Domination July 2011

8/6/2019 Domination July 2011

http://slidepdf.com/reader/full/domination-july-2011 1/31

A Monthly Newsletter from the Students of

Department of Management Studies, IIT Roorkee

Jan Lokpal

BillOne or more investors

All Men– lets buy Diamonds

Kyunki Asli Maza Sabkesath Aata Hai

Special Economic Zone

Financial Inclusion– GrowthInclusion

Story of a hat

In this issue

Regardez I'economie



Dear Readers,

The smell of „the rain - kissed soil‟ is in the air. Yes, it‟s the Monsoon season again, the season of scrump-tious treat for mother earth. As the first rains hit the country, the people were out on the streets celebratingthe respite from the scorching sun. And as you enjoy the first shower of rains with a cup of hotchai,pakoras and jalebis we are back again with a refreshing edition of Domination with yet another unique section Regardez I'economie.

This section will specifically entail the major economic activities of the month gone by, that had an impacton the Indian economy. In the environment as dynamic as ours it might be difficult to point at a just andone direction but we will try and scrutinize whether it was a fruit of our government policies or the marketforces flexing their muscles. During the course we‟ll also analyse the performance of the Indian Stock Ex-

change in brief, the barometer that keeps us abreast of the economy

Contrary to the logic of discourse, the more the concept of Lokpal bill is debated, the more does its real purpose gets lost in ambiguity. ‟Jan Lokpal bill‟ discusses the most heated topic of the time.

Diamonds are said to be the best friend of a woman. But why should men go ahead and buy them? To getan insight into it, we have for you: All Men--Lets buy Diamonds--Not just for your women but also for yourself too.

Strategizing how to raise funds is a difficult thing. „Single or Multiple Investors‟ may help you decide the better way for sponsoring your project.

Special Economic Zones have always been the topic of debate. While there have been many loopholes init, the idea cannot be outrightly rejected. Both protagonists and dissenters have their own set of arguments.The article „Special Economic Zone‟, throws light on this double edged sword.

Standing out in a mind boggling range of products, an eye-glazing gaggle of ads, a wearisome stream of information and then connecting with the customers is the call of the day. Kyonki Asli mazaa Sab kesaath aata hai, is about the new Customer connect programme of SAB TV.

„Financial Inclusion –Growth inclusion‟ captures the essence of financial inclusion and the initiativestaken by the government for the same.

DoMS-da-Vince brings forth the interview with Sumit Kapoor,a dynamic and vibrant consultant with over 9 years of experience

Winding up, a short but fascinating story of a hat awaits for you in chlorophyll section.

While the Monsoons rejuvenates you, grab on this edition of Domination..We will be back again nextmonth with some more interesting think piece. Till then its Team Domination wishing you Happy Readingand Happy Monsoons.

-Regards

Team Domination



Jan Lokpal Bill

Deep Pathak

All Men– Lets buy Dia-

mondsDishant Hans

One or more investors

Divye Garg

Special Economic Zone

Kyunki asli mazaasabke sath aata hai

Rahul Rathee

Story of a Hat

Interaction with

‘Sumit Kapoor’

DoMS-da-Evince

Anshika Srivastava

Rohit Menon

Qutopia 18

Regardez I'economie

Financial Inclusion-

Growth Inclusion

Paresh Kulkarni



Jan Lokpal Bill Page 4

IPL , Hawala, Fodder, Bofors, Telgi, Common

Wealth, 2G… There is something common in

these words. Yes, indeed these are those scams

which have once hit the news headlines because

of the scale of scandal and were then lost some-

where. Nothing much was done to catch the big

fish involved nor was anything done to protect

the tax payer‟s hard earned money from theclutches of corruption. All the anti corruption

agencies formed have one of these structural

loopholes because of which they are incapable of

a fair and square investigation:

Lack of Independence : Most of the

agencies like CBI, state vigilance depart-

ments, internal vigilance wings of variousd e p a r t m e n t s ,

Anti-corruption

Branch of state

police etc are not

independent. In

many cases, they

have to report tothe same people

who are either themselves accused or are

likely to be influenced by the accused.

Powerless : Some bodies like CVC or Lo-

kayuktas are independent, but they do not

have any powers. They have been made

advisory bodies.

Lack of Transparency and internal ac-

countability : In addition, there is the

problem of internal transparency and ac-

countability of these anti-corruption agen-

cies. Presently there isn‟t any separate

and effective mechanism to keep a check

on the staff of these anti corruption agen-

cies .

In the first week of April,2011 Anna Hazare a

veteran social activist launched a crusade against

corruption and mobilized the public for the

same.He demanded the entactment of Jan lokpal

bill.A quick peep through what exactly Jan Lok-

pal bill is:

The Jan Lokpal Bill : The Jan Lokpal Bill

(also referred to as the

citizens' ombudsman

bill ) is an anti-

corruption bill drafted

by leading members

of civil society that

envisages speedy ac-

tion in corruption

cases against everyone, including ministers and

senior bureaucrats. The law would create an om-

budsman called the Jan Lokpal; which would be

an independent body similar to the Election

Commission of India with a power to whip any-

one and everyone(if found guilty of corruption).

Page 4Page 4(inspired from one of the chapters of India against corruption )




The bill was originally drafted in 1968. For 42years, the government-drafted bill has failed to pass

the Rajya Sabha , the upper house of the Parliament

of India. The first Lokpal Bill was passed in the 4 th

Lok Sabha in 1969 but stalled in the Rajya Sabha.

Subsequent Lokpal bills were introduced in 1971,

1977, 1985, 1989, 1996, 1998, 2001, 2005 and

2008 but all failed to pass.

Lets have a look at few of the salient features of Jan

Lokpal Bill:

Salient features of Jan Lokpal Bill:

An institution called LOKPAL at the centre and

LOKAYUKTA in each state will be set up.

Like Supreme Court and Election Commission,

they will be completely independent of the gov-

ernment. No minister or

bureaucrat will be able to

influence their investiga-

tions.

Cases against corrupt peo-

ple will no longer linger

on for years. Investiga-

tions in any case will have to be completed in

one year. Trial,in next one year so that the cor-

rupt politician, officer or judge is sent to jail

within two years.

The loss that a corrupt person caused to the

government will be recovered at the time of

conviction. How will it help a common citizen : If any work

of a citizen is not done in prescribed time in any

government office, Lokpal will impose finan-

cial penalty on guilty officers, which will be

given as compensation to the complainant. So,

you can approach Lokpal if your ration card or

passport or voter card is not being made or if police is not registering your case or any other

such case. Lokpal will have to get it done in a

month's time. You can also report any case of

corruption to Lokpal like ration being siphoned

off, poor quality roads been constructed or

panchayat funds being siphoned off. Lokpal

will have to complete its investigations in a

year, trial will be over in next one year and the

guilty will go to jail within two

years.

Its members will be se-

lected by judges, citizens and

constitutional authorities and

not by politicians, through acompletely transparent and par-

ticipatory process thus ruling out any chances of

weak and corrupt people becoming a part of it.

The entire functioning of Lokpal/ Lokayukta

will be completely transparent. Any complaint

against any officer of Lokpal shall be investi-

gated and the officer dismissed within two

Page 5Page 5




months.

All the existing anti corruption agencies like

the CVC, departmental vigilance and anti-

corruption branch of CBI will be merged into

Lokpal. Lokpal will have complete powers

and machinery to independently investigate

and prosecute any officer, judge or politician.

It will be the duty of the Lokpal to provide protection to those who are being victimized

for raising their voice against corruption.

Corruption has been silently eating the vitals of

the country since long.Its high time for all of us

to rise against it and pay our little to wipe it out.

We hope that the bill gets passed in the Monsoon

session so that we can look forward to such India

which has food for all, education for all, shelter

for all and no corruption.

- Deep Pathak

DoMS, IIT Roorkee

[email protected]

Page 6Page 6Page 6Page 6



One or more investors – Is it a good thing for the company?Page 7

To start a new venture or grow an existing one, what is the most essential thingthat you require? The answer to this is of course the capital or “money”. The

company can primarily raise capital either through debt or equity. Adding debt to

the capital structure is known as leveraging. If a company has more debt in its

balance sheet we can say that the company is more leveraged and vice versa.

Debt can be funded either through a bank or by issuing bonds which are known

as corporate bonds. Equity on the other hand is also an important element of the capital of the company

and represents the ownership interest. Both forms of capital are provided by the investors but in this arti-

cle we are largely talking about the equity investors.

A company raises capital in multiple rounds since valuation of a company changes over the period of

time and the company can get funds at higher valuations in subsequent rounds. Also, it may not be possi-

ble for the investor to commit large amount of capital into the company in one shot. These rounds are

known as rounds of financing. Initially, the company requires the seed capital which is mainly provided

by the angel investors (high net worth individuals) to start its operations. The amount of capital provided

by the angel investors is usually small since the business is in the starting phase and lot of risk is associ-

ated with it and banks are not ready to provide loans to the company. Once the operations take on, the

company further can raise capital through venture capitalists or private equity firms for their growth and

expansion.




One or more investors – Is it a good thing for the company?Page 8

The saying “There are no free lunches in this

world”, holds true here also. The investor will on-

provide capital only if he thinks that he can get a

decent return on it. Angel investors, venture capi-

talists and private equity firms largely finance the

capital through equity and not debt since equity

provides larger return to them as compared to

debt. Typically, they are looking for a return of

around 30- 40%. Depending upon the company‟s

profitability and its future prospects they will ei-

ther go for the minority or the majority stake in

the company. The investors who are the owners

of the company will help the company in its op-

erations so that they can reap profits from the

company in the future. Normally, the investors

are long term investors and they have investmenthorizon of 3-5 years. Over the period of time

when the company becomes profitable, investors

will exit from the company when they are almost

certain that they can get their required return on

investment. The investor exits either through an

IPO (Initial Public Offering) or by selling his

stake to the promoters of the company or to someother investors.

A company is always in dilemma that whether it

should raise money from a single investor or mul-

tiple investors in each round of financing. There

are both advantages and disadvantages which are

associated with multiple investors. One of the

advantages is that the company can raise larger amount of capital through multiple investors in-

stead of a single investor. During recession it may

not be possible for a single investor to invest a

large sum of money and at that time resorting to

multiple investors will be advantageous for the

company. Another advantage is that the company

can get assistance from different investors espe-

cially when it is located across the globe. If the

company is looking for diversification or trying to

enter new markets, it can also look for their ex-

pertise in that sector.

As there are upsides, there are also some down-

sides of having multiple investors. It becomes dif-

ficult for the company to manage the investors

especially if they are competitors. There could be

difference of opinion and misunderstandings

among the investors. Another downside is that the

promoter‟s shareholding may get diluted since the

investors always try to maintain a certain owner-

ship in the company (usually 20%) in each round

of financing.

The entrepreneurs consider both the upsides and

downsides of having multiple investors on board

but at the end of the day what they require is capi-

tal and the power to make decisions on behalf of

the company.

Page 8

- Divye Garg

DoMS, IIT Roorkee

[email protected]




All Men--Lets buy Diamonds--Not just for your women but also for yourself Page 9

Diamonds arewomen's best

friends. It has al-

ways fascinated

women all over

the world. But to

really think of it

we do not know

whether it is obsession, craze or passion of dia-

mond or its just jewelry that has always lured

women. The jewelry in India has always been

gold, which had stolen the hearts of women of all

ages and class. But now gold has been replaced by

diamond. Diamond which was earlier meant for

the elite, now it is common for all. It is believed

that possession of Kohinoor will enable women to

rule the world. So, after wearing diamond women

feel its state of rule. It is due to the beauty and

sparkle of diamond that it attracts all its buyers.

Diamond satisfies the modern woman's need for

something delicate and wearable. Let's take a

bird's eye view of the diamond industry and find

out what will be the growth of the industry in the

near future. Diamond prices, which have wit-

nessed a sharp rebound over the past year, will

remain firm over the medium term because of in-

creasing consumption in the emerging markets of

China and India and recovery in the US market.

Moreover, supply of rough diamonds is expected

to tightly match the demand. The credit risk pro-

files of diamond and diamond jewelry players areexpected to remain stable on the back of buoyant

demand outlook. China and India, the fastest

growing markets in the world, are likely to con-

tinue with their double-digit growth in the me-

dium term. The markets in India have grown by

around 25 per cent in 2010, and both China and

India have contributed to around 20 per cent of

the global consumer demand for diamond jewelry

in 2010, as against 12 per cent in 2008.

India is at an inflexion point and will see a struc-

tural shift in consumer preference for diamond

jewelry over the long term, resulting in a strong

demand growth. Jewelry sales in the US market,

which accounts for around 40 per cent of the

global diamond consumption, is estimated to have

increased by 7 per cent in 2010, driven by recov-

ery in consumer spending and inventory restock-

ing by retailers. The US market is likely to sustain

the recovery in consumption over the medium

term. Prices of polished diamonds have increased

by more than 30 per cent over the past year, in

line with the rise in prices of rough diamonds. The

strong demand coinciding with lower production

has resulted in prices of rough diamonds increas-

ing significantly and surpassing the pre-crisis

peak levels of 2008.

Rough diamond prices will remain firm over the

medium term , supported by buoyant demand and

Page 9Page 9




cautious supply management policies by the

mining players. During the downturn in 2008,

miners, especially the De Beers group, the larg-

est supplier of rough diamonds, curtailed supply

in line with subdued demand. While rough dia-

mond prices may be volatile over the short term

because of temporary demand-supply mismatch,

the prices will remain stable over the medium

term, as the supply is expected to increase with

the De Beers group likely achieving full produc-

tion capacity and Rio Tinto‟s Argyle mine com-

mencing underground operations.

The world's largest diamond producer is Russia.

Alrosa, Russia's state-owned diamond producer

reported excellent numbers for 2010, namely

revenue of $3.4 billion in 2010 which is around

1.5times bigger than the 2009 revenue. Theyexpect even bigger revenue for 2011. The Israeli

Diamond Industry is also experiencing a dra-

matic recovery, with growth of about 50 percent

in 2010. In the first quarter of 2011.Israel‟s net

polished diamond exports

jumped 46 percent. During the

same period polished diamond

imports into the U.S. rose by 22

percent over the first quarter of

2010. The US accounts for

about 40 percent of Israel‟s net

polished exports, which stood at

$5.8 billion in 2010..

Perhaps the most symbolic indicator of the re-

newed strength in the diamond market is Warren

Buffet recently standing behind the counter of a

Berkshire Hathaway owned Borsheim jewelry

store in Omaha following the company‟s annual

general meeting and noting to a customer that he

has never regretted buying jewelry.

The fundamental question here is whether the

current strong upward momentum is sustainable

or is it a short-lived reactionary spike in demand

in contrast to the dire situation the industry

found itself in the aftermath of the global finan-

cial crisis of 2008/2009?

The most prevalent risk to the positive outlook

for diamond markets is the overheating of the

market itself. The +30% surge rough diamond

prices during 2010 caused an increase in specu-

lative rough buying over the last six months andnow with polished diamond prices breaking

through price resistance barriers the prevalence

of speculative trading is becoming more pro-

nounced. The risk of buying activity in dealer

markets being dislocated from

reality does exist whereby more

and more market participants

are buying for the sake of hold-

ing inventory as opposed to

buying for the sake of fulfilling

real demand from further down

the pipeline.

Though overall outlook for 2011 is positive with

polished prices on track to post a 20 percent

Page 10Page 10




gain, however it important to be cautious about

an ease in prices or at least a moderation in re-

turn growth leading into the slower summer sea-

son. It is in these times of higher market volatil-

ity where trading risk becomes more pro-

nounced as many traders experienced the hard

way during the strong pre-crisis upswing of

2008. This trading risk is more prominent to

new entrants into the diamond investment mar-

ket who do not fully appreciate the nuances and

intricacies of what is a fairly complex and

unique trading environment.

Hence, from a more macro perspective, there is

overall positive market sentiment which is being

underpinned by solid market fundamentals. All

eyes are now focused on retail sales during the

current May Day retail season in China and next

month‟s all -important trade show in Las Vegas

which should set the tone for the second half of

the year. In India, with a number of brands like

Tanishq, Gilli, Carbon, Oyzterbay hitting the

jewelry sector , diamonds are being branded in a

big way with new entrants in the arena every-

day.

So all men out there, don't hesitate to buy your women, the sparkling stone, as it is bound to

give you reward in the future, both in terms of

investment and women ;-).

Page 11

- Dishant Hans

DoMS, IIT Roorkee

[email protected]

Page 11



“Kyonki Asli mazaa Sab ke saath aata hai” Page 12

Being heard amid the roar of your competitor‟svoice is a daunting task in today‟s crowded

marketplace. As a result, businesses are now

seeking new and more effective ways of in-

creasing brand awareness and more impor-

tantly, creating brand loyalty. One of the most

important tasks involved in ensuring a brand‟s

success, is to develop an effec-

tive Brand Promise. To success-

fully position your brand above

your competitor‟s, and continu-

ously fight for your customers,

you must develop a brand

proposition that when conveyed

in marketing and advertising

campaigns, will provide an at-

tractive, unique, and relevant

message to current and potential

customers. The brand proposi-

tion must be such which is

clearly understood, engaging

and presented in the right con-

text for relevancy. Apart from

all of these it should offer a so-

lution to the target audience‟s

current wants, needs & aspira-

tions.

Providing a Brand Promise that is easily under-

stood, engaging, and offers an emotionally posi-

tive solution to needs and desires, only serves to

enhance the current customers‟ perception of the brand. It might also conduce new customers

to look your way. But following through with

an excellent product/service and customer sup-

port will put an indelible mark in the memory

of your existing customers; one that will create

brand loyalty through good and bad times; a

sure sign of a brand‟s

strength.

Media and Entertainment

(M&E) is one of the fastest

growing sectors in India. The

entertainment industry in In-

dia is estimated at about US$

9.4 billion in revenues in year

2010, which is expected to

grow at a rate of 14.1 per cent

to reach revenues of US$

10.7 billion in 2011.

Further in M&E, the televi-

sion industry is expected to

grow by 12.9 per cent cumu-latively over 2009-14. M&E

players are aggressively en-

tering the television (TV)

broadcasting space. Broadcasters have added

444 television channels in the last five years

with over 100 channels getting added in 2010

alone. Last year witnessed the second highest

additions of television channels in the decade

Page 12Page 12




after 2008 which has a record permission for 152

channels. All this creates a highly competitive &

chaotic Television space where large number of

players are vying hard for your eyeballs.

Amidst the highly competitive Television indus-

try fighting ferociously for TRP‟s, the family

comedy and entertainment channel, SAB TV has

launched a unique initiative -- an exclusive club

for housewives across the coun-

try, a group that forms a signifi-

cant proportion of the TV chan-

nel's target audience. It will be an

initiative for the housewives, by

the housewives, to engage them

with the brand - thereby extend-

ing the brand platform and brand

promise of 'Asli mazaa Sab ke saath aata hai'.

The 'Happy Housewives Club' (HHC), as it is

called, is an aspirational platform for house-

wives, where women from across the country

would get an opportunity to exhibit their skills,

such as cookery, art, pottery, music, dance or

painting. They could even take up a social cause,celebrate a festival or simply go for a movie or

picnic. The club is being rolled out in 20-25 cit-

ies in the Hindi speaking markets (HSM) in the

country.

Each club will have five to eight members. In the

first phase, 20 cities will be targeted; SAB TV

aims to have 2,000 such clubs across India by theend of the year.SAB TV will assign an HHC

manager to each club, who will take care of its

day-to-day running. The manager will coordinate

the first meeting and provide information on how

to conduct activities and run the club. The mem-

bers will meet once every 14 days. In every club

meeting; members will be given themes by SAB

TV. To participate, the club members need to

perform the activity according to the theme, re-

cord interesting sections and

send this across to SAB TV. The

selected clips will be played in

the HHC show, which will be

aired on SAB TV every Sunday.

This initiative has been planned

to target the housewives who

constitute a major part of TVviewing audiences in India. TV is their only

source of entertainment and favourite pastime. In

order to engage and create a bond with the

women viewers, SAB introduced the Happy

Housewives Club. Through HHC, it hopes to

win over and create a bond with the women au-

dience among the growing base of SAB families.This initiative will extend the core values of

SAB, such as positive thinking, driving core

family positive values and being happy and opti-

mistic. These clubs are unlike regular kitty par-

ties, as they will help housewives showcase their

talents to millions of viewers across the country

through SAB TV. These clubs will try to provide

a unique platform for the aspirations of Indian

Page 13Page 13




Housewives. Majority of the female audience

fall into the bracket of 15-35 years, which is

highly dynamic and vibrant age band with lots

of aspirations. So striking the chord with the

aspirations of those millions of Housewives

would lead to the establishment of a strong

emotional connect with target customer base &

may provide a unique competitive advantage to

the SAB TV in the battle of TRP‟s.

This comes close on the heels of the success of

SAB TV's other consumer con-

nect programme, SAB Ka Mela, a

fun and entertainment fair organ-

ised in cities such as Ahmedabad.

SAB Ka Mela had a myriad of

attractions such as games, rides,contests, stalls, art and culture

shops, traditional folk dance and

song performances. Artists from SAB shows

also visited SAB Ka Mela to enjoy the festivi-

ties and reach out to their fans and audiences.

Event provided a strong connect with the cus-

tomers in Ahmedabad, which is the strongestmarket of SAB TV. Riding on this wave of suc-

cess, Channel plans to take the event to 15 other

cities including Lucknow, Nagpur, Jaipur and

Ludhiana. In each city, the local culture and art

forms will be brought alive with local artists

performing at the events.

An important aspect of brand development is to

create a positive emotional attachment to the

brand which creates a response in its audience

without the audience seeing the product or di-

rectly experiencing the service. Positive emo-

tional bonding comes from a mutually benefi-

cial relationship built on intrigue, trust, under-

standing, and support. These are qualities that

often separate colleagues from friends, and

friends from family. Build your brand promise

on the basis that your product will deliver posi-

tive, relevant, and unique emo-

tional qualities. SAB TV through

all these initiatives has been try-

ing hard to deliver on its brand

promise of 'Asli mazaa Sab ke

saath aata hai'.On-air promotions have been

running on SAB TV and are at-

tracting a good response. The promo shows

housewives cheerfully going about their daily

activities, such as watering plants, giving their

family breakfast, hanging clothes out to dry,

and so on. The promo ends with all thesewomen coming together to meet and chat.

Let‟s spread this message to your mumma‟s,

wives, sisters & all other housewives. Kyonki

Asli mazaa Sab ke saath aata hai.

Page 14

- Rahul Rathee

DoMS, IIT Roorkee

[email protected]

Page 14



Financial Inclusion-Growth Inclusion Page 15

“Money makes money” isa common saying that I

have heard since long. But

does it really hold good for

all. Not always!! It all de-

pends whether that person

has the requisite knowl-

edge or access to the finan-

cial institutions. Knowledge can be gained from

systematic academic learning or by the experi-

ence. That‟s how we had tycoons in financial

world even when they were less educated. But if

there are no financial institutions how can any

individual deal in financial instruments or enjoy

the services of financial institutions. Therefore,

financial Inclusion is very crucial for progress of

a nation.

What is financial inclusion?

Financial inclusion is the delivery of financial

services at affordable rates to sections of disad-

vantaged and low income segments of society.

The way of delivery of essential goods and

medicines is crucial for the health of rural peo-

ple. Similarly delivery of services like saving

account, loan facilities and fixed deposits are

important to keep their financial position

healthy, especially when rural landlords and pri-

vate lenders charge exorbitant rates. The term

came into importance since a decade or so, by

being the topic of discussion at various globalconferences & platforms.

United Nations‟ main goals of Inclusive Finance

are to provide holistic service covering entire

range of financial services, sound institutions,

financial and institutional sustainability and to

bring cost-effective solutions and a wide variety

of alternatives to customers.

Facts in India:

Though on paper we might have made remark-

able progress, the reality on ground is a little

different. Say for example when the National

Literacy Mission defines literacy as acquiring

the skills of reading, writing and arithmetic andthe ability to apply them to one's day-to-day life,

practically, ability to read, write one‟s name and

to sign are considered acceptable. Similarly

while the international approach for financial

inclusion may be providing all types of services

as per the UN‟s goal, India focuses on financial

inclusion confined to ensuring a bare minimum

access to a savings bank account without frills,

to all. According to the latest data, the percent-

age of population having a savings account

is only 57 % with a majority being from an ur-

ban background. The percentage of debit card

and life insurance holders is even less at 13 %

and 10% and only 0.6 % of the population has

non life insurance.

Page 15Page 15




The lack of availability of financial services

may result in a higher incidence of theft/crime,

less savings /backup for difficult days, no scope

for investment or money growth, difficulties in

gaining access to credit or getting credit at exor-

bitant rates, etc. Even the small business may

suffer due to loss of access to willing and able

consumers and higher capital costs. Thus lack of proper financial inclusion leads to stagnation

of economic growth of rural areas, and affects

overall growth rate as well.

Financial Initiatives:

RBI being the regulator of financial institutions in India

took key steps for financial

inclusion since the beginning

of this decade. Initially all

banks were advised to make

available a basic banking 'no-

frills' account either with 'nil'

or very low minimum balance

as well as charges that would make such ac-

counts accessible to vast sections of population.

Thus it was an attempt to reduce the monetary

barriers for financial inclusion.

The idea of establishing more rural bank

branches „brick and mortar‟ model, since long

back, failed to include more population in the

financial domain at an effective and cost effi-

cient manner.

Then in 2006 RBI through its “Financial Inclu-

sion by Extension of Banking Services - Use of

Business Facilitators and Correspondents”,

granted banks to use the services of Self HelpGroups, NGOs, Micro Finance Institutions and

other Civil Society Organisations as intermedi-

aries in providing financial services through the

use of Business Facilitator and Correspondent

models for providing limited services. Non-

banking financial corporation (NBFCs) and mi-

crofinance institutions (MFIs)tried to capitalize this opportu-

nity. Very soon few MFIs like

Bandhan, Microcredit Founda-

tion of India, SKS Microfinance

Private Ltd created their place in

the market. SKS Microfinance

also went ahead with IPO and

received overwhelming response

from the financial markets. With few cases of

misappropriate behaviour of MFIs, Andhra gov-

ernment came up with Microfinance Ordinance.

Result, all MFIs lost heavily on their share

prices and investor‟s interest, making money

raising more difficult for them.

Page 16Page 16




Government must take help of the alternative

delivery systems for last-mile delivery of fi-

nancial services, may be post & telegraph in-

frastructure or the network of mobile compa-

nies.

But there should be enough incentive for pri-

vate sector or public sector for developing and

expanding alternative delivery systems. Also

regulatory impediments and price controls

should be more pragmatic rather than based

on idealistic theory.

Continuation of existing regulations on banks

to lend to priority sectors coupled with new

instruments, means of financial services can

be of vital importance. Using the mobile

phone technology to provide savings product

to the poor appears to be a promising new so-

lution. The pattern of discussion on issues or

inviting suggestions from experts/general peo-

ple as used by Ministry of Environment and

Forests can be used for this issue to come upwith new innovative solutions. Government

must walk an extra mile; seek help from all

sectors of society to have effective and cost

efficient financial inclusion to further boost

the economic growth of our country.

Page 17

- Paresh Kulkarni

DoMS, IIT Roorkee

[email protected]

Page 17



Special Economic Zone Page 18

SEZ (Special

Economic Zones)

is a geographical

region that has

more free market-

oriented policies

than other parts of

the country. A SEZ is established to encourage ex-

ports and to enhance foreign investment in the coun-

try.

Its history backs to year 1965 when 1 st EPZ (Export

Processing Zone) was setup in 1965 at Kandla which

was followed by various EPZs being set up across the

country. But EPZ model could not deliver the ex-

pected. Thus in 2000, the new export and import pol-

icy allowed for SEZs to be set up in public, private or

joint sectors or by state governments. All eight EPZs

were converted into SEZs with a total number reach-

ing 19,prior to the promulgation of SEZ act . SEZs

have been enabled to provide hassle-free and interna-

tionally competitive environment for exports.

The various incentives for the SEZ developers so asto encourage them were exemption from duties on

import, exemption from service tax ,income tax ex-

emption of 100 percent for the first five years fol-

lowed by 50 percent in the next five years, exemption

from CST,MAT etc.

Besides the operational ones, SEZs in the country can

be classified into three types :

Formally approved: They have been given the

land they require but other conditions have

not been satisfied. Currently 584 in number.

In principal approval: Land has not been se-

cured but other conditions have been satisfied.

155 have been given these kinds of approval.

Notified: Final stage after which the construc-

tion work begins. 363 in number.

The above data represents the number of SEZs

that are still on paper. As of now there are 114

SEZs that are operational in India. There are 3048

units working in these 114 SEZ. The total money

that has been invested into the SEZs is around

1,66,000crores. These SEZ provide employment

to 5,50,000 persons across the country. In 2010

(upto June 30th) the total exports were Rs.

58,685.46 crore (All data are from 2010,4th quar-

ter)

All these paint a rosy picture of the SEZ scenario.

But the actual picture is much ugly. According to

the Parliamentary Standing Committee‟s 83rd

report, presented In the RajyaSabha in June 2007,the Ministry of Finance estimated a revenue loss

of Rs 175,487 crore from tax holidays granted to

SEZs, for the period 2004-05 to 2009-10.More

recently, in January 2010, the Central Board of

Excise and Customs (CBEC) declared that it had

detected gross violations of duty and tax conces-

sions causing it to suffer a revenue loss of Rs

175,000 crore to date.Another important issue is

Page 18Page 18




diversion of exports from DTAs to SEZs. In other

words, the rapid increase in exports from SEZs

has been accompanied by a drop in exports from

non-SEZ areas, indicating a

possible shift of units from

outside SEZs into SEZs -- a

trend that merits serious in-

vestigation. The idea behind

SEZ was development of

new units, not to encourage

a mere shift of units from

one area to another.The issue of positive NFE

(Net Foreign Exchange) and physical exports is

also controversial, as Rule 53 of the SEZ Act,

which considers sale to DTAs from SEZs, is

deemed exports. CAG report of 2008 observedthat “22 SEZ units had been achieving the pre-

scribed „positive‟ NFE mainly though domestic

sales and this defeats one of the sub-objectives of

the scheme which was to promote real ex-

ports.The extent of benefits drawn by developers

(mostly real estate and infrastructure companies)

in the name of export augmentation, and the taxexemptions taken together, in itself seem outra-

geous. All this, coupled with other factors like the

measly prices at which government and agricul-

tural land has been diverted to developers, and the

social and environmental costs of these projects,

results in cumulative losses to the public excheq-

uer that far outweigh the benefits.

Other than this SEZ came under severe criticism

for various social impacts in various parts of the

country. Protests have risen over various corners

of the country because of the unfair practices of

land acquisition by the SEZs.

They have been severely criti-

cized for destroying agricultural

land, causing pollution and us-

ing the land acquired for resi-

dential purposes rather than us-

ing it to develop industries. Be-

sides all these problems the ma-

jor grievance in case of various SEZs is that it has

failed to bring any increase in FDIs. Though es-

tablished mainly to increase the influx of foreign

moolah and to attract foreign investors, sadly

SEZs have failed in both these facets.

Where did it all go worng? Various factors com-

bined together to cause the failure of SEZs. Start-

ing with formulation of laws. There were many

loopholes which were exploited by the companies

for their private gain.SEZs are becoming vehicles

for domestic industries to shift their export seg-

ments and this could nullify the advantage of in-

cremental growth in country's exports. Another

reason is lack of infrastructure in the country.

SEZ were successful in China mainly because the

country had excellent infrastructure to offer even

before the concept of SEZ was introduced and

these have been continuously improved and up-

dated by the Chinese govt. In case of India, lack of proper roads and other infrastructure facilities

Page 19Page 19




has a large contribution to the failure of SEZs.

Another reason is the locational disadvantage of

various SEZ. Instead of few well developed SEZ

spread equally throughout the country, India has

numerous small SEZ developed

in clusters across the country.

This leads to inefficiencies in

terms of transportations of raw

materials. Also it leads to unequal

development and administrative

problems for the government. In

many cases, the credentials of the

developers are not so good as to enable economic

financial closure, nor do they show pronounced

organisational capabilities of leading high-impact

business entities.

As we can see the SEZ policy of the government

has been termed as a major failure by various in-

stitutions and analysts across the country. How-

ever, there is still some scope of improvement

which might turn the situation around:-

Strong fiscal disincentive/penalties for SEZsto sell in domestic market

Proper location and size for every SEZ

Proper checking of developers credential anda constant check on their activities.

Proper rules to compensate farmers

Disincentive for SEZ in and around metro cit-ies

Proper co-ordination between various minis-

tries.

Encourage units to add extra infrastructure tothe zone.

Through these we can try to convert

the SEZ policy to our benefit. SEZs

should not be outrightly rejected

because one successful SEZ in the

country can really bring radical

changes to the country. India does

not need more SEZ, neither does

the situation call for complete removal of SEZ

policy, but the government must focus on com-

bining small clustered SEZ into fewer, well estab-

lished, properly equipped SEZ like those of

China. Comparing to China, analyst suggest one

Shenzhen (The biggest SEZ of China) can bring

India FDI in excess of $20 billion with per capita

income touching $5,000. This means India can

become debt-free, with surpluses on its balance of

payments! That is definitely something to achieve

and hope that the government realizes the full po-

tential of these SEZ by removing the fallacies of the present SEZs.

Page 20

- Anshika & Rohit

DoMS, IIT Roorkee

[email protected]

[email protected]

Page 20



Story of a Hat Page 21

It was a day in the middle of November in the early 1900s, the sun was bright, the

weather cool. I could see the bright gleaming eyes and the smile of satisfaction on

my Maker‟s face. My body was shinning and I smelt of fresh satin and i was

happy! Hey, before I forget to tell you, I am a hat! Yes I am the object that cov-ered the bald head to the head with matted hair, the judge‟s head to the plaintiff‟s. I was treated well

when I was young and now I lay as a piece of decor on my mater‟s wardrobe. I might be old but I am

still happy! Let me tell you my story

Just after I was born, I became the object of my Maker‟s delight; he was fine old man w h o

treated me like his son. I was the example of his art and was always put in the show- ca se.

But I ain‟t complaining, because here i met my love, my darling, my sweetheart, the one without

whom I could ever live! It was love at first sight. We were put side by side on the most

gleaming showcase; it seems to me now that it was all destiny! I saw her and it seemed

to me I was just born to make her happy, she smiled at me and it seemed she recipro-

cated my feelings! I was shy, I was young, I could not talk to her much that day, but I couldn‟t keep

quite either. It was a strange feeling, a happiness that i could never explain! That was the first day!

Every day after that the visitors, young boys and girls, old stout men, busy businessmen, were pass-

ing by the shop, they never missed looking at us with a smile and longing. We, it seemed to me were

the ideal couple. I would spend the entire day looking at her and admiring her beauty, i never grewtired of it! We didn‟t need to talk as our eyes said everything! At nights when the shops were closed,

and the beggars asleep on the streets, i could see her, my love, in the moonlight! Oh! That was a sight

to behold! Man could after all rival God‟s creation I felt!

And so time passed by, I never grew old of her, I never wanted anything. I had her and she had me,

we were after all in separable! But as in all epic love stories, the climax came. My master who had

gotten old had passed away, leaving the shop to his grandson. Now he being a young brash

could never understand the art that we were. He sold the shop! We were on the streets

Page 21Page 21



Story of a Hat Page 22

waiting to be auctioned. I prayed and hoped that wherever we go, we go together. Our eyes had

welled up, but i was still holding her hand, as if I never wanted to let go. But prayers are never easily

answered. We were sold to two different customers. My master a young gentleman made no delay in

putting me on his head. And as he walked away I walked away from her. I could see her weeping on

top of a lady‟s head, she adorned, oh, she still looked so pretty. With a broken heart

and a depressed mind, it was the start of a new life for me in more ways than one.

I slowly got used to the drudgery of my life. I changed masters, got stitched and

painted, got the ribbons on my face changed, but my heart never changed, it still belonged to one i ever loved. I spent nights thinking about her, her well being, her

condition and most of all hopes beyond hope of meeting her again. Her face just

flowed on my mind all day.

Then one day, it was drizzling, i was going with my master, a law student, who had put me on to save

himself from the rain. The young guys have no respect for anyone I must say. As we were hurriedly

moving, this guy bumped into someone hard, and I fell from his head, I rolled a little and stopped, I

was shocked! There was she right in front of me, the same angelic face, and thesame unrivalled beauty! Could someone fall in love at the first sight with the

same person again? It seemed so! She had‟nt changed a bit but neither did my

heart it seemed! She still loved me; I could see it in her eyes. There was happi-

ness and the sadness of the thought that we would part again. My heart it seemed would break once

more.

But human beings, I must say are very much like us! As we had fallen in love all over again, my mas-

ter and my love‟s lady, as they had bumped into each other, had been stuck by cupid it seems. Love isspecial, I now believed. So that day was special for both of us couples, as we never left each other,

and never intend to. Our masters considered us lucky for them and gave us a special place in their

wardrobe and their hearts! And even as I tell you this story, I am sitting right beside, holding her

hand and looking at her eyes!

Page 22

- Aniruddh De

DoMS, IIT Roorkee [email protected]

Page 22



Qutopia 18

It‟s Exquizite, Kills your Quriosity and adds to your Quizdom. Need we say more?„Qutopia‟ – A Utopia of the best Biz Quiz Tidbits to wreck your brains! Rush in your an-

swers to [email protected], [email protected] before 31st July,

2011. The winner will have their names published in the next issue. Also, person getting the highest score in the current quarter (July-September 2011) will get a gift voucher. Answers

in the next issue of DoMination.

2. Borrowers who have good credit Rating are known as "Prime" Borrowers. If a loan is given to borrow-ers having poor credit Rating, what is the name given to such borrowers?

3. This is a document prepared by a company mainly for potential investors for entering into the primarymarket through an Initial Public Offering (IPO). Name this document which may not contain informationlike the price nor the number of shares to be issued.

4. Name the two companies that will replace Reliance Communications and Reliance Infrastructure fromthe Sensex, BSE Benchmark Index from August 2011?

5. Name this author who recently launched his second book in the Ibis Trilogy series covering the events

just before the Opium War between Britain and China?

6.Connect the following?

Tata Docomo: Tata Teleservices :: Idea Cellular: ____________ ?

Section A

(1 Point for each correct answer)

1. Identify this network of trade route used in Ancient

times?

Page 23Page 23

mailto:[email protected]

mailto:[email protected]



Qutopia 18Page 24

2. India has Double Taxation Avoidance Agreement (DTAA) with as many as 79 countries providing specific relief to taxpayersto save them from double taxation. Majority of the Foreign Institutional Investors (FIIs) investing in the Indian Stock Market

operate out of Mauritius. Along with DTAA, what other benefit attracts FIIs investing in India to operate out of Mauritius?

3. What connects the following:

Process: People: Physical Evidence?

4. This is the type of market Structure characterized by large number of Competitors producing slightly differentiated products,

low barrier of entry & exit and have large Marketing Budget. Name this type of Market Structure or competition

Section B

(2 Points for each correct answer)

1. He is a former Governor of RBI. Identify this Padma Vib-hushan Awardee?

Answers to Qutopia 17

Section A:

1. Burj Al Arab, Dubai, UAE2. Islamic Banking3. Smokey Bear in the world and AMUL in India4. Warren Buffett, Chairman & CEO, Berkshire Hathaway5. Facebook brought the ‘fb.com’domin name from Farm Bureau of America in Jan 2011 6. Dr. Amit Mitra

Section B:

1. Mr. B. Muthuraman, President, CII2. As of March 2011, China Mobile is the world’s largest mobile phone operator with over 600 Million subscribers 3. As of March 2011, 85% of west Bengal state’s revenue receipt was spent on committed expenditure. 4. The book is ‘Liar’s Poker’ authored by Michael Lewis

Winner:

Udit Gupta (DoMS, IIT Roorkee: 2010 — 2012 Batch)

Manoj Gurramkonda (DoMS, IIT Roorkee: 2010 — 2012 Batch)The Winner for the Quarter 1 (April to June Edition) is Gurramkonda Manoj (2010-12 Batch) with 36 Points out of a Maximum of 42 Points

- Rajneesh Kumar

DoMS, IIT Roorkee [email protected]

Page 24Page 24



DoMS-da-Evince Page 25

This time in DoMS da Vince, we bring excerpts from an interview with Mr. SumitKapoor , a dynamic and vibrant consultant with over 9 years of experience. Apartfrom being a Management Graduate from DoMS, IIT Roorkee (Batch 2002), healso has a certification in Management and Leadership (one year course) fromHarvard Business School. Besides his wonderful credentials this vivacious alumniholds a mixed bag of experience in several top notch companies like Ernst andYoung, CBRE, Deloitte Touché Tohmatsu, Jindal Group and an exposure in thedomain of Transaction Advisory, Management Consulting, Executive Assistanceand Corporate Finance across several business sectors.

1.) What were the roles and responsibilities

while working with Jindal Group?

I started my career with Jindal Group in the do-

main of Corporate Finance but eventually be-

came a key resource of their Corporate as well

as Project Finance team. I was solely responsi-

ble for the work done as regards to Project Ap-

praisals and Project Debt Funding, including

maintaining relationships with all the term lend-

ers to the company, and in the process achieved

financial closure for projects worth over Rs.

1,000 crores.

I was fortunate enough to introduce the concept

of derivatives by way of an interest swap and a

currency swap. Moreover, at the time of first

private equity placement in one of the sister

concerns of Jindal group, with a renowned pri-

vate equity player, I worked as a key resource

person in handling the financial aspects of thedeal, which finally was closed successfully.

In addition to the above, I contributed to exer-

cises like analyzing investment strategies,

evaluation of acquisition proposals, debt re-

structuring from the perspective of optimizing

debt cost structures, valuations of group compa-

nies from the perspective of merger for strategic

purposes, etc.

2.) What prompted you to take a course at

Harvard Business School and how did it help

you in your career?

HBS came in as luck for me. I was working

with Deloitte, then, and was short-listed to par-

ticipate in a competition wherein the employees

of Deloitte, short-listed globally, compete to be

selected for a structured programme duly organ-

ized in and by HBS. The process involve testing

the employees on the basis of their managerial

and technical skills and 2%-3% of the short-listed employees then go to HBS for further

Page 25Page 25



DoMS-da-Evince Page 26

studies.

4.) How was the experience working with

CBRE, a real estate firm?

CBRE was a good experience in terms of under-

standing the world of real estate not only from

the perspective of consulting but working very

closely with the brokers and thereby, understand-ing the „Reality of Reality‟.

5.) What challenges did you face working as

the Vice President of E&Y?

EY was definitely a senior role to play with lar-

ger teams and responsibilities to handle. Whatone required under such circumstances, to pos-

ses, was the ability and willingness to plan me-

ticulously and execute carefully. Considering the

responsibilities attached to my kind of role,

every assignment was unique in itself requiring a

detailed level of homework with targets defined

well in advance, even before I could win over my clients to get a new project for myself. More-

over, this level of roles demand for people who

are self-motivated to perform under difficult

situations that maybe everlasting in nature.

6.) What has been the most challenging role in

your career so far?

I believe that all the roles I have been a part of

had some or the other challenge. In my first job,

my challenge was that I was a fresher while in

Deloitte, the challenge was that I was a fresher to

the world of consulting and a system well known

to have defined set of processes. CBRE threw

me into an unorganized segment of consulting

wherein I used to interact even with the lowest

strata of the world of Real Estate as well as unor-

ganized brokers to understand markets and EY I

have already discussed.

However, I must also admit that had these chal-

lenges not been a part of my career, I, probably,

may not have seen myself learning new things

and grow in my career.

7.) How has DoMS, IIT Roorkee contributed

in your success?

Well, I should be thankful to anything and every-

thing that‟s been a part of my life, be it my early

education days, my stay in DoMS, IIT Roorkee,

my teachers, family or friends. But I definitelyowe a major part of my grooming to DoMS days.

I would simply summarize it in a way that while

I gathered knowledge from wherever I worked or

places and people I visited, but at the end of the

day, DoMS, the faculty and my batchmates as

well as friends in other department of IIT Roor-

kee really helped me learn and recognize the fact

that it‟s not important to do your work but it‟s

Page 26Page 26



Regardez I'economie Page 28Page 28Page 28

Welcome to our new section Regardez I'economie

In this edition, we delve into the major economic activities of June 2011 that had an impact on Indian economy

There is a lot being saidand writtenabout the

UPA Government‟s failureon social front since it or-ganized a planned mid-nightswoop on the fast called byBaba Ramdev.The fast wascalled by Anna Hazare andlater by Baba Ramdev, to

pressurize the Governmentto come clean on the anti-corruption front, after high

profile corruption cases likethe CWG and the allocationof 2G spectrum licenses in-volving union ministersfrom the ruling UPA Gov-ernment came to light.Clearly, the intentions of the

Government seem dubious,given the long-ranging dif-ferences over the draft of theLokpal Bill between mem-

bers of the Government andthe members of the CivilSociety. Government claimsthat they won‟t allow them

to run a parallel Govern-

ment, in a way signaling thatthey are above the Civil So-ciety. Whatever may be theoutcome, but these activists

have been successful in giv-ing sleepless nights to theGovernment and have after along time united the aamaadmi, giving them a com-mon cause to join hands.

It is not only on the socialfront in which the UPA

Government is faltering. Onthe economic front also it ishigh time for the Govern-ment to come out of the po-litical mess and turn its at-tention to the much awaitedeconomic reforms that had

been promised by the UPA before its victory. For example, reforms in its FDI poli-cies for sectors like retailand insurance. Also the im-

plementation of the Goodsand Services Tax (GST) has

been long overdue, a modewhich will make the taxation

process simple and the pro-

ducers will be taxed just

once rather than separately,to account for both the Cen-tre and the States.

Inflation has been a

constant head-ache for thisGovernment as the headlineinflation; the Wholesale-Price Index (WPI) has beenhovering at around 8-9 %,much above the RBI‟s com-

fort limit of 5.5%. Thissurge in inflation has pri-

marily been led by the foodinflation due to increase inthe prices of primary foodarticles like milk, sugar,

pulses, fruits, vegetables,etc. The consumers are feel-ing the pinch of inflation,leading them to reducedspending. The Reserve Bank of India, in its endeavor totame the inflation, has in-creased the interest rates tentimes since July last year buthas still not found any head-way. As a result of the in-crease in interest rates, thelending has become very

expensive. The corporate is




either cutting down or delay-ing its projects until the ratescome down, leading to re-duced investment environ-ment all-around. Trackingthe performance of theBenchmark indexes, namelythe BSE and the NSE on this

backdrop, we can see thatthe BSE SENSEX whichwas at 18608.81 as on June01, 2011 had slipped to17550 as on June 23 as For-eign Institutional Investors(FII‟s) have been dumping

Indian stocks recently, onworries over rising inflation

and a slowdown in eco-nomic growth. They havesold a net of $ 628 million ina total of eight sessions toJune 21.

But the markets witnessed a bull-run in the last week of this month as the BSE's 30-

share SENSEX rose 513.64 points, or 2.89%, to18,240.68, its first weeklygains this month, on June24th. The NSE's 50-share

Nifty gained 151.25 points,or 2.84%, to 5,471 on the

backdrop of a drop in inter-

national crude prices after

the non-OPEC members of the G20 nations decided torelease 60 million barrels,equivalent to three days of US demand, from strategicreserves, to counteract the

ploys of the oil cartel and toincrease the global oil sup-

ply .The investors alsocheered the European Un-ion's commitment to bail outGreece, if Prime Minister George Papandreou pushedthrough austerity measures..

A recent bold move by the Government has beenthe increase in the prices of diesel by Rs. 3/lt, kerosene

by Rs.2/lt and cooking gas by Rs. 50/cylinder. To pro-vide resistance to inflation-ary pressure, it withdrew the5% duty on crude and re-duced Customs and Importduty on diesel. Also, it urged

the states to cut back on thetaxes levied by them, tolimit the increase in pump

prices. The increase in prices again led to scathingcriticism of the UPA Gov-ernment, backed by the op-

position, who is calling this

Government “anti - people”.

Economists are of differingviews regarding the hike in

prices as some are of theview that the move is defi-nitely inflationary and theinflation would move up byat least 1 percentage pointand would touch double dig-its. The others are of theview that the move would beinflationary only in the shortrun but in the long term,economy would be able toabsorb it considering thesupply would improve onthe back of a strong mon-soon and the prices will

drop. Whatever the conse-quences, but the marketsopened in green the nexttrading day to the hike in

prices, suggesting that theinvestors gave a thumbs upto the hike. But clearly,there was not much option

before the Government as itwas under severe pressurefrom the Oil MarketingCompanies (OMCs) and theOil Ministry to hike the oil

prices. It was getting diffi-cult for the OMCs to further carry on with the burden of huge subsidies on oil ascrores of rupees are lost




Everyday owing to selling atsuch subsidized rates. Thishas lead to reduced refiningmargins and as such to re-duced “bottom lines”. Even

after this hike, the Oil minis-try stated that it would costaround Rs. 67,000 Cr. to theexchequer owing to thedownward shift of duties.So, this hike would onlymarginally improve theearnings of the OMCs.

The markets pan-icked to the downward fore-cast of the monsoon from“normal” to “just below nor-

mal” by the Indian Meteoro-

logical Department (IMD)as most of the indices of the30 stocks Benchmark SEN-SEX ended lower than their

previous day‟s close. Even

the GDP figures for the lastquarter were not very en-

couraging as India‟s econ-

omy grew by just 7.4% inthe last quarter compared tothe 8.2% growth rate itachieved in the previousquarter, leading to down-ward revision of the GDPfigures for the full year bythe international rating agen-cies, though only margin-ally. But the figures itself are not very encouraging for the Asia‟s and the World‟s

second fastest growingeconomy given the fact thatit grew by an average of around 9% while the globaleconomy was in the midst of

a recession. The last monthalso witnessed a bad newsfor global companies intend-ing to list on the Indian

bourses by issuing IndianDepository Receipts (IDRs)as the SEBI, in its report,stated that IDRs shall be

deemed to be “infrequently

traded” if the annualizedtrading turnover in IDRsduring the six calendar months, immediately pre-ceding the month of redemp-tion, is less than five percentof the listed IDRs.The Stan-dard Chartered issue of IDR‟s were traded

a r o u n d 4 8 %which means thatthe IDR‟S will not be avail-

able for conversion into eq-uity shares (10 IDR‟s make

1 equity share). This meansthat Standard Charteredcould well be the first and

also the last company to listin the Indian markets byway of IDR‟s. With this new

announcement by SEBI, in-vestors who were hopingthat they would be able toconvert and make some

profit would be in for a ma-

jor disappointment.

- Mukesh Rathi

DoMS, IIT Roorkee

[email protected]



The Team

Shruti Goel

Anuj Mody

Chetna Yadav

Anirudh De

Deep Pathak Harsh Singh

Mukesh Rathi

Pallavi

Rajneesh Kumar

Rohini Sharma

Rishi Arora

Udit Gupta

Sudeep Dakua

Domination July 2011

Documents

Transcript of Domination July 2011