In its attempt to clean up the primary market and make it more efficient, market regulator Sebi is all set to re-launch a product that existed way back in 1992. It plans to introduce albeit in a new avtaar the Stock Invest System. They are talking about introducing an online version of the Stock Invest System.
CB Bhave, Chairman, Sebi, said, "You could compare the two. You could call this the electronic stock invest instead of paper Stock Invest. But the major difference in case of paper stock invest is that you had to encash the entire instrument if you were making part allotment to the investor and had still to generate a refund order. In this case, no refund order is required. You simply have to remove the freeze from the investor's account."
Bhave added that banks will play a very crucial role because they will need to be able to provide this facility. "I am sure there will be competition among banks."
What is the Stock Invest scheme and why was it put in place?
It was like an account payee cheque where investors actually could buy them from an issuing bank that was participating in a primary market issue. The money remained in the investors account until the allotments were made and only then were the investors' accounts debited.
Now, this scheme was put in place to prevent promoters from delaying allotments or refunds. While that is not the case in the market in the current scenario, the regulator is hoping that this scheme perhaps will make the primary market more efficient and transparent. That is why you might see an online avtaar of the Stock Invest scheme hitting the market very soon.
Wednesday, April 09, 2008
World Bank approves funds for Indian coal-fired plant
The World Bank approved financing for a $4.2 billion coal-fired power plant in India on Tuesday despite calls by environmental groups to wait for further analysis of the costs and environmental impact.
The World Bank board approved $450 million in loans by the International Finance Corp. (IFC), its private sector lending arm, for the Tata Mundra project, a 4,000 megawatt coal plant, which will expand access to electricity in five states in western and northern India.
The IFC said the plant would use "super-critical" technology, making it India's most efficient coal-fired plant. The plant's volume of carbon emissions is expected to be 40 percent less than that from existing coal-fired plants in India.
"This is an important project because we believe it will encourage other developing countries to make responsible choices, using best available technologies and applying higher environmental and social standards," Rashad Kaldany, IFC director for infrastructure, said.
In a letter to the United States' representative at the World Bank, Whitney Debevoise, environmental groups argued that the global institution could not effectively fight climate change while also funding big polluters.
"The IFC has not demonstrated that this project is an appropriate and cost-effective solution that merits the investment of scarce international funds," the groups said.
The IFC said its funding was responding to India's enormous need for more and affordable electricity, while also supporting new technology that reduced emissions.
"The key is access to power and there are many poor people who still don't have access to power in India and it is getting them power as inexpensively as possible by using responsible technology," Kaldany told Reuters.
He said the IFC had conducted a thorough evaluation of the project.
"This is by far the least expensive and to try to do something like either wind or solar would cost huge amounts in terms of subsidies. The question is: where would these subsidies come from?" Kaldany said.
"Our analysis shows that unless you have huge subsidies -- several billions of dollars -- you cannot do alternative technology," he added.
RISING COSTS
But the environmental groups said coal's previous cost advantages had largely vanished with rising prices, while fuel and construction costs for "super-critical" coal-fired power plants had escalated.
They said research showed there were economically feasible alternatives to coal, including solar thermal power, which would fit the region surrounding the Tata Mundra project.
Citing research by the Washington-based Center for Global Development, the group said Tata Mundra could qualify for $445 million a year in payments under the Kyoto Protocol's Clean Development Mechanism (CDM) to recover the cost differences between solar thermal and supercritical coal.
Kaldany said that, where it could, the IFC would support renewable energy sources where commercially viable.
"There are opportunities for alternative types of technologies -- wind and solar -- but at the scale it is required, it is just not available to deploy it," he said.
Kaldany said carbon capture and storage technology was not yet available for power plants.
"Emerging markets and developed markets are facing this conundrum -- the technology is not ready or is hugely expensive, which begs the question: who is going to pay?"
The World Bank board approved $450 million in loans by the International Finance Corp. (IFC), its private sector lending arm, for the Tata Mundra project, a 4,000 megawatt coal plant, which will expand access to electricity in five states in western and northern India.
The IFC said the plant would use "super-critical" technology, making it India's most efficient coal-fired plant. The plant's volume of carbon emissions is expected to be 40 percent less than that from existing coal-fired plants in India.
"This is an important project because we believe it will encourage other developing countries to make responsible choices, using best available technologies and applying higher environmental and social standards," Rashad Kaldany, IFC director for infrastructure, said.
In a letter to the United States' representative at the World Bank, Whitney Debevoise, environmental groups argued that the global institution could not effectively fight climate change while also funding big polluters.
"The IFC has not demonstrated that this project is an appropriate and cost-effective solution that merits the investment of scarce international funds," the groups said.
The IFC said its funding was responding to India's enormous need for more and affordable electricity, while also supporting new technology that reduced emissions.
"The key is access to power and there are many poor people who still don't have access to power in India and it is getting them power as inexpensively as possible by using responsible technology," Kaldany told Reuters.
He said the IFC had conducted a thorough evaluation of the project.
"This is by far the least expensive and to try to do something like either wind or solar would cost huge amounts in terms of subsidies. The question is: where would these subsidies come from?" Kaldany said.
"Our analysis shows that unless you have huge subsidies -- several billions of dollars -- you cannot do alternative technology," he added.
RISING COSTS
But the environmental groups said coal's previous cost advantages had largely vanished with rising prices, while fuel and construction costs for "super-critical" coal-fired power plants had escalated.
They said research showed there were economically feasible alternatives to coal, including solar thermal power, which would fit the region surrounding the Tata Mundra project.
Citing research by the Washington-based Center for Global Development, the group said Tata Mundra could qualify for $445 million a year in payments under the Kyoto Protocol's Clean Development Mechanism (CDM) to recover the cost differences between solar thermal and supercritical coal.
Kaldany said that, where it could, the IFC would support renewable energy sources where commercially viable.
"There are opportunities for alternative types of technologies -- wind and solar -- but at the scale it is required, it is just not available to deploy it," he said.
Kaldany said carbon capture and storage technology was not yet available for power plants.
"Emerging markets and developed markets are facing this conundrum -- the technology is not ready or is hugely expensive, which begs the question: who is going to pay?"
Videocon in talks with Samsung, Sony for LCD supply
Homegrown consumer electronics major Videocon group is in talks with leading international players, including Samsung and Sony, for original equipment (OE) supplies of high-end liquid crystal displays (LCD).
The company, which has set up a $200-million plant in Italy for manufacturing of the LCD panels, has started operations and is currently doing test marketing in the European markets.
"This Italy plant is mainly aimed at OE supplies and we have been talking to supply to all major global players, including Sony and Samsung," Videocon Group Chairman Venugopal Dhoot said.
He said the company expected to sign a definitive supply agreement in three months time with some of the major players. He said the investments required for the plant in Italy was raised from there only.
"Although the plant is primarily meant for the overseas markets, we will also be bringing the products to India for Videocon's own domestic requirements. This will give us an advantage despite the import tariff that we may incur," Dhoot added.
Over the past few years, Videocon has been focus sing on expanding not only in the domestic market but also overseas through acquisitions. It had acquired the picture tube business of Thompson and also the Indian subsidiary of AB Elextrolux of Sweden. It was also in the race to acquire Korea's ailing electronics giant Daewoo only to stumble at the last stage.
Dhoot said the company has been able to garner 30 per cent share in the Indian consumer durables market and expects to grow it further.
"The industry grew by 15 per cent last year and we, in Videocon, believe will continue to better the industry growth," Dhoot said.
In the quarter ended December 2007, Videocon Industries had recorded a net sales of Rs 2,362.16 crore with a net profit of Rs 249.49 crore.
The Indian consumer durables industry is estimated to be valued at 22 billion dollars and is expected to expand to 160 billion dollars by 2016.
The company, which has set up a $200-million plant in Italy for manufacturing of the LCD panels, has started operations and is currently doing test marketing in the European markets.
"This Italy plant is mainly aimed at OE supplies and we have been talking to supply to all major global players, including Sony and Samsung," Videocon Group Chairman Venugopal Dhoot said.
He said the company expected to sign a definitive supply agreement in three months time with some of the major players. He said the investments required for the plant in Italy was raised from there only.
"Although the plant is primarily meant for the overseas markets, we will also be bringing the products to India for Videocon's own domestic requirements. This will give us an advantage despite the import tariff that we may incur," Dhoot added.
Over the past few years, Videocon has been focus sing on expanding not only in the domestic market but also overseas through acquisitions. It had acquired the picture tube business of Thompson and also the Indian subsidiary of AB Elextrolux of Sweden. It was also in the race to acquire Korea's ailing electronics giant Daewoo only to stumble at the last stage.
Dhoot said the company has been able to garner 30 per cent share in the Indian consumer durables market and expects to grow it further.
"The industry grew by 15 per cent last year and we, in Videocon, believe will continue to better the industry growth," Dhoot said.
In the quarter ended December 2007, Videocon Industries had recorded a net sales of Rs 2,362.16 crore with a net profit of Rs 249.49 crore.
The Indian consumer durables industry is estimated to be valued at 22 billion dollars and is expected to expand to 160 billion dollars by 2016.
MARKET PREDICTION
GLOBAL MARKETS ARE MIXED TODAY.
NO MAJOR TRIGGER EXCEPT QUATERLY RESULT CAN GIVE MARKET EITHER OR BREAK OUT.
TOTAL MARKET OI IS 54K CR AND THIS MONTH'S OI IS 51K CR AND REST IS FOR NEXT MONTH.
PUT CALL RATIO IS 1.16%.
LEVEL OF NIFTY 4620-4670-4720-4830 FOR THE DAY.
IF THE MARKET BREACH BELOW 4600 WE CAN ASSUME FRESH SHORT AND ABOVE 4800 WE CAN TAKE BULLISH VIEW.
BANKING AND FINANCIAL SERVICES SHOWING GOOD STRENGTH ABOVE 4730 LEVEL WE CAN GO LONG.
HAVE A NICE TRADING DAY
-MR.SAM
NO MAJOR TRIGGER EXCEPT QUATERLY RESULT CAN GIVE MARKET EITHER OR BREAK OUT.
TOTAL MARKET OI IS 54K CR AND THIS MONTH'S OI IS 51K CR AND REST IS FOR NEXT MONTH.
PUT CALL RATIO IS 1.16%.
LEVEL OF NIFTY 4620-4670-4720-4830 FOR THE DAY.
IF THE MARKET BREACH BELOW 4600 WE CAN ASSUME FRESH SHORT AND ABOVE 4800 WE CAN TAKE BULLISH VIEW.
BANKING AND FINANCIAL SERVICES SHOWING GOOD STRENGTH ABOVE 4730 LEVEL WE CAN GO LONG.
HAVE A NICE TRADING DAY
-MR.SAM
Religare to buy UK's oldest broking firm Hichens Harrison
The oldest stockbroker in London is set to become the latest British institution to be acquired by an Indian company.
Ranbaxy-promoted brokerage firm Religare Capital Markets has made an open offer to Hichens Harrison. It will pay Rs 226.05 (285 pence) per share, valuing the UK broking firm at Rs 440 crore (£55.5 million).
This is assuming the exercise of all outstanding Hichens options, representing a multiple of 13.1 times Hichens basic earnings per share for the 12 months ended December 31, 2007.
The boards of Religare and Hichens have agreed on the terms of the cash offer for the whole of the issue and to-be-issued share capital of the UK firm.
Following the approval of Reserve Bank of India, Religare will make the offer through a newly incorporated wholly-owned subsidiary in Mauritius. Already a no-objection certificate has been obtained for the same.
Commenting on the acquisition, Religare Enterprises group CEO and MD Sunil Godhwani said, “We are very excited that Hichens has accepted our cash offer. We are looking forward to binding our strengths and exploring opportunities.”
The acquisition of Hichens Harrison is expected to help Religare boost its investment banking operations and extend its geographical reach in emerging markets.
Hichens CEO Adam Wilson said the Religare-Hichens combination’s prime intention would be to focus on traditional merchant banking with special emphasis on emerging companies. Religare is listed on the Bombay Stock Exchange and has a market capitalisation of about Rs 2,775 crore.
Religare Enterprises is also looking at foraying into general insurance business. “The Board has already given in-principle approval for it and we are looking for both domestic and foreign partners for the venture,” Religare Enterprises’ Group chief financial officer Anil Saxena told reporters.
The company’s life insurance subsidiary, Aegon Religare Life Insurance Company, has got initial approval, R1 licence, from the regulator earlier this month. The company expects the life insurance venture to be operational by July.
“We have plans to start with a large footprint going well beyond the tier-I cities across the country,” Mr Saxena said, adding that the company would start its operation with 50-60 branches. Religare Enterprises has partnered the Netherlands-based Aegon and Bennett Coleman Company (BCCL) for the life insurance venture.
While Religare Enterprises, as a lead partner, would have a 44% stake in the venture, BCCL would have 30% stake while the remaining would be with Aegon.
Ranbaxy-promoted brokerage firm Religare Capital Markets has made an open offer to Hichens Harrison. It will pay Rs 226.05 (285 pence) per share, valuing the UK broking firm at Rs 440 crore (£55.5 million).
This is assuming the exercise of all outstanding Hichens options, representing a multiple of 13.1 times Hichens basic earnings per share for the 12 months ended December 31, 2007.
The boards of Religare and Hichens have agreed on the terms of the cash offer for the whole of the issue and to-be-issued share capital of the UK firm.
Following the approval of Reserve Bank of India, Religare will make the offer through a newly incorporated wholly-owned subsidiary in Mauritius. Already a no-objection certificate has been obtained for the same.
Commenting on the acquisition, Religare Enterprises group CEO and MD Sunil Godhwani said, “We are very excited that Hichens has accepted our cash offer. We are looking forward to binding our strengths and exploring opportunities.”
The acquisition of Hichens Harrison is expected to help Religare boost its investment banking operations and extend its geographical reach in emerging markets.
Hichens CEO Adam Wilson said the Religare-Hichens combination’s prime intention would be to focus on traditional merchant banking with special emphasis on emerging companies. Religare is listed on the Bombay Stock Exchange and has a market capitalisation of about Rs 2,775 crore.
Religare Enterprises is also looking at foraying into general insurance business. “The Board has already given in-principle approval for it and we are looking for both domestic and foreign partners for the venture,” Religare Enterprises’ Group chief financial officer Anil Saxena told reporters.
The company’s life insurance subsidiary, Aegon Religare Life Insurance Company, has got initial approval, R1 licence, from the regulator earlier this month. The company expects the life insurance venture to be operational by July.
“We have plans to start with a large footprint going well beyond the tier-I cities across the country,” Mr Saxena said, adding that the company would start its operation with 50-60 branches. Religare Enterprises has partnered the Netherlands-based Aegon and Bennett Coleman Company (BCCL) for the life insurance venture.
While Religare Enterprises, as a lead partner, would have a 44% stake in the venture, BCCL would have 30% stake while the remaining would be with Aegon.
India, Venezuela sign gas and oil agreement
Venezuela and India teamed up on Tuesday for exploration and production of oil and natural gas in eastern Venezuela.
State-owned Petroleos de Venezuela SA, or PDVSA, will hold a 60 per cent stake in the joint venture, Venezuelan Oil Minister Rafael Ramirez said. The rest will be controlled by Oil and Natural Gas Corp, or ONGC, India's top petroleum exploration company.
Ramirez said ONGC will invest $450 million (euro290 million) in the project, known as Petrolera IndoVenezolana.
Venezuela estimates that over the next 25 years, the venture will yield 232 million barrels of crude from the San Cristobal oil field, which spans 62 square miles (160 square kilometers) in the eastern states of Anzoategui and Guarico. Production is expected to begin within three years.
Ramirez said the agreement is ``a first step'' toward further energy cooperation between the two countries, saying that Venezuela plans to ship 150,000 barrels of heavy crude a day to India.
``This agreement falls into the framework of our diversification policy,'' Ramirez said.
Venezuelan President Hugo Chavez has long expressed a desire to reduce dependence on the United States, which remains the No. 1 buyer of Venezuelan oil despite rocky relations between the countries.
State-owned Petroleos de Venezuela SA, or PDVSA, will hold a 60 per cent stake in the joint venture, Venezuelan Oil Minister Rafael Ramirez said. The rest will be controlled by Oil and Natural Gas Corp, or ONGC, India's top petroleum exploration company.
Ramirez said ONGC will invest $450 million (euro290 million) in the project, known as Petrolera IndoVenezolana.
Venezuela estimates that over the next 25 years, the venture will yield 232 million barrels of crude from the San Cristobal oil field, which spans 62 square miles (160 square kilometers) in the eastern states of Anzoategui and Guarico. Production is expected to begin within three years.
Ramirez said the agreement is ``a first step'' toward further energy cooperation between the two countries, saying that Venezuela plans to ship 150,000 barrels of heavy crude a day to India.
``This agreement falls into the framework of our diversification policy,'' Ramirez said.
Venezuelan President Hugo Chavez has long expressed a desire to reduce dependence on the United States, which remains the No. 1 buyer of Venezuelan oil despite rocky relations between the countries.
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