speeding up the whole process. While the facility was initially available only for retail applicants, it was extended to institutional investors in April 2010.
When asked if Asba would be made mandatory for retail investors, too, Bhave said, “A decision would be taken based on a review of the current change.”
Expectedly, the media interaction after the Sebi board meeting on Mon day started off on a nostalgic note. “All of us must remember that Sebi is an institution. Chairmen come and chairmen go. Sebi as an institution has only progressed since 1992, when it was first formed. This is a journey of the institution,” said the seventh chairman of the market regulator. Bhave is due to retire on February 17.
Sebi does not want interested shareholders, including promoters, to vote on special resolutions and will forward this recommendation to the ministry of company affairs. The recommendation, which has its roots in the Satyam fraud, calls for amending Clause 166 of the Companies Bill, 2009.
“You may recall, during the talks of amalgamation of Maytas and Satyam, questions were raised on whether Satyam shareholders, who are interested in this transaction, should be allowed to vote or not. That amalgamation never took place, but this point was definitely raised,” explained Bhave.
“This will protect small and diversified shareholders in listed companies from abusive related-party transactions. This view was taken based on the learning from the investigation into the matter of Satyam,” said a Sebi release.
Sebi has also decided to bring in uniformity in the period of initial registration granted to market participants. The initial registration will be for a period of five years.
Thereafter, based on a performance assessment, permanent registration will be granted. “(Intermediaries) should not be required to come time and again,” said Bhave, while explaining the rationale.
Sebi has also decided the currency derivatives segment would have self-clearing members that have a net worth of Rs 5 crore.
The Sebi board decided to defer a final decision on the proposed Takeover Code, as the government is still in the process of talking to industry participants on some recommendations. The Takeover Code was sent to Sebi in July 2010.
The board also did not take up the pending issue of the Bimal Jalan report, as Sebi is still not through analysing feedback from market participants. “Comments have come to us. These comments are being collated by the department. That issue was not taken at this meeting at all,” he said.
Asba, or applications supported by blocked amount, has been made mandatory for qualified institutional buyers and high net-worth investors when applying for public or rights issues. Bhave had introduced Asba in the second board meet that he chaired in May 2008 after assuming office in February that year.
“After taking into account the feedback received from market participants, it has been decided that Asba will be mandatory for the non-retail segment from May 1 onwards,” said Bhave while addressing the media here on Monday.
Under Asba, an applicant can submit a bid, even as the money remains in the bank account. The money is debited only at the time shares are allotted. This eliminates delays related to refunds, speeding up the whole process. While the facility was initially available only for retail applicants, it was extended to institutional investors in April 2010.
When asked if Asba would be made mandatory for retail investors, too, Bhave said, “A decision would be taken based on a review of the current change.”
Expectedly, the media interaction after the Sebi board meeting on Mon day started off on a nostalgic note. “All of us must remember that Sebi is an institution. Chairmen come and chairmen go. Sebi as an institution has only progressed since 1992, when it was first formed. This is a journey of the institution,” said the seventh chairman of the market regulator. Bhave is due to retire on February 17.
Sebi does not want interested shareholders, including promoters, to vote on special resolutions and will forward this recommendation to the ministry of company affairs. The recommendation, which has its roots in the Satyam fraud, calls for amending Clause 166 of the Companies Bill, 2009.
“You may recall, during the talks of amalgamation of Maytas and Satyam, questions were raised on whether Satyam shareholders, who are interested in this transaction, should be allowed to vote or not. That amalgamation never took place, but this point was definitely raised,” explained Bhave.
“This will protect small and diversified shareholders in listed companies from abusive related-party transactions. This view was taken based on the learning from the investigation into the matter of Satyam,” said a Sebi release.
Sebi has also decided to bring in uniformity in the period of initial registration granted to market participants. The initial registration will be for a period of five years.
Thereafter, based on a performance assessment, permanent registration will be granted. “(Intermediaries) should not be required to come time and again,” said Bhave, while explaining the rationale.
Sebi has also decided the currency derivatives segment would have self-clearing members that have a net worth of Rs 5 crore.
The Sebi board decided to defer a final decision on the proposed Takeover Code, as the government is still in the process of talking to industry participants on some recommendations. The Takeover Code was sent to Sebi in July 2010.
The board also did not take up the pending issue of the Bimal Jalan report, as Sebi is still not through analysing feedback from market participants. “Comments have come to us. These comments are being collated by the department. That issue was not taken at this meeting at all,” he said.
India ratifies double taxation avoidance pacts with SAARC
NEW DELHI: India has ratified the new Double Taxation Avoidance Agreements with SAARC nations taking forward its efforts to track and unearth black money. The revised treaties will come into effect from next fiscal, according to a government notification.
"The central government hereby directs that all the provisions of the said agreement shall be given effect to in the Union of India with effect from 1st day of April, 2011," the official government Gazette notification said. According to the notification, the new agreement will apply to persons who are residents of one or more member states.
However, the notification said SAARC limited multilateral agreement on avoidance of double taxation and mutual administrative assistance in tax matters shall be applicable only in the member states where an adequate direct tax structure is in place. "In case of a member state where such a structure is not in place, this agreement shall become effective from the date on which such a member state introduces a proper direct tax structure and notifies the SAARC secretariat to this effect," the gazette notification said.
India is in the process of negotiating DTAA with 65 countries. This is to broaden the scope of article concerning exchange of information, specifically regarding banking and taxpayers not covered earlier.
Finance minister Pranab Mukherjee had recently unveiled a five pronged strategy to check and curb black money in the country. He said DTAA and Exchange of Taxation Information Agreement are two instruments under which information can be obtained and that the government has already amended pacts with 23 countries to get information from various banks.
"The central government hereby directs that all the provisions of the said agreement shall be given effect to in the Union of India with effect from 1st day of April, 2011," the official government Gazette notification said. According to the notification, the new agreement will apply to persons who are residents of one or more member states.
However, the notification said SAARC limited multilateral agreement on avoidance of double taxation and mutual administrative assistance in tax matters shall be applicable only in the member states where an adequate direct tax structure is in place. "In case of a member state where such a structure is not in place, this agreement shall become effective from the date on which such a member state introduces a proper direct tax structure and notifies the SAARC secretariat to this effect," the gazette notification said.
India is in the process of negotiating DTAA with 65 countries. This is to broaden the scope of article concerning exchange of information, specifically regarding banking and taxpayers not covered earlier.
Finance minister Pranab Mukherjee had recently unveiled a five pronged strategy to check and curb black money in the country. He said DTAA and Exchange of Taxation Information Agreement are two instruments under which information can be obtained and that the government has already amended pacts with 23 countries to get information from various banks.
Ministry releases new guidelines for eco-zones around national parks
New Delhi: The environment ministry has come out with new guidelines to create eco-sensitive zones (ESZs) around the protected areas to prevent ecological damages caused due to developmental activities around national parks and wildlife sanctuaries.
The new ESZ guidelines, declared by the ministry on February 9, would also ensure that these areas act as “shock absorbers” to the protected areas by regulating and managing the activities around such areas. The guidelines were updated on the ministry website today. “It is prerequisite that an inventory of different land-use patterns and the different types of activities, types and number of industries operating around each of the protected areas be made,” the ministry said.
For this purpose, the ministry has asked all states to constitute a committee comprising the wildlife warden, an ecologist and a revenue department official of the area concerned to suggest the requirement of an eco-sensitive zone and its extent.
The panel could also suggest the best methods to manage such zones and broad-based thematic activities to be included in the master plan for the areas, which have been classified as prohibited, restricted with safeguards and permissible. The guidelines said activities, including commercial mining, setting of saw mills and industries causing pollution, commercial use of firewood and major hydropower projects, are prohibited in such areas.
It also prohibits tourism activities like flying over protected areas in an aircraft or hot air balloon, and discharge of effluents and solid waste in natural water bodies or terrestrial areas.
Felling of trees, drastic change in agriculture systems and commercial use of natural water resources, including groundwater harvesting and setting up of hotels and resorts, are the activities regulated in the areas.
Activities permitted in the areas include ongoing agriculture and horticulture practices by local communities, rainwater harvesting, organic farming, adoption of green technology and use of renewable energy sources.
The width of the ESZ and type of regulation may vary from protected area to area. However, as a general principle, the width of the ESZ could go up to 10 kms around the protected area. The ministry said all states and union territories were asked to forward site-specific proposals to set up ESZs. But only few states have forwarded the proposals. “This ministry after careful consideration, has therefore, decided to frame guidelines to facilitate the state/union territory for declaration of eco-sensitive zones around national parks and wild life sanctuaries.”
The new ESZ guidelines, declared by the ministry on February 9, would also ensure that these areas act as “shock absorbers” to the protected areas by regulating and managing the activities around such areas. The guidelines were updated on the ministry website today. “It is prerequisite that an inventory of different land-use patterns and the different types of activities, types and number of industries operating around each of the protected areas be made,” the ministry said.
For this purpose, the ministry has asked all states to constitute a committee comprising the wildlife warden, an ecologist and a revenue department official of the area concerned to suggest the requirement of an eco-sensitive zone and its extent.
The panel could also suggest the best methods to manage such zones and broad-based thematic activities to be included in the master plan for the areas, which have been classified as prohibited, restricted with safeguards and permissible. The guidelines said activities, including commercial mining, setting of saw mills and industries causing pollution, commercial use of firewood and major hydropower projects, are prohibited in such areas.
It also prohibits tourism activities like flying over protected areas in an aircraft or hot air balloon, and discharge of effluents and solid waste in natural water bodies or terrestrial areas.
Felling of trees, drastic change in agriculture systems and commercial use of natural water resources, including groundwater harvesting and setting up of hotels and resorts, are the activities regulated in the areas.
Activities permitted in the areas include ongoing agriculture and horticulture practices by local communities, rainwater harvesting, organic farming, adoption of green technology and use of renewable energy sources.
The width of the ESZ and type of regulation may vary from protected area to area. However, as a general principle, the width of the ESZ could go up to 10 kms around the protected area. The ministry said all states and union territories were asked to forward site-specific proposals to set up ESZs. But only few states have forwarded the proposals. “This ministry after careful consideration, has therefore, decided to frame guidelines to facilitate the state/union territory for declaration of eco-sensitive zones around national parks and wild life sanctuaries.”
Monday, March 1, 2010
UK's Prudential confirms to buy AIG Asia for $35.5 bn
LONDON: Britain's Prudential said it would buy AIG's Asian life insurance arm for $35.5 bn, in a deal set to make the insurer the undisputed leader Where has US bailout money gone?More on Financial crisisWhy currency keeps fluctuatingin one of the world's fastest-growing financial services markets. The acquisition will be financed in part by a $20 billion equity capital raising, one of the biggest cash calls ever, and by a $5 billion debt issue, Prudential said on Monday, confirming an earlier Reuters report. Investors and analysts said they needed to know more about the finances of the AIG's Asian unit, AIA, before they could judge whether the deal could justify a capital-raising on that scale.
LONDON: Britain's Prudential said it would buy AIG's Asian life insurance arm for $35.5 bn, in a deal set to make the insurer the undisputed leader Where has US bailout money gone?More on Financial crisisWhy currency keeps fluctuatingin one of the world's fastest-growing financial services markets. The acquisition will be financed in part by a $20 billion equity capital raising, one of the biggest cash calls ever, and by a $5 billion debt issue, Prudential said on Monday, confirming an earlier Reuters report. Investors and analysts said they needed to know more about the finances of the AIG's Asian unit, AIA, before they could judge whether the deal could justify a capital-raising on that scale.
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