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Ispat Industries shares jump on JSW Steel's open offer

2010-12-22T13:37:00.001+05:30

Shareholders reposed faith in the company after JSW announced attractive open offer price

BY Siddharth Kumar
Delhi

Shares of Ispat Industries Ltd bounced back smartly on Wednesday and closed 11 per cent higher, after the Sajjan Jindal-led JSW Steel Ltd made an open offer to buy a further 20 per cent stake in the firm. The open offer was made at price, higher than the per share deal price announced on Tuesday.

JSW Steel, which announced the acquisition of a 41.3 per cent stake in Ispat Industries, on Tuesday for Rs 2,157 crore, has made an open offer at Rs 20.54 a share. The offer price is 3.5 per cent higher than the Rs 19.85 that JSW will pay to acquire 1,086.6 million equity shares in the debt-ridden company. The offer to Ispat shareholders begins February 12 and will close on March 3.

On the Bombay Stock Exchange, the Pramod Mittal and Vinod Mittal-promoted Ispat Industries ended the day at Rs 23.60. On Tuesday, the scrip had tanked 15 per cent to close at Rs 21.

The rise on the Ispat counter was significant, since investor sentiment in the broader market was weak and the BSE benchmark Sensex settled 44.5 points lower at 20,015.8. Even the JSW Steel counter witnessed profit-booking and ended 0.75 per cent lower at Rs 1,202.90.

Equity analysts said investors rushed towards the Ispat counter as they realised this deal is in favour of the company. "The deal undoubtedly stands attractive over the long term," said Kamlesh Bagmar, an analyst at brokerage house Prabhudas Lilladher.

The deal makes JSW Steel, India's largest steel company. Several big players of the industry, including steel czar LN Mittal's ArcelorMittal, Tata Steel Ltd, were in the race to acquire a stake in Ispat Industries.

The deal will help in timely execution of Ispat's capex plan of Rs 3,140 crore as funding issues are mitigated, given JSW Steel's strong credentials, said Angel Broking in a note to investors.

"We believe the acquisition is positive for JSW Steel in the long term, as it will become India's largest steel company with total capacity of 14.3 million tonnes (Greenfield projects have been difficult to implement because of land acquisition/environmental clearance issues)," it added.

According to Standard Chartered analysts, Satish Kumar and Saurabh Prasad, to fund the acquisition, JSW Steel will need to take on a debt burden of Rs 2000 crore or sell investments worth Rs 1700 crore.

http://www.tehelka.com/story_main48.asp?filename=Ws221210INDUSTRY.asp

Gold holds its glitter

2010-12-21T13:39:00.000+05:30

It has provided among the best returns on investment

BY Siddharth Kumar
Delhi

India is the biggest consumer of gold in the whole world

With gold prices charging north, Indian marriages have become expensive. The yellow metal, which plays a fundamental role in the marriage ceremony and is seen as a symbol of security as well as a sign of prosperity in India, is hovering around $1,390 (nearly Rs 63,000) an ounce in the international market and at around Rs 20,500 per 10 grams in local markets.

While the soaring price of gold may be spoiling marriage budgets of many Indian households, from an investor point of view returns from the metal this year has outperformed equity, which is considered as the quickest route to make money. In just one year, the value of money invested in gold has significantly grown, by 27 per cent, while the Bombay Stock Exchange’s benchmark Sensex -- the performing index among top 10 global indices – appreciated just 17 per cent during the same period. Over the past 10 years, the value of gold demand in India has increased at an average rate of 13 per cent per year, outpacing the county's real gross domestic product(GDP) growth by almost 6 per cent, according to World Gold Council (WGC). India is the world's largest gold consumer market.

Festivals, economic growth, gold's attraction as an investment and a good monsoon are key reasons for the likely rise in domestic gold prices. In the near term, gold is likely to remain elevated and will take cues from dollar movements, brokers said.

Gold is set for a 10th annual gain and analysts forecast it may hit fresh record highs by early next year as concerns over fiscal imbalances and currency tensions will continue to support investment demand for it.

Apart from the recent additional $600 billion worth of quantitative easing by the US, the weakening of dollar and associated fears of inflation, demand for the precious metal is also likely to be driven by higher gold price expectations as well as increasing availability and accessibility of gold investment products to retail investors.

“We expect a further rise in the prices of precious metals on account of” fresh worries in Europe “which may boost the metals appeal as a safe-haven investment,” brokerage house Nirmal Bang said in a note. Rising crude oil prices is also fuelling the movement of precious metal in global market, dealers said.

“European sovereign crises and geopolitical tension between North Korea and South Korea boosted demand for gold,” ICICI Securities said in a note on Tuesday. Praveen Singh, a research analyst at Sharekhan Commodities, is bullish on the outlook of gold and said that in “the present uncertain economic scenario, we think the yellow metal can reach $1,440 level easily in the next few months.” Gold made fresh all-time high on December 6, touching $1,424 per ounce, and has witnessed some profit-booking at those levels.

A patient investor, who parked savings in gold at the beginning of passing decade, would have made five times the initial investment.

Dealers in Mumbai said a fresh surge in demand is expected in domestic market by the middle of next month when Makar Sankranti festival marks the start of winter-sown crop harvest. The wedding season is already on and demand for jewellery is supporting further rise in the gold. India contributes to almost 15 to 20 per cent of world demand of gold and most of this is in the form of jewellery, said Tanushree Mazumdar, senior economist at National Commodities Exchange (NCDEX).

The demand is increasing in the world’s two largest markets, India and China, as rising income levels, high savings rates and strong economic growth continue to push up consumption.

To reap the benefit in the value of shining metal, financial planners too are advising people to have a minimum of 10 per cent to 20 per cent exposure in gold as part of an asset allocation strategy.

“Gold provides hedge against inflation in your portfolio and is a must for a diversified assets portfolio,” said Sejal Patel, a financial planner at Bonanza Portfolio Ltd. Small investors too are missing the golden chance to make money via exposure of their savings in the precious metal. Retail investors in India are diversifying their investment in gold by investing in gold ETFs (exchange-traded funds), which are basically mutual fund units where the underlying investment is almost exclusively in gold, said Mazumdar. “Though currently the size of the gold ETF market in India is small, but for trend-spotters, tracking investment gold ETFs would be an interesting exercise. It would also be one of the factors to look into when trying to analyse factors affecting demand for gold in India,” she added.

Investors who do not hold gold or view it purely as a temporary safe haven asset are failing to harness its full potential to protect wealth, says a study published by WGC. According to WGC forecast global gold consumption for 2010 will be higher than 2009 as a result of increasing levels of demand in India and China, sustained global demand for gold investment, together with growth in jewellery and industrial demand.

http://www.tehelka.com/story_main48.asp?filename=Ws211210COMMODITIES.asp

2010 most exciting year for India's IPO market

2010-12-20T13:42:00.000+05:30

Indian companies raised a record Rs 71,100 crore through public issue activities

BY Siddharth Kumar
Delhi

Going public was never as exciting in one calendar year as it was in 2010 for Indian companies that raised a record Rs 71,100 crore.

The last year of the passing decade, which many Dalal Street pundits term a golden period for public issue activities, would certainly be remembered for setting many records in Indian primary market history.

And if everything goes well with the Indian economy and global markets, the crazy debut saga of India Inc is unlikely to stop here as along with the Centre's ambitious disinvestment plan, there is a big pipeline of papers from private players for the next year, experts say.

"This year (2010) clearly can be termed as a hot period for fund-raising activity through the primary market. This journey is likely to continue with the same pace, if India's growth story does not slows," said Prithvi Haldea, chairman and managing director of Prime Database, which tracks the primary market.

The outlook for new issues seems bullish for the coming period as the government is focusing on modernising country's infrastructure, which would entail large expenditures. The energy sector will support manufacturing growth and emergence of retail as a new consumer class will also boost the activity, market experts say.

"Though it is very difficult to forecast the mood of stock market, going public activity is unlikely to slow in coming months here as India is one of the best performing markets globally and is blessed with strong economic fundamentals," said Yogesh Kapoor, managing director for North India (investment banking) at Enam Securities Private Ltd. According to Prime Database, nearly Rs 60,876 crore of funds are proposed to be raised by a little over 100 companies in the coming period. The list includes companies that have already received approval from market regulator Securities and Exchange Board of India and also those entities that have filed draft papers with the watchdog. "Given the pipeline of capital raising from both public and private sectors, we expect capital rising next year too will not slow," said a primary market analyst at a Mumbai-based domestic brokerage house who did not want to be identified. After a very tough 2008 and lacklustre 2009, the passing year was a clear revival period in the Indian public issue market that was mainly backed by government's mega share sale progamme.

Year 2010 features 70 public issues, which includes 62 initial public offerings (IPOs) and eight follow-on public offerings (FPOs), according to data complied by brokerage firm SMC Global Securities.

The total fund-raising through these issues was to the tune of about Rs 71,114 crore. Of this, fund-raising through 62 IPOs was worth about Rs 39,710 crore and via FPOs, nearly Rs 31,403 crore.

Not only in India but globally also, IPO fund-raising activity will set record levels in 2010. According to an estimate by global consultancy firm Ernst & Young *E&Y), the total amount raised through the IPO route is expected to exceed $300 billion by the end of this year, which will exceed the previous record (the $295 billion raised in 2007).

"Despite the fragility of economic recovery in Western markets, Asia's economic growth story and record-breaking debuts have fuelled a strong worldwide IPO recovery," E&Y said in its year-end Global IPO Update, released a week ago. In the first 11 months of 2010, IPOs worldwide have already raised $255.3 billion in 1,199 deals.

In the domestic market, the public sector dominated primary market activity this year as they had a lion's share of 70.2 per cent (Rs 49,946 crore) of the total issue size. "Whichever way you look at it, the year 2010 was an action-packed year for the Indian primary market, the most happening place being the Department of Disinvestment," said Jagannadham Thunuguntla of SMC Global.

The Centre, which has a target to raise Rs 40,000 crore during the currency financial year -- the highest ever in a single fiscal -- has already garnered Rs 21,000 crore till the end of 2010 by cutting its stake in companies like Engineers India Ltd, Coal India Ltd (CIL) and MOIL Ltd.

CIL's issue, through which the government mopped up Rs 15,200 crore in October, was the biggest IPO in the history of the Indian capital market. Another remarkable story of the year was the listing of Standard Chartered on the Mumbai market through the first ever issue of Indian depository receipts.

"With the strong and dynamic fundamentals of the Indian economy, such new kind of innovation cannot be denied in coming period also," said Kapoor of Enam Securities. In the September quarter of the current financial year, the Indian economy expanded by 8.9 per cent, giving the government enough reason to see a growth of 9 per cent during the full fiscal ending March. The Sensex, the country's most-tracked index, too reached a high of 21,108 points in November, and analysts believe foreign institutional investors' support to this growth will keep investor sentiment buoyant.

Interestingly, the kind of companies that hit the markets this year was diversified and a number of public issues can be seen from the new-age modern industries such as microfinance (SKS), fitness (Talwalkars) and coaching institutes (Career Point).

"Compared to some of the other emerging markets, India is trading only at a slight premium, which we believe is justified considering the superior relative growth outlook," Angel Broking said in a note to investors.

India ranks fourth among the top six top six markets for fund-raising this year, according to E&Y. Greater China tops the list, while the US stands second, followed by Japan. South Korea and Malaysia stand at fifth and sixth place, respectively, according to the E&Y report.

http://www.tehelka.com/story_main48.asp?filename=Ws201210MARKETSII.asp

Punjab & Sind Bank IPO oversubscribed 50 times

2010-12-16T14:16:00.000+05:30

Attractive price range in the public offering has contributed to the positive investor response

BY Siddharth Kumar
Delhi

Punjab & Sind Bank's (PSB) strategy to set an attractive price range for its initial public offering (IPO) helped the state-run lender in garnering great response with the share sale offer being oversubscribed 50 times by the end of issue on Thursday.

The only unlisted public sector lender, which entered the capital market with its IPO in a price band of Rs 113-120 per share, received excellent response from all categories of buyers, institutional, retail and employees. At the upper end of price range, the issue would fetch Rs 480 crore.

According to the National Stock Exchange website, in the portion reserved for qualified institutional buyers (QIBs), which includes foreign institutional investors and mutual funds, the offer was oversubscribed 49.8 times. Bidding by QIBs closed on Wednesday while Thursday was last date for non-institutional and retail investors.

The demand for PSB's IPO is almost similar to that of Nagpur-based MOIL Ltd, which on Wednesday was listed on the market with a net gain of 24 per cent on day one on the Bombay Stock Exchange (BSE). The state-run manganese ore miner's issue, which closed in the first week of December, was oversubscribed 49.16 times.

"There is strong appetite for investing in the PSU (public sector undertaking) offers," said Arun Kejriwal, founder of the Mumbai-based advisory firm Kejriwal Research & Investment Services Private Ltd. "The PSB issue is being offered at very attractive valuations," he added.

PSB, with 926 branches, is predominantly present in north and central India. The issue, which opened on Monday, was endorsed with "subscribe" tag by many domestic brokerage houses.

"PSB had one of the highest non-performing assets (8.1 per cent) in the industry in FY (fiscal year) 2005, which came down to one of the lowest in the industry (0.4 per cent) in FY 2010," Angel Broking said in note highlighting the bank's asset quality.

Going by share demand, the bank is likely to fix the issue price at the higher end of the price band, said an investment banking official involved in the issue, who did not want to be named.

Overall investment sentiment was also positive on Thursday on Dalal Street, with the BSE benchmark Sensex closing 217 points or 1.1 per cent higher at 19,864.85 points.

http://www.tehelka.com/story_main48.asp?filename=Ws161210MARKETINGII.asp

Govt approves sugar exports to benefit from robust global prices

2010-12-15T13:45:00.000+05:30

Export concerns of India and Brazil, and the flash floods in Pakistan in July and August contributed to high sugar prices

BY Siddharth Kumar
Delhi

The government on Wednesday allowed sugar mills to export up to 500,000 tonnes of the sweetener this season under the open general licence, which will help the domestic producers to get rich dividends thanks to high international prices.

Announcing the decision, Union Agriculture Minister Sharad Pawar said the permit of shipment will also help sugar producers "in giving good cane prices to the farmers."

Based on predictions of good production, India, the world's second largest producer of sugar, has permitted exports against the pending advance authorisation scheme and the advance licence scheme to take advantage of soaring international prices.

"The details on the export will be finalised within 10 days," Pawar said while addressing 76th annual general meeting of Indian Sugar Mills Association (ISMA), the apex body of sugar producers in the country.

The sugar industry has been seeking exports under the open general licence, or unrestricted exports, to cash in on robust global prices.

"At present, the international market is good for exports of sugars from India. The opportunity for Indian exporters may not remain beyond February 2011, as shortly thereafter the Brazilian sugar production and exports would begin," said Vivek Saraogi, managing director of Balrampur Chini Ltd and president of ISMA.

Due to export concerns of India and Brazil and the flash floods in Pakistan in July and August, sugar prices witnessed a sudden spurt in the global market and reached their highest point in the last 30 years last month.

"Export from India may help to ease out sugar prices in international market," said an agriculture analyst at a Mumbai-based brokerage firm who did not want to be identified. As per ISMA estimates, on-season production of sugar in 2011 will be around 25.5 million tonnes. The country's sugar production in the last marketing year was 18.8 million tonnes.

According to the Australian Bureau of Agricultural and Resource Economics and Sciences, sugar production in India during the current season is likely to be around 27 million tonnes because of increase in cane plantings.

The government has approved a hike in the levy paid to sugar mills to Rs 1,847.05 per quintal, against last year's Rs 1,757.50 per quintal.

http://www.tehelka.com/story_main48.asp?filename=Ws151210COMMODITIES.asp

Delhi Stock Exchange may restart trading before March-end

2010-12-14T15:36:00.000+05:30

Delhi Stock Exchange may restart trading before March-end

Long-dormant bourse would become third exchange in the country to offer equity trading

BY Siddharth Kumar
Delhi

After remaining non-functional for nearly a decade, the Delhi Stock Exchange (DSE) is now gearing up to restart operations with some technical upgradation and expects to kick off trading again before the end of current financial year.

"The bourse obtained the required approval from capital market regulator Securities and Exchange Board of India (SEBI) a month ago for the commencement of operations. According to the current plan, DSE will start functioning before the end of March 2011," DSE Chief Executive Officer (CEO) and Executive Director HD Sidhu said in an interview.

Trading activity on the DSE was halted in 2001, as the national capital's bourse -- like other regional stock exchanges -- lagged behind with respect to the required technology that made them unable to compete with the National Stock Exchange (NSE) that has a pan-India presence.

This time the bourse is ready with its online share trading platform which has been constructed in association with Financial Technologies (India) Ltd. The platform is equipped with Exchange Technology Framework Product Suite, a software said to be suited for promotion and successful operation of the exchange.

Though the exchange was expected to restart trading activities way back in 2009, it missed the deadline due to various reasons. However, Sidhu did not divulge the reasons behind the delay in the planned launch.

DSE would be the third exchange in the country to offer trading in the equity segment. At present, the NSE and the Bombay Stock Exchange are the two main bourses in India. As part of its business growth, DSE is also in talks with some other smaller regional stock exchanges (RSEs) such as Ludhiana Stock Exchange and Indore Stock Exchange.

"We are in talks with some RSEs and they have expressed interest in tying up with us. Once we start, I hope to see associations with such institutions," Sidhu said.

To lure companies, the exchange has offered an amnesty scheme to retain maximum number of compliant entities and to recover the arrears of listing fees.

About 2,700 companies are listed on the DSE, out of which 1,700 are exclusively listed on the bourse.

DSE, incorporated in 1947, has successfully completed its demutualisation process in August 2007, according to the SEBI guidelines.

http://www.tehelka.com/story_main48.asp?filename=Ws141210MARKETS.asp

Eight months on, NSE yet to start trading of US indices

2010-12-14T15:30:00.000+05:30

Rupee convertibility issue yet to be resolved

BY Siddharth Kumar
Delhi

A DEAL NSE and the Chicago Mercantile Exchange had signed a cross-listing agreement in March this year.

Investors in India wishing to bet on Dow Jones Industrial Average (DJIA) and the Standard & Poor's (S&P) 500, the world's two most-tracked equity indices, may have to wait for some more time.

This is because the National Stock Exchange (NSE), where the future contracts on these US indices were to be traded, is yet to announce a timeframe for their introduction.

Industry experts believe regulatory approvals from the Reserve Bank of India (RBI) may be a reason for the delay.

"Since in this case the matter of rupee convertibility is also involved, it may come under the review of central bank also," said Sandeep Parekh, a former Securities and Exchange Board of India (SEBI) executive director and founder of Finsec Law Advisors.

A futures contract is an agreement that allows an investor to bet on the underlying asset -- an index or a stock -- for a predetermined price and period.

NSE and the Chicago Mercantile Exchange (CME) had signed a cross-listing agreement in March this year.

Under the deal, DJIA and S&P 500 could be traded on NSE and Nifty -- the benchmark index of the NSE -- would be traded on the CME.

Several calls made to the SEBI spokesperson remained unanswered.

CME owns the rights for S&P 500 and DJIA and has given the licence to NSE for trade in futures contracts in India.

While the dollar-denominated derivatives contracts on Nifty have already been traded in the US, NSE is yet to start similar contracts on the American indices in rupee denominations on its platform. Almost eight months have passed on since the two bourses inked the cross-listing agreement.

Replying to a questionnaire, an NSE spokesperson said: "The agreement between the two exchanges won't be scrapped."

The spokesperson did not give any further details on when the trading would start.

In July this year, the CME has introduced two new contracts -- E-mini and E-micro S&P CNX Nifty Futures -- on its platform designed to access Indian market opportunities.

Investors can trade for nearly 23 hours on the CME Globex. These hours include the market hours in India except the last hour before the Indian market opens.

"The introduction of these two contracts will make Nifty available to a larger community of traders and investors across various exchanges and time zones," NSE Chief Executive Officer and Managing Director Ravi Narain had said earlier.

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Private sector IPOs succumb to stock market weakness

2010-12-14T14:18:00.000+05:30

Investors cold-shoulder to corporate offers but give a thumbs up to public sector floats

BY Siddharth Kumar
Delhi

Volatility and resistance to high valuations in the domestic stock markets in the recent past have dashed the aspirations of several corporate houses that have floated initial public offerings (IPOs), especially small and mid-sized ones.

However, public sector floats have not yet felt the heat.

The high prices of public issues from the private sector have failed to attract investors. The Rakesh Jhunjhunwala-backed A2Z Maintenance & Engineering Company Ltd's IPO, which closed last week, was the latest victim. The issue, after a number of hurdles, was fully subscribed only in last hour of bidding.

Last month, Ahmedabad-based Claris Lifesciences Ltd's IPO, too, failed to attract buyers initially and was forced to reduce its original price range. The issue later sailed through, after the company extended the bidding period.

Faced with a fresh weakness in the market, Delhi-based mobile valued-added services provider One97 Communications, which was set to hit the market in the first week of this month, has postponed the issue for the time being.

Market sources said the company will now come out with its IPO in the second or the third week of January. "It is a natural phenomenon. First-time comers into the capital market hesitate when market is not normal," said Kishore P Ostwal, chairman, CNI Research Ltd, a listed Mumbai-based brokerage firm.

The Sensex is down 1.2 per cent in the last seven days and fell 2.84 per cent in the last one month. But some believe the market downturn is not key to the success of an IPO.

"Pricing of the issue and the fundamentals of a company is the key driver to attract investors," said a senior official at Enam Securities, who did not want to be identified.

The postponement of issues, in fact, started in December as November saw five successful IPOs that raised Rs 16,188 crore. Interestingly, this was more than the total amount raised during the period between January and November 2009: Rs 14,345 crore from 16 issues, according to Grant Thornton.

However, it seems that weak investor sentiment has not deterred public sector enterprises from going ahead with their public floats. Punjab and Sind Bank (PSB) is confident that its IPO, which closes on Thursday, will sail through.

"The issue has been attractively priced and a good amount has been left on investors' table," said Ashwini Mehra of SBI Capital Markets Ltd, one of the lead managers to the PSB offering. Mehra is also a general manger at State Bank of India.

Analysts say that after the Coal India Ltd (CIL) record IPO, investors' perception for public sector offerings has improved. The recently concluded issues of MOIL Ltd and Power Grid Corporation of India Ltd, too attracted investors.

The follow-on public offer (FPO) of the state-run Shipping Corporation of India too was oversubscribed five times, even though the issue price was slightly higher than its existing price on the bourses.

"Volatility is the beauty of market," said PK Anand, executive director, PSB, when asked whether this is the right time to enter the market. “We are confident that the issue will get good response, he added.”

The IPO of PSB, which is the only unlisted public sector bank in India, is priced in the range of Rs 113 to Rs 120 per share.

“Currently, there is enough appetite in the market for public sector papers, and positive sentiment for such issues is helping the state-run entities not to worry about market volatility," Ostwal said.

http://www.tehelka.com/story_main48.asp?filename=Ws141210Private_sector.asp

Tirupati's famous laddus face battle on GI tag

2010-12-14T14:14:00.000+05:30

GI registry asks for counter-arguments

BY Siddharth Kumar
Delhi

Tirupati's famous laddus, the iconic sweet offered to devotees as prasadam at the world famous Lord Venkateswara Temple in Andhra Pradesh, now find itself at the centre of a bitter controversy over the grant of a geographical indication (GI) tag to this sacred sweetmeat.

Barely a year after getting protection under the intellectual property rights (IPRs), the laddu is now facing a threat that could see it losing this coveted tag.

The Tirupati Tirumala Devasthanams (TTD), the trust which runs the temple that is believed to be the world's richest Hindu shrine and also has the highest number of visitors, are busy preparing legal documents to prove that their laddus merit a GI certification.

The Chennai-based Geographical Indications Registry, the registered authority for GI certification in India, has issued a notice to TTD that seeking counter-statements to retain this coveted tag.

GI is a sign used on goods that have a specific geographical origin and possess qualities, reputation or characteristics that are essentially attributable to that origin. Once registered, the certification legally prohibits others to use the same brand or name for commercial or any other use.

Globally, Scotch whisky, Champagne and tequila are some of the other products that enjoy this status.

The GI Registry, which works under the office of the Controller General of Patents, Designs and Trademarks -- part of the Ministry of Commerce and Industry -- has sent a letter to TTD in response to an application filed by a Kerala-based IPR activist, RS Praveen Raj.

Raj had approached the registry in October this year seeking the removal of GI for Tirupati laddu. He argued that GI tag for these sweets pointed towards the complete commercialisation of religion. "Giving the Tirupati laddu a GI tag gives out a wrong message to the public, that temple prasadams are akin to industrial goods," he said.

PH Kurian, the controller general of patents, designs and trademarks, refused to comment, saying, "It is a legal matter. There will be a hearing, once we will get counter-statement from TTD in this regard."

Officials say it will take about four months to reach a final conclusion. "There are several procedures which we have to follow. We will proceed further after getting response from TTD," said GL Verma, deputy registrar of trademarks & GI.

A person familiar with the situation explained that TTD had sought GI protection for these laddus, the most sought-after prasadam for hundreds of thousands of pilgrims who throng Tirumala, to avoid it being replicated and sold on the black market by hawkers and middlemen.

TTD authorities did not respond to an email query. Several calls to the executive officer as well as public relations officer too remained unanswered.

When contacted, Praveen Anand, a veteran IPR expert lawyer at Anand & Anand -- the legal advisor to TTD on this issue -- said that there are "negligible chances" that the GI tag will be removed.

"It is a case where the GI was granted after detailed considerations and I do not think it can be removed so easily," Anand said.

http://www.tehelka.com/story_main48.asp?filename=Ws141210INTELLECTUAL.asp

Uncertainty hits MFIs' share sale plans

2010-12-06T14:25:00.000+05:30

Share Microfin Ltd IPO postponed for now, say sources

BY Siddharth Kumar
Delhi

The unrest in India's microfinance sector due to recent regulatory changes has spoiled the party for several microfinance institutions (MFIs) that had hoped to to tap the buoyant capital markets to meet their funding requirement.

Hyderabad-based Share Microfin Ltd, which was planning to hit the market in early 2011, has postponed its initial public offering (IPO) for the time being, people involved in the IPO planning told Financial World. Udai Kumar, chairman and managing director of Share Microfin, did not respond calls made on his mobile number.

Spandana Spoorthy Financial Ltd, another Hyderabad-based lender, has also reportedly shelved its IPO plan. Spandana, India's second largest MFI in terms of reach, was planning to come out with a share sale in IPO in the first of 2011.

"Microfinance is an emerging sector. It is facing trouble even before it could have reached the peak. The unrest in the sector is of course hitting the company's plan to get funds from public," said Jagannadham Thunuguntla, strategist at the Delhi-based brokerage SMC Global Securities.

"The uncertainties in sector is making hard for microfinance lenders, especially the smaller companies, to meet their fund requirement," said an official of one of the top MFIs. The official did not want to be identified.

The situation was not same four months ago and it seemed that all was well when the country's largest MFI, SKS Microfinance, mopped up Rs 1,600 crore through a highly successful IPO. This was first listing by an MFI in Asia and second in the world.

However, after Andhra Pradesh took the lead in setting a cap on the interest rate that could be charged by MFIs, the valuation of the SKS share has fallen sharply from its high of Rs 1,490 it was trading at two months ago. The scrip is now trading below its IPO issue price of Rs 985 per share. The SKS counter ended Monday at Rs 710.40, down 0.18 per cent, on the National Stock Exchange.

"Uncertainties in the sector is a major hindrance to meet fund requirement of players in this field," said an official of SKS Microfinance on condition of anonymity. He, however, clarified that SKS is well capitalised and has no dearth of funds.

The Indian microfinance sector has faced heightened regulatory scrutiny in past few months. Analysts said the sector's growth, access to funding, asset quality and operational costs has suffered severely because of these regulatory changes.

Andhra Pradesh passed an ordinance a month ago that enhances regulatory control on MFIs in the southern state. The government headed by then K Rosaiah made it mandatory for microfinance players in the state to register themselves, specify the area of operations, the rate of interest and system of recover.

Besides, under the new rules, MFIs collections have be on a monthly basis instead of weekly. Andhra's share of loans outstanding represents nearly 35 per cent of the sector's total portfolio, according to rating agency Crisil.

"Post-ordinance, the entire sector is in the wait and watch mode. As a consequence to this ordinance, fresh investment in the sector is on hold and lending from public sector banks is also not in very good," said Alok Prasad, chief executive officer of Micro Finance Institutions Network, an industry body of microlenders.

Additionally, the Reserve Bank of India has also announced formation of a sub-committee to assess MFI functioning. Moreover, the Union government has for a long time been mulling a regulatory act for the sector.

The small-scale lenders have attracted criticism from various quarters for charging high interest rates and the coercive means of recovery they are alleged to adopt.

Market experts also said that because of delay in IPOs by these companies, several private equity (PE) players are also worried as they are unable to cash in the buoyant Indian stock market, the best performer in top 10 markets across the globe. Public issues provide PE funds an option to exit a company by selling its stake.

http://www.tehelka.com/story_main48.asp?filename=Ws061210MICROFINANCE.asp

MOIL issue garners robust response

2010-12-01T14:30:00.000+05:30

Boosts Centre's divestment plan

BY Siddharth Kumar
Delhi

The initial public offering (IPO) of the state-run MOIL (former Manganese Ore India Ltd) received robust response from investors, institutional as well as retail, and was 54 times oversubscribed at close on Wednesday.

Market analysts believe the strong response to the Nagpur-based manganese ore miner will act as a booster to the Centre, which aims to garner Rs 40,000 crore by cutting its stakes in public sector undertakings this financial year..

The Rs 1,200-crore issue, which opened on November 26, was subscribed more than 26 times in the portion reserved for retail buyers. The increased retail limit of Rs 2 lakh against the earlier 1 lakh also helped the issue to bring higher subscription levels in retail portion, added analysts. In the non-institutional category, the IPO received bids for 143 times more than on offer for them.

“The response to the issue is mindboggling,” said Arun Kejriwal, founder of the Mumbai-based advisory firm Kejriwal Research and Investment Services.

Moreover, in the portion reserved exclusively for qualified institutional buyers (QIBs), which includes foreign institutional investors, mutual funds and insurance firms, the offer was subscribed more than 49 times the portion on offer for them, according to data on the National Stock Exchange (NSE) website. Bidding for QIBs closed on November 30 and December 1 was the last date for retail investors.

The issue, priced in a range of Rs 340 to Rs 375 per share, would see divestment of a 10 per cent stake by the Centre and 5 per cent each by the state governments of Maharashtra and Madhya Pradesh.

The recently share sales by Coal India Ltd (CIL) and Power Grid Corporation of India Ltd also attracted excellent support. “Clearly, these numbers would bolster the government's divestment programme,” added Kejriwal. Meanwhile, the follow-on public offering of the Shipping Corporation of India (SCI) was subscribed 44 per cent by the end of the second day on Wednesday. The offer, in the range of Rs 135 and Rs 140 per share, closes on December 3.

In secondary market also, the shares of SCI moved up and ended at Rs 144.10 each, higher by 0.31 per cent, on the NSE.

http://www.tehelka.com/story_main48.asp?filename=Ws011210MOIL_IPO.asp

Spicing up the market

2010-11-27T14:47:00.000+05:30

BY SIDDHARTH KUMAR

PHOTO: GETTY IMAGES

BETTING ON turmeric is fetching even better returns than investment in stock markets. At a time when the government and the Reserve Bank of India (RBI) are struggling to cool down inflationary pressures, turmeric prices have soared over 40 percent. The common man suffers but the spot price was quoting at Rs. 15,176.30 per 100 kg on 16 November on the National Commodities and Derivative Exchange (NCDEX) — which is a jump of 40.62 percent from the beginning of the year.

Interestingly, the BSE Sensex became the world’s best performing index earlier this month after touching its lifetime best of 21,000. This was a jump of 20 percent, while turmeric gained more than 40 percent. Thus investors betting on turmeric made more money than stock investors. “This year is beneficial for investors who put in their money in agriproducts like turmeric,” says Nalini Rao, senior research analyst at Angel Commodities.

Some equity analysts say there is a relationship between high production of commodities and stock prices. Better performance of commodities is good for companies if they use these products as raw material. “Busi - ness in some fundamental commodity products can be termed more lucrative in comparison to equities,” says Kishore Ostwal, chairman and managing director at the Mumbai-based CNI Research.

India is the largest producer, consumer and exporter of turmeric. “Lower supply in the market and higher demand are the major reasons behind turmeric’s soaring prices. In the past two years, its production was lower. This season production is good, but delay in fresh arrivals is pushing prices northward,” Rao adds. The price rise in spice is important, especially in the backdrop of the high inflation rate, which has forced the RBI to hike key policy rates six times this year. India’s headline inflation stood at 8.58 percent in October, while the food articles inflation rate for the same month was 14.13 percent.

“Food price inflation is a structural problem,” observes Aditi Nayar, economist at ICRA Ltd, while Finance Minister Pranab Mukhejee feels the basic problem is not merely on the demand side. “Inflationary pressures are coming from the supply side. International food prices are going up,” he explains.

High prices of food articles are a major concern for the common man in a country where about 800 million people earn less than $2 a day, according to the World Bank.

Investors betting on turmeric made more money than stock investors at the BSE Sensex

Indian turmeric, considered to be of the best quality due to its high curcumin content, has been rapidly gaining acceptance in global markets, pushing up exports exponentially; and the trend is likely to continue. Dealers say turmeric may trade even higher in the near future on firm demand from stockists, and fresh export enquiries coupled with lower carryover stocks in spot markets. Other commodities like pepper and cardamom too are likely to remain firm in the coming week. According to Angel Commodities, “lower turmeric stocks till fresh arrivals expected in January next year will control the near month futures (derivative contracts on NCDEX) from falling sharply down.”

The sheer volume of India’s turmeric production makes it a major player of the miracle spice used in cosmetics and medicine. According to the Spices Board of India, turmeric exports from April to September 2010 stood at 26,750 tonnes, as compared to 30,275 tonnes in the same period previous year.

siddharth.kumar@ fwtehelka.com

http://www.tehelka.com/story_main47.asp?filename=Bu271110SPICING_UP.asp

National Spot Exchange plans to launch new metal e-products

2010-11-26T14:38:00.000+05:30

Will allow smaller investors to participate in the demat trade

BY Siddharth Kumar
Delhi

The National Spot Exchange Ltd (NSEL) sees big opportunity for its e-series products, which allows retail investors to invest in physical commodities in dematerialised or demat form and is planning to launch 20 products under this umbrella by the next year.

E-series consists of a series of investment products in commodities, which are focused on retail investors. Bourse officials say these products are unique as they have turned commodities from mere hedging and raw material sourcing products to investment instruments.

The e-series functions exactly like the equities cash segment but offers commodities in demat form and in lower denominations, thus enabling even small-time traders to invest in these products, said Anjani Sinha, managing director and chief executive of NSEL.

The spot exchange would currently focus on e-series and sees its future growth coming from this segment, he said.

“We are working on a number of non-perishable commodities such as zinc and nickel that we want to launch next. We are planning to have more than 20 e-series products that would include several ferrous and non-ferrous metals by the end of next year.”

NSEL, promoted by Financial Technologies India Ltd (FTIL) and National Agricultural Cooperative Marketing Federation of India (NAFED), currently has three e-series products–e-gold, e-silver and e-copper.

Sinha claimed that since their launch early this year, e-gold and e-silver products have been a huge success with investors. The depository participants (DP) empanelled with NSEL have till date registered more than 22,000 demat accounts.

The e-series have also proved to be a better investment option over other popular investment products in commodities, such as physical gold and exchange-traded funds as these have given more than 25 per cent return in less than six months, said Sinha.

“There has been consistent growth in turnover as well. The current turnover in e–series products ranges between Rs 100 crore per day to Rs 200 crore per day. With more commodities coming under this series, turnover will soon be reaching to the level of Rs 500 crore per day,” he said.

E-copper has been a hit too, witnessing significant volumes and turnover since its launch last week. On the first day of its launch, investment in e-copper was more than Rs 70 crore while the closing price was Rs 452.10 per kg. Boosted by the success of its e-series products, NSEL’s total turnover at the end of its second year of operations soared by a whopping 235 per cent to Rs 7,320.47 crore.

http://www.tehelka.com/story_main48.asp?filename=Ws261110COMMODITIES.asp

Excess UP rains hit sugar production

2010-11-18T13:46:00.000+05:30

Production may not meet its target this year but that is not leaving the sugar industry worried as even a slightly lower achievement would be much better than last year's

BY Siddharth Kumar
Delhi

Sugar production in India may not touch the target of 25.5 million tonnes this marketing year due to excess rain in Uttar Pradesh that has affected the cane yield in the state.

Production may not meet its target this year but that is not leaving the sugar industry worried as even a slightly lower achievement would be much better than last year’s, analysts observed.

“Rain impacted badly on cane crops in Uttar Pradesh and consequently production target for the state this year has been reduced to 6.66 million tonnes from the earlier estimate of 7.09 million tonnes,” said an Indian Sugar Mills Association (ISMA) official, who did not wish to be identified.

According to Vivek Saragoi, managing director of Balrampur Chini Mills Ltd, sugar production in Uttar Pradesh, India’s second largest sugar producing state, would suffer as rains have devastated the cane crop. On Wednesday the International Sugar Organisation (ISO) lowered its 2010-11 world production estimate and said the surplus sugar stocks would be 1.29 million tonnes, less than half its previous production.

The world body hopes for a record sugar production of 169 million tonnes this year, but inclement weather in key sugar producing countries has prompted the global body to slash its output estimate for August by 1.4 million tonnes.

The ISO has also lowered the initial production forecasts for China, the European Union (EU), Russia, Ukraine and Colombia, apart from the largest sugar producing nations. India is world’s second largest producer of sugar after Brazil.

Flash floods in Pakistan in July and August had wiped out large tracts of maturing crops, leading to a spurt in sugar prices in the international markets.

“Commodities prices have moved northward in the recent past on firm demand and lower supply,” said Ravindra V Rao, assistant vice president (commodities advisory) at Unicon Commodities. Sugar prices recently crossed a 30-year high in international market and are seen remaining high and extremely volatile. “Outside Asia, crop expectations for Egypt, the EU and the US were also curtailed,” said the Food and Agriculture Organisation.

However, according to ISMA forecasts India is likely to produce 25 million tonnes of the sweetener in 2010-11. The country’s sugar production in the last marketing year (October to September) was 18.8 million tonnes.

“Bad weather and other factors could lead to a shortfall in sugar production but it will not be worrisome,” said Mehul Agrawal, research analyst (commodities) at Sharekhan, an online trading portal. India is expected to decide on easing curbs on sugar exports after the actual production figures are available, Agriculture Minister Sharad Pawar had told Parliament recently.

http://www.tehelka.com/story_main47.asp?filename=Ws181110SUGAR.asp

MOIL scouting for overseas mines ahead of IPO

2010-11-15T14:30:00.001+05:30

Expecting higher demand for manganese

BY Siddharth Kumar
Nagpur

Government-run MOIL Ltd, formerly Manganese Ore (India) Ltd, which is expected to hit the capital market with a Rs 1,500 crore initial public offering (IPO) later this month, is scouting for mines overseas. The company expects higher demand for manganese in the coming years.

"We are looking to acquire mining properties in South Africa, Congo and Turkey, as the demand for manganese by Indian steel producers is expected to rise in the near future," said KJ Singh, chairman and managing director, MOIL Ltd.

"We are at the initial stage of acquisition. We have sufficient cash balance for such deals - about Rs 1,700 crore," added GP Kundargi, director (production and planning), MOIL. "MOIL is a debt free company and has healthy profit margins."

MOIL currently has 10 mines -- six located in the Nagpur and Bhandara districts of Maharashtra and four in the Balaghat district of Madhya Pradesh. All these mines are about a century old. Most of the mines are underground except three which are open-cast.

Tehelka visited MOIL’s Kandri mine, which is an underground mine in the Nagpur district and found that the company maintains high safety standards. Unlike coal blocks, where gases like methane and carbon mono-oxide pose a threat to human health, mining at Kandri was quite clean. The working conditions in the mine were quite conducive with proper ventilation and good lighting. “The output at Kandri is about 60,000 metric tonne per annum and 700 people working on the site”, said Kundargi.

According to rating agency CARE Research, with increasing domestic steel capacities the demand for manganese ore is expected to be strong.

For the production of steel, manganese is a key component. Industry experts say India's steel output is likely to increase to 120 metric tonne by 2012 from about 70 metric tonne at present.

MOIL Ltd's 20 percent stake sale is expected to fetch about Rs 1,500 crore. The company's public offering of 33.6 million shares, comprises 10 per cent stake sale by Centre and 5 percent each by Madhya Pradesh and Maharashta governments.

At present, the union government holds 81.57 per cent in the company, Maharashtra 9.62 per cent and Madhya Pradesh 8.81 per cent.

The government-run miner's officials say the company is getting full support from its employee union for this stake sale. “We see bigger participation under the staff quota of the IPO,” Kundargi added.

MOIL, which functions under the Ministry of Steel, had a profit after tax of Rs 466 crore for the financial year 2009-10.

(The visit to Kandri mines (Nagpur) was sponsored by MOIL)

http://www.tehelka.com/story_main47.asp?filename=Ws151110moil.asp

Trading on the move, NSE style

2010-11-09T15:35:00.000+05:30

Trading on the move, NSE style

NSE kicks off trading via the mobile phone

BY Siddharth Kumar
Delhi

The National Stock Exchange (NSE) kicked off mobile trading to enable investors to execute buy or sell orders any time on the move, even while roaming outside the country.

So far, only a handful of member brokers provided this option to their clients, at their own cost. But now, for the first time an Indian exchange will provide this facility to all traders, the bourse said in a statement.

The facility will be available through brokers who have enrolled for NOW – the software used by NSE members – free of cost, the statement said. The brokers or the clients will not have to make any investments.

Investors will be able to trade through their GPRS-enabled mobile sets, while travelling anywhere in India or abroad. They will have access to trade in the cash market, derivatives or currency, just the way they do on their trading terminals, and at the same speed.

“This is another facility the exchange is providing to the large universe of investors, to make trading simpler and easily accessible to clients on the move,” said Ravi Narain, chief executive officer and managing director, NSE.

“Someone sitting in a remote corner like Darbhanga or Siliguri” execute trades, he added. “We expect that nearly 5 million investors would benefit from this move.”

http://www.tehelka.com/story_main47.asp?filename=Ws091110TECHNOLOGY.asp

PowerGrid FPO fully subscribed on Day 1

2010-11-09T15:27:00.000+05:30

BY Siddharth Kumar
Delhi

Investors planning to bid for a bigger pie in the state-run Power Grid Corporation of India Ltd’s (PGCIL) follow-on public offer (FPO) after the changed investment limit for retail investors will be disappointed, as the market regulator is yet to officially notify the amendments.

Last month, the Securities and Exchange Board of India (SEBI) had approved an increase in the application limit in public issues for retail investors to Rs 2 lakh from the existing Rs 1 lakh.

The decision to hike the retail limit is yet to be notified by the SEBI and hence the new increased cap “will not be applicable to the Power Grid Corporation of India Ltd’s follow-on public offer,” Union Disinvestment Secretary Sumit Bose told reporters here on Tuesday, during a road show of the state-run power transmission major.

PGCIL has came out with a public offering worth about Rs 7,600 crore and the issue has received good response from investors as it was fully subscribed on the first day of launch on Tuesday. In the secondary market as well, shares of PowerGrid bounced back and gained 5.49 per cent to close at Rs 103.75 each on the Bombay Stock Exchange. In the previous session, the scrip had fallen 3.6 percent.

“Since the FPO is on, volatility in the stock cannot be ruled out,” SMC Global Securities strategist Jagannadham Thunuguntla said.

The issue, priced in a range of Rs 85 to Rs 90 per share, closes on November 12. However, for qualified institutional investors, the bidding will end on November 11. A discount of 5 per cent will be offered to retail investors and employees on the FPO issue price.

The state-run navratna firm is the country’s largest power transmission company and aims to double its capital spending to about $27 billion (about Rs 112,000 crore) in the five years following April 2012.

“We expect PGCIL to achieve the capex (capital expenditure) of Rs 550 billion (Rs 55,000 crore) targeted under the Eleventh Plan, despite meaningful delays in generation capacity additions, given the incremental capex towards high-speed transmission corridors,” domestic brokerage house Motilal Oswal said in a note.

Under the issue, the Centre is divesting its 10 per cent stake by offering to offload its 420 million shares. The FPO also comprises a fresh issue of 420 million shares, representing another 10 per cent stake. Post-issue, the government’s total stake will come down to 69.4 per cent.

According to PGCIL Chairman and Managing Director SK Chaturvedi, the company plans to expand its telecom infrastructure network, including further diversification into value-added services.

The firm aims to diversify into the business of leasing its tower infrastructure to independent tower firms and telecommunications service providers and has appointed a consultant for the same.

The company has also floated tenders for the selection of telecom tower infrastructure providers for utilising its transmission towers in Punjab, Haryana, Himachal Pradesh and Jammu and Kashmir, he said. According to the Motilal Oswal report, “The revenue potential of this business could possibly be Rs 4.5- 5 billion.”

When asked whether the PGCIL issue will be able the generate the kind of demand Coal India’s Rs 15,200 crore initial public offering (IPO) did, Chaturvedi said, “The two should not be compared as demand for an IPO is different from a FPO.”

PGCIL had been entrusted with the statutory role of Central Transmission Utility (CTU) by the government. As CTU, the company operates and is responsible for the planning and development of the country’s nationwide power transmission network, including interstate networks. It was ranked as the world’s third largest transmission utility by the World Bank in January 2009.

http://www.tehelka.com/story_main47.asp?filename=Ws091110MARKETS.asp

The feud continues

2010-11-08T15:33:00.000+05:30

MCX-SX challenges SEBI order with writ petition in the Bombay High Court

BY Siddharth Kumar
Delhi

MCX Stock Exchange (MCX-SX), which is at loggerheads with the capital market regulator, has filed a petition in the Bombay High Court challenging the order of the Securities and Exchange Board of India (SEBI) that rejects the bourse’s application against their starting business in equity and some other segments.

The writ petition was filed on October 29 and is expected to be taken up for admission after the court vacation.

"We have confidence in the judicial system and we are sure that justice will prevail," MCX-SX Managing Director and Chief Executive Joseph Massey said in a statement.

SEBI on September 23, 2010, had passed an order rejecting the application made by the bourse to get a regulatory nod for commencement of trading in equity, futures and options, wholesale debt market and other segments products. SEBI cited the failure to comply the mandatory shareholding norms by promoters, among several other issues, for the rejection of the application.

Earlier, in July, MCX-SX had dragged the market watchdog in the Bombay High Court for delaying the decision over its application to start new products.

MCX-SX, promoted by Multi Commodity Exchange (MCX) and Financial Technologies (India) Ltd (FTIL), presently offers trading in currency derivatives.

In a further setback to MCX-SX, last month SEBI granted the green signal to the National Stock Exchange and the Bombay Stock Exchange (BSE)-backed United Stock Exchange to begin trading in currency options. MCX-SX, however, failed to get the nod till now to start trading in currency options, a derivative instrument used to hedge against currency fluctuations.

"The recent decision of SEBI not granting currency options to us along with other exchanges was vindictive, biased and discriminatory, like its earlier decision of not granting IRF (interest rate futures) to us. Such a decision has already started impacting our business adversely," Massey said.

Despite a weaker broader market, shares of FTIL on Monday gained over 2 percent on the BSE to settle at Rs 1,063.40 each. The BSE bellwether Sensex shed was down 0.7 per cent.

http://www.tehelka.com/story_main47.asp?filename=Ws081110TheFeud.asp

BSE adds Rel MF's liquid schemes to its MF trading platform

2010-01-17T14:37:00.001+05:30

Mumbai, Jan 8 : The Bombay Stock Exchange, the Asia's oldest bourse, today said it has added the liquid schemes of Reliance Mutual Fund to the slew of schemes offered through the exchange's mutual fund trading platform that was launched last month.

BSE's StAR MF has added liquid schemes of Reliance MutualFund to its slew of schemes offered through its mutual fundtrading platform, the exchange said in a statement.

"This introduction would provide an additional option tothe retail investors, institutions and other mutual fundparticipants to park their overnight surplus funds and earnhigher interest," it said.

Liquid schemes run by AMCs (asset management companies) usually invest in money market and other permissible debtinstruments.

For all transactions in liquid schemes through the StARMF platform, the subscription units will be computed on thebasis of the NAV of the previous day to the one on which thefunds are received by the AMC from the exchange.

"I am confident that this additional avenue made availablethrough the exchange platform would find favour with severalinvestors, broking community and corporates," BSE's MD & CEOMadhu Kannan said.

"Gradually more and more enhancements to the BSE StAR MFplatform would be made for the convenience of the investors,the industry and the market at large," he added.

BSE's StAR MF was launched on December 4 lasy year with 7AMCs and over 300 scheme options.

JSW Steel production rises 88 pc in Q3

2010-01-17T14:36:00.001+05:30

Mumbai, Jan 5 : JSW Steel, the country's largestprivate sector steel maker by domestic capacity, today saidits production rose 88 per cent to 14.69 lakh tonnes in thethird quarter of the current fiscal.

The company's crude steel production during thenine-month period ended December 31, 2009 was 43.9 lakhtonnes, up 59 per cent over the corresponding period lastyear.

During the December quarter last fiscal, the company'scrude steel production was at 7.82 lakh tonnes, JSW Steel saidin a statement to the Bombay Stock Exchange.

Production of flat-rolled items, used by the auto andconsumer durables industry, surged 51 per cent to 9.41 lakhtonnes in October-December quarter compared with the sameperiod last fiscal.

Production of long-rolled steel products, primarilyconsumed by the construction sector, also surged by 199 percent to 2.37 lakh tonnes in the latest quarter compared withthe same period a year ago.

JSW Steel, which belongs to the JSW Group, is one thelowest cost steel producers in the world.

Shares of JSW Steel were trading at Rs 1,117.20, up 9.18per cent in late afternoon trade on the BSE

NSE successfully completes live trading from alternate site

2010-01-17T14:34:00.002+05:30

New Delhi, Jan 12 : The National Stock Exchange today said it completed a full-day live trading from its businesscontinuity site sucessfully on Monday.

The Bussiness Continuity Plan (BCP) site, located inChennai, is an alternative for the exchange's main serversituated in Mumbai, an NSE official explained.

The NSE has put in place the new arrangement to tacklebreakdowns due a natural calamity like earthquake and cyclone, the official said.

A NSE statement said the exchange completed tradingoperation from the BCP site during the day and then restoredback to the primary site in Mumbai.

During yesterday's trading all markets like capitalmarket, equity derivatives, whole sale debt market, mutualfunds, IPOs and currency derivatives were operational from theBCP site, the NSE said.

"Our IP network has been engineered for operation fromeither of our two sites and our members can connect to eitherof the two sites with great ease," it said.

NSE processed more than 75 million orders messages andexecuted more than 8 million trades from its BCP site, whichincludes a record number of trades in currency derivativessegment amounting to 4.3 million contracts equivalent to USD4.3 billion.

NSE gets award for energy conservation efforts

2010-01-17T14:32:00.001+05:30

Mumbai, Jan 11 : The National Stock Exchange todaysaid it has bagged the first prize in the High Tension Commercial segment by Tata Power for measures taken in the field of energy conservation.

"The NSE has bagged the first prize in the H T Commercialsegment for 2009 for the innovative measures taken for energyconservation at its office premises, the exchange said in a statement.

Tata Power has constituted an award for efforts in energyconservation by its clients in Mumbai.

It evaluated companieson the basis of technologies adopted or deployed and theenergy saved on account of the same.

The NSE was awarded the prize for implementing thermalenergy storage system in heat ventilation air conditioningsystems, energy efficient lighting system, building management system and for the awareness in the organisation forsustaining the initiatives.

NSE seeks trademark for currency derivatives label

2010-01-17T14:31:00.001+05:30

New Delhi, Jan 10 : The National Stock Exchange hasapplied before authorities for registration of trademark forits 'Currency Derivatives' label.

The exchange has approached the Trade Marks Registry forthe registration of trademarks for 'Currency Derivatives'label under different classes, as per details available withoffice of the Controller General of Patents, Designs & TradeMarks.

NSE's currency derivatives label features signs of threecurrencies -- US dollar, euro and Japanese yen. As perdetails, NSE made its application on September 1, 2009.

Trademarks are distinctive signs, used to differentiatebetween identical or similar goods and services offered bydifferent producers or services providers. Trademarks are atype of industrial property, protected by intellectualproperty rights.

Currency derivatives is a contract between the seller andthe buyer, whose value is to be derived from the underlyingasset, the currency amount.

NSE is the first stock exchange in India to launchtrading in currency futures. Trading in currency futurescontract started in August 2008 on the NSE.

Financial Technologies-promoted Multi Commodities Exchange is the main rival of NSE in currency derivatives.

There has been a consistent month-on-month increase in thenumber of contracts traded in currency futures segment at NSE. Average daily volume for the month ended December 2009, was atUSD 1,952.59 million, as per the NSE data.

NSE has applied for registration of currency derivativeslabels in different classes including class 9 and 28.

Class 9 of trademarks rules deals with computer, electricand electronic equipment for data transmission, receiving andmanipulation, electronic accounting and banking equipment andothers. Class 28 is about games and playthings, gymnastic andsporting articles among others.

FIIs pump over Rs 3,000-cr into markets in a day

2010-01-17T14:30:00.001+05:30

Mumbai, Jan 11 : Overseas investors today made a netinvestment of Rs 3,041.56 crore in the domestic stock markets.

Foreign institutional investors (FIIs) were gross buyerof equities worth Rs 5,973.59 crore, whereas they sold sharesvalued worth Rs 2,932.03 crore, resulting in a net inflow of Rs 3,041.56 crore, as per the provisional data available withthe Bombay Stock Exchange (BSE).

Domestic institutional investors (DIIs) were also in purchasing mood and were net purchasers of stocks worth Rs322.46 crore.

On Friday, foreign houses were the net investors ofshares worth Rs 150.80 crore, according to the latest Sebidata.

In today's trade, NRIs and proprietors also followed FIIsand in total were net buyers of Rs 28 crore equities.

Brokers, on the behalf of their clients, were also netpurchasers of equities worth Rs 40.58 crore.

The Sensex today closed at 17,526.71, down by 13.58points or 0.08 per cent, stretching its losses for the third straight session.

Overseas investors infuse Rs 3,700 cr in first week of 2010

2010-01-17T14:28:00.001+05:30

New Delhi, Jan 10 : Overseas investors infused a netRs 3,700 crore into the stock market in the first trading weekof the New Year, reflecting an impressive start for 2010 afterrecord inflows in the last year.

Foreign institutional investors (FIIs) were gross buyersof shares worth Rs 13,738.80 crore, while they sold equitiesvalued worth 10,000 crore, resulting in a net investment of Rs3,738.70 crore, as per the data available with capital market regulator SEBI.

FIIs poured in a record over Rs 83,400 crore in the domestic equities in 2009.

For the week ended Friday, FIIs were the net investor ofRs 4,417.90 crore in debt instruments, according to the databy Securities and Exchange Board of India (SEBI).

Interestingly, during the period under review (January4-8) the Bombay Stock Exchange benchmark Sensex grew by 0.43 per cent to close at 17,540.29 points.

Worth to mention, during the year 2009, stock market barometer Sensex registeredan impressive gain of over 81 per cent.

Last year's investment of Rs 83,400 crore by FIIs is thehighest inflow in the country in rupee terms in a single yearand came a year after overseas investors pulled out over Rs50,000 crore

FIIs infuse Rs 24,800 cr in Indian stock mkts in Dec quarter

2010-01-04T15:58:00.000+05:30

New Delhi, Jan 3 : The Indian stock markets witnesseda net inflow of Rs 24,800 crore from overseas investors duringDecember quarter in the current financial year.

During the three month period (October-December), foreigninstitutional investors (FIIs) made a net buy of shares worthRs 24,807.1 crore, data complied from market regulatorSecurities and Exchange Board of India (SEBI) said.

In the quarter under review, December attracted thehighest inflow of Rs 10,233.1 crore(USD 2.1 billion), followedby October (Rs 9,077 crore) and November (5,497 crore).

Interestingly, during December quarter, the stock marketbenchmark Sensex grew by just 1.97 per cent. During 2009, thebarometer registered a rise of 81 per cent.

According to analysis of data available with the SEBI,during the same period (Oct-Dec quarter), FIIs infused a netRs 6,050 crore in debt instruments.

After their flight last year, FIIs flocked back to bet onthe India growth story and poured in a record Rs 83,424 crorein domestic equities during the year just passed.

Marketmen says FII inflow in India would continue thisyear as well.

"FIIs will continue to be positive in our markets and ingeneral Indian markets will fare well in 2010," PurplelineInvestment Advisors director P K Agarwal said.

The trend of strong FII inflows to the tune of Rs 31,000crore (about 6.3 billion dollars) witnessed during April-Junequarter gained further during the September quarter of currentfiscal and the period witnessed an infusion of hefty Rs 34,313crore.

FII investment of Rs 83,420 crore in 2009 is the highestever inflow in the country in rupee terms in a single year andcomes a year after they pulled out over Rs 50,000 crore.

The inflow in 2009 broke the previous high of Rs 71,486crore parked by foreign fund houses in domestic equities in2007.

Interestingly, the whopping inflow by FIIs into the localstock markets has alarmed the government and other authoritiesconcerned.

The inflow has also made industry chambers like Assochamdemanding a two-percentage point tax on FII funds, whereas theexporter body FIEO (Federation of Indian Export Organisations)has asked the government intervention to contain the flow.

Gujarat Pipavav Port plans raising Rs 500cr via IPO;files DRHP

2010-01-04T15:44:00.000+05:30

New Delhi, Jan 4 : Private port developer and operator Gujarat Pipavav Port Ltd (GPPL) plans to raise nearly Rs 500 crore through an initial public offer (IPO) and has filed draft papers with capital market regulator SEBI.

The company is also considering a pre-IPO placement withvarious investors, according to the Draft Red Herring Prospectus (DRHP) filed with the Securities and Exchange Board of India (SEBI).

When asked about the expected time for hitting the primary market, GPPL General Manager(Communications) Bhuvana Ramalingam told PTI, "we are hopeful to hit the market by the end of the current fiscal subject to regulatory approvals."

According to the DRHP, Rs 300 crore of the IPO proceeds will be utilised for prepayment of loans, Rs 88.52 crore for investment in capital expenditure and Rs 31.08 crore towardsinvestment in capital equipment among others.

The public issue of shares of Rs 10 each would be basedon 100 per cent book building process. The issue includes a reservation of shares worth Rs 10crore for the company's eligible employees, according to the DRHP.

GPPL is the developer and the operator of APM Terminals Pipavav, which has multi-cargo and multi-user operations. APM Terminals Pipavav is located in the Saurashtra region of Gujarat.

GPPL is principally engaged in providing port handlingand marine services for container, bulk and LPG cargo and is promoted by APM Terminals, which owns 57.9 per cent equity interest in the company.

APM Terminals is a part of Denmark-based AP Moller-MaerskGroup--one of the largest container terminal operators in theworld with a global network of 49 terminals in 32 countries.

The other shareholders of the company include New YorkLife International India Fund (Mauritius), IDFC InfrastructureFund, The Infrastructure Fund of India, IL&FS Trust CompanyLtd, Jacob Ballas Capital India Pvt Ltd, Unit Trust of India,Industrial Development Bank of India and India InfrastructureFund.

GPPL has the exclusive right to develop and operate APMTerminals Pipavav and related facilities until September 2028.

IDFC-SSKI and Kotak Mahindra Capital Company are the bookrunning lead managers to the issue, while IDBI Capital MarketServices Ltd is co-book running lead manager. The equity shares offered through the IPO are proposed tobe listed on the National Stock Exchange and the Bombay StockExchange.

Indian companies are expected to embark on a mega fundraising spree this year with plans to raise over Rs 50,000crore by way of public offers driven by sharp recovery in the stock market. About 50 companies have already filed DRHP with SEBI.

Last year, about Rs 20,000 crore was raised by the Indiancompanies through IPOs.

FII inflows hit record Rs 80,000 cr-mark in 2009

2010-01-03T13:59:00.003+05:30

New Delhi, Dec 24 : After their flight last year,foreign institutional investors flocked back to bet on theIndia growth story by pouring in a record over Rs 80,000 crorein domestic equities in 2009.

The FII investment of Rs 80,500 crore in 2009 is thehighest ever inflow in the country in rupee terms in a singleyear and comes a year after they pulled out over Rs 50,000crore. FII inflow so far this year has broken the previoushigh of Rs 71,486 crore parked by foreign fund houses in domestic equities in 2007.

Market analysts believe that the FII inflow in India maycontinue in the next year as well, if the liquidity conditionsremain strong.

"FIIs will continue to be positive on our markets and ingeneral Indian markets will fare well in 2010," PurplelineInvestment Advisors director P K Agarwal said.

Delhi-based SMC Capitals Ltd's Equity Head JagannadhamThunuguntla echoed the view, saying, "If liquidity conditionsremain strong next year, one can expect FII inflows to remainstrong into India even in 2010 as well."

During a year when the stock market barometer added over70 per cent to its valuation, foreign institutional investors(FIIs) made a net investment of whopping over Rs 80,500 crore(about 16.8 billion dollars) in the Indian share market.

The Bombay Stock Exchange's benchmark Sensex, comprising30 bluechip stocks, has gained more than 70 per cent so far in2009, one of the best performer among leading global bourses.

"However, if dollar-carrytrade-unwinding starts, then onecan expect rush of FII outflow from the country, resulting inpressure on Indian markets," he cautioned.

Significantly, last year the FIIs had pulled out a net Rs52,900 crore from the domestic bourses --a trend triggeredwith the collapse of global financial services icon LehmanBrothers in the middle of September 2008.

This selling trend continued till the first two months ofthe passing year.

However, with the sign of revival of economies, the trendturned positive during March and overseas investors startedbetting big on the domestic bourses.

"As the liquidity conditions started improving after thegovernments across the world started putting in the stimuluspackages, FIIs again tried to come back starting March 2009,"Jagannadham explains.

As they came back, even Indian markets staged big rally.Moreover, FIIs don't have many other choices but for comingand investing in the high growth economies of India and China,he added.

The trend of strong FII inflows to the tune of Rs 31,000crore (about 6.3 billion dollars) witnessed during April-Junequarter gained further during the September quarter this yearand the period witnessed an infusion of hefty Rs 34,313 crore.

So far in the December quarter, foreign fund houses havemade a net investment of about Rs 22,000 crore in the stockmarket, amid a period that witnessed the Dubai debt crisis.

Moreover, in the debt instruments, FIIs have made a netinvestment of about Rs 5,200 crore (1.1 billion dollars) sofar in 2009, according to the market regulator Sebi data.

Interestingly, the whopping inflow by FIIs into the localstock markets has alarmed the government and other authoritiesconcerned.

The inflow has also made industry chambers like Assochamdemanding a two-percentage point tax on FII funds, whereas theexporter body FIEO (Federation of Indian Export Organisations)demanded government intervention to contain the flow.

According to the FIEO, the FII inflow had been making therupee stronger against the American greenback, rendering theexports incompetent from price angle.

Last month, the government said record investments in theequities market by FIIs was not a matter of concern, but itwould act if it finds any distortions.

"It (FII inflows) is not a matter of concern. We have asystem of monitoring. Whenever we find that there are somedistortions, we have the arrangement to counter them.Therefore, it is not disturbing," Finance Minister PranabMukherjee had said.

However, describing the foreign capital inflows as thesuccess story of India's recovery, Reserve Bank DeputyGovernor Subir Gokarn recently said that the inflow should notbe viewed as a threat at this point of time.

"You could see them as a positive sign which is that theyreflect increasing global confidence in Indian recovery," thenewly appointed Gokarn had said.

During the year, the number of registered FIIs increasedby 114 to 1,708, while the tally of registered sub-accountsrose by 458 to 5,330, according to the Sebi data.

JSW Energy IPO over-subscribed 1.48 times on day 2

2009-12-10T20:53:00.000+05:30

Mumbai, Dec 8 : Power producer JSW Energy's Rs 2,700-crore public offer got over-subscribed 1.48 times today, thesecond day of issue, with most bids coming from qualifiedinstitutional buyers.

The initial public offer (IPO) received bids for 33.75crore equity shares against 22.75 crore shares on the offerfor public, the latest data with the National Stock Exchange(NSE) shows.

In qualified institutional buyers category the issue gotsubscribed 2.77 times of the reserved portion, whereas in noninstitutional investors category it got bids for 14.78 lakhstocks against 2.69 crore equities reserved for them, as perNSE data.

JSW Energy has entered into capital market with its IPOin the price band of Rs 100-115 and expects to garner up to Rs2,700 crore. The issue closes on December 9.

The IPO proceeds will be utilised for investment of aboutRs 2,140 crore in project SPVs and repayment of corporate debtof Rs 480 crore.

Last week, the company raised Rs 464.86 crore through theissue of shares to seven anchor investors, including RelianceCapital Trustee and Credit Suisse Singapore Ltd at a price ofRs 110 per piece.

J M Financial Services, SBI Cap Securities and ICICISecurities are acting as the book running lead managers forthe issue.

NPPA slaps Rs 20-cr fine on Cipla for overcharging

2009-12-10T20:52:00.000+05:30

New Delhi, Dec 7 : Pharma company Cipla Ltd todaysaid it has received notices, demanding about Rs 20.15 crore,from drug price regulator for allegedly over-pricing two drugs.

The company has received a notice from sectoral regulatorthe National Pharmaceutical Pricing Authority demanding anamount of about Rs 20.14 crore, comprising allegedlyovercharged amount of Rs 11.54 crore and interest thereon ofRs 8.59 crore, in respect of the drug Ciprofloxacin, Ciplasaid in a filing to the BSE.

"The period to which these amounts pertain to have notbeen specified in the demand notice," the company said in itsfiling to the Bombay Stock Exchange (BSE).

The drug maker also got a notice demanding an amount ofRs 11 lakh comprising interest up to April 2009 in respect ofthe drug Doxycycline, it further said.

Both the drugs are antibiotic, used in treatment ofbacterial infections.

According to Cipla, notices are contrary to rulings ofthe Supreme Court and the demand is not tenable. There were nodetails of the ruling in the Cipla statement.

"These demands are contrary to the orders of the SupremeCourt and the company has received legal advice that entireamounts demanded by the government are not tenable andsustainable," Cipla said.

In July also, Cipla had received notices from NPPA foralleged over-pricing of two drugs--Salbutamol and Norfloxacin.

In July, Cipla had got a demand notice of Rs 64.39 crorefor asthma drug Salbutamol and Rs 2.19 crore for Norfloxacin,used in treating infections.

NPPA, under the aegis of Chemicals and FertlizersMinistry, is responsible for keeping an eye on the pricemovement of dugs in the country.

Shares of Cipla today settled the day at Rs 351.5, down1.99 per cent from its previous close on the BSE

Three types of Kerala rice get GI protection

2009-12-10T20:51:00.000+05:30

New Delhi, Dec 7 : Three varieties of rice producedin Kerala are registered as Geographical Indications (GI), theParliament was informed today.

Three kinds of rice -- Pokkali, Navara and PalakkadanMatta -- produced in Kerala have been registered as GIs underthe Geographical Indications of Goods (Registration andProtection) Act, 1999, Minister of State for Commerce andIndustry Jyotiraditya Scindia said in the Lok Sabha.

The GI tag is used on goods that have a specificgeographical origin and possess qualities, reputation andcharacteristics that are essentially attributable to thatregion alone.

Once granted, the GI status legally prohibits others tosell the product under the same name.

Replying to a question of a Member of Parliament, Scindiasaid the Union government has not received any proposal fromthe Madhya Pradesh government for registration of paddy of aspecial variety under the GI.

Answering a separate question in the lower house, Scindiasaid, the country's Patent Offices received 458 applicationsfor pre-grant opposition--for other parties to contest theexclusivity claims of the product--during January 2005 toMarch 2009.

JSW Energy fixes IPO price band at Rs 100-115 a share

2009-12-10T20:50:00.001+05:30

New Delhi, Dec 3 : Power producer JSW Energy has fixedthe price-band of its proposed initial public offer in therange of Rs 100-115 per equity share.

The company, led by Sajjan Jindal, is offering a discountof Rs 5 to retail investors in the issue price that will bedetermined after the completion of book building process, JSWEnergy said in a public announcement today.

JSW Energy Ltd, a part of the JSW Group, is entering thecapital market with its initial public offer (IPO) on December 7 till December 9.

The company expects to raise funds up to Rs 2,700 crorethrough its public offer.

The energy firm has an operational capacity of 860 MWwith additional 2,790 MW capacity under construction andimplementation stage.

JM Financial Consultants, Kotak Mahindra Capital Company,ICICI Securities, IDFC-SSKI Ltd, JP Morgan India, SBI Capital,Morgan Stanley India and IDBI Capital are book running leadmanager of the public offer

Mauritius-based AfrAsia Bank gets FII licence from SEBI

2009-12-10T20:49:00.001+05:30

New Delhi, Dec 2 : Mauritius-based AfrAsia Bank todaysaid it has received the Foreign Institutional Investor (FII)licence from market regulator Securities & Exchange Board ofIndia (SEBI).

"This will enable the bank to provide a complete bouquetof service to its global business clients and facilitate theirinvestments into Indian stocks and debt market using the sub-account route of FII," AfrAsia Bank said in a statement.

An FII is an institution established or incorporatedoutside India, which proposes to make investments insecurities in India and regulated under the strict provisionsof the SEBI.

Sub-account on the other hand means "any person residentoutside India, on whose behalf investments are proposed to bemade in India by a FII and who is registered as a sub-accountunder these regulations."

"This is an important step in our strategy to tap theIndian market", AfrAsia Bank CEO James Benoit said.

AfrAsia Bank has also entered into a strategic tie upwith leading ICICI Bank for providing custodial services inIndia to its clients, the statement said.

FIIs pump Rs 5,400 cr into stock mkts in Nov

2009-12-10T20:45:00.000+05:30

New Delhi, Dec 1 : The equity markets witnessed anet inflow of Rs 5,400 core from overseas investors duringNovember, taking their total investment in the country so farthis year to over Rs 73,100 crore, the highest ever inflow ina single year.

In November, foreign institutional investors (FIIs)bought shares worth Rs 51,063.10 crore, and sold equitiesworth Rs 45,565.90 crore, resulting in a net investment of Rs 5,497 crore, according to the data available with the marketregulator Securities and Exchange Board (SEBI).

The record inflow by FIIs into the local stock marketshas alarmed the government and other authorities concerned. It has also made industry chambers like Assocham demanding a two-percentage point tax on FII funds, while exporters body FIEO demanded government intervention to contain the flow asit had been making the rupee stronger against the Americangreenback, rendering exports incompetent from price angle.

After turning negative following the collapse of the globalfinancial services icon Lehman Brothers in the middle ofSeptember last year, FIIs inflow into the domestic stockmarkets have begun to rise sharply.

Last month, Finance Minster Pranab Mukherjee had said thatinvestment into the equity markets by foreign investors wasnot a matter of concern, but the government would act if itfinds any distortions.

Describing the foreign capital inflows as the successstory of India's recovery, Reserve Bank Deputy Governor SubirGokarn on Monday said that the inflow should not be viewed asa threat at this point of time.

"You could see them as a positive sign which is that theyreflect increasing global confidence in Indian recovery," the newly appointed Gokarn had said.

The trend of strong FII inflows to the tune of Rs 31,000crore witnessed during the June quarter gained furthermomentum during the July-September period, which attracted a net Rs Rs 34,313 crore.

Last year, FIIs were net sellers of the domestic stocksworth Rs 52,900 crore. The selling trend of FIIs continuedtill the first two months of the current year. However, by theend of March they started betting big on the domestic bourses.

So far this year, the Bombay Stock Exchange's benchmarkindex Sensex--composed of 30 blue-chip stocks--has risen over 70 per cent.

Gammon Infra hopes to complete stake buy in ICTPL by March '10

2009-12-10T20:42:00.000+05:30

New Delhi, Dec 9 : Gammon Infrastructure today saidit expects to complete the acquisition of 24 per cent stake inits special purpose vehicle Indira Container Terminal frompartner, Spain-based Dragados by March next year.

"We hope to complete the purchase of 24 per cent stake inIndira Container Terminal Pvt Ltd (ICTPL) by March, 2010,"Gammon Infrastructure Projects Manging Director Parvez Umrigar told PTI.

ICTPL, a joint venture between Dragados and the GammonGroup, is developing an offshore container terminal at Mumbaiport.

The transaction is subject to regulatory approvals asmay be required, Umrigar said.

Dragados is selling its stake in the JV under its globalrestructuring plan, he added.

Gammon Infra yesterday announced that it had enteredinto an agreement with Dragados Servicios Portuarios yLogisticos SL to acquire the firm's 50 per cent stake in ICTPLin two phases.

"The agreement envisages buying of 24 per cent stake in ICTPL now and a further 26 per cent equity stake after threeyears post the commencement of commercial operations of the offshore container terminal project being implemented byICTPL," the company said.

The company did not disclose financial details of the transaction.

After Nifty, NSE tweets on Junior Nifty, currency derivatives

2009-12-10T20:38:00.001+05:30

New Delhi, Dec 10 : Encouraged by the growing fanfollowing for its tweets on the micro-blogging site Twitter,the National Stock Exchange has now started twittering forJunior Nifty index as well as for the currency derivatives andinterest rate futures.

Till recently, the 'twitterati club' of NSE was limitedto posting live quotes only of its benchmark index Nifty.

NSE joined this club last month, becoming the firstbourse in the country to have a presence on Twitter--which hasbecome a favoured short-messaging social networking websiteand can be accessed through mobile phone and internet.

Outside India, exchanges and indices having establishedtheir presence on Twitter including Nasdaq of the US andLondon Stock Exchange's FTSE.

On Twitter, NSE posts quotes of its indices-including thecurrent level as also the highs and lows, every 5 minutesduring the market hours.

In short span, Nifty has registered over 3,500 followersfor its 'tweet' messages, which are capped at a maximum of 140characters per post. So far, about 1,292 tweets have beenposted on the exchange's page on the Twitter.

The number of followers, till today, for the NSE's JuniorNifty, currency derivatives and interest rate futures onTwitter is 34, 54 and 18 respectively.

With Twitter, investors can reach the NSE with theirmobiles and need not to log onto internet through computers.

Twitter is a free social networking and micro-bloggingservice that enables a user to send and read messages known astweets. Tweets are text-based posts of up to 140 characters.

A user can send and receive tweets through the Twitterwebsite or short message service (SMS) on mobile phone.

Jindal Power plans IPO to raise Rs 10,000 cr

2009-12-10T20:37:00.000+05:30

New Delhi, Dec 10 : Power producer Jindal Power Ltd(JPL) is planning to raise about Rs 10,000 crore through aninitial public offering.

Jindal Power's board of directors, which met today, hasdecided to go for initial public offer (IPO) for raising up toRs 10,000 crore, Jindal Steel & Power Ltd said in a filing tothe National Stock Exchange (NSE) today.

Jindal Power is a subsidiary of Jindal Steel & Power Ltd (JSPL).

"Jindal Power will be holding an extra ordinary generalmeeting of the members of the company for obtaining theirapproval for the said IPO," it added.

The company did not disclose details of the proposed IPO.

Godrej Properties IPO subscribed 1.28 times on second day

2009-12-10T20:36:00.001+05:30

Mumbai, Dec 10 : The initial public offer of GodrejProperties Ltd (GPL) got subscribed 1.28 times on the secondday of issue today, with most of the bids coming fromqualified institutional investors.

In an almost flat market, the IPO of Mumbai-based realtorreceived bids for over 98.95 lakh shares against 77.32 lakhequities on offer for public, latest data with the National Stock Exchange (NSE) showed.

In the qualified institutional buyers portion, the IPOgot subscribed 2.42 times, with bids for over 96 lakh sharesagainst 39.60 lakh equities reserved for them.

Godrej Properties has entered the capital market with atotal issue size of 94.29 lakh equity shares, which includesanchor investor portion of 16.97 lakh shares, in the pricerange of Rs 490-530 per piece.

Godrej Properties expects to garner up to Rs 499.77 croreat the upper end of the IPO price band.

The IPO, which opened on December 9, closes tomorrow.

The IPO proceeds would be utilised for acquiring land,construction of projects and repayment of loans.

The company currently focuses on residential, commercialand township developments.

The secondary market barometer Sensex today finished theday at 17,189.31, a gain of 64.09 points or 0.37 per cent overits previous close.

DB Corp ropes in 9 anchor investors; IPO opens tomorrow

2009-12-10T20:34:00.000+05:30

New Delhi, Dec 10 : Media house DB Corp, whichpublishes Hindi daily Dainik Bhaskar, today said it has got commitment of Rs 69.36 crore from nine anchor investors underits initial public offering that opens tomorrow.

The company has finalised allocation of 32.71 lakh sharesto anchor investors at a price of Rs 212 per share, upper bandof the IPO, DB Corp Ltd informed stock exchanges.

Nine anchor investors include — FID Funds (Mauritius) Ltd,FIL Trustee Company, Nomura Funds Ireland--India Equity Funds,ICICI Prudential Life Insurance Company, IDFC Classic EquityFund, Government of Singapore, Reliance Capital Trustee, IndiaCapital Fund and BNP Paribas Arbitrage.

The firm, which publishes newspapers in three languages —Hindi, Gujarati and English — is entering the capital marketwith the issue size of 1.81 crore equity shares in the priceband of Rs 185-212 a piece.

At the upper band of price range, the company expects togarner about Rs 385.31 crore. The IPO closes on December 15.

The issue will constitute about 10 per cent of the fullydiluted post-issue capital of the company.

The proceeds would be utilised for expanding the company'spresence in new markets and repayment of debts.

DB Corp, which has presence in 11 states, plans to expandinto new markets in the next two years and would focus on small cities and towns.

NSE joins Twitter bandwagon

2009-12-06T11:01:00.000+05:30

New Delhi, Nov 24 : The National Stock Exchange (NSE) has joined the fast-growing 'Twitterati' club, and to startwith the bourse has begun posting live quotes of its benchmark index Nifty on the micro-blogging website Twitter.

With this, NSE has become the first Indian bourse -- and so far the only one -- to have a presence on Twitter, which has become a favoured short-messaging social networking website and can be accessed through mobile phone and internet.

Outside India, exchanges and indices having established their presence on Twitter include Nasdaq of the US and LondonStock Exchange's FTSE.

NSE currently posts quotes of its Nifty index, including the current level as also the highs and lows, every 10 minutesduring the market hours and plans to expand its presence to other information for investors over the time.

In just about a week of its launch, the NSE has already registered about 1,600 followers for its 'tweet' messages, which are capped at a maximum of 140 characters per post. So far, about 500 tweets have been posted on the exchange's page on the Twitter.

An exchange official said that the NSE has distinguished itself from other bourses with its presence on Twitter.

The exchange aims to add some more indices and tools on the social networking site on coming period.

"To start with, it's a live ticker of Nifty only, but it will change over the time. Through Twitter, an investor can be in touch with the market," the official said.

With Twitter, the investors can reach the NSE with their mobiles only and need not log onto internet through computers.

Twitter is a free social networking and micro-blogging service that enables a user to send and read messages known as tweets. Tweets are text-based posts of up to 140 characters.

A user can send and receive tweets through the Twitter website or short message service (SMS) on mobile phone.

NSE's rival Bombay Stock Exchange (BSE), the oldest bourse in Asia, is yet to join Twitter, but recently launched a redesigned version of its website.

SMC Group to hire 3,000 people in next 3yrs

2009-12-06T10:58:00.000+05:30

New Delhi, Nov 22 : Domestic brokerage firm SMC Group today said it plans to hire 3,000 professionals and open 3,500 offices in the next three years to expand network in the country.

The company would invest Rs 50 crore in expansion plans.

"We are in process to expand our network by adding 3,500 offices to reach across the country over the next three years. We need a strong team of professionals and for this we will be hiring about 3,000 people during the period," SMC Group CMD Subhash Chand Aggarwal told PTI.

At present, the Delhi-based financial solutions provider has a network of over 1,500 offices spread over 375 towns in the country. The current workforce of the group is about 7,000 serving over five lakh customers.

Aggarwal said the expansion plan would cost over Rs 50 crore and the firm has enough money to finance the growth.

"In recent time, we raised money through different routes and in coming period also we will raise some funds for these purposes," he said.

SMC's products and services include institutional, retail brokerage of equity, commodity, currency, derivatives, IPOs and mutual funds distribution and portfolio management amongothers.

SBICAP invites bid for sale of investor stake in NSE, MCX

2009-12-06T10:56:00.001+05:30

New Delhi, Nov 23 : Brokerage firm SBICAP Securities today invited bids for the sale of an investor's stake in the National Stock Exchange and the Multi Commodity Exchange.

The Investor is selling one per cent stake in NSE and nearly six per cent in MCX. The last date for the bid is November 30.

In a public announcement, SBICAP Securities invited bids for 4.50 lakh equity shares representing one per cent of the total equity capital of NSE and 46.20 lakh shares representing 5.91 per cent of the total equity share capital of MCX.

"A client of SBICAP Securities Ltd (SSL) intends to sell the above shares. Applications are invited from interested bidders for purchase of the said shares held by our client", it said.

SSL, a 100 per cent subsidiary of SBI Capital Markets, did not reveal the name of the client. State Bank of India holds 86.16 per cent shares in SSL. The remaining 13.84 per cent is held by the Asian Development Bank.

NSE has been promoted by leading financial institutions, banks, insurance companies and other financial intermediaries. State Bank of India, SBI Capital Markets Ltd and ICICI Bankare among the promoters of the exchange.

When contacted an NSE official said the exchange had no knowledge about the client. There are many promoters, who hold over one per cent stake in the exchange.

MCX officials could not be reached for comment.

There are rumours in the market that Fidelity may be diluting its stake in the country's top commodity exchange.

LPO industry to suffer from eco downturn for short term: Report

2009-12-06T10:54:00.000+05:30

New Delhi, Nov 29 : Facing the heat of recessionary pressure, India's legal process outsourcing (LPO) industry is likely to see a decline in revenue and is expected to reachUSD 440 million dollars (around Rs 2,000 crore) by 2010 end, a report said.

According to a report by business intelligence & research firm ValueNotes, global economic downturn has slowed down LPO industry and is changing the service provider's landscape.

"Revenues from the offshore legal services industry were USD 320 million for 2008 and are expected to reach USD 440 million by 2010 end," it said.

The offshore legal services industry grew at a rapid pace until 2007. However, the slow down in buyer market impacted the offshore industry resulting in falling growth rate.

The industry that was growing at a compound annual growth rate (CAGR) of over 40 per cent over the last four years until 2007, dropped to 28 per cent in 2007-08, and further reduced to 16 per cent for 2008-09.

The fall is pri marily due to recessionary cost pressures impacting the global legal services market and the subsequent affect on the number and value of offshoring contracts, the report said.

However, industry experts are hopeful about the future of Indian LPO sector.

According to Neeraja Kandala, a legal services analyst, "while revenue estimates till 2010 are not very encouraging, we believe the slowdown is short term. Post 2010, we expect the industry to pick up pace as the global economy recovers."

Post 2010, we will see consolidation in the industry with larger players acquiring capacity and capability, as well as global law firms looking for control over India capacity, the report said.

Echoing similar views, Mumbai-based LPO company Pangea3 Co-CEO Sanjay Kamlani said, "we have been seeing growth of more than 100 per cent every 6 months and anticipate a continuation of this trend."

The ambit of LPO industry includes work outsourced is a mix of legal services as well as paralegal work.

"The work includes day to day contract drafting, M&A due diligence, electronic discovery that includes IP litigation, legal research and patent drafting," Kamlani said.

The uncertain economic conditions resulted in many weaker players fading away from the competitive landscape. Over the last two years, more than 20 per cent of the total number of service providers in industry discontinued their operations, the report said.

"While there are various reasons for these shut downs, the economic slowdown added to the troubles of some of the service providers," analyst & co-author of the report, titled"Legal Process Outsourcing: Crisis Creates New Opportunities for LPOs", Suheil Patel said.

BSE launches new access platform Fastrade

2009-12-06T10:53:00.000+05:30

Mumbai, Nov 24 : The Bombay Stock Exchange today launched its new market access platform--Fastrade.

Fastrade is a terminal and Internet-based market access solution developed by Marketplace Technologies, a group firm of the BSE, the exchange said in a circular.

However, the current market access solution--BSE On-line Trading (BOLT)--provided by the exchange will continue to function on as is basis, the circular added.

"Fastrade is being offered in addition to the BOLT. The BOLT will continue to be supported by the BSE," the bourse said.

For trading on the BSE cash and derivatives segment, the new market access platform will be provided free of cost to all members of the exchange, it added.

CDSL account holder's can soon trade on NSE's MF platform

2009-12-06T10:51:00.000+05:30

New Delhi, Dec 2 : The National Stock Exchange (NSE) will soon enter into an agreement with depository services provider CDSL, allowing CDSL account holders to trade on the exchange's newly launched mutual fund platform.

"NSE is likely to sign a pact with the Central Depository Services Ltd (CDSL) this week for the just introduced mutual fund service system (MFSS) by the exchange," a market source close to the development told PTI.

Currently, depository settlement is available only for the account holders in National Securities Depository Ltd (NSDL).

On November 30, NSE made its mutual fund trading platform operational beginning with UTI Mutual Fund.

Many other fund houses, including Reliance MF, Tata MF, Birla MF, ICICI Prudential MF, Fidelity, HDFC Mutual Fund, SBI MF, IDFC Mutual Fund, Religare MF and Franklin Templeton are in "advance stage" of talks with NSE for listing their schemes on the exchange platform, the source said.

"Soon these fund houses are likely to finalise their joining on the exchange to make their products available on the new trading platform," the source added.

On the agreement with CDSL, sources said that "NSE's move would enable lakhs of depository account holders of CDSL to be able for trade in mutual funds on the India's largest bourse."

The assets of the mutual fund industry has breached Rs 8 lakh crore level at the end of November.

The National Stock Exchange's new platform enables investors to buy and sell MF schemes through over 1.5 lakh NSE trading terminals in the same way as equity shares are traded through brokers.

After the launch of the new mutual funds trading platform by NSE, Asia's oldest bourse the Bombay Stock Exchange (BSE) also announced its plans to start trading in MFs and is likely to start it from December 4.

It is understood that BSE has tied-up with Tata Mutual Fund for the venture and is in talks with 4-5 other leading fund houses to participate in the platform, a source close tothe development had said.

"BSE is likely to start this platform on Friday and is talking to 4-5 funds to participate in the venture," the source said.

Market regulator SEBI, recently gave its approval for facilitating transactions in MF schemes through stock exchange infrastructure.

"The infrastructure that already exists for the secondary market transactions through the stock exchanges with its reach to over 1,500 towns and cities, through over two lakh stock exchange terminals can be used for facilitating transactions in mutual fund schemes," SEBI had said.

According to SEBI, the stock exchange mechanism would also extend the present convenience available to secondary market investors to mutual fund investors.

Market participants are enthusiastic about MF platform and a number of fund houses are expected to join this facility in the coming days. At present, 37 mutual fund houses areoperating in the country.

NSE to launch MF platform tomorrow, fund houses keen to join

2009-12-06T10:50:00.000+05:30

New Delhi, Nov 29 : The country's top mutual fund houses, including UTI Mutual Fund, are keen to join National Stock Exchange's new mutual fund service system (MFSS), which will be launched tomorrow.

According to market sources, UTI Mutual Fund will be the first to leverage the NSE's mutual fund platform, which would enable exchange's members to use its existing infrastructure for transaction in MF schemes.

Initially, UTI will list its equity and debt s chemes that are in about 30 numbers, people familiar with the matter said.
Along with UTI, "all top mutual fund houses are keen to join this platform," he added.

UTI spokesperson could not be reached for comment on the issue.

At the end of October, UTI Mutual Fund had an average asset under management (AUM) of Rs 76,847 crore.

NSE's new MFSS will commence from November 30 and it will substitute the existing MF scheme, introduced in 2000.

Market regulator SEBI, recently gave its approval for facilitating transactions in MF schemes through stock exchange infrastructure.

"The infrastructure that already exists for th e secondarymarket transactions through the stock exchanges with its reach to over 1,500 towns and cities, through over two lakh stock exchange terminals can be used for facilitating transactions in mutual fund schemes," SEBI had said.

According to SEBI, the stock exchange mechanism would also extend the present convenience available to secondary market investors to mutual fund investors.

Market participants are enthusiastic about new MF platform and a number of fund houses are expected to join this facility in the coming days. At present, 36 mutual fund houses are operating in the country.

NSE's mutual fund platform will be available on all business days between 9 am to 3 pm.

Monster to launch rural jobsite soon

2009-12-06T10:48:00.000+05:30

Leading job portal Monster India today said it will launch its rural jobsite rozgarduniya.com, which is in a pilot phase now, by early next year across nine states.

Rozgarduniya.com was launched by Monster India in partnership with ITC e-Choupal in the second half of 2009.

"We are hopeful of completing the pilot phase by early 2010 and activate the entire e-Choupal network across nine states covering 40,000 villages," Monster.com Managing Director for India (South Asia and Middle East) Sanjay Modi told PTI.

At present, the pilot phase is running across two locations--Hathras and Pilibhit in western UP covering 610 e-Choupals and 3,095 villages. The objective of the pilot phase is to check the seeker and employer user-interface and respective functionalities, Modi said.

The e-Choupal, which is a rural digital infrastructure set up by the tobaccos-to-hospitality major ITC's agri business division, is one of the largest exporters of agricultural commodities from the country.

Modi said over the past two months, about 140 people were recruited from Hathras and Pilibhit centers by corporates.

On the revenue model, he said in the current model job seeking services are free. "The prospective employers would be paying us on a subscription-based model," he added.

Rozgarduniya.com is available in English and Hindi only, Modi said, adding he plans to make it available in other leading languages too. Monster India has also tied up with Dish TV to offer jobs on television--first of its kind in the country.

Reliance MF to join NSE trading platform; Fidelity offers NFO

2009-12-06T10:46:00.001+05:30

Mumbai, Dec 3 : The country's top private fund house Reliance Mutual Fund will join the National Stock Exchange's newly launched mutual fund service system.

"The various schemes of Reliance Capital Asset Management Ltd will be permitted on the MFSS (mutual fund service system) with effect from December 4," NSE said in a circular today.

Reliance MF schemes are managed by Reliance Capital Asset Management Ltd, a wholly-owned subsidiary of Reliance Capital.

Fidelity Mutual Fund is also joining NSE's MF platform with effect from December 4.

Meanwhile, in a separate statement Fidelity today said it would offer the new fund offer (NFO) of its Fidelity India Value Fund (FIVF) through the MF trading platform of both theNSE and the BSE.

"Investors can invest in the FIVF NFO by contacting their stock broker and placing their order. On allotment, the units of the fund will be credited to their demat accounts,"Fidelity said.

"With this, Fidelity has become the first mutual fund to offer an NFO through the stock exchanges," it claimed.

On November 30, NSE made its mutual fund trading platform operational beginning with UTI Mutual Fund, the fourth largest fund house in the country.

After the launch of the new mutual funds trading platform by NSE, Asia's oldest bourse the Bombay Stock Exchange (BSE) also announced its plans to start trading in MFs and is likely to start it from December 4.

The Market regulator SEBI, recently gave its approval for facilitating transactions in mutual fund schemes through stock exchanges.

Many fund houses, including Tata MF, HDFC Mutual Fund, ICICI Prudential MF, SBI MF, IDFC Mutual Fund, Religare MF and Franklin Templeton are in "advance talks" with NSE for listing their schemes on the exchange platform, a market source said.

At present, over 35 mutual fund houses are operating in the country.

At the end of November, Reliance MF's average asset under management (AUM) stood at Rs 1,22,252.43 crore. Over the month Reliance MF added Rs 5,471 crore to its assets.

Birla Sun Life joins NSE's new MF trading platform

2009-12-06T10:45:00.000+05:30

New Delhi, Dec 2 : After UTI Mutual Fund, Birla Sun Life becomes the second fund house in the country to join the National Stock Exchange's newly launched mutual fund service system (MFSS).

"The various schemes of Birla Sun Life Asset Management Company Ltd will be permitted on the MFSS with effect from December 3," the NSE said in a circular today.

On November 30, NSE made its mutual fund trading platform operational beginning with UTI Mutual Fund, the fourth largest fund house in the country.

Many other fund houses, including Reliance MF, Tata MF, ICICI Prudential MF, HDFC Mutual Fund, SBI MF, IDFC Mutual Fund, Religare MF, Fidelity and Franklin Templeton are in"advance talks" with the National Stock Exchange for listing their schemes on the exchange platform, a source close to the development told PTI.

At the end of last month, UTI Mutual Fund's average asset under management (AUM) was at Rs 79,895.22 crore, while Birla Sun Life Mutual Fund's asset was about Rs 69,631.94.10 crore.

Market participants are enthusiastic about MF platform and a number of fund houses are expected to join this facility in the coming days. At present, over 35 mutual fund houses are operating in the country.

Market regulator SEBI, recently gave its approval for facilitating transactions in MF schemes through stock exchanges.

NSE's new MF service system from Nov 30

2009-11-25T20:38:00.001+05:30

Mumbai, Nov 24 : The National Stock Exchange today said it is proposing to introduce a new mutual fund service system (MFSS), which will enable its members to use the existing infrastructure for transaction in MF schemes.

The NSE proposes to introduce new MFSS for facilitating transaction in MF schemes through the stock exchange infrastructure, the NSE said in a circular, adding the new MFSS will commence from November 30.

Market regulator SEBI, in a recent circular, gave its approval for facilitating transactions in MF schemes through the stock exchange infrastructure.

"The infrastructure that already exists for the secondary market transactions through the stock exchanges with its reach to over 1,500 towns and cities, through over two lakh stock exchange terminals can be used for facilitating transactions in mutual fund schemes," SEBI had said.

The stock exchange mechanism would also extend the present convenience available to secondary market investors to mutual fund investors, the market regulator had said.

The existing MF scheme, introduced in December 2000, will be substituted with the new MFSS, the exchange added.

Indian stocks attract Rs 34,300-cr foreign fund in Q2

2009-11-12T22:23:00.001+05:30

New Delhi, Oct 13 : Betting big on Indian stocks,one of the best among the emerging markets, foreign fundhouses have invested a hefty Rs 34,300 crore during the secondquarter of this fiscal.

During the July-September period, foreign institutionalinvestors (FIIs) made a net investment of Rs 34,313 crore inequities, as per the data available with the market regulatorthe Securities and Exchange Board of India (SEBI).

With Indian bluechips giving nearly 17 per cent returnsduring the period, FIIs are bullish on good returns fromemerging markets, like India.

Analysts said nearly half of FII inflows have come viaqualified institutional placements (QIP) and IPOs combined.

"This trend of inflows would broadly sustain over thelong term considering the strong dynamics of the Indianeconomy," domestic brokerage firm Angel Broking said in aresearch note.

The trend of strong FII inflows to the tune of Rs 31,000 crore or USD 6.3 billion witnessed during Q1 FY2010 gainedfurther strength during the September quarter this fiscal.

With this, total cumulative FII inflows in 2009 crossedthe USD 10 billion mark during September 2009 and stood atabout Rs 60,000 crore (USD 12.4 billion) at the end of the month.

Indian markets gave 19 per cent return to those whoinvested during the July-September period.

According to an analysis of MSCI Barra indices-- thatmeasures returns from various stock markets across the world--bourses in Brazil and Russia gave over 26 per cent return toinvestors while those in China gave only four per cent.

In the latest quarter, September saw the highest monthly inflow of Rs 18,300 crore. While fund flow in August was Rs4,900 crore, in July it was Rs 11,000 crore.

Interestingly, during the three month period last year, FIIs pulled out a net Rs 11,326 crore from the country's stockmarkets, which saw Sensex giving a negative return of five percent. The global financial crisis turned worse with thecollapse of US financial services major Lehman Brothers lastSeptember.

Foreign funds pulled out money from Indian marketsto meet obligations in their home countries.

Last year, FIIs were net sellers of Indian stocks worthRs 52,900 crore, as per the SEBI data. This trend continued till February 2009. However, by theend of March they started betting on Indian markets.

FIIs invested about USD 17.7 billion (about Rs 70,000crore) in 2007, the highest ever so far.

BSE to slash transaction charges in cash equity segment

2009-11-12T22:21:00.001+05:30

Mumbai, Oct 5 : The Bombay Stock Exchange today saidit will reduce transaction charges in cash equity segment witheffect from October 7, a move that follows a similar slashingin trading fee by its rival the National Stock Exchange.

The new structure will have two components--one forpassive orders and other for active orders, BSE said in astatement.

For passive orders, transaction charges will be reducedfrom Rs 3.50 per Rs 1,00,000 to Rs 2.25 per Rs 1,00,000 ofgross turnover, whereas for active orders it will be reducedfrom Rs 3.50 per Rs 1,00,000 to Rs 3.25 per Rs 1,00,000 ofgross turnover, it said.

According to the exchange, these transaction charges willinclude current contributions of Rs 0.01 each on Rs 1,00,000of gross turnover to the trade guarantee fund and investorprotection fund.

"With the new pricing framework coming in place fromtomorrow, we are expecting to have more order flow from Indianand international investors," Bombay Stock Exchange (BSE) MD and CEO Madhu Kannan said.

"This also shows our commitment to the members that wewill continue to strive to provide the most efficient tradingplatform while bringing down the cost of transactionsconsiderably," Kannan added.

On September 7, National Stock Exchange had lowered thetransaction charges by about 10 per cent in cash andderivatives segments.

From October 1, the slab for transaction charges in cashsegment on the NSE have been to Rs 3 to Rs 3.25 per Rs 1 lakhfrom Rs 3.5 per per Rs 1 lakh charged earlier.

Tara Health Foods files draft paper with SEBI for share sale

2009-11-12T22:19:00.000+05:30

New Delhi : Edible oil and poultry productsmaker Tara Health Foods has sought approval from the capitalmarket regulator, Securities and Exchange Board of India, foran initial public offer of one crore shares.

According to the draft red herring prospectus (DRHP)filed with the SEBI, the Ludhiana-based company is consideringa pre-IPO placement of 10 lakh equity shares with investors.

The company plans to hit the primary market with onecrore equity shares with a face value of Rs 10 each.

Tara Health Foods would utilise the issue proceeds topart finance its expansion plans and to meeting its workingcapital requirements.

It may also consider placement of share to anchorinvestors, the draft paper said.

The company is setting up a new edible oil refining plantapart from expansion of its cattle feed plant.

The issue is being made through 100 per cent bookbuilding process. The shares offered through the IPO would belisted on the Bombay Stock Exchange and the National StockExchange, it added.

Atherstone Capital Markets is the lead book manger of the issue.

GI status sought for Bhagalpur silk fabrics and sarees

2009-11-12T22:18:00.000+05:30

New Delhi, Oct : A group of organisations havesought Geographical Indication (GI) status for silk fabricsand sarees produced in Bhagalpur division of Bihar.

The Bhagalpur Regional Handloom Weavers Cooperative Unionand six other organisations have filed an application beforethe Chennai-based Geographical Indication Registry, the competent authority under Government of India, for a GI tag for 'Bhagalpur Silk Fabrics and Sarees'.

The Geographical Indication is a sign used on goods thathave a specific geographical origin and possess qualities,reputation or characteristics that are essentiallyattributable to that region. Once granted, the GI status would legally prohibit othersto sell sarees and fabrics made at places other than Bhagalpurunder the same brand.

The GI tag for fabrics and sarees can become an effectivetool for economic empowerment of the weaver community.

"The grant of GI tag to Bhagalpur Silk Fabrics and Sareeswould certainly help the local weavers from losing their sharein the revenue generated through the sale of these products,"Dhananjay Kumar, who works as Cluster Development Executive ata local organisation in Bhagalpur, told PTI over phone.

Recently, a similar status was granted to famous Banarasbrocades and sarees. In the past, GI tag has been awarded to anumber of products or goods, including Darjeeling Tea, GoaFeni and Madhubani Paintings.

At present the application for GI tag for Bhagalpur silkfabrics and sarees is in pre-examination stage. A meeting ofconsultative group of the GI registry is expected next month,which would discuss the application, Kumar said

The application for GI has been filed under class 24 and25 of the Geographical Indications of Goods (Registration andProtection) Act, 1999. Class 24 of the Act deals with textilesand textile goods, bed and table covers while class 25 is forclothing, footwear and headgear.

Bhagalpur, a divisional town in Bihar, is situated on thebank of river Ganga. Thousands of handloom weavers of the areaare dependent of the business of silk and related products.

Bhagalpur is well known for its sericulture, manufactureof yarn and weaving them into products. The silk produced hereis of a distinct and special type. The local silk is known as'Tussah' or 'Tusser' silk.

NMDC flavour of PSU stocks; soars 20 per cent

2009-11-12T22:16:00.000+05:30

Mumbai, Nov 10 : India's largest iron ore producerNMDC today rose sharply by about 20 per cent on BSE-- the maximum permissible surge in a single day for the stock-- amidgains in all other PSU stocks.

Brokers said NMDC attracted hectic buying support eventhough broader market sentiment was dampening.

NMDC shares opened higher by 2.33 per cent and soonpicked up momentum. It almost hit the upper trading limit of20 per cent during intra-day.

Finally, it ended at Rs 433.70, higher by 19.99 per centfrom its previous close.

Brokers said reports that a decision on disinvestment inthe company was likely to be taken by the Cabinet by mid-December sparked hectic buying into the stock.

Steel Secretary Atul Chaturvedi yesterday said the note ondivestment in NMDC and SAIL is likely to reach the Cabinet bymid-December.

PSU stocks have suddenly turned investors' favouriteafter the government last Thursday said public holding in allprofitable listed PSUs have to be minimum 10 per cent.

Since then PSU index has been rising and it today closedhigher by close to 2 per cent.

At the end of September quarter, the government held a98.38 per cent stake in NMDC.

Meanwhile, the benchmark Sensex today closed down by58.16 points at 16440.56

PSU investors richer by Rs 26k cr in a single day

2009-11-12T22:15:00.001+05:30

Mumbai, Nov 5 : The market capitalisation of publicsector companies jumped by a near Rs 26,000 crore today bouyedby positive sentiment after the government's decision todivest 10 per cent stake in all publicly traded firms.

The total market capitalisation of the 48 listed PSUs onthe Bombay Stock Exchange's PSU index soared by Rs 25,956crore to Rs 15.76 lakh crore in a single day.

On Wednesday, the market valuation of these firms stoodat Rs 15.51 lakh crore.

Shares of public sector firms were in demand on counters.Out of 48 companies in the BSE's PSU Index, 41 ended in thegreen, while 7 firms bucked the trend and closed in red.

Rashtriya Chemicals & Fertilizers led the gain among PSUstocks and ended the trade at Rs 65.90, up 12.17 per cent fromits previous close.

According to market analysts, the rise in PSU investorwealth has been due to the upbeat investor sentiment ongovernment's decision to divest 10 per cent stake in thelisted PSU entities.

Hindustan Copper advanced 9.98 per cent to close at Rs233.05 and oil major Gail India gained 6.89 per cent to closeat Rs 367.90 on the BSE.

The BSE's PSU Index gained 139.31 points or 1.67 per centto close at 8,463.77 points today.

Kotak Mahindra Bank wins cybersquatting case at WIPO

2009-11-12T22:11:00.000+05:30

New Delhi, Oct 11 : Kotak Mahindra Bank has won acybersquatting case at the World Intellectual PropertyOrganisation (WIPO) against a South Korea-based person, whowas using the name 'Kotak' in an internet domain.

The ruling came after the private sector lender filed acomplaint before the Geneva-based WIPO on July 16 this year.

Y G Jo of Seoul was using the domain name 'kotakbank.com'about which the bank contended that the name is confusinglysimilar to its brand 'Kotak' and the website name has beenregistered in bad faith.

WIPO, a part of the United Nations, asked the Seoul-basedperson to transfer disputed internet site to Kotak MahindraBank.

Cybersquatting is an illegal activity for buying andofficially recording an address on the internet that is thename of an existing company or a well-known person, with theintention of selling it to the owner in order to make money.

WIPO's Arbitration and Mediation Centre found the domainname was chosen and employed precisely for its potentialcommercial value in misleading internet users familiar withthe complainant's well-known and arbitrary Kotak marks.

The bank holds a trademark registration for Kotak thatwas registered in the country on October 28, 2003.

WIPO is a specialised agency for developing a balancedand accessible international system in the field ofintellectual property rights

MakeMyTrip approaches HC against WIPO order favouring Tatas

2009-11-12T22:10:00.000+05:30

New Delhi, Oct 2 : Travel portal MakeMyTrip has movedthe Delhi High Court challenging a recent ruling by globalintellectual property regulator WIPO that directed it tohandover domain name www.oktatabyebye.com to Tata Sons.

In its petition, MakeMyTrip submitted that its domain namewww.oktatabyebye.com does not clash with the registeredtrademark of Tata Sons and it had a mere phonetic similarity.

The matter will be again taken up by the court's registraron January 11, 2010.

In August, 2009, allowing the plea of Tata Sons,Geneva-based World Intellectual Property Organisation (WIPO)had consented with its contention that the domain name wasconfusingly similar to its 'Tata' brand and the travel portalhas no rights or legitimate interests to use it.

It also directed MakeMyTrip to transfer domain name to Tata Sons.

"The decision of the panel (WIPO) is causing irreparableharm to MakeMyTrip and is likely to dilute distinctivecharacter of its services and reputation which is likely to bedebased and eroded," said MakeMyTrip in its petition filedthrough its law firm Lal & Sethi.

It further submitted that due to long and continuous useand extensive advertising and sales promotion of the domainname www.oktatabyebye.com, it is exclusively associated withthem.

Barkha Dutt wins domain dispute against Hyderabad-based entity

2009-11-12T21:57:00.000+05:30

New Delhi, Nov 9 : Barkha Dutt, a noted journalist and Group Editor of NDTV news channel, has won an internet domain dispute at the World Intellectual Property Organisation (WIPO) against a Hyderabad-based entity.

The Hyderabad-based cybersquatter--easyticket, Kapavarapu-- has been using a domain name-- 'barkhadutt.com' -- which was registered on January 8, 2007.

Barkha Dutt approached Geneva-based WIPO Arbitration and Mediation Center in September, 2009, objecting the ownership of internet site 'barkhadutt.com' by easyticket.

In her complaint filed with the WIPO, Dutt contended that "her name is widely recognised by the public and any reference to 'Barkha Dutt' is instantly associated with her alone, as the renown Indian journalist and no other entity has rights to use the name."

"The complainant asserts that due to the fame associated with her name, she enjoys the status of a celebrity, and it is well-known that celebrities have the right to restrain third parties from exploiting their name and fame," according to the details available with the judgement copy.

In its order, WIPO's sole panelist--Harini Narayanswamy-- ordered the transfer of disputed domain name 'barkhadutt.com' to the complainant (Barkha Dutt).

The WIPO is a specialised agency of the United Nations for developing a balanced and accessible international system in the field of intellectual property rights.

New Delhi to host events on IPR, traditional knowledge

2009-11-12T21:52:00.000+05:30

New Delhi, Nov 6 : Representatives from knowledge sector from different parts of the world, including those from the World Intellectual Property Organisation, will gather in New Delhi next week to deliberate on various issues related to intellectual property rights and traditional knowledge.

The fifth "International Forum on Creativity and Inventions –-A Better Future for Humanity in the 21st Century" will take place in New Delhi from November 11 to 13.

The event is organised by the World Intellectual Property Organization (WIPO) in co-operation with the Department of Industrial Policy and Promotion (DIPP) under the Ministry of Commerce and Industry.

Geneva-based WIPO is a specialised United Nations agency for developing a balanced and accessible international system in the field of intellectual property.

Industry body Federation of Indian Chamber of Commerce and Industry (FICCI) will also assist in organising the event.

The WIPO forum will provide an opportunity to stakeholders engaged in promoting innovation to exchange experiences and ideas on topical IP issues.

While, another programme-- International Conference on Traditional Knowledge-- to be held on November 13, would also take place in city.

WIPO Director-General Francis Gurry, on his maiden visit to India, is also coming here to participate in the programmes. During his visit Gurry will also meet top Indian officials.

India, UN body discuss sharing patent database

2009-11-12T21:51:00.000+05:30

New Delhi, Nov 9 : Officials of the Intellectual Property Office (IPO) here today discussed sharing the nation's database of over 2.30 lakh patent documents with theGeneva-based World Intellectual Property Organisation (WIPO).

"We have discussed about the posting of 2.33 lakh records of the patent documents on the (IPO) website and this data will be shared with World Intellectual Property Organisation(WIPO)," the Controller General of Patents, Designs & Trade Marks P H Kurian told PTI.

The Geneva-based WIPO is a specialised United Nations agency for developing a balanced and accessible international system in the field of intellectual property.

The WIPO Director General Francis Gurry, in New Delhi to participate in different programmes focused on different intellectual property issues, discussed also the working ofthe electronic modules with the IPO officials.

"He (Gurry) expressed his keenness in operationalising IPO as International Searching Authority," Rajesh Dixit, Assistant Controller of Patents & Designs at the IPO, said.

However, according to Kurian, the operationalisation of IPO as International Searching Authority would be possible by June, 2010, only.

UN agency orders transfer of disputed domain name to Tata Sons

2009-09-28T16:48:00.002+05:30

New Delhi, Sep 28 : Tata Sons, the investment holding firm for the Tata Group, has won a domain case at the World Intellectual Property Organisation against Canada-based Toronto Asia Tele Access.

Toronto Asia Tele Access, whose abbreviated form is 'TATA', claims it provides long distance communication services and has been using a domain name 'tata-telecom.com'.

"The domain tata-telecom.com be transferred to the complainant (Tata Sons)," WIPO Arbitration and Mediation Center said in its judgement.

On May 21 this year, Tata Sons filed a complaint against Toronto Asia Tele Access at Geneva-based WIPO, a UN agency.

Tata Sons had contended that Canadian firm had no rightor legitimate interests in the disputed domain name.

Toronto Asia Tele Access is not commonly known by the disputed domain name but is instead commonly known as "Toronto Asia Tele Access Telecom, Inc", Tata Sons said.

"The respondent (Canadian entity) registered the disputeddomain name in order to exploit and profit from complainant's (Tata) trademark rights," Tata Sons said in its contention at the WIPO Arbitration and Mediation Center demanding transferof disputed domain name.

WIPO is a specialised agency of the United Nations fordeveloping a balanced and accessible international system inthe field of intellectual property rights.

FIIs turns net buyers in debt markets after six months

2009-09-28T16:48:00.000+05:30

New Delhi, Sep 27 : Foreign institutional investors (FII) have turned net buyers in the debt market for the first time in the last six months investing net Rs 594 crore in debt instruments so far this year.

FIIs, so far in 2009, bought debt instruments worth Rs 77,161 crore, while sold instruments valued at Rs 76,566 crore, resulting in a net buy of Rs 594 crore, as per data available with the Securities and Exchange Board of India (Sebi).

FIIs remained net investors in the debt segment in the first two months (January and February) of this year, but in March they were net sellers.

Heavy buying trend resumed in September and FIIs turned net buyer in the debt segment.

"FIIs are looking for investment in emerging markets and India is preferred choice. In coming days also, overseas firms will continue their investment strategy," Delhi-based Unicon Financial Intermediaries Chief Executive Gajendra Nagpal said.

In equity segment also, foreign fund inflow has witnessed significant rise in recent time. In first nine-months of this calendar year, overseas inflow in domestic stock markets has crossed a whopping $11 billion (Rs 54,000 crore) mark.

Reliance withdraws GI tag applications for Jamnagar and KG Gas

2009-09-20T11:55:00.000+05:30

New Delhi, Sep : Reliance Industries Ltd, thenation's most valued company, has withdrawn applications toregister the terms, 'Jamnagar' and 'Krishna Godavari', asgeographical indication (GI) tags for its petro products.

The Mukesh Ambani-led RIL had sought the GI tag for fiveproducts, four with a prefix of 'Jamnagar' and one for KrishnaGodavari Gas.

The company has now 'withdrawn' its applications for fourproducts, including Jamnagar Petrol, Jamnagar Fuel, JamnagarLPG and Jamnagar Diesel, while request for the registration ofKrishra Godavari Gas has been 'abandoned', a senior officialfrom Chennai-based Geographical Indication Registry told PTI.

RIL, however, declined to comment on the issue.

The GI is a sign used on goods that have a specificgeographical origin and possess qualities, reputation orcharacteristics that are essentially attributable to thatregion.

A GI status provides legal protection and facilitates foraction in case of infringement. Further, it promotes economicprosperity of producers in a particular area. GIs are coveredas an element of Intellectual Property Rights.

GL Verma, Assistant Registrar of Trade Marks & GI, saidthe applications of RIL for the term Jamnagar was facingopposition and now the company had withdrawn its applications.

RIL has withdrawn its GI applications exactly after fouryears of filing. The company had filed its applications forthese products on September 15, 2005, as per the details withthe office of Geographical Indications.

Controller General of Patents, Designs & Trade Marks alsoconfirmed the withdrawal and abandonment of applications.

Under the Geographical Indications of Goods (Registrationand Protection) Act, 1999, the GI office functions under theController General of Patents, Designs, and Trade Marks.

RIL had filed applications under class 4 of GeographicalIndications of Goods (Registration and Protection) Act, 1999.Class 4 of the Act deals with products for industrial oils andgreases, lubricants, dust absorbing, wetting and bindingcompositions, fuels (including motor spirit) and illuminants,candles and wicks.

The GI status for the products with Jamnagar prefix wassought for the geographical areas of Gujarat, whereas the tagfor Krishna Godavari Gas was for Andhra Pradesh.

"The decision in this case is a standard practice," Rodney D Ryder, an intellectual property law expert at Delhi-basedlegal firm Kochhar & Co, said.

In past, the GI tag has been awarded to a number ofproducts or goods such as the famous Darjeeling Tea, MadhubaniPaintings, Kashmiri Sozani Craft and Thanjavur Painting.

Indian MDH loses to Pakistani MDH in website dispute case

2009-09-20T11:17:00.000+05:30

New Delhi, Sep 2 : Leading masala-maker Mahashian DiHatti Ltd, popularly known by its brand name MDH, has lost awebsite address dispute case against a Pakistani firm engagedin a similar business at the World Intellectual Property Organisation.

Mahashian Di Hatti had approached the Geneva-based WIPOArbitration and Mediation Center objecting the ownership of anInternet site 'mdhfoods.com' by Pakistan's MDH Food Company.

The Indian firm contented before the Center that disputeddomain name is identical and confusingly similar to its MDH mark, since it incorporates the mark in its entirety and theaddition of "foods" does not detract from its distinctiveness.

The Pakistani firm has no rights or legitimate interestsin the disputed domain name since the complainant (here Indianfirm), as the prior user and hence the lawful owner of themark, has not licensed or otherwise permitted MDH Food Companyto use it, it further said.

The Indian company successfully established the factthat the site 'mdhfoods.com' is confusingly similar to itsmark, but failed to establish the absence of rights orlegitimate interest in the domain name on the part of therespondent.

In its order dated August 19, WIPO's sole panelist --Alan L Limbury -- "denied" the complaint of Mahashian Di Hatti Ltd.

The disputed domain name was registered on February 21last year. The website offers spices and food products.

In its argument before the WIPO Panel, the Pakistanienterprise denied all the claims of the Indian firm and saidit has been selling masala and food products in Pakistan since1984 under the name MDH, which stands for Muhammad Dawood Hassan Food Company.

MDH Food said "in Pakistan its name MDH is unique,sovereign, autonomous, special, independent and commonlyknown."

The WIPO is a specialised agency of the United Nationsfor developing a balanced and accessible international systemin the field of intellectual property rights. The complaintwas filed with the WIPO Center on June 26, 2009.

The complainant (India's MDH) was founded in 1913 as asmall shop in Sialot, now in Pakistan, selling spices underthe name Mahashian Di Hatti, which in Punjabi means "the shopof the Magnanimous."

After the partition of India, the firm moved to Delhiand has since grown substantially, selling spices andcondiments under the logo MDH around the world, includingunder the domain name 'mdhspices.com'.

But because of trade restrictions between the twocountries, it does not sell into Pakistan.

The enterprise has registered trademark rights in thelogo MDH in many countries and the distinctive feature of thatmark is the letters MDH

Tata takes oktatabyebye.com from MakeMyTrip

2009-09-20T11:12:00.000+05:30

New Delhi, Aug 26 : Tata Sons, the holding company ofthe Tata Group firms, has won a case at the World Intellectual Property Organisation against the travel portal, MakeMyTrip,which has been using the term 'tata' in one of its website,'oktatabyebye.com'.

Gurgaon-based mmt admin (commonly known as MakeMyTrip)has been using the domain name 'oktatabyebye.com'.

Tata Sonshas contended that it is confusingly similar to its 'Tata'brand and the travel portal runner has no rights or legitimateinterests to use it.

In May, Tata Sons had moved the Geneva-based WIPOArbitration and Mediation Center demanding transfer ofdisputed domain name. The company had argued that the siteinfringed the right of its registered trademark/service mark'Tata'.

The WIPO has now ordered the transfer of domain name toTata Sons.

"The impugned website incorporates the Tata's orporatename and registered trademark in full and it proves that it isidentical in part and confusingly similar to its well-knownbrand in which the company has a statutory right," Tata Sonshad said in its complaint.

Replying to the charges, MakeMyTrip had said the usage ofthe word "tata" as a gesture finds its mention in the originof a place called Ta Ta Creek as far back as in the year 1860and denied that the domain in question is confusingly similarto the trade mark 'Tata' of the complainant.

The Gurgaon-based firm stated that "the impugned domainname is derived from the common parlance "OK Ta Ta Bye Bye"since it signifies travel, journey and related activities.

But in its argument at the WIPO, Tata Sons said, "it isapparent that the sole purpose of registering the disputeddomain name is to misappropriate the reputation associatedwith the complainant's well-known and famous trademark Tata."

The Internet site owner has registered a separate domainname (makemytrip.com). According to Tata Sons, both the sitesoffer similar services.

However, MakeMyTrip says both cater to separate class ofpersons. While makemytrip.com offers discounts and easy accessto travel plans, oktatabyebye.com lets these travelers make anonline records about their journey.

The WIPO is a specialised agency of the United Nationsfor developing a balanced and accessible international systemin the field of intellectual property rights.

As per details available with the WIPO, Tata Sons duringthe case had made an effort to settle the issue with theMakeMyTrip, which refused to accept the just demands on thegrounds on "vague reasons.

Banarasi saree gets GI tag, joins club of protected goods

2009-09-20T11:08:00.000+05:30

New Delhi, Sep 18 : Banarasi sarees - famous for their fine quality and elaborate patterns woven in silk and gold - have now joined the club of many protected goods that includes Tirupati Laddu and Darjeeling Tea as it has received a Geographical Indication (GI) status by the government.

The Chennai-based Geographical Indication Registry, the competent authority under Government of India, has issued the GI certificate for' Banaras Brocades and Sarees' this month.

After the grant of GI tag, no saree or brocade made outside the six identified districts of Uttar Pradesh can be legally sold under the name of Banaras Saree and Brocade.

GI tag would help genuine producers to legally counter increasing threats from sarees produced in other regions and countries, but sold in India under the tag of Banaras saree.

The application for GI registration of these products was filed by Banaras Bunkar Samiti, Human Welfare Association and six other organizations in July, 2007.

"GI certificate for Banaras saree and brocade can become an effective tool for economic empowerment of the weaver community," UNCTAD India's Deputy Project Coordinator Abhijit Das said.

UNCTAD and its partners have worked closely with weavers in Banaras and facilitated the process of GI registration.

"We dedicate this recognition to millions of weavers of UP, who are engaged in production of products," Rajani Kant, Director of Human Welfare Association, one of the applicants, said.

GI tag for Banarasi saree would help the weavers of the region to commercially leverage for enhancing their incomes.

GI is an Intellectual Property Right which identifies a good as originating in a certain region where a given quality, or reputation of the product is essentially attributable to its geographical origin.

The GI certificate not only recognises the uniqueness and distinct identity of Banaras sarees, but also of related products such as silk brocades, dress material, bed and table.

The products are manufactured in the traditional manner by weavers in Varanasi, Azamgarh, Chandauli, Jaunpur, Mirzapur and Sant Ravi Dass Nagar (Bhadohi).

"At present, sarees produced in Bhagalpur (Bihar), Surat and Bangalore are also sold as Banarasi sarees.I hope this can be stopped once we get the tag," Rajni Kant added

Tirupati ladoo awarded GI tag

2009-09-20T11:03:00.001+05:30

New Delhi, Sep 15 : Tirupati laddoo, offered to devotees at the Lord Venkateswara Temple in Andhra Pradesh, has been awarded geographical copyright.

This bars others from naming or marketing the sweetmeat preparation under the same name.

The Tirumala-Tirupati Devasthanams, a trust that administers the Venkateswara Temple in the Tirumala hills, had applied for Geographical Indication (GI) with the Chennai-based Geographical Indication Registry in March 2008.

“The GI certificate for Tirupati Laddoo has been granted to the trust (TTD). The Laddoo is now protected under law and nobody can copy it,” Assistant Registrar of Trade Marks and GI, GL Verma told PTI.

Under GI, the right to marketing a product is tied to a definite geographical territory and the manufactured goods should be produced or processed or prepared in that territory.

Popular items that have been granted GI tag world over include Champagne and Tequilla, and the procedure helps in preventing others from surreptitiously exploiting a brand name that has evolved over a period of time.

The GI status provides legal protection and facilitates for action in case of infringement. GIs are covered as an element of Intellectual Property Rights.

Controller-General of Patents, Designs, and Trade Marks, P H Kurian, also confirmed granting of GI status to Tirupati Laddu.

TTD, however, couldn't be reached for comments.

Tirupati Laddoo is the popular name for Sri Vari Laddu that is offered as prasadam (sacred food) to the devotees after they worship Lord Venkateswara.

“The size and flavour are typical characteristics of Tirupati Laddoo. Tirupati Laddoos are not produced anywhere in the world and are very unique in terms of quality, reputation and other characteristics, which go into its making,” TTD had claimed in its application.

Primarily there are two types of laddoos - small and big. A small laddoo weighs about 174 grams, whereas the big ones weigh between 700 and 720 grams.

In the past, GI tag has been awarded to a number of Indian products or goods including Darjeeling Tea, Madhubani Paintings and Goa Feni.

Sun Pharma to file 30 applications for generic drugs in US

2009-09-20T11:01:00.000+05:30

New Delhi, Sep 20 : Sun Pharmaceutical Industries,the country's most valued drug maker, aims to file 30applications in the US for manufacturing and marketing of itsgeneric products, company CMD said.

The company would file these applications along with itsUS-based subsidiary Caraco, which is facing trouble due tonon-compliance of current good manufacturing practice of theUS drug regulator.

"This year too, we intend to file 30 ANDAs in the USacross the two companies," Sun Pharma CMD Dilip Shanghvi saidin his speech to the shareholders of the company during theannual general meeting held last week.

We continue to spend for product development and file newproducts from these sites in India and the US, he said.

Between Sun and Caraco, 111 products are pending with the US FDA (Food and Drug Administration).

An abbreviated new drug application (ANDA) is anapplication for a generic drug approval in the US for anexisting licensed medication or approved drug.

The USD 30 billion-plus US generic market, the largestgeneric market in the world, is of great interest to allpharma companies across the world with global aspirations.

Last year, generics accounted for 71 per cent of the USpharma market by prescription.

India and the US, the two largest markets for Sun Pharma,together accounted for 80 per cent of the company's turnoverin the latest financial year.

Stating about the Rs 36,000-crore pharmaceutical market of India, Shanghvi said in here market competition has beenintense and will continue to remain so in foreseeable future.

Companies with global presence continue to either set upoperations or enter into contract manufacturing agreementswith companies in India with the purpose of creating a lowcost sourcing base for their global operations.

"Over and above this, competition from Chinese companiesis on the increase strong effort at enhancing their presencein the regulated markets globally," he said.

According to Shanghvi, the new patent regime, which was introduced in 2005, is likely to have an impact in the yearsto come.

"We expect the pipeline of new drugs available for launchto gradually shrink," he further said.

The recent acceptance of the revised Mashelkar Report,which recommends patenting of incremental changes may be an indicator of things to come. Of course, these are not thecountry's best interests in the long run.

Currently, in India the patenting of incremental changesare not allowed under the law.

"This will open up a floodgate of patent applications forrudimentary changes and may result in patent life beingextended far beyond what it is worth," Shanghvi added.

FII inflows set to cross USD 10 bn-mark this month: analysts

2009-09-20T10:58:00.000+05:30

New Delhi, Sep : Foreign investment in the Indianstock markets may cross USD 10 billion-mark by the end of thismonth as a hefty USD 9.8 billion (Rs 47,674 crore) havealready been poured into the bourses by overseas entities sofar this year, analysts feel.

"FII inflows in the Indian equity market would continuein the coming days and it may cross USD 10 billion level bySeptember-end," Anand Rathi Financial Services Director & Headof Research Tarun Sisodia.

Foreign institutional investors (FIIs) are the net buyerof shares worth Rs 47,674 crore so far in this year, accordingto the data available with the market regulator or Securitiesand Exchange Board of India (SEBI).

The infusion of money by overseas investors in shares isa part of their portfolio management in various emergingmarkets and India is part of that strategy, Sisodia, who isbased in Mumbai, said.

So far in this month, foreign investors have infused overRs 7,400 crore (USD 1.5 billion), increasing their total netinvestment, since FIIs were allowed in India, to over Rs 2.78lakh crore (65 billion dollars), as per SEBI data.

"FII investment in the local markets may cross USD 10billion mark by end of this week. As everything is bullish andpicture of Indian stock market is very rosy," Delhi-based SMCGlobal's Vice President Rajesh Jain said.

Significantly, so far in 2009, the Bombay StockExchange's benchmark index Sensex gained over 73 per cent.Nifty, the benchmark index of National Stock Exchange has alsoadvanced fairly so far this year.

In long term, the rise in benchmark index would continue, Sisodia added.

"The Indian market has seen a huge inflow of funds fromoverseas investors and crossing 10 billion dollars level isnot tough in the current month," Ashika Stock Brokers ResearchHead Paras Bothra said.

After pulling out a hefty Rs 52,986 crore (11.9 billiondollars) from the local stock markets last year, FIIs remainednet seller of shares for the first two month of current year.

However, with the sign of revival of economies, the trendturned positive during March and marketmen feel that the yearwill close with huge inflows.

Japan topples US in number of patents issued: UN agency

2009-09-20T10:57:00.000+05:30

New Delhi, Sep 18 : Japan granted the maximum number of patents in 2007 and has replaced the United States from number one position, a status it was enjoying for nearly a decade, a UN agency report says.

"The USPTO (United States Patent and Trademark Office), which has issued the highest number of patents since 1998, was overtaken in 2007 by the patent office of Japan," the World Intellectual Property Organisation (WIPO) said in a statement on Friday.

Geneva-based WIPO is a specialised agency of the United Nations for developing a balanced and accessible international system in the field of intellectual property rights.

Further, the patent office of China has replaced the EPO (European Patent Office) as the fourth largest office in terms of issuing grants, WIPO said in its report titled the "World Intellectual Property Indicators 2009."

The report is based on 2007 figures, the last year for which complete worldwide statistics are available, WIPO said.

In 2007, Japan granted 1.64 lakh patents, whereas in USA the number was 1.57 lakh. The total number of granted patent in that year stands at 18.5 lakh.

In terms of patent filing, the report said Patent offices of India, Brazil and Mexico, received a significant number of filings, report stated.

Trends in intellectual property activity shows that demand for IP rights continued to increase prior to the onset of the global economic crisis, it said.

Indian MDH loses to Pakistani MDH in website dispute case

2009-09-02T11:15:00.000+05:30

New Delhi, Sep 2 : Leading masala-maker Mahashian DiHatti Ltd, popularly known by its brand name MDH, has lost awebsite address dispute case against a Pakistani firm engagedin a similar business at the World Intellectual PropertyOrganisation.

Mahashian Di Hatti had approached the Geneva-based WIPOArbitration and Mediation Center objecting the ownership of anInternet site 'mdhfoods.com' by Pakistan's MDH Food Company.

The Indian firm contented before the Center that disputeddomain name is identical and confusingly similar to its MDH mark, since it incorporates the mark in its entirety and theaddition of "foods" does not detract from its distinctiveness.

The Pakistani firm has no rights or legitimate interestsin the disputed domain name since the complainant (here Indianfirm), as the prior user and hence the lawful owner of themark, has not licensed or otherwise permitted MDH Food Companyto use it, it further said.

The Indian company successfully established the factthat the site 'mdhfoods.com' is confusingly similar to itsmark, but failed to establish the absence of rights orlegitimate interest in the domain name on the part of therespondent.

In its order dated August 19, WIPO's sole panelist --Alan L Limbury -- "denied" the complaint of Mahashian Di Hatti Ltd.

The disputed domain name was registered on February 21last year. The website offers spices and food products.

In its argument before the WIPO Panel, the Pakistanienterprise denied all the claims of the Indian firm and saidit has been selling masala and food products in Pakistan since1984 under the name MDH, which stands for Muhammad Dawood Hassan Food Company.

MDH Food said "in Pakistan its name MDH is unique,sovereign, autonomous, special, independent and commonlyknown."

The WIPO is a specialised agency of the United Nationsfor developing a balanced and accessible international systemin the field of intellectual property rights. The complaintwas filed with the WIPO Center on June 26, 2009.

The complainant (India's MDH) was founded in 1913 as asmall shop in Sialot, now in Pakistan, selling spices underthe name Mahashian Di Hatti, which in Punjabi means "the shopof the Magnanimous."

After the partition of India, the firm moved to Delhiand has since grown substantially, selling spices andcondiments under the logo MDH around the world, includingunder the domain name 'mdhspices.com'.

But because of trade restrictions between the twocountries, it does not sell into Pakistan.

The enterprise has registered trademark rights in thelogo MDH in many countries and the distinctive feature of thatmark is the letters MDH.

Managers feel state of economy impacting job decisions: Study

2009-05-12T22:18:00.000+05:30

New Delhi, May 12 As many as three in every four middle-level managers in Indian companies feel the state of the economy is having some impact on their job related decisions, with most of them saying they will stay at their current position until the situation improves, says a study.

According to the study by global consultancy firm Accenture, about 75 per cent of middle managers surveyed feel the state of economy is having some effect on their job related decisions with most saying they would like a new job but would stay in their current position until the economy improves.

Further, one in every five respondents said they are taking steps to improve the security of their jobs, such as working harder or longer hours.

The survey also pointed out that 50 per cent of middle-level managers in the country were extremely satisfied working at their current organisations, while nearly 42 per cent surveyed middle managers say they are only somewhat satisfied.

"Significantly, more middle managers who are not interested in another job are highly satisfied with their current organizations (83 per cent versus 49 per cent considering and 18 per cent looking)," the study, 'Middle Managers Outlook: India', noted.

The study by the global consultancy firm revealed that nearly two-thirds of middle managers would consider another job, but are not actively looking.

The Accenture study was conducted in October last year, to assess middle managers' outlook on their current job situations. A total of 156 web-based interviews were conducted by the firm in the country.

Interestingly, over half of the middle managers (53 per cent) in India feel job dissatisfaction stems primarily from insufficient pay or benefits, followed by two-in-three (40 per cent) who feel dissatisfaction is due to lack of prospects or advancement, the survey revealed.

One-third are dissatisfied due to insufficient training, inflexible work hours, the inability to balance work and life and a lack of challenge.

About 46 per cent selected insufficient compensation for one the most frustrating aspects of the job.

About two-in-five or fewer are frustrated by other areas, including: not getting credit for the work I do, increasing workload, no clear career path, inflexible work hours and insufficient training.

Global trademark registration touches one-million mark

2009-05-11T22:23:00.000+05:30

New Delhi, May 11 : The international trademark registration touched the one-million mark this month, more than a century after the first trademark was registered by a Swiss chocolate maker.

The World Intellectual Property Organisation (WIPO), the UN body which registers trademark, said the growing number of registrations reflects an increasing awareness among the general public and the business community.

“Trademarks and the branding efforts help consumers make informed choices about the products they buy,” WIPO Director General, Mr Francis Gurry said in a statement on Monday.

The trademarks are registered at the WIPO under its Madrid System for the International Registration of Marks.

“They (trademarks) are extremely valuable commercial assets. WIPO’s international trademark registration system is a cost-effective, user-friendly and streamlined means by which businesses operating internationally can protect and manage their trademark portfolio,” Mr Gurry further said.

Madrid System offers a trademark owner the possibility to have his trademark protected in several countries by simply filing one application directly with his own national or regional trademark office.

FIIs bring Rs 3,614 cr in 5 days; accounts 91% of 2009 inflow

2009-05-10T22:20:00.000+05:30

New Delhi, May 10: In just five trading sessions this month, the Indian equity market saw foreign investments to the tune of Rs 3,614 crore, accounting for 91 per cent of the overall purchases so far this year.

Foreign Institutional Investors (FIIs) have pumped in a net of Rs 3,614 crore in equities in May, which saw the Bombay Stock Exchange benchmark Sensex breaching the psychological 12,000-level, the highest in the last seven months.

Last week, FIIs made a gross purchase of equities worth Rs 14,447 crore and sold equities valued Rs 10,832 crore, resulting in net investment of Rs 3,614 crore, as per the data available with the market regulator Securities and Exchange Board of India.

So far this year, FIIs have made a gross purchase of equities worth Rs 1,35,692 crore and sold equities valued at Rs 1,31,721 crore, resulting in net investment of Rs 3,970 crore, Sebi data shows.

The previous week also recorded the biggest weekly infusion by the FIIs in the current calendar year. With a bulk investment of Rs 1,491.10 crore in a single day, FIIs remained net purchasers in equities in the remaining days.

However, analysts believe buying equities by the FIIs last week was just momentary as there was no specific reason to bring back their confidence.

"There was heavy buying by FIIs in a single day and on the other days they made normal investments. This week they would square-off their positions and wait for clarity for the general election results on May 16," Arun Kejriwal Head of Kejriwal Research and Investment Services said.

After pulling out a hefty Rs 52,987 crore from the Indian stock markets in 2008, which saw the Bombay Stock Exchange benchmark Sensex plunging 51 per cent, FIIs have turned net buyers during the last week of April.

The Sensex has gained over 23 per cent so far this year to touch 12,134.75 points, the highest level in the past seven months.

Indicating a revival in the stock market, the flight of FIIs back to the Indian markets saw an infusion of Rs 6,508 crore in the capital market in April alone, the highest monthly infusion so far this year.

An analysis of the data of foreign investment shows that the confidence of FIIs in the Indian equities started to build in the month of March, when they made a net investment of Rs 530 crore in stocks.

However, the investment was significantly less as compared to Rs 6,681 crore sell-off by them in the first two months of 2009.

"FIIs would be selling now as prices have gone up too soon. This week they will refrain from making any large scale purchases and would resort to selective profit booking," Unicon Financial Intermediaries chief executive Gajendra Nagpal said.

Top 10 firms add Rs 40,000 cr, RIL leads pack of gainers

2009-05-10T22:16:00.000+05:30

New Delhi, May 10 (PTI) The country's 10 most valued firms added over Rs 40,000 crore to their market capitalisations last week, with Reliance Industries accounting for over one-third of the total gain.

The 10 most valued firms added Rs 41,538 crore to their valuation last week, taking the total market capitalisation of the elite club to Rs 12,89,157 crore at the end of trade on Friday.
Last week, valuation of the club, comprising four private and six public sector entities, was at Rs 12,47,619 crore.

Corporate behemoth RIL added Rs 14,841 crore to its market cap last week, taking its valuation to Rs 2,98,549 crore. The valuation of the Mukesh Ambani-led firm was at Rs 2,83,709 crore a week ago. Shares of RIL surged over five per cent to end at Rs 1,897 on the Bombay Stock Exchange last week.

However, amid overall gain in the broader market, three firms, NTPC, BHEL and ITC, lost a combined Rs 777 crore in a week.At the end of Friday's trade, power utility NTPC witnessed an erosion of Rs 289 crore from its valuation to Rs 1,56,499 crore. BHEL lost Rs 206 crore and FMCG major ITC Rs 283 crore.

Besides, mining giant NMDC gained Rs 12,667 crore during the week and moved up four places to the fifth slot in the premier club. NMDC's valuation stood at Rs 90,950 crore at the end of trade last week.

State-run oil major Oil and Natural Gas Corp added Rs 3,721 crore and MMTC gained Rs 3,830 crore in their valuation, respectively. The market cap of ONGC, the most valued PSU entity, stood at Rs 1,88,840.83 crore.

Besides, telecom services provider Bharti Airtel and State Bank of India added Rs 3,435 crore and Rs 3,012.5 crore, respectively, to their valuation last week. IT bellwether Infosys added Rs 807 crore to its valuation and dropped by a notch to the sixth place in the top-10 club.

Apart from the 10 most valued firms, two private sector lenders, ICICI Bank and HDFC Bank, added Rs 4,770 crore and Rs 1,820.62 crore, respectively, last week. ICICI Bank's and HDFC Bank's market capitalisation stood at Rs 53,186 crore and Rs 46,821 crore, respectively.

RIL, the numero-uno in the list, is followed by ONGC (Rs 1,88,840 crore), NTPC (Rs 1,56,498 crore), Bharti Airtel (Rs 1,45,671 crore), NMDC (Rs 90,950 crore), Infosys (Rs 87,148 crore), MMTC (Rs 85,624 crore), SBI (Rs 84,131 crore), BHEL (Rs 80,650 crore), ITC (Rs 71,091 crore).

IPL team Deccan Chargers seeks trademark rights

2009-05-07T22:24:00.000+05:30

New Delhi, May 7 : Deccan Chargers, one of the Indian Premier League’s franchises, has filed multiple applications before Government authorities seeking exclusive trademark rights for its name.

“The Deccan Chargers have filed for trademark protection in multiple classes aiming for an expanded brand portfolio” Kochhar & Co Partner Rodney D. Ryder, who is legal adviser to the Deccan Chargers, said.

The application, filed by Deccan Chargers Sporting Ventures Pvt Ltd, for the exclusivity of trademarks has been sought under various categories, including Class 25 (deals with clothing, footwear) and Class 28 (games, playthings), Ryder added.

Interestingly, the trademark rights are not only limited to the sports-related classes but the firm is also seeking exclusivity of the brand under many other classes, including tobacco, smokers’ article, beers, coffee tea, sugar and bread.
“(Trademark) protection helps ensure exclusivity and protect ownerships rights. The brand is more valuable when protected. Business partners, franchisees, customers, all know that the rights are exclusive,” Ryder further said.

Significantly, the Essel group-promoted Indian Cricket League (ICL) has also sought trademark of its different brands before the government authorities.

The Board of Control for Cricket in India (BCCI), the apex governing body for the sport in the country, has objected to dozens of twenty-twenty related trademark applications filed by Essel Sports Private Ltd.Essel Sports is a part of Subhash Chandra-led Zee group, which is the force behind the ICL.

The ICL runs parallel to the BCCI’s Indian Premier League (IPL), although both the leagues conduct cricket tournaments in the 20-20 format, where each team is allowed to play for 20 overs.

The two groups have been often clashed over issues ranging from contracting of players to telecast rights and the latest showdown seems to be on trademarks.

The BCCI has now opposed Essel’s move to get registered in its (Essel) name various trademarks involving phrases like Twenty-Twenty and its many other combinations, as per the information available from the Controller General of Patents Designs and Trademarks under the ministry of commerce and industry

FIIs turn net investors in 2009, inject Rs 356 cr in equities

2009-05-03T22:29:00.000+05:30

New Delhi May 3: Foreign Instituional Investors (FIIs) have emerged as net buyers in the Indian stock markets after a one year face-off, with net investment of Rs 356 crore in the first four months of the year.

So far this year, FIIs have made a gross purchase of equities worth Rs 1,21,245 crore and sold equities valued at Rs 1,20,888 crore, resulting in net investment of Rs 356 crore, as per the data available with the market regulator Sebi.

After pulling out a hefty Rs 52,987 crore from the Indian stock markets in 2008, which saw the Bombay Stock Exchange benchmark Sensex plunging 51 per cent, FIIs have turned net buyers at the end of Wednesday's trade.

"Risk aversion has reduced and FIIs have started showing confidence in India. They know that the India growth story is intact and in long run the market is going to give better returns," SMC Global Vice President Rajesh Jain said.

Analysts say strenghtening of Rupee against the US greenback in the last one month signals that the flow of foreign funds are coming back to the country.

The rupee, which had touched a high of Rs 52 against the US dollar, has now appreciated and is hovering around Rs 49 a dollar mark.

"The US dollar is getting weaker as the FIIs, sensing a turn around, are now focussing on the emerging economies as their investment destination," Mr. Jain added.

UK govt seeks India patent for satellite navigation system

2008-11-28T22:55:00.000+05:30

New Delhi, Nov 28 : The UK government is seeking a patent in India for a defence invention called 'modulation signals for a satellite navigation system', which can measure satellite signals.

The UK government has approached the Controller General of Patents, Designs and Trademarks by filing a patent application for the invention.

The patent application in India has been filed in the name of Secretary of State for Defence ( Defence Minister of the UK).

The approving authorities have published the claims made by the UK government in their latest Patent Office Journal, giving a notice seeking public opinion on that.

The present invention is related to modulation signals, systems and methods.

The satellite navigation system of the Defence Ministry is broadly based on the technique used in the Global Positioning System (GPS), which operates by using a number of frequencies, according to the patent application.

Mphasis posts net profit of Rs 295 cr

2008-11-26T23:01:00.000+05:30

Mumbai, Nov 26 : IT firm Mphasis today said its consolidated net profit stood at Rs 295 crore for the seven months ended October 31, 2008, while it had a net profit of Rs 140 crore over the corresponding period a year ago.

Consolidated total income stood at Rs 1,927.4 crore for the period under review, Mphasis Ltd said in a filing to the Bombay Stock Exchange.

On the standalone basis, the software firm posted a net profit of Rs 264.5 crore for the period ended October 31, 2008.

Further, the board has recommended a final dividend of Rs 2 per share for the seven months ended October 31, the company said.

“This has been a year of strong financial performance with record EPS and EPS growth-the highest in the history of the company,” Mphasis CEO Jeya Kumar said.

Mphasis is the part of EDS, a global technology services provider, which was acquired by HP (Hewlett Packard) in August this year.

After the acquisition of EDS, the group has changed the quarter and financial year to November-October with effect from November 1, 2008 to align to the financial year of HP, the company added.

Shares of the company closed at Rs 151.50, down 1.37 per cent on the BSE. PTI SKR

Godrej Consumer approves buyback offer

2008-11-25T23:05:00.000+05:30

Mumbai, Nov 25 : FMCG major Godrej Consumer Products today said its board has approved to buyback its equity shares from open market at a price not exceeding Rs 150 a piece.

"The buyback will be through open market and subject to a maximum price of Rs 150 per share and a maximum outlay of Rs 14.90 crore,” Godrej Consumer Products Ltd said in a filing to the Bombay Stock Exchange.

Shares of the company closed at Rs 118.50, up 0.98 per cent on the BSE.

Great Offshore leases two vessels at USD 22 mn

2008-11-25T23:02:00.000+05:30

Mumbai, Nov 25 : Integrated offshore oilfield services provider Great Offshore today said it has chartered its two vessels to Petroleum Marine Services of Egypt for a USD 22 million (Rs 109.84 crore).

"The company has chartered two of its vessels -- Malaviya Thirty Three and Gal Ross Sea -- to Petroleum Marine Services Co," Great Offshore Ltd said in a filing to the Bombay Stock Exchange.

Initially, this contract is for one year, which has an option for two more extensions, the company said.

Further, the vessels have commenced operations in the Khafji Oilfields, it added.

Great Offshore was trading at Rs 267.75, up 0.51 per cent in the afternoon trade on the BSE.

Slump in US retail may recover by 2010

2008-11-25T22:59:00.000+05:30

New Delhi, Nov 25 : The US retail sector, which is on a downward spiral largely because of declining consumer confidence on the back of credit crunch, is likely to see some recovery by early 2010, analysts feel.

Retail sales in September and October fell dramatically in the US on the back of global economic turmoil and the trend is emerging as a major concern among economists across the US. The coming holiday season may not be 'merry and bright' for this segment .

According to the US-based ShopperTrak RCT, which provides retail intelligence solutions and services, in the upcoming holiday season retailers will most likely feel the sting of a lagging economy and lowered consumer confidence during this critical shopp ing period.

As per ShopperTrak's Retail Traffic Index (SRTI), total US foot traffic during the 2008 holiday season is expected to decline by nearly 10 per cent as compared to last year.

“With all of the difficulties in the US economy it will take some time for retail sales to rebound. ...We will likely begin to see an economic turnaround until the later half of 2009 or even early 2010,” responding to an e-Mail query the US-based Retail Management Consultants President and CEO, Mr George Whalin said.

A number US retail giants including JC Penny, Aber Crombie, Lowe's, Traget and Saks have reported a fall in their earnings and sales in the latest quarter.

However, Walmart managed to register a growth of 10 per cent in its net income at $3.13 billion in its third quarter ended October 31.

Atlanta bags Rs 146.4 cr contract from GIDC

2008-11-24T23:04:00.000+05:30

Mumbai, Nov 24 : Diversified firm Atlanta today said it has secured a contract worth Rs 146.4 crore from Gujarat Industrial Development Corporation for infrastructure related works.

Under the contract, the company will provide infrastructure for Dahej Special Economic Zone (Dahez SEZ Ltd), Atlanta Ltd said in a filing to the Bombay Stock Exchange.

Earlier, in October, the company in a joint venture with ARSS had bagged a contract worth Rs 72 crore from Southern Railway for gauge conversation and construction-related works.

Shares of the company closed at Rs 55, down 3.68 per cent on the BSE.

AstraZeneca to axe 1,400 jobs by 2013

2008-11-20T21:18:00.000+05:30

London, Nov 20 : Global pharmaceutical giant AstraZeneca today said it will slash about 1,400 jobs in the coming years across Europe, as part of the restructuring plan of its manufacturing and supply chain operations.

The UK-based pharma major would exit from its three units in Europe -- Porrino in Spain, Destelbergen in Belgium and Umea in Sweden -- under efficiency improvement programme, the company said in a statement.

Further, there would be roles affected at its facilities in Macclesfield in the UK and Sodertalje in Sweden, it added.

"These moves will result in a net reduction across the business of 1,400 positions by 2013," AstraZeneca said, adding that these job cuts are subject to local consultation.

"I realise these changes are difficult for our affected employees, with whom we will be consulting in the coming months. We believe these changes are necessary for the long-term strength of the business," AstraZeneca Executive Vice President Operations David Smith said.

Anglo-Swedish pharma company has announced proposed changes to its global manufacturing and supply chain operations as part of its ongoing programme to improve efficiency across the business.

However, the company's outlook to investors on restructuring costs remains unchanged for 2008.

"These moves are a continuation of AstraZeneca's programme to improve the organisations productivity and efficiency," David added.

AstraZeneca has a presence in India through its Indian arm AstraZeneca Pharma India.

Shares of AstraZeneca fell 0.84 per cent and was trading at 2,482 pence on the London Stock Exchange. Whereas, AstraZeneca Pharma India's shares settled at Rs 465.85, down 2.09 per cent on the Bombay Stock Exchange.

Tough days ahead for media firms as profits shrink

2008-11-11T21:27:00.000+05:30

New Delhi, Nov 11 : Hit by a fall in advertisement revenues, media sector firms have witnessed a sharp drop in profits in the September quarter and experts believe they are likely to remain under pressure for the next one year.

According to an analysis of the quarterly earnings of the ten leading media houses including NDTV, HT Media, TV Eighteen and Zee Entertainment as many as seven firms have suffered a significant impact on their bottomlines in the second quarter this fiscal.

Prannoy Roy led-NDTV widened its net loss to Rs 119.38 crore for the second quarter ended 30 September, while HT Media, which publishes Hindutsan Times, Mint and Hindustan, posted a 49 per cent decline in net profit at Rs 16.28 crore in the same period.

The key reason for media firms’ profits getting impacted is the clear fall in the ad spends which have been impacted by the economic environment.

“Pressure is likely to continue in the Media and Entertainment space for the next one year in line with the overall economy,” consultancy firm BMR Advisors Partner for Media and Entertainment Industry Practice Vivek Gupta said.

“However, the long term scenario remains bullish as a lot of the consuming class has still not been penetrated. And several triggers exist in the industry,” Gupta added.

Media conglomerate Television Eighteen posted a net profit of Rs 18.12 crore, whereas it had a net profit of Rs 26.27 crore in the corresponding period previous financial year.

Meanwhile, two media houses, TV Today and Subhash Chandra — led Zee Entertainment Enterprises — posted a growth in their net profit in the second quarter of current fiscal.

Zee Entertainment posted a positive result with a net profit of Rs 178.1 crore, a 45.53 per cent growth as compared to Rs 97 crore for the same period a year ago. While, TV Today Group, which broadcasts news channel Headlines Today and Aaj Tak, posted a net profit of Rs 7.57 crore against Rs 5.35 crore a year ago.

Another analyst from leading brokerage firm believes as corporate houses are cutting their advertisement expenditures, the media sector including print and TV are likely to witness an impact on their revenues.

South-based Deccan Chronicle, who owns Hyderabad team of Indian Premier League (IPL) and publishes Asian Age and Deccan Chronicle, suffered a 45 per cent drop in profits at Rs 45.27 crore against Rs 82.60 for the quarter ended 30 September, 2007.

Globally, the media sector has also not performed well and ad revenues have decline amid the economic crisis impacting the the corporate sector.

Media services firm Zenith Optimedia has cut its forecast for global adspend growth to 4.3 per cent in 2008 down from its earlier 6.6 per cent expectations.

Peer to peer lending gains prominence

2008-11-06T16:58:00.000+05:30

New Delhi, Nov 6 : Amid a liquidity crunch in banking, a relatively new practice of lending and borrowing without intermediaries like banks and financial institutions is emerging through online sharing of money, making it easier for people to get loans.

According to a study by market intelligence and data analysis services provider Grail Research, peer-to-peer lending -- which refers to an individual or a group lending money to a person in need without the role of any intermediary -- is fast emerging and may reduce dependence on banks.

The market size of the country's informal lending market is estimated to be $ 90-100 billion, with rural areas accounting for a bulk of the market.

Of this, just 30-35 per cent is supposed to be managed through friends and family networks, including the emerging new platform of 'peer-to-peer' lending.

This new form of loan is more popular among people who do not have easy access to bank loans and belong to low income groups.

"P2P lending is one of Web 2.0's less appreciated killer apps. By eliminating intermediaries such as banks, it creates better outcomes for both borrowers and lenders. We expect it to be a key threat for traditional lenders such as banks in the long term," Grail Research country head Amit Kumar said.

While the lack of a fully functional credit bureau inhibits its application in its traditional form, it is also leading to innovation such as the use of micro finance institutions.

"We consider its potential impact to be on par with other innovative models such as ITC's e-choupal," Kumar added.

Unlike traditional banks, which are governed by the Reserve Bank of India's regulations, P2P lending is more independent and flexible on various points.

"In the P2P system, the rate of interest at which one would take loans is negotiable. Unlike regulated banks' practices, paper work and credit checks of borrowers are not so important here, which ultimately saves time," Kumar said.

These firms mainly target poorer segments as they do not have access to formal banking. Moreover, a host of micro-credit institutions operating in India are unable to meet the entire micro-credit demands of the country.

Traditionally, people prefer banks and other similar institutions as they are considered more reliable than lesser-known financial firms.

However, a number of P2P lending firms, like dhanaX, Range De and GlobeFunder, have emerged in recent times. But they are in the initial stages and need protection and support from the government for accelerated growth, the Grail Research study said.

The Internet plays a major role in the fledgling industry as P2P lending through portals of such companies involves online sharing of money between users.

"Borrowers put up their profiles and make requests for loans on the portals, which the lenders can view. The entire process helps the borrower and the lender gets interest rates that are acceptable to both parties," Kumar said.

P2P companies earn revenues through commissions, both from the lender and the borrower or agent, for arranging the servicing the loan.

P2P lending firm dhanaX co-founder Siva Prasad Cotipalli said, "dhanaX is targeting borrowers with an income between Rs 60,000 and 1,50,000 per annum as there are huge opportunities in the Indian credit market with an unmet credit requirement of nearly Rs 2,00,000 crore (Rs 2,000 billion)."

Great Offshore acquires Andhra firms for Rs160 cr

2008-11-05T21:02:00.000+05:30

Mumbai, Nov 5 : Great Offshore, integrated offshore service provider said that it has acquired Andhra Pradesh based companies KEI-RSOS Maritime and Rajmahendri Shipping and Oilfield Services for Rs160 crore.

“The company on 5 November, completed all procedural formalities and acquired 100% equity stake in two companies,” Great Offshore Ltd said in a filing to the Bombay Stock Exchange (BSE).

KEI-RSOS Maritime and Rajmahendri Shipping and Oilfield Services are in the maritime services business providing offshore support, single point mooring operations and port management services.

The companies have a strong presence on the East Coast of India.Being wholly-owned subsidiaries of Great Offshore, the companies will add to EPS accretion on a consolidated basis for this fiscal, which ends on 31 March, 2009, the company said.

In the first week of September, the company had announced that it would acquire both firms for Rs 160 crore in an all cash transaction.

“The decision to acquire an existing running business is with a view to broad base earnings without diversifying core business risks and ensuring sustainable cash flows and earnings,” Great Offshore Vice Chairman cum Managing Director Vijay K Sheth said.

Earlier in July, KEI received a contract for providing comprehensive marine operations services for the Gangavaram Port for a period of 12 years.

In a separate filing to the BSE on 2 September, Great Offshore had announced that the existing management of both companies would continue to manage the day-to-day business.

Gail India Signs Agreement With Himachal State Government

2008-11-04T21:07:00.001+05:30

Mumbai, Nov 5 : State-run GAIL India on Tuesday said it has entered into an agreement with the Himachal Pradesh government to study the feasibility of extending the Dadri-Bawana-Nangal natural gas pipeline to the state.

Under the agreement, the oil major would work on a joint exercise to assess the demand potential of natural gas and allied products in the state, GAIL India Ltd said in a filing to the Bombay Stock Exchange.

Dadri-Bawana-Nangal is a 610-km pipeline project, which would pass through UP, Delhi, Haryana and Punjab.

"GAIL will use its technical and commercial expertise to study the various options and collate the gas demand potential of Himachal Pradesh," the company said.

Department of Industries of the HP government would facilitate information pertaining to fertiliser, power, industry, domestic and transport sectors, which have potential to consume gas and CHG as fuel, it added.

Zee News acquires 26 pc stake in Sky B

2008-11-01T21:15:00.001+05:30

Mumbai, Nov 1 : Subhash Chandra group firm Zee News today said it would acquire 26 per cent stake in Sky B (Bangla), a West Bengal focused media firm, for an undisclosed amount.

In a filing to the Bombay Stock Exchange, Zee News Ltd said its board has approved the acquisition of 26 per cent stake in Sky B (Bangla) Pvt Ltd, which owns infotainment channel Akaash Bangla.

Under a separete agreement, Zee News will now handle marketing, advertisement sales and programming initiatives of Akaash Bangla, at an agreed fee. However, it has not disclosed the fee structure.

The advertisement sales function of Akaash Bangla would now be handled by Zee News, it added. Akaash Bangla is a twenty-four hours Bengali infotainment channel, which is owned by Sky B.

Zee News and Sky B already have a 60:40 partnership in joint venture firm Zee Akaash News Pvt, which owns 24 Ghanta.

"This accord is a win-win for both the companies. We look east as market of strategic importance and would like to strengthen our presence there to emerge as the single largest player in electronic media," Zee News CEO Barun Das said.

Reliance closes Jamnagar polypropylene plant for repair

2008-10-28T12:18:00.000+05:30

Mumbai, Oct 28 : Reliance Industries today said it has shut down its polypropylene plant at the Jamnagar refinery complex "with the objective of improving product swing capability and increasing propylene yield."

"The shutdown is expected to last for approximately four weeks," Reliance Industries Ltd (RIL) said in a filing to the Bombay Stock Exchange.
However, all other units at the Jamnagar refinery are working at their normal throughputs, the company said.

"The rest of the units at the refinery are continuing to operate at their normal throughputs and product dispatches to customers will be unaffected through the duration of the shutdown," Reliance said.

Further, this opportunity will also be utilised to carry out other routine maintenance and turnaround activities, the company added.

Polaris Software Q2 PAT up by Rs 34.42 cr

2008-10-21T23:24:00.000+05:30

Mumbai, Oct 21 : Polaris Software Lab on Tuesday said it has reported profit after tax of Rs 34.42 crore for the second quarter ended 30 September, an 88.91 per cent growth over the corresponding period a year ago.

The company had a profit after tax of Rs 18.22 crore for the same quarter last financial year, Polaris Software Lab Ltd said in a filing to the Bombay Stock Exchange.

Total income of the company rose to Rs 344.41 crore for the quarter under review, from Rs277.66 crore for the year-ago period.

For the six months ending 30 September, it posted a profit after tax of Rs61.43 crore, an 88.20% growth, against Rs32.64 crore for the same period in FY’08.

Total income in the same period rose to Rs 662.66 crore for the six-month period of the current fiscal, from Rs543.70 crore for the year-ago period.

Shares of the company surged 12.35 per cent after the announcement of results on Tuesday and were trading at Rs50.95 in the late afternoon trade on the BSE.

LIC Housing Finance Q2 net up 16 pc at Rs 135 cr

2008-10-21T23:10:00.000+05:30

Mumbai, Oct 21 : LIC Housing Finance Ltd on Tuesday announced a net profit of Rs 135.06 crore for the second quarter ended September 30, 2008, a 16 per cent growth over the corresponding period a year-ago.

The company had a net profit of Rs 116.37 crore for the same quarter last financial year, LIC Housing Finance Ltd said in a filing to the BSE.

The total income of the company rose to Rs 704.23 crore for the September quarter of the current financial year from Rs 523.22 crore for the year-ago period.

For the six months ended September 2008, the housing finance firm posted a net profit of Rs 239.73 crore, against Rs 163.07 crore for the same period of FY'08, up by 47 per cent.

The total income rose to Rs 1,323.92 crore in the same period from Rs 989. 53 crore a year-ago.

Shares of the company were trading at Rs 242.10, up 7.39 per cent in the afternoon trade on the BSE.

Hindustan Construction bags Rs 360-cr order

2008-10-21T22:19:00.000+05:30

Mumbai, Oct 21 : Infrastructure developer Hindustan Construction Company (HCC) on Tuesday said it has bagged an order worth Rs 360 crore from Lanco Infratech for construction-related works at Teesta Hydro Electro Power Project in Sikkim.

The scope of work includes construction-related works of 16.5-km long tunnels, HCC said in a filing to the Bombay Stock Exchange, adding that this project would be completed in forty-five months.

Earlier in April, the company had bagged an order worth Rs 303 crore for similar work at the Teesta Hydro Power Project.

Hindustan Construction surged 4.60 per cent and was trading at Rs 46.65 in the afternoon trade on the BSE.

Wire and Wireless net loss widens at Rs 21.97 cr

2008-10-21T22:17:00.000+05:30

Mumbai, Oct 21: Cable television distribution firm Wire and Wireless India Ltd today posted consolidated net loss from ordinary activities after tax of Rs 21.97 crore for the second quarter ended September 30, against a net loss after tax of Rs 22.69 crore in the corresponding period last year.

The total income rose to Rs 83.75 crore for the quarter under review, from Rs 63.51 crore in the second quarter of the previous fiscal, Wire and Wireless India Ltd (WWIL) said in a filing to the Bombay Stock Exchange.

On the standalone basis, the media firm reported a net loss from ordinary activities after tax of Rs 25.76 crore for the September quarter, against a net loss of Rs 27.12 crore in the corresponding period last fiscal.

The standalone total income of the firm rose to Rs 61.08 crore in the reviewed quarter, from Rs 50.04 crore in the same period a year-ago.

For six months ended September 30, the Essel group company announced a net loss of Rs 40.28 crore, while the net loss in the corresponding period last fiscal was at Rs 42.98 crore.

Subhash Chandra-led Wire and Wireless India Ltd is Zee's demerged cable television distribution company.

Shares of the company closed at Rs 12.05, down 524 per cent on the BSE.

MIC Electronics Q2 net up two-fold at Rs 25.56 cr

2008-10-20T22:15:00.000+05:30

Mumbai, Oct 20 : MIC Electronics today announced a consolidated net profit of Rs 25.56 crore for the second quarter ended September 30, more than two-fold growth over corresponding period a year-ago.

The company had a net profit of Rs 11.14 crore for the same quarter last year, MIC Electronics Ltd said in a filing to the Bombay Stock Exchange.

The consolidated total income of the company rose to Rs 99.38 crore in the quarter under review from Rs 87.38 crore in the year-ago period.

On the standalone basis, the company posted a net profit of Rs 23.44 crore for the September quarter of current fiscal, a more than two-fold per cent growth, against Rs 9.84 crore for the same period last financial year.

Shares of the company closed at Rs 50.65, down 594 per cent on the BSE.

Lanco Infratech to demerge subsidiary into 2 entities

2008-10-20T22:12:00.000+05:30

Mumbai, Oct 20 : Diversified firm Lanco Infratech on Monday said its subsidiary company Lanco Hills Technology Park Private Ltd (LHTPPL) would be demerged into two separate entities.

Lanco Hills Technology Park took a decision in this regard during the meeting of its board of directors, Lanco Infratech said in a regulatory filing to the Bombay Stock Exchange.

“With the demerger of LHTPPL, special economic zone (SEZ) business would be retained by the existing LHTPPL and the Non-SEZ business would be demerged into separate company,” the company said.

The demerger, which is subject to statutory approval, would be effective from April 1, 2008, it added.

Shares of the company were trading at Rs 132.90, down 3.10 per cent in the late afternoon trade on the BSE.

HT Media Q2 net dips 49 pc at Rs 16.28 cr

2008-10-20T22:10:00.000+05:30

Mumbai, Oct 20 : HT Media today announced a net profit of Rs 16.28 crore for the second quarter ended 30 September, a 49 per cent dip over the corresponding period a year ago.

The company had a net profit of Rs 31.94 crore for the same quarter in FY’08, HT Media said in a filing to the Bombay Stock Exchange.

Its total income rose 18.17 pc to Rs 334.17 crore for the quarter under review, from Rs282.77 crore in the year-ago period.

For the six months ending 30September, the media house reported a net profit of Rs53.98 crore, a decline of 18% compared with the year-ago period.

It had a net profit of Rs 66.10 crore in the same period a year ago. The total income during the six-month period rose to Rs661.40 crore, from Rs 559.11 crore in the same period last fiscal.

Founded in 1924, HT Media operates 19 printing facilities across India. Besides Hindustan Times and Hindustan, the company publishes Mint.

It also has a presence in electronic media through its subsidiary HT Music and Entertainment Company Ltd.

During the quarter, the company had pumped in Rs 12.50 crore by way of equity shares and advances in its subsidiary company Firefly-O-Ventures. It also gave Rs5 crore loan to another subsidiary -- HT Music and Entertainment Ltd.

The company had changed its accounting policy from 1April, 2008 to adjust the foreign exchange fluctuation on borrowings, the filing added.

HT Media was trading at Rs84, up 3.07 per cent in the late afternoon trade on the BSE.

Petronet LNG Q2 net dips 10 pc at Rs103.36 cr

2008-10-20T21:58:00.000+05:30

Mumbai, Oct 20 : State-run Petronet LNG announced a net profit of Rs 103.36 crore for the second quarter ended 30 September, a 10.51 per cent decline over the corresponding period a year-ago.

The company had a net profit of Rs 115.51 crore for the same quarter in FY’08, Petronet LNG said in a filing to the Bombay Stock Exchange.

The total income of the company declined to Rs1,654.92 crore for the quarter under review from Rs 1,670.50 crore in the year-ago period.

For the six months ending 30 September, the public sector energy firm registered a net decline of 6.4% at Rs209.01 crore against Rs 223.53 crore in the year-ago period.

While the total income in six months rose to Rs 3,300.77 crore, from Rs 3,221.52 crore in the corresponding period last fiscal.

Patel Engineering Q2 net up 20 pc at Rs 43 crore

2008-10-20T21:54:00.000+05:30

Mumbai, Oct 20 : Construction firm Patel Engineering today announced a consolidated net profit of Rs42.58 crore for the second quarter ended 30 September, up 19.84 per cent over the corresponding period a year-ago.

The company had a consolidated net profit of Rs35.53 crore in the same quarter in 2007, Patel Engineering Ltd said in a filing to the Bombay Stock Exchange.

The consolidated net sales of the company rose to Rs441.81 crore for the quarter under review from Rs338.77 crore in the year-ago period.

For the six month ended 30 September, 2008, the company posted a consolidated net profit of Rs77.57 crore, against Rs 62.57 crore a year ago, up 23.97 per cent.

On a standalone basis, the company posted a net profit of Rs33.49 crore in the September quarter as against Rs32.44 crore during the same period last fiscal.

The standalone net income of the engineering firm rose to Rs 309.18 crore in the Q2 of the current financial year from Rs 235.77 crore over the same period previous fiscal.

Shares of the company were trading at Rs170.90, down 3.66% in the afternoon trade on the BSE.