12.09.2008

• Government firms up on 25% as public holding in listed companies
• Early this year, the government had put out a draft proposal, asking all listed companies to ensure a minimum public holding of 25% while listing, and subsequently, on a continuous basis.
• The norms relating to public holding are specified under the Securities Contract (Regulation) Act, which is administered by the finance ministry.
• The government move is aimed at boosting liquidity in the markets, better price discovery and to discourage possible efforts at manipulating stock prices.
• Public shareholding is now taken as inclusive of the shares held not just by individuals but by financial institutions, foreign portfolio investors, mutual funds and non-resident Indians, employees and others.
• According to the government, going by the data provided by the National Stock Exchange, the average public holding in listed companies in India is only 13%. Holding of Indian promoters, in contrast, is on an average as high as 48%, the data show.
• Look at this graphic which gives details about companies that will be impacted by the move.
  
• What's your take on this move? Is it privatisation of PSUs through backdoor?
• Eased norms for investment in real estate by PIOs
• Current laws restrict investments by PIOs (Persons of Indian Origin) in real estate, causing delays extending to over a year.
• Indian diaspora living in Sri Lanka, China, Iran, Nepal, Bhutan and Afghanistan will be allowed to buy real estate in India without obtaining any permission from the RBI.
• At present, regulations under FEMA provide for mandatory clearance by the RBI for overseas Indian citizens residing in these six countries to buy property in India. However, PIOs based in Pakistan and Bangladesh would still be required to seek mandatory RBI approval before buying or transferring property here.
• Look at this picture which gives an excellent summary of the proposed scheme.
• About the naming convention of hurricanes in US
• The TPC (Tropical Prediction Center) Miami, chooses a name from a list of names to identify a hurricane. For the year 2008, it has identified 21 names. In case more than 21 hurricanes strike this year, the TPC will then use the Greek alphabet.
• The TPC keeps track of breeding grounds for storms, which begin with a tropical depression. Once a storm with counter-clockwise circulation and wind-speeds of 39 miles per hour and above is identified, a name is given to the hurricane in the making.
• What made India slip down a couple of ranks in the latest World Bank's doing business rankings? India is currently ranked 122.
  
• The factors responsible for India’s low ranking are:
• Inefficient enforcement of contracts
• Outdated insolvency laws
  
• Delays in construction permits; and
  
• Under-developed online payment facilities
  
• Debate on cap on credit card interest rates
• Look at this piece which is interesting. Worth a read.
• It has been reported that India’s outstanding credit card debt had touched Rs 26,500 crore in May 2008, up by 87% from May 2007. It has also been estimated that the default rates may increase to 9.5% over the next two years from 7.5% currently.
• Over 30 million credit cards are in circulation in India.
• A take on KBC
• Normally we view anybody criticizing reality game shows like the KBC as cynics or spoilsports.
• Many of us may change views on reading this peace.
• The NCDRC - National Consumers Disputes Redressal Commission has accused KBC and Airtel of unfair trade practices.
• For the Rs. 13.92 crores that is garnered by the show as revenue from SMS messages, it has reportedly distributed Rs. 1.04 crore as prize money.
• What do you call this? It depends on how you are looking at. On reading this piece I am remembered of an email that I received lately from a friend of mine pointing to me this picture. What do you see on this T-shirt? Good or Evil?
  
• Highlights of the biofuel policy cleared by the Cabinet
  
• Oil companies to sell a 20% ethanol-blended petrol across the country by 2017.
• Removal of all central taxes on bio-diesel and according declared goods’ status to biofuels that would ensure a uniform 4% sales tax (VAT) on the product across states.
• A certification mechanism would be put in place for the blending exercise that would have to conform to BIS specifications.
• Setting up of National Biofuel Co-ordination Committee headed by the prime minister and Biofuel Steering Committee chaired by cabinet secretary and comprising secretaries of 10 concerned departments.