Franklin India Income Fund announces change in name

With effect from 01 December 2014 

Franklin Templeton Mutual Fund has announced change in name of Franklin India Income Fund. The name of Franklin India Income Fund (FIINCF) stands changed to Franklin India Dynamic Accrual Fund (FIDA) with effect from 01 December 2014. 

All the other terms and conditions of the Scheme Information Document, read with the addenda issued from time to time will remain unchanged.

Birla Sun Life Fixed Term Plan - Series ME (1099 days) extends NFO closing date

The scheme NFO will now close on 10 December 2014 Birla Sun Life Mutual Fund has announced the extension of the closing date for the New Fund Offer (NFO) of Birla Sun Life Fixed Term Plan - Series ME (1099 days). The NFO has been extended by 14 days and the revised closing day is 10 December 2014. 

Accordingly, the New Fund Offer of Birla Sun Life Fixed Term Plan - Series ME (1099 days), a close ended income scheme is open for subscription from 26 November 2014 to 10 December 2014. 

SBI Mutual Fund announces changes

SBI Mutual Fund has approved for participation in repo in corporate debt securities by all schemes/plans of SBI Mutual Fund except SBI Magnum Gilt Fund-Long Term Plan, SBI Magnum Gilt Fund-Short Term Plan, SBI Nifty Index Fund & SBI Benchmark Gsec Fund as per the guidelines issued by RBI from time to time subject to the following conditions: 

1. The gross exposure of any scheme to repo transactions in corporate debt securities shall not be more than 10% of the net assets of the concerned scheme 

2. The cumulative gross exposure through repo transactions in corporate debt securities along with equity, debt and derivatives shall not exceed 100% of the net assets of the concerned scheme. 

3. The schemes shall participate in repo transactions only in AA and above rated corporate debt securities. 

4. The schemes shall borrow through repo transactions only if the tenor of the transaction does not exceed a period of 6 months in terms of Regulation 44 (2) of Sebi (Mutual Funds) Regulations, 1996. 

HDFC MF Monthly Income Plan-Long Term Plan announces change in exit load

With effect from 01 December 2014  

HDFC Mutual Fund has announced change in exit load in HDFC MF Monthly Income Plan-Long Term Plan, open ended income scheme, with effect from 01 December 2014. Accordingly, the revised exit load will be: 

In respect of each purchase/switch-in of units exit load of 2% is payable if units are redeemed/ switched-out within 12 months from the date of allotment. 

In respect of each purchase/switch-in of units exit load of 1% is payable if units are redeemed/ switched-out after 12 months but within 24 months from the date of allotment. 

In respect of each purchase/switch-in of units exit load of 0.50% is payable if units are redeemed/ switched-out after 24 months but within 36 months from the date of allotment. 

No exit is payable if units are redeemed/ switched-out after 36 months from the date of allotment. 

The aforesaid change will be applicable on a prospective basis i.e. in respect of subscriptions made in the scheme from the effective date.

Mutual funds in buying mode

Net inflow of Rs 64.40 crore on 24 November 2014

Mutual funds bought shares worth a net Rs 64.40 crore on Monday, 24 November 2014, compared to net inflow of Rs 567.10 crore on Friday, 21 November 2014. 

The net inflow of Rs 64.40 crore on 24 November 2014 was a result of gross purchases of Rs 598.90 crore and gross sales of Rs 534.50 crore. The S&P BSE Sensex garnered 164.91 points or 0.58% to settle at 28,499.54, its record closing high. 

Mutual funds have bought shares worth Rs 99.10 crore in November 2014 so far (till 24 November 2014). They had purchased shares worth Rs 5939.70 crore in October 2014. 

Sebi tightens norms on Offshore Derivative Instruments

Allows continuation of existing ODI contracts till expiry 

Stock market regulator Securities and Exchange Board of India (Sebi) has imposed restrictions on issue of Offshore Derivative Instruments (ODIs) by foreign portfolio investors (FPIs). In a circular issued yesterday, 24 November 2014, Sebi said that a foreign portfolio investor (FPI) shall issue ODIs only to those ODI subscribers who are resident of a country whose securities market regulator is a signatory to International Organization of Securities Commission's Multilateral Memorandum of Understanding or a signatory to bilateral Memorandum of Understanding with Sebi. If the ODI applicant is a bank, the central bank of the country must be a member of Bank for International Settlements. An FPI cannot issue ODIs if the applicant is not resident in a country identified in the public statement of Financial Action Task Force as a jurisdiction having a strategic Anti-Money Laundering or Combating the Financing of Terrorism deficiencies to which counter measures apply or a jurisdiction that has not made sufficient progress in addressing the deficiencies or has not committed to an action plan developed with the Financial Action Task Force to address the deficiencies. 

An FPI shall issue ODIs only to those subscribers which do not have opaque structures, Sebi said in a circular. Sebi also said that the investment restrictions which are applicable to FPIs will also apply to ODI subscribers. 

Existing ODI positions which are not in conformity with these latest conditions imposed on issue of ODIs, can be continued till the expiry of the ODI contract. No additional issuances/renewal/rollover of such positions shall be permitted, Sebi said. The conditions imposed on issue of ODIs will come into effect immediately, Sebi said. 

Stock Reports

Siemens to pay dividend for FY ended 30 September 2014 

On 06 February 2014 

Siemens announced that the dividend of Rs. 6 per Equity Share (300%) of Rs. 2/- each for the Financial Year ended 30 September 2014 will be paid on 06 February 2015, if declared at the ensuing Annual General Meeting of the Company. 

 

Punjab National Bank fixes record date for stock split 

Record date is 19 December 2014 

Punjab National Bank has fixed 19 December 2014 as Record Date for the purpose of ascertaining the eligibility of Shareholders to receive 5 (Five) Equity Shares of nominal value of Rs. 2/- each in lieu of 1 (One) Equity Share of nominal value of Rs. 10/- each of the Bank on account of reduction / split in Face Value of its Equity Shares.

 

Roto Pumps fixes record date for stock split 

Record date is 28 November 2014 

Roto Pumps has fixed 28 November 2014 as the Record Date for the purpose of Sub-division / Stock Split of Rs. 10/- per share of the Company into the five shares of Rs. 2/- each. 

 

 

 

Expert Committee Constituted to Review E-Forms in order to Simplify Procedures for Stakeholders Under the Companies Act

The Government has recently constituted an Expert Committee to review e-forms and other overall filing process, in order to simplify procedures for stakeholders. The Committee will (a) review the ‘e-forms' notified under the Companies Act, 2013, (b) suggest changes aimed at simplification of such forms and (c) removal of difficulties faced by stakeholders. The Committee has been asked to submit its report within two months.

Implementation of New Accounting Standards mandatorily from financial year 2016-17

In accordance with the announcement in the Budget Speech 2014-15, the Indian Accounting Standards (Ind-AS), based on the International Financial Reporting Standards (IFRS), will be notified for voluntary adoption from the financial year 2015-16 and mandatorily from financial year 2016-17. Banks, Financial Institutions and Insurance Companies may be brought under the purview of the standards at a later date. The class of companies to which these standards will apply are being finalised and would be notified alongwith the Ind-AS. 

Deduction Of Premium Of NAIS

National Agricultural Insurance Scheme (NAIS) being compulsory for loanee farmers, the Banks are required to deduct the premium from the loan amount of farmers including Kisan Credit Card (KCC). 

In fact, the experience has been that under NAIS the claims paid to farmers against crop loss are much more than the premium collected. As against the premium of Rs.10445.65 crore collected from farmers since inception of the scheme in the year 1999, the claims paid till Rabi 2013-14 (as on 20.11.2014) has been Rs.32860.84 crore. Whenever and wherever there is shortfall in yield as compared to threshold yield as per data provided by State Governments, the compensation as admissible under the scheme is paid to the farmers. 

Government has recently revised the NAIS and introduced Modified National Agricultural Insurance Scheme (MNAIS) as one of the components of National Crop Insurance Programme (NCIP), which is comparatively more farmer's friendly. Further, improvement in existing Crop Insurance Schemes is a continuing process to ensure that farmers are compensated adequately when they suffer damage to their crops due to any non-preventable risks. 

The crop insurance is presently based on area approach. However, with a view to ensure that farmers do not suffer, the unit area of insurance has been reduced to village/village Panchayat level under Modified NAIS. Further, a provision has also been made to settle claims in case of localized calamities like hailstorm etc. at individual basis. 

Mumbai-Goa Highway Gets Widened

The Minister of State for Road Transport and Highways, Shri Pon. Radhakrishnan said that the four-laning of Panvel to Indapur Section (length=84 kms) has been taken up on PPP basis under NHDP III which is under implementation with a cost of Rs.942.69 crore and four-laning of Zarap to Patradevi section from km 0/000 to 21/508 (length=21.508 kms) has been completed with a cost of Rs.264.05 crore. 

A Feasibility Study Report for four-laning of Indapur to Zarap Section has been approved by the Ministry. Feasibility Study Report and Detailed Project Report from Maharashtra/Goa border to Goa/Karnataka border section have been commissioned by Government of Goa. 

The estimated cost of projects including pre-construction activities is Rs.4121 crore as per Feasibility Study Report. The type of construction material is proposed as per relevant IRC codes, Ministry's Standard and Specification and site condition. The Panvel to Indapur section is being constructed with flexible pavement. 

The Panvel to Indapur Section is under implementation on PPP model by NHAI as executing agency and M/s Supreme Panvel Indapur Tollways Pvt Ltd as Concessionaire. Maharashtra PWD is executing agency for Indapur to Zarap Section. The mode of delivery of projects for Indapur to Zarap Section may be PPP/EPC model based on financial viability of the project. 

Optimism Continues but Growth Likely to Moderate in Manufacturing in Q-3: FICCI Survey

Investment Outlook Remains Subdued in Manufacturing: FICCI Survey 

FICCI's latest Quarterly Survey on manufacturing remains optimistic about the Q-3 of 2014-15 but expects moderation in the manufacturing sector growth in Q-3 of 2014-15 as compared to Q-2 of 2014-15. The outlook on the basis of FICCI Manufacturing Survey for Q-3 of 2014-15 is less optimistic than in Q-2 2014-15 for the manufacturing sector as proportion of respondents expecting higher production vis-à-vis last year has fallen to 52% in Q-3 from 62% in Q-2. Since, only 11% respondents expect a fall in their growth in Q3 2014-15 vis-à-vis last year, growth, though low is expected in Q-3 2014-15 for manufacturing, as per the Survey. More importantly, the growth is likely to be broader based as twelve out of thirteen sectors are expected to show improvement in production.
The survey gauges the expectations of manufacturers for Q-3 (October – December 2014-15) for thirteen major sectors namely textiles, capital goods, metals, chemicals, cement and ceramics, electronics, auto components, leather & footwear, machine tools, Food & FMCG, tyre, paper and textiles machinery. Responses have been drawn from 392 manufacturing units from both large and SME segments with a combined annual turnover of over Rs 4 lac crore. 

In terms of order books, 43% respondents have reported higher order books for October – December 2014-15 (Q-3) which remains same as in the previous quarter (Q-2) indicating no significant change in the demand conditions noted the Survey. Inventory levels too continue to indicate subdued demand scenario as currently around 37% respondents reported that they are carrying more than their average inventory levels (as compared to 20% respondents in Q2, 29% in Q-1 2014-15, 32% in Q-4 of 2013-14, 24% in Q-3 of 2013-14). Another 49% are maintaining their average inventory levels as reported. 

In terms of investment also it remains subdued in manufacturing sector as was the case for previous quarters also. For Q-3 2014-15, 74% respondents as against 71% respondents in Q2 and 69% respondents in Q-1 2014-15 reported that they don't have any plans for capacity additions for the next six months. Large unutilized capacity is the major reason for not many fresh investments proposals. In many sectors, average capacity utilization has almost remained same in Q-2 of 2014-15 as was in Q-1 of 2014-15. These are sectors like metals, tyre, textile machinery, capital goods. On the other hand capacity utilization has slightly improved in Q-2 in sectors like cement and ceramics, chemicals, textiles and food. 

Export outlook for manufacturing in Q-3 2014-15 has improved slightly from previous two quarters but it remains weak and uncertain. The proportion of respondents expecting higher exports in Q-3 2014-15 (October – December) is 42% as compared to 40% in Q-2 2014-15 (July – September) and 36% in Q-1 2014-15 (April-June 2014-15). 

As over 73% respondents are reportedly not likely to hire additional workforce in next three months, hiring outlook remains bleak indicating that manufacturing units are not expected to make any significant additions to their existing workforce in coming months. 

Based on expectations in different sectors, the Survey pointed out that four out of thirteen sectors were likely to witness low growth (less than 5%). Four sectors namely, paper, cement and ceramics, machine tools and leather and footwear are expected to have a strong growth of over 10% in October – December 2014-15 and rest all the sectors likely to witness moderate growth.

Agreement on TDA a big deal – USTR Froman

Ahead of the minister level meeting of the Trade Policy Forum (TPF), the first in four years, US Trade Representative Mr Michael Froman described the agreement reached by India and the US on the World Trade Organization's Trade Facilitation Agreement (TFA) aimed at unlocking progress at the World Trade Organization (WTO) as a “big deal”. 

“The TFA is a big deal which will be effective in reducing the cost of doing business for developed countries by 10 per cent and that for developing countries by 14 per cent, adding billions of dollars to the world economy,” Mr Froman said, addressing a packed house of senior industry leaders of FICCI and senior officials and representatives of the US Embassy. 

Mr Froman informed the audience that India and the US were working side by side in Geneva to address the outstanding issues relating to the TFA and the agreement with India would help to move forward with full implementation of the TFA. Mr Froman also said that the agreement would facilitate entry of small businesses in the global supply chain. Small business enterprises help to generate employment and command 40 per cent of Indian exports. India would be a big beneficiary of this agreement which creates a win-win scenario. 

Mr Froman said that the agreement which also reflects shared understandings regarding the WTO's work on food security, is in sync with US commitment to address big needs of India's food security. Attributing the success of the breakthrough to the personal involvement of President Obama and Prime Minister Modi, Mr Froman said, India and the US can look forward to working with all WTO members to reach a consensus that enables full implementation of all elements of the landmark Bali Package, including the Trade Facilitation Agreement. 

Welcoming the restart of the TPF, the premier bilateral forum for discussion and resolution of trade and investment issues between the two countries, Mr Froman pointed out that this was the first trade policy forum in four years, marking an important development in the historic turn in the India-US relations. 

Describing Prime Minister Narendra Modi's visit to the US in September and his Madison Square meeting as a ‘blockbuster event”, Mr Froman highlighted the importance of the forthcoming visit of the US President Barack Obama which would mark the first ever presence of a US President in the India's Republic Day celebrations as well as the first time that a US President would visit India twice in a tenure. India, US relations are being increasingly defined by strategic dialogue, high technology and higher education and this piece of engagement should not come as a surprise given President Obama's commitment to deliver for successful partners. 

Mr Froman said that the key to success of India's manufacturing future encased in the “Make in India” initiative lies in India-US collaboration in innovation and entrepreneurship and India's focus on intellectual property, piracy and counterfeiting. 

Earlier, addressing the gathering, Mr Sidharth Birla, President FICCI, welcomed the restart of the Trade Policy Forum (TPF), a key dialogue between India and United Ambassador States on trade and investments. “Our trade which has grown 5-fold since 2000, to about US $100 billion annually, can expand five-fold. I am sure that we can address momentary frictions through dialogue. I believe that difficult communications are preferable to no communication, and finding solutions with mutual respect cements and strengthens partnerships,” Mr Birla added. 

Mr Birla said that while India remains on the Priority Watch List 2014, the Trade Policy Forum provides the opportunity to discuss IP issues constructively. “The tenets of Indian IP policies, laws and regulations essentially reflect India's development priorities. For example, our IP policy in public health has the overarching objective of providing accessibility and affordability of medicines, particularly in India. Our Government is fully conscious of the important role IP plays in India`s growth and competitiveness, as well as strengthening relations with trading partners. The Government can be counted on to formulate a comprehensive and integrated IP Policy,” Mr Birla added. 

Government Issued Dated Securities Worth Rs.1,54,000 Crore During the Quarter Taking The Gross Borrowings to Rs.3,52,000 Crore

Quarterly Report on Public Debt Management for the Quarter July to September 2014 Released 

During Q2 of Fiscal Year 2014-15 (FY15), the Government issued dated securities worth Rs.1,54,000 crore taking the gross borrowings for HY1 of FY 15 to Rs.3,52,000 crore (58.7 per cent of BE), as compared to Rs.3,44,000 crore (59.4 per cent of BE) in H1 of FY 14. Net market borrowing (including repurchases) during the first half of FY 15 at Rs.2,76,887 crore or 56.0 per cent of BE was higher than Rs.2,69,265 or 55.6 per cent of BE in the previous year. The government repurchase securities worth Rs.18,805 crore during September 2014 to prematurely redeem the Government Stocks by utilizing surplus cash balances. Auctions were reduced by Rs.16,000 during Q2 of FY 15 from the proposed auction calendar for H1 FY15 in March 2014, after review of Central Government's cash position. During the quarter, emphasis on re-issues was continued with a view to build up adequate volumes under existing securities imparting greater liquidity in the secondary market. One new benchmark security of 10 year maturity (8.40 per cent GS 2024) was issued during the quarter on July 28, 2014. The amount issued under new securities constituted Rs. 32,000 or 20.8 per cent of total issuances during Q2 of FY 15. The weighted average maturity (WAM) of dated securities issued during Q2 of FY15 at 14.70 years was higher than 14.13 years for dated securities issued in Q1 of FY15. The weighted average yield of issuance during Q2 of FY15 also declined to 8.67 per cent from 8.92 per cent in Q1 of FY15, reflecting moderation in yields during the quarter. Liquidity conditions in the economy remained comfortable during the quarter, barring period of advance tax outflows, with the liquidity deficit, as reflected by net borrowings from RBI, remaining near the Reserve Bank's stated comfort zone. The cash position of the Government during Q2 of FY15 was comfortable during the quarter barring a few occasions, when it took recourse to WMA. 

The Public Debt (excluding liabilities under the ‘Public Account') of the Central Government provisionally increased by 2.7 per cent in Q2 of FY 15 on Q-o-Q basis as compared with an increase of 3.7 per cent in the previous quarter (Q1 of FY15). Internal debt constituted 91.7 per cent of public debt as at end-September 2014, while marketable securities accounted for 83.9 per cent of public debt. About 28.4 per cent of outstanding stock has a residual maturity of up to 5 years, which implies that over the next five years, on an average, 5.68 per cent of outstanding stock needs to be rolled over every year. Thus, the rollover risk in the debt portfolio continues to be low. The implementation of budgeted buy back/ switches in coming quarters is expected to reduce roll over risk further. 

In the secondary market, bond yields in Q2 FY 15 opened steady but remained cautious. After initial hardening in yields, G-Securities, traded in the range of 8.40-8.80 per cent during Q2 of FY 15. Market worries relating to higher fiscal deficit in the first two months of the financial year drove the yields marginally higher to quarter high in mid-July 2014. 

Subsequently, the re-assurance by Finance Minister regarding fiscal prudence and RBI notification regarding enhancing the debt investment limit in G-sec by FIIs led to fall in yields. Further, other factors such as reduction in Government borrowing plan, positive Q1 FY 15 GDP numbers, weaker than expected US nonfarm payroll data, declining crude prices touching a 14 month low in first week of September 2014, moderation in CPI inflation, buyback of September 2014, led to softening of the yield and the 10 year benchmark yield closed at 8.51 per cent as on September 30, 2014. This gradual decline in yield was halted occasionally on account of factors, such as some changes proposed by RBI for the G-sec auctions, geopolitical news coming out of Iraq and Ukraine, data and Fed announcements from US etc. Overall bonds yields moderated across the curve as against previous quarter and the yield curve flattened at the longer end of the curve. Trading volumes, on an outright basis, were lower by 23.17 per cent over the previous quarter, due to lower trading on account of Central government dated securities. The annualised outright turnover ratio for Central government dated securities for Q2 of FY15 decreased to 3.90 from 5.30 during the previous quarter. 

Stronger policy response needed to avoid risks to growth, especially in the euro area, says OECD in latest Economic Outlook

Although inflation is falling in India, monetary policy should not be loosened until inflation expectations adjust downward and the path of disinflation is well-entrenched 

Modest global economic forecasts, continuing high unemployment, and downshifts in potential output should spur governments with a greater sense of urgency to fully employ monetary, fiscal and structural policy levers to support growth, notably in Europe, according to the Economic Outlook 

The Economic Outlook draws attention to a global economy stuck in low gear, with growth in trade and investment under-performing historic averages and diverging demand patterns across countries and regions, both in advanced and emerging economies. 

“We are far from being on the road to a healthy recovery. There is a growing risk of stagnation in the euro zone that could have impacts worldwide, while Japan has fallen into a technical recession,” OECD Secretary-General Angel Gurria said. “Furthermore, diverging monetary policies could lead to greater financial volatility for emerging economies, many of which have accumulated high levels of debt.” 

Global GDP growth is projected to reach a 3.3% rate in 2014 before accelerating to 3.7% in 2015 and 3.9% in 2016, according to the Outlook. This pace is modest compared with the pre-crisis period and somewhat below the long-term average. 

The euro area is projected to grow by 0.8% in 2014, before slight acceleration to a 1.1% rate in 2015 and a 1.7% rate in 2016. 

A prolonged stagnation in the euro area could drag down global growth and have knock-on effects on other economies through trade and financial links. A scenario in the Outlook shows how a negative shock could lead an extended period of very low growth and very low euro inflation, resulting in unemployment remaining at its current unacceptably high level. 

“With the euro zone outlook weak and vulnerable to further bad news, a stronger policy response is needed, particularly to boost demand,” said OECD Chief Economist Catherine L Mann. “That will mean more action by the European Central Bank and more supportive fiscal policy, so that there is space for deeper structural reforms to take hold. A Europe that is doing poorly is bad news for everyone.” 

Among the major advanced economies activity is gaining strength in the United States, which is projected to grow by 2.2% in 2014 and around 3% in 2015 and 2016. In Japan, growth was impacted by consumption tax hikes in 2014, with expected growth of only 0.4% in 2014, and rises modestly to 0.8% in 2015 and 1% in 2016. 

Large emerging economies are projected to show diverging performance over the coming years. A slowdown in China, towards more sustainable growth rates, will see GDP growth drop from a 7.3% growth rate in 2014 to a 7.1% rate in 2015 and a 6.9% rate in 2016. 

However, the rapid increase in credit, rising share of non-bank credit as well as housing market and local government activity are raising concerns about financial stability. A scenario in the Outlook shows that a 2-percentage point decline in the growth of Chinese domestic demand would lower global GDP by 0.3 percent per year. 

“The Chinese authorities will need to use all of their policy instruments to keep the economy on an even keel,” Ms Mann said. 

Activity is projected to pick up gradually in India. Corporate investment is recovering swiftly as business confidence has been boosted by the decline in political uncertainty and the commitment by the government to reduce red tape. Efforts to put large stalled infrastructure projects back on track are also beginning to pay off. Tight fiscal and monetary policies are needed to contain inflation, but will also restrain domestic demand. The current account deficit will increase slightly as domestic demand strengthens but remain sustainable. 

Although inflation is falling in India, monetary policy should not be loosened until inflation expectations adjust downward and the path of disinflation is well-entrenched. The adoption of the proposed flexible inflation-targeting monetary policy framework would help to stabilise expectations around the target. Fiscal consolidation should be pursued, but it is critical to improve its quality. Reviving inclusive growth will require deep structural reforms to better target subsidies, increase further investment in social and physical infrastructure, improve the business environment and modernise labour and tax laws. 

FPIs continue buying

Net inflow of Rs 495.24 crore on 24 November 2014 

Foreign portfolio investors (FPIs) bought shares worth a net Rs 495.24 crore on Monday, 24 November 2014, compared with inflow of Rs 269.51 crore on Friday, 21 November 2014. 

The net inflow of Rs 495.24 crore on 24 November 2014 was a result of gross purchases of Rs 4461.37 crore and gross sales of Rs 3966.13 crore. There was a net inflow of Rs 416.67 crore in the secondary equity market on 24 November 2014, which was a result of gross purchases of Rs 4382.80 crore and gross sales of Rs 3966.13 crore. The S&P BSE Sensex garnered 164.91 points or 0.58% to settle at 28,499.54, its record closing high on that day. 

There was a net inflow of Rs 78.57 crore from the category 'primary market & others' on 24 November 2014, which was a result of gross purchases of Rs 78.57 crore and nil gross sales. 

FPIs have bought shares worth a net Rs 11542.56 crore in this month so far (till 24 November 2014). They have bought shares worth a net Rs 10750.58 crore from the secondary markets in this month so far (till 24 November 2014). FPIs sold shares worth a net Rs 1171.51 crore last month. They sold shares worth a net Rs 2010.97 crore from the secondary markets last month. 

FPIs have bought shares worth a net Rs 93808.70 crore in this calendar year so far (till 24 November 2014). They have bought shares worth a net Rs 84221.70 crore from the secondary equity markets in this year so far (till 24 November 2014). 

Rupee gains on dollar sales

At 61.86/87 per dollar 

Dollar selling by the custodian banks and a large corporate which helped offset importer demand for the greenback, helped further losses in the rupee.

  Rupee closed at 61.86/87 per dollar on Tuesday (25 November 2014), versus its previous close of 61.9350/9450 per dollar on Monday.

Bond yield closes steady

10-year G-sec Paper yield closes at 8.16% 

The yield on 10-year benchmark federal paper, 8.40% GS 2024, closed steady at 8.16% same as close in the previous trading session. The total trading volume on central bank's gilts trading platform stood Rs 43,330 crore. 

Bond yield closed steady, after moving in a tight 8.14%-8.16% as the sentiment remained positive on hopes India's central bank would cut interest rates. 

The weighted average rate in the overnight call money closed eased to 7.86% compared to 8.01% in previous session. The call money rate hovered in the range of 6.30% to 8.30% with the volume of Rs 10,770.10 crore. 

The State Development Loan auction worth Rs 15,150 crore held today was fully subscribed. 

The state of Tamil Nadu retained additional subscription worth Rs 375 cr. The cut-off yields for the 10-year securities were set at 8.43% for Gujarat, Haryana, & Rajasthan, 8.44% for Kerala, Maharashtra, & Tamil Nadu, 8.45% for Bihar, Himachal Pradesh, Karnataka, Madhya Pradesh, Uttar Pradesh, & West Bengal, and 8.46% for Andhra Pradesh & Nagaland. The cut-off yield for 5-year security auction of the state of Punjab was set at 8.45%. 

Nifty December 2014 futures at premium

Turnover surges 

Nifty December 2014 futures were at 8522.15, a premium of 59.05 points over spot closing of 8463.10. Nifty November 2014 futures were at 8472.90, a premium of 9.80 points over spot closing of 8463.10. Turnover on NSE's futures & options (F&O) segment rose to Rs 391153.48 crore from Rs 239486.27 crore on Monday, 24 November 2014. 

HDFC Bank November 2014 futures were at 958, at a marginal premium over spot closing of 957.25. 

State Bank of India November 2014 futures were at 306.15, at a premium over spot closing of 305.30. 

ICICI Bank November 2014 futures were at 1738.65, at a marginal premium over spot closing of 1738. 

In the spot market, the 50-unit CNX Nifty fell 67.05 points or 0.79% to settle at 8,463.10, its lowest closing level since 20 November 2014. 

The November 2014 derivatives contract expire on Thursday, 27 November 2014.

Asia Pacific Market: stocks fall on profit taking

Headline equities of the Asia Pacific market closed mostly down on Tuesday, 25 November 2014, as investors largely took their foot off the pedal following stellar gain prior day that came on the back of China's surprise decision last week to slash interest rates for the first time in two years and dovish comments from European Central Bank President Mario Draghi Friday night. 

The People's Bank of China surprised the market after market hour on last Friday by cutting its benchmark lending rate by 0.40% to 5.6%, the first reduction since July 2012, in a bid to kick-start growth. The deposit rate was cut by a smaller 0.25% to 2.75%. 

The market participants are in caution before the U.S. economic data and an OPEC meeting outcome. The U.S. Commerce Department is scheduled to release its second of three estimates of how fast the U.S. economy grew in the July-September quarter. The outcome of the Organization of Petroleum Exporting Countries meeting in Vienna on Thursday is eagerly awaited to check for a possible agreement to cut production to shore up prices. 

Among Asian bourses
 
Aussie market slips 0.5% on profit booking 

Australian share market closed down, as investors booked part profit following strong gain yesterday. Most of the ASX sectoral indices declined, with shares mining and energy players declined the most amid worries about weaker commodity prices, while banks mixed on caution ahead of release of the Murray Inquiry. The S&P/ASX 200 index and broader All Ordinaries index both closed 0.5% to 5334.80 and 5320.90, respectively. 

Shares of mining and energy companies stumbled as soft iron ore futures prices pointed to the price of the commodity falling to below $US70 a tonne, and as oil prices were trading weak ahead of an Organisation of the Petroleum Exporting Countries (OPEC) meeting on Thursday. Resources giant BHP declined 2.4% to A$32.41, while Rio Tinto, Australia's biggest iron ore miner, fell 1.5% to A$57.41. Fortescue Metals Group, the third-largest exporter of the steel-making commodity, tanked 5.7% to A$2.81. ARRIUM slipped 5.7% to A$0.25. 

The major banks were mixed on caution ahead of release of the Murray Inquiry. Global credit rating agency Fitch Ratings said the big four banks could be forced to increase their capital buffers by up to $53 billion if the Financial System Inquiry took aggressive measures to shore up the banking system. The capital shortfall is almost double the combined $29 billion of profits of the big four banks. 

Westpac Banking Corp rose 0.3% to A$32.60 and ANZ Banking Group climbed up 0.7% to A$32.10, while Commonwealth Bank of Australia fell 0.3% to A$80.17 and National Australia Bank slipped 0.8% to A$32.15. Global insurer QBE shares edged up 0.28% to $10.95 after news the company raised $US700 million through the issue of 30 year "Tier II" capital securities. The raising formed part of QBE's capital plan and will be used to pay down senior debt, a company statement said. 

Nikkei rises 0.33%, catching up after holiday 
 
Japanese share market finished modest higher, catching up gain in the global market yesterday on the back of a surprise rate-cut from China and dovish comments from European Central Bank President Mario Draghi. Market interest was also seen boosted by the listing debut of the JPX-Nikkei Index 400 futures contract. The Nikkei 225 Stock Average gained 0.3% to 17407.62. Japanese stock markets were shut yesterday for a holiday. 

The Bank of Japan kept a pledge to expand the monetary base at an annual pace of 80 trillion yen ($677 billion). The BOJ is committed to achieving its target of 2% inflation and that will make it costly for companies to hoard cash, central bank Governor Haruhiko Kuroda said in a speech to business leaders in Nagoya today. 

The Osaka Securities Exchange launched JPX-Nikkei Index 400 futures as a listed product on Tuesday, to popular success. Volume for the near-term December contract totalled over 70,000 contracts, almost double the Nikkei 225 December futures' tally. 

Shares of insurance companies and tyre makers gained the most in Tokyo market today. Dai-ichi Life Insurance added 2.6% to 1,747 yen. Bridgestone rose 1.6% to 3,980.5 yen.
Sony Corp shares jumped 6.1% to 2582.50 yen after Jefferies Group raised its share price forecast target 29% to 3,520 yen, citing CFO Kenichiro Yoshida's efforts to reduce the company's exposure to low-profit-margin consumer electronics. 

Sanix surged 20% to 604 yen on a report utilities will resume buying power produced from renewable sources, with Kyushu Electric Power Co. planning to resume purchases as early as this year. 

Shanghai Composite hits fresh three-year high
 
Mainland China share market advanced to three year high, as appetite for risk assets continued to cheer for second straight day after surprise interest rate cut by China's central bank last week. The Shanghai Composite spurted 34.72 points, or 1.37%, to 2567.60 at the close, adding to yesterday's 1.9% advance. Full-day turnover was strong, with 314.32 billion shares changed hand worth of 282.16 billion yuan. 

Shares in interest rate linked companies climbed up as the rate cut could reduce their borrowing costs. Zijin Mining Group Co. jumped 5.6% and Aluminum Corporation of China added 2.7%. Poly Real Estate rose 1.4% while Shanghai Wanye Enterprises Co. surged 10%. Gree Electric Appliances Inc. added 3.4%. 

Stocks in the consumer discretionary and technology companies also ended higher. Car maker SAIC Motor Corporation added 2.8% and Founder Technology Group rose 1.5%.
Securities companies stocks mixed on part profit booking after a strong rally over the last two sessions. Citic Securities Co. lost 0.5% while Haitong Securities Co. rose 0.2%. 

HK Stocks down in narrow and subdued trade
 
Hong Kong share market closed edge below neutral line after swung between small gains and losses, on part-profit booking following stellar gain prior day after the Chinese central bank announced a surprise rate cut Friday night. The Hang Seng Index ended down by 49.23 points, or 0.21%, to 23843.91, off an intra-day high of 23935.07 and low of 23809.51. Turnover declined to HK$89.04 billion from HK$105.25 billion on Monday. 

Shares of banks and property developers pulled back from their recent gains, with China Minsheng Banking Corp down 2.1%, Bank of China down 0.3% and China Citic Bank Corp down 0.8%. Property shares also included some underperformers, with China Vanke Co down 3.6%, Sunac China Holdings down 3.7%, China Resources Land down 1.5%, Sino-Ocean Land Holdings down 2.8%, Shimao Property Holdings down 3% and Poly Property Group Co down 5.5%. 

Sensex snaps 3-day winning streak
 
India's equity markets fell as investors booked profits after the benchmark indices hitting new highs in previous two consecutive days, and as the stock market regulator Securities and Exchange Board of India (Sebi) imposed restrictions on issue of Offshore Derivative Instruments (ODIs) by foreign portfolio investors (FPIs). Index heavyweight ITC led the decline. The Sensex provisionally closed 0.57%, or 161.49 points, lower at 28338.05 points, while the National Stock Exchange's broader barometer 50-share CNX Nifty fell 0.79%, or 67.05 points, to end at 8463.10 points. 

Cigarette maker ITC shares dropped 4.99% to Rs 355.70. The stock hit high of Rs 378.80 and low of Rs 348.60. Health Minister J P Nadda stated in a written reply in the Rajya Sabha today, 25 November 2014, that the Ministry of Health & Family Welfare has accepted recommendations of a committee that has suggested prohibition on sale of loose or single stick of cigarettes, increasing the minimum legal age for sale of tobacco products, increasing the fine or penalty amounts for violation of certain provisions of the Cigarettes and Other Tobacco Products (Prohibition of Advertisement and Regulation of Trade and Commerce, Production, Supply and Distribution) Act, 2003 (COTPA), as well as making such offences cognizable. In this regard, a draft note for Cabinet has been circulated for Inter-Ministerial consultation. 

Elsewhere in the Asia Pacific region: Taiwan's Taiex index fell 0.07% to 9116.24. South Korea KOSPI was up 0.08% to 1978.54. New Zealand's NZX50 fell 0.53% to 5442.68. Singapore's Straits Times index grew 0.13% at 3345. Malaysia's KLCI grew 0.26% to 1838.56. Indonesia's Jakarta Composite index sank 0.44% to 5118.94. 

Reliance US Equity Opportunities Fund files offer document with Sebi

An Open Ended Diversified Equity Scheme 

Reliance Mutual Fund has filed offer document with Sebi to launch Reliance US Equity Opportunities Fund, an open ended diversified equity scheme. The New Fund Offer price is Rs 10 per unit. 

Investment objective: The primary investment objective of Reliance US Equity Opportunities Fund is to provide long term capital appreciation to investors by primarily investing in equity and equity related securities of companies listed on recognized stock exchanges in the US and the secondary objective is to generate consistent returns by investing in debt and money market securities in India. 

Plans/ option(s): 

a) Growth Plan 

(i) Growth Option
(ii) Bonus Option 

b) Dividend Plan 

(i) Dividend Payout Option
(ii) Dividend Re-investment Option 

c) Direct Plan - Growth Plan 

(i) Growth Option
(ii) Bonus Option 

d) Direct Plan - Dividend Plan 

(i) Dividend Payout Option
(ii) Dividend Re-investment Option 

Benchmark: S&P 500 Index 

Exit load: 1% if redeemed or switched out on or before completion of 1 year from the date of allotment of units and nil if redeemed or switched out after the completion of 1 year from the date of allotment of units 

Minimum Application Amount: Rs.5,000 and in multiples of Re 1 thereafter. 

Minimum Target Amount: Rs 10 crore 

Asset Allocation: The scheme shall invest 80-100% in equity and equity related instruments listed on the recognized stock exchanges in the US and up to 20% in fixed income securities, including money market instruments, cash and equivalent, Treasury bills and fixed deposits in India. 

Fund Managers: Jahnvee Shah and Anju Chajjer 

UTI – Medium Term Fund files offer document with Sebi

An open ended income scheme with no assured return 

UTI Mutual Fund has filed offer document with Sebi to launch UTI – Medium Term Fund, an open ended income scheme with no assured return. The New Fund Offer price is Rs 10 per unit. 

Investment objective: The investment objective of the scheme is to generate steady and reasonable income, with low risk and high level of liquidity from a portfolio of money market securities and high quality debt. 

Plans: Regular plan and direct plan. 

Each Plan offers the following Option(s): 

(i) Growth Option
(ii) Monthly Dividend Payout Option
(iii) Monthly Dividend Reinvestment Option
(iv) Quarterly Dividend Payout Option
(v) Quarterly Dividend Reinvestment Option
(vi) Half Yearly Dividend Payout Option
(vii) Half Yearly Dividend Reinvestment Option
(viii) Annual Dividend Payout Option
(ix) Annual Dividend Reinvestment Option
(x) Flexi Dividend Payout Option
(xi) Flexi Dividend Reinvestment Option 

Benchmark: CRISIL Composite Bond Fund Index 

Entry Load: Not applicable 

Exit Load:
<= 365 days: 1.00%
> 365 days and <= 548 days: 0.50%
> 548 days: Nil 

Minimum Application Amount: Rs.5,000 and in multiples of Re 1 thereafter. 

Minimum Target Amount: Rs 20 crore 

Asset Allocation: The scheme shall invest 55-100% in government securities issued by Central & / or State Govt. and debt securities including but not limited to corporate bonds and securitized debt and up to 45% in money market instruments. The average maturity of the scheme would be between 3 to 7 years. 

Fund Manager: Amandeep S Chopra 

Axis Retirement Planning Fund files offer document with Sebi

An Open Ended Retirement Benefit Scheme 

Axis Mutual Fund has filed offer document with Sebi to launch Axis Retirement Planning Fund, an open ended retirement benefit scheme. The New Fund Offer price is Rs 10 per unit. 

The AMC shall apply to Central Board of Direct Taxes, Ministry of Finance for approval of the scheme as a Notified Pension Fund under Section 80C(2)(xiv) of the Income Tax Act, 1961. On being notified as a Pension Fund, investment made in the scheme will be eligible for tax benefit under Section 80C of the Income-tax Act, 1961. 

Investment objective: The objective of the scheme is to provide a long term investment vehicle that can be used for retirement planning. The fund will invest in both equity and debt. The investment objective of the fund will be to generate long-term capital appreciation through investments in equity & equity related instruments along with income by investing in debt & money market instruments. 

Plans: Regular plan and direct plan 

Sub-plan under each plan: 

Compulsory Lock-in: Investment will be locked-in till investor turns 60 years of age. Investment may be redeemed after investor is 60 years of age or any time after 3 years from the date of allotment whichever is later 

No Lock-in: Investment will not be locked-in & can be redeemed at any point of time at NAV based prices subject to exit load 

Options under each sub-plans: 

- Growth
- Dividend (Dividend Payout and Reinvestment Facility)
- Bonus (available under sub-plan No Lock-in only) 

Benchmark: Crisil Balanced Fund Index 

Entry Load: Not Applicable 

Exit Load: 

Compulsory Lock-in: No exit load post lock-in period 

No Lock-in: 

3% if exited within 1 year 

2% if exited after 1 but before 2 years 

1% if exited after 2 but before 3 years 

No exit load post 3 years 

Minimum Application Amount: Rs.5,000 and in multiples of Re 1 thereafter. 

Minimum Target Amount: Rs. 10 crore 

Asset Allocation: The scheme shall invest 65-75% in equity and equity related instruments and 25-35% in debt & money market instruments 

Fund Managers: Pankaj Murarka and R. Sivakumar 

BNP Paribas Dividend Yield Fund announces dividend

Record date for dividend is 28 November 2014 

BNP Paribas Mutual Fund has announced 28 November 2014 as the record date for declaration of dividend under dividend option of BNP Paribas Dividend Yield Fund.

The amount of dividend will be Rs 0.10 per unit under each BNP Paribas Dividend Yield Fund and BNP Paribas Dividend Yield Fund-Direct Plan on the face value of Rs 10 per unit. 

Sundaram Select Small Cap Series-III-IV files offer document with Sebi

A close-ended equity scheme  

Sundaram Mutual Fund has filed offer document with Sebi to launch Sundaram Select Small Cap Series-III-IV, a close-ended equity scheme. The New Fund Offer price is Rs 10 per unit. The Mutual Fund proposes to offer 2 Plans Sundaram Select Small Cap-Series-III-IV (comprising series III & IV) of tenure of 3 to 5 years. 

Investment objective: To seek capital appreciation by investing predominantly in equity/equity-related instruments of companies that can be termed as small-caps. However, there can be no assurance that the investment objective of the Scheme will be realized. The fund will invest in stocks that are equal to or lower than the 101st stock and upto 300th stock in the NSE (after sorting the stocks by market-cap in descending order) 

Plans/ option(s): Growth and dividend (payout) options under both regular plan and direct plan. 

Benchmark: S&P BSE Small Cap Index 
 
Loads: Nil 

Minimum Application Amount: Rs.5,000 and in multiples of Rs 10 thereafter. 

Minimum Target Amount: Rs 10 crore under each series 

Asset Allocation: The scheme shall invest 65-100% in equity & equity related securities of companies of small-caps, up to 35% in other equities and up to 35% in fixed income and money market securities 

Fund Managers: S Krishnakumar & Dwijendra Srivastava 

HSBC Capital Protection Oriented Fund – Series II [HCPOF] – Plan I to IV files offer document with Sebi

A close ended capital protection oriented scheme 

HSBC Mutual Fund has filed offer document with Sebi to launch HSBC Capital Protection Oriented Fund – Series II [HCPOF] – Plan I to IV, a close-ended capital protection oriented scheme. There will be four plans to be launched over the tenor of 3-3.9 years. The New Fund Offer price is Rs 10 per unit. The scheme is rated AAA(so) by CRISIL. 

Investment objective: To seek protection of capital by investing a portion of the portfolio in high quality debt securities and money market instruments and also to provide capital appreciation by investing in equities through NIFTY (Index) Call Options. 

Plans/ option(s): Growth and dividend (payout) options under both regular plan and direct plan. 

Benchmark: CRISIL MIP Blended Index. 

Minimum Application Amount: Rs.5,000 and in multiples of Rs 10 thereafter. 

Minimum Target Amount: Rs 20 crore under each plan 

Asset Allocation: The scheme shall invest 80-100% in fixed income and money market instruments and up to 20% in equity through NIFTY Index call options 

Fund Managers: Sanjay Shah and Amaresh Mishra 

Canara Robeco Mutual Fund Announces Dividend under three schemes

Record date for dividend is 28 November 2014 

Canara Robeco Mutual Fund has announced 28 November 2014 as the record date for declaration of dividend under the dividend option of following schemes. The amount of dividend (Rs per unit) on the face value of Rs 10 per unit will be: 

Canara Robeco Emerging Equities-Regular Plan: 2.70 

Canara Robeco Large Cap+ Fund-Regular Plan: 1.20 

Canara Robeco Medium Term Opportunities Fund-Regular Plan & Direct Plan: 0.32 each 

ICICI Prudential MF Announces Dividend Under various Schemes

Record date for dividend is 28 November 2014 

ICICI Prudential Mutual Fund has announced 28 November 2014 as the record date for declaration of dividend under the following schemes. The amount of dividend (Rs per unit) on the face value of Rs 10 per unit will be: 

ICICI Prudential Interval Fund II-Quarterly Interval Plan B: 

Retail Dividend: 0.1946
Direct Plan – Dividend: 0.1969
Regular Plan – Dividend: 0.1941
Regular Plan –Quarterly Dividend Payout: 0.1942 

ICICI Prudential Equity-Arbitrage Fund: 

Direct Plan – Dividend: 0.10
Regular Plan – Dividend: 0.0299 

ICICI Prudential Blended Plan-Plan A: 

Direct Plan – Dividend: 0.0354
Regular Plan – Dividend: 0.0320 

ICICI Prudential Balanced Advantage Fund: 

Direct Plan & Regular Plan – Monthly Dividend: 0.08 each

JM Arbitrage Advantage Fund declares bonus units

The record date is 27 November 2014  

JM Financial Mutual Fund has announced 27 November 2014 as the record date for declaration of bonus units under the bonus option of JM Arbitrage Advantage Fund. 

The bonus units will be 40 units for every 100 units held on the face value of Rs 10 per unit.

SBI Emerging Businesses Fund Announces Dividend

Record date for dividend is 28 November 2014 

 SBI Mutual Fund has announced 28 November 2014 as the record date for declaration of dividend under the dividend option of Regular Plan of SBI Emerging Businesses Fund.

 The quantum of dividend will be Rs 2.70 per unit on the face value of Rs 10 per unit.

Franklin Asian Equity Fund Announces Dividend

Record date for dividend is 28 November 2014 

Franklin Templeton Mutual Fund has announced 28 November 2014 as the record date for declaration of dividend under the dividend plan and direct-dividend plan of Franklin Asian Equity Fund. 

The quantum of dividend (Rs per unit) on the face value of Rs 10 per unit under each plan will be: 

Individuals & HUF-0.907 

Others-0.841

Kotak Tax Saver Scheme Announces Dividend

Record date for dividend is 28 November 2014 

Kotak Mutual Fund has announced 28 November 2014 as the record date for declaration of dividend under the non direct plan-dividend option of Kotak Tax Saver Scheme, an open ended Equity Linked Saving Scheme. 

The quantum of dividend will be Rs 0.50 per unit on the face value of Rs 10 per unit.

Religare Invesco Business Leaders Fund Announces Dividend

Record date for dividend is 28 November 2014 

Religare Invesco Mutual Fund has announced 28 November 2014 as the record date for declaration of dividend under the dividend option and direct plan-dividend option of Religare Invesco Business Leaders Fund. 

The quantum of dividend under each option will be Rs 2.20 per unit on the face value of Rs 10 per unit.

Sundaram Global Advantage Fund Announces Dividend

Record date for dividend is 28 November 2014 

Sundaram Mutual Fund has announced 28 November 2014 as the record date for declaration of dividend under the regular plan-dividend and direct plan-dividend options of Sundaram Global Advantage Fund. 

The quantum of dividend under each plan/option will be Rs 1.00 per unit on the face value of Rs 10 per unit.

Mutual funds in buying mode

Net inflow of Rs 567.10 crore on 21 November 2014

Mutual funds bought shares worth a net Rs 567.10 crore on Friday, 21 November 2014, compared to net inflow of Rs 141.90 crore on Thursday, 20 November 2014. 

The net inflow of Rs 567.10 crore on 21 November 2014 was a result of gross purchases of Rs 1211.30 crore and gross sales of Rs 644.10 crore. The S&P BSE Sensex jumped 267.07 points or 0.95% to settle at a record closing high of 28,334.63 on that day. 

Mutual funds have bought shares worth Rs 34.70 crore in November 2014 so far (till 21 November 2014). They had purchased shares worth Rs 5939.70 crore in October 2014. 

ASSOCHAM appeals to all political parties to help speed up reforms measures in Parliament

As Parliament convenes for the winter session tomorrow, the ASSOCHAM today reached out to all political parties notably the Congress Party to lend support to the government in pushing through key economic reforms like increasing FDI limit in insurance and forward movement in the long pending Goods and Services Tax. 

"The month long session offers us a great opportunity to accelerate the economic reforms which are so essential for boosting economic growth and employment generation. These reforms should be seen in a non-partisan manner and much above the political consideration," ASSOCHAM President Mr Rana Kapoor said in a statement, a day before the start of the winter session. 

The chamber said the efficiency of legislature and the legislatures go a long way in speeding up the economic growth which alone can help India re-emerge among the fastest growing nations. The passage of the key legislations will not only bring in direct benefits but also creates several positive ripples which could make the global investors sit up and keep India on top of their radar. 

"In any case, given the present global economic scenario we are well placed when it comes to investment climate and the business sentiment. However, we need to look inward and get into the basic issues that impede our growth story. The states must be taken on board and the entire political spectrum should resolve to help government take India much ahead in the ranking of Ease of Doing Business." 

ASSOCHAM expressed confidence that the government, on its part, will reach out to the opposition parties and try and build political consensus on some of the contentious issues like reduction in non-essential subsidies. In fact, given a sharp reduction in the global energy prices, this is the best time to go ahead with the subsidy reduction programme. 

It said since the economic growth has not really been up to its potential in the last two years, a lot of catching up is required in the next four months of the current fiscal so that the stage is set to go back to growth which is in the range of seven per cent in the FY 2015-16. 

The chamber expressed the hope that the Congress Party will take a pragmatic view of the state of economy and extend support to the ruling party, especially in the Rajya Sabha where it does not have majority on its own and needs wide political support. 

India Inc has a great faith in the vibrant democracy and the wisdom of political leadership.

Railways To Layout A Roadmap For Execution Of 50-70 Mega Projects In 60-Days: MoS Railways

The Ministry of Railways is in the midst completing an exercise for preparing an exhaustive roadmap for execution of between 50-70 mega railways projects in the next five years through PPP model for which necessary consultation process would be finalized in next 60-days, says Minister of State for Railways, Manoj Sinha. 

Addressing a PHD Rail Infrastructure Summit-2014 under aegis of PHD Chamber of Commerce and Industry. Sinha further unveiled that the identified projects would be shortly put on the website of the Ministry of Railways with all details and deadlines for their commissioning as also attract wider participation of investors for their timely execution. 

The Minister elaborated that the consultation process has already had the participation of top polity of the present dispensation including its railways Minister Dr. Suresh Prabhu, Railway Board Chairman and host of other such personalities and even asked industry associations like PHD Chamber to make its contribution and provide suggestions so that the projects would be industry friendly. 

The future successive budget of the railways would be prepared to serve the government's intention of executing mega railways projects under its five years agenda plan as being pushed in the consultation processes so that their executions were not delayed at any cost and cost escalations arising out of normal delays in such projects prevented for good, categorically stated the Minister. 

The Minister explained that the new government under Prime Minister Modi was committed to revive the PPP mode projects to uplift the face of railways to meet modern requirements even though such projects could not be implemented in the previous dispensation because the new government has the political will to revive such projects under PPP mode so that all stakeholders are roped in for railways development. 

Railway Board Chairman, Arunendra Kumar in his address said that the future focus of railways infrastructure projects would be through PPP mode but in addition to it the railways would put up non-conventional related energy projects in the wind and solar sector to feed railways with its own power plants and drastically reduce its energy bill which currently ranges between Rs.35,000 crores to Rs.38,000 crores per annum. States such as Rajasthan, Maharashtra and Madhya Pradesh were in talks with railways for execution of such projects. 

Chairman High Speed Rail Corporation of India and CMD Rail Vikas Nigam, Satish Chandra Agnihotri in his remarks observed that the new government had prepared to lay a railways line between Rishikesh and Karnprayag in Uttarakhand to connect the holy shrines of Badrinath and Kedarnath to mainstream railways. 

In his welcome remarks the President, PHD Chamber Sharad Jaipuria said, “at present Indian Railways are taking many new initiatives led by the new government at the centre: like faster decision making, clearances and a better policy environment for global and domestic corporates”. 

Sr. Vice President of the Chamber Alok B Shriram also said that the initiatives taken by railways for its development and modernization were opportunities that should be given a huge push. 

Food processing industry should be kept outside the scope of GST: PHD Chamber

Preferred policy option should be imposed on food processing sector, keeping GST rate not more than 4% and farm sector should be kept outside the scope of GST, said Sharad Jaipuria, President, PHD Chamber of Commerce and Industry. 

The likely implementation of GST at more than 20% on food processing sector would not only impact the sector adversely but also hit the economic and social sentiments of the country, said Jaipuria. 

The food processing industry is still at a nascent stage of development in our country as only 2.2% of food output is processed in India as compared to 78% in Philippines, 65% in the USA and 23% in China. At this juncture, high rate of GST will slow down the growth trajectory of food processing sector in India. Further, as food comprise a major part of the Wholesale Price Index (WPI) which is nearly 14.3%, an increase in tax on food items will adversely impact WPI leading to higher inflation in the country, he said. 

We believe since food constitutes a large portion of the consumer basket of lower income households, any tax on food would be regressive in nature. Further, extending GST to food processing sector will also cause difficulty in view of the fact that production and distribution of food is largely unorganized in India, added Jaipuria. 

On global front, most of the countries tax food at a lower rate keeping in view the considerations of fairness and equity. Even in countries such as Canada, UK and Australia where food constitute a relatively small portion of the consumer basket, food is taxed at zero rate. While in some countries, food is taxed at a standard rate which is as low as 3% in Singapore and Japan at the inception of the GST. Even in international jurisdictions, no distinction is drawn on the degree of processing of food. Hence, the benefit of lower or zero tax rates should also be extended to all food items in India regardless to degree of processing, he said. 

Going ahead, a lower GST on processed foods would benefit the society at large and benefit the growth of food processing industry in the country, added Jaipuria. 

Competition Commission recovers not even 1/10th of penaltied amount for non-compliance of CCI laws: Chawla

The Competition Commission of India (CCI) has disclosed that it has recovered a meagre amount of Rs.1,000 crores in the form of penalty imposed by the Commission for non-compliance of competition laws by corporates against the penaltied amount of close to Rs.12,000 crores so far, according to its Chairman, Mr. Ashok Chawla. 

Addressing the managing committee members of PHD Chamber of Commerce and Industry, the Chairman, CCI said that the recovery has been poorer, for the penalties imposed for non-compliance of CCI laws on belligerent corporates that took the subject to Courts to deliberately delay the payments of recoveries. 

He advised the corporates to take advantage of the RTI Act to dig out any information relating to CCI laws and their fall out on corporate governance since the CCI is a public office and thus falls on RTI Act's domain. 

On a query raised on mergers and acquisitions (M&A) by one of the members of the PHD Chamber of Commerce and Industry, Mr. Chawla clarified that CCI intervened only such M&A that leads to monopolistic tendencies and cartelization. 

Wherever, M&As take place, exceeding their thresholds as provided under the competition law, the commission intervenes and even interferes even suo moto but wherever such a thing is happening for business consolidation, the commission keeps off such deals, pointed out Mr. Chawla. 

Referring to shabby deals and transactions taking place in the real estate sector, the Commission's Chairman expressed his inability to restrict an prohibit such things as these do not fall in CCI's jurisdiction and advised the centre and state governments to hurry up setting up real estate regulatory authority to regulate the sector to the best satisfaction of all stakeholders in it. 

Ind-Ra: Coal Re-allocation Draft Guidelines in line with Expectations

The draft guidelines issued for the auction of coal mines are in line with India Ratings & Research's (Ind-Ra) expectations outlined earlier. The Ministry of Coal is targeting the e-auctioning of coal blocks before the March 2015 deadline outlined by the Supreme Court for the reversion of operational coal mines. Ind-Ra expects the disruption in coal availability to the already operational end-use projects to be minimum, in case the re-allocated mines are vested with successful bidders before 31 March 2015. 

Investment Risk Likely to be Reduced: The eligibility criteria, linked to the preparedness status of the end-use plants (EUP; 80% of investment made in the EUP for Schedule II mines and 60% of investment made in the EUP for Schedule III mines), accords priority to operational and near-completion end-users in participation in the bidding process. Thus, their fuel availability risk is likely to reduce significantly. The provision of a cap on bidding for multiple coal blocks is likely to ensure healthy competition, prevent monopoly and guarantee the allocation of mines to maximum number of interested EUPs. The cap is yet to be decided. 

Transparency to Boost Investor Confidence: The entire process of e-auctioning through a nominated authority who may engage experts to recommend re-allotment is likely to provide the much-needed transparency to the allocation process. The transparency and robustness of the auction process to stand legal and judicial review will be key to build investor confidence and ensure a steady flow of investment in the power sector over the long run. In the spirit of the Supreme Court's orders, the existing allottees will still need to pay the additional levy (295/t) by 31 December 2014 for the coal mined till 24 September 2014 and pay the additional levy for the coal mined between September 2014 and March 2015 by June 2015, irrespective of their success in bidding process. 

Deviation from the Earlier Policy: The earlier policy of allocation of captive coal blocks was based on the principle of mine linked to the specific end-use project. Even though the new guidelines require both end-use and end-use project to be specified, they allow the allottee to use the coal in other projects with the same end-use by giving prior intimation to the central government, and thus could help ramp up coal production. 

Tentative Auction Schedule: According to the draft guidelines, the tentative schedule for e-auctioning of 74 coal blocks (either in production or ready to produce) proposes request for proposal finalisation by 22 December 2014, bid due date by 11 February 2015, technical bid qualification by 3 March 2015, e-auction by 6 March 2015 and the issue of letter of accord/vesting order by 16 March 2015. 

Storage Status of 85 Important Reservoirs of the Country is 69% of total storage capacity as on November 20, 2014

The Water Storage available in 85 important reservoirs of the country as on November 20, 2014 was 106.822 BCM which is 69% of total storage capacity of these reservoirs. This storage is 84% of the storage of corresponding period of last year and 99% of storage of average of last ten years. The present storage position during current year is less than the storage position of last year and also less than the storage of average of last ten years. 

Central Water Commission monitors live storage status of 85 important reservoirs of the country on weekly basis. These reservoirs include 37 reservoirs having hydropower benefit with installed capacity of more than 60 MW. The total storage capacity of these reservoirs is 155.046 BCM which is about 61% of the storage capacity of 253.388 BCM which is estimated to have been created in the country. 

Region Wise Storage Status: 

Northern Region 

The northern region includes States of Himachal Pradesh, Punjab and Rajasthan. There are 6 reservoirs in this region having total storage capacity of 18.01 BCM. The total storage available in these reservoirs is 11.60 BCM which is 64% of total storage capacity of these reservoirs. The storage during corresponding period of last year was 81% and average storage of last ten years during corresponding period was 70% of storage capacity of these reservoirs. Thus, storage during current year is less than the corresponding period of last year and also less than the average storage of last ten years during the corresponding period. 

Eastern Region 

The Eastern region includes States of Jharkhand, Odisha, West Bengal and Tripura. There are 15 reservoirs in this region having total storage capacity of 18.83 BCM. The total storage available in these reservoirs is 15.08 BCM which is 80% of total storage capacity of these reservoirs. The storage during corresponding period of last year was 92% and average storage of last ten years during corresponding period was 75% of storage capacity of these reservoirs. Thus, storage during current year is less than the corresponding period of last year but better than the average storage of last ten years during the corresponding period. 

Western Region 

The Western region includes States of Gujarat and Maharashtra. There are 22 reservoirs in this region having total storage capacity of 24.54 BCM. The total storage available in these reservoirs is 16.73 BCM which is 68% of total storage capacity of these reservoirs. The storage during corresponding period of last year was 85% and average storage of last ten years during corresponding period was75% of live storage capacity of these reservoirs. Thus, storage during current year is less than the storage of last year and also less than the average storage of last ten years. 

Central Region 

The Central region includes States of Uttar Pradesh, Uttarakhand, Madhya Pradesh and Chhattisgarh. There are 12 reservoirs in this region having total storage capacity of 42.30BCM. The total storage available in these reservoirs is 32.84 BCM which is 78% of total storage capacity of these reservoirs. The storage during corresponding period of last year was 86% and average storage of last ten years during corresponding period was 58% of live storage capacity of these reservoirs. Thus, storage during current year is less than the storage of last year but better than the average storage of last ten years. 

Southern Region 

The Southern region includes States of Andhra Pradesh, Karnataka, Kerala and Tamil Nadu. There are 30 reservoirs in this region having total storage capacity of 51.37 BCM. The total storage available in these reservoirs is 30.57 BCM which is 60% of total storage capacity of these reservoirs. The storage during corresponding period of last year was 74% and average storage of last ten years during corresponding period was 74% of storage capacity of these reservoirs. Thus, storage during current year is less than the corresponding period of last year and also less than the average storage of last ten years during the corresponding period.
States having better storage than last year for corresponding period are Kerala and Tamil Nadu. States having equal storage than last year for corresponding period is Karnataka. 

States having lesser storage than last year for corresponding period are Himachal Pradesh, Punjab, Rajasthan, Jharkhand, Odisha, West Bengal, Tripura, Gujarat, Maharashtra, Uttar Pradesh, Uttarakhand, Madhya Pradesh, Chattisgarh, Andhra Pradesh.