Anagram's Tower biz Update : Rcom 15/05/2008

Reliance Communication Update

 

Reliance Infratel gets SEBI Nod for IPO.

 

According to news reports, Reliance Infratel got SEBI Nod for its IPO. It plans to dilute 10% stake for Rs5000 – Rs6000 cr. Reliance communication holds 95% stake in Infratel. This pegged Reliance Infratel equity valuation to US$12bn. In July 2007, several international investors agreed to buy 5% stake in Reliance Infratel for US$337m.

 

Reliance communication demerged its tower business and formed a company Reliance Infratel Ltd (RIL). RIL is basically a passive Infrastructure company having an asset base of 37000 towers, which it plans to scale up to 60,000 by FY09 and 70,000 by FY10.  The main objective of the issue is to install 16,000 new sites at an estimated cost of Rs4600 cr.  

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Chennai Petroleum Corp Ltd (Q4 FY08): BUY

Chennai Petroleum Corp Ltd (Q4 FY08)

CMP Rs350, BUY

Target price Rs459,  Upside 31%

 

ä      Higher throughput coupled with galloping realization led to revenue growth of 46.7% yoy

ä      Highest GRMs historically translates into expansion of 90bps in OPM

ä      Strong trend in GRMs to continue over the next couple of years

ä      Capacity to increase by 1mn tons per annum through de-bottlenecking

ä      Maintain BUY with a target of Rs459, upside of 31%

 

Click below for the quarterly update of Chennai Petroleum Corp Ltd.
http://www.indiainfoline.com/content/rep/Result_Analysis/2008/5/1652008/cpcl_0408.pdf

 

 

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Korean company enters Pune in GPS segment

In a bid to tap the future Rs 900 crore navigation systems market in
India, leading Korean GPS equipments manufacturer J Communication Ltd
has set up its first off-shore facility in Chakan near Pune.

Being built in collaboration with Pune-based Bharat Navigation Pvt Ltd
(BNPL), the unit will start delivering global positioning navigation
system products from October onwards.

J Communication, General Manager Kenny Kwon told Business Standard,
the company plans to export its products manufactured in India to
south asian countries and Europe.

Hyderabad-based SatNav Technologies will provide the necessary
software and maps to the GPS equipments manufactured at the Chakan
plant.

"Indian automobile industry is growing at five per cent annually. The
automobile market in India would be worth Rs 7,60,000 crore by year
2012 and that ensures immense potential for GPS equipments in the
country.

The car accessaries market will also cross Rs 56,000 crore in another
three years. We are trying to explore the market opportunties in this
segment through our new venture," Bharat Navigation Managing Director
Summit Salunke told Business Standard .

Bharat Navigation will deliver GPS equipments comprising of video and
audio players along with picture viewer and GPS tracking unit.

"There are only two players in India in this particular segment. With
competitive pricing and a strong software and mapping support for 72
cities in the country, we plan to achieve sales worth Rs 50 crore
during the first year," said Salunke. Bharat Navigation has priced its
products between Rs 16,000 to Rs 23,000.

J Communication, a Rs 240 crore Korean company, would primarily look
into the manufacturing and technology support for the products while
Bharat Navigation will take care of marketing and sales. "We will
disclose the share holdings in the joint venture in near future,"
Salunke stated.
 

 

 

Chennai Petroleum Q4 net profit at Rs 343.9 cr

CPCL has declared its results for the quarter ended March 2008 (Q4).
The company's net sales was at Rs 8399.5 crore versus Rs 5725.2 crore
on YoY basis.

During the same quarter it net profit was at Rs 343.9 crore versus Rs
189 crore on YoY basis.

World economy will grow by 1.8%: UN

World economy is "teetering on brink" of downturn and will only grow
by 1.8 % this year: UN.

The world economy is ``teetering on the brink'' of a severe downturn
and will grow by only 1.8 percent in 2008, the United Nations said in
its midyear economic projections.

That's down from a global growth rate of 3.8 percent in 2007 _ and the
downturn is expected to continue in 2009 with only slightly higher
economic growth of 2.1 percent, the U.N. report said Thursday.

The midyear update of the U.N. World Economic Situation and Prospects
2008 blamed the downturn on further deterioration in the U.S. housing
and financial sectors in the first quarter which ``is expected to
continue to be a major drag for the world economy extending into
2009.''

But the U.N. said developing countries won't suffer as badly. They
should grow by 5 percent this year and 4.8 percent next year, compared
to a robust 7.3 percent in 2007.

The U.N. economists said the deepening credit crisis in major market
economies triggered by the U.S.-led slump in house prices, the
declining value of the U.S. dollar, persistent global imbalances, and
soaring oil and commodity prices ``all pose considerable risks to
economic growth'' in both developed and developing countries.

``The baseline forecast projects a pace for world economic growth of
1.8 percent in 2008,'' the U.N. report said.

But it said the final figure will largely depend on developments in
the United States.

Global growth this year could fall to 0.8 percent if the U.S. sub-
prime mortgage market turmoil has a more serious impact on developing
countries and countries in transition, the U.N. report said.

But if the monetary and fiscal measures the U.S. government has take
to stimulate the economy _ including tax refunds and lower interest
rates _ boost consumer spending and restore confidence in the business
and banking sector, the world economy would only slow to 2.8 percent
growth this year and 2.9 percent in 2009, it said.

The report, prepared by the U.N. Department of Economic and Social
Affairs, forecast that U.S. economic growth will decline from 2.2
percent in 2007 to -0.2 percent this year, with only slight recovery
in 2009 to 0.2 percent growth.

``At issue is how deep and long this contraction will be,'' the report
said. ``As the housing slump continues and the credit crisis deepens,
a broad array of ... indicators are already hinting at a recession.''

It cited a decline in U.S. employment, consumer confidence at its
lowest level in a decade, household spending growth slowing sharply,
and business equipment spending slowing alongside large inventories of
housing and a 30 percent decline in residential investment.

This strongly suggests ``that the implosion of housing activity will
not stabilize until 2009,'' the U.N. report said.

As for other developed countries, the U.N. forecast that Japan's
economic growth will decline from 2.1 percent in 2007 to 0.9 percent
in 2008, and that Western Europe's growth rate will drop from 2.6
percent last year to 1.1 percent this year.

Despite the slowdown in global economic growth in 2008, the U.N. said
global inflation is expected to accelerate this year to 3.7 percent.

The report said the recent sharp rise in commodity prices, and the
continued rise in oil prices are key factors spurring inflation along
with higher wages.

The growth of world trade also slowed from 7.2 percent in 2007 to 4.7
percent in early 2008, largely due to weak U.S. demand for imported
goods, it said.

The U.N. report said ``a number of developed countries with some
weight in the world economy like Japan, Germany, Switzerland, the
Netherlands, Norway and Canada, as well as the emerging-market
economies in East Asia and the main oil exporters have a decisive role
in engineering a more balanced and sustainable path of economic
growth.''

These countries ``have much to gain'' from deploying some of their
vast accumulated monetary reserves to improve infrastructure, social
services, and further diversify their domestic economies, it said.
 

 

Sail registers 25% increase in net

Steel Authority of India (Sail), the largest steel producer in india
has registered a 25 per cent increase in its net profit at Rs 2376.8
crore for the march quarter.

Net profit for the same quarter last year was Rs 1901.88 crore. Net
sales for the quarter was Rs 13,550.85 crore up nearly 36 per cent
from previous years 9983.78 crore.

Chambal Fertilisers, Torrent Power, Mercator Lines & Voltas Q4 results

Chambal Fertilisers & Chemicals on Thursday announced a consolidated
net profit of Rs 237.43 crore for the financial year ended March 2008,
a 69.36 per cent growth over the year-ago period.

The company had a net profit of Rs 140.19 crore in 2006-07. The total
income rose to Rs 3,285.04 crore in the period under review from Rs
3,005.59 crore in the previous year. The board of directors of the
company has declared a dividend of 18 per cent on shares of face value
of Rs 10 each.

The company announced a standalone net profit of Rs 203.8 crore for
the year ended March 2008, a 16.13 per cent growth over the year-ago
period. It had a net profit of Rs 175.49 crore last year.

The total income rose to Rs 2,802.3 crore during the period from Rs
2,638.61 crore in the previous year. Shares of Chambal Fertilisers
rose 1.67 per cent to Rs 72.95 on BSE today.

Torrent Power Q4 profit rises 14%

Torrent Power, the Gujarat-based power utility company, has posted a
net profit of Rs 50.4 crore for the quarter ended March 2008, a rise
of 13.7 per cent from that of the corresponding period last year.

The total revenue for the quarter grew 22.1 per cent to Rs 948.3 crore
in the same period, said the company. For the year ended March 2008,
the company reported a net profit of Rs 211.24 crore.The Torrent Power
stock rose 1.76 per cent to Rs 132.95 on BSE today.

Voltas FY08 profit up 12%

Voltas has posted a 12 per cent rise in net profit for the financial
year ended March 2008 to Rs 208 crore against Rs 186 crore in the
previous year.

The company's net sales for the year increased by 26 per cent to Rs
3,086 crore against Rs 2,451 crore during FY07. Its total order book
for the year was up by 101 per cent at Rs 4,877 crore.

The electro-mechanical projects segment grew by 21 per cent, while the
unitary cooling products division registered 37 per cent growth.
Voltas recorded a 41 per cent rise in air conditioner sales over the
previous year.

Mercator Lines FY08 net surges 175%

Mercator Lines has posted a net profit of Rs 370 crore for the
financial year 2007-08, showing a growth of 175 per cent compared with
Rs 135 crore in the year-ago period.

The rise was a result of firm freight rates in the dry carrier segment
and a buoyant demand from shipping. On a consolidated basis, the
company has achieved 30 per cent higher income from operations at Rs
1,455 crore during the financial year 2008 as against Rs 1,123 crore
during the previous year.

Reliance Infra dilutes 5% stake in pre-IPO placemen

American and European investors are reported to be buying the stake in
a pre-IPO placement, a deal that values the company at about Rs 50,000
crore

Anil Ambani group company Reliance Infratel is diluting 5% stake to a
clutch of American and European investors in a pre-IPO placement,
sources suggest.
When contacted, the company officials declined to comment. The latest
deal values the company at around Rs50,000 crore, while the earlier 5%
stake dilution, valued the company at about Rs28,000 crore.

Reliance Infratel had earlier privately placed 5% stake to a group of
institutional investors. Reliance Telecom Infrastructure sold the
stake for Rs1,400 crore to a host of investors including George Soros,
HSBC, Fortress Capital, New Silk, Galleon, DA Capital and GLG Capital.
Earlier this week, market regulator Securities and Exchange Board of
India cleared the initial public offering of this Anil Ambani group
firm.

Reliance Infratel, the telecom infrastructure division of Reliance
Communications, would offer 10% equity to the public valued at
Rs5,000-6,000 crore.
The issue proceeds are proposed to be utilised towards funding
development of passive infrastructure and general corporate purposes,
the company had earlier said. Reliance Infratel owns mobile towers and
other infrastructure

Tech Mahindra gets $700 m contract from BT

Telecommunications firm Tech Mahindra Ltd has bagged a $700-million
contract from BT Group to improve the latter's IT infrastructure, the
Economic Times newspaper reported on Friday.

"At any given time we are chasing big deals and long-term contracts,
but this is purely speculative," the report quoted C.P. Gurnani,
president for international operations, Tech Mahindra, as saying.

BT is Tech Mahindra's largest client, accounting for nearly 60 per
cent of its business, the newspaper said.

When contacted, a company spokesperson declined to comment on the
report.

BHEL records Rs 2,936 crore turnover from in-house R&D

Power equipment maker Bharat Heavy Electricals on Thursday said its in-
house research and development efforts have contributed Rs 2,936 crore
to the total turnover of the public sector company.

Nearly 14 per cent of the total turnover of Rs 21,608 crore has been
achieved through the products and systems developed by in-house
research and development (R&D) efforts, a company release said.

Bhel invested over Rs 464 crore on R&D efforts in 2007-08, 83 per cent
more than the previous year.

The company filed 175 patents and copyrights during the year. It has
developed a new variant of 500 MW steam turbine to improve efficiency
and save coal consumption by around 8,200 tons annually, the release
said.

The company recorded a net profit of Rs 2,815 crore in 2007-08, a 16.6
per cent rise from the previous year.

The company doubled its investment on augmentation of manufacturing
capacity and modernization of facilities to Rs 726 crore during
2007-08, against Rs 362 crore in 2006-07.

BHEL plans to invest Rs 4,200 crore in the 11th-Plan period. The
amount would be utilised towards enhancing production of thermal, gas,
hydro and nuclear sets, it said.

Besides, the company seeks to produce high rated nuclear sets, 765kV
transformers and other equipments

Govt plans to add 40,000 MW of hydro power capacity by 2022

To tide over energy shortfall, the government is planning a 40,000-MW
hydro power generation capacity during 12th (2012-17) and 13th Plan
(2017-22).

"We are making preparations for power projects in the 12th and 13th
plan, and are planning to add 40,000 MW capacity in the hydro sector,"
Central Electricity Authority (CEA) Chairman Rakesh Nath told
reporters here.

Project sites in states with hydro potential are being identified.

"We have identified the states of Jammu & Kashmir, Arunachal Pradesh,
Himachal Pradesh, Sikkim and Uttarakhand to set up these hydro power
projects," Minister of State for Power Jairam Ramesh said.

The Eleventh Five-Year Plan focuses primarily on adding power
generation capacity using coal and gas as fuel.

"We expect a growth of 9 per cent in power sector in the XIth Plan and
the need of the hour is to develop hydro power," Nath said.

Government was also looking for high efficiency and new technologies
for the sector, right now the efficiency of power plants is low, he
said.

"We need to focus on efficiency. High Plant Load Factor (PLF) is not
always high efficiency. We also need to put in place Renovation and
Modernisation (R&M) programmes for efficiency," he said.

To meet the shortfall in natural gas for power plants, the government
is working on an ambitious project to convert coal into gas in
underground mines. Coal gasification projects are on the anvil.

Besides, coal production is being doubled in the next five years from
the 450.50 million tonnes in 2007-08, to fuel requirement of thermal
plants

RCom gets $750 m loan from Chinese bank

Reliance Communications (RCom) has received a $750-million loan from
China Development Bank, for rolling out its GSM services in the
country. This would be amongst the biggest loan from China to an
Indian company.

When contacted, RCom officials confirmed the development.

10-year loan

They added that all regulatory approvals have been received for this.
The loan is for a 10-year period.

RCom has already given contracts to Alcatel Lucent for rolling out GSM
network across the country.

Alcatel tie-up

Reliance Communications and Alcatel-Lucent have joined hands to float
a joint venture company that would provide managed network services.

The join venture would kick-start with a contract close to $500
million and initially focus on providing managed services for RCom�s
wireless networks in 12 circles in North and western regions of the
country.

Lupin Ltd Q4 net profit at Rs 95.9 cr

Lupin Ltd beat street expectations for the year ended March riding on
exports, besides its domestic formulations and US brand businesses.
Net profit rose by an impressive 32.3% to Rs 408.25 crore as the
topline swelled 34.4% to Rs 2,706.4 crore.

The fiscal fourth quarter also saw a robust increase of 41% in topline
at Rs 750.4 crore. The newly acquired Kyowa and Novadigm contributed
Rs 82 crore in the quarter, albeit with lower margins.

Margins for the quarter were up YoY, but down sequentially at 16%.
Increase in the topline, improved margins and higher other incomes
drove the adjusted profit after tax to Rs 95.9 crore for Q4, marking a
robust growth of 349% YoY.

The strategic acquisition of Kyowa positions Lupin in Japan, the
second-largest pharmaceuticals market. Kyowa, with 10 product
approvals in Japan, has a potential $2.6 billion market, whereas
Novadigm's acquisition helps its CRAMS business in India. API revenues
showed a growth of 8% in developed countries but there was a 9%
decline in India.

Exports grew by a whopping 52% to Rs 1529.2 crore during the year. The
US brand business revenues grew by over 50%. Suprax with 50% growth is
a $37 million product and the launch of double-strength syrup and 400
mg tablet extends its franchise.

In Cefdinir, Lupin has a market share of 15%. With a basket of four
market leaders out of 15 products in the US, Lupin generates revenues
to the tune of $160 million. By prescriptions, Lupin is the third-
fastest growing generic pharma company and has also filed 11 ANDA
approvals in the US adding to the 30 ANDA approvals already pending.
Lupin targets $1 billion sales for FY09.

It is also the first to launch Cefpodoxime Proexitil in France,
thereby garnering a 75% market share. A few more additions are
expected in FY09. In Europe and Australia, it has filed seven and two
ANDAs, respectively. The Australian subsidiary has started
contributing to the revenues.

Looking at the business opportunities available in both domestic and
international markets and armed with the desired products, Lupin looks
promising. At Rs 644.40, the stock trades 12.9 times its FY08 earnings

India offers huge investment for Australian and New Zealand companies

India offers huge investment potential for Australian and New Zealand
companies in mining, agriculture, IT, tourism and aviation, says a
study to be released by industry body FICCI during Commerce Minister
Kamal Nath's visit to these two countries next week.

The study said huge opportunities exist for Australian companies to
invest in sectors like tourism, infrastructure, petrochemicals, mining
technology and engineering in India.

"With over 550 million people below the age of 25 years, India offers
a sharp contrast to the labour constraint already being faced by
Australia. India has an attractive pool of skilled labour," the FICCI-
PwC study said.

FICCI is taking a 50-member strong business delegation to Australia
and New Zealand, coinciding with the visit of Commerce and Industry
Minister Kamal Nath from May 19-23.

The FICCI-PricewaterhouseCoopers (PwC) study on India-Australia and
India-New Zealand Trade and Investment Flows would be released at the
'Destination India' meeting in Sydney and Melbourne and at Auckland at
the Joint Business Council (JBC) meeting.

The study lists out mining as a key area for Australian companies, who
can use their clean coal and mining technologies in tapping the
potential in states like Chhattisgarh, Jharkhand and Orissa, the study
said.

It listed auto-components, bio-technology, agriculture, education and
the financial services sector as other areas for investment, it
added.

"India is now in the process of upgrading its farm sector and is
seeking massive investments in processing capacities and cold chains,"
it said adding that with prices for agri commodities rising globally,
it becomes imperative or India and Australia to come together in this
sector.

Finance ministry rejects NTPC`s FPO

In a setback to NTPC, India's largest power producer, the government
has turned down the public sector company's proposal to raise nearly
Rs 6,000 crore through a follow-on public offering (FPO).


"There was a proposal by NTPC to approach the capital market but the
finance ministry rejected it last week," Minister of State for Power
Jairam Ramesh told reporters on the sidelines of a conference on
energy.

The power ministry had approached the department of disinvestment in
August 2007 for approval for NTPC's FPO, which could fetch the company
nearly Rs 6,000 crore to part-finance its expansion programme.

After the FPO, the government's shareholding in NTPC would have come
down to 84.75 per cent from the present level of 89.5 per cent.

The power company has set an ambitious target to double its capacity
to more than 50,000 Mw by 2012 from 27,904 Mw currently, for which it
plans an investment of Rs 88,000 crore.

The company also plans to venture into nuclear power manufacturing and
power generation in the hydro sector.

In 2004, NTPC had raised Rs 5,386 crore through an initial public
offering (IPO) by way of fresh capital and also diluting the
government's stake.

Meanwhile, the company is now looking to borrow over Rs 105,000 crore
from domestic and overseas markets over the next four or five years to
meet its ambitious target of adding 22,430 Mw by 2012.

"Of the Rs 160,732 crore fund requirement during the 11th Plan, Rs
55,224 crore will come from internal resources and the rest will be
borrowed," a company official said.

Domestic borrowings are being pegged at Rs 45,199 crore while External
Commercial Borrowings (ECBs) are being tentatively pegged at Rs 60,309
crore.

NTPC owns 15 coal-based and seven gas/liquid fuel plants with a total
capacity of 27,350 Mw. It also has four joint venture plants with a
capacity of 2044 Mw.

ICAR seeks fund for boosting production of pulses, oilseeds

Indian Council for Agricultural Research (ICAR) on Thursday said that
Rs. 347 crore has been sought from the Union government for promoting
the cultivation of oilseeds and pulses in the country.


"In the 11th five year plan, special efforts will be made to bring
more area under oilseed and pulses. For this purpose, Rs 210 crore to
promote pulses cultivation and Rs 137 crore to promote oilseeds
cultivation has been demanded from the Government of India," ICAR,
Assistant Director General (Oilseeds and Pulses) V.P.Patil said at the
Annual Group Meeting of All India Coordinated Research Project on
Sunflower and Castor in Ludhiana.

He said although oilseed production in the country had doubled ever
since the pre-green revolution era, the production level was far lower
than the potential.



"There is a big gap in productivity of oilseed crop at research fields
and farmers' field. We must identify the areas where we are lacking",
he said.

A lot needs to be invested in the extension agencies to transfer
knowledge to farmers' field, the ICAR official said.

Punjab Agricultural University Vice-Chancellor Manjit Singh Kang said,
"because of their nutritional and economic factors, oilseed crops are
set to regain their important role in nutritional food security.
Special attention is needed to improve the production and protection
technologies of these crops".


Highlighting the importance of oilseeds, Kang said India has emerged
as the largest importer of edible oil in the world. "Almost 50 percent
of domestic demand is met through imports, which is of great concern
at a time when international prices are increasing", he pointed out.

He stressed that there was a need to develop spring season short-
duration hybrid varieties to fit sunflower in the existing cropping
pattern involving wheat, paddy, potato, cotton, pearl millet and
maize.

"This will give an impetus to sunflower cultivation specially in
northern India", Kang said.

At the same time potential of the existing technologies need to be
improved to increase the sunflower yield," he added.

Oil mktg cos' losses for FY'08 at Rs 16,700 cr: Behuria

Oil marketing companies would have to bear losses to the tune of Rs
16,700 crore, even after the Centre issues oil bonds to cover 50
percent of their under- recoveries in 2007-08, Indian Oil Corp
Chairman S Behuria said on Thursday.


Although losses of state-run oil companies' on account of selling fuel
below cost price was to the tune of Rs 78,000 crore, the Finance
Ministry has pegged the amount at just Rs 70,000 crore for the purpose
of compensation, he told reporters in Chennai.

On a request from the Petroleum Ministry earlier this week, the
Finance Ministry is understood to have agreed to issue oil bonds worth
Rs 35,300 crore for 2007-08 fiscal, of which nearly Rs 23,000 crore
worth bonds have been issued for the period April-December 2007.



The Centre had also conveyed that upstream oil companies like the ONGC
and GAIL would be giving Rs 23,000 crore to the oil companies, he
said, adding, the rest had to be borne by the oil companies.



IOC alone would have to bear Rs 9,600 crore losses for the last
fiscal, he said.



Painting a gloomy picture for the oil industry, he said he had no
hopes that the crude price would come down at least for the present.
This would have a cascading effect on the oil companies in India as
the 'under recovery' would mount to Rs 1.9 lakh crores this fiscal, he
said.



Releasing the results of the Chennai Petroleum Corporation an IOC
group company, he said it had reported a profit of Rs.1,123 crore
against Rs.565 crore of the previous fiscal.

Stock exchange membership not inheritable: SC

The Supreme Court on Thursday held that the membership of a stock
exchange can not be inheritable as it is a privilege and not a matter
of right.


A bench comprising Justices Tarun Chatterjee and Dalveer Bhandari
while disposing of a batch of appeals said, "It is abundantly clear
that no provision of succession to registration is permissible...
Membership of a stock exchange is a privilege and not a matter of
right and thus this cannot be claimed as inheritable."

The court accepted the market regulator's contentions that there was
no provision in the SEBI Act and its rules and regulations which
recognised the registration of stock-brokers by inheritance and
transmission for the purpose of granting fee continuity benefit.

While upholding a Securities Appellate Tribunal order dated 12th May
2006, the court said in a batch of petitions filed against SEBI that
appellants including Nikhil K Vakharia, son of Late Shri Kanchanlal K
Vakharia, in order to operate in the stock exchange had to obtain a
fresh registration from SEBI.

For the first five years, the appellant would be required to pay the
quantum of fee linked to the turnover and thereafter at the flat rate
of Rs 5,000 in order to keep the registration in force, the bench
said.



According to SEBI, the appellant who is son of Late Kanchanlal K
Vakharia on transmission can be registered only as a new stock broker
with SEBI in accordance with the Act, Regulations and the SEBI (Stock-
Brokers and Sub-Brokers) Rules, 1992 and subject to payment of
registration fee for a new stock-broker as per the schedule fixed in
the Regulations.



It may be noted that under the SEBI (Stock Brokers and Sub-Brokers)
Regulations, 1992, a fee is required to be paid by the stock brokers.



Broadly, the fee was structured in two distinct phases: In the first 5
years of operation of a broker, the quantum of the fee is linked to
the turnover of the stock broker. Greater the turnover, higher the
fee.



The second phase comprises blocks of 5 years from the sixth financial
year after initial registration. During each block period of 5 years,
the stock broker is required to pay a flat rate of Rs 5,000 in order
to keep the registration in force. The flat fee had no link to the
turnover.



In the batch of these appeals, the appellants had claimed that on
account of transmission, since the business and trade continues in the
same name or entity and the stock exchange permitted continuation of
the same membership under the same number and clearing code, they
should also be given the fee continuity benefit under the same
registration of the earlier stockbroker and and should not be made to
pay the turnover basis fee for the remainder of initial period of five
years.



The present case involved a situation where the stock broking firm was
a partnership firm carrying on business in the name Kanchanlal & Sons.
However, due to ill health, Late Kanchanlal K Vakharia had decided to
nominate Nikhil in his place as a member of Bombay Stock Exchange.



Nikhil in his appeal had claimed that he was a partner of Kanchanlal &
Sons and, therefore, SEBI should give the benefit of fee continuity as
for the first 5 years they have already been charged from the
partnership on a turnover basis, therefore, they must now charge on a
flat rate of Rs 5000 per annum for the registration.



SEBI had contended that in order to become a member of the stock
exchange, the person was required to be qualified as per rule 8 of the
Securities Contracts (Regulations) Rules, 1957.



"This right is also not inheritable, since every person on
transmission may not even be qualified to become a member of a
particular stock exchange," the market regulator stated, adding BSE
does not enroll partnership firm as members.



As such, Late Kanchanlal K Vakharia alone was the member of the stock
exchange and he alone was thus entitled to deal in securities in the
Bombay Stock Exchange.

RBI relaxes lending norms for housing loans

Reserve Bank on Thursday relaxed the risk provisioning norm for
housing loan up to Rs 30 lakh, a move that would make it easier for
banks to provide loans for purchase of residential properties.

The central bank on Thursday issued notification in pursuance of the
annual credit policy announcement made by the Reserve bank Governor Y
V Reddy on 29th April.

"It has been decided to enhance the limit of Rs 20 lakh to Rs 30 lakh
in respect of bank loans for housing in terms of applicability of risk
weights for capital adequacy purposes. Accordingly, such loans will
carry a risk weight of 50 per cent," Reddy had said.

The move would provide the bank additional capital for lending more to
housing sector.

However, it may not result in immediate softening of interest rate for
the housing sector, Oriental Bank of Commerce Executive Director Allen
C A Pereira told a news agency.

The RBI has modified the provisioning limit for housing loan to take
care of the growing property rates mainly in the urban centers, said.

As per the Basel II norms, banks are required to keep 9 percent of the
specified portion of the loan amount as capital.

For up to Rs 30 lakh housing loan the risk provisioning norm would
apply for the 50 percent of the loan value.

Earlier the specified amount was 75 per cent of the loan value between
Rs 20-30 lakh.

For loans exceeding Rs 30 lakh for purchase of residential property,
the banks would have to make a risk provision on 75 percent of the
loan amount.

US investors see Asia as the region to be in

WASHINGTON: Close to half of affluent US investors see the stock
market as a buy, with energy as the industry and Asia as the region to
be in. According to a poll of investors, 44% of those with household
incomes of $1,00,000 or more viewed it as a good time to buy stocks,
versus 15% who said it isn't. The benchmark Standard & Poor's 500
index has declined 10% from its record high in October.

"Any time prices come down, that's typically been the time to buy,"
said Phyllis Hamm, 59, a survey participant who works at a non-profit
group in Raleigh, North Carolina. The poll results signal some
Americans may be ready to shift part of the $3.5 trillion parked in
money market funds into equities.

The confidence also indicates they anticipate limited spillover among
stocks from the financial crisis that has led to $335 billion of
losses and writedowns in that industry.

"There's plenty of ammunition out there for an equity rally later this
year," said Joseph Quinlan, chief market strategist in New York for
the investment management unit of Bank of America, which oversees $643
billion in client assets.

Forty percent of respondents singled out energy as the best place to
put their money over the next 12 months, followed by health care and
drugs, at 30%, technology, at 22%, and financial services, with 15%.
Investors could choose more than one industry.

Only 4% of investors surveyed last year said financial services was
the best place to invest. Health care came in first in 2007, followed
by energy and technology. "If you're a contrarian, financial services
might be the sector with the opportunities," said Paul Engle, a 57-
year-old consultant in Clarksville, Maryland. "I don't believe large
financial institutions are in any risk of going out of business."

Financial stocks have been hammered by the credit crunch that was
sparked by rising defaults on subprime mortgages. The S&P 500
financial index has lost about 30% in the past year, to 351.26.

Asia came out on top when well-off investors were asked which region
offers the best returns over the next 12 months — the same result as
in last year's poll. The US slipped from second to third, slightly
lagging behind emerging markets.

"International stocks may be more reliable investments than those
here, as reflected by the weakness of the dollar," said Lesia
Dropulic, a 45-year-old doctor in Ellicott City, Maryland.

Asian currencies have soared against the dollar in recent years,
fuelled by rising trade surpluses and investments from abroad. China's
yuan has advanced 18% in the past three years, Singapore's dollar is
up 21% and the Thai baht has gained 23%. The dollar has slumped 18%
versus the euro over that period.

The poll of 2,208 adults nationwide included 607 investors with
household incomes of at least $100,000 and was conducted May 1 to May
8. The group has a margin of sampling error of plus or minus 4
percentage points.

While investors said it's a good time to buy stocks, the survey also
indicated that they have become more guarded about allocating their
own funds. 29% of those surveyed described themselves as aggressive,
pro-growth investors, down from 36% last year.

Given a hypothetical $1 million to invest, the investors chose mutual
funds as the best place to put their money, replacing real estate,
which held the top spot in last year's poll. Stocks came in third both
years.
"You need to be diversified," said Scotty Reiss, a 44-year-old, stay-
at-home mother in Cos Cob, Connecticut. "You can't put all your eggs
in one basket."

While 96% of affluent investors described themselves as financially
secure, others who took part in the poll were not as confident.
Overall, 57% said they were secure — down from 68% last year and the
lowest level since 1992.
The well-off, though, scaled back their financial expectations. Nearly
half anticipated that their investments will earn less this year than
last. That compares with 28% in the 2007 poll.

One-third expected the value of their homes to stagnate or fall over
the next three years. That's also a turnaround from last year, when
only 4% were so pessimistic.

"There's a lot of sobriety out there," says Robert Stovall, managing
director and global strategist for Wood Asset Management, which runs
more than $1 billion in investments for its clients. "It's probably a
pretty good time to buy shares."

PowerYourTrade Trading Calls

Trading Calls for 14 May 2008

Rajat K Bose Sell Chambal Fertilisers and Chemicals with a stop loss above Rs 70.20 for targets of Rs 64.50 and Rs 62.50. This is day trading recommendation Sell Chambal Fertilisers and Chemicals with a stop loss above Rs 70.20 for targets of Rs 64.50 and Rs 62.50. This is day trading recommendation. Note: Either on the long side or on the short side if at any moment a counter is not moving beyond an initial or interim target to the final target book profits. Once initial target is crossed, you can use that as your trailing stop-loss level. Caveat: The same reco has been given to our clients. Notes: · All prices relate to the NSE, unless otherwise mentioned. · Calls are based on the previous trading day's price activity. · The call is valid for the next trading session only unless otherwise mentioned. · Stop-loss levels are given so that there is a level below/above, which the market will tell us that the call has gone wrong. Stop-loss is an essential risk control mechanism; it should always be there. · Trading involves considerable risk. Trade at your own risk to the extent you are comfortable. The analyst shall not be responsible for any losses incurred for acting on these recommendations. Disclosure: The analyst and his family do not have any trades in the securities recommended above at the time of giving this recommendation. His newsletter clients have been recommended the same along with other picks. Traders are requested to adhere to the stop losses very strictly; they are given to be implemented, not ignored. Do not chase a security and take a position where you would be uncomfortable with the stop-loss level. Take a position only when you feel that the risk-reward ratio looks comfortable and favourable for the trade. Notes: All prices relate to the NSE, unless otherwise mentioned. Calls are based on the previous trading day's price activity. The call is valid for the next trading session only unless otherwise mentioned. Stop-loss levels are given so that there is a level below/above, which the market will tell us that the call has gone wrong. Stop-loss is an essential risk control mechanism; it should always be there. Trading involves considerable risk. Trade at your own risk to the extent you are comfortable. The analyst shall not be responsible for any losses incurred for acting on these recommendations. Disclosure:The analyst and his family do not have any trades in the securities recommended above at the time of giving this recommendation. His newsletter clients have been recommended the same along with other picks. Traders are requested to adhere to the stop losses very strictly; they are given to be implemented, not ignored. Do not chase a security and take a position where you would be uncomfortable with the stop-loss level. Take a position only when you feel that the risk-reward ratio looks comfortable and favourable for the trade.

		Mathew Easow Buy Radha Madhav Corporation with a stop loss of Rs 66.35 for a short-term target of 121 Buy Radha Madhav Corporation with a stop loss of Rs 66.35 for a short-term target of 121. Disclaimer: - At the time of writing this article, I, my family members and my group companies do not have any position RADHA MADHAV CORPORATION LTD. This stock has been recommended to our clients and they may be holding long or short positions in this stock. Mathew Easow and matheweasow.com gives an unbiased and competent picture of trading opportunities and it does that to the best of its abilities. The information contained herein is not a complete analysis of every material fact representing the company, industry or security. The views expressed may change. However, prices can move up as well as down due to a number of factors, all of which are impossible for anyone to foresee. THEREFORE, Mathew Easow and matheweasow.com cannot accept any responsibility (or liability) for the accuracy of the above contents and also any investment decision or trading decision taken by readers and clients on the basis of information contained herein. Short Term Target Means - Approximately 3 -4 weeks. If the target is not met within 3-4 weeks then please exit the positions. Please follow stop losses very strictly and do not take positions where one is uncomfortable with the stop loss level. Above all Buy or Sell the stock only when the risk - reward ratio vis-a-vis the stop loss is favourable for taking a position. Individual traders /investors should book profit depending on their risk bearing capacity and need not wait for the targets.