BLACK FRIDAY, SENSEX SLIPS 455 POINTS

The BSE benchmark Sensex today tumbled by 455 points to close below key 20000-mark, wiping off Rs 1.1 lakh crore in investor wealth, on panic selling in realty, banks and PSUs as hopes of rate cut crashed after RBI comments amid GDP growth slumping to decade-low of 5 per cent. The 30-share barometer, after gaining 68 points in the previous session, tumbled 455.10 points, or 2.25 per cent to 19,760.30. This is its biggest daily loss since March 2012. HDFC, HDFC Bank and ICICI Bank fell in 3-4 per cent range. Heavyweights ITC and RIL dropped by over 3.5 per cent each. L&T, SBI, ONGC and Sun Pharma also witnessed selling. All sectoral indices, barring IT, lost upto 3.3 percent. Similarly, the NSE index Nifty plunged by 138.10 points, or 2.26 percent to 5,985.95. MCX-SX flagship index, SX40 today closed 258.98 points lower, or 2.16 per cent, at 11731.91. Belying hopes of further rate cuts, the Reserve Bank Governor D Subbarao's comments that there are still upside risks to inflation spooked stock markets. Additionally, RBI's concern about widening country's current account deficit amid rupee falling to over 10-month lows, also put pressure. Pulled down by poor performance of farm, manufacturing and mining sectors, economic growth slowed to 4.8 per cent in the January-March quarter and fell to a decade's low of 5 per cent for the entire 2012-13 fiscal. "The main fears in the mind of investors are ballooning current account deficit and how soon can the interest rate come down. Market is nervous also because of likely portfolio changes due to changes in the MSCI index," said Motilal Osswal, CMD, Motilal Oswal Financial Services. The realty sector index suffered the most by losing 3.38 per cent to 1,684.92 as DLF fell 5.41 per cent to Rs 194.85, its lowest in more than 8 months after its first quarterly loss since at least 2007. Oil and gas index was second worst performer by falling 2.71 per cent to 8,654.79 as the energy major Reliance Industries tumbled 3.62 per cent to Rs 805.60. A subdued trend in the overseas markets as investors awaited reports on American consumer confidence and business activity, also influenced the market sentiment.

A cross-border business plan competition "Startup Dosti" is to be launched by an American think tank that will connect entrepreneurs from India and Pakistan, facilitating investment and collaboration. The new cross-border business plan competition, named "Startup Dosti", will be formally launched at an event on June 3 at the British Parliament. The competition by Atlantic Council will provide business support and seed funding to high-potential, early stage startups in India and Pakistan. A partnership between SEED Ventures (Karachi-London), the Indian Angel Network (New Delhi), and the Atlantic Council (Washington DC), the competition will be televised by GEO TV in Pakistan and an Indian broadcast partner, a statement said. Contestants will have the opportunity to win seed funding, incubation, mentorship, and access to business resources if they successfully convince a cross-border panel of seasoned investors to support their enterprises, the statement said. "Startup Dosti will interconnect the entrepreneurial communities across India and Pakistan, thus creating a platform for exchange of ideas, mentoring, assistance in access to markets, and perhaps funding," said Padmaja Ruparel, president, Indian Angel Network. "Given the similarities in the market stages in India and Pakistan, entrepreneurs from both countries can now look forward to assisted access to a significantly sized market in their neighbourhood," she said. "The Dosti Partnership is a timely project seeking to build upon steadily improving relations between India and Pakistan," the Atlantic Council said. Total trade between the two countries has increased from USD 750 million to more than USD 2.5 billion since 2005. Experts believe a USD 50 billion trade market could exist, should barriers and restrictions continue to fall, it said.

PRIVATE WEALTH TO TOUCH 4.5 TRILLION DOLLAR

 Consultancy firm BCG today said private wealth in the country will more than double to USD 4.5 trillion by 2017, from USD 2 trillion at the end of 2012.
"Private wealth in India is expected to grow at 17.8 per cent annually until 2017 to USD 4.5 trillion," Boston Consulting Group (BCG) said in its global wealth report released today. Interestingly, the estimate comes on the same day when official data confirmed that the country's GDP growth has come to a decade low of 5 per cent in 2012-13. Private wealth in the country increased by 12.6 per cent over the previous year to USD 2 trillion at the end of 2012, up from USD 1.1 trillion in 2007, according to the BCG report. As much as 65 per cent or USD 1.3 trillion of the wealth is in the form of cash and deposits, while investments in bonds account for 21 per cent and equities account for 13 per cent, said the report. By 2017, the proportion of equity investments is expected to go up to 18 per cent, at the expense of cash and deposits which will come down to 61 per cent, it said. With 164,000 millionaire households, the country ranks 15th in the world in the list of number of millionaire households, which is led by the US followed by Japan and China. "India offers very good long term opportunity to both domestic and global players, given the growth potential, high rate of household savings, and concerted efforts encouraging higher financial savings," BCG's partner and director Ashish Garg said. He, however, noted that wealth managers in the country face several challenges including that of scale, pricing, business models and ability to attract new customers.

GOLD MORE CHEAPER IN MEDIUM TERM

Gold prices may fall by Rs 2,000 from the present levels in the near to medium term as the precious metal is losing appeal as an asset, a report by industry body Assocham has said.
The report, however, said that gold is unlikely to fall below Rs 25,000 per 10 grams due to a strong buying support at that level and a weak rupee against the US dollar.
Gold prices have come down to Rs 27,790 per 10 grams in the national capital this month from the high of Rs 32,990 per 10 grams in April. "A fall of Rs 2,000 or little more from the present level looks plausible in the near to medium term," according to Assocham report on gold.
A likely drop in gold prices below Rs 25,000 per ten grams level will attract a strong buying support and may lead to April-like situation, when the downward spiral had made buyers rush to jewellers and banks for enriching their bullion collection, it said.
The Assocham paper contended that gold prices are unlikely to fall below Rs 25,000 per ten grams for another reason, that is, continuous weakening of rupee against dollar.
"Expensive dollar will push the gold prices in India even as they may decline in the international market. The country meets almost all its gold requirements through imports which will again become expensive as the rupee is likely to see more pressure in the coming days," it added.
The report titled ‘Will Gold Retain its Lustre in 2013?’ found that the main reasons for a runaway rise in gold prices in India was lack of investment avenues for the Indian middle and upper middle class. This is more so in the wake of inflation hovering around the double digit figure and investors were finding it difficult to save funds from the general price rise, it said.
On the other hand, the report said that most other avenues like property were out of the reach for the middle class investors and the equity market was dull. In this context, the gold units had come in handy.
It found that the newly announced inflation indexed bonds will not fit the bill since the instruments have a long maturity period while the secondary bond market in the country has not developed for the retail investors.
India, the world's largest gold consumer, is expected to import around 900 tonnes in 2013.

GROWTH SLIPS TO 5%

Economic growth rate slipped to a decade low of 5 per cent in 2012-13 on account of poor performance of farm, manufacturing and mining sectors, raising hopes for rate cut by Reserve Bank to boost economy. The growth rate in the fourth quarter ending on March 31, stood at 4.8 per cent showing a marginal improvement over 4.7 per cent recorded in the third quarter of 2012-13. "Growth numbers are as per expectations," Finance Minister P Chidambaram said after the CSO released data on national income accounts here today. Commenting on the the data, Planning Commission Deputy Chairman Montek Singh Ahluwalia said, "There is evidence the economy has bottomed out. But we still don't have evidence of a strong recovery. It is challenging to get to 6 per cent (growth) where last quarter is 4.8 per cent." According to the finance ministry, the growth in the current fiscal is likely to improve to 6.1-6.7 per cent. Economic growth or gross domestic product (GDP) had expanded by 5.1 per cent in January-March quarter of last fiscal. Economy had grown at 4 per cent in 2002-03. India's economic growth was at 6.2 per cent for the 2011-12 fiscal. It had grown by 5.4 per cent, 5.2 per cent and 4.7 per cent in the first, second and third quarters, respectively, of 2012-13, the data showed. Prime Minister's Economic Advisory Council Chairman C Rangarajan said, "GDP numbers has been on expected lines.... as far as manufacturing is concerned perhaps we have reached the bottom. "WPI based inflation has slowed, I think there is a greater room for the RBI to act," he added. The RBI is scheduled to announce its mid-quarter policy review on June 17. In its last review, it had cut the key interest rates by 0.25 per cent.
"CII has been advocating further easing of the monetary policy with a reduction in repo rate and Cash Reserve Ratio (CRR)," CII Director General Chandrajit Banerjee said.
The BSE sensex slipped by 485 points to 19,730.55 during the intra-day trade.

According to the CSO data, the manufacturing sector In January-March quarter of 2012-13 grew marginally by 2.6 per cent, against 0.1 per cent growth in the same period of the earlier fiscal.
During 2012-13, the sector under review grew by a meagre one per cent compared to 2.7 per cent in the previous fiscal. Mining and quarrying sector contracted by 3.1 per cent during the fourth quarter of last fiscal, as against growth of 5.2 per cent in the same period of 2011-12. The contraction in mining sector remained unchanged at 0.6 per cent in 2012-13 over the earlier fiscal. Farm sector output rose by a mere 1.4 per cent in the last quarter of FY13 as against 2 per cent in the same quarter of 2011-12. The agriculture sector grew by just 1.9 per cent in 2012-13 compared to 3.6 per cent in 2011-12. The growth rate of electricity, gas and water supply slowed to 2.8 per cent in the fourth quarter from 3.5 per cent witnessed in the same quarter of 2011-12. The segment grew by 4.2 per cent in 2012-13 compared to 6.5 per cent in previous fiscal. Construction sector expanded by 4.4 per cent in Q4 of 2012-13, as against 5.1 per cent in the year-ago period. The segment grew by 4.3 per cent in 2012-13 as against 5.6 per cent in the previous fiscal. Trade, hotels, transport and communications segment grew at 6.2 per cent in the January-March quarter this year as against 5.1 per cent in the same period a year ago. The sector grew at 6.4 per cent in 2012-13 compared to 7 per cent in the earlier fiscal. Growth rate of services sector, including insurance and real estate, stood at 9.1 per cent in 4th quarter against 11.3 per cent in same period of 2011-12. The segment grew by 8.6 per cent in 2012-13 compared to 11.7 per cent in 2011-12. Community social and personal services registered a growth of 4 per cent in Q4 period compared to 6.8 per cent in the January-March quarter of 2011-12. The segment grew by 6.6 per cent in 2012-13 as against 6 per cent in the previous fiscal.

INFLOWS TO INDIA PICKS UP

After two months of continuous outflows, Asia equities witnessed inflows last month to the tune of USD 7 billion in May and flows into India also witnessed an uptrend, an HSBC report says. According to an HSBC research note that analysed how mutual funds are positioned across Asia, "May saw a reversal of fortunes – Asia witnessed inflows after two months of continuous outflows." Asia witnessed fund inflows to the tune of USD 7 billion, after a decline of USD 1.5 billion in March and April. Meanwhile, India continued to attract inflows as well, although the pace has declined considerably from the start of this year, the inflows in the month of May were better than that of March and April.
According to HSBC, India witnessed an absolute net fund flows of USD 2.9 billion in May (till May 22), taking the total fund flow so far this year to USD 14.2 billion. In January and February India witnessed fund inflows of USD 4.1 billion, which decline significantly in March and April to USD 1.9 billion and USD 1.2 billion respectively. In the year 2012 India witnessed a total fund flow of USD 24.6 billion, HSBC report said.
Across Asia, investors took money out of Korea only in May, while there were inflows in other markets like -- Taiwan, Thailand, Indonesia, Philippines and India. "Taiwan witnessed inflows which were significantly larger than flows seen in previous months. In the ASEAN markets, The Philippines have continued to witness inflows, and we have seen acceleration in buying in Indonesia as well," HSBC said. Meanwhile, on a relative basis, funds' exposure to developed markets like Singapore and Hong Kong has continued to decline. Hong Kong is now at its largest underweight seen in the last five years. Exposure to Korea also fell.
Sector-wise, mutual funds have switched from industrials to materials, stayed neutral IT, reduced exposure to utilities, and remained underweight consumer discretionary, consumer staples and energy, HSBC said.

HOUSING PRICES UP BY 1 %

Housing prices have increased marginally by an average 1.1 per cent in 20 major cities, including Delhi and Mumbai, in January-March 2013 over the previous quarter due to slowdown in demand, National Housing Bank said today. Residential housing prices in 12 cities have shown increase in prices in this quarter ended March, 2013 over the previous quarter (October-December, 2012), quarterly update of NHB Residex said. On the contrary, eight cities have shown decline in prices over the previous quarter with maximum fall observed in Guwahati (-7.84 per cent) followed by Ludhiana (-6.71 per cent), Surat (-6.67 per cent). Besides, price correction was witnessed in Kolkata by 5.75 per cent, Lucknow by 3.18 per cent, Hyderabad 2.23 per cent and Chennai 1.28 per cent. "Property prices in majority of the cities are witnessing marginal upward trend," NHB said in a statement. Price increase was witnessed in Jaipur (28.74 per cent) followed by Bhubneshwar (14.54 per cent), Pune (7.81 per cent), Bhopal (6.49 per cent), Delhi (3.59 per cent), Bengaluru (2.83 per cent), Mumbai (2.31 per cent), Kochi (2.30 per cent) and Faridabad (0.98 per cent). NHB RESIDEX tracks the movement in prices of residential properties on a quarterly basis since 2007. The index for Delhi includes property transactions in Gurgaon, Noida, Greater Noida and Ghaziabad. NHB RESIDEX has been expanded to include six new cities namely Chandigarh, Coimbatore, Dehradun, Meerut, Nagpur and Raipur from this quarter, it said.

APPLE 1 COMPUTER SOLD @ 650000 DOLLARS

An anonymous buyer from Asia paid a record USD 650,000 for an original Apple 1 computer from 1976, one of only six still in working order, built by Apple co- founders Steve Jobs and Steve Wozniak. The Apple 1 was one of the first 50 built by Jobs and Wozniak in Jobs' parents' garage. The computer - consisting only of a motherboard, signed by Wozniak - went to an anonymous buyer from Asia for 500,000 euros (USD 650,000), German auction house Breker said. Last year, an Apple 1 sold for 490,000 euros (USD 633,000), the BBC reported.
Only about 200 Apple 1s were ever made. About 46 remain in existence, but only six of those are still in working order. Bob Luther, author of The First Apple, called the Apple 1 the "holy grail of collectable technology". The one sold at auction in the German city of Cologne on Saturday was purchased together with an original monitor, tape-player, keyboard. The documentation was signed by Jobs.

SOCIAL MEDIA A BOON OR A BANE

Many Indian companies feel social media sites such as Facebook and Twitter have improved their brand equity and stakeholder engagement but such platforms distract employees at work, says a survey.
The survey by AIMA, grouping of management professionals, found that more than one-third (38 per cent) of respondents believe that social media participation has improved their brand equity as well as stakeholder engagement.
However, about 31 per cent of the respondents were sceptical about using social media for business. Besides, only 24 per cent were found to be allowing employees to use social media sites at work.
On the other hand, 56 per cent of firms surveyed believe that social networking sites distract their employees and another 37 per cent of respondents believe that it would hamper internal and external communication.
The survey, which covered over 100 companies, saw participation of CEOs, MDs, department heads and managers, among others. Among the firms surveyed include NIIT, Axis Bank, HCL Technologies, Titan Industries, Bharat Electronics, ACC and Apollo Hospitals.
According to the report, many Indian enterprises are yet to embrace social media for business though nearly all individual executives are using social media for personal or professional purposes.
Interestingly many firms are still to accept social media as a tool for expanding business in fact they see it as a hindrance to work, it added.
Social networking is widely considered to be one of the most potent tools of marketing, the survey reiterates this belief with 57 per cent of the respondents using such sites to market and promote their brands.
Around 20 per cent of companies surveyed have witnessed improvement in employee contribution because of using social media.

LEICA CAMERA SOLD @ 683000 DOLLARS

A 1931 Leica camera has sold for USD 683,000 at an auction that included rare photos and the camera that snapped an iconic shot of an American sailor kissing a nurse the day World War II ended. The rare Leica, which belonged to German winemaker Karl Henkell, fetched more than three and a half times the expected price at the Vienna sale held by auctioneers Westlicht yesterday. Other models by the famed German camera firm also fetched far higher prices than expected. 

A prototype Leica M3 estimated at 70,000 euros sold for 432,000, and a prototype Leica Reporter 250 estimated at 30,000 euros fetched 240,000. The camera used by German-born American photographer Alfred Eisenstaedt to shoot his famous picture of a US sailor bending over and kissing a young nurse in New York's Times Square during victory celebrations after Japan surrendered on August 14, 1945 sold for 114,000 euros. A signed print of the photo itself sold for 24,000 euros. A 1949 photo by American photographer Irving Penn of his wife, "Woman in Chicken Hat", went for 66,000 euros.

CORONATION FEVER

Want to be part of Royal history? The Buckingham Palace is selling a host of pricey souvenirs, including a carriage clock and a celebration bowl, to mark the 60th anniversary of Queen Elizabeth II's coronation. Queen's coronation was held more than a year after the accession, on June 2, 1953. The souvenirs to mark next Sunday's event include a 2,250 pounds carriage clock, one of 60 made by jewellers Mappin & Webb. Other limited edition items are a 595 pounds celebration bowl, 250 pounds teddy bear, 195 pounds loving cup and 95 pounds dessert plate. Cheapest gift is a 5.95 pounds sweet tin, the Sun reported. A spokeswoman for the Royal Collection said the products were "very popular" and would help pay for the upkeep of royal residences and art exhibits. "Royal Collection Trust is always keen to ensure that its shops offer a range of products and prices. This is reflected in the current range of special commemorative Coronation items, with prices beginning at 5.95 pounds," she said. "The Coronation range includes sweet tins, tea towels, and decorations, as well as official commemorative china, hand-made in Stoke-on-Trent, and a small number of exclusive Limited Edition products, such as the carriage clock which is a limited edition of 60," the spokeswoman said. "This wide range of products has proven very popular with those wanting to mark this special anniversary, she added. But Labour MP Paul Flynn said: "It's a right royal rip-off. They have misjudged the public mood at a time of austerity. Most items will end up in junk shops."

MITTAL'S HOUSE FOR SALE

The credit crunch seems to be taking its toll on one of the world's richest Indians Lakshmi N Mittal, who has put up one of his mansions in central London up for sale. The steel tycoon had bought the property on Palace Green in Kensington for 117 million pounds in 2008, when it was declared the most expensive home in Britain. However, according to the 'Sunday Times', he may end up making a loss on the neo-Georgian building after it went on the market earlier this month for 110 million pounds. The 12-bedroom palatial home was bought for Mittal's son, Aditya, from Israeli-American financier Noam Gottesman. The entire first floor of the 14,736 square feet property is dedicated to the master bedroom quarters, with a separate wing referred to as "Mrs Mittal's dressing room". But Aditya, who is the chief financial officer of the family-owned steel firm ArcelorMittal, and his family reportedly never moved into the new mansion. While the house does not have a swimming pool, it comes with planning permission for basement work and has a dedicated storage room for art, a flower room, a silver room and tutorial and homework rooms for children. Lakshmi Mittal himself lives nearby at Kensington Palace Gardens, dubbed as London's "billionaire's row" with neighbours including fellow tycoons such as Roman Abramovich and Len Blavatnik, ranked ahead of Mittal in this year's 'Sunday Times Rich List'. As a result of the credit crunch and a fall in demand for steel from China, Mittal's fortunes took a hit of an estimated 2.7 billion pounds last year, resulting in him being deposed as the richest man in Britain by Russian industrialist Alisher Usmanov after eight years at the helm of the definitive wealth analysis. Mittal had paid 57 million pounds for his current home and also owns a 70-million pounds former Philippine embassy in London, intended as a home for his daughter Vanisha.

BBK GEOGIT JV IN KUWAIT

BBK Geojit Securities KSC, a Joint Venture between Bank of Bahrain and Kuwait (BBK) and Geojit BNP Paribas would soon launch its operations in Kuwait. It will be the first company in Kuwait to offer NRIs access to Indian Capital markets, BBK Chief Executive Abdulkarim Bucheery and Managing Director of Geojit BNP Paribas C J George told a joint press meet here last night. JZ Associates, Kuwait, is also part of the JV, which has received licence from Kuwait's Ministry of Commerce and Industry (MCCI). The JV will offer NRIs a wide range of services, including equity trading, mutual fund advisory, real estate advisory and PAN card processing facilities. BBK Geojit security will also offer its services to Qualified Foreign Investors (QFI) as and when regulatory approval is received. This is the second such partnership involving BBK, one of the largest banks in the Gulf region and Geojit. Earlier, the entity had offered similar facilities in Bahrain. Bucheery said BBK had always nurtured its NRI customer base and valued the long standing partnership between the Gulf states and India.

TIBETANS LOVE BARLEY BEER

Ask Tibetan's about their favourite beer and they vouch for the local product - Tibet Green Barley Beer. Manufactured at the Tibet Green Barley Beer Brewery, one of the world's highest and most advanced breweries situated at Lhasa Economic Development Zone, its main ingredient is highland barley produced by local farmers. Besides, malt and rice from Australia are also used. "Our aim is to provide quality products in an environmental friendly atmosphere," Luobu Ciren, deputy CEO of the brewery, told a group of visiting foreign journalists. 200,000 million tonnes of beer are manufactured annually out of which 50 per cent of the annual output is consumed in Tibet while the rest is exported to other parts of China and also to Japan, he said. Tibet Green Barley Beer Brewery is a relatively new company set up in 2010. It is 35 per cent government funded. Last year, the company achieved a net profit of 78 million yuan. The government has given a 100 per cent tax rebate to the brewery for the first three years. "The daily output is 30,000 boxes, with one box containing 24 cans. The hourly output is 36,000 cans," Luobo said, adding shipping is done directly from the factory as there is an agreement with the Railways. The beer season in Tibet is from the middle of May to October. The production process is mainly automatic. 137 people work in the factory. The first stage comprises extraction, the second stage is brewing which normally takes 17 days and then the product is packaged in bottles and cans. Says a local Dup Chong, "Tibet Barley Beer is my favourite. It may be a tad costlier but it’s the only barley beer". The Brahmaputra Grand Hotel here also serves Tibet Barley Beer. "It's a favourite among our guests. Many of them prefer this local beer over German and American brands," says the manager of the hotel.

MARUTI "BEAT THE HEAT"

Country's largest car maker Maruti Suzuki India Ltd (MSIL) today said it is organising a campaign, under which it will offer a range of services including free checking of air conditioners, at its 3,000 service workshops across the country. Under the campaign--'Beat The Heat', the company will also offer free top wash, TrueValue evaluation and exchange. The camps will be held on May 25 and May 26 across the country, MSIL said in a statement.
"At this time, with summer at its peak, customers obviously want air-conditioning in their cars to deliver top performance. We want to address this for as many customers as we can, as soon as possible," Maruti Suzuki Chief Operating Officer (Marketing and Sales) Mayank Pareek said.
"We are therefore using the entire national service network of Maruti Suzuki to service customers over a single weekend," he added. The company expects to attend to 85,000 customers across the country during the two-day initiative. As part of the campaign, trained MSIL service team will check air conditioning system in Maruti Suzuki vehicles and will also suggest remedial measures, as required, to achieve optimum performance and comfort level, the company said. MSIL has the country's largest customer service network of over 3,000 service workshops in 1,400 cities across India.

VATICAN FIGHT AGAINST MONEY LAUNDERING

The Vatican today said it was a "credible partner" in the struggle against money laundering as it published its first-ever report on efforts to meet international rules on suspect financing. The Vatican "is already a credible partner," said Rene Bruelhart, director of the Vatican's Financial Intelligence Authority (FIA), who was appointed last year to help reform efforts. The FIA document said there had been six reports of suspicious financial activity in the Vatican last year and three requests of information from foreign authorities but did not provide details. The report also showed there were 598 declarations of cross-border transfers of more than 10,000 euros ($13,000) into the Vatican and 1,782 outgoing ones in 2012. "The statistics and trends from 2012 are encouraging and indicate that the system is consistently improving," Bruelhart said. Bruelhart, a Swiss lawyer, previously helped Liechtenstein shed its shady reputation. The Council of Europe's anti-money laundering body Moneyval last year criticised the lack of independence of the FIA but hailed progress made by the Vatican in implementing legislation against laundering and terrorist financing. The Moneyval report said the Vatican had scored unsatisfactory ratings in seven out of 16 "key recommendations" and satisfactory ratings in nine. The Vatican bank, officially known as the Institute of Religious Works, has a troubled history including in the 1970s and 1980s with the collapse of Banco Ambrosiano, in which the Holy See was the main shareholder and which was accused of laundering money for the Sicilian mafia. The chairman of Banco Ambrosiano, Roberto Calvi -- dubbed "God's Banker" in the press -- was found hanging from Blackfriars Bridge in London in 1982 in a suspected murder by mobsters for which no one has ever been convicted. More recent investigations in Italy point to suspicions that the IRW, which handles the accounts of congregations and Vatican departments, is being used by organised crime. The Vatican, the world's smallest states, hopes its efforts will get it on to the Organisation of Economic Cooperation and Development's white list of financially virtuous countries.

PEGEON SOLD FOR WORLD RECORD PRICE

Catch me if you can! A lightning-fast Belgian racing pigeon named after Olympic gold-winning Jamaican sprinter Usain Bolt has been sold to a Chinese businessman for a world record price of USD 400,000. The Belgian pigeon 'Bolt' was sold on the auction site Pigeon Paradise. The owner, 66-year-old Leo Heremans from Vorselaar, Antwerp, sold his complete loft of 530 birds for USD 5.6 million at the auction, which was also a new record. It is expected that the new owner will use 'Bolt' for breeding more birds. The buyers of nine of the ten most expensive pigeons sold at the auction were from China or Taiwan. In 2011, a UK record was set for the price of a racing pigeon when one was sold for USD 24,147, also to a Chinese buyer. "Over the past years, a real hype has been created around the owner's pigeons, as they were doing so well in various competitions. This explains why they fetched so much money", Nikolaas Gijselbrecht of the pigeon site Pigeon Paradise was quoted by Expatica Belguim as saying. The previous record price for one single pigeon was set by "Dolce Vita", which was sold for about USD 323,917 to the Chinese businessman Hu Zhen Yu in 2012.

DATA SECURITY ON EMPLOYEES DEVICES A CHALLENGE

Bringing one's own device to the workplace may be aiding productivity, but it has also emerged as a major area of concern for CIOs as they grapple to secure enterprise data on such devices, a study by Cisco and the Data Security Council of India (DSCI) today said. The joint study titled 'Reinventing the Network in the Context of Security' found respondents saying that current generation of security capabilities implemented by companies can protect them from traditional threats. "However, these might not be enough to address the ever-evolving threat landscape. Therefore, companies need to re-assess their security ecosystem and evaluate capabilities of next-generation security if they want to implement BYOD (bring your own device) and mobility," Cisco India and SAARC National Manager (Borderless Networks Sales) Mahesh Gupta told reporters on a video conference. The study interviewed security leaders and CIOs (Chief Information Officers) from various industry verticals in the country and sought to understand the challenges of current security threats. The study found that organisations as well as employees are embracing mobility because of improved employee productivity and enhanced user experience. About 66 per cent of respondents said employees are encouraged to bring their own device to work and 44 per cent said employees are allowed to select and use a specific set of personally-owned devices. Also, 64 per cent respondents indicated that there has been a rapid increase in requests for authorising access to mobile devices. In this scenario, about 69 per cent respondents said managing policies and configuration of devices is a complex undertaking.

Xpress MONEY FREE INSURANCE COVER FOR GCC EXPATS

Xpress Money today said it has tied-up with Union Insurance in Gulf Co-operation Council (GCC) region to launch remittance industry's first free life insurance for Indian expats working in the region. "Designed specifically to suit the blue-collared population, this monthly renewable free life insurance scheme will be available to any person remitting money through Xpress Money," the company said in a statement. This insurance will provide a life insurance protection of AED 15,000 dirhams, including AED 5,000 dirhams of repatriation expenses of the mortal remains, it said. The life insurance benefit will be available to any person remitting money through Xpress Money for a period of one month, from the day the customer makes a transaction. Further, a remitter can avail this life insurance free of cost irrespective of the amount transacted, it said. "This scheme has been launched primarily to offer insurance cover to Indian expats from blue-collared category, residing and working in the GCC region, who generally work in hazardous conditions at construction sites or factories. "Further, this life insurance is also a critical value addition to our services and will create a new milestone in the remittance sphere," Xpress Money Vice President and Business Head Sudhesh Giriyan said. The life insurance cover will be offered to Xpress Money customers sending money to India from major markets like the UAE, Saudi Arabia, Oman, Qatar, Kuwait and Bahrain. "Over the next few months Xpress Money plans to offer this service to a wider range of customers and will add more corridors to the existing list, based on the response that the service receives from the target audience," the release said.

3 SOUTHERN FARMER'S GROUPS GET AWARDS

Four farmers' groups from Maharashtra, Andhra Pradesh, Kerala and Tamil Nadu will be given award by the Agriculture Ministry for their outstanding work in conservation of genetic resources. Protection of Plant Varieties and Farmers' Rights Authority (PPV&FR) has been giving 'Plant Genome Saviour Awards' carrying a cash prize of Rs 10 lakh since 2009. For the first time, this award has been conferred to a women self-group. "Deepaoli women's self help group from the state of Tamil Nadu is the first women help group that has been selected under the community category award," PPV&FR Joint Director R C Agrawal told reporters here today. Besides Deepaoli, PPV&FR will give awards to three other farming communities -- Seed Saver Farmers Group (Maharashtra), Sanjeevini Rural Development Society (Andhra Pradesh) and Akampadam Chimpachala Punchakkadu Padasekhara Samithi (Kerala). In addition, 10 farmers will receive award and cash prize of Rs 1 lakh each. Fifteen farmers and farming communities will be given a citation to recognise their contribution. From last five years the PPV &FR is honouring the communities for conserving plant genetic resources.

WOMEN IN LEADERSHIP ROLE VERY LESS

There are not enough women in top positions in Indian companies even though nearly 90 per cent of women desire to take up leadership roles, says a survey. According to Randstad India's recent Workmonitor survey, 76 per cent of the survey respondents felt there are not enough women in top positions in their organisations, even as 89 per cent of women desire to take up leadership roles. In India, 80 per cent of respondents said there are more men than women in leadership positions. Moreover, the percentage of respondents in India who felt there are not enough women in top positions (76 per cent) is higher than in the rest of the world.
Commenting on the findings, Randstad India MD and CEO E Balaji said: "Gender diversity is a business imperative and there are proven studies to show that it results in good governance and growth of the company and its people."
Moreover, 91 per cent of Indian employees have indicated high leadership aspirations and a very narrow gap exists between leadership aspirations of men (92 per cent)and women (89 per cent). The survey further noted that 75 per cent of Indian workforce believe in quota to ensure companies promote more women to leadership positions, but experts have a different opinion.
"It is interesting to note that Indian employees have indicated a preference for quota to promote women to leadership positions. However, we need to understand that a quota may trigger the initiative, but it may not help in building a strong talent pool or may not be sustainable," Balaji said. Companies should have a progressive HR policy and create a conducive environment and policies for women to reach leadership positions, he added.

FII'S BID FOR 10000 CRORES GOVERNMENT BONDS

Showing strong interest in the Indian debt market, foreign investors have put in bids worth over Rs 10,000 crore to buy government bonds, bidding nearly twice the amount of the securities in a Sebi-conducted auction. The one-day auction was held on the National Stock Exchange platform yesterday for grant of investment limits to FIIs, for government debt securities worth Rs 5,533 crore, but the bids received by FIIs (foreign institutional investors) totalled as much as Rs 10,146 crore. A total of 68 FIIs had participated in the auction, although the number of successful bid stood at 26. The robust interest in government bonds comes even after Standard & Poor's (S&P) had warned last week that it may downgrade India's sovereign rating to junk grade if the government fails to pursue reforms and check deterioration in fiscal and current account deficit in next 12-month.
The FIIs need to bid for investment limits in an auction conducted periodically by Sebi as per the available limits, pursuant to which they can invest in the bond market.
Sebi auction debt limits for FIIs is conducted on the 20th of every month.
Also, the government had relaxed ownership limits in Indian debt for FIIs in April. Last month, Sebi had conducted an auction for grant of permission to FIIs for investments worth up to Rs 29,108 crore in government bonds. Indian markets witnessed robust interest from FIIs last year and the momentum has continued so far. FIIs have pumped in Rs 28,148 crore since the beginning of 2013, after putting in Rs 34,988 crore in the debt securities last year.

GOLD & SILVER CONTINUE TO BE BEARISH

Silver today slid to the lowest since September 2010, while gold extended the longest slump in four years as investment holdings contracted and stocks rallied. Silver fell 8.6 per cent to USD 20.33 an ounce. Gold slid 1.5 per cent to USD 1,338.85 an ounce, the lowest since April 18. Prices were down for an eighth session, the worst run since March, 2009. Silver slumped 29 per cent this year, making it the worst- performing precious metal, on concern that industrial use isn’t strong enough at a time when demand is waning for a protection of wealth. Silver held in exchange-traded products dropped to a four-month low on May 17, while hedge funds increased bets on lower prices by the most since March in the week to May 14. Global equities reached the highest since June 2008.
An ounce of gold bought as many as 64.89 ounces of silver, the highest since August, 2010. Gold tumbled 19 per cent this year, falling into a bear market last month, as some investors lost faith in the metal as a store of value and equities rallied on confidence that the US economy is improving. US data showed last week consumer sentiment and an index of leading indicators topped estimates, while Federal Reserve Bank of San Francisco President John Williams said the central bank may begin to cut monthly bond purchases from as early as this summer. Silver, used in products from solar panels to batteries, also entered a bear market in April. Global photovoltaic installations rose at their slowest pace in at least six years in 2012. Holdings in silver-backed ETPs dropped 70.6 tonnes to 19,299.2 tonnes, the lowest since Jan. 16. Gold-backed ETP holdings fell 8.9 tonnes to 2,198.3 tonnes, the lowest since July, 2011.

PAY HIKE WOULD BE 12 %

It is good news for jobseekers as the hiring activity is likely to see an uptrend in the coming months and salaries are expected to rise 12 per cent across industries and functions this year, says staffing services major TeamLease. According to the TeamLease's Salary Primer for 2013, hiring will increase going forward and salaries too will see an upward movement across most industries. The study that covered staff working across 318 different job profiles, 15 industries and 8 functional domains in 9 major locations in India said, hiring has registered 11 per cent growth, and salaries are likely to witness 12 per cent increase across industries and functions.

"The headwinds of global change, blowing hot and cold have only so much as reshaped the contours of the Indian labour markets for the better," TeamLease Services Sr. V-P & Co-founder Sangeeta Lala said. The study further noted that with companies striking a balance between skills and increment, attrition rate also has been brought under control, emphasising a buoyant and mature job market. Moreover, the gap between permanent salaries and temporary salaries is now negligible. As many as 11 out of 15 industries are doing well to grow longevity of their staff, which in turn is containing attrition. The remaining four – agriculture and agrochemicals, BFSI, BPO and IT enabled services and FMCD – are characterised by profiles that attrite regardless of increment dole outs.
On both salary and increment payouts, specialisation is a clear winner. Niche, and high-skilled profiles such as network architect, SAP developer/ consultant and project lead are in greater demand than the generalised and traditionally well-paid profiles such as IT executive / IT manager and accountant, it says. "Salaries continue to rise – more for the deserving, employers are aggressively acquiring and rewarding the right skills and capabilities, talent migration is shaped by career enrichment opportunity as much as it is by market forces, and equity has prevailed," Lala added. In terms of salary growth rates, Mumbai and Delhi have trounced Bangalore. Meanwhile, Pune curried favour with substantial salary payouts to niche profiles such as SAP Developer and specialised domains such as Engineering, the study added.

SEPARATE RULES FOR FORIEGN ENTITIES

Amid a growing number of brokerage firms, hedge funds and other market intermediaries from abroad soliciting business from HNIs and other investors in India, Sebi is considering introducing a separate set of rules for such foreign entities. The new set of rules would ensure that the intermediaries working in foreign markets maintain the high levels of compliance, as required from the Indian market entities, while dealing with the investors in India, sources said. Besides, the new norms would also help create a new avenue for Indian investors by way of facilitating their exposure to the overseas markets while safeguarding them from the scrupulous entities promising them high returns abroad without any compliance requirements, they added. There are concerns that some investors might be at a disadvantageous position in the event of any disagreement with the foreign market intermediaries servicing them in overseas markets, if specific regulations are not there to establish Sebi's jurisdiction in these matters. "In order to enhance the confidence of investors, it is necessary that all the intermediaries, including the foreign entities, maintain high levels of compliance with the stipulated norms," a senior official said. "This is the reason that Sebi is examining the introduction of regulatory framework for foreign intermediaries soliciting business from investors in India," he added. The regulations would help protect the interest of investors, while also promoting the development of securities market, he said. The Securities and Exchange Board of India (Sebi) has already been taking steps to attract foreign investors from a larger number countries to the Indian capital markets, while the new norms would also help the Indian invest in overseas markets through a proper regulatory framework. Sebi has already signed bilateral MoUs with counterparts in various countries and many more such agreements are being considered for monitoring and promotion of cross-border flow of investments between different markets. Sebi has also been requesting the market regulators across various countries to allow the Indian market intermediaries operating in their jurisdictions to solicit business from interested Qualified Foreign Investors (QFIs) at those places. Foreign investors are allowed to invest directly through QFI route in stocks, mutual funds and corporate bonds through demat accounts opened with SEBI-registered Depository Participants, after meeting KYC (Know Your Client) norms applicable in the Indian markets. However, certain restrictions imposed by Sebi's counterparts in some countries make it difficult for the entities in those jurisdictions to invest in India through the QFI route. In order to remove these bottlenecks, Sebi has been working on signing of MoUs with regulators in other countries.

MF'S UPBEAT ON INDIAN MARKET

Mutual funds pumped Rs 4.74 lakh crore into the debt market in 2012-13, making it their biggest investment in the last 12 years. The financial year ended March 31, 2013 also marked the 12th consecutive year of net inflows by mutual funds (MFs) into the debt market.
As per the latest data compiled by market regulator Sebi, the net investment by MFs in the debt market during 2012-13 stood at Rs 4,73,460 crore -- which is the highest net inflow for a single fiscal since 2000-01, when funds had made investment worth Rs 50,235 crore.
The data for funds' investment into the debt market are not available before 2000-01. During 2011-12, MFs had invested Rs 3.35 lakh crore in debt-oriented schemes. According to market participants, funds houses have poured most of the money in debt-oriented schemes because of the better returns offered by such schemes as compared to fixed deposits in banks. Another reason for investing in debt schemes was that lower-risk associated with it than equity funds.
On the contrary, mutual funds took a bearish stance on the stock market during 2012-13 with an outflow of nearly Rs 23,0000 crore. Besides, this was the fourth consecutive year of net outflow by MFs from the equities.
The huge sell-off from the equities during the year coincided with a rise of about 8 per cent in the market benchmark Sensex. Since 2000-01, mutual funds have made a cumulative net investment of over Rs 20 lakh crore in the debt market, while they pulled out a net amount of Rs 81,663 crore from the equities during this period.
At the end of March, there were a total of 1,294 schemes under mutual funds, of which 857 schemes (66 per cent of the overall schemes) were income/debt oriented while 347 schemes (27 per cent of total schemes) were growth/equity related. Besides, assets under management in the debt segment stood at Rs 4.9 lakh crore at the end of March 31, 2013, while it was Rs 1.79 lakh crore for the debt.

MAURITIUS TO ATTRACT FILM INDUSTRY

Showcasing its scenic natural beauty comprising beaches, mountains and plains coupled with modern architecture, Mauritius has launched a 30 per cent expense refund scheme for film producers looking to shoot their films here in this island nation. The government representatives are particularly targetting the film makers from India, given the historic connect between the two countries and also the popularity of Indian films here in the country. Under the scheme, the film makers would get 30 per cent refund on all the expenses incurred for shooting of their projects in Mauritius. Besides movies, TV serials and commercials would also be eligible for this rebate. A few big names like Yashraj Films have already agreed to shoot their upcoming films here once they get the right script to be shot in this country and more are likely to join in, the officials from the government's investment promotion agency, the Board of Investment, said. Besides, three films are ready to begin shooting under the new rebate scheme. These include one Indian venture, a Punjabi film, they added. The Mauritius government had presented its vision for a film industry in its 2012 Budget, wherein provision was made for the development of Mauritius as a film-making destination for film-shooting, animation and post-production activities. Consequently in February 2012, the government launched a Pilot Rebate Scheme at 25 per cent of Qualifying Production Expenditures (QPEs) with the objective to attract both local and international film producers in Mauritius. These QPEs include transport, accommodation, local manpower, catering, the renting of equipment and location in Mauritius. With a view to attract further foreign film producers and to differentiate with other film producing locations in the region, the government has now increased the rebate from 25 per cent to 30 per cent on qualified production expenditures in its national budget 2013. The high-end TV commercials and documentaries would also be eligible for the scheme. To be eligible for the scheme, the film company should be either registered in Mauritius or, alternately, a film production firm can use the services of a locally registered producer. However, shareholding can be 100 per cent foreign. The first Indian film shot in Mauritius was Sanjay Khan's "Chandi Sona" way back in 1970s, while the recent bollywood movies shot here include Go Goa Gone, FALTU, Chasme Baddoor, Break Ke Baad, Josh, No Entry, Kidnap, Phir Se, Kya Yehi Pyar Hai and Sorry Bhai. Besides, blockbusters like 'Souten' in 1980s, Amitabh Bachhan-starrer Hum and Karan Johar's 'Kuch Kuch Hota Hein' in late 90s were also shot here. Indian movies are as such very popular in Mauritius, which is often referred to as 'Mini India' given vast similarities in the culture and the people of Indian origin comprising of a huge majority of this small country's population of about 1.3 million people.

GOLD SEE THE WORST SLUMP

Gold today fell for a seventh day in the worst slump since March 2009 as exchange-traded product holdings shrank. A strong dollar and a US Federal Reserve policy maker said that stimulus may be reduced within months, further influenced trading in dollar-priced gold. Gold fell 0.7 per cent to 1,376.69 dollar an ounce. Prices reached 1,369.85 dollar yesterday, the lowest since April 18, and are down 4.9 per cent this week.
Silver also fell 0.9 per cent to 22.48 dollar an ounce, set for a 5.8 per cent weekly slide.
Gold slid 18 per cent this year, falling into a bear market in mid-April, as some investors lost faith in the metal as a store of value and equities rallied on mounting confidence the US economy is improving. The dollar traded near the highest level since July versus six major currencies as Fed Bank of San Francisco President John Williams said the central bank may begin to taper off monthly bond purchases as early as this summer. Gold ETP assets fell every week since February. Holdings in exchange-traded products dropped 7.1 metric tons to 2,207.1 tons, the lowest since July 2011. Assets slipped 16 per cent this year.
Filings showed Soros Fund Management and BlackRock were among funds that cut stakes in SPDR Gold Trust, the biggest gold ETP, in the first quarter.

RAREST DIAMOND ON SALE

Rio Tinto today said it was putting up for sale the biggest "red" diamond ever produced by its Australian mine amid an "explosion" in demand from Asia for the rare pink-hued stones. The Argyle Phoenix, a 1.56 carat gem, is one of three red diamonds on offer at the annual Argyle Pink Diamonds Tender -- the first time in the 30-year history of the exclusive sale that it has included three red stones. "This is the largest red that has ever come from the Argyle diamond mine," Argyle Pink Diamonds manager Josephine Johnson told AFP as she held the stone. "Never seen before, likely never seen again. "The diamond world will be talking about this diamond for the next few months intensely. And there will be lots of discussion about the rarity of it, the value of it." The 2013 pink diamond tender comprises 64 diamonds, including 58 pink stones, three blue ones and the three fancy reds. Such jewels routinely fetch USD 1-2 million a carat. As a basic rule of thumb, a pink diamond is worth about 50 times more than a white diamond. After previews in Sydney, New York and Tokyo, there will be tender viewings in Hong Kong and Perth, to allow clients and experts to see the gems and make offers for individual stones. "The tender every year has great interest -- when you think there's only 60 stones each year, that's about 12 grams of diamond weight -- we tour it around the world because each one is like selling a Picasso," Johnson said. "Each one is unique. They will find different markets. "With a red diamond the colour itself is extraordinary, but what really transcends the appeal of the colour is just the outrageous rarity of something like this." The Argyle mine in Western Australia produces virtually the entire world's supply of pink diamonds, with the red seen as the pinnacle of the colour scale. It is not known how the diamonds acquire their pink tinge but it is thought to come from a molecular structure distortion as the jewel forms in the earth's crust or makes its way to the surface. Japan is the largest consumer of pink diamonds, with the lighter "Cherry Blossom" shades in strong demand, but Johnson said Argyle diamonds were growing in popularity in other markets. "There's an explosion of interest in China and India. We're certainly seeing that in the rare diamond world," she said. "I am quite surprised at how quickly they have moved from a desire for large, white clean goods to an appreciation for the value of rarity and fancy coloured diamonds."

CHIDAMBARAM VISITS CROSSRAIL PROJECT

Finance Minister P Chidambaram today donned a hard hat as he visited a construction site of the new Crossrail project in east London along with his British counterpart George Osborne. Wearing a orange colour construction worker suit, Chidambaram was shown around the site by Osborne. Crossrail is a new railway across London linking Maidenhead and Heathrow in the west with Shenfield and Abbey Wood in the east. The Crossrail would provide direct services between Canary Wharf, the City, the West End and Heathrow Airport.

OSBORNE PRIASE CHIDAMBARAM

Finance Minister P Chidambaram's reform push to revive Indian economy and restore investor confidence was today lauded by British Chancellor of the Exchequer George Osborne, who said he has done a great job. "When it comes to India, I think Mr Chidambaram has done a great job at telling and showing the world that India is open for business," Osborne told select Indian journalists after his meeting with the Finance Minister. Giving a resounding thumbs up to India's reform initiatives, Osborne said: "I think people had some questions a year or two ago but Mr Chidambaram has settled those doubts and the reforms he has proposed – the retail reforms, pension bill, among others – are a real sign of India's commitment to wanting to trade with the world. I think he has single handedly made a huge contribution and we are honoured that we are able to host him today". Since taking office last July, Finance Minister P Chidambaram has championed reforms and hit the road to woo investors in Asia, Europe and North America. Chidambaram donned a hard hat during a visit to a new Crossrail station project in east London. He was shown around the upcoming mega high-frequency railway project by Osborne, who gave a resounding thumbs up to India's reform initiatives. The Indian Finance Minister is on a three-nation tour to UK, France and Qatar to sell India's growth story and attract foreign investments. The meeting of the two finance ministers followed Chidambaram's closed-door meetings with potential British investors into India.

EPF CONRTIBUTORS CAN OPT THIS SCHEME

Firms can now ensure higher group insurance of Rs 1.32 lakh for each employee by opting for the Edelweiss Tokio Life-Group Life Protection in lieu of EDLI scheme provided by EPFO. The Employees' Provident Fund Organisation (EPFO) has engaged the Edelweiss Tokio Life Insurance to provide this group term insurance plan in lieu of Employees' Deposit Linked Insurance (EDLI) Scheme 1976. Under the existing scheme, an EPFO subscriber gets insurance cover of up to Rs one lakh before superannuation. According to a circular issued by EPFO to its field offices, all those employers who would opt for the "Edelweiss Tokio Life-Group Life Protection" would be given exemption from the EDLI scheme 1976. Employers contribute 0.5 per cent of basic pay of an employee as insurance premium to the EDLI scheme every month. The benefit under the scheme is given on the basis of the provident fund balance in the subscriber's account. The subscriber gets the benefit equivalent to the PF account balance if the balance is up to Rs 50,000. But if the balance exceeds Rs 50,000, the benefit is the account balance plus 40 per cent of of balance, subject to maximum of Rs one lakh. The maximum benefit under the scheme was enhanced from Rs 60,000 to Rs one lakh about three years ago in 2010. According to the circular, the EPFO found that the benefits under the Edelweiss Tokio Life-Group Life Protection plan are better than those under the EDLI Scheme 1976.

BSE TIEUP WITH FRANKFURT SCHOOL

BSE Institute, part of leading bourse BSE, has entered into a collaboration with Frankfurt School of Finance & Management for offering masters programme in finance.The two-year MSc Finance programme, that offers an opportunity for students to study in India as well as Germany, would have four semesters.
The programme would begin in September and admission forms have to be submitted by end of July, BSE Institute said in a statement today. While the first semester would be in Mumbai, the remaining ones would be taught at Frankfurt School of Finance & Management in Germany. "This programme gives the student a unique opportunity to gain an in-depth understanding of finance and a truly global perspective by learning and experiencing financial products, services and markets in Asian and European context," said Ambarish Datta, MD & CEO, BSE Institute.
Students would also be eligible to apply for scholarships, that would pay for about 20 per cent of the total course fee. "MSc in Finance acknowledges and actively incorporates an international dimension towards the study of finance," said Udo Steffens, President and CEO, Frankfurt School of Finance & Management.

PUT & CALL OPTION IN SHARE PURCHASE PACTS

Foreign investment in Indian firms is all set to get a boost as government has decided to move ahead with a proposal to allow "put" and "call" options in share purchase agreements to permit listed companies to buy or sell equity at a predetermined price in future.Under the Securities Contracts (Regulations) Act (SCRA), put and call options are treated as derivatives and are not permitted outside stock exchanges. The unlisted companies, however, can go for put and call options. "Strategic investors as well as private equity funds will benefit from the decision," said Bhavin Shah, partner KPMG India, while commenting on the decision of the Law Ministry to approve the proposal which has been pending for the past several months. According to Avinash Gupta, Leader, Financial Advisory Services, Deloitte India "this will definitely create a positive sentiment among investors... We will have to wait for notification to see the finer points". The proposal to permit put and call options in the share purchase agreement was cleared by Telecom Minister Kapil Sibal within a day of his assuming additional charge of the Law Ministry. The proposal will come into force after approval by Finance Ministry and Securities and Exchange Board of India (Sebi).
Sibal told reporters that he cleared the proposal along with with Finance Ministry's request for conciliation of tax dispute with British telecom giant Vodafone. "Put" option gives shareholder the right to sell a certain amount of shares at a specific price and within a given time-frame. In "call" option, the buyer has the right to purchase specific amount of shares at a certain price and specified time. The Law Ministry's nod to the proposal comes at a time when the government takes steps to promote investments. Finance Minister P Chidambaram, who is travelling the world to sell India's growth story, has been assuring the investors about India's commitment to economic reforms. Once approved, Shah said, "put and call options become enforceable contracts outside exchanges enabling the companies to restructure merger and acquisition deals to suit the their requirements." In view of the ambiguity, investors have been demanding clarity over the issue with a view to facilitating merger and acquisition operations. In recent times, there have been issues on put and call options in share purchase agreements related to some mega deals including United Spirits-Diageo and Cairn-Vedanta.
The ambiguity over put and call options is also believed to be adversely impacting overall investor sentiment. According to Gupta, the clarification would encourage conservative investors to incorporate put and call options as part of the share purchase agreements with regard to listed companies.

BORIS BECKER LOOKS AT INDIAN MARKET

After conquering the tennis world during his heydays, Boris Becker is training his eyes on India as a businessman to tap the country's vast potential in the area of sports academy and fashion items.The man, who took the tennis world by storm by winning the coveted Wimbledon title in 1985 at the age of 17, is looking to set up a Becker Private Office in Mumbai by the second half of this year in association with a local partner. "India is no longer an emerging country. It has arrived and there is a huge potential. We are working on a few projects and by the fall of this year, we will have Becker Private Office in Mumbai," Becker said here.

Based in London, Becker Private Office LLP is the company that looks after his varied business interests. When asked what were the business areas he is looking in India, he said: "I have a range of business interests, from cars to perfumes; from tennis equipment to clothing and sports centres. Setting up of sports centre is definitely on the agenda." He did not share the details of his business plans as also the identity of the local partner.
Associated with German luxury car maker Mercedes Benz as global brand ambassador, Becker said he is also looking forward to promoting the company's products in India to leverage on his popularity here. "I have been in India before but this is the first time I am here with Mercedes Benz. I have been associated with the company for 17 years. My popularity here is good, so with our association, I want the brand to be successful," Becker said.
While he was the star attraction at the launch of Mercedes Benz GL-Class sports utility vehicle, the former tennis star said like he has done in other parts of the world, he is looking to promote the auto major's other range of products in India as well.

SENSEX POLEVAULTS 490 POINTS

Markets were in a jubilant mood today with BSE Sensex zooming 490 points to close at 28-month high of 20,200 and NSE Nifty soaring over 150 points to 6,100- level on buying in realty, banks and auto shares after RBI's "happy" remark on falling inflation fuelled rate cut hopes. 

 Investor wealth, as measured by market capitalisation, surged by a staggering Rs 1.30 lakh crore as three stocks rose for fall of every two. This more than recovers Rs 1 lakh crore that was wiped off on across-the-board selling on Monday. The Bombay Stock Exchange 30-share barometer today resumed higher and gradually rose to settle at 20,212.96, a rise of 490.67 points or 2.49 per cent. Previously, it had concluded at 20,301.10 on January 5, 2011. Today's gain is the highest in percentage terms since June 2012. NSE Nifty index jumped by 151.35 points or 2.52 per cent to end at 6,146.75. Similarly, MCX-SX flagship index SX40 closed 245.6 points, or 2.10 per cent, higher at 11,925.14. "We certainly will take note of the softening of inflation and the external payments situation in the next mid-quarter policy statement on June 17," RBI Governor D Subbarao said in Frankfurt. He said, he was happy to see that inflation has come down to below 5 per cent.

DON'T STAPLE CURRENCY NOTES

The Reserve Bank has directed banks to do away with stapling of note packets and issue only clean currency notes to the public. "...banks should do away with stapling of any note packet and instead secure note packets with paper bands and should sort notes into re-issuables and non-issuables, and issue only clean notes to public," it said in a notification.
It also asked banks to stop writing of any kind on the watermark window of bank notes.
Reiterating its clean note policy, RBI said instances of certain branches of banks continuing to follow old practices such as stapling, writing number of note pieces in loose packets on watermark window of notes disfiguring the watermark impression and rendering it difficult for easy recognition have come to its notice. It also said that certain bank branches do not sort notes into re-issuables and non-issuables, and issue soiled notes to public. "Such practices are against the 'Clean Note Policy' of Reserve Bank of India," it said.
The objective of the RBI's Clean Note Policy is to give the citizens good quality currency notes and coins, while the soiled notes are withdrawn out of circulation. According to RBI data, on an average, one out of five paper notes in circulation (over 20 per cent) gets disposed of every year after getting soiled and the number of such soiled currency bills stood at over 13 billion units during the fiscal ended March 31, 2012. RBI will soon run a trial pilot project for plastic or polymer currency notes with a view to increase the shelf-life of notes.

NSE GOLD ETF TRADING @ 691 CRORES

Registering a significant increase, gold ETFs worth Rs 691 crore were traded on the National Stock Exchange on the occasion of Akshaya Tritiya today. Trading in gold Exchange Traded Funds (ETFs) jumped nearly 14 per cent to Rs 691 crore on the leading bourse. Last year on Akshya Tritiya, the value stood at Rs 608 crore. "The number of units of gold ETF traded today were 26,98,610, an increase of more than 14 per cent from the number of units traded last year on Akshaya Tritiya, when 23,60,000 units were traded," NSE said in a statement. NSE had extended trading time for gold ETFs till 7 pm. "The turnover of Gold ETFs on the NSE platform touched Rs 926 crore in April 2013 which was 3.2 times the turnover in March 2013 at Rs 284 crore," it said. In the last few years, trading volumes in gold ETFs have witnessed consistent growth especially with good participation from retail investors on auspicious days. Akshaya Tritiya is considered an auspicious occasion to buy gold.

GOLD SLIPS BELOW 27K...NO IMPACT OF AKSHYA TRITIYA

) Akshaya Tritiya, the biggest gold buying festival, failed to trigger any buying frenzy as the yellow metal plunged below the important Rs 27,000 per 10 gm level on the domestic bullion market today. The shiny metal came under frantic unwinding from stockists and speculators against the backdrop ongoing sell- off in global markets. In contrast, silver gained modestly, attracting some retail demand amid good industrial off-take. Standard gold of 99.5 per cent purity tanked by Rs 390 to conclude at Rs 26,985 per 10 gm from Friday's opening level of Rs 27,375. Pure gold of 99.9 per cent purity slumped by Rs 370 to end at Rs 27,130 per 10 gm from Rs 27,500. Silver ready (.999 fineness), however, rose by Rs 125 per kg to finish at Rs 45,915 compared to Friday's opening level of Rs 45,790. Surprisingly, the recent drop in gold prices to multi-year lows failed to enthuse investors as sentiments took a beating on apprehension of further downside risk despite the ongoing wedding season, seen as a strong consumption period. Most buyers are waiting on the sideline for more price correction after the auspicious occasion of Akshaya Tritiya, a bullion trader said. Meanwhile, trading resumed today at the bullion hub here after a two-day strike in protest against the newly introduced local body tax (LBT) in Maharashtra. Globally, gold plummeted to touch two-week lows on back of strong dollar valuations following a string of strong US macroeconomic data amid heightened speculation the Federal Reserve will wind down its USD 85 billion bond-buying plan. In London, spot gold was trading low at USD 1,435.76 an ounce in early hours.

IMPORTS DOESN'T COME DOWN

) India's gold imports are likely to exceed last year's level to around 900 tonnes in the current calendar year on higher demand despite government curbs on its shipments to rein in current account deficit, a top official of World Gold Council said today.
Last year, India -- the world's largest consumer -- imported 860 tonnes of the precious metal, while demand stood at 864 tonnes in the same year.
"Looking at the trend in the initial 4-5 months of this year, we expect gold demand and imports to be higher than the last year at around 900 tonnes," World Gold Council (WGC) India Managing Director Somasundaram PR told PTI.
The WGC had projected gold demand at 865-965 tonnes for 2013 calendar year. However, it is expected to be on the higher side of the band considering the demand trend in the first few months of the year, he said. Domestic demand has increased since the prices have fallen significantly in the last one month, he added. Prices in the national capital has come down from the peak Rs 32,975 per ten grams in November 2012 to Rs 27,520 per ten gram now. Noting that gold still has value, Somasundaram advised that investors should park some money in gold. Asked if RBI curbs on gold imports via banks will affect domestic demand, he said Indians buy gold as an investment asset, while the government treats it as an expenditure.
"Any attempt to curb import will activate unauthorised channel," he noted. To rein in current account deficit, RBI today restricted the import of gold on consignment basis by banks, only to meet the genuine needs of exporters of gold jewellery.   

"MAY"HEM IN MARKETS:

There was blood-bath in markets today as a wave of selling, triggered by a slew a factors like profit-booking and ballooning trade deficit, shaved over 430 points off Sensex -- its biggest fall in 14 months -- to end at one-week low, leaving investors poorer by Rs 1 lakh crore. Ignoring a fall in retail inflation to 9.4 per cent, April trade deficit data at USD 17.8 billion weighed on the stock market as the BSE benchmark ended 430.65 points lower, or 2.14 per cent, at 19,691.67. This is the biggest fall since Sensex lost nearly 478 points on February 27, 2012. Selling was seen across-the-spectrum as all 13 sectoral indices closed with losses in 0.94-3.17 per cent range with FMCG, capital goods, metal and auto shares leading downslide. All 30 Sensex-based scrips closed with sharp to moderate losses with ITC suffering over 5 per cent drop after recent rally. L&T, TCS, ICICI Bank, Tata Motors, RIL and HDFC Bank were among major losers. Bharti Airtel and Tata Steel fell by over 4 per cent each. "Poor trade deficit data sparked off worries on the CAD front. A weak rupee that went close to 55-level also hit sentiments. Political situation is sensitive after two ministers resigned. Stocks had gone up substantially recently and so some correction was in the offing," said Gautam Sinha Roy, VP – Equities, Motilal Oswal Securities Ltd. Similarly, the broad-based 50-issue CNX Nifty of the NSE also slumped by 126.80 points, or 2.08 per cent, to end below 6K-mark at 5,980.45. The MCX-SX flagship index SX40 closed 228.64 points, or 1.92 per cent, lower at 11,662.34 points. Market breadth was negative as 1,542 stocks closed down while just 808 finished higher. BSE market capitalisation fell by over Rs 1 lakh crore to Rs 67.03 lakh crore today. Weakness in global markets also kept the market subdued. Globally, Asian stock indices closed mixed with downward bias with sentiment hit by selling in commodities triggered by a strong dollar. European markets were trading weak in their early trade.

RAREST FEAT...MULTI STORIED BUILDING SHIFTED 50 ft AWAY

Haryana-based TDBD Engineering Works, house lifting and shifting service providers today said it has successfully shifted a two-storeyed building in the city by 50 feet, claimed to the first of its kind in the country. Though the company has shifted more than 300 buildings in the last few years, this was the first time a multi-storeyed building, with first floor, weighing 400 tonnes, being shifted, Sushil Sisodia, Managing Director, TDBD, told reporters at the site.
Since the owner, M Thangavelu wanted the house to be moved 50 feet backward to build another structure, the company, which have shifted many buildings, weighing 150 tonnes, with the foundation, took up the challenge and used 300 rollers and as many jacks in the process, Sisodia said.The shifting would cost around Rs 18 lakh to Rs 20 lakh, he said.
On problems being faced to shift such old building, Chief Engineer Gurpreet Singh said that the greatest challenge of this seven-room building, was when some of the walls were not in straight line."We have to rework on the railing based on the wall structures," he said.

MOBILES OUTNUMBER PEOPLE BY NEXT YEAR

M-powering! Mobile phone subscriptions will outnumber the world population by the end of next year, according to a UN agency report. According to the International Telecoms Union prediction, the cell phone subscriptions will pass a whopping seven billion early in 2014. Currently, there are 6.8 billion mobile phone subscriptions, while the population stands at 7.1 billion people in the world, 'BBC News' reported. More than a third of the global population are online, the ITU World in 2013 report also found. The Commonwealth of Independent States, the alliance of countries formerly in the Soviet Union, is believed to have the highest mobile penetration with 1.7 subscriptions for every person, the report said. Africa has the least, with 63 subscriptions per 100 inhabitants, it said. "Every day we are moving closer to having almost as many mobile cellular subscriptions as people on Earth," said Brahima Sanou, director of the ITU Telecommunication Development Bureau. "The mobile revolution is 'm-powering' people in developing countries by delivering ICT applications in education, health, government, banking, environment and business," said Sanou. The report also found that 2.7 billion people, almost 40 per cent of the world's population, are online. Europe has the highest penetration (75 per cent), followed by the Americas (61 per cent). Asia has 32 per cent of its population online, Africa 16 per cent.

1 BAD HIRING COSTS 20 LAKHS

When it comes to companies making a wrong choice in hiring an employee, India figures among the top-four countries worldwide and the cost of one single bad recruitment could be over Rs 20 lakh, says a survey. The chances of companies taking a bad hiring decision is highest in Russia, followed by Brazil, China and India at the top-four positions, while the US is at the fifth. As per the study conducted by global human resource consultancy CareerBuilder, 88 per cent companies in Russia said they were affected by bad hiring last year, followed by 87 per cent in Brazil and China and 84 per cent in India. The percentage of such companies in the US was much lower at 66 per cent. The study further said that three in every ten Indian companies (29 per cent) reported that a single bad hire -- someone who turned out not to be a good fit for the job or did not perform well -- cost the company more than Rs 20 lakh (USD 37,150) on an average. In comparison, 27 per cent of US employers reported that a single bad hire costs them more than USD 50,000. As per the global study, hiring the wrong person can have serious implications for companies and more than half of employers in each of the ten largest world economies said a bad hire has negatively impacted their business. This was in terms of a significant loss in revenue or productivity or challenges with employee morale and client relations. "When you add up missed sales opportunities, strained client and employee relations, potential legal issues and resources to hire and train candidates, the cost can be considerable," said CareerBuilder CEO Matt Ferguson. "Employers are taking longer to extend offers post-recession as they assess whether a candidate really is the best fit for the job and their company culture," he added. According to the survey, BRIC countries were the most likely to report being affected by a bad hire last year. In terms of loss of productivity due to a bad hire, China was at the top (57 per cent), followed by Russia (45 per cent) and India (42 per cent) in the top three. China was on top in terms of negative impact of bad hiring on client relations, as well as for adverse impact on sales, while India was at second place on both these metrics. Brazil saw the worst impact on recruitment and training costs because of bad hiring. It was followed by the US, India, China and Russia in this regard. However, India fared relatively better at fifth place after China, US, Germany and Japan in terms of negative impact of a bad hire on the morale of other employees. The survey was conducted online within the US, Brazil, China, France, Germany, India, Italy, Japan, Russia and the UK by research firm Harris Interactive on behalf of CareerBuilder among 400 to 2,611 hiring managers and HR professionals in each country.

DRIVERLESS CAR IN TWO DECADES

Driverless cars may hit Britain's roads in 20 years with a UK minister pushing for a change in law to make it a reality. David Willetts, minister for universities and science, has revealed that he has persuaded the UK Department for Transport to relax regulations to allow an Oxford University team to test its self-drive vehicle on public roads. The move is expected to pave the way for such cars to hit the roads within 20 years. "In California they have a regulatory regime in place that permits these cars to operate on public roads. The Department of Transport is now going to introduce a regulatory regime that makes that possible here," Willetts told the 'Sunday Times'. 

The minister, who oversees technology policy, has tested Google's driverless car on the highways outside Palo Alto in California and wants British scientists to have the same freedom. The RobotCar project based at Oxford University uses a modified electric Nissan Leaf fitted with a combination of cameras and high-tech laser sensors. Via an onboard computer, these help to control everything from steering to direction-indicating. "Driverless cars will happen, they are an inevitability; much of the technology is already in existing vehicles," said Malcolm McCulloch at the RobotCar base – Oxford University’s department of engineering science. "The next stage is where the car drives a route it has navigated before under various conditions, and has learnt; that could be deployed within five years. The second stage is where the car navigates a route that has not been driven before, using shared vehicle data. This is probably 10 to 15 years away," he added. The Department of Transport, however, said that no final decision has yet been made on allowing driverless cars on public roads.