General Awareness : Economy - April, 2015

(General Awareness For Bank's Exams) Economy

April -2015

Probeinto628HSBCaccountscompleted

  • KeepingupwiththeMarch31deadline,theCentralBoardofDirectTaxes (CBDT)hascompletedassessmentoftheHSBCBank(Geneva)account-holders whosedetailsweresharedbytheFrenchgovernmentin2011.
  • WhiletheIncome-TaxDepartmenthadearlierlaunchedprosecution proceedingsin60cases,islearntthattheagencyhassoughtlegalopinion toascertainwhetheritcaninitiateprosecutioninothercases.Penalty proceedingswerealsoinitiatedagainst350account-holders.
  • Over250ofthe628account-holdershaveadmittedtohavingaccounts abroad.“However,legalactionwillnotbetakenagainstthosewhoenjoyed NRIstatuswhentheaccountswereopened,unlessanycriminalityis involved,”saidanofficial.
  • TheIncome-TaxDepartmentalsoplanstoopeninvestigationsincases pertainingtotheaccountsopenedbefore2005-06,takingrecourseto assessment/reassessmentprovisionsundertheIncome-TaxAct.

GoAirCEOquits

  • TheChiefExecutiveOfficerofWadiagroup-promotedbudgetcarrier GoAir,GiorgioDeRoni,hasquitthecarrier,citinghealthreasons,sources said.
  • Mr.DeRoni,anItaliannational,hadjoinedGoAirin2011.
  • “DeRonihasquitGoAir.Hehadrequestedthemanagementtorelievehim onhealthgrounds.Todaywashislastdayattheairline,”sourcescloseto thedevelopmenttold.
  • Whencontacted,aGoAirspokespersondidnotcommentontheissue.
  • DeRonihadtakenoverthepostfromKaushikKhona,whowasinstrumental ingettingbacktheno-frillsairlineonitsfeet.

Videocond2hgetslistedonNASDAQ

  • Videocond2hhascloseditsinitialpublicoffer(IPO)process,andis gettinglistedonNASDAQintheU.S.,joiningaselectbandofIndian companiesthatarelistedontheU.S.bourses.
  • ThecompanyisgettinglistedonNASDAQlateTuesdaynightbyissuing ADR(AmericanDepositoryReceipts)worth$325milliontothepublicwitha currentmarketcapitalisationof$1.15billion.
  • "WehadplanstohaveasimultaneouslistingontheNASDAQ,theBSEand theNationalStockExchange(NSE),’’VenugopalDhoot,Chairman,Videocon Group,toldthiscorrespondent.
  • "However,theNASDAQauthoritieshaverespondedveryfast,andwechose togoaheadandlisttherefirst.WewilllistontheBSEandtheNSEwithin thenextthreemonths,’’hesaid.
  • Videocond2histhefirstIndianmediacompanytolistoverseasandthe largestIndianIPOintheUSinovereightyears.
  • Thefundsraisedwillbeusedforgrowthopportunitiesandtostrengthen thefinancialpositionbydeleveragingthebalancesheetofthecompany,Mr. Dhoot,saidaddingthatthecompanyhadadebtofaroundRs.1,200crore, whichwouldbebroughtdown.

AnoopKumarSharmaisEssarShippingCEO

  • Capt.AnoopKumarSharmahastakenoveraswhole-timedirectorandChief ExecutiveOfficer(CEO)ofEssarShippingLtd(ESL).
  • HereplacesRamakrishnanA.R.,whoretiredfromserviceonMarch31, thecompanysaidinastatement.
  • Capt.SharmahasbeenassociatedwithESLsinceAugust2008.
  • AnalumniofNarseeMonjeeInstituteofManagementStudies,Mumbaianda fellowofInstituteofCharteredShipbrokers,London,heisalsothemember oftheGoverningcouncilofNarottamMorarjeeInstituteofMaritimestudies.
  • HewaspreviouslyassociatedwithShippingCorporationofIndiafor16 yearswherehewastheSeniorVicePresidentoftheCharteringdivision responsibleforexploringglobalbusinessopportunitiesforbulkcarriers, tankers,containersandothervesselsanddevelopingnewbusinesses.
  • EssarShippingoperatesadiversifiedfleetof15vessels,including verylargecrudecarriers(VLCCs),Capesize,Mini-capesize,Supramaxes, mini-bulkcarriersandtugs.

PiramaltosellclinicalresearchdivisiontoIndoco

  • PiramalEnterpriseshassignedanagreementtosellitsHyderabad-based clinicalresearchdivisiontoIndocoRemediesforundisclosedamount.
  • PiramalEnterpriseshassignedadefinitiveagreementtosellits clinicalresearchdivisionknownas‘PiramalClinicalResearch’(PCR)to IndocoRemediesonagoingconcernbasisforcash,thecompanysaidina filingtoBSE.
  • “Fixedassetsofthisdivisionalongwiththeemployeeswillbe transferredtoIndocoonaslumpsalebasisasapartofthetransaction,” itadded.
  • Thesaletransactionisexpectedtobecompleteduponreceiptof purchaseconsiderationbyApril6.
  • “PCRwasnotconsideredstrategicinnatureandformedarelatively smallportionofthePEL’sconsolidatedbusiness.Thetransactiondoesnot haveamaterialimpactonPEL’sbalancesheetorP&L,”itadded.
  • PCRspecialisesinconductingbioanalyticalandbioequivalencestudies forgenericproductsandholdsapprovalsfromvariousregulatoryagencies, includingUSFDA,andU.K.MHRAamongothers,PiramalEnterprisessaid.

MercedgesoutAudiasNo.1luxurybrand

  • GermanluxurycarbrandMercedeshasovertakenitsrivalAudiintotal salesduringQ1ofthiscalendaryeartograbtheNumber.1positioninthe Indianluxurycarmarket.
  • DuringJanuary-March2015,Mercedessold3,566units,up40percent whencomparedwiththeyear-agosales.Audisold3,181units(upfrom2,740 units)duringthisperiod.
  • MercedeshasbeenreducingthesalesgapwithAudioverthepastcouple ofyears.Itlostleadershippositionin2009.But,startedgainingfrom second-halfof2013.In2014,Mercedessold10,201units.Audi’ssaleswere, however,higherby650units.
  • Thecompanyattributedtherobustgrowthtoitsstronganddiverse productportfolio,comprisingNGCs(newgenerationcars),thesedansandthe SUVs(sportutilityvehicles).
  • ThenewMercedesC-Class,launchedinFebruary,clockedthebest-ever salesinMarch.ThehighpreferenceforthenewC-Classsedanwasclosely matchedbytheE-Classsedan,whichcontributedsignificantlytothevolumes inQ12015.
  • “Our‘LivetheBest’philosophyisyieldingrichdividendsandour objectiveofachievingadouble-digitgrowthmovingintheright direction,''EberhardKern,ManagingDirector&CEO,Mercedes-BenzIndia.
  • ThefiercebattlebetweenMercedesandAudiissettointensifyduring thiscalendaryearwithboththebrandsareintheprocessoflaunching numerousproductsacrosssegments.WhileMercedeshasplanned‘15in15’ productstrategy,Audihasproposedtorollout10newproductsthisyear.

ChangingnomineeinlifeinsurancepoliciestocostRs.100

  • Cancellationorchangeinnominationininsurancepoliciesnowcomesat acostastheIRDAhasallowedlifeinsurerstochargeuptoRs.100forany suchmodification.
  • Forpoliciesobtainedonline,thefeeisuptoRs.50.

Toulousemodelplannedforsmartcityproject

  • AheadofPrimeMinisterNarendraModi’svisittoFrancelaterthisweek, IndianandFrenchgovernmentshavespentsometimeidentifyingthepossible cityFrancecouldhelpdevelopasasmartcityinIndia.
  • PartofMrModi’s100smartcitiesproject,Puducherry,formerlya Frenchcolonyistheobviouschoicefortheproject,giventhatFrenchis stillanofficiallanguagethere,whileChandigarh,India’snewestcitywas builtbyFrencharchitectLeCorbusier,andistheotherstrongcontender.
  • Theplanforsmartcitiesthatwasannouncedwithinweeksofhis governmentbeingsworninlastMay,isawaitingtheMinistryofUrban Development’s“blueprint”.
  • Mr.ModiwillbeginhisstatevisitinParis,andaftertheceremonial welcome,willmeetwithtwosetsofbusinessgroupsfromtheinfrastructure anddefencesectors.HewillbehostedattheNationalAssemblyandmeet politicalleadersbeforehisbilateralmeetingwithPresidentHollande.
  • AplanforthetwoleaderstoseethesightsofParisbyaboatdownthe riverSeineisstillnotconfirmed,duetothepossibilityofrain, officialstold.
  • AfterhisvisittoToulouse,MrModiwillflytothetownofLillewhere hewillpayrespectsto9,000IndiansoldierswhodiedintheBattleof NeuveChapelleintheWorldWarI.
  • MrModiwillreturntoParisandmeetwiththeIndiancommunity,before heheadstotheHannoverIndustrialfairtopromotethegovernment’sother petproject,“MakeinIndia.

DenaBanktiesupwithLIC

  • DenaBanksignedamemorandumofunderstanding(MoU)withLifeInsurance Corporation(LIC)ofIndiaunderthePrimeMinister’sPradhanMantriJeevan JyotiBimaYojana(PMJBY)schemetoprovideinsurancecovertoall Aadhaar-linkedsavingsaccountholdersofthebankintheagegroupof18to 50years.
  • “Peoplewhojointheschemebeforecompleting50yearscancontinueto havetheriskoflifecoveruptotheageof55years.Theschemewillcome ineffectfromJune1,2015,”saidDenaBankinapressrelease.
  • Underthescheme,ariskofRs.2lakhwillbecoveredincaseofdeath andapremiumsumofRs.330perannumwillbeauto-debitedtotheaccount holder’saccount.Asperthetermsofriskcoverage,apersonhastooptfor theschemeeveryyear.

TRAIreviewsoperatoraccountsreportingsystem

  • TelecomRegulatoryAuthorityofIndia(TRAI)hasstartedreviewof accountsreportingsystemofoperatorsonconcernsoverproductsandnetwork licences,amongothers,raisedbytheindustry.
  • TRAIisintheprocessofreviewingtheReportingSystemonAccounting SeparationRegulations,2012,areleasesaid.
  • TheRegulationsareintendedtocollectfinancialdatafromtelecom operatorsthatwouldenableanalysisofthefinancialperformanceof differenttelecomproductsandservices,costs,returnsandcapital employed.
  • Italsoseeksdatatoidentifycrosssubsidisation,andinvestigate predatorypricing.ViewsaresoughtonthisissuebyApril22.
  • TheRegulatorseeksdatatoidentifycrosssubsidisation,investigate predatorypricingandunderstandpricingandarrangement.

CentreGovt.hikesDAby6percent

  • InamovethatwillbenefitoveronecroreCentralGovernmentemployees andpensioners,theUnionCabinethikedDearnessAllowance(DA)by6per centto113percentoftheirbasicpaywitheffectfromJanuary.The decisionwillbenefit48lakhgovernmentemployeesand55lakhpensioners.
  • ItwouldinvolveanoutlayofRs7,889.34croreinthecurrentfiscal.

NGOsgetRs.11,000croreinforeignfundsayear

  • Non-governmentalorganisationsinIndiareceiveRs.11,000crorein foreigndonationsayearfromover150countries.Ofthe69blacklistedfrom receivingforeignfunds,14arefromAndhraPradesh,12fromTamilNaduand fiveeachfromOdishaandGujarat.TheothersarebasedinDelhi,Uttar Pradesh,KeralaandJammuandKashmir.
  • TheBerthaFoundation,thelatesttobeincludedontheprior-approval listforgivingdonations,isyettogiveitsreactiontotheUnion government’smove.GreenpeaceIndia,whichreceivesfundsfromthe Netherlands-basedadvocacygroup,hasnotrevertedtoquestions.
  • “Althoughahueandcryisbeingraisedtoprojectthatthegovernment iscrackingdownontheentireNGOsector,thereisnotruthinsuch assertions.Whilethousandsofservice-deliveryNGOshavebeenoperating withoutinterference,actionisbeingtakenonlyagainstaminusculenumber ofadvocacygroupsasperlaw,”aHomeMinistryofficialsays.
  • Theothersintheprior-approvallistaretheU.S.-based350.Org,Mercy Corps(whichoperatedinKashmir),BankInformationCentre,SierraClub FoundationandAvaaz.org;theNetherlands-basedICCOStretegische Samenwerking,HIVOS,CatholicOrganisationforReliefandDevelopmentAid andInter-ChurchPeaceCouncil;andtheDenmark-basedDanishInstituteof HumanRightsandDanishInternationalDevelopmentAgency.

World’ssmallestPC

  • Toutedtobetheworld’ssmallestcomputer,Intel’snewComputeStickPC comesintwovariantsanditcostabout$100-150.
  • ItcanbepluggeddirectlyintoamonitororTVviaHDMI.
  • Itcomeswithafull-sizedUSBportforconnectingamouseandkeyboard.
  • Linuxversioncost$110,whiletheonepoweredbyWindows8.1ispriced at$150.
  • Itcanbepre-orderedthroughsomeonlinestores.

EPFOsuspendspensionscheme

  • TheEmployeesProvidentFundOrganisation(EPFO)hassuspendedtheRs. 1,000minimummonthlypensionschemefromthismonth,adecisionwhichwill hitabout32lakhpensioners.
  • TheschemewaslaunchedwitheffectfromSeptember2014,hikingthe pensionamounttoaflatRs.1,000permonthforthosewhoweregetting loweramountearlier.
  • Withthesuspensionofthescheme,thebeneficiarieswillgetpensionat earlierrates.
  • Inacirculartoitsfieldoffices,theEPFOsaidithasdecidedto suspendtheschemeintheabsenceofanydirectionfromthegovernmentto continuethisbenefitbeyondMarch31.
  • AccordingtothegovernmentnotificationissuedonAugust19lastyear, thebenefitofminimumpensionwasmadeeffectivefromSeptember1toMarch, 2015.

Blackmoney:U.N.meetendorsesIndia’sconcern

  • Inamajorpushtowardsrecoveringblackmoneystashedinsafehavens abroad,aU.N.conferenceendorsedIndia’ssuggestionsonpromotingglobal cooperationinfightingthemenaceofmoney-laundering,international terrorismandcybercrime.
  • The13thU.N.CongressonCrimePreventionandCriminalJusticewasheld hereandaDohaDeclarationwasadoptedduringthehigh-levelsegmentofthe meeting.
  • FollowinguponG20’sendorsementofconcernsraisedbyitonblack money,Indiaputimmenseimportanceontheacceptanceofastatementthat willfacilitatetheeventualconfiscationof“moneyandotherassetsthat havenotbeenaccountedforandthatarefoundinsafehavens”andsucceeded ingettingadoptedmeasuresthatcanhelpachievethegoal.
  • Aclauseinthedeclarationprominentlytookcareoftheconcernthat theIndiangovernmenthasbeenemphasisingrecentlyatallpossibleforums. MinisterofLawandJusticeD.V.SadanandaGowda,ledahigh-level delegationtotheCongress.

BajajlaunchesPulsarAS200andAS150

  • Two-wheelermajorBajajAuto,launcheditsnewrangeofsportsbike PulsarAdventureSportpricedbetweenRs.79,000andRs.91,550(ex-showroom Delhi).
  • “Thesenewgenerationbikesareawinningcombinationofeasyhandling intrafficandrawbrutalpower,”saidEricVas,president,motorcycles business,BajajAuto.
  • “Wehavealwaysledonproductinitiativesandhavecontinuously expandedthePulsarrangetocatertothevariousconsumerpreferencesin thesportssegment,”Mr.Vasadded.
  • Thenewrangecomprisesoftwovariants—PulsarAS200andAS150.The PulsarAS200ispoweredbya199.5cctriplespark,4-valveliquidcooled DTSienginewhilethePulsarAS150runsona149.5cctwinspark,4-valve aircooledDTSiengine.
  • ThePulsarrangesells57,000unitseverymonthinthedomesticmarket.

India’sGDPgrowthratetoreach8%by2017:WorldBank

  • TheWorldBankhaspredictedaGDPgrowthrateof8percentforIndia by2017andsaidthatastrongexpansioninthecountry,coupledwith favourableoilprices,wouldacceleratetheeconomicgrowthinSouthAsia.
  • InIndia,GDPgrowthisexpectedtoaccelerateto7.5percentinfiscal year2015/16.Itcouldreach8percentinFY2017/18,onthebackof significantaccelerationofinvestmentgrowthto12percentduringFY 2016-FY2018,thebanksaidinitssemi-annualreport.
  • Thecountryisattemptingtoshiftfromconsumptiontoinvestment-led growth,atatimewhenChinaisundergoingtheoppositetransition,itsaid.
  • Thebank’stwice-a-yearSouthAsiaEconomicFocusreportprojected steadyincreaseinregionalgrowthfrom7percentin2015to7.6percent by2017ongroundsofstrongconsumptionandincreasinginvestment.
  • GivenIndia’sweightinregionalGrossDomesticProduct,theprojections reflecttoalargeextentIndia’sexpectedgrowthacceleration,drivenby business-orientedreformsandimprovedinvestorsentiment.
  • Thedeclineinoilpriceshasbeenreflectedinthedomesticpricesof oilproductstodifferentextentsacrosstheregion.Thepass-through exceeded50percentformostoilproductsinPakistan,butwasnilin Bangladesh,itsaid.
  • Togetherwithfavourablefoodprices,cheaperoilhascontributedtoa rapiddecelerationofinflation.SouthAsiawentfromhavingthehighest inflationrateamongdevelopingregionstohavingthelowestinbarelyone year.
  • InMarch2013,theConsumerPriceIndex(CPI)oftheregionhad increasedby7.3percentyear-on-yearcomparedto1.4percentinMarch 2015,thereportsaid.
  • “ThebiggestoilpricedividendtobecashedinbySouthAsiaisoneyet tobeearned,butitisnotonethatwillautomaticallytransitthrough governmentorconsumeraccounts,”saidWorldBankSouthAsiaChiefEconomist MartinRama.
  • “Cheapoilgivestheopportunitytorationalizeenergyprices,reducing thefiscalburdenfromsubsidiesandcontributingtoenvironmental sustainability,”hesaid.
  • ThereportnotedIndiahasalreadytakenencouragingstepstodecouple internationaloilpricesfromfiscaldeficitsandtointroducecarbon taxationtoaddressthenegativeexternalitiesfromtheuseoffossilfuels.
  • Thechallengewillbetostaythecourseintheeventofoilprice hikes,somethingthatmaywellhappeninthemedium-term.
    “Savingsfromreducedsubsidybillscouldbeusedtoaddressthecrying needsoftheregionintermsofinfrastructure,basicservicesandtargeted supportforthepoor,”saidWorldBankVicePresidentforSouthAsiaAnnette Dixon.
  • Thereportshowsthathouseholdsintheregionstandtogainfromlower oilprices,bothdirectlythroughlowerenergyspendingandindirectly throughfastergrowth.Butexceptforkerosene,richerhouseholdsspendmore inoilproducts,andstandtogainmore.

Googleunveils‘FindMyPhone'

  • IfyoumisplaceyourAndroidphoneinthecarorleaveitsomewhere aroundthehouse,searchenginegiantGooglecannowhelplocatethe smartphone.
  • UsingGooglesearchonadesktop,usersneedtotypein‘Findmyphone’ andanapproximatelocationofthedevicewillbeshown,Googlesaidina blogpost.
  • Theusersjustneedtoensurethattheyhavethelatestversionofthe GoogleAppontheirregistereddeviceandsmartphonelocationservicesare alsoon.
  • TheAndroidDeviceManagerwillallowuserstoringtheirdevice,using whichtheycanlocatetheirdevice.Thephonewillringforfiveminutes, oncetheringoptionischosen.However,thereareotherappsavailablein themarkettotrackanderasedataremotely,ifrequired.

Newinterestsubventionschemeforfarmersonanvil:RBI

  • AweekafterthePrimeMinisterannouncedhighercompensationfor damagedcrops,theReserveBankofIndia(RBI)saidanewschemefor interestsubventionforfarmerswasbeingworkedoutthoughitmighttake ‘sometime’.
  • Inthemeanwhile,theearlierinterestsubventionschemewouldcontinue tillJune30,theRBIsaid.
  • Asregardstheschemefortheyear2015-16,theGovernmentofIndiahas advisedthatpresentlyvariousalternativeapproachesforimprovingthe efficacyoftheschemearebeingexamined,thefinalisationofwhichmay takesometime,”itsaidthroughanotification.
  • RBIfurthersaidithasbeendecidedbythegovernment,‘asaninterim measure’,toimplementtheinterestsubventionschemefor2015-16,tillJune 30,onthetermsandconditionsapprovedfortheschemefor2014-15.
  • “Allbanksare,therefore,advisedtotakenoteandimplementthe interestsubventionschemefor2015-16accordingly,”itsaid.
  • In2014-15,interestsubventionoftwopercentwasmadeavailableto banksonfundsusedforshort-termcroploansuptoRs.3lakhperfarmer providedtheymakeavailableshorttermcreditatthegroundlevelat7per cent.
  • Also,additionalinterestsubventionattheratethreepercentwasmade availabletofarmersrepayingloanspromptly.
    OnApril8,PrimeMinisterNarendraModihadannouncedthegovernment’s decisiontoraiseby50percentthequantumofcompensationtofarmers affectedbycroplossesduetorecentunseasonalrains.
  • Besides,thecriterionof50percentcropdamageforproviding compensationtofarmershasbeenreducedto33percent,whichwillhelp morepeoplegetbettercompensationforthecroploss.Healsosaid insurancecompanieshavebeeninstructedtoexpeditiouslysettletheclaims ofthedistressedfarmers.

Absenceofnewtaxeswillhelpmanufacturing,saysJaitley

  • UnionFinanceMinisterArunJaitleysaidthataftertheModigovernment decidedtoincreasetheStates’shareinCentraltaxesinlinewiththe14th FinanceCommissionrecommendations,notasingleStategovernmenthas introducednewleviesandthatthiswillhaveanimpactontheeconomy.
  • “AllStateshavenowpresentedtheirbudgetsforthisyearandnonewor additionaltaxeshavebeenintroduced…thiswillmakemanufacturingacross Indiacompetitiveforproducers,”Mr.Jaitleysaid.
  • HewasspeakingataneventatthePetersonInstituteofInternational Economicshere.
  • RespondingtoaquestionontheInternationalMonetaryFund’sprojection releasedonMondaythatIndia’sgrowthwouldovertakeChina’sthisyear,the FinanceMinistersaid:“Ifinagivenyearwearenumericallyhigherthan theirgrowthratetherearealotofareaswhereweneedtodoalotmore thanthat.”
  • Chinamanagedanaverage9percentgrowthforthreedecadestoreach whereitwas,hesaid.
  • Mr.JaitleyalsosaidthefinancialyearthatendedonMarch31wasone inwhichtheCentre’sreceiptsfromdisinvestmentwerehighestever. “NumericallyIhavecollectedmuchmorefromdisinvestmentinayearthan othergovernmentssince1991andthisyearwewilldomuchmoreifnottwice oflastyear,”hesaid.
  • Mr.JaitleyalsosaidthatasheannouncedinhisBudgetspeech,the ModiGovernmentwouldbegoinginforstrategicsalesduringtheyearfor somepublicsectorunits.
  • TheofficeoftheChiefEducationalOfficerherehasbaggedtheISO 9001:2008certification.ThisissaidtobethefirstEducationDepartment officetogetthecertification.
  • RepresentativesofMax,aSwedish-basedagencyforISO,ascertainedthe performanceofemployeesoftheofficeduringtheacademicyear2014-15and ascertainedtheirefficiencyinserviceduringthestartandendofthe assessment.
  • “Servicetopeople,leadership,system-basedmanagement,commitmentto service,decisionmakingonrationalgrounds,designinoffice,uniform clothesforemployeesonthelinesofcorporatesectorandaboveallservice tostudentsandteachersweresomeofthefactorswhichwereanalysed,”said N.ArulMurugan,ChiefEducationalOfficer,whosoughtthecertification.
  • Innovationinservicewastakenintoaccount.Forinstance,the introductionofphoto-affixedtransfercertificatewasamajornewstrategy adoptedbytheofficeduringtheacademicyear2014-15,hesaid.
  • ThewebsiteoftheofficeoftheCEOandthefeedbackfromstudentsand parentswereascertained.
    Thecertificationwasvalidforthreeyears.Theagencywouldtakeupannual reviewontheservicesoftheofficeforthenextthreeyears.
  • “Thecertificationhasbroughtaboutasenseofconfidenceandpride amongtheemployeesandteachersaboutthequalityofservicebeingrendered bythisoffice,”hesaid.

InvestmentviaP-Notessurges

  • InvestmentsintoIndianmarketsthroughparticipatorynotes(P-Notes) hassurgedtothehighestlevelinoversevenyearsatRs.2.72lakhcrore (over$43billion)attheendofMarch2015.
  • P-Notes,mostlyusedbyoverseasHNIs(highnetworthindividuals),hedge fundsandotherforeigninstitutions,allowsuchinvestorstoinvestin Indianmarketsthroughregisteredforeigninstitutionalinvestors(FIIs).
  • Thissavestimeandcostsforinvestors,buttheflipsideisthatthe routecanalsobeusedforroundtrippingofblackmoney.
    AccordingtothedatareleasedbySecuritiesandExchangeBoardofIndia (SEBI),thetotalvalueofP-NoteinvestmentsinIndianmarkets(equity, debtandderivatives)rosetoRs.2,72,078croreattheendofMarchfrom Rs.2,71,752croreintheprecedingmonth.
  • ThisisthehighestinvestmentsinceFebruary2008,whenthecumulative valueofsuchinvestmentsstoodatRs.3.23lakhcrore.
  • ThequantumofFIIinvestmentsthroughP-Notes,too,climbedto11.3per centlastmonthfrom11.1percentinFebruary.
  • Tillafewyearsago,P-Notesusedtoaccountformorethan50percent ofthetotalFIIinvestments,buttheirsharehasfallenafterSEBI tightenedthedisclosurenormsandotherregulationsforsuchinvestments.
  • P-Noteshavebeenaccountingformostly15-20percentofthetotalFII holdingsinIndiasince2009,whileitusedtobemuchhigher—intherange of25-40percent—in2008.
  • Itwasashighasover50percentatthepeakofIndianstockmarket bull-runin2007.

Volvolaunchespetrolvariantofhatchback

  • SwedishcarmakerVolvo,launchedapetrolvariantofitsluxury hatchback,V40CrossCountry.
  • ThevehicleisavailableatapriceofRs.27lakh(ex-showroomMumbai). ThenewV40ispoweredbyT4Engine,1.6GDTi4Cylinder,6SpeedAutomatic transmissionsystem.
  • ItwillcompetewithGermanbrands’premiumhatchbacks—Mercedes-Benz’s A-Class,Audi’sentry-levelQseriesandBMW’s1seriesinthemarket.The V40hasreceivedthetopratingoffivestarsintheEuroNCAPcollision test.
  • Thecompanysaidthevehiclehadahostofpreventivesafetyfeatures.
  • Itsproductsaresoldthroughdealersin13citiesandVolvowillsoon adddealersinwestDelhiandKolkata.

CentrekeepsGPFrateat8.7%

  • ThegovernmenthaskepttherateofinterestonGeneralProvidentFund contributionsunchangedat8.7percentfor2015-16.Theratesareeffective fromApril1.
  • “ItwasdecidedbythegovernmenttolinktheinterestratesofState PFs[GeneralProvidentFundandothersimilarfunds],includingSpecial DepositScheme,1975[SDS,1975]forNon-GovernmentProvident, SuperannuationandGratuityFunds,fortheFY2015-16toPublicProvident Fund[PPF]rates,”saidaUnionFinanceMinistrystatement.
  • ThegovernmentrecentlymaintainedtheratesforthePPFat8.7percent for2015-16.
  • Interestratesforseniorcitizensinsmallsavingsschemeswillnowbe 9.3percentandfortheSukanyaSamriddhiAccountforthegirlchild,9.2 percent.

RishadPremjijoinsWiproboard

  • RishadPremji,sonofWiprofounderAzimPremji,appointedtotheboard.
  • AnalumnusoftheHarvardBusinessSchool,hewasservingasthechief strategyofficer,drivingmergersandacquisitions.
  • WhilehejoinstheboardonMay1,hewillcontinuetobetheexecutive chairmanofthecompany.
  • Mr.Premji,whojoinedWiproin2007,oversawthesettingupofWipro Ventures,aVCfundthatisaimedatinvestinginstart-ups.

ALedgesTataouttobecome2{+n}{+d}largestpick-upbrand

  • Inasurprisedevelopment,AshokLeylandhasovertakenitsrivalTata Motorsinpick-uptrucksalestograbtheNumber.2position.
  • Mahindra&Mahindraistheleaderinthissegment(2-3.5tonne),which makesuplittleoverhalfofthevolumesintheLCV(lightcommercial vehicle)cargomarket.
  • In2014-15,AshokLeylandsold24,414units(27,080unitsin2013-14), whichwerehigherthanTata’svolumesof21,231units(40,692unitsin 2013-14)inthepick-upcategory.
  • OnlyM&Mreportedgrowthinsalesat129,755units(123,175units)in 2014-15inpick-upsegment.
  • However,AshokLeylandhasbeenreportinggrowthinsalesofDostover thepastthreemonths.AshokLeylandhasamarketshareof14percentin thissegment,whileTata’smarketsharefellto12percentfrom21percent lastyear.M&Mhas73percentshare.
  • AshokLeylandsellsonlyDostinthissegment,whileTatasells2-3 products.Meanwhile,Tatacameoutwithanewpick-up,SuperAceMint, pricedatoverRs.5lakh,lastmonthtoboostsalesinthiscategory.

DaiichiexitsSunPharma;ends7yearsoftumultuousrideinIndia

  • JapanesedrugmakerDaiichiSankyo,solditsentirestakeofaround9 percentinSunPharmaceuticalIndustriesforoverRs.20,420crore,whichit receivedaftermergerofRanbaxyintheIndianfirm,endingitssevenyears oftumultuousexperienceinthecountry.
  • Thecompany,whichhadmayaforayintothegrowingIndian pharmaceuticalmarketbybuyingamajoritystakeinRanbaxyLaboratoriesin 2008forRs.22,000crore,soldover21croresharesinSunPharma.

TwittertohostdevelopermeetinBengaluru

  • Applicationdevelopersinthecountrysoonwillhaveachanceto experienceadvancedtoolsfromTwittertohelpthemcreatemore sophisticatedapps.
  • Themicro-bloggingsite,whichrecentlylauncheditsworldwidetour ‘TwitterFlock’,willhostAsia’sfirstroadshowinBengaluruonMay13.The eventiscomingtoIndiaafteritsvisittoLondon,BerlinandNewYork.
  • “Indiaisoneofthefastest-growingmarketsforTwittertoday,andis hometomanytoptechnologydevelopersinAsia.OurinauguralFlockmobile developerroadshownowcomestoIndia;Bengaluruwillplayhosttosomeof thecountry’sbestdevelopersontheMay13,”saidArvinderGujral, Director,BusinessDevelopment,SouthandSoutheastAsiainablogpost.
  • Accordingtotheagenda,theconferencewillbeginintheafternoonand willcontinuetill7p.m.Attheevent,TwitterwillintroduceFabric,a modularmobileplatform,whichitlaunchedinitsfirstdeveloperconference inOctoberlast.Theplatformwillhelpadevelopertobuildmobileapps mucheasier.
  • Severalsoftwareengineers,productmanagersanddeveloperadvocates fromtheFabricteamwilljoinanumberofIndianmobileappdevelopersat theevent.TheeventwillalsoprovideopportunityforIndiandevelopersto hearfromtheteamthatbuilttheplatform.
  • “Throughouttheevent,wewillsharedetailsonourtechnologysolutions tosupportyouindevelopingbetterapplications,”addedMr.Gujral.
  • Twitter’splantoconductitseventinIndiacomesasacertification forthegrowingstart-upactivityinthecountry.Earlierthisyear,Twitter hadmadeitsfirstacquisitioninIndiabybuyingZipdial.Thebuygave Twitterabout50employeesinIndiaandalsoanewengineeringofficein India.
  • “ForTwitter,IndiaandIndonesiaarehugemarkets.Lotofapplications arebeingbuiltusingTwitterAPIinIndia.ItalsohasaR&Dcentrenowin Indiawiththeacquisition.TheplanofTwittertoorganiseitsdeveloper conferenceinIndiaitselfisahugeendorsementforthestart-up community,”saidSharadSharma,co-founderofsoftwareproductthink-tank iSpirt.

Asiangiantspromisejobs,trade

  • SixtyyearsaftertheBandungConference,China,JapanandIndiaare openingtheirwallets,andperhapstheirhearts,towooAsiaandAfrica— signallinghowdevelopmentaleconomicshasupstagedthenon-aligneddoctrine thatwastheflavourofthedayin1955.
  • InhiskeynoteaddressattheAsianAfricanConference,Chinese PresidentXiJinping,announceddutyfreeaccessto97percentitems producedintheLeastDevelopingCountries,thathavediplomatictieswith China.
  • TheChinesePresidentalsoattemptedtobolsterhiscountry’sSoft Power,byofferingtotrain1,00,000peopleindevelopingcountriesinAsia andAfricaoverthenextfiveyears.
  • Hereiteratedhiscountry’sfocusonintegratinganddevelopingthe economiesofEurasiaundertheSilkRoadinitiative.
  • Chinahasdeployeda$40billionSilkRoadfund,andhasplayeda leadingroleinformingtheAsianInfrastructureInvestmentBank(AIIB), whichwillbeusedtodevelopinfrastructurealongtheAsianlegunderthe “beltandroad”plan.
  • BolsteredbyitspioneeringrolealongtheSilkRoad,PresidentXi advisedindustrialisedcountriesnottotiepoliticalconditionstotheir aidtodevelopingcountries.Healsocalledforinjectingpositivityin internationalrelations,whichshouldbebasedonfairness,andseekwin-win outcomes.
  • Atthesummit,Indiaalsoshowedthatithadfreshideastore-engage developingcountriesinAsiaandAfrica.ExternalAffairsMinisterSushma Swarajnotedinheraddressthatconsideringtheywerepartofitsextended neighbourhood,Indiahadlaunchedthe“ActEast”policytowardsAsia, complementedbythe“renewedAfricapolicy.”Indiawasalsocollectively engagingAfricaunderitsflagshipIndia-AfricaForumSummit,whosethird editionwouldbeheldinOctoberthisyear.
  • Japan,China’smainregionalrival,launcheditscharmoffensive targetingtheAfro-AsianclusterthathadassembledintheIndonesian capital.
  • “AsianandAfricannationsarenolongerJapan’saidrecipients,”said ShinzoAbe,JapanesePrimeMinister.“TheyarenowJapan’spartnersfor growth.”HepointedoutthatTokyowouldofferindustrialtrainingand technologyto3,50,000peoplethroughouttheregion.ThePrimeMinister addedthattradedealsundernegotiations,suchastheTrans-Pacific Partnership,RegionalComprehensiveEconomicPartnershipandFreeTradeArea oftheAsia-Pacific“willalleventuallyheadtowardAfrica.”
  • Thesummitprovidedanopportunityfora29minute,one-on-oneexchange betweenPresidentXiandPremierAbe.Attheendofthemeeting,which analystssaidsignalledrecognitionbybothcountriesoftheneednotto derailties,Mr.Abesoundedstatesmanlike.“Thedevelopmentofrelations betweenourcountriesisintheinterestsofthepeopleofJapanandChina,” heobserved.“Bypromotingstrategic,mutuallybeneficialrelations,we contributetothestabilityandprosperityoftheregionandtheworld.”

ReserveBankrevisesnormsforprioritysectorlending

  • TheReserveBankofIndia(RBI),saidthatmediumenterprises,social infrastructureandrenewableenergywouldformpartofprioritysectorin additiontotheexistingcategories.
  • “Thedistinctionbetweendirectandindirectagricultureisdispensed with,”theRBIsaid.
    Therevisedguidelinesareoperationalwithimmediateeffect.
  • However,itsaidtheprioritysectorloanssanctionedundertheearlier guidelineswouldcontinuetobeclassifiedunderprioritysectortill repayment/maturity/renewal.
  • Itprescribedatargetof8percentforthesmallandmarginalfarmers withinagriculture.RBIaskedbankstoachievethisinaphasedmanner,that is,7percentbyMarch2016and8percentbyMarch2017.
  • Atargetof7.5percenthasbeenprescribedformicroenterprises, whichalsohastobeachievedinaphasedmanner,thatis,7percentby March2016and7.5percentbyMarch2017.
  • Thereisnochangeinthetargetof10percentforweakersections,it addedForeignbanks,with20branchesandabove,alreadyhavepriority sectortargetsandsub-targetsforagricultureandweakersections,which aretobeachievedbyMarch31,2018,aspertheactionplanssubmittedby themandapprovedbyRBI.
  • Thesub-targetsforsmallandmarginalfarmersandmicroenterprises wouldbemadeapplicablepost2018afterareviewin2017,theRBIsaid.
  • “Foreignbankswithlessthan20brancheswillmovetototalpriority sectortargetof40percentonparwithotherbanksby2019-20,andthe sub-targetsforthesebanks,iftobemadeapplicablepost2020,wouldbe decidedinduecourse,”itadded.
  • Bankloanstofoodandagroprocessingunitswillformpartof agriculture.Exportcreditupto32percentwillbeeligibleaspartof prioritysectorforforeignbankswithlessthan20branches.
  • Forotherbanks,theincrementalexportcreditovercorrespondingdate oftheprecedingyearwillbereckonedupto2percent.
  • TheloanlimitsforhousingloansandMFIloansqualifyingunder prioritysectorhavebeenrevised.
  • RBIsaidtheprioritysectornon-achievementwouldbeassessedona quarterlyaveragebasisattheendoftherespectiveyearfrom2016-17 onwards,insteadofannualbasisasatpresent.

SEBIwarnsunlistedfirmsoftoughaction

  • Concernedoveralargenumberofunlistedfirmsfraudulentlyraising moneyfrompublic,marketregulatorSecuritiesandExchangeBoardofIndia (SEBI),warnedsuchcompaniesandtheirdirectorsof“stringentaction”and askedinvestorsnottobeluredbytheirschemes.
  • ThewarningcomesamidacontinuingcrackdownbySEBIagainstvarious unlistedcompaniesthathaveluredretailinvestorsbyissuingsecurities suchasnon-convertibledebentures/non-convertiblepreferencesharesinthe garbofprivateplacement.
  • SEBIsaidithastakenactionagainst112entities,sinceJanuary2013 forissuanceofsecuritiesintheformofnonconvertiblepreferenceshares/ nonconvertibledebenturestopublic,withoutcomplyingwiththeprescribed provisionsoflaw.
  • Suchsecuritieswereissuedwithoutcomplyingwiththeprescribed CompaniesActandSEBInorms.
  • “Companiesarecautionednottoissuesecuritiestopublicwithout complyingwithprovisionsoflaw...failingwhichSEBIwillbeconstraintto takestringentactionagainstsuchcompaniesandtheirdirectors.Investors arealsocautionednottosubscribetosuchissues.Investorsareadvisedto seewhetheranysuchentityhasfiledofferdocumentorfiledapplication withStockExchangeforlisting,”SEBIsaidinapublicnotice.
  • Sofarin2015itself,SEBIhaspassedordersagainstmorethan50 companiesinsuchcases.

RatanTatapicksupstakeinXiaomi

  • IconicbusinessleaderRatanTatahasacquiredastakeinChinese handsetmakerXiaomi,thefirstinvestmentbyanyIndianinthesmartphone maker.
  • Thecompanydeclinedtodisclosethequantumandvalueofthestake, whichTataGroup’sformerchiefhaspickedinhispersonalcapacity.
  • “WearetrulyexcitedtohaveMrTataonboard.Wewillseekhisadvice inourjourneytobecominganIndiancompany,”XiaomiIndiaheadManuJain told.
  • Mr.Tata,whoretiredasheadofover$100billionconglomeratein December2012andcurrentlyservesaschairmanemeritusofTataSons,has emergedasamajorventurecapitalinvestorsincehisretirement.
  • Hehasalreadymadepersonalinvestmentsinhomegrowne-commerceplayers likeSnapdeal,UrbanLadder,BluestoneandCardekho.com.InMarchthisyear, healsoinvestedinmobilecommercefirmPaytm.
  • “IndiaisourbiggestmarketoutsideofmainlandChinaandalsoan extremelyimportantone.Ourgoalistobecomenumberoneinthenext3-5 yearsandwearekeenonpartnershipshere,”Xiaomico-founderandpresident BinLinsaid.
  • Lastweek,Xiaomiannounceditsfirst‘madeforIndia’handsetMi4i, pricedatRs.12,999.
  • “MrTataisoneofthemostwell-respectedbusinessleadersinthe world.Aninvestmentbyhimisanaffirmationofthestrategywehave undertakeninIndiasofar.Thisisjustthestartofanexcitingjourney, andwearelookingforwardtobringingmoreproductsintoIndia,”XiaomiCEO Junsaid.
  • “WewanttobecomeanIndiancompany.ThatiswhywearebuildinganR&D teamhereandsettingupdatacentre.Wewanttomanufactureandalsoinvest instartupsinIndia,”Mr.Linsaid.
  • Indiancorporatehonchoshavebeenaggressivelyinvestinginthe burgeoningonlineretailsector.
  • WiproChairmanAzimPremjihasinvestmentsinMyntraandSnapdeal,while hisrivalandInfosysco-founderNarayanaMurthy(throughCatamaran Ventures)startedajointventurewithAmazontohelpsmallandmedium businessescomeonline.
  • InDecemberlastyear,Xiaomiraised$1.1billion,valuingthefirmat $45billion.Oftentoutedasthe‘AppleofChina’,thecompanyhasgrownto becomeamajorcompetitiontoglobalgiantslikeSamsungandApple.
  • WhilethecompanyalreadyranksatthetopinChinesemarket,inIndia itisamongthetopfiveplayersaspertheestimatesofresearchfirm Gartner.

CapgeminiacquiresiGATEfor$4billion

  • FrenchITservicescompanyCapgeminionMondayannouncedtheacquisition ofUS-basedITservicescompanyiGATEfor$4billion.
  • ThroughtheacquisitionCapgemeini,whichhassignificantpresencein theEuropeanmarket,istryingtowidenitspresenceinNorthAmerica.
  • Apartfromgettingastrong-holdintheUS,thebuyoutwillalsogive Capgemini’sIndianoperationsanewscale,allowingittocompeteonapar withtheUSandIndiancompanies.
  • Thecompanyco-foundedbySunilWadhwaniandAshokTrivediislistedin Nasdaq.However,majorityofitsworkforceisbasedinIndia.
  • “ThemergeragreementhasbeenapprovedunanimouslybybothCapgemini’s andiGATE’sBoardofDirectors.Thetransactionhasalsobeenapprovedby thewrittenconsentofshareholdersholdingamajorityofiGATE’sshares,” boththefirmssaid.
  • Atpresent,iGATEhasarevenueofaround$1.3billionandover30,000 employeesspreadacrossitscentresinIndia,theUS,EuropeandChina.
  • InIndia,iGATEhascentresinBengaluru,Mumbai,Pune,Chennai, Hyderabad;whiletheFrenchmajorhasitscentresinninelocationsand employsmorethan50,000people.
  • Thedealissubjecttonecessaryapprovalsandisexpectedtoclosein thesecondhalfof2015andiGATEwillbecomethesubsidiaryofCapgemini NorthAmerica.

MinimumsupportpriceforcottonincreasedbyRs.50

  • Takingnoteofthedistresstocottongrowersfromfallincotton prices,theCentre,onWednesday,announcedahikeofRs.50perquintaleach intheminimumsupportpriceofmedium-andlong-staplecottonfor2014-15. ItauthorisedtheMaharashtraStateCo-operativeCottonGrowersMarketing FederationtoundertakeMSPoperations.
  • TheCabinetCommitteeonEconomicAffairs(CCEA),chairedbyPrime MinisterNarendraModi,alsodecidedtorestorethecutsinMSPfor procurementofsub-standardwheatfromfarmers,whohadsufferedcropdamage inrainandsquallhitStates.
  • TheCentrewillreimbursetheamountofvaluecutimposedonthewheat beingprocuredbytheFoodCorporationofIndia(FCI)andStateGovernment agenciesinGujarat,Haryana,MadhyaPradesh,Punjab,RajasthanandUttar Pradeshunderrelaxedqualitynorms.Sofar,158.61lakhtonnesofwheat havebeenprocuredagainstatargetof169.29lakhtonnespurchasedinthe correspondingperiodlastyear.Inthecaseofcottonprocurement,theCCEA gaveitsex-postfactoapprovalforengagingtheFederationtoprocure cottonasasub-agentoftheCottonCorporationofIndia(CCI)duringthe 2014-15cottonseason.“Thisisaimedatsafeguardingtheinterestofthe farmersandavoidinganydistresssale,”saidanofficialspokesman.
  • TheMSPforcottonwasfixedatRs.3,750formediumstapleandRs.4,050 forlongstaplefor2014-15.
  • TheCCEAfurtherapprovedanadditionalfiscalallocationundernon-plan granttomeettheanticipatedlossesindisposalofcottonbyCCIandthe Federationfortheyear.
  • “Thedecisionwillenableinpricesupportoperationsof110lakhbales (100lakhbalesbyCCIand10lakhbalesbytheFederation)duringthe currentcottonseasonandhelpstabilizecottonpricesandalleviatefarmer distress,”thespokesmanadded.
  • TheFederationwillprocurecottonfromfarmersinMaharashtra,in additiontoCCI,onthesamelinesasCCIisdoing.
  • TheFederationhadearlierprocuredcottonunderMSPastheagentof NationalAgriculturalFederation(NAFED)inMaharashtraonthebasisof agreementbetweencentralagency,NAFEDandtheFederation.

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