18.06.2008

• Bulk deal in Ranbaxy likely
• So reads today’s ET headline. What is a ‘bulk deal’ and what is a ‘block deal’ in stock markets?
• There are two SEBI circulars which define these two varieties of deals.
• A bulk deal, as defined by a circular dated January 2004, is one where the total quantity of shares bought or sold is more than 0.5% of the number of equity shares of the company listed on the exchange. This is applicable even when the deal is struck through multiple transactions as long as the cumulative shares under consideration exceed the 0.5% threshold. There is no price range condition that is imposed in bulk deals.
• A block deal on the other hand, is one where a trade with a minimum quantity of 5 lakh shares or having a minimum value of Rs 5 crore executed through a single transaction on the stock exchange. This is subject to conditions like time period of trade, delivery-based trading and more significantly a price range, which is not to exceed more than 1% from the existing market price or the closing price of the stock on the previous day.
• You might have known by now that Ranbaxy promoters decided to sell their entire holding of 34.82% stock in the company to Daiichi Sankyo of Japan for a consideration of Rs. 9,576.3 crore. The agreement between provided that the transaction will happen through a stock market transaction.
• On 14.06.2008 we noted something about this deal. Have a look at it, to get a perspective of what we are noting about.
• India’s performance at Cannes
• Indian advertising’s Cannes campaign stayed well on course on Monday, with six more bronze Lions coming its way. With four Lions already in the kitty, Monday’s wins take India’s tally to 10— just two gongs short of its previous best-12 Lions each in 2006 and 2007.
• Is it time to have a rethink on our Union?
• In an editorial today ET argues, as did Bimal Jalan the former Governor of RBI the other day, that there is a case for relooking at our Union. What is the context?
• THE Centre’s bid to get state governments to share some of the cost of rising oil prices running afoul of the empowered group of state finance ministers.
• In the case of taxation, not only did the framers of our constitution incorporate provisions for amending the Constitution, but they also provided for the mechanism of independent Finance Commissions to go into sharing of tax revenues. This worked reasonably well when state governments were run by the same party as at the Centre. However, with the rise of regional parties and the greater responsibility of the states to deliver in areas such as health, education, many state governments have begun to chaff at what they see as an unfair distribution of taxation powers.
• While this is the position on the economic front, it is the Centre which finds itself in an uncomfortable position while dealing with issues like terrorism. Without help from the states, all its efforts to tackle issues like insurgency and terrorism cannot progress much.
• So, is it time to re-draw the distribution of powers – economic and political between the centre and the states? Looks like so.
• India has succeeded by becoming a place where people can think of things that never were, ask why not, and then just do it.
• So ends, the last sentence in today’s ET op-ed by SSSA Aiyar. If I were to set a General Essay paper, that surely would be my choice. Read his article here. Worth a read. A very good piece about liberalization in our country – post 1991.
• What are the causes for rising demand for separate states?
• In a very good debate, on the case for reorganization of our states, Peter Desouza (who? He is Director of Indian Institute of Advanced Studies) listed four very good reasons as to why the demand for separate states has arisen.
• Firstly, it is the growth in population. A fivefold growth in the electorate since Independence, to in excess of 650 million, necessarily means that the current federal form is probably inadequate to meet the voters’ rising aspirations.
• Coupled with this is the second cause, the deepening of India as a democracy of communities. Democracy has created an assertive politics of communities that now, enjoying their arrival on the big stage, want a home of their own.
• This ambition gets fuelled, the third cause, by the increasing attention that community leaders get from the media and those who count. Yesterday’s nobody has become today’s somebody. Community politics makes one a somebody.
• The fourth is the development deficit. Since community politics is necessarily sectoral, some gain and some lose. And the losers react. India’s federal experiment is a record of such reactions. As a result, we have new states, special status states, a council of states, autonomous councils, development boards, and special schedule states. And yet the demands keep coming.
• European scientists discover cluster of ‘super earths’
• EUROPEAN researchers said they discovered a batch of three ‘super earths’ orbiting a nearby star, and two other solar systems with small planets as well.
• The planets are bigger than Earth — one is 4.2 times the mass, one is 6.7 times and the third is 9.4 times. They orbit their star at extremely rapid speeds — one whizzing around in just four days, compared with Earth’s 365 days, one taking 10 days and the slowest taking 20 days.
• The trio of planets orbit a star slightly less massive than our Sun, 42 light-years away towards the southern Doradus and Pictor constellations.
• US accuses India of arms conspiracy
• THE US, has claimed that the Indian government agencies conspired with Parthasarathy Sudarshan, CEO of Cirrus Electronics, to obtain secret weapons technology for India’s missile programme. The Indian embassy in Washington, however, denied this by saying that Cirrus Electronics, Singapore had responded to the requirement of Indian organisations through a transparent, public and open tendering process.
• He was accused by the US administration of conspiring to violate US export restrictions by directing at least seven American firms he did business with to send deliveries to Singapore or to the office in South Carolina, where Sudarshan then re-exported the items to India. Mr Sudarshan was sentenced to 35 months in jail and slapped a $60,000 fine by a US court for shipping restricted military technology to Indian government entities engaged in missiles and fighter jet production and space programme.
• Golf
• He has won four Masters titles, the first one by 12 strokes. He has won three United States Opens, the first by 15 strokes. He has won three British Opens, the first by eight strokes. He has won four PGA Championships, one of them by five strokes.
• Who are we talking of? Who else can be; except Tiger Woods.
• He won the United States Open at Torrey Pines Golf Course.