ECONOMY - 2015 JANUARY

January 2

Bharat Forge acquires Mecanique Generale Langroise.
Auto component maker Bharat Forge has acquired France-based Mecanique Generale Langroise for 11.8 million euros (around Rs. 90 crore).
CDP Bharat Forge GmbH, a 100 per cent Germany-based subsidiary of Bharat Forge Ltd (BFL), has acquired 100 per cent equity shares of Mecanique Generale Langroise (MGL), the Pune-based firm.
Gadkari to launch e-approval for heavy vehicles.
In a move heralding digitalization in the heavy transport industry in India, the Surface Transport Ministry is ready with a web portal for online approval of heavy transport vehicles movement.
Surface Transport Minister: Nitin Gadkari.

January 4

Government to implement new Companies Act that includes setting up IEPFA and NFRA.
The corporate affairs ministry has charted its road map for full implementation of the new Companies Act that envisages setting up Investor Education and Protection Fund Authority (IEPFA) and National Financial Reporting Authority (NFRA) within six months.
About NFRA:
Through Section 132 of the Companies Act, 2013, the Central Government has introduced a new regulatory authority named as National Authority for Financial Reporting known as National Financial Reporting Authority (NFRA).
NFRA shall be responsible for monitoring and enforcing compliance of auditing and accounting standards and for that purpose, oversee the quality of professions associated with ensuring such compliances. 
About IEPFA:
The Central Government shall establish a Fund to be called the Investor Education and Protection Fund.
Donations given to the Fund by the Central Government, State Governments, companies or any other institution for the purposes of the Fund.

January 5

Cabinet clears 2G auction.
The Union Cabinet approved the largest ever telecom spectrum auction that is targeted to fetch at least Rs. 64,840 crore from the sale next month.
The government will sell 380.75 megahertz of second generation (2G) spectrum in three bands — the premium 800 MHz, 900 MHz and 1800 MHz
Proceeds from this year’s auction will help government reach its fiscal deficit target of 4.1 per cent of GDP.
SEBI moots curbs on wilful defaulters.
The Securities and Exchange Board of India (SEBI) proposed to amend the SEBI Act for imposing restrictions on ‘wilful defaulters’ from accessing the capital market.
The amendment suggests that no issuer would be allowed to make a public issue of equity and debt securities and non-convertible redeemable preference shares.
Wilful defaulters would also not be allowed to make public issue of debt securities and non-convertible redeemable preference share.

January 6

NCDEX gets FMC nod to launch forward trade in 7 commodities.
Forward Markets Commission gave approval to agri commodity bourse NCDEX (National Commodity and Derivative Exchange) to launch forward contracts in additional seven commodities including some pulses.
The approval has been given to launch both transferable and non-transferable specific delivery forward contracts at a fixed price in urad, tur, yellow peas, yellow soya bean meal, pepper, RBD palmolein and bajra.
In September 2014, NCDEX had launched trading in forward contracts.
Initially, it offered forward trading in sugar and maize.

Nomura forecasted Indian Economic growth at 5.5 percent for FY 2015-16.
The global financial services firm Nomura forecasted that Indian Economy will grow at 5.5 percent during the financial year (FY) 2015-16 and 6.6 percent during FY 2016-17.
The firm also forecasted that Indian Economy will also recover in FY 2015-2016. The recovery is likely to get support from easing inflationary pressures and measures towards economic reforms.
On Inflation, the report noted that input costs have moderated due to lower commodity prices, which along with still-subdued demand, has kept output prices stable.
However, the report noted that the period of a positive base effect on CPI inflation is over and CPI inflation is expected to rise from 4.4 percent in November 2014 to 5.5 - 6.0 percent in the next three months, before moderating back towards 5 percent after March 2015.
About Nomura
Nomura Holdings Inc. is a Japanese financial holding company and a principal member of the Nomura Group. It provides investment, financing and related services to individual, institutional and government customers on a global basis with an emphasis on securities businesses.
In October 2008, the company acquired Lehman Brothers Holdings’ investment banking and equities unit in Asia and Europe.

January 7

Unemployment rate up at 4.9% in 2013-14.
Unemployment rate in India rose to 4.9 per cent in 2013-14, mainly on account of increase in joblessness in rural areas despite the government's flagship employment scheme MGNREGA.
According to the latest survey report by Labor Bureau, a wing of Labor Ministry, the unemployment rate inched up to 4.9 per cent at all India level last fiscal, from 4.7 per cent in 2012-13.
Gujarat had lowest unemployment rate in the country last fiscal, while Sikkim had the highest.
On the positive side, the unemployment rate dropped in urban areas to 5.5 per cent in 2013-14, from 5.7 per cent in the previous fiscal.
Meanwhile, although 93 per cent of the households in rural areas benefited from MGNREGA, the unemployment rate increased to 4.7 per cent last fiscal, compared to 4.4 per cent a year ago.
Unemployment rate among men increased to 4.1 per cent in 2013-14, from 4 per cent in 2012-13. Among women, it increased to 7.7 per cent last fiscal, from 7.2 per cent in 2012-13. However, the unemployment rate among women came down to 12.4 per cent in urban areas, from 12.8 per cent in 2012-13.
The 'Fourth Annual Employment & Unemployment Survey 2013-14' has been conducted in all the states/UTs by covering all the districts. The field work was executed from January to July last year. A total of 1,36,395 households were covered by the survey -- 83,385 in rural areas and 53,010 in urban areas.

January 8

India to provide 69 million rupees assistance to Nepal for goiter control.
Indian Government decided to provide 69 million rupees to Nepal as assistance to launch the Iodine Deficiency Disorder Control Programme (IDDCP) for goiter control across the country.
Indian Ambassador to Nepal Ranjit Rae handed over a cheque of 17.25 million rupees as an advance payment to the secretary, Ministry of Commerce and Supplies, Nepal for launching the programme.
The IDDCP, earlier known as Goiter Control Programme, was signed under the financial assistance of Government of India on 3 August 2014 during the visit of Prime Minister Narendra Modi to Nepal.
India had so far provided grant assistance of 686 million Rupees to Nepal for the control of Goiter and other iodine deficiency disorders during 1973-1998, 2004-07, 2009-14 in the form of subsidy for re-iodization of salt, packing, transportation and advocacy.

India needs Rs. 26 lakh crore for infrastructure financing in 5 years.
Government will have to undertake a massive provisioning of Rs. 26 lakh crore for the next five years beginning 2015 to finance infrastructure projects to provide a fillip to 'Make in India' campaign and help the economy attain 7-8 per cent growth, says a study.
The study by industry body PHDCCI a Crisil Ratings also highlighted that investment norms for pension funds and insurance companies will have to be liberalized further to utilize their corpus to part finance infrastructure projects.
The analysis showed that out of the estimated Rs. 26 lakh crore amount required for infrastructure projects, almost 80 per cent will be needed for power, roads and urban infrastructure.
70 per cent of the projected Rs. 26 lakh crore investment for infrastructure financing will have to be funded through debt, with banks remaining the largest source of finance, while external commercial borrowings (ECBs) may provide funds to the extent of 14 per cent.
The remaining amount is expected to come through bonds issuance provided the bond market is further deepened with critical measures by RBI and SEBI.

January 9

SEBI proposed 'e-IPOs'.
Capital markets regulator Securities and Exchange Board of India (SEBI) has proposed draft norms for initial public offers (IPOs) in electronic form to boost retail participation, and a 'fast-track' route for already listing public listed firm to raise funds via follow-on public offerings (FPOs) and rights issues.
The proposed development comes as a part of efforts to boost fundraising from the markets via simplifying the process of IPOs, lowering their costs, helping companies reach more retail investors in small towns, and providing fast track route for FPOs and rights issues.
The proposed electronic-IPOs (e-IPOs) mechanism will enable investors to place bid for shares in the public offering online, eventually on mobile too, without signing any physical documents. The process will result in overall lower cost of public issues due to reduction in printing of application forms.
Under the proposed norms for e-IPOs, investors can submit applications to a registrar and transfer agent (RTA), a registered stock broker, a self-certified syndicate bank (SCSB) or a depository participant (DP). Depositories can access the stock exchange platform and, in turn, provide the same to their DPs or RTAs.

Kohlberg Kravis Roberts (KKR) has formed another non-banking finance company NBFC to provide loans to the real estate sector.
Private equity firm Kohlberg Kravis Roberts (KKR) has formed another non-banking finance company (NBFC) in the country to provide loans to the real estate sector.
Singapore’s sovereign wealth fund GIC, which has shown interest in the realty segment in the recent past, will also invest in the newly formed company. KKR said in a statement that it will provide structured credit solutions to the real estate sector.
KKR already operates an NBFC in India. “Since 2009, KKR has extended more than $2 billion of structured financing to 21 business groups in India through its credit and capital markets business,” the company said in a statement.
In 2014, KKR said it participated in three transactions aggregating to around $190 million. In private equity. KKR has been active in India since 2006, with total equity investments exceeding $1.5 billion.
GIC: Government of Singapore Investment Corporation.

Finance Ministry proposes new tax accounting standards for businesses.

To ensure consistency as well as clarity on taxation issues, the Finance Ministry has proposed new tax accounting standards related to income computation and disclosures by businesses.
The new draft of 12 Income Computation and Disclosure Standards (ICDS), for which comments have been sought from stakeholders till February 8, is aimed at having consistency in respect of issues that come under this ambit.
This ICDS is applicable for computation of income chargeable under the head ‘profits and gains of business or profession’ or ‘income from other sources’ and not for the purpose of maintenance of books of accounts.
With regard to tax accounting standards, a committee, set up by the Central Board of Direct Taxes (CBDT), had submitted its first interim report in August, 2011. The final report was submitted in August, 2012. The draft standards, proposed by the panel, were placed in the public domain for comments.
Under Section 145 (1) of the Income Tax Act, 1961, income chargeable under the head ‘profits and gain of business or profession’ or ‘income from other sources’ be computed in accordance with either cash or mercantile system of accounting regularly employed by the assessee. Section 145 (2) provides that the Central Government may notify ICDS for any class of asssessees or income.

January 10

Tech Mahindra signed definitive agreement to acquire Swiss firm SOFGEN Holdings Limited.
Tech Mahindra signed definitive agreement to acquire the Swiss firm SOFGEN Holdings Limited. Company did not disclose the details of the deal.
The deal is aimed at boosting the financial services offering by Tech Mahindra so as reach the top line target of 5 billion US dollar by 2015.
With this acquisition, Tech Mahindra will have the capability to offer a unique combination of change the bank and run the bank services to retail banking, private banking and wealth management customers globally.
This is the third deal Tech Mahindra has struck since November 2014. In November 2014, it had announced the acquisition of Lightbridge Communications for 240 million US dollar. In first week of January 2015, it formed a joint venture with Avion Systems, in which it will hold a minority stake.
SOFGEN offers solutions related to core banking. It has the second largest pool of Avaloq consultants globally and is Temenos’ most prolific partner. It has offices in Geneva, Chennai, Singapore, London and New York and it employs 450 people.

January 12

SEBI proposed easier norms for domestic mutual fund managers.
Securities and Exchange Board of India (SEBI) proposed easier norms for domestic mutual fund managers. SEBI has sought comments from public till 2 February 2015 on these proposals.
The proposed norms aimed to make it easier for domestic mutual funds to manage offshore pooled assets.
The norms proposed by SEBI.
20:25 Rule (=>Blocked)
It proposed to drop 20-25 rule requiring a minimum of 20 investors and a cap of 25 per cent investment by an individual investor in a particular scheme, for certain foreign entities.
Criteria of 20 investors with no single investor holding over 25 per cent may not be applicable to funds managed by local fund managers in regard to Category I and Category II FPIs (Foreign Portfolio Investors).
Category I FPIs includes government and government related entities and Category II FPIs includes both broad based entities such as mutual funds, investments trusts and persons such as portfolio managers, investment managers, asset management companies, banks among others.
Separate fund manager
It proposed to do away with the rule that requires appointment of separate fund manager for managing an offshore fund.
Currently, for managing an offshore fund it is allowed to appoint the same fund manager who is managing domestic scheme, only if.
The investment objective and asset allocation of such scheme and offshore fund are same.
The portfolio is replicated (at least 70 percent) in both the funds managed by that fund manager.
Such offshore fund is broad based fund i.e. the fund has at least 20 investors and no single investor accounts for more than 25 percent of corpus of the fund.
World Bank signs pact for Smart Cities.
The Government of Gujarat, the Government of India and the World Bank have entered into a tripartite agreement in support of Gujarat’s ‘swachhta abhiyaan’ and smart city initiatives, Chief Minister Anandiben Patel announced at the Vibrant Gujarat Summit.
Around 2,100 MoUs to the tune of Rs. 25 lakh crore and 1,225 strategic partnership agreements were signed at the Summit in the areas of skill development, defence, renewable energy and biodiversity.
Corporate heads Mukesh Ambani of Reliance Industries, Gautam Adani of the Adani Group and Kumar Mangalam Birla of the Aditya Birla Group have pledged investments worth Rs. 1 lakh crore and Rs. 20,000 crore and Rs. 20,000 crore respectively.
On the occasion, the government released a special Vibrant Gujarat postal cover.

Rio Tinto to invest $2.5 billion in two projects in India.
Global mining giant Rio Tinto will invest $2 billion to set up an iron ore project in Odisha and another $500 million on a diamond mine in Madhya Pradesh, but is waiting for approvals to move ahead, company CEO Sam Walsh.
He said that we have the potential for two projects. An iron ore project in Odisha with a $2 billion investment potential and a half a billion dollar investment in Madhya Pradesh in diamonds.

January 13

RBI and ECB signed MoU on cooperation in Central Banking.
RBI and the European Central Bank (ECB) on 12 January 2015 signed a memorandum of understanding (MoU) for cooperation in the field of central banking.
Feature of the Memorandum of Understanding
It provides a framework for regular exchange of information, policy dialogue and technical cooperation between the two institutions.
Technical cooperation may take the form of joint seminars and workshops in areas of mutual interest in the field of central banking.
ECB President: Dr. Mario Draghi.

World Bank projects 6.4% economic growth in India in 2015.
After slowing to sub-five per cent growth in the previous two financial years, the economy has started showing signs of pick-up as it expanded by 5.7 per cent and 5.3 per cent in the second and third quarter of 2015.
GST will create one common market and substantial saving for companies on logistics, especially if the structure of the GST is uniform.
About World Bank
President: Jim Yong Kim.
Headquarters: Washington D.C.

Zomato acquires U.S. firm.
Indian restaurant search services provider Zomato acquired U.S.-based rival Urbanspoon for about $50 million in one of the biggest overseas deals by an Indian startup and a company executive said it was in talks to raise about $100 million in fresh funding.
India's rapidly growing Internet- and mobile-based companies have attracted billions of dollars in funding in the last couple of years from foreign investors, including Japan's SoftBank Corp and Temasek Holdings Pvt Ltd.

January 14

Microsoft ties up with Idea for paid apps, games.
Handset maker Microsoft Devices has partnered with Idea Cellular to help subscribers of the telecom services firm pay for apps as part of monthly bills.
Idea users will be able to purchase premium apps and games from the Windows Store on Microsoft Lumia as well as other Windows-based smart phones and pay for them through integrated billing.
Note: The smart phone market in India is poised to grow over 70 per cent this fiscal and the app ecosystem is also booming.
About Idea
Headquarters: Mumbai.
CEO: Kumar Birla.
About Micro Soft
Headquarters: Washington, U.S.
CEO: Satya Nadella.

PVR set to acquire movie exhibition company SPI Cinemas.
The Ajay Bijli led PVR group is set to acquire Chennai's premier movie exhibition company SPI Cinemas, popularly known as Sathyam Cinemas.
This could end up to be the biggest deal in India's multiplex sector. The deal may close for a rather steep valuation of approximately Rs. 750-1,000 crore for just 40 odd screens, located predominantly in the Southern metro.
Note: Last month Carnival Cinemas paid a little over Rs. 700 crore to buy out Anil Ambani's Big Cinemas that has 242 screens across the country.

Bharatiya Mahila Bank inks pact with Lakme Salons to fund franchisees.
Bharatiya Mahila Bank at the moment inked an settlement with HUL arm Lakme Salons to deliver straightforward financing choices to gasoline ladies entrepreneurship.
This partnership would assist encourage extra ladies to turn into Lakme Salon’s enterprise companions. Mahila Bank has opened the 40th department and can shut the fiscal with 40 extra.
The mortgage ebook of the bank presently stands at Rs. 400 crore and has plans to shut the fiscal with Rs. 800 crore and deposit books to Rs. M,000 crore from the current Rs. 600 crore.

January 15

NFL, EIL and FCIL signed agreement to form Ramagundam Fertilizers and Chemicals Ltd.
The agreement is aimed at setting up new Ammonia and Urea plants at the existing site of Ramagundam Fertilizer plant in District Karimnagar in Telangana.
Execution of construction activities is expected to start in early 2016. The new plant at Ramagundam will be a boon for the farmers of newly created state of Telangana.

India’s Dec retail inflation soars to 5 pct in December as food prices rise.


December

November

CPI

5 per cent

4.38 per cent

Base Year for CPI 2011-12.
WPI-based Inflation raised 0.11 percent in December 2014.


December

November

WPI

0.11 percent

Zero

Base Year for WPI 2004-05.

January 17

Google CEO Larry Page emerges as 'business person of the year' for 2014.
Larry Page, Google's CEO has emerged as the 'business person of the year' for 2014, edging past the likes of Alibaba co-founder Jack Ma and Facebook CEO Mark Zuckerberg, according to Fortune magazine.
Page, who is Chief Executive Officer (CEO) and co-founder of Google, came on top in the 20 global corporate leaders' list compiled on the basis of various factors including company's performance, leadership style and total shareholder returns, the magazine said while bringing out its list.

India Rejects Patent for Gilead's Hepatitis C Drug Sovaldi.
India's patent office's decision to reject patent for the US-based Gilead Sciences' Hepatitis C drug Sovaldi has been welcomed by patient groups and organisations campaigning for affordable medicines.
The patent was rejected on the basis that "minor changes in the molecule" did not improve efficacy of the drug.
India does not allow 'incremental innovations' and on the same ground, had rejected the patent for Novartis's cancer drug Glivec, leading to a legal battle that attracted global attention.

January 18

Delhi HC bars Cipla from selling copy of Novartis respiratory drug.
The Delhi High Court has barred generic drugmaker Cipla from making or selling a cheaper copy of Novartis AG's respiratory drug Onbrez domestically, citing infringement of patents held by the Swiss company.
Cipla, India's fourth-largest generic drugmaker by revenue had launched its copy of Onbrez in New Delhi in October last year at a fifth of the original drug's price, citing urgent unmet need in India.
Railways keen to launch Gandhi Express, says Minister Suresh Prabhu.
Operating with the underlying credo of the government not entering commercial decision making, Railway Minister Suresh Prabhu wants general managers (GMs) to be empowered so that they take a call on tendering.
The Railways is keen to launch Gandhi Express, which would take domestic and foreign travelers to various points in Gujarat like Porbandar, Dandi, Sabarmati, Rajkot, Bhavnagar et al which dotted the Mahatma's early life.
Globally, there is huge interest in the Mahatma's early life and the Railways will plug and play into this by taking a train to all the destinations where he spent his formative years.

January 19

ONGC inked a MoC with Pan-IIT.
Oil and Natural Gas Corporation (ONGC) inked a Memorandum of Collaboration (MoC) with Pan-IIT (Indian Institutes of Technology) to work towards a collective R&D Programme for Developing Indigenous Technologies to enhance Exploration and Exploitation of Hydrocarbons and Alternate Sources of Energy.
About:
Pan IIT is a consortium of seven premier Indian Institutes of Technology namely, IIT-Kharagpur, IIT-Kanpur, IIT-Madras, IIT-Mumbai, IIT-Delhi, IIT-Guwahati and IIT-Roorkee.
The agreement was signed in Delhi in presence of Union Minister of Human Resource Development Smriti Irani and the Minister of State for Petroleum and Natural Gas, Dharmendra Pradhan. The MoC is a response to Prime Minister Narendra Modi’s Make in India initiative. 
The two institutes have identified seven thematic areas and sub-topics under the MoC.
The identified thematic areas includes Geological and Geophysical studies, Reservoir characterization, modeling and simulation, Oil and Gas Production and Recovery Enhancement, Software Development, Unconventional Energy Resources, Engineering solutions/ tools and technology development, Alternate Energy researches have been identified by both. 

January 20

India set to overtake China next year: IMF.
In its latest World Economic Outlook report released, the International Monetary Fund (IMF) projected that India will grow 6.5 per cent in 2016, overtaking China which, it projected, will slowdown to 6.3 per cent.
For 2015, the IMF forecast India will grow at 6.3 per cent, up from 5.8 per cent in 2014. China’s 2014 growth rate was 7.4 per cent.
The IMF said that global growth will receive a boost from lower oil prices, which reflect to an important extent higher supply.
Twitter Acquires India-Based 'Missed Call' Startup ZipDial.
Twitter announced that it has acquired Bangalore-based ‘missed call’ marketing platform, ZipDial.
The deal is the latest among a string of small yet high-profile acquisitions of Indian startups by global technology giants and augurs well for India’s burgeoning entrepreneurial ecosystem. The deal is said to be in the region of $30 M.
About ZipDial:
ZipDial assigns companies a special phone number which their brands can use in print ads or TV commercials.
Customers can call the number and hang up before they are charged for the call. In turn, brands can phone or send text messages about their business to the ‘missed callers’. ZipDial’s clients include Unilever, Disney, Gillette, Amazon, Facebook and, of course, Twitter, whose customers have used the platform for placing orders, receiving coupons or entering contests.
ZipDial was set up by California-born Valerie Wagoner who moved to India and was intrigued by the Indian ‘missed call’ system – where people call each other, let it ring once or twice and intentionally hang up, using the missed call to convey a message. ZipDial was launched in 2010.

January 21

MRIL net drops 37%.
Mcleod Russel India, the world’s largest bulk tea producer, has taken a hit to its net profit in the quarter ending December 2014.
The net profit, at Rs. 80.43 crore, was lower 37 per cent over the same period in the previous year. The company which now has operations in Vietnam and Africa, attributed its results to crop loss due to unfavourable conditions.
The Indian production continued to be lower till November due to unfavourable conditions in Assam which accounts for half of India’s tea production.
About:
McLeod Russel began planting tea in India in 1869 and today is the largest tea producing Company in the world.
It came into being in 1869, when Captain J.H. Williamson and Richard Boycott Magor, two Englishmen based in Calcutta, formed a partnership firm, Williamson Magor & Company, to service the requirements of tea estates in Assam.

January 22

SEBI launches MF utility portal.
The much awaited MF Utility (MFU) an transaction aggregating portal was launched by Securities and Exchange Board of India (Sebi) Chairman, UK Sinha.
The platform will facilitate the investors with a Common Account Number (CAN) which will enable them to transact in multiple schemes of various fund houses participating in MFU through a single transaction and consolidated payment.
Essentially, MFU is a shared infrastructure of all asset management companies (AMCs) in India to reduce duplication and increase efficiency, thereby reducing costs and provide customer convenience.
It also automates many activities and creates a conducive environment to move from paper based transaction to digitized transactions.

January 23

Foreign exchange reserves now at all-time high.
Data issued showed the forex reserves rose $2.67 billion for the week ended January 16 to $322.1 billion. Foreign currency assets rose $2.7 billion to $297.5 billion.
Gold reserves rose $392.7 million during the week to $19.4 billion.
Special Drawing Rights fell by $19.3 million to $4.11 billion.
India's reserve position with the IMF was down $5.2 million to $1.12 billion.
Note: A sharp rise in gold imports and a fall in export growth pushed the CAD to $10.1 billion (2.1 percent of gross domestic product)

January 24

Over 9 crore consumers sign up for LPG cash-subsidy scheme.
More than 60 per cent of LPG customers in the country have joined the ambitious PAHAL scheme for receiving cash subsidy so that they can buy cooking gas (LPG) at market price.
Over 9 crore consumers, out of a total customer base of 15.33 crore, have joined the Direct Benefit Transfer for LPG (DBTL) scheme and Rs. 2,262 crore in cash has been transfered to them.
About Scheme:
"The DBTL Scheme for LPG consumers (PAHAL) was launched on November 15, 2014 in 54 districts and in the rest of the country on January 1, 2015.
The Scheme aims to transfer the subsidy on LPG directly into the bank accounts of over 15 crore LPG consumers.
LPG consumers have time till March 31 to join the scheme, failing which they will not get any subsidy and will be forced to buy LPG at market rate.

January 25

SEBI vetting plan to allow banks convert corporate debt into equity.
The Securities and Exchange Board of India (SEBI) Chairman U.K. Sinha explained the regulator was working with the Reserve Bank of India (RBI) for a formula allowing banks to convert their debt into equity in corporates.
SEBI was the first regulator globally to come out with a ruling on Algo trading in 2013.
SEBI provided for higher penalties if there is very high order/ trade ratio. This means people are placing orders without any intention of executing those trades.
There was resistance from Algo traders and providers. 
SEBI have emphasizing on both AMCs and distributors that they have to try extremely hard to reach out to the investors.

January 26

Swiss gold exports to India cross Rs. 1.2 lakh crore.
The value of precious metal imported from Switzerland touched 17.1 billion Swiss francs (over Rs. 1.2 lakh crore) during the 11 month period from January till November end in 2014.
More than 457 kilograms of gold was exported from the Alpine nation to India during January - November 2014 period.
An analysis of numbers from both countries reveals that Switzerland accounted for over 60 per cent of gold imported by India.

January 27

Max India to be split into three separate companies.
Max India Ltd, which has interests in areas including insurance and healthcare, said its board had approved splitting the company into three different entities to streamline the business structure and sharpen focus.
Under the restructuring, Max India will be renamed Max Financial Services Ltd, and will focus on the group's flagship life insurance business.
The second company will manage investments in the health and related businesses, including Max Bupa Health Insurance.

Cabinet approves Rs. 3,705 crore as base price for 3G auction.
The Cabinet today approved a base price of Rs. 3,705 crore per megahertz (MHz) for 3G spectrum auction, a move which would help the government garner over Rs. 1 lakh crore along with sale of other mobile frequencies.
"Cabinet has approved a reserve price of Rs. 3,705 crore per MHz for 2100 MHz band (which is used for 3G mobile services)'', Telecom Minister Ravi Shankar Prasad told reporters here after the Cabinet meeting
The reserve prices for other bands -- 800 MHz, 900 Mhz and 1,800 MHz -- have already been approved by the Cabinet for the auction, which is scheduled to start from March 4 along with the 3G spectrum band.

DoT postpones spectrum auction to March 4.
The Department of Telecommunications (DoT) has deferred the auction of telecom spectrum by a week to March 4.
The auction for spectrum in 800-, 900-, 2100- and 1800-MHz band was originally slated to start from February 25 this year. The deadline for bidders to submit applications has also been extended by 10 days to February 16. The mock auction will now start on March 2-3, instead of February 23-24.

Govt not to appeal against Bombay HC order in Vodafone case.
Union Minister of IT & Communications Ravi Shankar Prasad says to assure the foreign investors by not appealing against the Bombay High Court order October last year, which ruled that Vodafone was not liable to be taxed in India in a transfer pricing dispute with the tax department. This will help other companies like Shell that also won a similar reprieve in the Bombay High Court last year.
Background:
The Bombay HC order went against the two-year-old tax demand from the Income Tax Authorities, who were hoping to collect as much as Rs. 3,200 crore in tax from Vodafone’s outsourcing unit in Pune. The amount included tax as well as interest for the IT demand for the year 2008-09.
Shell, IBM and Nokia are also fighting similar transfer pricing cases in India and today's government move will help these companies to close their tax cases in India.

January 28

Wipro bags multi-year contract from Allied Irish Banks.
Wipro, the home-grown IT major, has won a multi-year strategic infrastructure management contract from Allied Irish Banks, a leading bank in Ireland.

Goa lifts 2-yr ban on iron-ore mining, work may resume by March.
Goa has removed a two-year ban on iron ore mining and expects mines could be back up and running by March or April at the earliest.
Goa used to export about 50 million tonnes of iron ore a year before the mining ban was imposed in 2012 after a government report on illegal mining.
Note: India was once the world's third largest iron ore exporter and Goa its biggest exporting state. The return of Goa iron ore exports could further pressure global prices hovering around 5-1/ 2 year lows due to oversupply.
Foundation stone of T-Hub, biggest tech incubation centre, laid.
The Telangana government on Friday began work on T-Hub, which promises to be India's biggest incubation facility.
Telangana Information Technology Minister K. Tarakarama Rao laid the foundation stone for the facility at the International Institute of Information Technology (IIIT) at Gachibowli here.
Expected to be operational by June this year, it would be the largest centre for start-up and entrepreneurship activities in the country.
The T-Hub is being set up in collaboration with IIIT Hyderabad, the Indian School of Business (ISB) and the NALSAR University of Law.

Govt to sell 10 per cent stake in Coal India on January 30.
The government said it will sell a stake of up to 10 per cent in state-run Coal India (CIL) through an auction on the stock exchanges on January 30.
That stake would be worth as much as US $3.9 billion at current market prices.
The government, which owns close to 90 per cent of the coal miner, is selling 315.8 million shares with an option to sell another 315.8 million.
Background:
Note: The stake sale is part of a massive disinvestment plan by the government to raise about US $10 billion in asset sales during the current 2014-15 financial year ending March 31, 2015.

Suzuki's three plants in Gujarat to cost Rs. 8,500 crore.
Japanese auto major Suzuki Motor Corporation (SMC) plans to set up three plants at Hansalpur in Gujarat with a total capacity of 750,000 vehicles.
According to R.C. Bhargava, Chairman of Maruti Suzuki India (MSIL), the total cost is expected to be Rs. 8,500 crore.
Note: MSIL has two existing plants at Gurgaon and Manesar in Haryana.

January 29

India tops Credit Suisse Emerging Consumer Scorecard 2015.
The formation of a strong government at the centre which triggered a major revival in consumer sentiment in 2014 saw India rank first in the Credit Suisse Emerging Consumer Scorecard 2015.
The fifth annual Emerging Consumer Survey by the Credit Suisse Research Institute profiles consumer sentiment and its drivers across the emerging world providing insights regarding consumer sentiment and future consumption patterns.
The survey showed India as having the lowest consumption of beer, meat and cigarettes, the lowest ownership of cars and lowest access to the Internet.

January 30

India overtakes China as world’s leading gold consumer.
India overtook China as the world’s biggest gold consumer in 2014 as a global physical demand fell.
Chinese gold demand slid by more than a third last year to a four-year low of 866 tones.
Indian jewelers demand rose 14% last year to a record 690 tones, putting it back ahead of China as the world’s number one jeweler manufacturer.

India’s FDI increased by 26%.
According to latest Global Investment Trade Monitor report, India’s FDI increased by 26% in 2014 to nearly $35 billion with maximum growth in the services sector.
China toppled the US in 2014 as the world’s largest recipient of FDI – a position that the US had been holding almost consistently since the 1980’s.
This report was released by UNCTAD.

January 31

10% stake sale in Coal India to raise Rs. 24,000 crore.
The government will sell 315.8 million shares, or 5% stake, through an offer for sale, with an option to sell the same number of shares as a greenshoe option.
The disinvestment will help the government meet half of the Rs. 43,425 crore revenue targets from stake sales in the public sector, if the entire 10 per cent goes through.
The government currently holds 89.65 per cent stake in Coal India, which was listed through a record initial public offering in October 2010, raising Rs. 15,199 crore.
Base year change pushes 2013-14 GDP growth to 6.9%.
The Government, sharply revised India’s 2013-14 GDP growth estimate to 6.9% from 4.7%.
The 2012-13 growth estimation was revised to 5.1% from 4.5%.
The estimates released also follow a change in the base year for calculating national accounts to 2011-12 from 2004-05 in addition to the routine annual revision.
The changes have reduced the gap between the way India calculates GDP and the methodology used by the International Monetary Fund.

 


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