16.10.2006

FIIs, PNs may come under security lens
PNs are issued by FIIs to their overseas clients who may not be eligible to invest directly in India. According to current norms, the names of end invedstors need not be disclosed. This practice allows unverified funds to enter the stock market and commodity trading, according to National Security Council.

It has been found that nearly 88% of the FII inflows into India came through the PN route in 2005-06.

Govt. leans towards 26% cap for foreigners in private banks
Basel II norms come into force from April 2007 onwards.

The present policy for ownership and governance in private sector banks, laid down by RBI says that no single entity or group of related entities would be allowed to hold shares or exercise control, directly or indirectly, in any private sector bank in excess of 10% of its paid up capital.

The government may break new ground in financial sector reforms by letting foreign investors in private sector banks to get voting rights up to 26%.

Carbon emission trading in India
The value of accumulated stock of carbon emission reduction (CER) units in India is estimated at approximately Rs. 4,500 cr. Only China and Brazil are ahead of India in this regard.

Each time a company, through its actions like using lesser or cleaner fuel, reduces the emission of one tonne of carbon dioxide, it accumulates a CER. It can then sell this CER for a price – 12 euros at the present (translates to about Rs. 720 per CER)– to another company in another part of the world that might want to reduce the emissions but is unable to do so for some reason.

Islamic banking
As a genre of financial services Islamic banking shuns the very idea of interest rates, and rests on profit-sharing principles. Based on the Sharia law, it abhors the business of making money out of money, and upholds the belief that wealth is generated through actual trade and investment.

Unanimous voting for financial, weapons sanction on North Korea
The resolution adopted by UN Security Council allows nations to stop cargo going to and from North Korea to check for weapons of mass destruction or related supplies. The resolution bars trade with North Korea in dangerous weapons. It also imposes bans on heavy conventional weapons and luxury goods and asks nations to freeze funds connected with North Korea’s non-conventional arms programs.

The six nation talks involving the two Koreas, the US, China, Russia and Japan – were boycotted by Pyongyong 13 months ago to protest against the financial measures imposed by the US for alleged counterfeiting and money laundering.

Mercedes Benz sales in India
About 1800 mercs are sold in India last year and this year they are expected to touch 2400 units.

In China the Merc sales are expected to touch about 18,000 to 20,000 this year.

The domestic market for fat fighters is pegged at Rs. 100 cr.
Diabetes and heart disease could impose a burden of about $250 bn on India and about $550 bn on China in the next decade.

Currently only 34 hospitals across the country are being promoted as standard hospitals for medical tourism for foreigners.

The world oil demand is pegged at 84.6 mln barrels per day for 2006 by the IEA – International Energy Agency.

Liquidity in the financial system can be partially measured from surplus cash that banks park with the RBI. This amount has crossed Rs. 20,000 cr recently from about Rs. 3000 to 4000 cr in mid September.

Bribery in the world
The World Bank Institute estimates that annual world wide bribery is $1 trillion. The US department of commerce has estimated that corruption in arms trade accounts for approximately 50% of all corruption transactions globally, despite the fact that the value of arms trade annually does not exceed 1% of global trade.

The global organic food market is estimated to be $9 bn in size and is growing at 9%.

Industrial and Commercial Bank of China is coming out with an IPO of $19 bn, the largest IPO in the world.

Gambling market
US gamblers make up about one third of the world’s estimated 12 mln online betters. Annual gambling revenues in US are about $5.7 bn in 2003.

All told Americans wager $637 bn in state-sanctioned casinos and lotteries per annum.

Micro credit sector in India
There are more than 22 lk households under the Self Help Group (SHG) model in the country at present. An additional 3.85 lk will be added by the end of this fiscal.

The total amount outstanding with these groups is nearly $1 bn while another $1.4 bn is expected to be made available by the voluntary sector to these groups by the end of 2006-07.

The RBI is in the process of framing guidelines to allow micro-credit institutions to tie up with banks to offer savings deposits.

Blue ocean strategy
It is based on a book by professors W. Chan Kim and Renee Mauborgne. It is a theory that talks about creating uncontested market space and making competition irrelevant, rather than competing within the confines of an overcrowded industry and trying to steal customers from rivals.

Yellow fever is caused by Aedes Aegypti, the same mosquito which causes chikungunya and dengue fever. Monkeys act as reservoirs of yellow fever virus.