New Delhi: India's personal computer market grew 30% in 2010 — the highest since 2007, research firm IDC revealed. Hewlett Packard emerged the top company in India, leading in both notebook and desktop categories. HP regained market leadership after two quarters with a 17.3% market share, taking the pole position from Dell Inc that got 14.2% of the market.
Taiwan’s Acer followed the two with 11.5% market share. Notebooks were the hottest selling category with sales growing by 49% between October and December 2010 compared to the previous year. More than 10 lakh notebooks were sold in the 2010 fourth quarter. HP grabbed the largest market share of 26.2% while Dell and Acer secured second and third places.
Nearly 25 lakh personal computers were shipped to Indian consumers, pushing up the overall sales by 26%. IDC India’s lead PC analyst Sumanta Mukherjee noted sales in 2010 to be far better than ‘dismal’ 2009. “Consumers are the main architects of this recovery, supported by renewed buying sentiments displayed by the SMB and government segments,” he said. But warned that sales of Atom processor-based mini notebooks could come under increasing pressure, as competitive offerings of rivals start becoming available in March 2011.
“Emergence of media tablets will also impact this category in the long run,” he said. Around 14.5 lakh desktop PC units were sold in the fourth quarter last calender year, a 14% increase over 2009. HP held the lead in desktop PC sales with 10.86% of the market, followed by HCL with 10.78% and Acer at the third spot.
Success in my Habit
Monday, February 21, 2011
London partners with Indian banks for rural development
New Delhi/ Chandigarh: With the focus on enterprise development activities and to make the rural masses self-sustainable, the Commonwealth Secretariat, London, has partnered with public sector banks Corporation Bank and Central Bank of India to provide credit to young people, women and differently-abled youth living in rural areas of India.
While the Commonwealth Secretariat will provide mentoring, capacity building, monitoring and evaluation to the rural young entrepreneurs, the Banks will fund the projects. The Commonwealth-Central Bank of India-Corporation Bank-Youth Enterprise financing programme will create 1,500 jobs in the first phase.
Speaking to Business Standard, Commonwealth Secretariat (London) Advisor Ram Venuprasad said, “We partnered with Central Bank of India and Corporation Bank aimed at helping young people establish and develop their small businesses. The Bank would offer concessional loan rates to youth for enterprise development activities. We will support the bank’s funding through providing technical assistance to ensure entrepreneurs develop sufficient capacity in running sustainable businesses”.
He added, “This programme will act as a model for other Commonwealth countries in demonstrating a sustainable method of ensuring young people have access to finance. Under this programme, Corporation Bank has sanctioned Rs 14 crore and Central Bank of India has offered Rs 5 crore for the first project”.
He added, “Our focus is youth and converting them from job seekers to job creators. Basically, we would be imparting training to rural youth and women in agro-processing, tourism, services sector and others”. He was in the city along with 75 delegates representing 35 nations to attend ‘Eleventh Commonwealth-India Small Business Competitiveness Development Program. We are going to work with Corporation Bank in six districts namely Uddipi and Chickmagalur in Karnataka, Madurai (Tamil Nadu), Hyderabad, Sirmour (Himachal Pradesh) and Sahu ji Maharaj Nagar in Uttar Pradesh. Further, Central Bank is working in four districts with Commonwealth Secretariat namely Sawai Madhopur in Rajasthan, Ernakulum in Kerala, Musheerdabad in West Bengal and Shahu ji Maharaj Nagar in Uttar Pradesh.
Earlier, Central Bank of India CMD S Sridhar told Business Standard, “For the developing countries, I think micro, small and medium enterprise (MSME) development is the most important sector. For one, it provides employment and is also very important for inclusive socio-economic growth. Under the programme (youth enterprise development programme). we would sanction 80 projects”.
While the Commonwealth Secretariat will provide mentoring, capacity building, monitoring and evaluation to the rural young entrepreneurs, the Banks will fund the projects. The Commonwealth-Central Bank of India-Corporation Bank-Youth Enterprise financing programme will create 1,500 jobs in the first phase.
Speaking to Business Standard, Commonwealth Secretariat (London) Advisor Ram Venuprasad said, “We partnered with Central Bank of India and Corporation Bank aimed at helping young people establish and develop their small businesses. The Bank would offer concessional loan rates to youth for enterprise development activities. We will support the bank’s funding through providing technical assistance to ensure entrepreneurs develop sufficient capacity in running sustainable businesses”.
He added, “This programme will act as a model for other Commonwealth countries in demonstrating a sustainable method of ensuring young people have access to finance. Under this programme, Corporation Bank has sanctioned Rs 14 crore and Central Bank of India has offered Rs 5 crore for the first project”.
He added, “Our focus is youth and converting them from job seekers to job creators. Basically, we would be imparting training to rural youth and women in agro-processing, tourism, services sector and others”. He was in the city along with 75 delegates representing 35 nations to attend ‘Eleventh Commonwealth-India Small Business Competitiveness Development Program. We are going to work with Corporation Bank in six districts namely Uddipi and Chickmagalur in Karnataka, Madurai (Tamil Nadu), Hyderabad, Sirmour (Himachal Pradesh) and Sahu ji Maharaj Nagar in Uttar Pradesh. Further, Central Bank is working in four districts with Commonwealth Secretariat namely Sawai Madhopur in Rajasthan, Ernakulum in Kerala, Musheerdabad in West Bengal and Shahu ji Maharaj Nagar in Uttar Pradesh.
Earlier, Central Bank of India CMD S Sridhar told Business Standard, “For the developing countries, I think micro, small and medium enterprise (MSME) development is the most important sector. For one, it provides employment and is also very important for inclusive socio-economic growth. Under the programme (youth enterprise development programme). we would sanction 80 projects”.
India, Malaysia ink trade pact
New Delhi: India and Malaysia signed a Comprehensive Economic Cooperation Agreement (CECA) today, aiming in the short term to boost bilateral trade to $15 billion by 2015 from $9 billion now. The trade agreement would result in tariff reduction for goods ranging from bananas to basmati rice and easier movement of software engineers and doctors.
The agreement, to take effect from July 1, was signed in Putrajaya city adjoining Kuala Lumpur between commerce and industry minister Anand Sharma and Malaysia’s minister for international trade & industry, Mustapa Mohamed. Malaysian prime minister Mohd Najib Razak was present during the event.
“The India-Malaysia CECA is a comprehensive and ambitious agreement that envisages liberal trade in goods and services and a stable and competitive investment regime to promote foreign investment between the two countries. The goods package under the CECA takes the tariff liberalisation beyond the India-Asean FTA commitments on items of mutual interest for both the countries,” stated an official statement by the ministry of commerce and industry.
This agreement covers trade in goods, services, investment and economic cooperation. Malaysia is a key member in the Association of South East Asian Nations (Asean) grouping, with which India signed a goods agreement in August 2009. A negotiation to have a deal in services with Asean is currently underway.
Asean comprises Malaysia, Indonesia, Singapore, Philippines, Thailand, Brunei, Vietnam, Laos, Myanmar and Cambodia.
“We expect the CECA with Malaysia will particularly benefit India’s services sector. As we have not seen much progress in services under the umbrella agreement with Asean, having bilateral deals with member-countries covering trade in services and investment simultaneously with trade in goods is a smart strategy,” said Amit Mitra, secretary general, Ficci.
India is to obtain greater access to Malaysian markets for mangoes, bananas guavas, basmati rice, two-wheelers and cotton garments. In services, professionals can look forward to easier visa norms from several sectors such as accounting and auditing, architecture, urban planning, engineering services, medical and dental, information technology and enabled services, and management consulting services.
Malaysia has also allowed 50 per cent foreign direct investment in construction companies in the deal, benefiting Indian real estate firms looking to venture there, besides enabling greater job opportunities for Indian architects and interior designers.
This is a significant achievement for India as Malaysia has a policy – Bumiputra - which mandates 30 per cent equity participation by local firms.
“Malaysia is one of the major investors in India. It can be a major source for tapping our investment need in infrastructure development projects,” said Ramu S. Deora, president, Federation of Indian Export Organisations.
The agreement, to take effect from July 1, was signed in Putrajaya city adjoining Kuala Lumpur between commerce and industry minister Anand Sharma and Malaysia’s minister for international trade & industry, Mustapa Mohamed. Malaysian prime minister Mohd Najib Razak was present during the event.
“The India-Malaysia CECA is a comprehensive and ambitious agreement that envisages liberal trade in goods and services and a stable and competitive investment regime to promote foreign investment between the two countries. The goods package under the CECA takes the tariff liberalisation beyond the India-Asean FTA commitments on items of mutual interest for both the countries,” stated an official statement by the ministry of commerce and industry.
This agreement covers trade in goods, services, investment and economic cooperation. Malaysia is a key member in the Association of South East Asian Nations (Asean) grouping, with which India signed a goods agreement in August 2009. A negotiation to have a deal in services with Asean is currently underway.
Asean comprises Malaysia, Indonesia, Singapore, Philippines, Thailand, Brunei, Vietnam, Laos, Myanmar and Cambodia.
“We expect the CECA with Malaysia will particularly benefit India’s services sector. As we have not seen much progress in services under the umbrella agreement with Asean, having bilateral deals with member-countries covering trade in services and investment simultaneously with trade in goods is a smart strategy,” said Amit Mitra, secretary general, Ficci.
India is to obtain greater access to Malaysian markets for mangoes, bananas guavas, basmati rice, two-wheelers and cotton garments. In services, professionals can look forward to easier visa norms from several sectors such as accounting and auditing, architecture, urban planning, engineering services, medical and dental, information technology and enabled services, and management consulting services.
Malaysia has also allowed 50 per cent foreign direct investment in construction companies in the deal, benefiting Indian real estate firms looking to venture there, besides enabling greater job opportunities for Indian architects and interior designers.
This is a significant achievement for India as Malaysia has a policy – Bumiputra - which mandates 30 per cent equity participation by local firms.
“Malaysia is one of the major investors in India. It can be a major source for tapping our investment need in infrastructure development projects,” said Ramu S. Deora, president, Federation of Indian Export Organisations.
Bigger opportunity in India's smaller cities
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.
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.
India, Japan target $25-bn trade by '14
New Delhi: India and Japan have set a target of achieving $25 billion worth of bilateral trade by 2014 from the present $10.3 billion even as both countries have signed the much-awaited Comprehensive Economic Partnership Agreement (Cepa) that will see about 94 per cent tariff reduction in goods ranging from cars to shrimps and easier movement of nurses and chefs.
The deal was signed between Commerce and Industry Minister Anand Sharma and Japanese Foreign Minister Seiji Maehara in Tokyo. It was formally agreed upon by Prime Minister Manmohan Singh and his Japanese counterpart Naoto Kan last year in October.
“India stands to gain significantly through this agreement and 90 per cent of tariff lines are covered while Japan has covered 5 per cent more lines than India. The agreement has ensured that the sensitive sectors for India are fully protected. These include agriculture, fruits, spices, wheat, basmati rice, edible oils, wines and spirits and also certain categories of industrial products such as auto and auto parts,” said an official statement by the ministry of commerce and industry.
On a trade value basis, while Japan has agreed to 97 per cent tariff reduction in trade in goods, India has consented for 90 per cent duty abolition, according to the Embassy of Japan’s communiqué. The number of Japanese firms in India has doubled in last three years taking the total investments from Japan to India to more than 800 billion Yen, according to Japanese official data.
However, as a result of this deal companies from both countries such as Mitsubishi Religare Enterprises Ltd, Heavy Industries, Toshiba, Dai-Ichi, JSW, Hitachi, L&T, NTPC, Panasonic, Sony and Marubeni India Pvt would stand to gain.
Besides getting a liberal access to Japan’s $5 trillion economy, India would also now be able to access the Japanese pharmaceutical sector while imports of petrochemicals, chemicals, textile, readymade garments, cement and jewellery would be cheaper.
Japan has also agreed to give same treatment to the Indian generics in line with its domestic pharmaceutical industry.
On several farm products, forest items and marine products such as lumbers, shrimps and prawns, durian and asparagus, there would 3-6 per cent tariff reduction immediately after the agreement comes into force by April 1.
In other agriculture and marine commodities such as black tea, frozen octopus, capsicum, curry and sweet corn, Chinese yam, peach and strawberries, tariffs would be gradually reduced in the next 7-10 years.
In industrial goods, elimination of duties in auto parts such as diesel engines and gear boxes would be done over a period of 10 years. Similarly, duties would be reduced by about 94 per cent in DVD players, video cameras and steel sheets, plates and alloys within the next 5-10 years.
“As the majority of Japan’s non-agricultural tariff lines will see immediate duty elimination for exports from India, with a strategic approach, India can significantly improve its share in Japan’s total imports from the existing low level of 0.7 per cent. India also stands to benefit in services,” highlighted Secretary General, Federation of Indian Chambers of Commerce and Industry (FICCI), Amit Mitra. As part of the trade in services, both countries would soon be establishing a social-security agreement, specifically for Indian qualified nurses and Japanese certified care-workers. This agreement is expected to be signed by 2014, the consultations for which have already begun this year in January.
Under Cepa, Japan has also agreed to provide liberalised access for Indian professionals and service providers such as chefs, nurses, English language teachers, accountants, advertisers and tourist guides.
“The trade relationship between our two countries has been far below its true potential. We are certain that Cepa will lead to a quantum increase in bilateral trade and investment flows, by relaxing barriers to trade in goods, services and movement of natural persons, besides enhanced cooperation on protection of intellectual property,” said President, Confederation of Indian Industry (CII), Hari S Bhartia from Tokyo.
Both countries would be creating a sub-committee that would explore the feasibility of a Mutual Recognition Arrangement (MRAs) for certain specific sectors such as electrical products, telecommunications and radio equipment among others. The sub-committee would be meeting within three months from the implementation of Cepa.
India and Japan have also agreed to the creation of a joint revolving fund of $9 billion for kick-starting the ambitious 1483-km-long Delhi-Mumbai Industrial Corridor Project running through six states of Delhi, Uttar Pradesh, Haryana, Rajasthan, Gujarat and Maharashtra.
The India-Japan global partnership summit would also take place in Tokyo from September 5-7 to promote collaboration and increase investments between both the countries.
The deal was signed between Commerce and Industry Minister Anand Sharma and Japanese Foreign Minister Seiji Maehara in Tokyo. It was formally agreed upon by Prime Minister Manmohan Singh and his Japanese counterpart Naoto Kan last year in October.
“India stands to gain significantly through this agreement and 90 per cent of tariff lines are covered while Japan has covered 5 per cent more lines than India. The agreement has ensured that the sensitive sectors for India are fully protected. These include agriculture, fruits, spices, wheat, basmati rice, edible oils, wines and spirits and also certain categories of industrial products such as auto and auto parts,” said an official statement by the ministry of commerce and industry.
On a trade value basis, while Japan has agreed to 97 per cent tariff reduction in trade in goods, India has consented for 90 per cent duty abolition, according to the Embassy of Japan’s communiqué. The number of Japanese firms in India has doubled in last three years taking the total investments from Japan to India to more than 800 billion Yen, according to Japanese official data.
However, as a result of this deal companies from both countries such as Mitsubishi Religare Enterprises Ltd, Heavy Industries, Toshiba, Dai-Ichi, JSW, Hitachi, L&T, NTPC, Panasonic, Sony and Marubeni India Pvt would stand to gain.
Besides getting a liberal access to Japan’s $5 trillion economy, India would also now be able to access the Japanese pharmaceutical sector while imports of petrochemicals, chemicals, textile, readymade garments, cement and jewellery would be cheaper.
Japan has also agreed to give same treatment to the Indian generics in line with its domestic pharmaceutical industry.
On several farm products, forest items and marine products such as lumbers, shrimps and prawns, durian and asparagus, there would 3-6 per cent tariff reduction immediately after the agreement comes into force by April 1.
In other agriculture and marine commodities such as black tea, frozen octopus, capsicum, curry and sweet corn, Chinese yam, peach and strawberries, tariffs would be gradually reduced in the next 7-10 years.
In industrial goods, elimination of duties in auto parts such as diesel engines and gear boxes would be done over a period of 10 years. Similarly, duties would be reduced by about 94 per cent in DVD players, video cameras and steel sheets, plates and alloys within the next 5-10 years.
“As the majority of Japan’s non-agricultural tariff lines will see immediate duty elimination for exports from India, with a strategic approach, India can significantly improve its share in Japan’s total imports from the existing low level of 0.7 per cent. India also stands to benefit in services,” highlighted Secretary General, Federation of Indian Chambers of Commerce and Industry (FICCI), Amit Mitra. As part of the trade in services, both countries would soon be establishing a social-security agreement, specifically for Indian qualified nurses and Japanese certified care-workers. This agreement is expected to be signed by 2014, the consultations for which have already begun this year in January.
Under Cepa, Japan has also agreed to provide liberalised access for Indian professionals and service providers such as chefs, nurses, English language teachers, accountants, advertisers and tourist guides.
“The trade relationship between our two countries has been far below its true potential. We are certain that Cepa will lead to a quantum increase in bilateral trade and investment flows, by relaxing barriers to trade in goods, services and movement of natural persons, besides enhanced cooperation on protection of intellectual property,” said President, Confederation of Indian Industry (CII), Hari S Bhartia from Tokyo.
Both countries would be creating a sub-committee that would explore the feasibility of a Mutual Recognition Arrangement (MRAs) for certain specific sectors such as electrical products, telecommunications and radio equipment among others. The sub-committee would be meeting within three months from the implementation of Cepa.
India and Japan have also agreed to the creation of a joint revolving fund of $9 billion for kick-starting the ambitious 1483-km-long Delhi-Mumbai Industrial Corridor Project running through six states of Delhi, Uttar Pradesh, Haryana, Rajasthan, Gujarat and Maharashtra.
The India-Japan global partnership summit would also take place in Tokyo from September 5-7 to promote collaboration and increase investments between both the countries.
Indian-origin doctor Srinivasan Madhusudan given UK honour
New Delhi: Srinivasan Madhusudan, a doctor of Indian-origin, has received the Goulstonian lectureship for 2011 by the Royal College of Physicians, London. The lecturership, which dates back to 1635, is one of the most prestigious ones, and considered as the highest honour that can be awarded for academic excellence.
Dr Madhusudan received his Bachelor of Medicine and Bachelor of Surgery (MBBS) from Dr MGR Medical University, Tamil Nadu, in 1994. He currently serves as the Clinical Associate Professor in Medical Oncology at the School of Molecular Medical Sciences and is a Consultant Medical Oncologist at Nottingham Cancer Centre .
Dr Madhusudan will deliver the lecture later in 2011. The lecture will be on his translational research targeting DNA base excision repair, an innovative approach for personalised cancer therapy.
Dr Madhusudan received his Bachelor of Medicine and Bachelor of Surgery (MBBS) from Dr MGR Medical University, Tamil Nadu, in 1994. He currently serves as the Clinical Associate Professor in Medical Oncology at the School of Molecular Medical Sciences and is a Consultant Medical Oncologist at Nottingham Cancer Centre .
Dr Madhusudan will deliver the lecture later in 2011. The lecture will be on his translational research targeting DNA base excision repair, an innovative approach for personalised cancer therapy.
Indian doctor awarded for community service
New York: Dr Shuvendu Sen, MD has recently received the 2011 Oscar Edwards E. Award from American College of Physicians (ACP) in North Carolina for outstanding contributions to Community. Presently, attending Physician of Internal Medicine at Betsy Johnson Hospital, North Carolina, Dr Sen has been instrumental in the implementation of a voluntary organization called Project Access in his County for the treatment of uninsured and low income population.
Sen was awarded at the Washington Inn, Duke University, North Carolina by the ACP Governor Byron Hoffman Jr, MD on Jan 28th,2011. He is currently serving as the Chief Editor of a medical text book titled Principles of Clinical Medicine, to be published in 2012.
Sen was awarded at the Washington Inn, Duke University, North Carolina by the ACP Governor Byron Hoffman Jr, MD on Jan 28th,2011. He is currently serving as the Chief Editor of a medical text book titled Principles of Clinical Medicine, to be published in 2012.
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.”
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