...An Analysis of FSLRC Report – Did it deliver what it promised? Even if India can be called a forever young nation, surely its laws are pretty old. Specially in a sector like Finance, where the last few decades has seen umpteen changes, Reserve Bank of India Act, Insurance Act etc dates back to the 1930s. Though there has been moderations of the laws over the years, Indian Financial Sector and its underlying foundation is in need of holistic restructuring. Keeping this in mind, in March 2011, the Government of India, Ministry of Finance established the Financial Sector Legislative Reform Commission or FSLRC to mend the legal and institutional structure of the Indian Financial Market. The Commission was chaired by B. N. Srikrishna, former judge of the Supreme Court and the other board members consisted of virtuoso of various fields like Finance, Economics, Laws and Public Administration. The Commission took up a intense two year process starting from April, 2011 and submitted its “text of the findings and recommendations” in March,2013. For better and effective functionality in finance sector and avoid conflicts of interest among different regulatory, the Financial Sector Legislative Reforms Commission (FSLRC) recommended to have well structured Government agencies. The Commission has pitched for specialized and consolidated set of provisions on regulatory governance by bringing a bill, called Indian Financial Code Bill. Government agencies are required to perform complicated...
Words: 1556 - Pages: 7
...Rural LPG Marketing Presentation by Ashok Sen General Manager(LPG-Sales) Indianoil Corporation Limited India Agenda • Overview- LPG Marking in India • New Initiatives • Supply and Demand • Conclusion Various Products Marketed in LPG • Domestic LPG – Packed product in 14.2Kg, & 5kg cylinders, home delivered through distributors Non Domestic LPG – Packed product 19Kg and 47.5 kg delivered supply through distributors. Bulk – Delivered to Storage Tanks of Customers – Business Associates to garner Customers Auto LPG – Through Retail Outlets along with MS/Diesel and/or stand alone outlets Share of Products(%) • 407.6 6.4% 117.3 82.7 1.9% 1.3% • Segments 5719.8 90.4% • Dom. NDNE Bulk Auto Domestic LPG Business Overview • Total Customer Strength : 142 Million (IOC- 69.7 Million) • Average Enrolment last 3 Years : 10.4 Million (IOC- 4.9 Million) • Daily Bottling Source (Refineries/Import) 185 Bottling Plants (IOC 90) 11860 Distributors (IOC 6110) 142 Million Customers (IOC 69.7 Million) HPC 25% : 3.3 Million (IOC- 1.6 Million) HPC 26% Industry Share Customer Population IOC 49% BPC 25% Industry Share Distributors IOC 52% BPC 23% India- Unity in Diversity • • • • Current population 1.2 billion. 246.7 million Households >30 lakh cyl a day Environment movement on the rise. – Strict Guidelines by Government. – Shift to efficiency and concern for Environment • For better logistics by packaging near to market, bottling plants even at remotest corners– At Leh - highest...
Words: 2402 - Pages: 10
...Market regulator Sebi today said it has imposed a penalty of Rs 10 lakh on a Manish Mathur for allegedly indulging in fraudulent trading practices in shares of Asian Star Company (ASCL). Sebi has alleged that Mathur acted as a link between the connected entities who orchestrated manipulation in the scrip of ASCL. Sebi said it is imposing a penalty of Rs 10 lakh on Mathur "which will be commensurate with the violations committed by him". Sebi said in a probe it noticed a spurt in the price ASCL shares during the period from October 10, 2008 to November 20, 2008. During the same period the benchmark Sensex had dropped over 19 percent. Sebi said it had observed that certain entities connected to each other had allegedly indulged in circular/reversal synchronised trading in a manner that led to creation of artificial volume in the scrips. Mathur is alleged to have had connections with the entities belonging to Mehta group, Sebi said. These entities had allegedly executed trades through broker Triveni Management Consultancy Services of which Mathur was the CEO, it added. Sebi said it noted that Mathur had acted as a link between the Mehta Group entities, financed their transactions to orchestrate manipulation in the scrip and "thereby connived with the Mehta Group clients in manipulating the price and volume of the scrip of ASCL". Sebi slaps Rs 5 lakh fine on a individual in BGSL trading case * Share 0 * * Share 0 * * * Mumbai...
Words: 2550 - Pages: 11
...controversy associated with them props up. The most important regulators in Indian economy, i.e. SEBI and RBI are also seen in picture, day in or day out, issuing notices or warning signs to the parties concerned or related to this instrument. But the analysts associated with stock markets are not much concerned or bothered about this instrument. As some of them, don’t have any relationship with this instrument. Indeed, this instrument is much talked about when we name or see the Foreign Institutional Investors (FIIs). Although FIIs have contributed to the Indian economy, in more ways than one, but still they have not been able to earn the respect for themselves as they should be. RBI and SEBI, every now and then, are bothered about their activities and moves that might affect the economy and the markets adversely. The recently out, Lahiri Committee Report, also lays emphasis on participatory notes, its role and functioning. The question that arises in a person’s mind is that what is a participatory note, how it functions, and why is it famous for its notoriety, etc. We will try to seek the answers of the above said questions and various other aspects of participatory notes in the following discussion. What are participatory notes? In the magazine, Business World, dated December 15th, 2003, the feature on participatory note stated that, “The past month has seen our stock market regulator, the Securities and Exchange Board of India (SEBI), nervously rattling its...
Words: 4138 - Pages: 17
...FINANCING ENVIRONMENT IN INDIA: A CRITICAL REVIEW S No | Topic | Page No | 1. | Executive Summary | 2 | 2. | Financial Instruments | 3 | 3. | Financial Markets | 4 | 4. | Financial Intermediaries | 5 | 5. | The Regulatory Environment | 6 | 6. | The Way Forward | 9 | Executive Summary 1. Corporate finance is used to collectively identify the various financial dealings undertaken by a corporation. Ideally, corporate finance is the division of the company that is mostly concerned with the financial operations of the company. In some businesses, corporate finance primarily focuses on raising money for ventures and projects. For other corporations and investment banks, corporate finance concentrates on analysis of corporate buyouts and other decisions. The core functions of corporate finance are making wise use of the financial resources available to the company. Corporate finance may also take on many different aspects of the overall management of the finances of the company. The functions may also include managing of investments like acquisition and selling stocks, bonds, and other investment ventures pertaining to other companies. It may also involve creating and managing the process for issuing shares of stock or offering corporate bonds to generate resources for expansion projects. 2. The pattern of corporate financing in India has been different throughout its economic history. The outline of corporate financing in India has been determined by the...
Words: 5192 - Pages: 21
...public issues. Transfer of resources from those having idle resources (investors) to others who have a need for them (corporates) is most efficiently achieved through the securities market. Stated formally, securities markets provide channels for reallocation of savings to investments and entrepreneurship. Savings are linked to investments by a variety of intermediaries, through a range of financial products, called ‘Securities’. Which are the securities one can invest in? Shares Government Securities Derivative products Units of Mutual Funds etc., are some of the securities investors in the securities market can invest in. Regulator Why does Securities Market need Regulators? The absence of conditions of perfect competition in the securities market makes the role of the Regulator extremely important. The regulator ensures that the market participants behave in a desired manner so that securities market continues to be a major source of finance for corporate and government and the interest of investors...
Words: 710 - Pages: 3
...innovation and the challenges of financial integration. It is felt that the present code of the financial sector need to be reviewed and altered, while keeping in mind the present needs of the economy. This is because most of the laws are very old, there are overlaps and inconsistencies, and there is lack of clarity in terms of regulations due to the presence of a number of regulators. It is also argued that the laws in India are traditionally evolved on a problem by problem basis. With the advent of the New Economic Policy in 1991, substantial economic liberalisation took place in India. Between 1991 and 2002, progress was made in four areas. Firstly, capital controls were substantially reduced to give Indian Firms access to foreign market. Also, a new pension system was evolved and the monopolies of the public sector in the insurance field were broken up. This led to the formation of the new Insurance regulator, Insurance regulator and Development Agency. Additionally, significant increase in the equity market as a mechanism to raise finance by firms led to the formation of the financial market regulator SEBI. Also infrastructure institutions, National stock exchange and National Security Depository were also set up. Although, these moves were taken up in the right direction but they were considered to be inadequate because of the diverse nature of the Indian households and firms. There is a constant need of innovation in its product and processes in the financial sector in...
Words: 1972 - Pages: 8
...witnessed a fall of 8 percent in the assets under management in the financial year 2008-09 that has impacted revenues and profitability. Recent developments triggered by the global economic crisis have served to highlight the vulnerability of the Indian mutual fund industry to global economic turbulence and exposed the increased dependence on corporate customers and the retail distribution system. It is therefore an opportune time for the industry to dwell on the experiences and develop a roadmap through a collaborative effort across all stakeholders, to achieve sustained profitable growth and strengthen investor faith and confidence in the health of the industry. Innovative strategies of AMCs and distributors, enabling support from the regulator SEBI, and pro-active initiatives from the industry bodies CII and AMFI are likely to be the key components in defining the future shape of the industry. The Indian mutual fund industry has gained immense experience and continues to reinvent itself gradually, exhibiting steady growth over the last decade. A compound annual growth rate of 28% has been recorded by...
Words: 2813 - Pages: 12
...Case 5 - Sunco, Financial Services Industry: Financial services Region: India Source: Based on a simplified version of a real consulting engagement (Some case interviewers give very little information in the beginning of the case and want you to probe for information. Some others however give a lot of information to see how you handle such enormous quantities of data. This case belongs to the latter category.) The year is 2000. The case we are about to discuss today is based on the financial services industry in India. Before I tell you about our client, I am going to give you some information about the industry structure. The industry has 2 sub-segments: Commercial Banks and NBFCs, which stands for Non Banking Finance Companies (the idea is to throw some complex sounding acronyms to see how the candidate handles it). Both these segments are highly regulated by the banking regulator but the key differences between the two segments are as follows: Commercial banks are typically national players whereas NBFCs are regional players the reason being that the former is a scale business NBFCs are not allowed by the banking regulator to offer an important product called checking accounts (or current accounts as it is called in certain countries) to their customers. Before I explain what that this product is tell me if you know the difference between an asset and a liability product for a bank is (candidates who are not familiar with the...
Words: 2636 - Pages: 11
...North Maharashtra University, Jalgaon (M.S) Abstract The Maggi imbroglio escalated to an unprecedented level with India's food regulator Food Safety and Standards Authority of India (FSSAI) ordering a total recall of all nine variants of the best-selling instant noodles brand. This is the first ever recall of a popular food product in India. The transformation of Maggi from being staple food for students and bachelors to being declared unfit for consumption has been quite instant. The Nestlé’s maggi noodles were banned across states after samples of it were found to contain excess amounts of lead and MSG— a flavor enhancer. The recent controversy around Maggi noodles that has every household in an uproar. The dispute has placed the processed food industry, regulators, government, and even consumers in uncharted territory.This dispute has raised serious questions about processed food industry, What caused such a vehement reaction against what was adjudged as the Most Powerful Brand in recent times and to answer this questions, the research cum case study paper would like to explore the controversy surrounding around Nestlé’s maggi in particular and food industry in general and highlight the shortcomings of food safety apparatus at central and state level and suggest the strategies to revamp the same . Key Words- Food Safety and Standards Authority of India (FSSAI), Maggi. 1. Introduction Many fast food items have flooded the markets but noodles remained as the most popular item of...
Words: 3905 - Pages: 16
...in traffic at Indian airports and will create job opportunities across the aviation and tourism sectors. It will greatly benefit all our stakeholders whilst significantly benefitting our guests who will now have access to a more expanded global network, enhanced connectivity for tourists, business travellers, and the wider travelling public. India is one of the largest and fastest-growing markets in the world. Through this association, Jet Airways and Etihad Airways will both be strengthened as will be the economies of India and the UAE. By linking our two networks and adding new flights, new routes and more code-share options, travel to, from and within India will become more accessible/ convenient. Etihad Airways and Jet Airways will combine their network of 130 destinations, with Jet Airways establishing a Gulf gateway in Abu Dhabi and expanding it’s reach through Etihad Airways’ growing global network. Under the strategic partnership, both airlines will gradually expand existing operations and introduce new routes between India and Abu Dhabi thus providing an ever wider choice to the travelling public. Guests from 55 cities in India will benefit from connections to international destinations. New flights from our home hubs of Mumbai and Delhi and other metro airports will further strengthen our current operations from these airports. Our vision continues to be to develop Delhi and Mumbai airports as our primary home hubs and...
Words: 1085 - Pages: 5
...Railways sector in India Indian railways started its 53km journey between Mumbai and Thane on April 16, 1853 and is today one of the largest railways in the world. Indian railway is spread over 109,221km covering 6906 stations. Operating three gauges, trains in India carry over 481 billion ton kilometers and 695 billion passenger kilometers of goods and traffic respectively. Indian railway carries 40% of freight traffic and 20% of the passenger traffic in country. IR is one of the premier infrastructural wings of the economy combining all major functions of a conventional Railway system. It builds and maintains infrastructure assets like Track, Electric traction, Signaling Systems, Telecom network, Stations / Terminals etc. Apart from operating goods and passenger trains, it operates suburban trains in various metros. It manufactures locomotives, coaching stock, wagon and components of rolling stock like Wheel & Axle. It runs workshops to maintain its rolling stock & is also involved in ancillary activities like catering, tourism etc. All the above activities are managed through a strong work force of 1.41 million. Indian Railway’s operations are characterized by mixed traffic –both passenger and Freight trains share the same track and infrastructure. Passenger trains constitute nearly 70% of the trains run but contribute to less than 35% of the revenue earned, while freight trains constituting only 30% of the trains, make up 65% of the revenue. Like most of the...
Words: 1074 - Pages: 5
...13 August:the ban on Nestle’s Maggi noodles is set aside. Consipiracy behind it: Nestle India has been destroying evidence, he alleges. It is a serious charge. Why has Nestle been in such a tearing hurry to burn thousands of tonnes of Maggi noodles? Thirty thousand tonnes, to be exact. Worth almost Rs320 crore. Gone. Poof! Up in smoke. All in just a few weeks. Khambata1:is a serious matter, because if we detect lead, which is a serious contaminant, in a few samples, then we are not shutting down their business. These products are valid for nine months; we gave them the opportunity to come back. They could have come back in June and asked us what are we doing, have the fourth part tested. It would have been a week, two weeks, may be even less to get those results and if there was a variance, it would have gone to a referral lab. Why didn’t they do that? On 11 June, Nestle India filed a petition in the Bombay high court challenging the ban imposed on Maggi noodles That came after the Food Safety and Standards Authority of India (FSSAI) on 5 June and the Maharashtra FDA on 6 June ordered Nestle to withdraw all nine variants of Maggi instant noodles from the market, terming them unsafe and hazardous for human consumption. In various tests, the regulators found overwhelming evidence that the product contained lead far above the maximum permissible limit of 2.5 parts per million. In the order, FSSAI also asked Nestle to stop the production, processing, import, distribution and...
Words: 2129 - Pages: 9
...International Journal of Marketing, Financial Services & Management Research Vol.1 Issue 11, November 2012, ISSN 2277 3622 Online available at www.indianresearchjournals.com INDIAN CURRENCY FUTURES: AN ANALYTICAL STUDY OF ITS PERFORMANCE DR. DEVAJIT MAHANTA* * Vice President-Benzcom Consulting Pvt. Ltd. 3A-Oberon Appartement, 6-Lamb Road Ambari, Guwahati-781001, Assam, India ABSTRACT Since its inspection in 2008, currency derivative trade in India had experienced explosive growth, both in volumes and value over the years across all the four currencies contracts that were in operation in INRUSD, INRGBP, INREUR and INRJPY. However in terms of the open interest currency derivatives trade in MCX is more as compared to the NSE. By consider both stock and commodity exchanges for launching currency futures contracts government of India has done a commendable job which is expected to increase the number of quality players, introduce healthy competition and boost trading volumes of Indian currency futures. The global markets (mainly USA) become active only after Indian markets close at 5.00 pm and as a result there is an evident fear about the risks associated with overnight fluctuations in the currency pair. Therefore the functioning as well as the profitability in Indian currency futures is effected by the current performance of the international currency futures market. It is imperative that any evaluation, projection on Indian currency futures market should be undertaken keeping...
Words: 2651 - Pages: 11
... A-CAT has been in operation since 1986 and is one of the leading producers of electrical appliances in India. The company offers nearly 100 different models of various electrical appliances for household use and competes in a medium scale industry, distributing their products to a rural population of India.(Sharma, 2013) The “primary flagship product” of A-CAT are the voltage regulators. Voltage regulators have a variety of purposes but are most commonly used as protective devices for refrigerators and television sets, protecting them from load fluctuations and/or power failures. (Sharma, 2013) Aside from being a producer, A-Cat is also committed to the pursuit of a quality control program to monitor the quality of its transformers. Introduction to the Problem- A large number of products manufactured and sold by A-CAT, such as the voltage regulator, require a transformer as one of their principal and primary components; and another large percentage of products such as TVs, refrigerators, washing machines and other white goods use voltage regulators as a guard against potential voltage fluctuations. (Sharma, 2013) Due to the large amount of products that use transformers as a vital part of functioning, the store managers always tried to keep a good quantity of spare transformers as a buffer. Unfortunately, during the past few months, the sales of the voltage regulator have decreased and ordering/storing too many transformers exposes the capacity constraints of the supplier’s...
Words: 1196 - Pages: 5
