Indian Current Affairs: 21.12.2007

SEBI formally laid down the framework for short-selling and the SLB (Securities Lending and Borrowing) scheme for all market participants.
With this any non-institutional investor (that means small investors, day traders and high net worth individuals) can now short sell securities. FIIs/MFs will be allowed to short-sell once SEBI specifies the date.
However naked short-sales won’t be allowed. Naked short-sales are sales that are not backed by delivery.

The Delhi High Court has ordered a CBI probe into the Rs. 16,000 crore deal as there were allegations of kickbacks in the deal.

It refers to Christmas, the period extending from Dec. 24 to Jan. 6. There is an interesting background.
Yule is a winter festival associated with the winter solstice celebrated in northern Europe since ancient times. Its Christianized form is "Christmas", which is essentially the symbology and traditions of Yule with the Christian story of the birth of Jesus of Nazareth superimposed upon it. Yule traditions include decorating a fir tree, burning a Yule log, the hanging of mistletoe and holly, giving gifts, and general celebration and merriment.

The government’s attempt at selling 26% stake in IFCI to a strategic investor ended up as a farce.
There was confusion over whether the strategic investor would get management control. The investor was getting only two out of eight board seats and had no right to appoint the CEO. Usually the world over, a strategic investor gets management control.

I think this is one measure which should take us to a different league altogether.
The idea is that all relevant data and accumulated intelligence on a particular disease, would be hosted online. We are starting with TB. Researchers and experts then would be encouraged to come forward and solve specific problems, which would largely be chemical in nature, essentially figuring out mathematical algorithms to make protein to bind to the target. Promising solutions would then be assigned to research organizations for clinical testing and validation. The multi-stage problem solving approach should logically yield a cure.
The consequences of this would be:

It is nothing short of taking drug discovery away from the exclusive preserve of a few MNCs with deep pockets.
Though primarily directed at promising markets, typically diseases common in rich countries, some of the third world ones such as TB are also included.
The drugs developed through the process would not be IPR- protected and would, therefore, become a low-cost generic from day one.

You know, this selection has become politically sensitive in the US?
On its part the TIME magazine said it is not an honour, not an endorsement or a popularity contest. It is a clear-eyed recognition of the world as it is and of the most powerful individuals shaping the world – for better or for worse.

December 19 is observed as the South-South Cooperation Day.
The essence of this cooperation is that the wealth of knowledge and capacity in developing countries, when systematically mobilized and shared, can be a powerful tool for their effective participation in the global economy.
How is an industrial economy better than a commodity exporting economy?

Commodity export (or unprocessed agriculture) confers disproportionate profit on landowners and traders, with practically no spin-off benefits – in fact, sometimes with the negative effect of starving domestic industry of raw materials. One the other hand, industrialization makes profit for factory owners, no doubt, but it also gives rise to a host of upstream and downstream ancillaries that provide year-round employment, availability of consumer goods to raise the standard of living, and all-round empowerment.

Functional literacy plays an important role in the making of an industrial economy.

Functional literacy is not just those who are literate, but rather the percentage of literates equipped with relevant production skills and production-related service capabilities, actively involved in design, processing, manufacturing and marketing.

Now that the tax revenues are very buoyant, is it time to reduce the tax rates in India?

The idea being floated about to reduce the rates from 30% to 26% needs to be viewed with some circumspection. This is because a 4% to 5% reduction in the rate could translate into a 13% reduction in corporate tax collections.
A pure and simple reduction in rates with no accompanying rationalization would amount to a lost opportunity.
Will the reduction induce a Laser-curve effect? What this means is, would it result in higher collections through better compliance?
Whether a reduction in tax rates is the best way to use the present expanded collections? Perhaps it could be better used to improve our infrastructure or something else. Need it be used for just give-aways?

What is the ‘zeroing’ principle adopted by the US in dumping cases, that is raising the ire of the rest of the world?

What the US does while calculating the average dumping margins is ignore (thus zeroing) the negative dumping margins. Dumping margin is the difference between the normal price of a product in the market of the exporting country and the export price. When the average dumping margin on a number of similar products is calculated, if the negative margins (where the local market price is more than the export price) are ignored (zeroed) this results in an inflation of the anti-dumping duty.
That’s why the exporters to the US are up in arms against this method of calculation of the anti-dumping duties.

While writing today’s notes, I was listening to “Move ya body” song from Johny Gaddar. Felt like giving a link of the video. What a remarkable lady? From the days of “Glassy” to this one. As good as Nina Sky for me. Here it goes…

Indian Current Affairs