18.11.2006

• RBI restricts funds flows from the banking system to the primary markets
• At present individuals can borrow up to Rs. 10 lks each from up to 5 banks and invest up to Rs. 50 lk in an IPO (Initial Public Offer) by pledging their shares or bonds, mutual fund units etc.
• RBI issued guidelines now which bar an individual from raising more than Rs. 10 lk from the banking system for investing in IPOs.
• The new guidelines also say that investors cannot borrow more than Rs. 20 lk on the strength of stocks, bonds, MF units for playing the market.
• RBI is also proposing to cap the aggregate exposure of a bank to capital markets at 40% of its net worth of the last fiscal.
• Indian billionaires
• There are 36 of them at present in dollar terms.
• LN Mittal ($25 bn), Mukesh Ambani, Anil Ambani and Azim Premji top the list.
• The combined net worth of these 36 people is $166 bn which is about one-fifth of India’s national income.
• Indian and Chinese millionaires
• China has about 300,000 dollar millionaires. In contrast India has about 83,500 of them.
• Rajinder Sachar Committee submitted its report to the Government
• Yesterday (17.11.06), the committee which looked into the issues relating to the backwardness of the Muslims in India submitted its report.
• It suggested that:
• Muslims be given more opportunities for higher participation in governance
• Madrasas be brought into the mainstream to facilitate their alignment with other educational institutions and
• Muslims be given more access to bank credit.
• Interesting fact about Champagne
• Champagne is neither the name of a product nor is it a category of wines.
• Champagne is the name of the region in northern France where a combination of grapes, usually chardonnay, pinot noir and pinot meunier are blended.
• Chartered Accountants in India are headed for more training to take on MBAs
• The ICAI (Institute of Chartered Accountants of India) is setting up 11 centres of excellence across the country at an investment of Rs. 100 cr. to train the CAs in management tricks including communication and presentation skills.
• There are about 1,32,000 CAs in the country. 50% of them are employed in the corporate world while the rest are practicing in India and abroad.
• Indo-Iran LNG deal
• India and Iran signed an agreement two years ago for supply of 5 mln tonnes of LNG at a price of $2.90 per mBtu (million British thermal units) for a period of 25 years beginning 2009. The original deal was for importing 7.5 mln tonnes per annum. Of this the price was negotiated only for 5 mln tonnes.
• But Iran wanted to renegotiate the deal saying that the price contracted is very low.
• Thereupon India offered to better the price, but not what Iran wanted. Iran wants a price of $5.10 per mBtu.
• Obituary: Mr. Milton Friedman
• Credit as having shaped much of the 20^th century economic thinking along with John Maynard Keynes, he passed away on 15.11.06 in the US.
• He was responsible for challenging the Keynesian worldview of omnipotent governments that could steer and stimulate economic growth.
• His philosophy came to be known as monetarism and became the abiding principle of the Chicago School of Monetary Economics where he taught for many years.
• Interesting calculations about child labour
• In a very interesting article G.S. Vijay Kumar shows that if only Rs. 500 is spent for child towards cost of education and an equal amount given to the parents of the child for foregoing the loss of income from his labour, for educating all the 12 mln child workers in India, the amount needed would be approximately Rs. 15,000 cr.
• This he feels is not a daunting figure to shy away from taking up the challenge of educating every child in India. He feels that governments are better off doing such a thing than splurging on schemes like free distribution of TVs etc., as is being done in Tamilnadu.
• Child labour is intricately linked with poverty and unless conditions improve at the domestic front, child labour will not completely vanish – whatever the law may say. Remember we passed a law recently banning child labour.
• The ban on child labour should therefore be interwoven with poverty alleviation programmes.
• Progress in transgenic crops made by University of Agricultural Sciences, Bangalore
• Isolating genes from microorganisms for use in transgenic seeds. Reportedly this will help in reducing or eliminating pest attacks.
• Work on genetically modified groundnut as an effective cure for diabetes.
• Revision in coal royalties
• It is the union government which lays down the policy with regard to payment of royalties to state governments from various mines.
• The royalties on coal and lignite mining are kept at specific rates at present.
• There is a proposal for moving to a combination of specific and ad-valorem levies to guard against distorting fuel pricing while satisfying states’ demand for high revenues.
• First mobile novel
• World’s first novel on mobile phones was published in Japan. It was titled “Deep Love” by Yoshi.
• India’s first such mobile novel is “Neelakannukal” by Malayalam writer PR Harikumar. The book was given away free for about 600 users.
• India has 96 mln mobile subscribers.