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Conference biz to push occupancy levels up: Royal OrchidsThe hotel industry suffered a huge jolt and remained under pressure since the financial crises rolled out. Commenting on the same, CK Baljee, Chairman of Royal Orchids, said, Bangalore saw a drop in occupancy due to general recession since June last year. He further said conference business was picking up and would push occupancy levels up.Source: Moneycontrol Top Headlines | 23 Jun 2009 | 5:00 pm Shree Renuka Sugars to increase sugar refining capacityShree Renuka Sugars will expand its existing sugar refining capacity at its Athani unit in Karnataka from 1,000 tpd to 2,000 tpd and set up sugar refining capacity of 1,000 tpd at its Havalga unit also in Karnataka. The plants are expected to be commissioned by December, 2009.Source: Moneycontrol Top Headlines | 23 Jun 2009 | 5:00 pm KEC International bags new orders worth Rs 110crKEC International Ltd. (KEC), a global leader in the power transmission EPC business and an RPG group company, has bagged three orders totaling to Rs 110 crore one of them in Peru, South America and the other two in the state of Chhattisgarh, India.Source: Moneycontrol Top Headlines | 23 Jun 2009 | 4:51 pm Oderbook at Rs 9,500 crore: BGR EnergyBG Raghupathy, CMD, BGR Energy Systems in an exclusive interview with CNBCTV18 said the companys current orderbook stood at Rs 9,500 crore. The top five clients are all state power generation companies whose projects have already been funded.Source: Moneycontrol Top Headlines | 23 Jun 2009 | 4:19 pm US sales at 75% vs 95% during IPO: Renaissance JewelleryWith respect to their IPO (initial public offering), Sumit Shah, MD of Renaissance Jewellery, said at the time of the IPO, 95% of their sales were coming from the US. Currently, he said, 75% of the revenues come from the US. He further said that the reason they have been able to stay profitable has essentially been gains in the market share.Source: Moneycontrol Top Headlines | 23 Jun 2009 | 3:59 pm Rupee ends four paise up against the dollarThe rupee bounced back from its early lows and ended four paise dearer at 48.56/57 against the US currency following a dramatic recovery in local stocks, and the dollar weakened against a basket of currencies overseas.Source: India Business News | Business News - Times of India | 23 Jun 2009 | 2:25 pm Tata Motors selects over 1.55 lakh Nano customersTata Motors on Tuesday said it has selected over 1.55 lakh customers for its small-car Nano which the company will start delivering from next month.Source: India Business News | Business News - Times of India | 23 Jun 2009 | 2:21 pm Mahindra Holidays IPO subscribed 20 pc on debut day - Economic Times
Source: Google News India - Business | 23 Jun 2009 | 2:15 pm Rupee recovers losses as dollar sales outweighNew Delhi: The rupee recovered from a drop to a five-week low on Tuesday, ending stronger as dollar sales by exporters outweighed concerns about the sustainability of capital inflows. The partially convertible rupee ended at Rs48.53/55 per dollar after falling to Rs48.90, its lowest since 15 May, in early deals, to be stronger than its previous close of Rs48.62/63. “With equity markets around the world tumbling, there is concern about dollar inflows,” a dealer with a private sector bank said. Indian shares fell 2% early on Tuesday as investor confidence across Asia was dented by renewed concerns about the global economy but pared losses to end flat. “The rupee ended up partly because of stocks rebound and it was a good level for exporters to sell,” said another trader. Foreign portfolio flows into stocks of about $7.5 billion since mid-March have been a key driver for the rupee, but the fall in the stock market since 10 June has weakened support. Dealers expect more dollar inflows when foreign funds invest in upcoming share sales by some Indian companies. A comment by a senior economic policy maker that a delayed monsoon would not affect the economy much also helped sentiment. One-month offshore non-deliverable forward contracts were quoting at 48.65/48.75, weaker than the spot rate. A dealer said the rupee was likely to trade in a 48.25-75 range over the next few days, with the market waiting for the release of the 2009-10 budget on 6 July. Analysts estimate the fiscal deficit will be revised up from a forecast of 5.5% of gross domestic product made in the interim budget in February, raising borrowing needs and keeping the pressure on interest rates. Source: Home - Livemint.com | 23 Jun 2009 | 2:06 pm Monsoon likely by Friday: Weathermen - Times of India
Source: Google News India - Business | 23 Jun 2009 | 1:56 pm Tech Mahindra to absorb Satyam at some stageMUMBAI (Reuters) - Tech Mahindra plans to absorb its new unit Mahindra Satyam to create a top-tier Indian outsourcing firm, the vice chairman of the two outsourcing firms said on Tuesday.Source: Reuters: Money News | 23 Jun 2009 | 1:51 pm Top private engineering colleges | Industrial unit lifts PSG CollegeCoimbatore: This college began with a story.Industrialist P.S. Govindaswamy Naidu had four sons, but while bequeathing his wealth to the next generation, he divided it into five parts instead of four. The fifth part, he said, was for “this brother”, a reference to the trust that manages PSG College of Technology—so goes the college legend.  “The industrial institute is a big strength in our college,” says R. Rajkumar, 20, a student who will graduate next year in mechanical engineering. “It is a rare combination anywhere in India where an engineering college and a company coexist in the same campus. The company is manufacturing pumps, motors and machine tools. The students can walk over any time and see the manufacturing processes,” says the current principal of the college, R. Rudramoorthy. The presence of the manufacturing facility on the campus enables the college to offer what are called sandwich courses, combining classes in theory with hands-on training. The five-year bachelor of engineering programmes are offered in mechanical, electrical and electronics, and production engineering. In these courses, students get trained in the factory for a few hours and attend class during the second half of the day. “I came to the college for the sandwich course because no other college offers a course along with industrial training. This gives more scope for getting a better job,” says Afrose Kamal, 22, who will graduate next year in electrical and electronics engineering. Kamal has converted a conventional Luna moped into an electric bike, without the use of an engine, by connecting the wheels to a motor using a belt. He says a senior training manager at the industrial unit helped the team of students who did this.  Partners in progress: The college operates as a public-private partnership, with a charitable trust funding the infrastructure, while the government pays the faculty and staff salaries. Babu Ponnapan / Mint “We have people from industries coming and setting up the laboratories,” says P.V. Mohanram, head of the mechanical department. Set up in 1956, it is one of the college’s oldest departments. “We have people like Festo of Bangalore, we have people like Rane of Chennai, and we have (the) Ashok Leyland people—they have set up their own laboratories in the department. So, what happens is all the state-of-the-art equipment which they are producing as well as what is being doled out in the market are made available to us.” Publicly listed Rane Holdings Ltd is the parent of the company that supplies auto parts to makers of passenger cars and tractors, among other industries. Festo Controls Pvt. Ltd makes pneumatic products, machines that work on compressed air. Ashok Leyland Ltd is India’s second biggest maker of trucks. Also See Top 50 Private Engineering Colleges (Rankings) The college operates on a unique public-private partnership model in which the state government provides aid to most of the courses offered in terms of salary payments to faculty and other staff while the building and infrastructure are financed by the management of the private trust. Money from two profit-making companies—PSG Industrial Institute and PSG Foundry, the latter a few kilometres from the college—as well as the surplus from tuition fees become part of the trust’s funds. The management consists of four principal trustees who are members of Govindaswamy’s family (one from the family tree of each son of Govindaswamy) and others appointed by the principal trustees for a five-year term. “All the trustees work without salary from the beginning. They have to come on their own, serve and then go; even transport—nothing will be paid,” says Rudramoorthy. “…They (the trust members) give full freedom to the heads of institutions to see that there is growth. They never interfere with the academic freedom of the institution. Their job is only to provide the infrastructure facilities and maintain the financial requirements. How we have to run the institution is decided by the academic faculty led by me.”  New challenge: Some students say teaching standards are falling. Babu Ponnapan / Mint R. Anathakrishnan and S. Sundhar, both final-year engineering students, utter the word almost simultaneously when asked about what attracted them to PSG—“Placements!” “People here never look at only jobs. A job is assured as far as PSG is concerned. They look for high-profile companies. Students look at jobs from three parameters—profile matching, brand and pay,” says R. Nadarajan, dean of placement and training. Despite the good hiring season, students say the declining quality of faculty members and infrastructure are concerns that need urgent attention. “The new faculty members joining our college do not teach very well. They pass out of their courses and join here as lecturers,” says a second-year student who did not want to be identified either by her name or her course. Rudramoorthy is upbeat about the future, and says he wants the institution to eventually compete with the elite Indian Institutes of Technology (IITs). “We always think we should overtake the IITs. It is a desire of every principal to see that my institution at least scores much better than IIT in (at least) one aspect and we did it in industry-institution interaction—because of the support of the management.” Source: LatestNews-Home - Livemint.com | 23 Jun 2009 | 1:47 pm Top medical colleges | Missionary vision inspires CMC VelloreVellore: At the Christian Medical College (CMC) in Vellore, Tamil Nadu, a rural stint after graduation isn’t an option that can be brush-ed aside. Two-year service in the villages is mandatory, and students have to sign up for it before they can join the institution. They also have to serve at hospitals in remote areas during their first three years in the college.  This kind of training is possible because of CMC’s unique structure. The college has a relationship with 225 Christian mission hospitals, all in remote and rural areas. This network, the students say, gives them the kind of training no other medical school can offer. “I think the level of exposure here…is not something that other colleges can compete with,” says Srujan Sharma, 22, an undergraduate student at CMC from Hyderabad. “We are sent to hospitals around the country...mission hospitals where we actually see grass-roots medicine being practised. This is not something that I have heard of in other colleges.” CMC’s admission system reflects the school’s relationship with the church. The college admits only 60 students a year for its undergraduate programme; it boasts a student-teacher ratio of 12:1. Of the 60 seats, 50 are reserved for Christian minorities; and of the remaining seats, two are reserved for the Scheduled Caste and Scheduled Tribe categories, and one is reserved for a government nominee. Also See Top 30 Medical Colleges (Rankings) The Christian Medical College Vellore Association, a registered society formed by 60 churches across the country, manages the medical school and the hospital associated with it. The churches nominate eligible students for training. The students, in turn, sign a legal document promising two years of rural work after graduation. Students in the open category were earlier excluded from the mandatory two-year rural service, but they too have to agree to the stint now.  Fair treatment: Around 70% of the alumni of Christian Medical College, Vellore, are working in India, 80% of them in remote areas, according to the school’s statistics. Babu Ponnapan / Mint Around 70% of CMC’s alumni are working in India, 80% of them in remote areas, according to statistics provided by the school. One of the most striking features of this medical school, 7km from the heart of Vellore, is the low tuition fee. Each student pays around Rs3,000 a year. A part of the hospital’s income is also diverted to the school. The hospital also subsidizes treatment, charging the poor 50% of actual expenses
Of its total income of Rs252.71 crore in 2007-08, Rs49.88 crore went towards treatment subsidies for the poor and Rs26.85 crore towards education subsidies—an average of Rs4.68 lakh per student. George Mathew, CMC’s principal, says the school’s values come from Ida Sophia Scudder, an American missionary and doctor who, moved by a lack of medical facilities for women in Vellore a century ago, decided to set up a hospital-cum-medical training institute. Scudder was in India to take care of her ailing mother—her parents were Christian missionaries. During her stay, she was witness to women dying during childbirth owing to a lack of medical attention. The local culture barred male doctors—including Scudder’s father—from attending to pregnant women. This inspired her to study medicine in the US and return to Vellore, where she set up a single-bed clinic. Until the 1950s, CMC was closely associated with foreign churches and voluntary agencies that contributed funds. Then, the institution was transferred into the hands of Indian churches and voluntary bodies. “From then on, the attempt has been to be self-sustaining because we knew that external fund source(s) would become less and less. Now, we are fully self-sustaining,” says Mathew. In an era when medical costs can sometimes be exorbitant, CMC manages to provide subsidized healthcare to a significant percentage of its patients. Mathew attributes this to four factors: a large number of patients, cost-cutting, no unnecessary medical investigations and modest salaries for staff. The students say the faculty is always accessible. “We get a lot of attention (from the faculty members),” says Nalini Newbigging, a 19-year-old student. “The teachers live on campus, so we can interact with them any time we want to,” says another student, Anna Paul, also 19. It’s the “foster family” concept at work. Each faculty member takes care of two-three undergraduate students and the student becomes a “foster child” of that faculty member. “Each one of us in every batch...we are actually taken care of by the staff like we are their own children,” says Aleena Jana, who will graduate next year. Many of the faculty are former CMC students themselves. John Jude, associate professor in the department of microbiology, decided to stay back at CMC after his postgraduation because of the “work ethos”. “There were no vacancies when I passed out in 1999, but (I) came back in 2004. There is job satisfaction here. What we take for granted here are considered great outside; what we consider routine and normal here is very difficult to get down elsewhere. I can say this because I have worked in other places as well,” he says. Source: LatestNews-Home - Livemint.com | 23 Jun 2009 | 1:47 pm Swiss Sarasin group to enter Indian marketDubai: Swiss private bank, Bank Sarasin & Co, today announced its entry into the Indian market and said that it would open offices in Mumbai and Delhi on July 1. The group’s first presence in the country is incorporated as Sarasin-Alpen (India) Private Limited, which is a non-fund based non-banking financial company (NF-NBFC), a press release issued here said. The new operation would provide financial advisory and consultancy services to wealthy private clients in India and distribute select prime third-party products such as mutual funds. Various agreements have been established with organisations in India to enable Sarasin-Alpen (India) to distribute its funds and portfolio management services, the release said. “As the sustainable Swiss private bank, we look forward to providing innovative financial advisory solutions matching the requirements of our discerning and growing Indian client base,” Bank Sarasin & Co, Switzerland, CEO, Joachim H Straeble, said. “The Indian markets have shown early signs of recovery and India will become one of the world’s economic engines. Hence, it is a very important market for us and we have strengthened our presence in India through this launch,” the bank’s head of private banking, Fidelis M Goetz, said. The Sarasin group’s majority shareholder is the AAA-rated Dutch Rabo bank. “The Sarasin group has its roots as a boutique bank and is committed to providing its top-quality products and services to a growing number of wealthy private clients,” the release said. The launch of the operations in India and the opening of the new offices in Mumbai and Delhi mark the Sarasin group’s commitment to expanding its presence in south Asia and the next stage in the successful implementation of the group’s international growth strategy, it added. Source: LatestNews-Home - Livemint.com | 23 Jun 2009 | 1:42 pm Top govt engineering colleges | IIT-B cheers research, start-upsMumbai: In August 2007, two engineering students of the Indian Institute of Technology, Bombay, or IIT-B, walked up to their professor and dropped what most would consider a bombshell. “We want to build a satellite,” they said. While an average professor might have been taken aback, at IIT-B, the proposal by Saptarshi Bandopadhyay and Shashank Tamaskar, third-year students of the aerospace department, aged 21 and 22, respectively, at the time, was dealt with like any other project request.  Months of work, research and consultations later, the now 50-member team of students is well on its way to building the institute’s first student satellite, Pratham, and signing a preliminary agreement with the Indian Space Research Organisation to provide them with funds to the tune of Rs1.5 crore. “All kinds of exploration, academic or extra-curricular, is encouraged,” says Rohit Manchanda, faculty member and author of Monastery, Sanctuary, Laboratory: 50 years of IIT Bombay
. He adds that the liberal attitude and encouragement offered to students is one area where “IIT Bombay might steal a march over the others”. Known for its illustrious faculty and alumni, lavish cultural festivals and a smattering of Silicon Valley-funded start-ups, IIT-B has long been considered the most glamorous of the IITs. For many years now, it has attracted some of the best students, faculty and recruiters. At least 50% of the students in the top 100 list in the high-stakes Joint Entrance Exam (JEE) usually pick IIT-B, adding to its stature as a Mecca for aspiring engineers. Also See Top 50 Government Engineering Colleges (Rankings) IIT-B didn’t start off with this advantage, explains Manchanda. At its inception in 1958, it was set up with financial aid from the then Soviet Union through the United Nations Educational, Scientific and Cultural Organization, or Unesco.  Creative licence: Students on the IIT Bombay campus. The school encourages entrepreneurship through organizations such as the Society for Innovation and Entrepreneurship, or SINE. Abhijit Bhatlekar / Mint Mumbai, which by then had developed into a financially vibrant city, offered IIT-B the opportunity to evolve. “The aura and ethos of the city, of the time, also spilled into the institute, making it one of the most democratic and least hierarchical institutes of the lot,” says Manchanda. Compared with the other IITs, IIT-B is considered less rigid and hierarchical, and has the widest mix of faculty from all over the country. “Our greatest strength is our faculty,” says Devang Khakhar, who took over as IIT-B director early this year. “It’s an egalitarian place, so you could join as an assistant professor, but each is as independent as the next.” If anything needs to be done on campus, committees are formed and the opinion and experience of several people is relied upon to reach a consensus. The committees could look into everything from a change in the curriculum to ensuring that certain campus residents, such as stray cattle, do not venture into class. Unfortunately, the “cattle committee” hasn’t been able to sort that one out yet. While the infrastructure and academic excellence at all the IITs, endowed with the status of “institutes of national importance” through an Act of Parliament, is fairly uniform, there are some things that set the 51-year-old institute apart: its liberal, egalitarian way of functioning; research facilities; mammoth cultural and technical events; geographical location—it is located in the country’s financial capital, nestled between two lakes, and with a national park in its backyard—and, among other things, a willingness to embrace change that could benefit students and industry. Also See Placement details of some top engineering colleges: 2009 (PDF) “It’s more forward-looking and liberal than most other institutes,” says Khakhar. For instance, the institute changed the curriculum for the undergraduate programme in 2007. Under the new system, students can choose to do a minor in a subject of their choice or take an honours course in their own subject, in addition to their main degree. So instead of cramming 25-30 courses under one discipline, they now have the option to study 20 compulsory courses and take up to eight courses from another discipline. A minor is awarded on the completion of five courses under this option. Should a student wish to take up specialized courses in his own department, he will be awarded honours along with the main degree. So, a student of mechanical engineering could graduate with a degree in mechanical engineering and a minor in math, or an honours in mechanical engineering.  All-rounders: Saurav Agarwal (left) and Jaideep Bansal. Agarwal, 20, is the guitarist and back-up vocalist for 7 Spokes, a rock band. Bansal. 21, is the band’s drummer. Abhijit Bhatlekar / Mint No surprise then that at the recently concluded post-JEE counselling session, a large number of new students made enquiries about the curriculum, says A.K. Pani, chairman, JEE-2009, IIT-B. But some queries raised at the session are of concern: Which department is best for cracking CAT (the Common Admission Test for the Indian Institutes of Management, or IIMs)? Which is the best course for higher education and, more importantly, a good pay packet? Both questions indicate that IIT-B is seen as a means to an end: a seat in the IIMs or a good salary. IIT-B’s location in Mumbai makes it the first port of call for recruiters, considering many of the industries that hire engineers, such as telecom, finance, consulting, automobiles and process manufacturing, are based here. The location and easy accessibility make it a popular choice for guest lecturers as well, especially those who may be passing through India, and for faculty. “Beyond the natural locational advantage of being in the industrial and commercial capital, another aspect that sets IIT-B apart is the fact that it has strong industry linkages,” says Rangan Banerjee, a professor in the department of energy science and engineering. For instance, Banerjee and his colleague K.J. Nayak are setting up a solar thermal power station that is funded by a consortium of industry players, including Tata Power Co. Ltd. IIT-B also has adjunct faculty from industry, making up approximately 10% of the institute’s 470-strong faculty. “This is extremely helpful as students get to know of current industry practices,” says Khakhar. This year, the institute will launch a customized postgraduate programme in technology for employees of auto parts maker Bharat Forge Ltd. Designed by IIT-B faculty in consultation with scientists and engineers from the company, the two-year course will meet the need for engineering talent within the company and encourage efficiency in processes, innovation and product development. IIT-B’s superior research and development facilities also tend to be a big draw for faculty as well as students—at least 80% of the faculty is involved in research. It is one of the few institutes in the world to house state-of-the-art research facilities related to nano-electronics, electronic devices that are so small they function at a molecular level. The institute received in excess of Rs107 crore between April 2007 and December 2008 for sponsored research. Of all the creatures that trawl the IIT campus in Mumbai— leopards and crocodiles from the nearby national park and cattle included—one expects most often to find the archetypal nerd, the kind who spends every waking moment poring over books and research papers. Jaideep Bansal, 21, and Saurav Agarwal, 20, hardly fit the description, though: They don’t cut class, but notes are usually photocopied from the anointed note-taker in class. They’re fairly happy to maintain above-average scores, while pursuing other interests. “You can’t be one-dimensional all your life,” says Agarwal, guitarist and back-up vocalist for 7 Spokes, a rock band that was formed on campus. “When companies come to campus, they also want bright, well-rounded personalities who can also go on to represent them, not just geeks and nerds,” he adds. Bansal, the drummer of the band, who has lived “all over India” thanks to his father’s postings in the army, picked IIT-B because he had “never been here”. Now, as part of a band that is looking to go professional, and marketing head for IIT Bombay Racing—a student group that has built its own racing car and an all-terrain vehicle—Bansal is happy juggling various interests. “IIT Bombay throws opportunities at you, it’s up to you to grab them.” The cultural scene on campus also tends to encourage students to do more than just study. Mood Indigo, one of the biggest cultural student festivals in India, manages sponsorships worth Rs1 crore now. Beyond this, the institute has at least 70 other cultural programmes through the year, including an inter-hostel festival called the Performing Arts Festival (PAF), where students are responsible for everything from live acts and production to building sets and design. Last year, a PAF production featuring a replica of the Golden Temple in Amritsar required the actor to jump off the structure into a pond, all of which was created by the students. According to popular campus folklore, Nandan Nilekani, IIT-B alumnus and chief executive and managing director of software services firm Infosys Technologies Ltd, has often attributed his leadership and management skills to his experience in organizing Mood Indigo. There is lobbying for a reduction in cultural activities, out of concern that students today do not have the academic drive of their predecessors, who were passionate about extra-curricular activities but also managed to maintain a firm focus on academics. “There is some concern…so some of the events will have to be put on the chopping block this year,” says Rahul Gaur, general secretary for cultural affairs. Another thing IIT-B has come to be known for is its entrepreneurial set-up. Over the last few years, SINE—the Society for Innovation and Entrepreneurship— has earned a name for itself as one of the top incubators in the country. It has now taken on the task of helping other institutes set up their own incubators. Unlike its counterparts at IIT Madras or the IIMs in Bangalore and Ahmedabad, SINE is not open to outsiders but is aimed at IIT-B graduates, alumni and faculty. The institute wants to help commercialize research and turn projects into businesses. SINE is run as a not-for-profit organization chaired by the director of IIT-B, and its board comprises an equal number of faculty and industry members, including venture capital fund Seedfund managing partner Pravin Gandhi and Mastek Ltd chairman Ashank Desai. The 32 companies incubated were started by faculty, former students or a combination of both. A majority of the faculty members hold doctorate degrees and specialize in one aspect of their discipline. Here, they can further their research and even turn it into a business. Take the case of start-up Sedemac Mechatronics Pvt. Ltd, which developed an electronic control unit for fuel injection in smaller engines, to be used in two- or three-wheeler vehicles. The new product promises to reduce fuel consumption by 10-15% and cut emissions by up to 70%. The company recently received seed funding of $500,000 (around Rs2.4 crore) from Nexus India Capital, a Mumbai-based venture capital fund. “The Indian market is not ready to absorb semi-proven work, neither are business houses. So, it made sense to go through SINE and see the project to its logical end by creating a viable company with paying customers,” says Shashikant Suryanarayanan, founder and director, Sedemac Mechatronics, who founded the team with three students. While the institute is well on its way to improving research and development facilities, some of the key challenges it faces are the same that technical institutes across the country face. “The challenge for us is to attract outstanding faculty,” says Khakhar. The ratio of faculty to students is 1:13 at IIT-B, compared with the 1:10 mandated ratio. Among the other key challenges facing the institute is building additional infrastructure to cope with the 54% increase in student capacity owing to caste-based reservation policies. Source: LatestNews-Home - Livemint.com | 23 Jun 2009 | 1:42 pm Idea inks Rs.145-crore deal with Firstsource - Sify
Source: Google News India - Business | 23 Jun 2009 | 1:34 pm India imposes safeguard duty on aluminium products from ChinaNew Delhi: India has imposed up to 30% duty on import of key aluminium products from China to protect the domestic industry against cheap shipments. The department of revenue has notified 12-14% duty on aluminium flat sheets, primarily used by sectors such as auto and construction, and 25-30% duty on foils, widely consumed by the packaging industry. The duty would be effective retrospectively from 23 March, 2009, for two years. “Increased import of aluminium flat rolled products and aluminium foil into India from People’s Republic of China had caused and threatened to cause market disruption to domestic industry ... this had necessitated the imposition of provisional safeguard duty on import,” the department of revenue said in the notification. The Directorate general of safeguards in January initiated a probe into cheap arrival of aluminium products after the domestic industry had filed a petition for levying the duty against import from China. Safeguard duty is a WTO-compatible temporary measure that is brought in for a certain time-frame to avert any damage to domestic industry from cheap imports. Source: LatestNews-Home - Livemint.com | 23 Jun 2009 | 1:32 pm Swish Bank Sarasin enters Indian market - Economic Times
Source: Google News India - Business | 23 Jun 2009 | 1:29 pm Gold fall further, Rs 14484/10 gmPrices of gold declined further by Rs 45 per 10 grams to Rs 14,485 on the bullion market here on Tuesday in the absence of local demand amid lower global advices.Source: India Business News | Business News - Times of India | 23 Jun 2009 | 1:27 pm Sensex ends little changed - Economic Times
Source: Google News India - Business | 23 Jun 2009 | 1:23 pm CPI follows WPI with a lag, will fall: Montek - Hindu Business Line
Source: Google News India - Business | 23 Jun 2009 | 1:19 pm Services price index in offingNew Delhi: The government is working on an index to measure rise in prices within the services sector that includes telecom, banking and aviation sectors. “We have identified 8-10 sectors which forms part of the Services Price Index ... sectoral study has been done,” official sources said. The price index will include sectors such as telecom, transportation, banking, insurance, ports and aviation, sources said. The practices adopted by the developed countries, particularly by the US, the UK, Australia and Japan, in compilation of services price indices with particular reference to concepts, scope and coverage, methodology for identification of representative services and index calculation has been reviewed. Pilot project has started, sources said, adding that consultants have been appointed by the commerce ministry which has collected data for 2003-07 period. The process of post 2007 data collection is going on and after the comprehension of data it would be presented to the working group headed by Planning Commission member Abhijit Sen, sources said. Last year, the Department of Industrial Policy and Promotion (DIPP), the ministry of commerce and industry constituted an expert committee to render technical advice for development of Services price index and its related issues. The committee headed by C P Chandrasekhar of Centre for Economic Studies and Planning, Jawaharlal Nehru University provided guidance in the context of concept, methodology, coverage, related aspects and other important issues for the Services Sector Index. Source: LatestNews-Home - Livemint.com | 23 Jun 2009 | 1:16 pm Tata Motors: 55,021 applicants retain Nano bookingMUMBAI (Reuters) - Tata Motors, India's largest vehicle maker, said on Tuesday that 55,021 applicants for its Nano who missed out on an allotment of the first 100,000 units of the small car had retained their bookings.Source: Reuters: Money News | 23 Jun 2009 | 1:14 pm Dalit man beaten to deathA Dalit man was allegedly beaten to death during a group clash over a property-related issue in the district.Source: Daily News & Analysis: Money News | 23 Jun 2009 | 1:14 pm Worst may be over for the economy - MontekMUMBAI (Reuters) - The worst is over for the economy and a higher-than-normal fiscal deficit should not be a concern for interest rates, Planning Commission Deputy Chairman Montek Singh Ahluwalia said on Tuesday.Source: Reuters: Money News | 23 Jun 2009 | 1:06 pm Cong looking to monsoon for electoral harvest in four statesThe southwest monsoon, which has been playing truant so far, has thrown the party leadership into a dilemma.Source: Daily News & Analysis: Money News | 23 Jun 2009 | 1:05 pm RNRL invites RIL for talks on gas supply - Business Standard
Source: Google News India - Business | 23 Jun 2009 | 1:02 pm Bharati Shipyard to revise open offer for Great Offshore - Reuters India
Source: Google News India - Business | 23 Jun 2009 | 12:56 pm Two witnesses refuse to identify Salem in fake passport caseA day after five witnesses refused to identify Abu Salem in a fake passport case, two more witnesses today did the same in the court.Source: Daily News & Analysis: Money News | 23 Jun 2009 | 12:52 pm Nooyi, Narayen among 25 top gun CEOs in US: ForbesNew York: Two India-origin persons — Indra Nooyi and Shantanu Narayen — have been named among the top 25 chief executive officers in the US, who kept their companies on success path despite challenging economic conditions, according to Forbes magazine. Adobe System’s chief executive officer Shantanu Narayen and beverage major Pepsico’s Indra Nooyi have been ranked at the 16th and 17th places, respectively in the list of 25 ‘top gun CEOs´for 2009 who kept their firms thriving amid the recessionary situation. “This past year has given top executives many reasons to be nervous about whether their firms will stay alive, let alone turn a profit. But some executives did more than just get through hard times and some put their companies on the path to success,” Forbes said. The list is topped by business solutions provider Automatic Data Process’s Gary C Butler and the magazine said he was “extremely strong at strategic planning and overall execution.” About Nooyi, the magazine said, she had the right long- term strategic vision and had executed very well. “PepsiCo dominates the markets it operates in. She runs the business carefully, in good times and bad,” Forbes said. About Narayen, Forbes said that he had been in the industry for a very long time and “always has a strong sense of what the next key steps are in terms of positioning the company.” The list also includes Hewlett-Packard’s Mark V Hurd, Walt Disney Co’s Robert A Iger and Procter & Gamble’s Alan G Lafley among the top 25. The Forbes report said an advisory agency, Brendan Wood International, had ranked the top 25 chief executive officers for 2009 based on their ability to make smart acquisitions, make themselves visible and expand the company’s value propositions, among other things. Investors can make better long-term investment decisions depending on their confidence in the company’s chief executive and management team, Brendan Wood said. About 317 US companies were reviewed by 2,500 asset managers to determine the ‘Top Guns´ chief executive officers were ranked quantitatively and qualitatively with data from this past year. The magazine said only three of this year’s top executives had made to the list previously. They are Andrew Gould of Schlumberger, Nicholas Chabraja of General Dynamics and Mark Hurd of Hewlett-Packard. Source: LatestNews-Home - Livemint.com | 23 Jun 2009 | 12:50 pm MySpace to cut two-thirds of global workforceNEW YORK (Reuters) - MySpace, the social networking website owned by Rupert Murdoch's News Corp, said on Tuesday it plans to cut about two-thirds of its international workforce and close at least four of its offices outside the United States.Source: Reuters: Money News | 23 Jun 2009 | 12:47 pm India, China most favoured countries for FDI: IIM presidentIndia and China have been the most sought after countries for foreign direct investment, said IIM president L Pugazhenthy here.Source: Daily News & Analysis: Money News | 23 Jun 2009 | 12:44 pm HDFC to cut rates if cost of funds fallMUMBAI (Reuters) - Housing Development Finance Corp, India's top mortgage firm, will cut lending rates if its cost of funds come down, its chairman said on Tuesday.Source: Reuters: Money News | 23 Jun 2009 | 12:41 pm Bharati Shipyard to revise open offer for Great OffshoreMUMBAI (Reuters) - Shipbuilder Bharati Shipyard Ltd will revise its open offer for Great Offshore Ltd, its managing director P.C. Kapoor told reporters.Source: Reuters: Money News | 23 Jun 2009 | 12:41 pm LIC sees 400 bln rupees investment in stocks in FY10 - Reuters India
Source: Google News India - Business | 23 Jun 2009 | 12:40 pm MySpace to cut 300 international positionsBy Los Angeles: Social-networking site MySpace said on Tuesday that it will cut 300 international positions and close at least four offices outside the US as it looks to cut costs and narrow its territory coverage. The move comes a week after the company said it would cut nearly 30% of its US work force in a bid to become more efficient. “As we conducted our review of the company, it was clear that internationally, just as in the U.S., MySpace’s staffing had become too big and cumbersome to be sustainable in current market conditions,” chief executive Owen Van Natta said in a statement. He rejoined the company in April. The News Corp. division has been trying to bring its staffing level more in line with its more popular rival, Facebook. Recent data from tracking firm comScore shows Facebook has caught up with MySpace in monthly US visitors for the first time. MySpace has had difficulty growing its user base, which stands at about 125 million worldwide. Meanwhile Facebook has said that its usage has doubled to more than 200 million in less than a year. Beverly Hills, California-based MySpace plans to trim its international work force to about 150 employees from the current 450 employees and said it will have to consult on the plan with international workers in some countries. The company says the restructuring applies to all of its international units and will leave London, Berlin and Sydney as its primary international hubs. Offices in Argentina, Brazil, Canada, France, India, Italy, Mexico, Russia, Sweden and Spain will all be looked at for potential reductions. MySpace China and a joint venture in Japan will not be affected by the restructuring. In the US, MySpace plans to cut approximately 420 employees, bringing the total number of US staff to 1,000. As of May, Facebook had about 850 employees worldwide, the vast majority in the US. Source: LatestNews-Home - Livemint.com | 23 Jun 2009 | 12:28 pm Personal astrology just a call away58888 Voice has introduced Live Astrology service to Airtel mobile subscribers. Consumers can call 58888999 and get answers from a panel of renowned astrologers.Source: India Business News | Business News - Times of India | 23 Jun 2009 | 12:26 pm European stocks flat, UBS shinesFrankfurt: European shares were flat on Tuesday, having briefly turned negative amid doubts about the timing of a return to economic growth, which sent stock markets in the United States and Japan sharply lower. UBS shone, rising 3.1% after the New York Times reported the US Justice Department may drop a case aimed at forcing the Swiss bank to reveal the names of 52,000 wealthy American clients suspected of tax evasion. At 3:35pm, the pan-European FTSEurofirst 300 index of top shares was down 0.1% at 836.68 points, having fallen as much as much as 0.7% earlier in the session. The European benchmark index ended 2008 at 831.97 points US stocks saw their worst one-day loss in two months on Monday and Tokyo stocks fell almost 3% on Tuesday. “After the massive three-month rally that sent all major indexes significantly higher, we are now in the middle of the long-awaited pullback,” Close Brothers Seydler said in a note. “Market participants start to realise that the recovery in the economy and earnings is unlikely to be as strong as the rise in stock prices since early March.” Despite its recent drop, the European benchmark index is up around 30% from the record low set in early March. “The pattern of the equity rally so far fits the traditional template of a sharp rise and a ‘stall´ period,” Goldman Sachs said in a research note. “Q2 will be a contractionary quarter and the forward indicators do not suggest positive growth in the (United States, Europe and Japan) until Q3,” Goldman Sachs said. Euro zone purchasing managers index (PMI) data on Tuesday showed that a recovery from the recession stalled in the services sector in June while manufacturing fared slightly better. Insurers were weak, with AXA down 1.9% and ING Group falling 1.3%. Shares in Anglo American fell 2.3% after the mining group rejected a merger proposal from rival Xstrata. Xstrata shares fell 1.3%. Anglo American trimmed some early losses after dealers cited market talk of bid interest from China’s state-owned Chinalco. Both Chinalco representatives in London and officials from Anglo American declined to comment. Utilities E.ON, up 1.3% and Iberdrola, up 1.5%, drew strength from a JPMorgan sector upgrade to “overweight” from “underweight”, citing “a likely pickup in power prices, a potential rebound in economic activity, improved valuations and a relatively benign network price regulation”. The London-listed shares of Thomson Reuters Corp gained 5.4% on news that the data publishing and financial information group, which is also listed in New York, plans to withdraw its shares from the London Stock Exchange. Also among the winners, mobile phone maker Nokia advanced 1.7% after Credit Suisse raised its target price for the stock to euro 14 from 12, citing in a note “increased confidence on margins”. Eyes will also be on the US Federal Reserve central bank, whose Federal Open Market Committee (FOMC) begins its two-day meeting on interest rate policy. Source: Home - Livemint.com | 23 Jun 2009 | 12:24 pm Satyam Names Gurnani Chief as Mahindra Rebuilds Company After ... - Bloomberg
Source: Google News India - Business | 23 Jun 2009 | 12:23 pm Sarasin Group enters Indian marketSwiss private bank, Bank Sarasin & Co,announced its entry into the Indian market and said that it would open offices in Mumbai and Delhi.Source: Daily News & Analysis: Money News | 23 Jun 2009 | 12:19 pm India's Gen X & Y ranked last in risk appetiteIndia's X & Y generations, aged between 20 and 40 years, have the lowest risk appetite compared to their counterparts in seven other countries in the Asia-Pacific region.Source: Daily News & Analysis: Money News | 23 Jun 2009 | 12:17 pm Mahindra Satyam announces leadership team, Gurnani headMumbai: Tech Mahindra today appointed C P Gurnani CEO of Mahindra Satyam and S Durgashankar the new chief financial officer (CFO) with immediate effect. Gurnani succeeds A S Murthy who was appointed by the government board after the multi-crore rupee scam broke out in the then Satyam Computer Services. Gurnani had been heading the global operations of Tech Mahindra. The new CFO Durgashankar was earlier senior vice- president (M&A) for Mahindra Group. The post of CFO has been vacant since former Satyam CFO Vadlamani Srinivas was arrested for his alleged role in the financial fraud in Satyam. Announcing the new appointments here, Mahindra Satyam executive vice-chairman Vineet Nayyar said Satyam has been a leader in the telecom technology space but there is still a huge growth potential. Gurnani will be responsible for exploring the telecom technology space, Nayyar added. Meanwhile, Tech Mahindra strategic initiatives head Sanjay Kalra has been promoted as the new CEO of the company. Tech Mahindra had acquired 31% in Satyam through an open auction for over Rs1,700 crore. It has also come up with an open offer for additional 20%. Last Sunday, Tech Mahindra rebranded Satyam as Mahindra Satyam. Source: LatestNews-Home - Livemint.com | 23 Jun 2009 | 12:05 pm ADB pledges $2 million to Orissa development projectsManila: Sharecroppers, women and other marginal farmers in Orissa will get $2 million under an Asian Development Bank project, aimed at increasing the income of extremely poor in the state by 20%. The project will be carried out in several parts of Orissa, where over 40% of the population lives below the poverty line, most of them in rural areas. The ADB has approved a grant of $2 million from the Japan Fund for poverty reduction for the capacity building and livelihood enhancement of poor water users. The project will fund capacity building and skills programmes, that support the development of new sustainable livelihood and income opportunities in areas like agro-processing, animal husbandry, fish farming and high value crop production. It will also conduct training and awareness activities for water user groups as lack of land and resources and little access to irrigation have left many rural dwellers in Orissa eking out a subsistence living from agriculture, ADB said in a statement. The target is to increase the incomes of the extremely poor in project areas by 20% and increase the membership of women in user group by 30% by the third year of activity, NAM news network said. ”This pilot intervention, which focuses on capacity building and livelihood improvement will help increase on- and off-farm income as well as the equal participation of vulnerable groups in the formation and management of water user associations,“ Susanne Nebel, Rural Development Specialist in ADB’s South Asia department, said. The project complements the ADB-financed, Orissa Integrated Irrigated Agriculture and Water Management Investment Project, which is renovating and extending irrigation and associated infrastructure, in four major river basins in the state as part of broader national government efforts to bridge the country’s growing urban rural divide. Source: LatestNews-Home - Livemint.com | 23 Jun 2009 | 11:58 am Govt to allow 26% foreign investment in pension sectorThe government is considering allowing 26% foreign direct investment (FDI) in pension sector as part of reforms in the area.Source: India Business News | Business News - Times of India | 23 Jun 2009 | 11:52 am Gold tumbles by Rs 160 on global cuesGold, which normally moves in tandem with the global market, fell 9.46 dollar to 913.24 dollar an ounce, the lowest since May 12, in LondonSource: Daily News & Analysis: Money News | 23 Jun 2009 | 11:46 am Patchy monsoon may hurt economic recoveryNEW DELHI (Reuters) - A patchy start to India's annual monsoon has raised doubts about a nascent economic upturn, as the poor rainfall in June could hurt growth, push up food prices and prompt more government spending to support farmers.Source: Reuters: Money News | 23 Jun 2009 | 11:44 am Bajaj Auto sees strong sales in second halfNEW DELHI (Reuters) - Bajaj Auto Ltd, India's second-largest motorbike maker, expects monthly sales will double in the second half of the fiscal year to March from a year earlier, helped by the launch of two new models.Source: Reuters: Money News | 23 Jun 2009 | 11:37 am Markets end flat recovering from morning lowsMumbai: Indian shares rebounded from an early slide and ended little changed on Tuesday, propelled by gains in energy giant Reliance Industries and explorer Oil and Natural Gas Corp. Still, the market’s undercurrent was weak as worries that the nascent recovery in the global economy has been priced into equity markets worldwide hit investor confidence across Asia. “Valuations in the market are not cheap. To justify such prices, the government needs to come out with big-bang reforms,” Gopal Agrawal, head of equity at Mirae Asset Global Investment Management (India), said. The 30-share BSE index ended down 0.02%, or 2.21 points, at 14,324.01, after falling 2.2% at one stage. Seventeen stocks declined. The 50-share NSE index rose 0.3% to 4,247. But Reliance Industries, which has the most weight in the index, rose 3.3% to Rs2,016.05 after falling 17.2% since last Monday when it received an unfavourable court ruling on gas supplies. It was helped after the head of NTPC Ltd said the utility was open to buying Reliance’s gas at $4.2 per million metric British thermal unit except for the plants under dispute in a court. NTPC shares rose 2.5% to Rs195.85. Oil and Natural Gas Corp gained 3.3% to Rs1,026.45 after the Economic Times said the state-run explorer struck oil and gas in three new blocks. The major losers were private-sector lenders ICICI Bank and HDFC Bank, engineering and construction firm Larsen & Toubro and diversified cigarette maker ITC Ltd. The benchmark index had dropped 7.4% in the previous eight sessions as investors took profits on a 14-week, 83% rally that was halted last week on concerns about rising valuations. Foreign funds, which had pumped almost $8 billion into the market since mid-March through 12 June when the benchmark hit a 2009 high, pulled out more than $350 million last week. Still, expectations for reforms such as relaxation of foreign investment rules in the insurance and pension sectors and stake sales in state-run firms when the government announces the budget on 6 July should provide support, analysts said. “There is not much scope for the market to fall much more,” said Amitabh Chakraborty, president of equities at Religare Securities. “A lot of the stocks like Reliance have been oversold over the past week.” Other Asian indexes fell steeply, with Japan’s Nikkei and the MSCI’s measure of other Asian markets each sliding 2.8%. US stocks suffered their worst one-day loss in two months on Monday in a broad-based sell-off, as investors reconsidered the health of the economy. A recovery from a severe recession in the euro zone’s services sector stalled in June as consumers remained nervous, but factories fared better as they ran down stocks, key surveys showed on Tuesday. ICICI Bank fell 4.1% to Rs697.45, while ITC slid 3.1% to Rs196.50. HDFC Bank dropped 3.6% to Rs1,485.55, while Larsen eased 1.6% to Rs1,485.95. In the broader market, losers led gainers 1,466 to 1,123 on relatively moderate volume of 405.5 million shares. Source: Home - Livemint.com | 23 Jun 2009 | 11:37 am New gas pricing formula difficult to implement: TulsianAnalyst SP Tulsian said implementing the new gas pricing formula would be difficult for the government to implement. \"When it comes to the NELP and the discoveries that have been awarded, I dont think its even legally tenable for it to change the pricing formula.\"Source: Moneycontrol Top Headlines | 23 Jun 2009 | 11:35 am Reliance, ONGC help Sensex beat fall in other Asian indicesMUMBAI (Reuters) – The BSE Sensex rebounded from an early slide and ended little changed on Tuesday, propelled by gains in energy giant Reliance Industries and explorer Oil and Natural Gas Corp.Source: Reuters: Money News | 23 Jun 2009 | 11:32 am Pantaloon's May sales up 14 pc, to open nine malls by Dec-endPantaloon Retail India has clocked over 14 per cent year-on-year sales growth in May from its value, home and lifestyle retailing segments.Source: Daily News & Analysis: Money News | 23 Jun 2009 | 11:26 am Gold prices lower on poor demandMumbai: Indian spot gold prices fell on Tuesday on lack of demand, dealers said. “Demand remained almost nil...some deals in scraps (scrap gold) is happening,” said a dealer with a private sector bank. Gold demand is diminishing as the wedding season is about to end this week. Domestic gold futures were trading lower tracking weakness in international gold, analysts said. International gold prices fell to a six-week low on Tuesday, with firmness in the dollar sapping demand as investors awaited the Federal Reserve’s two-day policy meeting starting later in the day and its economic outlook. A globally strong dollar weighs on the precious metal’s price as much of the country’s gold is imported and paid for in the US currency. A strong dollar may also dampen its attraction as an alternative investment. Domestic gold futures mirror international prices, analysts said. Source: Home - Livemint.com | 23 Jun 2009 | 11:25 am ABG counterbids for Great Offshore, price war seenMUMBAI (Reuters) - Shipbuilder ABG Shipyard Ltd said on Tuesday it has bid for a controlling stake in offshore services firm Great Offshore, countering an offer by rival Bharati Shipyard.Source: Reuters: Money News | 23 Jun 2009 | 11:10 am Thomson Reuters to quit London exchangeNew York: Thomson Reuters Corp plans to withdraw its shares from the London Stock Exchange, severing a key connection with Reuters’ British roots. The company, formed in 2008 when Canadian data publishing company Thomson Corp bought British news and financial information provider Reuters, said on Monday that it would also remove its shares from the Nasdaq and remain listed on the New York and Toronto exchanges. While Thomson Reuters still has a big business in London, the merged company has a more balanced global profile than either company had on its own with, big businesses in the United States, Europe and Asia. Chief Executive Thomas Glocer, who is American, has moved his base to New York from London. Thomson Reuters’ London listing had become problematic for the company, said Todd Bourell, a partner at hedge fund ValueAct Capital, which owns 12 million Thomson Reuters shares in London and is one of the company’s largest shareholders. Canada’s Thomson family is the largest shareholder of Thomson Reuters and holds a 55% voting interest. “The fact that the stock is irrationally undervalued in London is putting a drag on the value of the stock in New York and Toronto,” Bourell said. There had always been a gap between the price in New York and London, and many investors made money by selling their more expensive New York shares and buying cheaper London shares. Glocer played down concerns that Thomson Reuters could lose any U.K.-based shareholders through the action, noting that only 5 percent of all shareholders are in the United Kingdom. He expressed hope that those shareholders would retain their holdings after the delisting. “Our shares are now fragmented, divided between North America and London in a way we didn’t envision. That’s hurting the company because there are investors who would come in but won’t,” Glocer said in a telephone interview. The news and information provider said it planned to seek shareholder approval for the delistings on 7 August. The company can save millions of dollars in costs by leaving the London and Nasdaq exchanges, Glocer added. The departure of Thomson Reuters is a loss for the London Stock Exchange, which has been under pressure in the last few years as smaller rivals have eaten into its share of trading, and larger rivals diversify with trans-Atlantic mergers. “We are headed towards universal access (to stock trading) that makes multiple listings obsolete,” said Diego Perfumo, analyst at Equity Research Desk, an advisory firm specializing in exchanges. “NYSE Euronext provides Thomson the European and US listings, Canada is maintained to honor its origin.” In the United States, the departure of Thomson Reuters from the Nasdaq is also a setback for the exchange. Owned by Nasdaq OMX, the exchange has been fighting NYSE Euronext for listings. Nasdaq has scored victories of its own, landing heavyweight media companies like News Corp and DreamWorks Animation SKG Inc in recent years. Leaving the London exchange marks a major move away from Reuters’ European origins. The German-born Paul Julius Reuter opened his news and stock quote service in the city in 1851. It was there that he turned Reuters into a global news service, and it was London that gave the outlet a distinctly British tinge. Reuters Group Plc listed its shares on the London exchange in 1984. Glocer said he understood the value of history but noted that leaving the London exchange does not mean that the company has abandoned one of the world’s financial capitals. “In a global electronic world where shares are trading in ones and zeros ... where we trade our shares is, to me, plumbing,” said Glocer. “I think we shouldn’t get too hung up ... London is still the second-largest center that we’ve got.” Source: Home - Livemint.com | 23 Jun 2009 | 11:03 am Thomson Reuters to quit London exchangeNew York: Thomson Reuters Corp plans to withdraw its shares from the London Stock Exchange, severing a key connection with Reuters’ British roots. The company, formed in 2008 when Canadian data publishing company Thomson Corp bought British news and financial information provider Reuters, said on Monday that it would also remove its shares from the Nasdaq and remain listed on the New York and Toronto exchanges. While Thomson Reuters still has a big business in London, the merged company has a more balanced global profile than either company had on its own with, big businesses in the United States, Europe and Asia. Chief Executive Thomas Glocer, who is American, has moved his base to New York from London. Thomson Reuters’ London listing had become problematic for the company, said Todd Bourell, a partner at hedge fund ValueAct Capital, which owns 12 million Thomson Reuters shares in London and is one of the company’s largest shareholders. Canada’s Thomson family is the largest shareholder of Thomson Reuters and holds a 55% voting interest. “The fact that the stock is irrationally undervalued in London is putting a drag on the value of the stock in New York and Toronto,” Bourell said. There had always been a gap between the price in New York and London, and many investors made money by selling their more expensive New York shares and buying cheaper London shares. Glocer played down concerns that Thomson Reuters could lose any U.K.-based shareholders through the action, noting that only 5 percent of all shareholders are in the United Kingdom. He expressed hope that those shareholders would retain their holdings after the delisting. “Our shares are now fragmented, divided between North America and London in a way we didn’t envision. That’s hurting the company because there are investors who would come in but won’t,” Glocer said in a telephone interview. The news and information provider said it planned to seek shareholder approval for the delistings on 7 August. The company can save millions of dollars in costs by leaving the London and Nasdaq exchanges, Glocer added. The departure of Thomson Reuters is a loss for the London Stock Exchange, which has been under pressure in the last few years as smaller rivals have eaten into its share of trading, and larger rivals diversify with trans-Atlantic mergers. “We are headed towards universal access (to stock trading) that makes multiple listings obsolete,” said Diego Perfumo, analyst at Equity Research Desk, an advisory firm specializing in exchanges. “NYSE Euronext provides Thomson the European and US listings, Canada is maintained to honor its origin.” In the United States, the departure of Thomson Reuters from the Nasdaq is also a setback for the exchange. Owned by Nasdaq OMX, the exchange has been fighting NYSE Euronext for listings. Nasdaq has scored victories of its own, landing heavyweight media companies like News Corp and DreamWorks Animation SKG Inc in recent years. Leaving the London exchange marks a major move away from Reuters’ European origins. The German-born Paul Julius Reuter opened his news and stock quote service in the city in 1851. It was there that he turned Reuters into a global news service, and it was London that gave the outlet a distinctly British tinge. Reuters Group Plc listed its shares on the London exchange in 1984. Glocer said he understood the value of history but noted that leaving the London exchange does not mean that the company has abandoned one of the world’s financial capitals. “In a global electronic world where shares are trading in ones and zeros ... where we trade our shares is, to me, plumbing,” said Glocer. “I think we shouldn’t get too hung up ... London is still the second-largest center that we’ve got.” Source: World Business - Livemint.com | 23 Jun 2009 | 11:03 am Sensex remains volatile for second day, ends slightly lowerIn choppy trade, the Bombay Stock Exchange benchmark Sensex fell for the second day in a row with a moderate loss of two points as funds continued to shuffle their portfolios.Source: India Business News | Business News - Times of India | 23 Jun 2009 | 11:00 am E-bike makers want 30% subsidy & roll back of CVDChandigarh: Electronic bike makers want countervailing duty (CVD) on the import of e-bike components to be rolled back and 30% subsidy on e-bikes under New and Renewable Energy Policy in the upcoming Budget in order to provide impetus to the industry. “The government should announce (in the forth coming Budget) some policy support for e-bike industry by withdrawing CVD on the import of spare parts of electronic bike that has hindered the growth of the domestic e-bike industry,” Hero Electric CEO Surinder Gill said. The Centre currently charges 8% CVD on the import of e-bike components. For making e-bikes, firms import motor, battery, and other electronic and mechanical parts from China and Taiwan. Over 55% of components are imported. Also, in order to encourage the use of environment friendly vehicles, the government should provide at least 30% subsidy on the purchase of bike under the New and Renewable energy policy. “Close to 30 countries are giving such subsidies on e-bikes and Indian government should also seriously think over it,” he said. The industry also wants infrastructure support in the form of charging stations for e-bikes and parking provisions in the proposed residential and commercial buildings. The industry is confident of selling 6-8 lakh e-bikes in next 3-4 years if the Centre accepts their demands against the present expected size of three lakh e-bikes growing at a pace of 10-15%. Source: Home - Livemint.com | 23 Jun 2009 | 10:53 am Gurnani appointed new CEO of Mahindra Satyam, Durgashankar CFOTech Mahindra on Tuesday appointed CP Gurnani CEO of Mahindra Satyam and S Durgashankar the new chief financial officer with immediate effect.Source: India Business News | Business News - Times of India | 23 Jun 2009 | 10:33 am Tourism ministry seeks tax incentive from BudgetNew Delhi: Aiming at boosting the tourism sector, the union tourism ministry will seek major tax incentives for hotels and restaurants including exemption of service tax and excise duty in the budget. The ministry also wants rationalisation of import duty on adventure sports equipment to promote adventure tourism in the country. Tourism minister Kumari Selja, who is scheduled to meet finance minister Pranab Mukherjee this week, has finalised the blueprint to be submitted to him for the budget proposals for the growth of the sector, sources in the ministry said. There is also a proposal for exemption of service tax for inbound tour operators on their foreign exchange earnings. Also Read More on Budget 2009 The sources said Selja would submit the detailed proposals to the finance ministry seeking various tax incentives for the sector. The ministry has also sought inclusion of hotels in list of infrastructure products like airports, railways and sea ports. If this measure is adopted, all new hotel projects will be able to avail the benefit of tax deductions of 100% with respect to profits and gains for a period of 10 years. “This will help in channelising huge investments of about Rs50,000 crore in the tourism sector in next 3-4 years and quickly bridge the shortfall in hotel accommodation. This will also help in lowering room tariffs in the country,” said a sources. Source: Home - Livemint.com | 23 Jun 2009 | 9:55 am More credit card rules could hurt Visa, MasterCardNew York: Visa Inc and MasterCard Inc, the world’s largest payment networks, could face lower revenue and pressure on their stock prices amid a push for increased US regulation of credit cards. Specifically, Congress is mulling regulations on interchange rates - fees retailers and merchants have to pay to banks that issue credit cards. Most immediately, that would affect the banks that collect those fees. But some investors and analysts are concerned the banks - already battered by credit losses and toxic assets - could try to share the haircut with Visa and MasterCard. “Longer term, I think it is a real risk for the model, but this could impact their stocks right now,” said Donald Fandetti, an analyst at Citigroup. Visa and MasterCard said the companies would not be impacted by the legislation because they do not charge interchange fees. But concern about the legislation has contributed to a 10% drop in Visa’s shares in the last month and a 5 percent decline for MasterCard, and the shares could fall further, analysts and investors say. “It’s an overhang on these stocks, at least until we have some clarity,” said Moshe Katri, an analyst at Cowen & Co, who said the legislation could impact the profitability of 20% of MasterCard’s revenues and 10% of Visa’s revenues. Before the financial crisis, Visa’s shares traded at 25 times future earnings and MasterCard stock was at 20 times. Now Visa’s shares are trading closer to 20 times 2010 earnings and MasterCard stock is around 15 times. These price-to-earnings multiples - still high compared with many financials - could become the new norm. “This is heightened regulatory risk and we think investors will reflect that in a lower multiple,” Fandetti said. Visa’s shares ended down 0.21% at $61.24, while MasterCard stock fell 2.83% to $156.78. The interchange fees laws currently under discussion would be in addition to recent legislation already approved limiting credit card fees and interest rates. The legislation would give merchants and retailers more power to negotiate interchange fees with banks. It follows longtime complaints from store owners that banks have colluded to set fee structures and block them from negotiating with Visa and MasterCard. Last year, interchange fees rose 14% to about $48 billion, averaging about 1.75% of total purchases. Visa and MasterCard are partially insulated from the impact of the legislation because they make the bulk of their money every time a person swipes a card and do not collect interchange fees, but they could be affected by a retrenchment in the credit card industry. In addition, analysts estimate the companies receive around 10 cents per $100 transaction from the card issuers and, if banks were forced to cut interchange rates, the financial institutions could ask Visa and MasterCard to share the pain. Analysts also said the world’s biggest payment networks could be near a renegotiation of their contracts with some big US banks, which could ask for lower prices. “It is adding some pricing pressure,” said Walter Todd, portfolio manager at Greenwood Capital Associates. Visa and MasterCard have said merchants already are able to negotiate lower fees. “We don’t see Congress legislating interchange fees or setting prices,” William Sheedy, president of Visa for North America, told Reuters in an interview. “The real question is whether the government is going to jump in and get into the game of price control in the free market. At the end of the day, this is price control and this just doesn’t smell right,” said Chris McWilton, MasterCard’s president of US markets, at an investor’s conference earlier this month. Sheedy and MasterCard’s spokeswoman Sharon Gamsin said the pending legislation would not affect their companies revenue. Both added that, when Australia cut interchange fees, neither Visa nor MasterCard were hurt by the action. Source: Home - Livemint.com | 23 Jun 2009 | 9:30 am More credit card rules could hurt Visa, MasterCardNew York: Visa Inc and MasterCard Inc, the world’s largest payment networks, could face lower revenue and pressure on their stock prices amid a push for increased US regulation of credit cards. Specifically, Congress is mulling regulations on interchange rates - fees retailers and merchants have to pay to banks that issue credit cards. Most immediately, that would affect the banks that collect those fees. But some investors and analysts are concerned the banks - already battered by credit losses and toxic assets - could try to share the haircut with Visa and MasterCard. “Longer term, I think it is a real risk for the model, but this could impact their stocks right now,” said Donald Fandetti, an analyst at Citigroup. Visa and MasterCard said the companies would not be impacted by the legislation because they do not charge interchange fees. But concern about the legislation has contributed to a 10% drop in Visa’s shares in the last month and a 5 percent decline for MasterCard, and the shares could fall further, analysts and investors say. “It’s an overhang on these stocks, at least until we have some clarity,” said Moshe Katri, an analyst at Cowen & Co, who said the legislation could impact the profitability of 20% of MasterCard’s revenues and 10% of Visa’s revenues. Before the financial crisis, Visa’s shares traded at 25 times future earnings and MasterCard stock was at 20 times. Now Visa’s shares are trading closer to 20 times 2010 earnings and MasterCard stock is around 15 times. These price-to-earnings multiples - still high compared with many financials - could become the new norm. “This is heightened regulatory risk and we think investors will reflect that in a lower multiple,” Fandetti said. Visa’s shares ended down 0.21% at $61.24, while MasterCard stock fell 2.83% to $156.78. The interchange fees laws currently under discussion would be in addition to recent legislation already approved limiting credit card fees and interest rates. The legislation would give merchants and retailers more power to negotiate interchange fees with banks. It follows longtime complaints from store owners that banks have colluded to set fee structures and block them from negotiating with Visa and MasterCard. Last year, interchange fees rose 14% to about $48 billion, averaging about 1.75% of total purchases. Visa and MasterCard are partially insulated from the impact of the legislation because they make the bulk of their money every time a person swipes a card and do not collect interchange fees, but they could be affected by a retrenchment in the credit card industry. In addition, analysts estimate the companies receive around 10 cents per $100 transaction from the card issuers and, if banks were forced to cut interchange rates, the financial institutions could ask Visa and MasterCard to share the pain. Analysts also said the world’s biggest payment networks could be near a renegotiation of their contracts with some big US banks, which could ask for lower prices. “It is adding some pricing pressure,” said Walter Todd, portfolio manager at Greenwood Capital Associates. Visa and MasterCard have said merchants already are able to negotiate lower fees. “We don’t see Congress legislating interchange fees or setting prices,” William Sheedy, president of Visa for North America, told Reuters in an interview. “The real question is whether the government is going to jump in and get into the game of price control in the free market. At the end of the day, this is price control and this just doesn’t smell right,” said Chris McWilton, MasterCard’s president of US markets, at an investor’s conference earlier this month. Sheedy and MasterCard’s spokeswoman Sharon Gamsin said the pending legislation would not affect their companies revenue. Both added that, when Australia cut interchange fees, neither Visa nor MasterCard were hurt by the action. Source: World Business - Livemint.com | 23 Jun 2009 | 9:30 am Govt mulls reviving inexpensive cooking oil scheme for poorNew Delhi: The government is considering re-introducing the scheme to provide inexpensive cooking oil to the population below the poverty line through ration shops in the 2009-10 Budget, which will be presented by finance minister Pranab Mukherjee on 6 July. The Centre had earlier in July 2008 launched the scheme to supply subsidised oil to the poor, which was valid till 31 March 2009. The government could not take a view on the scheme because of the general elections. With the UPA coming to power with an increased majority, sources said the scheme may be re-introduced in this year’s Budget to benefit poor households. Moreover, they added, subsidy outflow is not likely to be very high. Unlike last year, when the government agreed to subsidise the cost of import by Rs15 per kg, the scheme this time may offer cooking oil at Rs30 per kg to below-the-poverty-line families, irrespective of the cost of import, they added. Last year, the Centre had launched the scheme to provide relief to the poor as during that time the retail prices of cooking oil had gone up to over Rs80 a litre. If the subsidy is to be calculated against the current market price of edible oil, the government may have to provide Rs15-20 per kg. So, the monthly subsidy bill will be up to Rs130 crore as there are 6.52 crore BPL families (including about 2.5 crore under Antodaya Anna Yojana) that get PDS benefits. The government last year had spent over Rs350 crore as subsidy on supplying cooking oil to the states at lower rates while a loss of Rs280 crore has been incurred by selling over 80,000 tonnes of imported oil, which could not be distributed. Under the earlier scheme, up to one million tonnes of edible oil were to be distributed to states at a subsidy of Rs15 per kg. However, public sector firms MMTC, PEC and STC, along with agri-cooperative firm Nafed, had imported 3.6 lakh tonnes of edible oil under the scheme. States and Union Territories had lifted 2.61 lakh tonnes till the end of the scheme. Demand from the states for imported edible oil dipped after prices fell to Rs50-60 a litre level. These PSUs have an estimated 10,000-12,000 tonnes of imported oil out of the one lakh tonnes that was not lifted by the states. The government had asked the four trading firms to offload the stocks in the open market, while agreeing to bear the loss in the process. India imports about half its requirement of about 12 million tonnes due to lower domestic output. Source: Home - Livemint.com | 23 Jun 2009 | 9:18 am World Bank pats India for improving investor sentimentThe World Bank says the reform agenda of the newlyelected Indian Government has already improved investor sentiment and could yield an even stronger recovery in investment.Source: Moneycontrol Top Headlines | 23 Jun 2009 | 8:44 am Peugeot warns of heavy loss in 2009Paris: French auto giant PSA Peugeot Citroen warned on Tuesday that it faced an operating loss of between €1-2 billion ($1.4-2.8 billion) in 2009 and was raising €500 million in fresh cash. PSA said that it expected the loss “given the current situation in the market and uncertainties (and) ... prudent management of the finances.” The auto group warned in April that it expected a loss this year but had not provided a figure. For 2008, the company sustained a net loss of €343 million. At the same time, the company said that it now expected 2009 sales to be down 12%, less than the 20% fall estimated earlier, but would likely have to cut back output in the fourth quarter in anticipation that the government would end its trade-in support scheme for new cars in 2010. PSA shares were down more than 3.5% in early trading on an overall weaker Paris stock market. The company also announced that it would issue convertible bonds due in 2016 to raise €500 million to fund future projects and strengthen its financial position. Source: World Business - Livemint.com | 23 Jun 2009 | 8:37 am Renault puts India car plans on the fast trackFrench carmaker Renault has completely recast its plans for India as part of a new, aggressive approach that will see it producing cars in its Chennai plant by 2011.Source: Moneycontrol Top Headlines | 23 Jun 2009 | 8:36 am AI targets Rs 500cr wage cost reductionAir India is targeting a reduction of almost 17 per cent or Rs 500 crore of its annual wage bill of more than Rs 3,000 crore. The airline is passing through a severe financial crisis, losing almost Rs 15 crore a day.Source: Moneycontrol Top Headlines | 23 Jun 2009 | 8:28 am BSNL hopes to hear from govt on IPO soonTelecoms firm Bharat Sanchar Nigam Ltd hopes to hear soon from the federal government on its initial public offer plans and will appoint merchant bankers, chairman Kuldeep Goyal said.Source: India Business News | Business News - Times of India | 23 Jun 2009 | 8:16 am Tech Mahindra plans to raise funds via share saleIT firm Tech Mahindra, the new owner of Satyam Computer, plans to raise funds by selling 1.36 crore shares to institutional investors.Source: India Business News | Business News - Times of India | 23 Jun 2009 | 7:01 am Jobs likely to be back at work soonSan Francisco/New York: Apple Inc chief executive Steve Jobs was at the company’s headquarters on Monday, underscoring speculation the pancreatic cancer survivor may have returned to work. Jobs, who has been on medical leave since January, was seen by a Reuters reporter leaving the Apple campus in Cupertino, California dressed in his trademark black turtleneck and jeans. He walked out chatting with another person before climbing into a black car that then drove off. Speculation has mounted that Jobs could be back at work soon, fueled in part by a Wall Street Journal article last weekend that said the CEO had a liver transplant two months ago. On Monday, Jobs, 54, was also cited in an Apple press release for the first time in months, triggering talk that the man considered the visionary behind Apple’s innovation machine had returned from his leave of absence. “This is the first time we’ve heard from Steve Jobs since he reported he was taking medical leave,” said Oppenheimer & Co analyst Yair Reiner. “It’s a sign Apple has its CEO back.” Apple said in the release that it had sold more than 1 million of its newest iPhone 3GS in the first three days of launch, beating analysts’ expectations. “Customers are voting, and the iPhone is winning,” Jobs said in the statement. Apple, which has not disclosed details on Jobs’ state of health while he’s been on medical leave, declined to comment. The company has said in the past that Jobs remains deeply involved in decision-making. He has visited Apple periodically since starting his medical leave in January, according to blog reports that follow his every move. The Wall Street Journal reported on Saturday that Jobs had a liver transplant two months ago, but was expected back at work before the end of June. Shares of Apple rose as much as 1.5% in early trading before falling with the broader market to end the day down 1.5% at $137.37. Its stock was flat to slightly lower in after-hours trading. Analysts said the iPhone sales figures would distract some investors from concerns about Jobs’ health to a certain extent. “Investors will realize that Apple executed well on the launch in Jobs’ absence,” said Susquehanna Financial Group analyst Jeffrey Fidacaro. He said the 3GS sales were strong considering it was available in only eight countries. The last iPhone was launched in 21 countries and also booked 1 million sales in its first weekend. “It shows that the iPhone momentum remains strong.” Despite the solid weekend sales, Fidacaro said some investors would still have concerns about Jobs’ health and whether he can continue as a driving force at Apple. “He’s obviously the clear visionary of the company,” Fidacaro said. “There is a concern about his health and what Apple has told us about his health and what role he’ll be playing when he returns.” Analysts have said Jobs may soon shift to a new role focusing on big-picture issues and products at Apple, leaving chief operating officer Tim Cook to manage day to day. Cook has been overseeing operations in Jobs’ absence. Shares of Apple have risen more than 60% this year as investors grow more comfortable with the executive bench beyond Jobs. Continued strong sales and product launches at the company have also helped. “On the one hand, you have the Jobs news out there, which might give people some pause, but on the other hand, iPhone 3GS sales were good,” said Canaccord Adams analyst Peter Misek. Six million customers have downloaded the new iPhone 3.0 software in the first five days since its release, Apple said. The 3GS, which offers faster speeds, longer battery life and the ability to take videos, hit stores last Friday, drawing plenty of fans but not the crowds that had swarmed previous iPhone releases, due in part to preorders. Exclusively on AT&T Inc’s network in the United States, the iPhone competes with BlackBerry phones from Research in Motion and the Pre from Palm Inc. Source: Tech News - Livemint.com | 23 Jun 2009 | 6:50 am Jobs likely to be back at work soonSan Francisco/New York: Apple Inc chief executive Steve Jobs was at the company’s headquarters on Monday, underscoring speculation the pancreatic cancer survivor may have returned to work. Jobs, who has been on medical leave since January, was seen by a Reuters reporter leaving the Apple campus in Cupertino, California dressed in his trademark black turtleneck and jeans. He walked out chatting with another person before climbing into a black car that then drove off. Speculation has mounted that Jobs could be back at work soon, fueled in part by a Wall Street Journal article last weekend that said the CEO had a liver transplant two months ago. On Monday, Jobs, 54, was also cited in an Apple press release for the first time in months, triggering talk that the man considered the visionary behind Apple’s innovation machine had returned from his leave of absence. “This is the first time we’ve heard from Steve Jobs since he reported he was taking medical leave,” said Oppenheimer & Co analyst Yair Reiner. “It’s a sign Apple has its CEO back.” Apple said in the release that it had sold more than 1 million of its newest iPhone 3GS in the first three days of launch, beating analysts’ expectations. “Customers are voting, and the iPhone is winning,” Jobs said in the statement. Apple, which has not disclosed details on Jobs’ state of health while he’s been on medical leave, declined to comment. The company has said in the past that Jobs remains deeply involved in decision-making. He has visited Apple periodically since starting his medical leave in January, according to blog reports that follow his every move. The Wall Street Journal reported on Saturday that Jobs had a liver transplant two months ago, but was expected back at work before the end of June. Shares of Apple rose as much as 1.5% in early trading before falling with the broader market to end the day down 1.5% at $137.37. Its stock was flat to slightly lower in after-hours trading. Analysts said the iPhone sales figures would distract some investors from concerns about Jobs’ health to a certain extent. “Investors will realize that Apple executed well on the launch in Jobs’ absence,” said Susquehanna Financial Group analyst Jeffrey Fidacaro. He said the 3GS sales were strong considering it was available in only eight countries. The last iPhone was launched in 21 countries and also booked 1 million sales in its first weekend. “It shows that the iPhone momentum remains strong.” Despite the solid weekend sales, Fidacaro said some investors would still have concerns about Jobs’ health and whether he can continue as a driving force at Apple. “He’s obviously the clear visionary of the company,” Fidacaro said. “There is a concern about his health and what Apple has told us about his health and what role he’ll be playing when he returns.” Analysts have said Jobs may soon shift to a new role focusing on big-picture issues and products at Apple, leaving chief operating officer Tim Cook to manage day to day. Cook has been overseeing operations in Jobs’ absence. Shares of Apple have risen more than 60% this year as investors grow more comfortable with the executive bench beyond Jobs. Continued strong sales and product launches at the company have also helped. “On the one hand, you have the Jobs news out there, which might give people some pause, but on the other hand, iPhone 3GS sales were good,” said Canaccord Adams analyst Peter Misek. Six million customers have downloaded the new iPhone 3.0 software in the first five days since its release, Apple said. The 3GS, which offers faster speeds, longer battery life and the ability to take videos, hit stores last Friday, drawing plenty of fans but not the crowds that had swarmed previous iPhone releases, due in part to preorders. Exclusively on AT&T Inc’s network in the United States, the iPhone competes with BlackBerry phones from Research in Motion and the Pre from Palm Inc. Source: World Business - Livemint.com | 23 Jun 2009 | 6:50 am Need for simplified, revised income-tax regulationsLike most other pieces of legislation, we inherited our Income-tax (I-T) Act from the British. Originally introduced in 1922, the Act was revamped in 1961. Direct tax laws, encompassing both the I-T Act and the rules as they stand today, are truly baffling with a plethora of interwoven sections, subsections, clauses, subclauses, cross references, explanations and provisos. Of the five-decade-old I-T Act, a patchwork of amendments carried out from time to time, largely through annual fiscal budgets and occasionally through various amendment Acts, have added to the complexity. Also Read Taxation of goods and services Statistics never lie, and these statistics point to an urgent need for simplification of the I-T Act. The I-T Act originally contained only 298 sections and it is interesting to know that out of 298 original sections, only 62 sections have been deleted. Over the last 48 years, 208 sections have been amended and only 28 sections remain in original form without any amendment. As many as 390 new sections (some of which stand deleted) have been inserted over the years. Today we have about 625 sections. This figure of 625 is mind-boggling, to say the least, but hang on—it does not cover the rules, circulars and notifications which are also part of tax laws.  In his budget speech of 2005, then finance minister P. Chidambaram announced the intent to introduce a brand new and simplified I-T Act. Since then, we have often heard announcements that a new draft Bill revamping the entire I-T Act is around the corner, but in the public domain, little is known of its status or the key areas that have been taken up for simplification. Hopefully, the draft Bill will soon see the light of day for public discussion. Some of the key issues/provisions which should stand in front of the queue, when it comes to simplification and rationalization are detailed below: Often, tax provisions are subject to varied interpretation, recourse even has to be taken to the “introduction memorandum” of each section to understand the intent of that particular provision. The problem lies in the complexity of language used. Amendments to the sections further complicate the matter. A classic example is section 10(23C) which exempts income received by certain entities such as hospitals, educational institutions, etc. This section was originally a simple provision; today it runs into at least five pages and contains as many as 15 provisos. (Provisos can be termed as additional provisions which require meeting of certain criteria, in the absence of which the main section will not apply.) Or take another instance of the use of a single running lengthy sentence, worse still if it contains the terms “inclusions” and “exclusions”, adding to complexity. Also Read More on Budget 2009 For example, explanation 2 of section 271(1)(c) (this section deals with penalty for concealment of income) is narrated by a single running sentence containing more than 290 words. A web of cross references is another area where drafters have very often stumbled while making amendments to sections as they often miss making suitable changes across all relevant sections. When it comes to usage of language, another dichotomy exists in the tax incentive sections which originally were introduced in three categories: (i) Exemption provisions for income (ii) Deduction from gross total income (iii) Deduction from the respective head of income (tax laws tax income under various heads, such as salary, house property, income from profits and gains of business or profession, etc). The classification of tax incentive provisions has a key impact on the taxpayer and the quantum of tax benefit that can be availed. While the incentive falling under category (ii) can only benefit the taxpayer if the gross total income (GTI) is positive and the benefit will be restricted to GTI, this is not the case for incentives falling under category (iii), where deduction is available from the income of the respective head and in situations of low profitability, the deduction can be claimed over the years by way of carrying forward such unabsorbed benefit. However, over the years, new beneficial provisions have been added depending upon the need to give a spurt to a particular activity/ business/investment in a haphazard manner without giving due emphasis to the right classification. To illustrate: section 80JJAA provides for weighted deduction of 130% of the wages paid by labour-intensive manufacturing units to promote employment. This incentive falls under category (ii) and cannot be availed if GTI of the company is not positive. On the other hand, section 35(2AB), which provides for a weighted deduction of 150% of the expense on in-house scientific research is an incentive falling under category (iii). This incentive can be claimed fully even if there is insufficient business income and can also be carried forward and set off in subsequent years. There appears to be no rationale behind the different tax treatment provided for these two sections enumerated above. Various other ambiguities surround these tax incentive provisions and historically, these provisions have been disputed by tax authorities on frivolous grounds in contradiction to the intent with which these were introduced. Clubbing of provisions of tax holidays and putting them up for deduction under the head “business profits” will help mitigate litigations. Other areas of litigation are those relating to taxation of non-residents, which must be compatible with international norms and tax treaty provisions. Transfer pricing is another area that needs rationalization. In addition to the above, legislators may consider withdrawing some of the tax regimes such as the minimum alternate tax (MAT) and fringe benefit tax (FBT). The MAT regime has already lost significance because of availability of tax credit in subsequent years and also narrowing of the gap between book and tax profits, and FBT merely contributes approximately 2% of direct tax collections to the government treasury. There is clearly a strong case to rewrite the I-T Act in toto on a new slate with farsightedness so that the provisions do not need frequent amendments for a reasonable time. Removal of ambiguity, less usage of legal jargon or mathematical formulas/expressions, removal of redundant provisions, grouping of similar provisions, avoidance of frequent cross references and well-thought-out procedural law may add significant brand value to the new law. Ganesh Raj is tax partner, policy advisory group, Ernst and Young. This is the first of a four-part series on key issues which need to be addressed by the proposed overhaul of the direct tax code. Respond to this column at feedback@livemint.com Source: Home - Livemint.com | 23 Jun 2009 | 6:10 am Markets recover after gap-down openingDuring the day's climb, the Sensex had a high of 14,394.19 and finally ended only two points below its previous close, finishing at 14,324.01.Source: Daily News & Analysis: Money News | 23 Jun 2009 | 5:11 am Sensex falls 309 points on global cuesThe 30-share index, which had lost over 195 points on Monday, fell further by 309.27 points at 14,016.95.Source: India Business News | Business News - Times of India | 23 Jun 2009 | 4:58 am Proposed ban on GM food crops not desirable: ExpertThe Centre’s reported move, to restrict genetic modification (GM) technologies to non-food crops and not permitting them in food crops, has drawn flak from a leading plantSource: Business Line - Home Page | 23 Jun 2009 | 12:00 am Signature ‘low’ to help strengthen monsoon currentThiruvananthapuram, June 22 A low pressure area has formed over east-central Arabian Sea, the India Meteorological Department (IMD) said on Monday, livening up the monsoon settings overnight.Source: Business Line - Home Page | 23 Jun 2009 | 12:00 am NTPC to get gas from Reliance at $4.2New Delhi, June 22 NTPC Ltd is close to signing a deal with Reliance Industries Ltd (RIL) for gas from the D6 block at $4.2/mBtu at the landfall point. The deal covers all of the public sector power major’s gas stations, except Kawas andSource: Business Line - Home Page | 23 Jun 2009 | 12:00 am AI targets Rs 500-cr wage cost reductionAir India is targeting a reduction of almost 17 per cent or Rs 500 crore of its annual wage bill of more than Rs 3,000 crore. The airline is passing through a severe financial crisis, losing almost Rs 15 crore aSource: Business Line - Home Page | 23 Jun 2009 | 12:00 am CESC (Rs 292.9): SellWe recommend a sell in CESC from a short-term trading perspective. It is apparent from the charts of CESC that it had been on an intermediate-term up-trend between the early March low and early June peak, from Rs 180 to Rs 376. However, the stockSource: Business Line - Home Page | 23 Jun 2009 | 12:00 am Union Bank cuts lending rate by 25 bps; others may follow suitMumbai, June 22 The Finance Minister’s fiat to public sector banks, to lower lending rates, seems to be having the desired effect as banks have started cutting their benchmark prime lending rates.Source: Business Line - Home Page | 23 Jun 2009 | 12:00 am Day Trading GuideFresh short-position can be initiated if DLF declines below Rs 310, with tight stop-loss. ICICI Bank is witnessing selling interest at higher levels. Utilise rallies to sell the counter with stiff stop at RsSource: Business Line - Home Page | 23 Jun 2009 | 12:00 am Pharma industry seeks incentives for researchMumbai, June 22 Research undertaken to develop medicines is different from research in any other industry segment, say pharma industry representatives in their pre-Budget wishlist to the Centre, even as they sought sops to support theirSource: Business Line - Home Page | 23 Jun 2009 | 12:00 am United Bank plans IPO in Dec to mobilise Rs 300-400 crKolkata, June 22 United Bank of India plans to hit the capital market by December-end with an Initial Public Offering to mobilise Rs 300-400 crore, according to its Chairman and Managing Director, Mr S.C.Source: Business Line - Home Page | 23 Jun 2009 | 12:00 am Overseas investors pare down derivative positionsBL Research Bureau Foreign institutional investor (FII) activity on the bourses has turned tepid since the second week of June.Source: Business Line - Home Page | 23 Jun 2009 | 12:00 am 'Steel cycles have become much shorter'Steelmakers across the world are burdened with heavy debts. However, the surge in demand from the rural sector has come to the rescue of domestic firms.Source: Daily News & Analysis: Money News | 22 Jun 2009 | 10:21 pm Govt must infuse equity in Air India: Former MDThe Budget is likely to bail out the Maharaja. Air India seeks Rs 14,000 crore package even as it defers paying June salaries by 15 daysSource: Moneycontrol Top Headlines | 22 Jun 2009 | 8:51 pm High net worth investors make haste slowlySajjan Mehta (name changed), a high net worth investor (HNI), had moved most of his money to debt funds and fixed deposits after the markets went into a tailspin last year. But when the Bombay Stock Exchange Sensitive Index went up over 30 per cent within a month in April this year, Mehta could not resist buying equity again.Source: Business Standard | Front Page Headlines | 22 Jun 2009 | 7:11 pm Swiss govt agrees to share data on tax evasionRenegotiated tax treaty to relax banking secrecy laws.Source: Business Standard | Front Page Headlines | 22 Jun 2009 | 7:10 pm Air India to cut staff costs by up to 16% a yearState-owned airline on collision course with unions.Source: Business Standard | Front Page Headlines | 22 Jun 2009 | 7:08 pm
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