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TRAI proposes up to 80% cut in mobile roaming rates

Written By Unknown on Jumat, 27 Februari 2015 | 23.25

Under the latest draft amendment of Telecommunication Tariff Order, TRAI has proposed to cut down maximum charges that can be imposed on outgoing local calls during roaming to 65 paise per minute, from ceiling rate of Re 1 per minute.

Mobile subscribers can look forward to lower charges as telecom regulator TRAI has proposed a sharp cut of about 35 percent for making calls and up to 80 percent for sending messages while roaming.

"Through the Amendment Order, the Authority intends to reduce the ceiling tariffs for national roaming services," the Telecom Regulatory Authority of India said in a statement.

Under the latest draft amendment of Telecommunication Tariff Order, TRAI has proposed to cut down maximum charges that can be imposed on outgoing local calls during roaming to 65 paise per minute, from ceiling rate of Re 1 per minute.

It has proposed to cut STD call rates during roaming to Re 1 per minute, from maximum charge of Rs 1.5 per minute. For incoming calls, the regulator wants telecom companies to charge a maximum of 45 paise per minute, instead of 75 paise permitted at present. Besides, it has proposed a maximum of 25 paise per STD SMS sent by customers when they are roaming, compared to the prevailing ceiling tariff of 1.5 paise per SMS.

Trai has also said that local SMS should be charged a maximum of only 20 paise compared Re 1 that can be levied at present. The regulator has sought comments from stakeholders by March 13, after which it will issue the final order.


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Motorcycle maker Yamaha to launch small cars in Europe

The firm has been mulling manufacturing four-wheel vehicles for years, exhibiting a prototype 1,000 cc engine car and an electric-car battery at the 2013 Tokyo Motor Show.

Japanese motorcycle giant Yamaha will join the four-wheel market by launching small cars in Europe as early as 2019 to meet rising demand for energy-efficient vehicles, a company official said Today.

The firm has been mulling manufacturing four-wheel vehicles for years, exhibiting a prototype 1,000 cc engine car and an electric-car battery at the 2013 Tokyo Motor Show.

Yamaha is planning to build car plants in Europe to sell them in the region before 2020, the company spokesman said, without elaborating.

"As small cars are already prevalent in Europe, our first car launch will be (there)," he said. "But we are also studying opportunities in emerging countries" as well, he added.

His comments were in response to an interview with company chief Hiroyuki Yanagi that appeared in the leading Nikkei business daily, in which he said Yamaha will supply its own engines for the new European market cars, while outsourcing some other parts production.

While it is best known for its motorcycles, Yamaha has worked with Toyota on car engine development since the mid-sixties, supplying more than three million engines to the world's biggest automaker over that period.


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No incentive for anyone to enter REITs: CBRE South Asia

For REITs to take off in India, the government needs to provide clarity on the tax structure, says Anshuman Magazine, chairman and  managing director of CBRE South Asia. The tax outgo is much less if a company is listed in India and Singapore, sans REITs, he says.

Under normal listing, the tax comes to 25 percent in India and 13 percent in Singapore, whereas under REITs it is around 50 percent, he says. He adds that foreign investors will only be interested if there is tax clarity on REITs.

According to him, capital gains from exchange of special purpose vehicle (SPV) share must not be subject to MAT.

Below is the verbatim transcript of Anshuman Magazine's interview with Anuj Singhal and Ekta Batra on CNBC-TV18.

Anuj: What are the major tax issues in real estate investment trust (REITs) and how can those be solved?

A: No, in fact what has happened is we are expecting some clarifications on the tax side. So today if you were to do a REITs structure in India, taxation – the tax is less if you are listing in Singapore or listing in the Indian stock exchange. For example, if you are doing a REITs structure, you are paying almost 50 percent tax so it is 30+20 corporate tax and dividend distribution tax (DDT). If you were to just do a normal listing, the tax comes to 24 percent and if you were listing in Singapore it is 13 percent. So there is no incentive for anybody to get into a REITs structure. There are a lot of small things, the major one-two things are that there is a capital gains tax, if you are transferring your assets into a REITs structure.

The second is when you are selling assets to form a REITs structure, again there is a capital gains tax and all this what it does is it yields to the investors also comes down and there is no investment - there is no attraction for any developer to list. The other thing is also that there is a minimum alternate tax (MAT), which is when you are exchanging shares to - if you are holding special purpose vehicle (SPV) where you are holding all the assets which will be 10-15-20 billion, which are rent producing and when you exchange those shares for REITs units, there is a MAT, which has been put on it. So that is another tax. So all these different taxes at different levels make it unattractive for anybody to do the structure.

Ekta: Currently out of MAT, DDI and capital gains deferrals -- which one is the most important one that you will want to hear on to solve the problem of REITs?

A: Capital gains definitely is an important one and the dividend distribution at the SPV level. These two and like I said, I have only mentioned 3-4, there were many other smaller ones which I don't want to go into, the details but these would be the top two which will make a difference. The fact is that the government has announced REITs. I am sure they wanted to come into - it is not only for theory, they want REITs structure to come in. The advantages of REITs are obvious. In today's market, this is going to bring in some liquidity which is required because there is a liquidity problem. What is not understood is besides bringing in liquidity, making the market more transparent, efficient, this will also encourage more investors to come into India especially from outside because REITs provides an exit. So to institutions or institutional assets so for example, if a private equity player or investor from outside comes in and invests in development in India, he knows there is a REITs structure, he can exit after two-three years, five years, seven years whenever he wants to, which itself attracts capital because if you are investing in the US or any other mature market, the foreign investor knows and even that he has other institutions will buy its assets which is literally absent in India right now. Besides foreign investors, even domestic institutional investors would be encouraged to invest in real estate because they know there are these REITs structure which are run professionally, they are listed, there is more transparency and they have the funds which will buy investments that other institutions have made.

Anuj: Any specific real estate company that will benefit out of the tax clarity on REITs?

A: I wouldn't like to take any names but there are many developers and now other institutions who are sitting on income yielding assets so anybody who is sitting on especially the office developments and in India because in other countries there are other segments but primarily offices which are rented out so they own that asset. So in India a lot of times, people just presale so they don't have ownership of fully developed office buildings which are rented out. So any institution, any developer who has got a portfolio of office buildings, which he owns, which are fully occupied or tenanted will benefit from this.

Ekta: Do you expect the REIT kind of structure to be introduced for other sectors like infrastructure, power, renewable?

A: Absolutely, this is not only REITs, there is also Infrastructure Investment Trusts (InvITs), which the government has announced and that would also require similar tax exemptions. I think it is a fantastic tool like I mentioned not only it brings liquidity but the big difference is for infrastructure ore real estate, it will move to institutions owning assets like it has done in mature markets. Like I mentioned that brings in transparency, encourages more investors, retail investors can participate. As you know in India the saving rates are quite high, the participation in the capital markets or in the stock markets, in the public markets, although it is expanded, it is still not there where it should be and when you create structures like this, one end we talk about strategy liquidity, on the other hand we have so much sitting in banks, in low yielding financial instruments and hopefully with these structures that money would go not only into real estate but also into infrastructure projects. Infrastructure is the number one, prime need of our country. If we have to move to the next level, we cannot and everybody knows we cannot move without infrastructure. So therefore an infrastructure needs money, need funding. Therefore it becomes more important that we encourage and these structures be it REITs or InvITs which will really help the infrastructure sector.

Anuj: What is your gut feeling, do you think any clarity will come on REITs in this Budget or again do you think the market will be disappointed?

A: It is very difficult to give a number, I hope if it is a high number for announcement being made in the Budget but my gut feel is that in case Budget doesn't cover it fully, in net few month time we will get clarification and the simple reason is -- we have said that the government has announced it. For me they have not announced it for a fun of it, they want these structures to come in. there has been interacting the industry taking suggestions so I am quite hopeful even if this is not covered in the Budget fully or partially, it will come in next few months time because without this, REITs structure will not come in and if they don't come then the announcement does not have any purpose.


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Union Budget 2015: Housing for all to boost ind demand: Cera Sanitaryware

Atul Sanghvi, ED of Cera Sanitaryware spoke about the likely benefits from government's focus on sanitation and low housing and housing for all

Affordable housing will be the one where we anticipate a big benefit for companies like us.

Atul Sanghvi, ED of  Cera Sanitaryware spoke about the likely benefits from government's focus on sanitation and low housing and housing for all.

Below is the transcript of Atul Sanghvi's interview with Reema Tendulkar and Ekta Batra on CNBC-TV18.

Reema: Can you walk us through the expectations of your industry from the Budget?

A: As the Prime Minister (PM) has announced housing for all by 2022, we anticipate that there will be a big boost in the demand of housing and especially for companies like us. We are very eager to see what exactly transforms in the case of 100 smart cities because I believe that the affordable housing will be the foundation for the smart cities.

Ekta: Can you tell us whether you are already the beneficiary of government orders and in which segment and by how much?

A: Enquiries have started flowing in.

Ekta: Enquiries from where and which segment and for what?

A: We are getting the enquiries for sanitaryware from the corporates who are planning the corporate social responsibility (CSR) activities in sanitation.

Reema: Keeping Swachh Bharat in mind, would you also get into other segments, which could be a beneficiary of that. For instance pipes as well as jet sprays, you are not currently present in that but would that be a segment which would interest you?

A: At the moment, we have decided to concentrate in our core business of sanitaryware and faucets.

Ekta: There was an announcement of bio-toilets in the Railway Budget yesterday; would that in any way be of benefit to you?

A: We are not into that.

Ekta: If you had to tell us whether you have to benefit from one certain programme the most, which one would it be, would it be affordable housing, Swachh Bharat or something else?

A: Affordable housing will be the one where we anticipate a big benefit for companies like us.

Reema: So far you have not got any orders from the government per se?

A: No.

Reema: Would the margins in low cost housing be different from the margins you enjoy otherwise?

A: Definitely, there will be difference. The margins in low cost housing will be less than 50 percent of what we are doing right now.

Reema: If you start targeting, tapping that opportunity should we assume that your margins would be lower than compared to what they are right now?

A: We have to take a balance otherwise overall profitability will get affected.

Cera Sanitary stock price

On February 27, 2015, Cera Sanitaryware closed at Rs 2585.00, down Rs 20, or 0.77 percent. The 52-week high of the share was Rs 2884.00 and the 52-week low was Rs 747.20.


The company's trailing 12-month (TTM) EPS was at Rs 51.27 per share as per the quarter ended December 2014. The stock's price-to-earnings (P/E) ratio was 50.42. The latest book value of the company is Rs 176.98 per share. At current value, the price-to-book value of the company is 14.61.


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IT cos see Chennai as an attractive investment destination

High profile shut downs including Nokia, Motorola and Foxconn, it's surely not been great going for big businesses in Chennai. However if real estate transactions are anything to go by, light seems to be emerging at the end of the tunnel

High profile shut downs including Nokia, Motorola and Foxconn, it's surely not been great going for big businesses in Chennai. However if real estate transactions are anything to go by, light seems to be emerging at the end of the tunnel, reports CNBC-TV18's Jude Sannith.


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Tata Motors' offers VRS to workers

The firm's domestic business has been under pressure for a while now. In the third quarter, it posted a loss of over Rs 2,100 crore on a standalone basis.

Tata Motors  has launched a voluntary retirement scheme for workers across its India plants. The firm's domestic business has been under pressure for a while now. In the third quarter, it posted a loss of over Rs 2,100 crore on a standalone basis. In this light, the VRS will help create a more agile organisational framework.

The vrs has been offered to workers above 40 years of age and the company believes that workers at its older plants in Pune and Jamshedpur are more likely to consider it. The offer will remain open till the March 27.

The terms of the VRS state that workers can avail of basic pay in addition to dearness allowance and this will be payable on a monthly basis till the worker turns 60. What this means is that there won't be a one-time exceptional outflow of funds in a single quarter once the VRS payment starts.

As part of the VRS, the company will also provide workers with medical cover for 10 years after the separation.

The company has told CNBC-TV18 that as of now, the VRS offer has only been made to workers but it could be extended to managerial staff in the future.

Tata Motors stock price

On February 27, 2015, Tata Motors closed at Rs 575.50, up Rs 15.30, or 2.73 percent. The 52-week high of the share was Rs 612.05 and the 52-week low was Rs 379.15.


The latest book value of the company is Rs 59.58 per share. At current value, the price-to-book value of the company was 9.66.


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SBI gets shareholders nod for raising Rs 15K cr from market

Written By Unknown on Kamis, 26 Februari 2015 | 23.26

State Bank of India  (SBI) on Thursday received shareholders' approval for raising Rs 15,000 crore through a public offer, including a rights issue, to fund business and meet global capital adequacy norms.

The general meeting held on Thursday approved "to create, offer, issue and allot, such number of equity shares of Re 1 each, not exceeding Rs 15,000 crore or such amount as approved by the Government of India and RBI" SBI said in a filing to the BSE.

It would be "subject to the condition that the government's shareholding in equity share capital of the bank does not fall below 52 percent at any point of time, by way of public issue" it said.

Public issue, it said, would include follow on public offer or rights issue or private placement including QIP, ADR, GDR or any other mode decided by the board. Shares of the country's largest lender closed at Rs 289.55 per unit, up 2.03 percent. The bank requires adequate capital to match the anticipated growth in asset and comply with stipulated level of capital adequacy.

The move comes in the backdrop of the Cabinet permitting banks to lower the government holding from 58 percent to 52 percent enabling lenders to raise funds from the market to meet Basel III norms. Government of India holds 58.60 percent stake in the bank. Last year, the bank raised Rs 8,032 crore by selling shares through the qualified institutional placement route to fund its business growth.

Besides, the government infused Rs 2,000 crore capital in the bank during the last fiscal. For the current fiscal, the government has earmarked Rs 11,200 crore for capital infusion in various public sector banks including SBI. The disbursement may take place during this quarter.

The statement further said that the quantum and mode, number of tranches, price or prices, discount or premium, reservations to employees, customers, existing shareholders will be decided by the board at a later date.

SBI had raised over Rs 16,000 crore through a rights issue in 2008. In the last SBI rights issue, the government contribution was in the form of bonds to the bank instead of cash.

Earlier this month, HDFC Bank  raised about Rs 10,000 crore by selling American Depository Receipts and India-listed shares to qualified institutional investors in the largest follow-on offer by a private sector firm.

The bank raised USD 1,270.72 million (about Rs 8,000 crore) by issuing 22 million ADS to global investors. It raised about Rs 2,000 crore from a QIP (Qualified Institutional Placement) in the domestic market. 

SBI stock price

On February 26, 2015, State Bank of India closed at Rs 289.55, down Rs 6, or 2.03 percent. The 52-week high of the share was Rs 2977.85 and the 52-week low was Rs 276.00.


The company's trailing 12-month (TTM) EPS was at Rs 16.61 per share as per the quarter ended December 2014. The stock's price-to-earnings (P/E) ratio was 17.43. The latest book value of the company is Rs 158.43 per share. At current value, the price-to-book value of the company is 1.83.


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Rail Budget 2015: Pledge to re-invigorate Railways, says Suresh Prabhu

In a post-Budget interaction with the media, Prabhu said a sum of Rs 6,581 crore has been approved to remove around 3,500 level-crossings. He said the ministry has rationalised freight rates in terms of classification.

The Railway Budget has focussed on issues like safety, increasing quota for senior citizens, said minister Suresh Prabhu.

In a post-Budget interaction with the media, Prabhu said a sum of Rs 6,581 crore has been approved to remove around 3,500 level-crossings. He said the ministry has rationalised freight rates in terms of classification.

Stating that Railways cannot depend on sole source of gross budgetary support, Prabhu said the government is looking at various options to raise money. "A large government organisation has committed Rs 20,000-crore investment in Railways, besides we are also in talks with the World Bank for funding.


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Tata-LT consortium shortlisted for mega defence project

In order to give a push to government's defence programme, the ministry has awarded battlefield management system (BMS) development contracts to two consortiums. According to sources, one comprises of  Tata Power SED and L&T Defence and the other consortium includes  BEL and Rolta .

The government will fund 80 percent of the prototype cost and partners will be expected to fork out the remaining 20 percent. The two consortiums are required to develop the prototype in 18-24 months.

Speaking exclusively to CNBC-TV18, MV Kotwal of  L&T said share of Tata Power and L&T is same in the consortium. He also added that the final order win will be between one of the two consortiums.

Below is the transcript of MV Kotwal's interview with Menaka Doshi, Anuj Singhal and Varinder Bansal on CNBC-TV18.

Menaka: We have some preliminary details on this big defence order of the size of Rs 50,000 crore which we understand has been bagged by two different consortia. Around 70 percent of that order has gone to a consortium between BEL and Rolta and 30 percent of that order has come to you and Tata Power as the second consortia. What details can you share with us on this front?

A: Actually, this needs a lot of clarification. First of all this is not an order, it is a programme called Battlefield Management System (BMS) which is part of a 'Make India' programme. The part of the scheme is that they call companies interested in this which they did in last April and we submitted expression of interest and they have now shortlisted the top two.

The scheme is that the top two companies or consortia will be given the chance to produce prototype systems which they would have to field and after they are fielded they would to go through a set of tests and then the chosen party will get the majority of this business.

Today, there has been a short listing of the top two and that includes one, the consortia which you talked about between BEL and Rolta and a second is the consortium, which is between Tata Power SED and L&T; in this particular case led by Tatas. The share of both partners is almost equal and this is the consortium which is announced.

The process of development of the prototype will then commence and 80 percent of the funding for development will be provided by the government of India where 20 percent would be provided by the concerned consortium. This is a normal process of the Make India programme where out of the interested parties the top two are selected, two parties are given 80 percent funding by the government to develop prototype systems and then finally after the due testing then the selected party gets the majority of business.   

Menaka: Is it like a prototype beauty pageant, if you win the beauty pageant you get the order, if you don't, you don't get the order?

A: No it is not like that, for example there will be two systems developed and at the end of the development process which may itself take a few years and after that the one that is selected normally would get a larger portion of that business.

Therefore, the total business as envisaged today is between Rs 40-50,000 crore. But it is not yet an order, this is like a selection for the development partner and there will be two selected partners.

Menaka: Is the Swayamvar down to two?

A: Yes.

Menaka: Now you'll compete, if you win you stand to gain from an order that sort of represents the majority of that Rs 30-40,000 crore business. It could be an order to the tune of Rs 20,000 crore or Rs 25,000 crore executable over 5-10 years.

A: Yes, after the development process is over. And during the development process, 80 percent funding is provided by the government.

Menaka: Only 20 percent comes out of your pocket over the period of time. Is that 20 percent material in any way that we should know about, will it show up in your financial earnings suddenly as a blip in some quarter in the next two years?

A: The teams will now get together with the user agencies and then we will chalk out what exactly the details are involved in the development process and then we will get a better picture.

The sums involved will be little more than Rs 500 crore for the development process itself but how much they will be, they will come out a little later.

Menaka: It isn't time yet to congratulate you in any fashion?

A: First of all it is a very tough thing to get short listed among the top two. We similarly got short listed in the tactical communications system which was a first one and in that again the consortium that time was led by L&T and part of it is Tata Power.

We got selected so in both these very major programmes of very great tactical communication systems and the BMS, both part have got involved and that is something which is really very difficulty to get as 14 parties were y called for the BMS and that is how the selection was done.

Varinder: I wanted to know that 70-30 ratio which is being talked in the market, is it right to understand that going ahead after two years or 18 months, that will be the proportion which will be divided between two consortiums or is it too early to even discuss about that?

A: It is a bit premature; the reason is very simple that these systems are very complex. It is not something which you just buy off what is available and so, the two parties will independently develop systems which meet customers or the end users requirement.

The user will then get to test both of them and then pick and choose which are the features of which they would want in the final system. So, the composition of how much each consortium will share is rather premature to talk about.

Menaka: Exactly what is it that this BMS entails? Can you talk about what it is that you are building as a prototype or is that classified?

A: In short it is a command and control system. What happens in today's warfare, the digitalised warfare as you call it, you need communication between the command centre and finally the soldier. So, it is a part of the whole process which is called OODA which is Observe, Orient, Decide and Act. That is the kind of loop which is normally used.

This will be a unique system which will place the Indian army on a much higher pedestal because right from the command centre to the soldier who is on the field there will be a complete system which will gather information on what is happening and get back to the final decision on actual actions to be taken.

It is a very complex encrypted system and therefore it will really place us amongst the top forces in the world once such a scheme is implemented.

Varinder: What are the chances that after 18 or 24 months, even after developing the prototype, will it be final that these two consortiums will bag the final order or there could be a slip between the cup and the lip?

A: No, that is absolutely certain. The whole foundation of 'Make India' programme - first of all why such a thing was required is because we are talking about systems which do not exist as readymade system hence have to be absolutely designed to suit our own requirements.

It is a very secure system and is really good that apart from the traditional organisations like BEL other now organisations have also been given a chance. To even qualify or be selected we have to have a track record of having supplied various equipments over the years which have given confidence to the MoD that we can meet the requirements.

Menaka: Will it be down to these two consortia to bag proportions of that order?

A: Absolutely.

Menaka: You keep referring to Make in India or Make India rather. That is the defence programme, right? You are not referring to the Modi government's programme because you said you were called in April and at that point the government hadn't even been elected.

A: No, it is good you brought out this because there is often confusion. Make India is a categorisation of the procurement policy of the Government of India which has been announced sometime back.

The first programme in that category was the tactical communication system which for some years back it has been done because there were some formalities because of which it has not yet got activated but it will soon get activated now we expect.

The second programme is the Battlefield Management and there are several more major programmes which major programmes that are coming into this category. This is quite different from the Make in India which is a general term applicable across.

So, Make India is basically a defence procurement category and this is exclusively meant for systems or equipments which do not readily exist. They have to be developed, designed and built and so there is lot of development, R&D involved. That is why it is quite exciting for us.         


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Govt clears criteria to appoint 5 PSU bank chiefs

The Appointments Committee of Cabinet today approved the criteria and method for selection of managing director and chief executive officers in five public sector banks -- posts that have been lying vacant for long.

The Appointments Committee of Cabinet today approved the criteria and method for selection of managing director and chief executive officers in five public sector banks -- posts that have been lying vacant for long.

The five banks are Bank of Baroda , Punjab National Bank , Bank of India , Canara Bank  and IDBI Bank .

"The guidelines envisage that both governmental and non-governmental candidates can apply," the government release stated. "The candidate should have at least 15 years of mainstream banking experience, of which three years should at least be at the Board level. The candidate should be in the age group of 45 to 55 years and will have a fixed tenure of three years, subject to normal age of superannuation of 60 years."

Bank of Baroda stock price

On February 26, 2015, Bank Of Baroda closed at Rs 172.40, down Rs 4.8, or 2.71 percent. The 52-week high of the share was Rs 231.50 and the 52-week low was Rs 101.80.


The company's trailing 12-month (TTM) EPS was at Rs 18.38 per share as per the quarter ended December 2014. The stock's price-to-earnings (P/E) ratio was 9.38. The latest book value of the company is Rs 167.11 per share. At current value, the price-to-book value of the company is 1.03.


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2-wheeler industry to grow 8-9% in FY15; 1-2% in FY16: ICRA

Domestic two-wheeler industry is estimated to log 8-9 percent growth for 2014-15, but it will decelerate to 1-3 percent in the next financial year because of limited flow of first time buyers, rating agency ICRA said.

It will be driven by increasing penetration of scooters even as the larger segment of motorcycles continues to post modest growth supported mainly by replacement demand, ICRA said in its report.

Notwithstanding the strong revival witnessed early in FY15, volume growth in the Indian two-wheeler industry has reported deceleration over the last few months dragged by declining volumes of motorcycles segment, it said.

ICRA expects two wheeler demand growth to decelerate from this level in 2015-16 to around 1-3 percent in view of limited flow of first-time buyers whose disposable incomes are unlikely to expand till India's economic growth turns more reassuring.

Over the medium term, this industry is expected to report a volume CAGR of 8-9 percent to reach a size of 22-23 million units in both domestic and exports by 2016-17.

ICRA said that various structural positives associated with the domestic two wheeler industry include favourable demographic profile; moderate two wheeler penetration levels (in relation to several other emerging markets), under developed public transport system, growing urbanization, strong replacement demand and moderate share of financed purchases remain intact.

Besides, there is large opportunity available to grow presence in overseas markets, mainly Africa and Latin America. ICRA said the motorcycle volumes faltered after a positive first half of 2014-15 and OEMs lined up new models to woo customers.

Accounting for over 65 percent of two-wheeler industry volumes, performance of motorcycles has a significant bearing on the overall volumes of the industry. 

Consequently, with sluggish volumes in the segment, the overall industry volume growth was also dragged down during the last four months despite continued strong performance of scooters.

Though the segment grew by 11.6 percent YoY during H1 FY15, growth faltered during Q3 FY15 with motorcycle volumes posting a decline of 5.4 percent YoY and 6 percent YoY in January 2015.


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DLF IPO disclosure case: Sebi imposes Rs 86-cr penalties

In its biggest-ever penalty, Sebi today imposed fines of Rs 52 crore on realty giant DLF and seven others, including Chairman K P Singh, for "fraudulent and unfair trade practices", while penalties totalling Rs 34 crore were slapped on 33 related entities.

These orders come after Sebi in October last year barred DLF and its six top executives from markets for three years for suppressing key information at the time of its IPO in 2007, including about certain "sham transactions" involving an associate company named Sudipti Estates.

While the earlier order did not involve any monetary penalties and has been challenged before the Securities Appellate Tribunal, the regulator today passed two fresh orders, for related irregularities, to impose penalties totaling Rs 86 crore on as many as 41 entities.
Proceedings against one person have been abated because of his death.

As per the first order running into 53 pages, DLF has been asked to pay a fine of Rs 26 crore, while a similar amount has to be paid collectively by seven persons -- Chairman K P Singh, his son and Vice Chairman Rajiv Singh, daughter Pia Singh, T C Goyal, Ramesh Sanka, G S Talwar and Kameshwar Swarup.

This itself is the biggest ever penalty imposed by Sebi in a single case, barring the amount asked by the regulator in its 'disgorgement' or refund orders in which cases the concerned entities are asked to return the money illegally raised by them.

In the second 55-page order, Sudipti Estates has been asked to cough up Rs 1 crore, its two directors have been fined Rs 3 crore, while fines ranging from Rs 1 crore to Rs
5 crore have been imposed on 19 other entities. The fines are between Rs 5 lakh and Rs 15 lakh for others.

The fines need to be paid within 45 days, as per orders issued by the Securities and Exchange Board of India (Sebi). DLF had raised Rs 9,187 crore in its IPO, the biggest ever till that time. Sebi had began a investigation after allegations were levelled by one Kimsuk Krishna Sinha about DLF and Sudipti Estates Limited (Sudipti), wherein he had alleged that Sudipti had duped him of Rs 34 crore in relation to a transaction between them for purchase of land, and he had registered an FIR against Sudipti.

It was also stated by Sinha in the said complaints that Sudipti, DLF Housing Development Limited and DLF Estate Development Limited were sister concerns and inextricably linked and all of them were part of DLF Group, as per Sebi order.

However, realty major today said it did not violate any law and it will challenge the Sebi order. DLF further said that the company and its board were guided by and acted on the advise of "eminent legal advisors, merchant bankers and audit firms" while formulating its IPO documents.

The orders passed by Sebi can be challenged before the Securities Appellate Tribunal, which is already hearing a plea by DLF against another order passed by the capital markets regulator in October 2014.

The earlier order is also related to the same case, wherein Sebi had barred DLF and six others from capital markets for three years for "suppression of material facts" inits IPO documents.

"We have been made aware of adjudication orders passed by SEBI under Section 15 of the SEBI Act, 1992 against DLF, its directors and other noticees. We are presently reviewing the said Orders and after taking appropriate legal advice, we will challenge the said Orders in appeal," DLF said in a statement about today's orders.

Reassuring investors and all other stakeholders, DLF said "it has not acted in contravention of law either during its initial public offer or otherwise".

"DLF will defend itself to the fullest extent against any adverse findings and measures contained in the orders passed by SEBI. DLF has full faith in the judicial process and is confident of vindication of its stand in the near future," the company said.


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Hyundai to launch 'i20 Active' next month

Written By Unknown on Rabu, 25 Februari 2015 | 23.25

Korean auto major Hyundai will make the global debut of its new crossover model, i20 Active in India next month as part of its plans to bring new products to touch the 5 lakh sales milestone in the country.

Korean auto major Hyundai will make the global debut of its new crossover model, i20 Active in India next month as part of its plans to bring new products to touch the 5 lakh sales milestone in the country.

"Designed at Hyundai Motor's Design Centre Europe in Russelsheim, Germany, i20 Active is scheduled to make an official global debut in the Indian market in the month of March 2015," Hyundai Motor India said in a statement.

While revealing the design renderings of the "SUV looking car", the company said it has "sporty refinement, with the enhanced practicality and quality" without sharing details.

Earlier this month, the company had launched the updated version of its mid-sized sedan Verna priced up to Rs 12.19 lakh (ex-showroom Delhi). Hyundai Motor India Ltd (HMIL) Senior Vice President, Sales and Marketing, Rakesh Srivastava had said the company's "aspiration is to achieve the 5 lakh sales mark in the domestic market" and the updated Verna would play a significant role in achieving the milestone. In order to achieve the target, he stated HMIL has lined up a slew of products for this year, including models in new segment.

The i20 Active will be competing with the likes of Toyota Etios Cross and Fiat Avventura in the newly emerging premium hatchback-crossover segment in India.


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Ajay Singh infuses Rs 500 crore in SpiceJet

Singh is learnt to have raised a soft loan for this fund infusion in the airline. Sources also say that investors will pick up a stake in the airline once the restructuring process is completed.

Employees of SpiceJet have some reason to cheer. After some uncertain months, relief is in sight as new promoter Ajay Singh told CNBC-TV18 today that there will be no large scale manpower reduction at the airline for now. Singh said his target was to get to the ratio of 90 people per aircraft and the airline is already close to this target.

Though Singh declined to provide more details on manpower restructuring going forward, a source close to him pointed out that there will be significant rejig of the top management but people at junior and mid levels will not be disturbed. This source also said Singh may earmark up to 5 percent of equity for employee stock options.

Singh today brought in Rs 500 crore of the Rs 1,500 crore committed investment in SpiceJet as per the approved revival plan. The source quoted earlier said Singh has raised a soft loan for this investment So will foreign investors - who were said to be in the reckoning earlier for picking up minority stakes in SpiceJet - now come forward? The source said there seems to be "a lot of interest" from domestic investors and some from abroad and that things will become clearer after some weeks.

Singh has already begun massive operational restructuring. The source said SpiceJet has already reduced the number of stations it operates to, from 36 to 31, and there will be further reduction.

Singh said he has not taken any decision on whether to continue with the fleet of Bombardier aircraft (the Q400) and any decision will be effective only later this year, from the winter schedule. "We have anyway done our fleet planning keeping the Q400 in mind for the summer schedule," he said. But the source quoted earlier said phasing out the Q400 fleet was a possibility. As of now, the airline also has 17 operational Boeing 737 aircraft.

SpiceJet stock price

On February 25, 2015, SpiceJet closed at Rs 24.95, up Rs 0.80, or 3.31 percent. The 52-week high of the share was Rs 25.70 and the 52-week low was Rs 11.10.


The latest book value of the company is Rs -16.49 per share. At current value, the price-to-book value of the company was -1.51.


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Budget may rationalize taxes to popularise REITs

The industry has been relief on Minimum Alternate Tax (MAT) at time of creation of REIT as there are no real sales of shares, hence no income is earned.

The Union Budget may rationalize taxes and remove anomalies to popularise Real Estate Investment Trusts (REITs), sources tell CNBC-TV18. 

The industry has been relief on Minimum Alternate Tax (MAT) at time of creation of REIT as there are no real sales of shares, hence no income is earned. 

It is also learnt that Budget may remove anomaly and treat REIT units at par with equities and may also qualify them as long term assets at 12 months. 

REIT units currently qualify as long-term capital asset at 36 months and sale of long-term REIT unit is exempt for an investor

According to sources, the Budget is likely to bring parity between REIT sponsors, promoters / companies going for IPOs. The government may also exempt sponsor at time of listing of REIT, at par with IPOs. 


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LG, Samsung Mobiles top 2 trusted brands in India: Report

LG was ranked fourth while Samsung Mobiles was ranked at 379th position in The Brand Trust Report in 2014. The survey was conducted amongst 2,373 respondents across 16 cities.

Korean brands LG and Samsung Mobiles are the top two most trusted brand in the country followed by Sony, Tata and Nokia, says The Brand Trust Report, India Study 2015.

LG was ranked fourth while Samsung Mobiles was ranked at 379th position in The Brand Trust Report in 2014. The survey was conducted amongst 2,373 respondents across 16 cities.

The report is issued annually by TRA (formerly Trust Research Advisory), a Comniscient Group company.

TRA CEO N Chandramouli said: "Korean firm LG and Samsung Mobile have worked their way to become top most trusted companies in a short period of 10 to 12 years. These companies came out with products suiting the Indian market and have earned trust of Indian customers."

Top 20 most trusted companies which have improved their ranking over last year include LG, Samsung Mobiles, Bajaj, Honda, Dell, Godrej, Bata, Amul, Apple, Airtel and Dabur.

Top 20 most trusted companies which have slipped in ranking are Sony, Tata, Hewlett Packard, Reliance, Hero MotoCorp, Maruti Suzuki, Philips and LIC.

Nokia's ranking remained stable at fifth position. In the north India region, top five most trusted brand are LG, Samsung Mobiles, Hero MotoCorp, Sony and Nokia.


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BSNL, MTNL, Videocon planning lowering call rates

Trai also reduced network interconnection usage charges (IUC) on calls made from mobile phones by about 30 percent to 14 paise per call from 20 paise earlier.

Telecom companies BSNL, MTNL  and Videocon are considering reducing call rates after telecom regulator TRAI cut down interconnection charges. "Removal of fixed termination charges will help BSNL serve its customer better. We will come up with better offers in next financial year.

Customers will have more affordable services," BSNL Chairman and Managing Director Anupam Shrivastav told PTI. Early this week, the Telecom Regulatory Authority of India removed network interconnection charges that a landline service provider pay to other service provider for transmitting its customers' phone calls. Now, calls made from landline-to-landline or landline-to- mobiles will not include the interconnection charge, which was 20 paise.

Trai also reduced network interconnection usage charges (IUC) on calls made from mobile phones by about 30 percent to 14 paise per call from 20 paise earlier. "We will follow industry on mobile call rates. If they pass on this benefit to consumers, we will also do it," Shrivastav said.

Other state-run firm MTNL, which operates in Delhi and Mumbai, said that the move is in line with government's agenda to encourage adoption of fixed line for increasing broadband penetration in the country. "Passing on benefit to consumers will be considered. It would be highly appreciated if TRAI also reduces termination charges on SMS.

At present an operators has to pay 2 paise for each SMS between person to person and 7 paise on promotional messages," MTNL Chairman and Managing Director PK Purwar said. Private telecom operators Uninor and Videocon also appreciated the new regulation. "We do intend to pass on the benefit of this change in IUC (interconnection usage charge) regime to our customer by means of reduced tariffs for Local and STD Calls," Videocon Telecom Director and CEO Arvind Bali said.

Uninor said that lower IUC regime offers a level playing field to new operators and give more flexibility to tariff planning. There was no response from incumbent players. These players proposed TRAI to increase IUC charges.

Telecom subscribers cannot communicate with each other or connect with other networks unless necessary interconnection arrangements are in place. A telecom company is required to pay interconnection charges when its subscriber make call to subscriber of other network. The charge gets added up in final price that a subscriber has to pay.

MTNL stock price

On February 25, 2015, Mahanagar Telephone Nigam closed at Rs 29.00, down Rs 0.05, or 0.17 percent. The 52-week high of the share was Rs 39.10 and the 52-week low was Rs 13.76.


The company's trailing 12-month (TTM) EPS was at Rs 115.91 per share as per the quarter ended December 2014. The stock's price-to-earnings (P/E) ratio was 0.25. The latest book value of the company is Rs 80.01 per share. At current value, the price-to-book value of the company is 0.36.


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NTPC board approves investment proposal for MP plant

"NTPC said that the Board of Directors of the company has accorded the investment approval for the Khargone power project in Madhya Pradesh at an appraised current estimated cost of Rs 9,870.51 crore," the company said in a regulatory filing.

State-owned NTPC  today said its board has approved the investment proposal for 1,320 MW thermal power project in Madhya Pradesh.

"NTPC said that the Board of Directors of the company has accorded the investment approval for the Khargone power project in Madhya Pradesh at an appraised current estimated cost of Rs 9,870.51 crore," the company said in a regulatory filing.

The approval is subject to Environment Clearance of Ministry of Environment and Forests.

The Board of Directors has also accorded approval to the company's proposal to set up 10,000 MW of renewable energy projects during the next five years.

Shares of the company closed at Rs 146, down 0.34 percent on the BSE.

NTPC stock price

On February 25, 2015, NTPC closed at Rs 146.00, down Rs 0.5, or 0.34 percent. The 52-week high of the share was Rs 168.80 and the 52-week low was Rs 110.90.


The company's trailing 12-month (TTM) EPS was at Rs 12.66 per share as per the quarter ended December 2014. The stock's price-to-earnings (P/E) ratio was 11.53. The latest book value of the company is Rs 104.08 per share. At current value, the price-to-book value of the company is 1.40.


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Govt needs to reduce fisc to 3% in FY17: Fin Comm member

Written By Unknown on Selasa, 24 Februari 2015 | 23.25

The 14th Finance Commission report, headed by Y V Reddy and tabled by Finance Minister Arun Jaitley in Lok Sabha today, has recommended devolution of 42 percent of central taxes to states.

In an interview to CNBC-TV18, M Govinda Rao, Member, 14th Finance Commission, said the panel did not make distinction between plan and non-plan spends. He thinks the centrally-sponsored schemes should be reduced, besides the government needs to bring down the fiscal deficit to 3 percent from FY17.

The government can look at creating contingency mitigation fund, but should not compromise on fiscal deficit target, he said. Rao however added that the panle did not talk about GST rates.

Below is the transcript of Govinda Rao's interview with Shereen Bhan on CNBC-TV18.

Q: The government has decided to accept the recommendations as far as the 14th Finance Commission is concerned with regards to the devolution. Can you take us through the rationale behind this quantum jump? The government itself is calling this a quantum jump. Can you take us behind the rationale of this quantum jump that the 14th Finance Commission has decided to go in for?

A: There are a number of factors that have gone into the recommendations. Unlike in the past this Finance Commission's terms of preference do not ask the commission to confine itself to meeting the requirements under the non planned revenue accounts of the states which basically implies that it restores the constitutional position of the Finance Commission's task namely looking after the entire revenue expenditure requirement of the states. It is not just the non-planned, so in that sense of the term it is not 32 is not comparable to 42. You should add for 32 the normal central assistance given by the planning commission under the Gadgil formula the transfers given under the special plan assistance and quite a few of the discretionary grants which the Planning Commission was giving including the things like backward region transfer and things like that.

So, in other words it is not exactly 32 percent, if you add those it will come somewhere around 38-39 percent. In addition to that you have the grants. That is one of the things. In fact this commission has made a number of interesting recommendations in this regard, their entire approach. One is you don't make a distinction between plan and non plan.

Second thing is you don't make a distinction in the tax distribution between general category states and special category states and have a different norm. But what we have done is we have taken into account the revenue disabilities and cost disabilities of the states and in the process of doing that we have mainstream environmental issues which means for example in the tax devolution formula we have included forest cover.

So, in other words there are a variety of innovative things that have been done and strictly adhering to the constitution. Of course this also implies that the state gets much larger quantum of funds which are untied, which are general purpose transfers, which are basically block transfers which they can use. The idea is we have trust in the states.

Q: You are making a valid point and that is the point that is the point that the Finance Minister was also earlier making that you are moving away from a one size fits all approach and the state governments will now have the power to decide what to utilise their funds on. But if I could ask you the question that people want an answer to what does this mean in terms of the fiscal space for the government? Because the Finance Ministry in its releases articulated that its fiscal space will be reduced proportionately on account of the higher devolution to the states. What is this now going to mean in terms of fiscal space with the government which is already pretty much fiscally constrained and what is this then do to the fiscal consolidation road map that this government has presented with 3.6 percent being the fiscal deficit target for the next financial year? 

A: The total transfers that the union government gives to the state is a decision which the union government takes. If you look at present something like 62 percent of the total divisible pool of the taxes is given by way of transfers, 32 by way of tax revolution and then certain amount something like 7-8 percent by way of other grants. The question that comes up is you can continue to give 62-63 percent you do not have to give more. But then you will have to reduce the space as far as the centrally sponsored schemes are concerned. You can re-modify the centrally sponsored schemes and then at present the centrally sponsored schemes constitute somewhere about Rs 3 lakh crore a year. 

If you want to state that I want to give only 62 percent and I do not want to touch the other fiscal space then you can do, that Rs 3 lakh crore will be reduced to Rs 2 lakh crore. We still have Rs 2 lakh crore to manage within that but if you want to increase that either you will have to increases tax revenue or you will have to increase the non tax revenue or you will have to cut down the other unproductive expenditure. In fact the union government is sovereign and then it has to take how exactly it wants to go about. Now that you have given higher tax devolution, higher Delhi purpose transfers, we have trusted the states; states have the responsibility of providing quality public services, public goods to the people because they are the ones who are closer to the people.

Q: If I could come back to the issue of fiscal space at the central level, I am given to understand, this is as per what the finance ministry is has stated officially and this has been the recommendation of the commission to bring down the number of centrally sponsored schemes, we understand that the Centre will now delink about eight centrally sponsored schemes from central support. So, in that sense how much room will this actually give the government? Is there a number, is there a calculation because the centre is saying it will delink eight centrally sponsored schemes from central support. How much will this offset the outgo from the Centre?

A: I have not seen which of those eight centrally sponsored schemes they are removing. There were 147 schemes and then they were consolidated into 66 by the B K Chaturvedi committee and this 66 in terms of the volumes, in terms of the transfer there was not much of a change. Now, what you really need to do is to again- even there there is a reform needed, there is a chapter in the finance commission report which basically-the title of the chapter is towards corporate federalism and that chapter basically tells that in designing this limited number of schemes that you want to undertake, do not do 66, you have some 10-15 of them-in designing them you have the state's involvement, you have the domain experts involvement and along with the spending department, the states and the domain experts should basically design and work out the implementation scheme. There is a very detailed chapter on that.

Q: Do you think that this government ought to stick to its fiscal deficit number of 3.6 percent for the next financial year or do you believe that that need of the hour at this point in time is to pump prime the economies to stimulate growth? Where do you stand as a member of the 14 th finance commission on that issue?

A: The commission has made a very clear recommendation with regards to the fiscal targets. The fiscal targets for the next year as it was adopted by the medium term fiscal plan is 3.6 and the year after wards is 3 but not to pump prime the economy what we can do is one, the higher transfers to the state will result in a higher capital expenditures because they do not really have a serious evidence of that issue in many of the states.

More than anything else it would be useful for the Union government to start, particularly in the case of railways for example, you can have a special purpose vehicle or even for highways you can have a special purpose vehicle. You borrow money from various places, create a contingency mitigation fund so that if there is a contingent liability that is coming up you can deal with that and possibly you can take it off the Budget but the point is-of course it is a contingent liability but then you have to have an arrangement to mitigate that contingent liability if in case it arises but fiscal deficit target we should not compromise that, we should have the fiscal consolidation.

Q: Let me ask you a question on the GST because the government has said that it will study the recommendations of the 14 th finance commission on a bunch of other issues including the goods and services tax. This maybe will pave the way to get the states on board even further as far as implementing and adopting the GST is concerned. Perhaps we could now see a April 1, 2016 GST roll out. What to your mind will be an ideal GST rate?

A: This is one of the things the finance commission has abstained from getting into. The term of reference of the finance commission is very clear. The term of reference of the finance commission basically says, please make recommendations on the implications or the impact of GST on the economy and number two, what should be the compensation scheme, mechanism for compensation? The finance commission has confined itself very strictly to these issues since the entire structure of the GST has to be decided by the empowered committee along with the Union government. The finance commission has not gone into the structure of GST because it is not in the term of reference and it would be inappropriate to take away the powers of the Union and the state governments in doing that.

Q: In your personal capacity do you think that anything above 22 percent as a GST rate would in fact lead to a failure of the GST rollout because the empowered committee was talking about 25-26 percent as being the revenue neutral rate. Do you believe that that should be the ideal rate as far as the GST is concerned? I am speaking to you in your personal capacity.

A: The basic issue is whomever you ask to estimate the revenue neutral rate they are not going to err on the wrong side. They will always have a higher rate there because if you don't realise that revenue tomorrow you are going to blame them for that. 

The statesmanship would require that the governments, the union and state governments should come up and say that, look, if you have to have two tax rates in central GST and state GST you have a lower rate and higher rate we should not have the rate more than 11-12 percent in the case of centre, similarly 11-12 percent in the case of the states and then the centre should come out and say, that any loss of revenue I will make up, in the sense that they need assurance. Once you do that you can move forward, but that requires statesmanship, not playing politics and that is something which we hope that will come in the near future.


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Sugar mills to struggle to export raws despite subsidy

Indian mills are likely to struggle to export raw sugar, despite a government subsidy to boost shipments, as global prices remain weak with large supplies from top producer Brazil set to flood the market soon.

Lower exports by India, the world's biggest consumer of sugar, should take some pressure off benchmark New York prices that are mired near a 5-year low of 14.08 cents per lb.

"Not only are the prices unfavourable, most refineries in the world have sufficient stocks, with the pipeline being full. I do not see our exports going beyond 500,000 tonnes," said Dharmender Bhayana, managing partner at Sugrain Trading LLP.

India, which traditionally produces white sugar, exported nearly a million tonnes of raws in 2014.

"We have nearly missed the bus as the government took a long time to approve the subsidy. There is plenty of sugar and supplies from Brazil will arrive in April," Bhayana added.

After months of indecision, India last week decided to give mills a subsidy of 4,000 rupees (USD 64) a tonne for exports of up to 1.4 million tonnes of raw sugar to help cut stockpiles after five years of surplus output.

But given a premium for Indian supplies, traders do not see this subsidy helping much in terms of boosting exports.

Indian raw sugar is being quoted at USD 350 per tonne free on board for exports, versus USD 330 quoted for Brazilian supplies.

Global prices need to rise to make Indian raws attractive, but that looks unlikely in an oversupplied market, said a Delhi-based trader with an international firm.

"We are not very sure if Iran would import as much as it did last year because sanctions are gradually easing. Iran may turn to Brazil also," the trader added.

Iran had bought 500,000 tonnes of Indian raws in 2014, paying with the rupees it received for oil from India amid curbs on dollar trade with Tehran due to sanctions over its disputed nuclear programme.

In the absence of export deals, Indian mills could turn to the local port-based refineries of Shree Renuka Sugars Ltd, EID Parry and Simbhaoli Sugars Ltd. But prices remain an issue.

"Mills are willing to sell raw sugar at 20,000-20,5000 rupees a tonne which is considered high and needs to come down to 19,000-19,500 rupees for refiners to buy from mills," said a Mumbai-based trader who works with an international company.


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SC allows RBI to initiate action against Sahara

In a major setback for Sahara, the Supreme Court has allowed the Reserve Bank of India (RBI) to take action against the group for violation of orders by the court and RBI.

It may be recalled that the central bank had moved the apex court accusing Sahara of not depositing securities worth Rs 484 crore with market regulator Sebi.

According to RBI, it had passed order barring SIFCL from selling 'directed securities', which include government bonds, FDRs, etc. As per audited accounts, SIFCL sold securities worth Rs 524 crore, while Rs 6 crore was used for repayment of dues to depositors. However, audited accounts show that Rs 484 crore was diverted to Sahara India, which was against the RBI and SC orders.

Sahara's counsels claim that the money was sent to Sahara India to repay depositors. The group has challenged the correctness of auditors' findings.

However, the SC maintains that it had asked Sahara to pay Sebi and never directed it to repay investors. The apex court wondered how the group can violate a direct order by RBI.

Meanwhile, on Tuesday's hearing the Sahara group also informed the court that its deal with Mirach is not happening now. Calling the deal a 'mirage', Sahara said it is exploring other options for raising funds.

According to the group, it is currently at exploratory stage and has signed term sheets have for a few. It said a European bank has agreed to extend loan of USD 1535 million and even Dutch pension fund has expressed interest in extending loan and investments.

The group is also considering sale of Aamby Valley. It is also seeking conferencing facilities for Roy in Tihar till March 31. However, the SC refused it citing that it will allow facilities when Sahara brings forth a concrete proposal. We can't allow a comfortable arrangement with internet, staff, food etc, the SC observed, adding that Sahara parivar is large enough, and should be doing the groundwork.

The next hearing for the case is on March 13.


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Airtel, BSNL to sign pan-India intra-circle roaming pact

Telecom operators Airtel and BSNL are likely to sign a pan-India roaming pact within a month to strengthen their 2G mobile services in areas where either of them is having a weak or negligible presence.

Telecom operators Airtel  and BSNL are likely to sign a pan-India roaming pact within a month to strengthen their 2G mobile services in areas where either of them is having a weak or negligible presence.

"We are soon going to sign a pan-India intra-circle roaming agreement with Airtel with a focus to strengthen coverage in rural areas. Commercials are being worked out.

This is most likely to signed within a month," BSNL Chairman and Managing Director Anupam Shrivastava told PTI. When contacted, Airtel did not comment on the matter.

Shrivastava said the deal is a part of the BSNL strategy to spend carefully on building infrastructure and use sharing rules to bring down operational cost besides providing good network to consumers.

"We have made 'co-opetition' (co-operative competition) as one of the key strategies. Under this we are looking at opportunity where we can co-operate with other players to expand our business," he said. BSNL has invested about Rs 4,000 crore in the latest network expansion (phase 7).

It is expected to be completed by June 2015. Airtel claims its mobile network with 1,42,898 base stations covers an area of 87 percent of India's population. BSNL's mobile network covers an area of 72 percent of country's population which will further increase after completion of phase 7 network expansion.

The state-run telecom firm will have about 1,10,000 base stations after June this year.

Bharti Airtel stock price

On February 24, 2015, Bharti Airtel closed at Rs 343.15, down Rs 3.5, or 1.01 percent. The 52-week high of the share was Rs 419.90 and the 52-week low was Rs 282.10.


The company's trailing 12-month (TTM) EPS was at Rs 28.61 per share as per the quarter ended December 2014. The stock's price-to-earnings (P/E) ratio was 11.99. The latest book value of the company is Rs 166.93 per share. At current value, the price-to-book value of the company is 2.06.


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SpiceJet launches low-fare offer; 1 lakh seats on the block

Budget carrier SpiceJet  on Tuesday put one lakh seats up for grabs on both its domestic and international routes as it rolled out another discount sale offer with tickets priced as low as Rs 1,699 for travel within the country.

The latest offer -- of all-inclusive fares as low as Rs 1,699 for flights across its domestic network and Rs 3,799 for international routes with a three-day booking window -- comes a day after SpiceJet's ownership went back to its original promoter, Ajay Singh.

Bookings under this latest offer, 'Colour the Skies', are now open for a travel period between March 1 to April 20 and will close at midnight on February 26, the airline said in a release.

This is the fifth low fare scheme this year from SpiceJet with the first of these having been unveiled on January 28. "The 'Colour the Skies' sale gives our customers the chance to make almost immediate travel plans on Holi. We have extended 1,00,000 seats on offer at unbeatable fares.

Our low fares have made it possible for many customers to travel more often and have also attracted many first-time flyers," said Chief Commercial Officer, SpiceJet, Kaneswaran Avili.

Under the offer, tickets on routes like Hyderabad- Vijayawada, Delhi-Dehradun, Guwahati-Kolkata, Ahmedabad -Mumbai, and Bangalore-Hyderabad are priced at an all- inclusive Rs 1,699, the airline said. Similarly, the fares for the international flights start at as low as Rs 3,799 (all inclusive) for Delhi to Kathmandu, with discounted fares available on most other international routes too, SpiceJet said. 

Meanwhile, the airline also announced that the entire 56.4 percent shareholding of Kalanithi Maran and Kal Airways Pvt Ltd (the existing promoters), has been transferred to Singh.

"Pursuant to the share sale and purchase agreement dated January 29, 2015, between the company, Kalanithi Maran, Kal Airways Pvt Ltd and Ajay Singh, the entire shareholding of Kalanithi Maran and Kal Airways Pvt Ltd aggregating to 350,428,758 equity shares (58.46 percent) has been transferred to Ajay Singh on February 23, 2015," the company said in a BSE filing. Consequently, Singh has become the promoter of the company in place of Maran and Kal Airways Pvt Ltd, it said.

Singh had exited the carrier around four years back. In late January, the SpiceJet board had approved transfer to Singh of the entire 58.46 per cent stake held by Maran's family.

SpiceJet stock price

On February 24, 2015, SpiceJet closed at Rs 24.15, up Rs 0.15, or 0.63 percent. The 52-week high of the share was Rs 24.75 and the 52-week low was Rs 11.10.


The latest book value of the company is Rs -16.49 per share. At current value, the price-to-book value of the company was -1.46.


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Govt to set up expert panel to improve AI's performance

The government plans to set up an expert panel to find ways to improve Air India's performance but presently no proposal is being considered for its privatisation, Civil Aviation Minister Ashok Gajapathi Raju Pusapati said on Tuesday.

"Setting up of an expert committee to suggest ways to further improve the performance of Air India is under consideration," he said. In April 2012, the government had approved a turnaround as well as financial restructuring plans for the carrier.

Under these plans, there would be an equity infusion of Rs 30,231 crore up to 2012 provided the airline meets certain milestones.

"Air India has considerably improved its financial and operational performance," the Minister said in a written reply to the Rajya Sabha. An oversight committee, whose members include Civil Aviation Secretary and Expenditure Secretary, has been constituted to closely monitor the performance of Air India vis-a-vis the milestones set in the turnaround plan.

Besides, the carrier has taken various cost cutting measures to improve its financial position. These include rationalisation of loss-making routes, freezing employment in non-operational areas, closure of overseas offline offices at certain locations, phasing out of old fleet and consequential reduction in maintenance cost.

In response to a query on whether privatisation of Air India is the only way out to improve its performance, the Minister said, "At present, no proposal for privatisation of Air India is under consideration of the government".

In response to a separate query on whether Air India is planning to monetise its surplus land assets to reduce its mounting debts, Minister of State for Civil Aviation Mahesh Sharma replied in the affirmative.

"Recently, Air India has signed an MoU (Memorandum of Understanding) with NBCC to develop its land parcels on joint venture basis," he said in a written reply. Sharma said that Air India's total manpower stood at 21,586 people as on January 1, 2015.

This includes employees who have been transferred or deputed to the carrier's subsidiaries -- Air India Engineering Services Ltd and Air India Air Transport Services Ltd. Out of the total, 11,869 people were with Air India.

Aircraft to employees ratio as on January 1, 2015 in Air India stood at "1:122", excluding the employees who have been transferred or deputed to its subsidiaries.


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Sesa Sterlite plans corporate name change to Vedanta

Written By Unknown on Minggu, 22 Februari 2015 | 23.25

Sesa Sterlite, the Indian subsidiary of Vedanta Resources Plc, a globally diversified natural resources company, plans to adopt a new corporate name; Vedanta Limited.

Sesa Sterlite , the Indian subsidiary of Vedanta Resources Plc, a globally diversified natural resources company, plans to adopt a new corporate name; Vedanta Limited.

The change in name would be subject to shareholder approval, says the company.

The company is engaged in the exploration and production of aluminium, zinc, lead silver, copper, iron ore, oil & gas and commercial power.

"The name change from Sesa Sterlite to Vedanta Limited unifies our growing portfolio of global operations, reflects our commitment to all our stakeholders and our ability to create value while aligning our identity," said Tom Albanese, Group CEO, Vedanta, adding that the organization is proud to be a part of the natural resources sector in India, contributing significantly to the Indian GDP.

"Our strategy to be the lowest-cost player and the most efficient will continue to be a critical foundation of our business operations," said Albanese.

The planned change in name of the company will have no impact on the operations of subsidiary companies Cairn India ,  Hindustan Zinc (HZL) and Bharat Aluminium Company(BALCO) and the divisions of Sesa Sterlite.

The company's operations across India are: Aluminium and power plants in Odisha, copper smelter and power plants in Tamil Nadu, iron ore business units in Goa and Karnataka and a power plant in Punjab.

The company's subsidiaries; BALCO operates an aluminium and captive power plant in Chhattisgarh, Hindustan Zinc has zinc, lead and silver mines in Rajasthan and Cairn India's oil and gas operations are in Rajasthan, Gujarat and Andhra Pradesh. Internationally, the company has zinc business units in South Africa and Namibia and iron ore operations in Liberia.

Sesa Sterlite stock price

On February 20, 2015, Sesa Sterlite closed at Rs 217.40, down Rs 1.75, or 0.8 percent. The 52-week high of the share was Rs 318.40 and the 52-week low was Rs 169.55.


The company's trailing 12-month (TTM) EPS was at Rs 3.47 per share as per the quarter ended December 2014. The stock's price-to-earnings (P/E) ratio was 62.65. The latest book value of the company is Rs 113.60 per share. At current value, the price-to-book value of the company is 1.91.


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Hindalco Industries wins one more coal block; total 3

Hindalco had on February 15 bagged Kathautia mine in Jharkhand and also won GareIV/5 mine in Chhattisgarh on February 19.

Continuing aggressive bidding, Hindalco Industries  has bagged one more mine in the ongoing coal auction, taking the total number of blocks won by the firm to three that includes two in Chhattisgarh and one in Jharkhand.

"Hindalco is the highest bidder at Rs 3,001 (per tonne) for Gare Palma 4/4," Coal Secretary Anil Swarup tweeted. Hindalco had on February 15 bagged Kathautia mine in Jharkhand and also won GareIV/5 mine in Chhattisgarh on February 19.

Gare Palma IV/4 mine in Chhatisgarh is the third block bagged in the ongoing auction by the Aditya Birla Group  firm last night, sources said.

The bidding for the mine continued for more than 12 hours yesterday. The states will get over Rs 1 lakh crore, including royalty, over the next 30 years from sale of 17 coal blocks sold so far through the ongoing auction.

Besides, reverse auction for the power sector will result in benefits to the tune of Rs 37,050 crore to end-users by way of a cut in tariff, Coal Secretary Anil Swarup had said yesterday.

The government has put on block 19 mines in the first tranche of auction. Companies such as Jindal Power, Hindalco and Ultratech  and others have bagged 17 of them so far.

The Gare Palma IV/4 mine has extractable reserves of 12.30 million tonnes (MT). Hindalco emerged as the successful bidder among companies like ACC , Balco, Godawari Power  and Ispat, Jayaswal Neco Industries , Rungta Mines  and SKS Ispat and Power which were vying for it. The block was previously held by Jayaswal Neco Ltd.

The mine today on offer is Gare Palma IV/1 in Chhattisgarh which has extractable reserves of 49.57 MT. The companies vying for the mine are Balco, Hindalco and Rungta Mines.

In a clarification to Bombay Stock Exchange, Jindal Steel & Power Ltd  (JSPL) had said yesterday "in respect of the Coal Block of Gare Palma IV/1 (in Chhattisgarh to be put on sale tomorrow), the company has not qualified for the e-auction round on the basis of initial price offer submitted by it." Gare Palma IV/1 was earlier allocated to Jindal Strips (now JSPL).

Tomorrow is the last day for the auction of mines in the first tranche. The auction of second lot of mines will start from February 25. 

Hindalco stock price

On February 20, 2015, Hindalco Industries closed at Rs 156.40, up Rs 0.15, or 0.10 percent. The 52-week high of the share was Rs 198.70 and the 52-week low was Rs 96.95.


The company's trailing 12-month (TTM) EPS was at Rs 4.91 per share as per the quarter ended December 2014. The stock's price-to-earnings (P/E) ratio was 31.85. The latest book value of the company is Rs 177.87 per share. At current value, the price-to-book value of the company is 0.88.


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Kotak-ING Vysya merger deal gets CCI green signal

Kotak Mahindra had announced the buyout of ING Vysya Bank in an all-stock deal in November last year following which it had approached CCI for approval on the deal in December.

The proposed Rs 15,000-crore merger deal between  Kotak Mahindra and  ING Vysya has got the Competition Commission's approval.

According to the fair trade regulator, the merger, which would create the country's fourth largest private sector lender, is "not likely to have an appreciable adverse effect on competition in India".

In an order dated February 12 but released today, the Competition Commission of India (CCI) said that share of both entities in various relevant markets is "insignificant".

In this case, the regulator took into account multiple relevant markets including those for deposits, home loans, agricultural banking and card business. These were considered in accordance with the international best practices regarding the assessment of the mergers in the banking sector.

The CCI observed that the presence of large players in these markets would also "act as a competitive constraint to the parties".

It also said that since ING Vysya does not have significant market share in any of the relevant markets, "the proposed combination would not result in the removal of a significant competitor".

With regard to investment advisory services, securities depository services and portfolio management services, the CCI observed that the market shares of the parties are "insignificant in comparison to the other larger players present in the markets".

"There are large number of competitors, including banks and entities registered with the Securities and Exchange Board of India present in these markets," the CCI said.

As per the order, the merger scheme provides that for every 1,000 shares held by the shareholders of ING Vysya, 725 shares of Kotak will be allotted to the shareholders of ING Vysya. Kotak offers a wide range of banking and financial services through its 641 branches located across India.

The bank through its various subsidiaries, also provides life insurance, asset management, brokerage, investment banking and investment advisory services.

ING Vysya has 573 branches across India and offers retail banking, corporate banking and credit card services. In addition, ING Vysya provides portfolio management, investment advisory and securities depository services to its customers.

Kotak Mahindra had announced the buyout of ING Vysya Bank in an all-stock deal in November last year following which it had approached CCI for approval on the deal in December.

Kotak Mahindra stock price

On February 20, 2015, Kotak Mahindra Bank closed at Rs 1297.45, down Rs 7.5, or 0.57 percent. The 52-week high of the share was Rs 1440.00 and the 52-week low was Rs 662.55.


The company's trailing 12-month (TTM) EPS was at Rs 22.61 per share as per the quarter ended December 2014. The stock's price-to-earnings (P/E) ratio was 57.38. The latest book value of the company is Rs 159.00 per share. At current value, the price-to-book value of the company is 8.16.


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Hyundai to push drive into SUV segment

"The next focus will be on sports utility vehicles.Two SUVs are lined up that will be modern with premium feel," Senior VP and head of sales, Rakesh Srivastava, said here on Friday on the sidelines of the launch of all-new 4S Fluidic Verna.

Auto major Hyundai Motor India is planning to put greater thrust on SUV segment with the launch of two products in this category this year.

"The next focus will be on sports utility vehicles.Two SUVs are lined up that will be modern with premium feel," Senior VP and head of sales, Rakesh Srivastava, said here on Friday on the sidelines of the launch of all-new 4S Fluidic Verna.

Without elaborating on details, he said that both could be into the compact utility vehicle segment. SUVs account for 21 percent of the industry with 2.5 million units and the numbers are growing, Srivastava said. Hyundai was aiming double-digit growth in 2015 against single-digit volume expansion forecast for the overall passenger car segment during the year.

"With robust product lineup, we are targetting double-digit growth in 2015 along with increase in our marketshare by 1 percent. In 2014 the company's marketshare was 16.3 percent," Srivastava said. "Now, after surpassing four lakh units in domestic sales, we are looking at five lakh number shortly despite the biggest challnege before the industry is on growth," he said.

In 2014, the passenger auto industry expanded by 3.2 percent, with excise benefit over the year before. According to reports, the company was targetting four new models within one year to boost sales. Srivastava said, the company did not wait for Budget or policy guidance before product launch, which was done purely on internal strategy.

However, the company doesn't have any immediate plan to increase manufacturing capacity.


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Union Budget 2015: Aviation industry seeks sops for survival

According to the report, the Indian civil aviation industry is on a high growth trajectory, albeit with minor hiccups.  

"The industry has ushered in a new wave of expansion driven by low cost carriers (LCC), modern airports, foreign direct investments (FDI) in domestic airlines, cutting-edge information technology (IT) interventions and a growing emphasis on no-frills airports (NFA) and regional connectivity," the report said adding that the industry is amongst top 10 in the world with a size of around USD 16 billion.  

However, the aviation industry is facing its own set of challenges.  

Present Challenges/scenario:

Notwithstanding the extraordinary traffic growth over the past decade, with addition of new airlines like Vistara and Air Asia in the Indian skies last year, the situation is still grim for the sector. Most of them are staring at huge losses.  

National carrier Air India is sitting on a pile of massive debt, amounting around Rs 44,000 crore as of FY14. Kingfisher Airlines has been grounded over payment default, while SpiceJet is hoping for a turnaround post a change in management control.  

After posting seven quarters of consecutive losses, Jet Airways has finally managed to report an operating profit of Rs 3 crores in its third quarter ended December on the back of falling fuel costs and increased revenues. Moreover, the country has fewer airports and even lacks on aviation safety infrastructure.

Industry expectation:

The last Budget announced schemes for development of new airports in Tier I and Tier II cities. However, the industry has been seeking more sops.   

Union Minister of Civil Aviation, Ashok Gajapathi Raju, in a pre-Budget meet with the representatives and stakeholders of the industry, on February 3, held discussions on the problems plaguing the sector.  

Issues pertaining to updation of standards for security equipment, establishment of a "green" channel for MRO equipment and allocation of appropriate funds for air navigation facilities were discussed among other subjects.  

The industry made several suggestions for the promotion of MRO sector, including removal of service tax, reducing VAT on MRO activities, 10-year tax holiday, abolition of central excise duty on MRO component etc.  

If these measures are taken, it was represented, there would be creation of one lakh jobs with more than a billion dollar revenues to the country on account of MRO activities. The stakeholders also requested to treat ATF as a "declared goods" so that VAT on ATF could be reduced to 4 percent. This would make airlines more viable as ATF constitutes more than 45 percent of the cost.  

The airlines representatives have also sought infrastructure status to enable access to funds with lower rate of interest through external commercial borrowings. The industry stakeholders also made suggestions with regard to dedicated air cargo stations and general aviation as a necessary force-multiplier.


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Budget 2015-16: FM must introduce steps to boost GDP growth, says Godrej

Speaking on his expectations from the Budget, Godrej said this is the right time for Finance Minister to bring in measures to increase Gross Domestic Product (GDP) growth as his (FM's) subsidy bill would be much lower than in the past due to fall in crude oil and food prices.

Budget 2015 is a great opportunity for Finance Minister to introduce steps that will boost India's economic growth, said Adi Godrej, chairman, Godrej Group.

Speaking on his expectations from the Budget, Godrej said this is the right time for Finance Minister to bring in measures to increase Gross Domestic Product (GDP) growth as his (FM's) subsidy bill would be much lower than in the past due to fall in crude oil and food prices.

"The stock market is firm, so disinvestment can be very strong during the next financial year. So, fiscal deficit can be managed and incentives need to be given to promote GDP growth," Godrej told CNBC-TV18's Ashmit Kumar.

He feels the government should look at decreasing the Minimum Alternate Tax (MAT). "There are important things to be done, one, the MAT rate needs to be halved because people are not able to take advantage of the incentives which are already there".

According to Godrej the other areas where the FM must focus is reducing corporate tax rates or remove surcharges and also to increase the slabs in personal income tax rates. "That will leave more money in the hands of people for consumption increases. By the end of the year he would have made up for all the revenue by giving these advantages and GDP growth rate would be much higher," he said.

Godrej feels there are two kinds of money waiting to be invested. One is Foreign Direct Investment (FDI) and the other is Indian investments. "Indian investments are headed up because the real interest rates are quite high. Today if you look at the Wholesale Price Index (WPI) it is actually zero or even slightly negative whereas the bank lending rates are 9-10 percent. So, the real interest rate is very high, it must come down," he said.

He also said that international investors are waiting to make sure that ease of doing business in India improves. "Once that happens, I expect some announcements in the Budget, then investments will pour in but if the GDP growth is accelerating well then investments will come in faster," he added.


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Hindalco Industries wins one more coal block; total 3

Written By Unknown on Sabtu, 21 Februari 2015 | 23.25

Hindalco had on February 15 bagged Kathautia mine in Jharkhand and also won GareIV/5 mine in Chhattisgarh on February 19.

Continuing aggressive bidding, Hindalco Industries  has bagged one more mine in the ongoing coal auction, taking the total number of blocks won by the firm to three that includes two in Chhattisgarh and one in Jharkhand.

"Hindalco is the highest bidder at Rs 3,001 (per tonne) for Gare Palma 4/4," Coal Secretary Anil Swarup tweeted. Hindalco had on February 15 bagged Kathautia mine in Jharkhand and also won GareIV/5 mine in Chhattisgarh on February 19.

Gare Palma IV/4 mine in Chhatisgarh is the third block bagged in the ongoing auction by the Aditya Birla Group  firm last night, sources said.

The bidding for the mine continued for more than 12 hours yesterday. The states will get over Rs 1 lakh crore, including royalty, over the next 30 years from sale of 17 coal blocks sold so far through the ongoing auction.

Besides, reverse auction for the power sector will result in benefits to the tune of Rs 37,050 crore to end-users by way of a cut in tariff, Coal Secretary Anil Swarup had said yesterday.

The government has put on block 19 mines in the first tranche of auction. Companies such as Jindal Power, Hindalco and Ultratech  and others have bagged 17 of them so far.

The Gare Palma IV/4 mine has extractable reserves of 12.30 million tonnes (MT). Hindalco emerged as the successful bidder among companies like ACC , Balco, Godawari Power  and Ispat, Jayaswal Neco Industries , Rungta Mines  and SKS Ispat and Power which were vying for it. The block was previously held by Jayaswal Neco Ltd.

The mine today on offer is Gare Palma IV/1 in Chhattisgarh which has extractable reserves of 49.57 MT. The companies vying for the mine are Balco, Hindalco and Rungta Mines.

In a clarification to Bombay Stock Exchange, Jindal Steel & Power Ltd  (JSPL) had said yesterday "in respect of the Coal Block of Gare Palma IV/1 (in Chhattisgarh to be put on sale tomorrow), the company has not qualified for the e-auction round on the basis of initial price offer submitted by it." Gare Palma IV/1 was earlier allocated to Jindal Strips (now JSPL).

Tomorrow is the last day for the auction of mines in the first tranche. The auction of second lot of mines will start from February 25. 

Hindalco stock price

On February 20, 2015, Hindalco Industries closed at Rs 156.40, up Rs 0.15, or 0.10 percent. The 52-week high of the share was Rs 198.70 and the 52-week low was Rs 96.95.


The company's trailing 12-month (TTM) EPS was at Rs 4.91 per share as per the quarter ended December 2014. The stock's price-to-earnings (P/E) ratio was 31.85. The latest book value of the company is Rs 177.87 per share. At current value, the price-to-book value of the company is 0.88.


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Sesa Sterlite plans corporate name change to Vedanta

Sesa Sterlite, the Indian subsidiary of Vedanta Resources Plc, a globally diversified natural resources company, plans to adopt a new corporate name; Vedanta Limited.

Sesa Sterlite , the Indian subsidiary of Vedanta Resources Plc, a globally diversified natural resources company, plans to adopt a new corporate name; Vedanta Limited.

The change in name would be subject to shareholder approval, says the company.

The company is engaged in the exploration and production of aluminium, zinc, lead silver, copper, iron ore, oil & gas and commercial power.

"The name change from Sesa Sterlite to Vedanta Limited unifies our growing portfolio of global operations, reflects our commitment to all our stakeholders and our ability to create value while aligning our identity," said Tom Albanese, Group CEO, Vedanta, adding that the organization is proud to be a part of the natural resources sector in India, contributing significantly to the Indian GDP.

"Our strategy to be the lowest-cost player and the most efficient will continue to be a critical foundation of our business operations," said Albanese.

The planned change in name of the company will have no impact on the operations of subsidiary companies Cairn India ,  Hindustan Zinc (HZL) and Bharat Aluminium Company(BALCO) and the divisions of Sesa Sterlite.

The company's operations across India are: Aluminium and power plants in Odisha, copper smelter and power plants in Tamil Nadu, iron ore business units in Goa and Karnataka and a power plant in Punjab.

The company's subsidiaries; BALCO operates an aluminium and captive power plant in Chhattisgarh, Hindustan Zinc has zinc, lead and silver mines in Rajasthan and Cairn India's oil and gas operations are in Rajasthan, Gujarat and Andhra Pradesh. Internationally, the company has zinc business units in South Africa and Namibia and iron ore operations in Liberia.

Sesa Sterlite stock price

On February 20, 2015, Sesa Sterlite closed at Rs 217.40, down Rs 1.75, or 0.8 percent. The 52-week high of the share was Rs 318.40 and the 52-week low was Rs 169.55.


The company's trailing 12-month (TTM) EPS was at Rs 3.47 per share as per the quarter ended December 2014. The stock's price-to-earnings (P/E) ratio was 62.65. The latest book value of the company is Rs 113.60 per share. At current value, the price-to-book value of the company is 1.91.


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Hyundai to push drive into SUV segment

"The next focus will be on sports utility vehicles.Two SUVs are lined up that will be modern with premium feel," Senior VP and head of sales, Rakesh Srivastava, said here on Friday on the sidelines of the launch of all-new 4S Fluidic Verna.

Auto major Hyundai Motor India is planning to put greater thrust on SUV segment with the launch of two products in this category this year.

"The next focus will be on sports utility vehicles.Two SUVs are lined up that will be modern with premium feel," Senior VP and head of sales, Rakesh Srivastava, said here on Friday on the sidelines of the launch of all-new 4S Fluidic Verna.

Without elaborating on details, he said that both could be into the compact utility vehicle segment. SUVs account for 21 percent of the industry with 2.5 million units and the numbers are growing, Srivastava said. Hyundai was aiming double-digit growth in 2015 against single-digit volume expansion forecast for the overall passenger car segment during the year.

"With robust product lineup, we are targetting double-digit growth in 2015 along with increase in our marketshare by 1 percent. In 2014 the company's marketshare was 16.3 percent," Srivastava said. "Now, after surpassing four lakh units in domestic sales, we are looking at five lakh number shortly despite the biggest challnege before the industry is on growth," he said.

In 2014, the passenger auto industry expanded by 3.2 percent, with excise benefit over the year before. According to reports, the company was targetting four new models within one year to boost sales. Srivastava said, the company did not wait for Budget or policy guidance before product launch, which was done purely on internal strategy.

However, the company doesn't have any immediate plan to increase manufacturing capacity.


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Kotak-ING Vysya merger deal gets CCI green signal

Kotak Mahindra had announced the buyout of ING Vysya Bank in an all-stock deal in November last year following which it had approached CCI for approval on the deal in December.

The proposed Rs 15,000-crore merger deal between  Kotak Mahindra and  ING Vysya has got the Competition Commission's approval.

According to the fair trade regulator, the merger, which would create the country's fourth largest private sector lender, is "not likely to have an appreciable adverse effect on competition in India".

In an order dated February 12 but released today, the Competition Commission of India (CCI) said that share of both entities in various relevant markets is "insignificant".

In this case, the regulator took into account multiple relevant markets including those for deposits, home loans, agricultural banking and card business. These were considered in accordance with the international best practices regarding the assessment of the mergers in the banking sector.

The CCI observed that the presence of large players in these markets would also "act as a competitive constraint to the parties".

It also said that since ING Vysya does not have significant market share in any of the relevant markets, "the proposed combination would not result in the removal of a significant competitor".

With regard to investment advisory services, securities depository services and portfolio management services, the CCI observed that the market shares of the parties are "insignificant in comparison to the other larger players present in the markets".

"There are large number of competitors, including banks and entities registered with the Securities and Exchange Board of India present in these markets," the CCI said.

As per the order, the merger scheme provides that for every 1,000 shares held by the shareholders of ING Vysya, 725 shares of Kotak will be allotted to the shareholders of ING Vysya. Kotak offers a wide range of banking and financial services through its 641 branches located across India.

The bank through its various subsidiaries, also provides life insurance, asset management, brokerage, investment banking and investment advisory services.

ING Vysya has 573 branches across India and offers retail banking, corporate banking and credit card services. In addition, ING Vysya provides portfolio management, investment advisory and securities depository services to its customers.

Kotak Mahindra had announced the buyout of ING Vysya Bank in an all-stock deal in November last year following which it had approached CCI for approval on the deal in December.

Kotak Mahindra stock price

On February 20, 2015, Kotak Mahindra Bank closed at Rs 1297.45, down Rs 7.5, or 0.57 percent. The 52-week high of the share was Rs 1440.00 and the 52-week low was Rs 662.55.


The company's trailing 12-month (TTM) EPS was at Rs 22.61 per share as per the quarter ended December 2014. The stock's price-to-earnings (P/E) ratio was 57.38. The latest book value of the company is Rs 159.00 per share. At current value, the price-to-book value of the company is 8.16.


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