20.08.2008

• Boy, TRAI is one hell of a regulator
• Never allows the Telcos sleep peacefully. That’s the way it is supposed to be. Always keeps them on their toes.
• Wasn’t it just yesterday that we noted the directive about IP telephony? Today it has come up with another first. CAC in a different version.
• Wait a minute. Remember about CAC? Carrier Access Code. If CAC is implemented, the users will have freedom to choose a long distance carrier of their choice for every call they make. But the CAC regime did not find favour with Telcos when TRAI sought to introduce it sometime back; and it had to back down because even the DoT also went with the operators.
• But TRAI has now come with a proposal to allow users to choose long distance carriers in a different way. Through prepaid virtual calling cards. What this envisages is that a user having virtual calling card from an operator of her choice can punch in a code and route her call through her preferred network.
• Notice the difference between the two regimes? Very interesting.
• All the best TRAI. Though the move is expected to hit the bottomlines of many a telco, it sure is one good measure of competition.
• Caps on stock exchange holding being hiked
• The government is considering a proposal to increase the cap that exists on stock exchange holdings by a single entity – whether local or foreign.
• But why is it needed in the first place? Look at this graphic; you will understand.
• Measures to contain round-tripping and treaty-shopping
• Remember these phrases? The first one is about routing of domestic funds overseas to bring them back through tax havens like Mauritius. The second is about channelling of investments through countries like Mauritius with which India has double taxation avoidance treaties to evade capital gains tax.
• Having seen that during the previous year, the country has attracted Rs 60,817 crore FDI (i.e., 61% of the total FDI inflows into the country) from tax havens like Mauritius, Singapore and Cyprus, the government has stepped up scrutiny of foreign direct investment (FDI) proposals.
• The country is concerned that FDI inflows from these tax havens is on the rise even as FDI from mature economies either stagnated or declined.
• Taking advantage of tax treaties for investments in India may not be a cause for worry for the government. But, round tripping of funds can often lead to practices of money laundering and breach of FDI sectoral caps, experts opine.
• Why do we get the feeling that politics is sickening?
• Read this story about JMM’s ambitions for the CM’s gaddi in Jharkhand and you will understand why. Not that you don’t know it; but just in case you need to refresh your memory and/or reflect on the issue for a while so that you can formulate your opinions for future use. Shouldn’t a party at least have a modicum of majority or at least be the single largest party to aspire for power?
• Who is the chief of Intelligence Bureau?
• PC Haldar
• Indo-US nuclear deal: New Zealand plays spoilsport
• New Zealand refused to accept the deal on the grounds that India is not a signatory to the Nuclear Non-Proliferation Treaty. Since decisions in the NSG are taken by consensus, New Zealand’s stance could jeopardise India’s hopes for a waiver which would allow it to engage in civilian nuclear trade despite its refusal to sign NPT.
• The country’s premier Ms. Hellen Clark further said that it is working with other like countries on the issue.
• Among the issues that are of concern to New Zealand is the impact of granting an exemption to India on NPT. Wellington will seek to weigh the impact of weakening the NPT with the advantages of greater control on India’s nuclear industry. At the NSG meeting, New Zealand is expected to raise the possibility of building into the exemption conditions that would result in the termination of the waiver agreement, on the lines of the Hyde Act, should India test a nuclear device. It is likely to raise the possibility of introducing confidence and transparency-building measures in the exemption agreement.
• Wellington is also concerned on what would happen if the safeguards agreement with the International Atomic Energy Agency were to be terminated. The other area of concern that New Zealand is likely to raise is on how to prevent transfer of sensitive technology such as enrichment and reprocessing. Though Wellington is of the view that there are some benefits in the agreement, it would like to know whether India would sign the “Additional Protocol” of the IAEA, which would give the agency greater powers of inspection.
• NATO secretary-general?
• Jaap de Hoop Scheffer
• Language lessons: gravy train
• Income obtained with a minimum of effort
• Eg. The newly introduced Competition Act might be their ticket to the gravy train.
• Status of the Competition Act
• First passed by Parliament in 2002, then amended in 2007 after going through a parliamentary standing committee on finance, it is yet to be notified.
• BTW you can find an excellent commentary on the loopholes in the act in today’s article by Rajrishi Singhal here. This can be your answer for an essay question on the subject.
• Take a look at how sprinters have performed over the years from 1912 onwards:
• In this graphic.
• I am sure many of you know 50 Cent, the rapper; don’t you?
• He is one of my favourites too. Know his earnings last year? A cool $150 mn. His real name is Curtis Jackson.
• Want to know my other favourites? Click on the Jukebox link on the left menu bar and enjoy the music.