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My Journey on Path of E-Commerce: A Recollection

The effort here is not to deliberate on the History of Computers and or Internet, but since it turns out to be a brief but vital component of total deliberations if any is being made on providing or seeking or exchanging any product, service, information etc. using Internet as a medium.  Instead of starting the sentence “long long ago….”, like in many other field, here story starts with the set words “In very recent past….” .

The deregulation of Internet and it’s use for Commerce is recent as just four decades. Today it would not be wrong if one makes an inference that it happens to be largest market place. It has also succeeded in turning itself near to indispensable and a good number of people can not imagine their daily life in its absence. As a tool of exchanging information and thought, it has even left behind the devices like telephone, fax, mobile telephony etc. by miles. Even we have the examples, though of very recent nature, that few less popular national government, when faced by some kind of event which was called by media as uprising, made internet their first target to breakdown the communication flow taking place in citizens. The case of “EGYPT” and “LIBYA” are a burning and recent example of this.

Initially there was some sense of fear amongst the people who were stakeholders in business. These stakeholder can never alone be the Business Men, they also included the beside established business houses, the Entrepreneurs,  students of business, the academic and scholarly community dealing with issues related to the domain of business, the customers around whom business revolves, and certainly a few more individuals who comprise those who thought it to be fad and expected it to die an immature death.

Here, the stage is ripe for sharing few anecdotes especially Indian to give a practical understanding of how these developments moved from nearly nowhere to everywhere. Prior to starting on it, Helpman and Trajtenberg (1998) were of the opinion that “In any given era there typically exist a handful of technologies that play a far reaching role in widely fostering technical change and thereby bringing about sustained and pervasive productivity gains.” On the similar lines Norman (1999) said that “The goal is to move from current situation of complexity and frustration to one where technology serves human needs invisibly, unobtrusively: the human centered and customer centered way.”

Now coming to Anecdotes:

1. It was perhaps Year 2000 or 2001, when I happened to give entrance examination for pursuing Ph. D. Program at Indian Institute of Information Technology & Management, Gwalior, when it was still functioning in old building. Till then I was not aware that I would be lucky enough to make my career in academics, scholarly and research work, and also in transfer of technology to masses, though I wanted to do it.

They used to conduct a written test followed by interview for admitting research scholars. Luckily or otherwise, I cleared the written test to qualify for next stage, that was personal interview. There I was interested in pursuing my research in E- Commerce. That was also a time when an e-Commerce initiative with the help of internet initiated by Shoppers’ Stop had met a debacle. All through the interview while I was trying my best to convince them that e-Commerce was the very near future, the interview board was interested in making me believe that penetration of computer required for that would never happen in India and they topped their argument by quoting the example of debacle of Shoppers’ Stop. Besides it the board also wanted to convince me on importance of bandwidth and its importance for e-Commerce, suggesting me to work on it, as it was a must for success of the concept I was arguing, but then I was least interested as it was a work for a Technical Degree Holder and not my cup of tea with MBA preceded by ZBC. Ultimately we could not land on a common platform and it could be said that they rejected me or I myself worked to get rejected.

Nearly the same got repeated at NITIE Pawai Mumbai same year. I would elaborate on it next time when I get chance to further elaborate on it. Its late night and I plan to close writing at this moment. hope spelling mistakes if any would be pardoned.

 

Always Yours — As Usual —- Saurabh Singh

 

 

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Salient Features of Indian Union Budget 2011 – 2012

  1. IncomeTax exemption limit raised to Rs. 1.80 lakh from Rs. 1.60 lakh .
  2. Exemption for senior citizens raised to Rs. 2.5 lakh.
  3. Tax under women slab unchanged.
  4. Tax exemption raised to Rs. 5 lakh for senior citizens of 80 years.
  5. To increase service tax on air travel.
  6. Excise and customs duty proposals to result in the net gain of Rs. 7,300 crore.
  7. Export duty rates on iron ore unified and kept at 20% ad valorem.
  8. Basic customs duty on agricultural machinery reduced to 4.5% from 5%.
  9. Basic customs duty on raw silk reduced from 30 to 5 per cent.
  10. Excise and customs duty proposals to result in the net gain of Rs. 7,300 crore.
  11. Nominal one per cent central excise duty on 130 items entering the tax net. Basic food and fuel and precious stones, gold and silver jewellery will be exempted.
  12. Peak rate of customs duty maintained at 10% in view of the global economic situation.
  13. Customs duty exemptions for hybrid auto parts.
  14. Nominal one per cent central excise duty on 130 items entering the tax net. Basic food and fuel and precious stones, gold and silver jewellery will be exempted.
  15. Standard rate of central exercise duty maintained at 10%.
  16. Central government debt in proportion to GDP will be 44.2% in 2011-12.
  17. 20% export duty on all grades of iron ore.
  18. Basic customs duty reduced on certain textile products
  19. No change in service tax rate of 10%.
  20. No change in central excise duty.
  21. Plan to levy 1% on 130 consumer items.
  22. Revenue deficit fixed at 2.3 per cent in revised estimates of 2010—11 and 1.8 per cent in 2011—12.
  23. Total plan expenditure will go up 100 per cent in nominal terms in the next year.
  24. 15% tax on dividend for Indian cos from foreign unit.
  25. Direct Tax proposals result in expenditure of Rs. 11,500 cr.
  26. To reduce surcharge on domestic companies to 5% from 7.5%
  27. MAT rate hiked to 18.5% from 18%.
  28. MAT on developers in SEZs to be levied.
  29. Fiscal deficit revised to 5.1% from 5.5% for FY’11.
  30. Total expenditure raised by 13.4% at Rs. 12.57 lakh cr over budget estimates.
  31. Gross tax receipts estimated at 9.32 lakh cr for FY 2011-12.
  32. Bill to amend India Stamp Act soon.
  33. Budget allocation of Rs. 100 cr for Ladakh and Rs. 150 cr for Jammu for implementation of projects identified by taskforce.
  34. Old age pension to persons of over the age of 80 raised from Rs. 200 to Rs. 500
  35. Health allocation up by 20% to R 27,600 cr.
  36. Rs. 9- lakh ex-gratia for defence personnel for 100% disability fighting Left-wing extremism.
  37. To set up 15 more mega food parks.
  38. Remuneration of anganwadi workers raised from Rs. 1,500 to Rs. 3,000 per month, Helpers to get Rs. 1,500 from Rs. 750.
  39. Tax free bonds of Rs. 30,000 cr to be issued for infrastructure development. This will cover Warehousing Corporation, NHAI, IRFC and Hudco.
  40. Allocation under Rashtriya Krishi Vikas Yojana to be raised from Rs. 6,755 crore in the current year to Rs. 7,860 crore.
  41. Rs. 50 cr grant to Aligarh Muslim University centres in Murshidabad in West Bengal and Malappuram in Kerala.
  42. Rs. 200 cr for environmental remediation programme.
  43. Age for pension eligibility reduced from 65 years to 60 years under Indira Gandhi Yojana scheme.
  44. To move insurance, pension and banking bills in Parliament.
  45. Rs. 500-cr for National Development Fund.
  46. Rs. 400-cr as one-time grant for IIT-Kharagpur.
  47. Move to set up State Innovation Councils underway.
  48. Allocation to education sector raised to Rs. 52,000 cr.
  49. Scholarship scheme for SC/ST students in classes iX, X.
  50. Increase in allocation to higher education.
  51. Plan 17% increase in social sector spending.
  52. To introduce Food Security Bill.
  53. Tax free bonds of Rs. 30,000 cr to be issued for infrastructure development. This will cover Warehousing Corporation, NHAI, IRFC and Hudco.
  54. Fertiliser industry to be included under infrastructure category.
  55. New companies bill to be introduced.
  56. GoM to be set up to deal with corruption.
  57. Five-fold strategy to deal with black money.
  58. Mega cluster for leather products to be introduced.
  59. Existing interest subvention scheme on short term farm loans at 7 % interest to continue.
  60. Self-assessment in customs to be introduced.
  61. Credit flows to farmers raised from Rs. 3.75 lakh crore to Rs. 4.75 lakh crore.
  62. Constitution Amendment Bill for introduction of GST in this session.
  63. Goods and Services Tax Bill this year.
  64. Direct Taxes Code Bill likely to be passed by Parliament next financial year after getting Standing Committee report.
  65. Public Debt Management Agency Bill in the next fiscal.
  66. Indian mutual funds to get direct access to foreign markets; FIIs to be allowed to invest in MFs.
  67. To liberalise FDI policy further.
  68. To extend infra tax breaks to fertiliser sector.
  69. To set up microfinance equity fund.
  70. Government to move towards direct cash transfer of cash subsidy as regards kerosene, LPG and fertilisers from March 2012 for BPL in view of large diversion.
  71. 3% interest subvention to farmers who repay in time.
  72. Nabard capital base to be increased by infusing Rs. 10,000 cr.
  73. Rural housing fund increased to Rs. 3,000 cr.
  74. Banks asked to step up lending to agriculture.
  75. Allocation under Rashtriya Krishi Vikas Yojana to be raised from Rs. 6,755 crore in the current year to Rs. 7,860 crore.
  76. Budget proposes to raise housing loan limit from Rs. 20 lakh to Rs. 25 lakh for priority sector lending.
  77. Allocation for farm development hiked to Rs. 7,860 cr.
  78. Rs. 300 cr proposed to promote production of cereals.
  79. Indian micro-finance equity with SIDBI to be formed at Rs. 100 crore.
  80. Rs. 6,000 cr to be given to public sector banks to maintain capital-to-risk assets ratio norms.
  81. RBI to bring in new guidelines for banking licences.
  82. Aiming Fiscal deficit of 3% by fiscal 2014.
  83. Central electronic registry to reduce fraud cases.
  84. FII investment limit for infra corporate bonds hiked to $40 billion.
  85. Discussions on to further liberalise FDI policy.
  86. Preparation of GST rollout in final stages.
  87. Microfinance equity fund of Rs. 100 cr proposed.
  88. Govt committed to hold 51% in PSUs.
  89. Rs. 3,000 cr to Nabard for handloom societies.
  90. Women self-help group development fund to be set up.
  91. Direct transfer of subsidy for kerosene.
  92. Goods and Services Tax Bill to be introduced in Parliament this year.
  93. Direct Tax Code Bill likely to be passed by Parliament next financial year after getting Standing Committee report.
  94. Disinvestment target at Rs. 40,000 cr.
  95. Direct Tax Code from April 2012.
  96. SEBI-registered MFs to be allowed direct access to foreign funds.
  97. Expect RBI to moderate inflation.
  98. Public Debt Management Agency Bill to be introduced next financial year.
  99. Current account deficit and average inflation in 2011-12 likely to be less than current year.
  100. FDI policy review done in Sept 2010.
  101. Economic growth in 2011-12 likely to be 9 per cent.
  102. Admits large-scale diversion of kerosene.
  103. Introduction of DTC will be a watershed moment.
  104. Debt managment bill to be introduced.
  105. Constitutional Amendment Bill on GST to be introduced.
  106. Expect agri sector to grow at 5.4% in 2011.
  107. Growth in 2010-11 broad-based.
  108. Economy resilient to shocks.
  109. RBI measures will further moderate inflation.
  110. GDP estimated growth at 8.6% in real terms.
  111. New dynamism in rural economy.
  112. Core inflation in check.
  113. Current account deficit is at 2009-10 levels, and is a matter of concern.
  114. Huge difference in wholesale and retail prices not acceptable.
  115. Total food inflation down from 20.2 per cent last year to 9.3 per cent in Jan
  116. Revival in private investment should be sustainable.
  117. Service growing in double digits.
  118. Need to reconcile legitimate environmental concerns with developmental needs.
  119. Food Inflation has declined by half, but still a matter of concern.

Agribusiness

 

 

 

 

Always Yours — As Usual–Saurabh Singh

Union Budget 2011: The Wish List

Budget-2011-12Pranab Mukherjee ready to Present BudgetGovernments come and go. But their visions outlined in the annual fiscal planning (the Union Budget) have a long lasting impact on the economy. The Budget of 1992 was one such document. It was a threshold that set India on a superior economic growth path. The first Union Budget of the current decade also comes to meet several challenges. It should not just counter risks within and outside the economy. But it needs to also fortify India’s position amongst global heavyweights.

Consequently in the Budget 2011-12, emphasis should be on maintaining and even accelerating the pace of growth and employment. The ensuing budget is expected to take note of the current scenario and announce policies and reforms to support and form a suitable base for the economy to continue to grow at 8%+ levels. In general one can feel that the budget would be skewed towards investment rather than consumption. Agriculture & related activities would continue to be the focus area as inflation and food Agricultural-Sectorsecurity is high on the government agenda. Government would allocate higher amounts towards infrastructure (logistics, rural infrastructure and water management), education and technology to give a multiplier effect to the economy to sustain high GDP growth in the coming years.

The Union Budget 2011-12 might be a key from a policy stand point and may provide incremental direction to markets. There is an inherent value in India economy given the growth story and favorable demographics, but catalysts are required at macro level to deleverage the underlying value.

India was among the few countries in the world to implement a broad-based counter-cyclic policy package to respond to the negative fallout of the global slowdown. These policy actions has helped Indian Economy to clock a growth of 8.6% in FY11 (advance estimates). While rising strongly in the world economic order, India faces the most critical challenge of crossing the ‘double digit growth barrier’. Current macroeconomic challenges are manifold

1. Controlling inflation, including that for essential commodities,

2. Maintaining fiscal deficit amongst rising oil prices,

3. Absence of one-time revenues such as 3G, WiMax license fees,

4. Allocation & channelising investment in Infrastructure,

5. Domestic financial sector liquidity management with large government borrowing can potentially be a dampener for private investments,

6. Reducing current account deficit from current elevated levels,

7. Over and above, handling corruption issues.

The upcoming elections in some of the major states may prompt the government to continue to take some populist measures

Normal Expectations, on few Specific Fronts, from Upcoming Budget  are Deliberated Here Under

Higher short term capital gains tax for FIIs:

The volatility in Indian stock markets over the past six to nine months can to a large extent be attributed to fickle mindedness of the FIIs. Loose monetary policies in developed markets have not helped either. Hence, a stricter policy to curb short term capital gains earned with the hot money is in order. While the DTC has proposed to tax all FIIs, the current budget should lay a foundation for the same by hiking the taxes on short term gains.

Incentivise low income housing: Housing Sector

The construction sector is unlikely to have a very peaceful fiscal ahead. Low bank funding and high interest rates could stall projects and build up inventory in the sector. Allowing higher fiscal incentives on low income housing loans could address the problem of high cost for the houses as well as offer a solution to builders to increase sales.

Incentivise long term investment in equities:

Institutional investors such as insurance companies, PFs and mutual funds should be offered fiscal incentives on their schemes wherein investments are locked in domestic equities for 5 years and above. This could help draw more retail savings into equities for a longer term.

Money INR

Pool in private sector funds for infrastructure investments:

Floating SPVs that can pool in private funds for meeting the 12th and 13th Five year plan targets may be an ideal way to meet the funding gap. Especially given that the contribution from the private sector is seen going up from 30% in the Eleventh 5-Year Plan to 50% in the Twelfth Plan.

Decontrol of Urea Prices:

Where as Government seems to be planning to raise Urea Prices by 2 to 5 per cent in 2011 – 2012. De-canalization of Urea imports is also expected once it comes under Neutrient Based Scheme Regime. Perhaps the fertilizer industry expects Rs 50000 Crore in cash for Financial Year 2012 by way of subsidies. It would not be a great surprise if import and export restriction on Urea trade are lifted.

Deepen India’s corporate debt market:

Developing a vibrant corporate debt market is paramount to serving the long term funding needs of corporates. The Budget should initiate policies in this direction so that retail participation in corporate debt issuances becomes easier and more transparent . The debt papers also need to be rated to suit investors’ risk profiles.

Rejig subsidies and off balance sheet items:

An increase of 245%! This is exactly how much the cost of major subsidies has gone up in India in the last five years. And mind you, this does not even include oil. In CAGR terms, it amounts to a huge 28%. When one considers India’s nominal GDP growth rate of 14%-15%,Pair of the Budget Scissors it quickly becomes clear that such a growth in subsidy is not sustainable at all. Fortunately, the Government seems to have woken up to this fact. Hence, rather than trying to increase subsidies further, it is now looking to reduce pilferage in the system. As a big step towards the same, it has set up a task force to create a way to directly transfer cash to the ultimate beneficiaries of various subsidy schemes. We believe in addition to reducing indirect subsidies, investing more in warehouses and logistics could help keep the food prices in India under control to an extent.

Image

Always Yours — As Usual — Saurabh Singh

THE JASMINE REVOLUTION — Part – I

At times, few events, though not very often noticed, normally not even thought worth being covered by national media, but when the acts happen to be of SUPREME SACRIFICE or same order, change course of not alone history but geography too. The attempt is not to dub an act of self immolation as an act of bravery, and normally hundreds of cases of self immolation and attempts of self immolation get reported in media every year, besides lot many which even fail to find space in news media in nearly all the corners of the world which without fuelling in a minor change in governance.

The name “Mohamed Bouazizi” is not a famous or well known name even today, and thus indirectly gives an impression that history in due course of time may even forget to contain any record of this name for reference of future generations. The act of self immolation by this Tunisian Street Vendor to protest against the corruption is an apt example of helplessness being faced by common men, irrespective of him being a citizen, subject, at mercy of any dictator, fascist or Junta or probably any other form of Structure of Governance.

Strange are ways things are destined, much beyond human vision and imagination, it seems if  21st Century were a Century of Convergence of Scale for nearly every sphere of human related activities. A Century standing witness to Convergence of Communication Technology and Tools, Convergence of Economies of Nations, Convergence of Trade, Convergence of Financial Governance, and perhaps even Convergence of Revolutions against Governance Structures across various nations and probably the list continue…s, neither can it be covered in this deliberation nor will it be attempted.

Till a couple of months back, the individual of the day was busy in himself thinking that all the problems could happen and will happen with others only, aptly defined selfish by Adam Smith and the league, was thinking of governance all around the globe being cool, calm and pleasant except the places messed up by United States of America. Perhaps still the individuals will remain individuals and will rarely form a society or nation; as people aware of history know very well that even the phenomenon or concept of nation is a gift of as recent as nineteenth century.

Connecting back, it was morning of December 17, 2010 when Mohamed Bouazizi, a 26 years old street vendor of Tunisia immolated himself protesting against corruption, an event of the magnitude often not even noticed by world media, the Arab World has not remained the same as it was till hours before of this act on the same day. It has left whole geo-political area simmering and inhabitants rumbling.  It has initiated a chain reaction.

The chain reaction, that has already made twenty three years old rule of Zine El Abidine Ben Ali, (in power since 1987) now a chapter in history of Tunisia. It did not stop here itself. It perhaps turned a torchbearer for other nations of geopolitical area often called as Gulf (British call it as Middle East), or as the author calls it, the Middle West. It did not stop at Tunisia. The next link in chain turned out to be Egypt. In Egypt, the war hero of Egypt Israel War of 1973 that made Egypt a power centre in Middle West and one time air force officer Hosni Mubarak was shown door after his thirty year rule. To world it may look a silent transition made success by people of Egypt but sources say that at least 300 people lost their life and another 3000 suffered injuries. Reality about real causalities is not known due to initial crack down on media and still no real transition to any new form of governance taking place. It is probably still another Hosni Mubarak just individual may differ, as no real transition to any form of governance has taken place, but junta in control.

“The phenomenon being deliberated, as on date, has come to be known as SIDI BOUZID REVOLT in Arab World and as JASMINE REVOLUTION elsewhere.”

Similar turmoil, protests against governments in place, in numerous other nations of gulf is being seen and also the ruthlessness and lack of human emotions with which they are being suppressed and retaliated by various governments in place. It is the same story today in Algeria, Bahrain, Jordan, Libya and Yemen.

Always Yours — As Usual — Saurabh Singh

Egypt: Now without Hosni Mubarak in Control of Affairs– For Other Nations a Caveat Issued Against Facebook and Likes…..

A Brief Introduction to Hosni Mubarak & His Journey

Hosni Mubarak has ruled the country Egypt for 30 years, which by far is the most powerful in the Arab world. It all started on October 6, 1981. Egypt was shaken when its President Anwar Sadat was assassinated by right-wing Arab groups during a military parade before the world’s eyes. Mubarak, who was then the vice president, was wounded in the attack. Terrified he stood there and by the time stunned security police began firing back, killing two of the assassins, Sadat was already dying. Hosni Mubarak at World Economic Forum

Mubarak was a natural successor. He took control of the government on October 14, 1981 and has held it, by various means, ever since. While this is looked at as his first appearance on the global stage, one cannot overlook the crucial role he played in 1973.

He is still credited with winning the war that changed the course of Arab Israeli relations in October 1973, when he was Air Chief, under Sadat’s presidency. The victory over Israel brought him personal glory too.

Mubarak with son of Slain President Sadat

In April 1975, Mubarak was appointed as the vice president of the Egyptian republic and he loyally served Sadat’s policies. He became a popular representative of the President and had numerous meetings with foreign leaders.  Mubarak’s political significance as vice president can be seen from the fact that at a conversation held on June 23, 1975 between Egypt Foreign Minister Fahmy and United States Ambassador Hermann Eilts, Fahmy said to Eilts that “Mubarak is, for the time being at least, likely to be a regular participant in all sensitive meetings”. He advised the ambassador not to antagonise Mubarak, as he was Sadat’s personal choice.

Mubarak may be considered largely unpopular today, but as President, he allied with the West and an anchor of stability in the Middle East. Taking over as President, he moved quickly to crush an Islamic uprising and jailed over 2,500 members of militant Islamic groups engaging in violence. Mubarak retained most of Sadat’s foreign and domestic policies, and Sadat’s close ties to the United States. All the Arab states but three had criticised Egypt for the treaty with Israel, so Mubarak tried to rebuild relations with Jordan, Iraq, Saudi Arabia, and Palestine Liberation Organisation leader Yasir Arafat. It was Mubarak who encouraged Arafat to compromise and recognise Israel’s right to exist.Hosni Mubarak - the war Hero of 1973 Egypt Israel War

Throughout the 1980s Mubarak increased the production of affordable housing, clothing, furniture, and medicine. He also kept a close eye on his officials, firing ministers at the first hint of wrong-doing and fining members of Parliament for unnecessary absences. Egypt’s heavy dependence on US aid and her hopes for US pressure on Israel for a Palestinian settlement continued under Mubarak. He improved relations with the former Soviet Union. In 1987, Mubarak won election to a second six-year term. In 1989, eight years after Sadat’s assassination, Egypt was re-admitted as a full member the Arab League. Its membership was suspended after Sadat’s peace treaty with Israel, but Mubarak rebuilt the bridges.

Mubarak was angered over the 1990 Iraqi invasion of Kuwait. When the US was hunting for a military alliance to force Iraq out of Kuwait, Egypt’s President joined without hesitation. After the war, his reward was that America, the Arab states of the Persian Gulf, and Europe forgave Egypt around $14 billion of debt. He won America’s support and Egypt enjoyed massive amounts of military and economic aid over the last three decades.

The Wave of Change

However, as years went by Mubarak became more authoritarian. He throttled meaningful political evolution and curbed the freedom of expression. Plots to assassinate Mubarak had surfaced in 1992, 1993, and 1995 and he is known to have survived six assasination attempts. But Mubarak continued his tough stance. His crackdown led to charges against his government of torture, threats to the press, and other human rights abuses

Political corruption in the Mubarak administration rose dramatically. Such corruption has led to the imprisonment of political figures and young activists without trials, illegal undocumented hidden detention facilities and rejecting universities, mosques, newspapers staff members based on political inclination.
And all of this worsened in 2005. After increased domestic and international pressure for democratic reform in Egypt, Mubarak asked the largely rubber stamp Parliament on February 26, 2005 to amend the constitution to allow multi-candidate presidential elections by September 2005.

On July 28, 2005, Mubarak announced his candidacy, as he had been widely expected to do. The election which was scheduled for September 7, 2005 was widely seen as heavily rigged.
Anguish against Hosni Mubarak
Votes were bought for Mubarak in poor suburbs and rural areas. It was also reported that thousands of illegal votes were allowed for Mubarak from citizens who were not registered to vote. On September 8, 2005, Ayman Nour, a dissident and candidate for the El-Ghad Party, contested the election results, and demanded a repeat of the election. In a move widely seen as political persecution, Nour was convicted of forgery and sentenced to five years on December 24, 2005.

Even the Muslim Brotherhood, which has a wide cadre base in Egypt, fielded candidates as independents due to their illegality as a political party. They won 88 seats to form the largest opposition bloc, but only after the arrests of hundreds of Brotherhood members. A constitutional amendment adopted by the National Democratic Party-dominated Parliament has made it virtually impossible for independents like former IAEA chief Mohamed El-Baradei to run for president.

Soon after, Mubarak appointed his son Gamal as the general secretary of the ruling NDP, a move that convinced many of his unwillingness to let go of power.

As Mubarak tried to tighten his grip over Egypt, anti-government protests strengthened in 2005 giving rise to the Kifaya (enough) movement, the unofficial moniker of the Egyptian Movement for Change.

It first came to public attention in the summer of 2004, and achieved a much greater profile during the 2005 constitutional referendum and presidential election campaigns. Since then it has opposed Mubarak’s presidency and over the years the voices have only grown louder.Now the final outcome this gradual but sure approach is in open — Mubarak Stepped Down.

Role of Social Media

In one of my earlier posts posted on this blog dated February 04, 2011, I wrote an article with title as mentioned below, but found rare buyers of the concept. Probably now its no more a secret and known to all. I did not emphasize much thereafter on role of social media because one of my teacher taught me a lession that can mentioned as  “People can believe only on the things, creations and thoughts and other things of the same kind, only to the extent if they are capable of even imagining such phenomenon in their wildest dreams. Else they will laugh at you and will say the things that you may not love to listen. Let them be mature, but do not kill your vision just for the reasons that other are suffering from vision myopia.”

THE FACE BOOK IS WORKING TO GET CHANGE IN GOVERNMENT OF A NATION: YES, I MEAN IT– IT’s EGYPT –Saurabh Singh

Adding to the dicussion further I would like to state what’s even more interesting  and that is the role played by Social Media tools like the use of Twitter, Facebook, and YouTube to speed the process of protests in Egypt. There has been some backlash about the use of social media, with some pundits calling it a “Facebook Revolution,” as if without Facebook this wouldn’t be happening.

The revolt still would have happened, even if the Social Media tools were not there. but their presence added fuel to fire of revolution. Today’s era of real-time communication made the “words of the January 25 protests” spread more quickly and gained momentum that would have been hard to achieve without the social networks.Role of Social Media

But it also leads oneto wonder…is the use of the Internet, and social media, a human right?

The best testimony about social media’s role in these events has to be the efforts of the Tunisian and Egyptian governments to thwart or completely cut off the Internet. The chart published on Mashable, the Internet became a critical communications point leading up to the events of the past few days. It’s no wonder that the autocratic Mubarek regime sought to protect its own power by cutting the Internet.

Internet Traffic Chart

It should be noted that the protests have significantly escalated since the proverbial kill switch was hit on the Egyptian Internet. So at best social’s role can only be painted as a catalyst, and not the ultimate factor.

Leaving the discussion on Role of Social Media to Political Pundits.. will follow If find their or comments from my audiences on the topic.

Post Mubarak Situation in Egypt : A State of Uncertain Transition

Some have termed the departure of Egyptian President Hosni Mubarak from office on Friday as a resignation. Some others have called it waiving the office or powers of the president. The Egyptian constitution provides for both contingencies.

When a president resigns, the constitution requires that he should address his letter of resignation to the president (speaker) of the parliament. When he stops exercising the powers of the president, he addresses his letter to the vice-president.

Article 82 provides for this interesting contingency of the president leaving office without formally resigning. It says: “If on account of any temporary obstacle the president of the republic is unable to carry out his functions, he shall delegate his powers to a vice-president.”

Mubarak, while leaving office much to the jubilation of the protesters, did not inform the president of the parliament and submit a formal letter of resignation as required under the constitution.

Celebrations in Egypt as Announcement of Mubarak Leaving the office comesNor did he ask Vice-President Omar Suleiman to take over. Instead, he asked the Supreme Council of the Armed Forces to take over. It is a coup without seeming to be a coup.

One can go on analysing the circumstances of Mubarak’s departure. Whatever be the circumstances, Mubarak is gone from office for ever. It is time to discuss what next. Egypt is now in a state of transition under the leadership of the Supreme Council of the Armed Forces, which consists of the following:

Field Marshal Mohamed Hussein Tantawi, who has been the minister of defense and commander-in-chief of the Egyptian Armed Forces since 1991.

He has been a field marshal since 1989. After the protests broke out on January 25, Mubarak promoted him as deputy prime minister and asked him to continue to hold the defence portfolio.

He visited the Tahrir Square on February 4 and met the troops deployed there as well as the protesters. He is the chairman of the Supreme Council.

Air Marshal Reda Mahmoud Hafez Mohamed, the chief of the air force since March 20, 2008.

Lieutenant General Sami Hafez Anan, chief of staff of the army.

Lt Gen Abd El Aziz Seif-Eldeen, commander of air defense.

Vice Admiral Mohab Mamish, chief of navy.

Is Lt Gen Omar Suleiman, the vice-president, who made the televised announcement regarding Mubarak leaving office after handing over his powers, a member of the Supreme Council? The position is not clear.

Al Jazeera says he is. Others do not say so. However, since he is only a lieutenant general and since the Supreme Council is headed by a field marshal, it stands to reason that Suleiman may have to work under the orders of the Supreme Council and not vice versa.

What next? The present constitution has become untenable since the post-Mubarak transitional arrangements are not in accordance with the constitution.

This gives rise to the possibility that the Supreme Council may suspend the constitution and dissolve the parliament. Mohamed El Baradei has said that Egypt will now have a provisional constitution.

What will be the duration of the transitional arrangements? Till September when the election of a new president is due or for a longer period?

The political elements, who participated in the protest movement, are already saying that it may not be possible for the Supreme Council to restore political and economic normalcy before September and, hence, according to them, it should be for a longer period.

El Baradei has been quoted by the BBC as stating as follows: “What I have been proposing is a transitional period of one year. We will have a provisional constitution. We’ll have a transitional government, hopefully a presidential council, including a person from the army and a couple of civilians.”

“The main idea is that the army and the Egyptian people will work together in a systematic way for a year to reach the point where we can hold a genuine free and fair election, a parliamentary election and a presidential election. I think the people of Egypt, who have been suppressed for at least 30 years, are ready to wait for a year as they see things are going in the right direction,” Baradei said.

The younger non-political elements, who played a leading role in the revolution, have not clearly indicated their view on this subject apart from expressing their trust in the army.

Wael Ghonim, the Egyptian Google executive, who is credited with rallying many young people behind El Baradei, has tweeted to his followers as follows: “The military statement is great. I trust our Egyptian army”.

The armed forces’ statement to which he had referred said the Supreme Council would lift the country’s emergency law but only “as soon as current circumstances end”.

It also said, “Armed forces make a commitment to caring for the people’s legitimate demands, and to seeking to follow their implementation within the time frames with full precision and resolution, until the complete transfer of power, and the achievement of the democratic free society which the people aspire to”.

It pledged not to prosecute ‘the honest men who called for an end to corruption and for reform.’

While it spoke of time-frames for the transition, it refrained from specifying those time-frames. If Ghonim comes out ultimately in support of El Baradei’s call for a longer transition, will other youth leaders support him?

Who will be in any transitional government or council that may be constituted? Everybody wants that it should be a civilian council possibly headed by El Baradei and including a representative of the armed forces.

It is not yet clear whether the Supreme Council would accept a transitional council of which the Muslim Brotherhood is a member.

The MB has been supportive of El Baradei till now. He has been advocating a role for the MB in the transitional set-up, but the MB has said it does not want any role. The youth leaders are not opposed to it. The Supreme Council has not yet spelt out its views.

Always Yours —- As Usual — Saurabh Singh

What’s even more interesting to me, though, is the use of Twitter, Facebook, and YouTube to speed the process of protests in Egypt. There has been some backlash about the use of social media, with some pundits calling it a “Facebook Revolution,” as if without Facebook this wouldn’t be happening.

Let’s be real. The revolt still would have happened. But in this day of real-time communication, word of the January 25 protests spread more quickly and gained momentum that would have been hard to achieve without the social networks.

I’m reminded of the Malcolm Gladwell piece that ran in The New Yorker in early October last year. In it, he describes 1960s North Carolina where a Woolworth’s wouldn’t serve black students. The story goes that the protest to not allow blacks to sit at the bar, but instead stand at the snack counter, began with four students and, the next day, grew to 27.

During the following days, the sit-ins eventually grew to 600 people and more than five colleges taking part. Soon 70,000 students were involved and thousands were arrested and even thousands more were radicalized.

He says, ‘These events in the early sixties became a civil-rights war that engulfed the South for the rest of the decade—and it happened without e-mail, texting, Facebook, or Twitter.”

While I disagree with the rest of his view on the use of social media in today’s w0rld, he eventually gets to the point that we are not in the middle of a digital revolution. And, whether you use the tools or not, you have to agree that the revolt in Egypt would have happened without social media. The use of the tools just speeds the process.

But it also leads us to wonder…is the use of the Internet, and social media, a human right?

GOVERNMENT & ADMINISTRATION BOTH ARE HAND IN GLOVES WITH THEIR SINISTER OBJECTIVE IN PROMOTING SLUMS

The evictions that were done for the beautification of Delhi Prior to Common Wealth Games have had a lasting impact on people’s lives, who were there occupying the place as slums and living there for a good number of years.

The blogger is not supporter of Slums, but if they have cropped up, then  that a very first lapse of Government in meeting its developmental agenda on one hand, and people who are provided duty of taking care of the issue of encroachment of such nature.

The blogger wants to learn that have the jobs, funds, pensions and other benefits that were being provided to such employees have ceased to exist or government wants a bigger proof of their inefficiency.

On the other had if something is illegal, under what laws the legalized electricity and water connections, ration cards, voter identity cards and an identity card were provided to inhabitants there.

IT CAN BE VERY SAFELY CONCLUDED THAT GOVERNMENTS AND ADMINISTRATION BOTH ARE HAND IN GLOVES WITH THEIR SINISTER OBJECTIVE & ARE PROMOTING SLUMS TO CROP UP AT THE PLACES WHERE PRICES OF LAND ARE EXPECTED TO ESCALATE OR CAN GET ANY OF THREE FACTORS AS MENTIONED AHEAD TO ENJOY; THE FACTORS BEING MONEY, LAND, & SEX.

 

“Gyarah din ke khel ke liye woh aaye,dhoom mahcaye aur humein phas ke chale gaye,” (They came for the games for 11 days, had their fun and left, leving us trapped in the middle of nowhere). 26-year-old Zora is angry as she says this. She is one of the estimated 200,000 people who were forcefully evicted from slums in the National Capital Region as a part of beautifying the capital in preparation for the Commonwealth Games 2010.

Anoop - One of Residents of JJ Colony, Valmiki Nagar


Zora, who is married and stays at her in-laws house, keeps coming back to what once used to be her paternal house in Indira Gandhi Camp II in Sewa Nagar in South Delhi, for she does not have parents, but has two younger sisters and a brother. Her two sisters live in a plastic tent, which is often targetted by miscreants at night. “Each night I go back home after visiting my sisters, I go with a fear. I kiss them on their forehead daily, not knowing what awaits them in the night. They have a plastic sheet as a door and it is well known in the area that there are two women in the tent, with just a 11-year-old boy for protection,” Zora said.

 

Zora - One of Slum Dwellers at a Meeting

The slum, which has been housing migrants from Madhya Pradesh for the last twenty years, was razed, without any notice in January 2009. The slum cluster consisted of approximately 300 homes, with legal water supply and electricity connections.

 


We were granted ration cards, voter identity cards and an identity card, which makes us eligible for rehabilitation. When Sheila ji (Delhi CM Sheila Dikshit) came to our basti asking for votes, she had assured us that our colony would be legalized. Instead, it was razed. I was cooking food when they came with the bulldozers. They did not even give me the time to collect valuables or even identity cards from my jhuggi,” says 35-year-old Kamla, a single mother, who has two children.

Kamla -- Another one of Them

“And all this for what? That parking lot remains empty today. There are no events in those stadiums today. The foreigners have gone,” chips in Anoop, a resident of JJ Valmiki camp near Thyagaraj stadium.

The men and women were speaking at the launch of a report titled “Forced evictions and Commonwealth Games” prepared by NGO Housing and Land Rights network. The HLRN had undertaken a fact finding mission across 19 sites in Delhi, where the government forcefully evicted colonies while preparing the capital for Commonwealth Games.

“Basic human rights have been violated during these evictions. Most of the evictions happened during extreme weather conditions, during festivals or prior to school examinations. Atleast three instances of deaths and several other cases of injuries have been reported during these evictions. The affected families have not been compensated or rehabilitated, forcing them to continue a life which lacks security and violates the basic right to live with dignity. The most alarming violation is the violation of human rights of women. Young women are vulnerable to sexual abuse and violence resulting from exposure to insecure and inadequate living conditions,” says Shivani Chaudhry, associate director of HLRN.

In addition to women facing problems like harassment, lack of security and lack of space for personal hygiene, another direct consequence of a mass scale eviction like the one that took place in Delhi since 2004, was violation of rights of children.

Raman - Who used to Manage one of the Schools
Many children were forced to drop out of schools, as atleast three schools Deepshika Primary School (sector 52, Gurgaon), Pragati Wheel School (Yamuna  Banks) and Viklang Basti Informal school were razed for preparations. Many of these children were forced to take up jobs to supplement family incomes.

Sher Singh, who was in class VI of the privately-run Pragati Wheel School on the Yamuna Banks (opposite Commonwealth Games Village), recounts how the government bulldozers razed the school while they were inside studying.

“They came and asked all of us to leave. We pleaded with them not to do it, but they told us they had to do it for security reasons. Since then, I have not been able to get admission in any school,” says Sher Singh.


Raman Khanna, who runs the school, said, “We reopened the school last month. I am running a school with no roof. I have to, as the families of the boys and girls who used to study there, requested me repeatedly to. As long as the rainy season does not start, it will be okay, I think. There were about 180 students with us before evictions and now we have about 90. I am running the school literally by paying a daily bribe to beat policemen.”


Former Chief Justice of the Delhi High Court, Justice AP Shah, who released the report, told rediff.com, “In 2009, a night shelter had been razed. I had initiated a suo moto case against the MCD regarding the demolition of the night shelter and ordered the MCD immediately to restore the Pusa Roundabout night shelter. Till date this order has not been followed. The government hid behind a technicality, as they so often do. In addition, not even a single notice has been sent to any of the officials connected with such mass scale demolitions. And I am also surprised that the National Human Rights Commission has been silent on the issue for so long.”

On suggestions given by Justice Shah, the HLRN has decided to submit the report to the NHRC and file a PIL in the Delhi High Court.

Miloon Kothari, the executive director of HLRN said, “We have enough evidence. We will also submit the report to the UN as well. If there is international pressure, the government will budge. The tragic violations of basic human rights should not go unpunished like this.”

 

Always Yours — As Usual —- Saurabh Singh

A CASE OF OPEN ACQUIRE OFFER – JUSTIFY PAYMENT OF NON COMPETE FEE, SEBI TELLS E. LAND

Saurabh Singh

JUSTIFY PAYMENT OF NON COMPETE FEE, SEBI TELLS E. LAND

The Securities & Exchange Board of India, or SEBI, has told a South Korea’s $7-billion textile chain E. Land, which in process of acquiring Mudra Life Style by an open offer, to justify the payment of a non-compete fee of 25% to the promoters of Mumbai-based Mudra Lifestyle.

INTRODUCTION OF STAKEHOLDERS

E. LAND TEXTILE CHAIN OF SOUTH KOREAN ORIGIN

E. Land is a South Korean $ 7 Billion Textile Chain. The textile house is in midst of the process of taking over Mudra Lifestyle. E.Land Group (is a South Korean conglomerate headquartered in Chanjeon-dong Mapo-gu Seoul, Korea. It started as a 6 sqm small clothing shop on a fashion street in front of Ewha University in Sinchon in 1980. E.Land Group became a USD 7 billion group of companies, creating the phrase “Myth of 6 sqm (hangul)”. E.Land Group now takes part in retail malls, restaurants, hotels and construction businesses as well as its cornerstone, fashion apparel business. It has operations worldwide through its subsidiary E-Land World, including China, Hong Kong, Vietnam, the United States and Europe. History In the 1980s, E. Land Group revolutionized the retail channel by pioneering new markets using a franchising system. Franchising system is one of the most profitable forms of retail distribution due to its low initial investment requirement when opening new stores. Its first ever brand was called “England”, which later changed to “E-Land” due to restrictions on trademark registration. During the Asian financial crisis of 1997, E. Land Group successfully carried out several corporate reform initiatives, including corporate restructuring, overhaul of its finances and transformation of its management system. As a result, E. Land Group became the 37th largest corporation in Korea (excluding SOE’s) with assets totaling over 2 billion USD as of the end of 2005. E. Land Group transformed Korean apparel retailing, which was historically divided into high-priced department stores and low-priced traditional markets, by creating a new medium-priced market using street shops. This market has now grown to over USD 20 billion in 2006. E. Land Group currently takes part in fashion apparel, hyper-mart retail, fashion outlet malls, department stores, hotels and restaurant businesses. Vertical Integration It currently focuses on vertical integration of production and distribution of consumer goods that include apparel, groceries and house wares. Products are sold through two different channels, namely, approximately 5,000 franchise stores and E. Land Group owned stores consisting of 25 premium fashion discount stores, two department stores and 32 discount stores. The strength of E.Land Group lies in its ability to generate synergies between its fashion and retail businesses, and this strategy being implemented through a business portfolio that includes infant wear, children’s wear, women’s wear, sportswear and underwear and a multitude of channels such as outlets, department stores and super supermarkets. Retail E. Land Group is currently the second largest retailer in Korea based on number of stores as of September 2006 (Source: Korea Rating). The Group’s current retail business comprises Homever, Kims Club, NC Department Store, NewCore Outlet and 2001 Outlet. 2001 Outlet In 1994, E.Land Group introduced the first outlet in Korean market by opening the first store of 2001 Outlet. It took a form of mullti story outlet stores with groceries, houseware and apparel. NC Department Store & NewCore Outlet In 2003, E.Land Group purchased a 75% stake in NewCore, a department store operating in 25 different locations in Korea. Following the acquisition, NewCore was transformed to and operated as two department stores and 15 fashion premium outlets. Homever (ex. Carrefour) In April 2006, E. Land Group acquired the entire South Korean operations of Carrefour which operated 32 discount stores. Carrefour Korea, despite its global presence and experiences overseas, struggled to understand the local Korean culture. Carrefour was rebranded to Homever by E. Land Group after the acquisition. The acquisition moved E. Land Group from 6th to 2nd largest discount/outlet operators with respect to total number of stores. Using experiences accumulated from prior operations of 2001 Outlet and NewCore Outlet, E. Land Group successfully integrated its winning strategy to revive the stores after the acquisition. During 2007, E-Land received media attention regarding new Korean non-regular protection laws. E-land laid off more than 900 non-regular female cashiers at its affiliate retailers, Homever and New Core, just before the law went into effect on July 1 2007. The group, instead, outsourced their jobs to workers from temporary agencies. The new law requires a company to grant its non-regular employees regular status after they have worked with the company for two years. On 14 May 2008, the British retail group Tesco, which already operated in Korea, agreed to purchase 36 hypermarkets with a combination of food and non-food products from E-Land for $1.9 billion (976 million pounds) in its biggest single acquisition, making Tesco the second largest retailer in the country. The majority of the E-Land stores formerly belonged to French retailer Carrefour before 2006 and most of the stores will be converted to Tesco Homeplus outlets. Tesco’s South Korean discount store chain, Home Plus, currently has 66 outlets.

MUDRA LIFESTYLE BUSINESS

Mudra Group started its operations in 1986 and is in the textile industry having facilities for fabrics & garments manufacturing, processing, design development and sampling etc. It manufactures fabrics and garments for domestic and export market. The brand MUDRA has built a strong goodwill for itself in the domestic market and commands a premium. It’s gradually moving towards garment manufacturing mainly in the designer shirts and ladies wear segments to capitalize on the huge opportunity unleashed by the removal of quotas.

MUDRA LIFESTYLES’ PRODUCT PORTFOLIO CONSISTS OF: • Finished fabric • Processing • Garments  Mens Wear :Shirts  Ladies Wear : Tops, Skirts  Kids Wear PROMOTERS: Mr. Murarilal Agarwal, aged 49 years, Chairman and Managing Director, is a commerce graduate. He is the founder of the MUDRA group and has over 25 years experience in various facets of the textile industry. Shri Agarwal, as Executive Chairman, overlooks the entire working and affairs of the company’s management. Mr. Ravindra Agarwal, aged 46 years, Joint Managing Director, has done his M.A. (Gold Medalist) from Mumbai University. He has experience of over 18 years in the textile industry. He heads the Finance and Marketing Functions of the company. He is supported by a team of experienced professionals. Mr. Vishwambharlal Bhoot, aged 65 years, is a matriculate and has experience of over 38 years in the textile industry. He controls the company’s administration and accounting functions. He is supported by a team of experienced professionals.

THE BOARD COMPRISES THE FOLLOWING DIRECTORS:

S. No. Name Designation 1 Mr. Murarilal Agarwal Chairman and Managing Director 2 Mr. Ravindra Agarwal Joint Managing Director 3 Mr. Vishwambharlal K. Bhoot Executive Director 4 Dr. Surendra Ambalal Dave Independent Director 5 Mr. Subhash Chandra Bhargava Independent Director 6 Mr. S. P. Pandian Independent Director

SECURITIES AND EXCHANGE BOARD OF INDIA SECURITIES & EXCHANGE BOARD OF INDIA (frequently abbreviated SEBI) is the regulator for the securities market in India. It was formed officially by the Government of India in 1992 with SEBI Act 1992 being passed by the Indian Parliament. Chaired by C B Bhave, SEBI is headquartered in the popular business district of Bandra-Kurla complex in Mumbai, and has Northern, Eastern, Southern and Western regional offices in New Delhi, Kolkata, Chennai and Ahmadabad. ORGANIZATION STRUCTURE: Chandrasekhar Bhaskar Bhave is the sixth chairman of the Securities Market Regulator. Prior to taking charge as Chairman SEBI, he had been the chairman of NSDL (National Securities Depository Limited) ushering in paperless securities. Prior to his stint at NSDL, he had served SEBI as a Senior Executive Director. He is a former Indian Administrative Service officer of the 1975 batch…

THE BOARD COMPRISES

Name Designation As per C B Bhave Chairman SEBI CHAIRMAN (S.4(1)(a) of the SEBI Act,1992) KP Krishnan Joint Secretary, Ministry of Finance Member (S.4(1)(b) of the SEBI Act, 1992) Anurag Goel Secretary, Ministry of Corporate Affairs Member (S.4(1)(b) of the SEBI Act, 1992) Dr G Mohan Gopal Director, National Judicial Academy, Bhopal Member (S.4(1)(d) of the SEBI Act, 1992) MS Sahoo Whole Time Member, SEBI Member (S.4(1)(d) of the SEBI Act, 1992) Dr KM Abraham Whole Time Member, SEBI Member (S.4(1)(d) of the SEBI Act, 1992) Mohandas Pai Director, Infosys Member (S.4(1)(d) of the SEBI Act, 1992) Prashant Saran Whole Time Member, SEBI Member (S.4(1)(d) of the SEBI Act, 1992)

FUNCTIONS AND RESPONSIBILITIES SEBI

SEBI has to be responsive to the needs of three groups, which constitute the market: 1. The issuers of securities 2. The investors 3. The market intermediaries SEBI has three functions rolled into one body quasi-legislative, quasi-judicial and quasi-executive. It drafts regulations in its legislative capacity, it conducts investigation and enforcement action in its executive function and it passes rulings and orders in its judicial capacity. Though this makes it very powerful, there is an appeals process to create accountability. There is a Securities Appellate Tribunal [SAT] which is a three-member tribunal and is presently headed by a former Chief Justice of a High court – Mr. Justice NK Sodhi. A second appeal lies directly to the Supreme Court. SEBI has enjoyed success as a regulator by pushing systemic reforms aggressively and successively (e.g. the quick movement towards making the markets electronic and paperless rolling settlement on T+2 basis). SEBI has been active in setting up the regulations as required under law.

MUDRA LIFESTYLE: STOCK PROCES AS ON JANUARY 28, 2010

BSE : Jan 28, 17:30 Open Price 57.00 Volume 351495 High Price 59.00 52 Wk High 62.80 Low Price 53.00 52 Wk Low 33.50 Prev. Close 57.65 Open Price 58.00 Volume 293989 High Price 58.00 52 Wk High 59.95 Low Price 53.85 52 Wk Low 28.05 Prev. Close 57.50 NSE: Jan 28, 17:30

THE SITUATION

In a first-of-its-kind deal in the local textile sector, the South Korean fashion and garment conglomerate had agreed to and is in the process of acquiring the promoter’s stake in Mudra Lifestyle and also take management control. The Korean firm has already acquired a 25% stake in the company and appointed directors on its board. It has also unveiled an open offer to buy 20% equity from shareholders at Rs 60 per share. It would pay Rs 75 a share to the company’s promoters for a controlling stake. The differential pricing to the promoters is on account of a non-compete fee. An acquirer can pay a seller non-compete fee of up to 25% of the price offered to shareholders in an open offer. Anything more than 25% has to be included in the open offer price. According to officials in investment banks, SEBI has asked SBI Caps, which is managing the open offer, to justify a higher or differential price in the form of non-compete fee to the promoters. “The regulator is still examining the submission. The company had filed for an open offer approval in October. Payment of non-compete fee is increasingly turning out to be a contentious issue with the market regulator vetting several such cases. This may also have to do with the recent recommendation of a committee on takeovers, which said non-compete fees should be done away with as according to it promoters were the sole beneficiaries. “SEBI is hostile towards non-compete fee as it is looking at reforming this aspect of companies’ takeover. More often than not it short-changes minority shareholders. While SEBI allows this to go up to 25%, under the Indian Contract Act it is invalid. However, the Securities Appellate Tribunal has said that if the law allows it, then it is justified. Merchant Banker to the ISSUE: SBI Caps or SBI Capital Markets Legal Arm of Merchant Banker: Amarchand Mangaldas Usual Time Taken by SEBI to settle Such Cases: One Month Time being Consumed by SEBI in this Case: It has already been nearly four months since the Company had filed for an open offer approval in October 2010 ISSUES INVOLVE 1. SEBI is hostile towards non – compete fee. 2. While SEBI allows it to go up to 25 per cent, in case of Indian Contract Act it is invalid. 3. Securities Appellate Tribunal says that if law allows, then it justified. But in majority of case ‘it is control premium’ that is paid in disguise of ‘non – compete fee’.

VIEW OF AN ECONOMIC LAW PRACTIONER

SEBI does not have much jurisdiction to decide whether the fee is justified, if it is not above the prescribed limits.

DEAD FISH IN THE POND

There is an old saying regarding a dead fish in the pond. In same manner or on the similar lines one of recent and matching issue was of acquiring of Mysore Cements. In this case SEBI had asked the acquirers not to pay differential prices to promoters at the expense of other Share Holders. The Regulator was of the view that payment of non – compete fee was not justified in this case as company was classified as a sick company.

 

E. LAND GROUP OWNS IN EXCESS OF 60 BRANDS IN KOREA

Casual • Brenntano • Underwood • Hunt • R.Athletic • Teenie Weenie • Who.A.U • Shane Jeans • So Basic • There’s • Coin • C.o.a.x • Prich • G-Star Deco & Netishion (Women’s) • Deco • Ana Capri • Telegraph • XIX • Dia • EnC • 96 New York • A6 Women, kids, underwear and accessories • E-Land Junior • Underwood School • Ohoo • Little Brenn • Roem Girls • The Day Girl • Cocorita • Usall • New Golden • Hunt Kids • Caps • Vianni Kids • Cheek • Entetee • Celden • Hunt Innerwear • The Day Underwear • Eblin • Petit Lin • Body Pop • Roem • The Day • 2Me • Teresia • Fiorucci • Clovis • Lloyd • Clue • Vianni • Eco Mart • Paw in Paw • OIX • Vicman • OIX Milano • NIX21 • Marie Claire • OST • Beall Eland also operate the following global brands under license • Berghaus • Ellesse Source: http://en.wikipedia.org/wiki/E-Land accessed on Jan 29, 2011 at 1237 Hours IST.

TERMS DEFINED NON –

COMPETE FEE

This fee is a differential price being paid to promoters over and above the price being paid to ordinary shareholders.

TRADITION & REASON BEHIND NON COMPETE FEE

This fee is paid by the acquirer to ensure that the former promoters of the company do not compete directly in same line of business for specified time period.

ACCEPTED AMOUNT

An acquirer can pay seller a Non – Compete Fee of up to 25 per cent of the price being offered to share holders in the Open Offer of Acquisition. Anything more than 25 per cent has got to be included in the open offer.

 

ALWAYS YOURS — AS USUAL — SAURABH SINGH

Paul Watson: Fed Leads America “To The Brink Of Collapse”

Hope its good to have idea of various view points. So this too would be O.K. Always Yours — As Usual — Saurabh Singh

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New World Order Imminent!- Anyone For A Game Of Ping Pong?

This vedio has been uploaded for my learned audiences, fans, students and scholars and rest others, who wish to understand issue of New World Order. I would top up the same by a commentry on Asian Environment Soon. Hope you find some value in it.Always Your—– As Usual — Saurabh Singh

Vodpod videos no longer available.

 

TRUTH: TOUGH TO SPEAK : MORE THAN ANY THING ELSE

TRUTH: TOUGH TO SPEAK : MORE THAN ANY THING ELSE

Telling truth somehow has been found to be a real taxing job. This has been one of the strategic battle fields, in my efforts to remain human, that I am attempting for last four years. Well ! nearly all who made me learn and also those around me who still preach other to practice truth by quoting “Truth Shall Triumph”, have been found lacking by miles when its’ their turn to practice what they preach. The one of the serious problems that I encountered in my attempts to remain human, got born the day I learned and put in practice this teaching of society. As soon as I saw many human beings started to change sides. Why it is so? is still a mystery.

The finding on the same lines is that, since you were not born with all the elements around you, in the sense that they keep on changing, you should not develop attachment to them. This is point where you will find that speaking truth has now turned some what easy.

This learning occurred to me with the learning that I do not have liabilities but responsibilities. Studies, Books and Exploring the Unexplored in this Universe are at times much better company to have. Some times, despite of this, I fear that God may have destined a long life span for me, reason behind this feeling may be assigned to my style of living the life. I will not say that I live life King Size, but then I can very well say that I live life at both extremes and have always attempted to defy the moderate path.

Normally, people pursuing moderate path with unbudgging focus on material and commercial aspect and in a state, which I say as a stage of life long and unending transition, where they are attempting from Third Stage in Maslow’s  Need of Hierarchy to Fourth Stage of same hierarchy.

Alas ! they are not able to complete this transition even at the moment ending their journey of life, but are happy (as they feel) most often with few tense moments at night, also at the same time time suffering with psuedo – achievement syndrom. They continue to live in ‘Gentle Poverty’ [a term coined by author], trying to prove that they are ethical ones, and simultaneously attempting to hide the fact they are neither humans, nor professionals; precisely ‘they can be termed as Selfish’ Creations. They will remain happy and content for nearly one third of their life span, i.e., commercially productive life span and may succeed in developing a false feeling of being content too; but you know that still  one third of their life, that would be less productive phase remains left.

A great Saint and Poet Tulsidaas [who authored Ram Charit Manas and in same] has said that “SABSE BHALE VEH MOORH NAR JINHE NAA VYAPAHIN JAGAT GATI”, when translated in Victorian language, it means that  the “Individual who are not intelligent enough to learn what is happening around the world and lack vision and are living in manner of ‘FUNGI’ are the happiest of all”.

I am also worried more often than not that why such issue get born in my Grey Cells alone. Are others also thinking in the same manner? If yes then why do not act so? I find no answers as the world turns deaf to my question. Its good too, as it provides me chance to analyze the things further.

Some how I land on the conclusion that as life has its strange ways, the god may be having some agenda with him that he may be planning of getting executed by me and thus has given or say gifted or punished by equipping me with this kind of life style and thinking.

People like me probably are not allowed to expect an easy life for them. As such people are supposed to be busy thinking that when so many are there, why it is they alone forced to embark on such path, and are then lost in search of what they are expected to do or what new surprise may spring out of destiny’s lucky dip basket.

Its’ nothing new and finally all ends well. The only difference that is found with passage of time is  that while others find it easy to leave this planet or to say fully vanish with their identities and names within fifty or sixty years of their leaving their mortal bodies, the another kind finds it difficult task to be performmed even after passage of centuries too.

Probably this much gamble is good enough to give you motivation for completing the Journey of life in bit other manner, trying to follow and accompany truth as nearly, as long as possible.

Remember, its only your deeds that can turn you immortal and also that you have been gifted with only one life time to perform the same. No more, no less. “Complaining of not having inherited the fortunes is not a good thing to do, but on the other side do attempt to complete your journey of life leaving others HAPPY & PLANET A BETTER PLACE FOR THEM TO LIVE.”


Always Yours —-  As Usual —–  Saurabh Singh

 

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