12.06.2009

Politics & the Nation

• Remember the SNC Lavalin case?
• We noted about this on quite a few occasions in our blogs.
• The case has made some progress with the CBI finally filing a chargesheet against one of the prime accused viz., Pinarayi Vijayan. Mr Vijayan, the first CPM politburo member to be prosecuted for alleged corruption, has been charged under Sections 120 B (criminal conspiracy) and 420 (cheating) of the IPC and Section 13(1) and 13(2) of Prevention of Corruption Act.
• The filing of the chargesheet followed the permission given by the Governor of Kerala to the CBI to prosecute Mr. Vijayan.

Finance & Economy

• Interest rate futures to make a comeback?
• INDIA’S financial regulators are set to launch exchange-traded interest rate futures again in the local market as part of a co-ordinated effort to broaden reforms in the financial sector. The move is aimed at helping firms manage the risks arising out of interest rate fluctuations.
• To start with, a futures contract based on a notional coupon or interest bearing 10-year government bond will be introduced. Foreign institutional investors (FII) may well be kept out of this segment of the market until volumes pick up and the market deepens, according to an official associated with the launch of the product.
• In an interest rate futures contract, the two parties to the agreement — a borrower and a lender — agree to fix the rate at which they will borrow or lend on a future date. For banks and even households, interest rate futures such as swaps can help protect them against major swings.
• Interest rate futures were launched in India over five years ago, but did not take off owing to deficiencies in product design and the fact that banks were not allowed to trade in these products.
• India is poised to grow at 8% feels Montek Singh Ahluwalia
• Once in a way we should read full interviews of this type from people like Montek Singh, the Deputy Chairman of the Planning Commission. They give us government's perspective on some crucial issues. Worth a read. Take a look.
• Remember our notings on LLPs?
• In spite of the LLP Act having come into force from April 1, 2009 the market is awaiting government's moves on clearing the confusion about taxation.
• Take a look at this graphic which helps us understanding the present state of LLPs in India.
• One more easy to remember definition of securitisation:
• It is the process of issuing new tradable instruments that are backed by existing assets such as loans or mortgage issues.

Health

• Swine Flu is now a pandemic says WHO
• Read the following excerpt from today's ET article. It is self explanatory. It answers the question: What is meant by a 'level six' epidemic?
• Swine flu cases have gone up to 15 in the country. A total of 74 countries are now affected by the virus. The WHO has now called the disease a pandemic and raised its alert to the maximum ‘level six’. The move will trigger heightened health measures in the WHO’s 193 member states as authorities brace for the worldwide spread of the virus. The move to phase 6 reflects the fact that the disease was spreading geographically, but not necessarily indicate how virulent it is.