27.04.2008

• What are the reasons for the lack of interest in Islamic funds in India?
• Simply put: business compulsions and opposition from political quarters.
• India has just one Islamic fund in the offing viz., Taurus Parsoli Ethical Fund. Though it had its application with SEBI pending for the last six months, sources say it is likely to withdraw its application. The fund is a child of Taurus AMC and Mumbai-based Parsoli Corporation to raise money and ensure that the portfolio remains Sharia complaint. It aimed at raising about Rs. 500 crore.
• The idea did not find favour with the board members. Not many companies listed on the bourses are comfortable with the idea of being part of the Islamic fund. They fear that their image will take a beating among general investors. An Islamic fund is seen as mixing business with religion – an uncomfortable idea.
• About 58% of the 4,887 companies listed on BSE are Sharia compliant.
• You might remember that Sharia forbids Muslims from receiving interest payments and from investing in companies involved in the production or sale of pork, alcohol, tobacco, pornography, gambling and non-Islamic structured finance or life insurance.
• The list of Sharia compliant securities is updated twice a year and released on the last Friday of May and November.
• Is it time to say good-bye to BRTs?
• As part of the urban renewal efforts, there are about 13 Bus Rapid Transport corridors planned in the country in 8 cities -- Ahmedabad, Bhopal, Indore, Jaipur, Pune, Rajkot, Vizag & Vijayawada.
• These were planned perhaps by looking at the success of such corridors in Columbia and Chile and the fact that many countries in the world are planning such corridors.
• But the Indian experience, in Delhi and Pune proved to be very embarrassing and sticky for the government. Reasons?
• Lack of a sound operational plan.
• Under-estimation of future growth.
• Lack of a holistic urban transport policy.
• A typical BRT system is stated to cost between $1 mn and $35 mn for every 1.6 km while a light rail system costs about $13 to 336 mn for the same distance.
• Any new system is bound to cause upheavals. What is needed as better execution and management of public expectations.
• But with the kind of costs that we are talking of, would it not make sense to (perhaps simultaneously) encourage people to work from homes or provide alternative ways for working? I would say, why not allow sales people to avoid office altogether? They can be asked to file all their reports over the web or electronically. Why not encourage all services industry people to use the web to do their work? I agree that such tectonic shifts call for huge investments and a change of mindset; but we do have examples of such shift happening right in our own backyard. And the investment requirement for BRTs and MRTs is not low either! Back in the late 1990s when the then government of AP was planning to make Hyderabad an IT hub the nay-sayers outnumbered the believers. But look at what happened. A revolution has happened even before it could be termed as a revolution. Such a thing is possible even in our urban transport. Radically different work ethics and cultures can be imagined and established to overcome this problem. One such experiment is ‘walk to work’ wherein you can establish urban clusters for workers and their companies, totally eliminating the need for commuting.
• Why is India helping Sri Lanka with a $100 mn soft loan to buy arms?
• India is reportedly going out of the way to help Sri Lanka procure arms by providing a soft loan of $100 mn at 2% interest rate. Though India’s external assistance regime doesn’t classify Sri Lanka as a least developed country and hence ineligible for soft loans, it is reportedly doing so with a view to keep other countries from financing it and making an entry into the sub-continent.
• Remember our noting about vulture funds?
• Vulture funds or investors are those that do bottom-fishing in times of distress. They buy beaten-down corporate bonds in bankruptcy proceedings.
• Two of the globally well-known successful vulture fund managers or investors: Wilbur Ross and Phil Falcone.
• Tragedy of the Commons
• I introduced this phrase to you a few days ago in our notes. Today there appeared a very good article explaining the concept very well. Worth a read. Don’t miss it. It is here.
• How much do you know about martial arts of India? Can you name a couple of them?
• Cheibi Gad-Ga: This is from Manipur. In this form of duel, the fighting gear consists of a sword and a shield, now tailored to a stick encased in soft leather and a shield made of leather. Contestants use a stick (known as ‘Cheibi’) sheathed in leather and about two and a half feet long in combination with a leather shield (with three foot diameter) to represent an actual sword and shield.
• Kalari payattu: This is from Kerala. Kalari in Malayalam means a particular kind of gymnasium, where the martial art known as Kalari Payattu, is practiced. Basically, it helps in attaining immense flexibility. At the turn of the sixth century A.D., martial arts spread from Southern India to China by Daruma Bodhidarma-an Indian Buddhist monk and Kalaripayattu master. From China, martial arts have spread to countries such as, Korea and Japan. The art reached its peak in the 16th century, in the days of Thacholi Othenan-a celebrated chieftain of north Malabar.
• Silambam: Tamil Nadu is thought to be the origin of contemporary and scientific staff fencing, popularly known in Tamil as Silambam. The use of the long staff for self-defence or mock fighting was a highly organised sport in as early as the first and second century A.D.
• Thang Ta and Sarit Sarak: This is again from Manipur. Practised by its Kings to frustrate British rulers. Thang Ta is the technique of fighting with a sword or a spear and Sarit Sarak is the technique of fighting unarmed.
• Thoda: Originated in Himachal Pradesh and dating back to the Mahabharata days, this is an archery skill basically. Thoda, the name is derived, from the round piece of wood fixed to the head of the arrow, which is used to blunt its wounding potential.