Business Line Summary - 28th Sep

Group-25

Group Members:-

Saurabh Garg
Sneha Kumari
Saurabh Goel


Vodafone may face tax demand for Rs 12,000 cr :-

Vodafone is likely to get a tax bill of Rs 12,000 crore-plus within the next four weeks for its $11.1-billion deal with Hutch in 2007.
The Chairman of Central Board of Direct Taxes, Mr S.S.N. Moorthy, said on Monday, “We will be raising a demand on Vodafone for Rs 12,000 crore-plus.
Issuing notice to the I-T Department, the apex court also said that Liberty is given to the petitioner (Vodafone) to move this Court for appropriate reliefs.
The matter will be heard again on October 25.
Corus to sport Tata Steel logo :-


Tata Steel has decided to emboss its name and logo on all the transactions of its European subsidiary Corus.
Corus joined the Tata Steel family in April 2007.
This brand migration will lead to the Tata Steel name becoming much more prominent and widely recognised across Europe and will reinforce our sense of belonging to the Tata Steel family. Said Mr.Kirby Adams.
The logo had also been changed. The blue colour has been changed to red color.
According to the Senior executive the transition is made only when the new company is ready and also the group is satisfied.

IDFC to issue tax-saving, long-term infrastructure bonds to raise Rs 3,400 cr:-


Infrastructure finance company IDFC Ltd is planning to raise up to Rs 3,400 crore through a retail issue of infrastructure bonds.
Investment of up to Rs 20,000 in these bonds will be tax exempt.
Having a face value of Rs 5,000, the bonds will have a maturity of 10 years and will be issued in four series. The coupon rate is 8 per cent payable annually or 7.5 per cent with a buyback option.
IDFC is also planning to raise funds through overseas borrowings.

ULIPs: New look, new feel :-

Under the new ULIP, which came into force from September 1, the Insurance Regulatory and Development Authority had cleared over 70 products, most of which have already hit the market.
The ULIPs, which had been a dominant business segment of the life insurance industry which came under the spotlight when the Securities and Exchange Board of India (SEBI), on April 9, asked 14 life insurers not to sell ULIPs without its approval.
According to the IRDA data, during February 2008 and April 2009, 16.7 lakh policies of ULIPs were sold with a total premium of Rs 44,611 crore.
Finally, the matter was taken to the Supreme Court forcing the Govt to step in amidst growing criticism and the toll the row was taking on the business.
the IRDA Chairman, Mr J. Hari Narayansaid that the real impact of the new norms and the policy-holders response could be known only by next April.
He also said that from the customer point of view, I think the regulatory issue had a positive impact of creating awareness on ULIPs which is very much required.'':-Sensex ends marginally down on profit-taking:-

The Bombay Stock Exchange benchmark Sensex closed marginally lower by 12.52 points at 20,104.86 points on Tuesday.
The reason was due to profit-booking by investors amid weak global cues.
A marketmen said that the weakening trend in the Asian region and lower opening in Europe influenced the market sentiment and capped the last 30-minute recovery, leaving the benchmark to become a little lower.
Among other software exporting companies, Tata Consultancy Services dropped by Rs 6.90 to Rs 920.40 and Wipro, the third biggest, by Rs 2.95 to Rs 441.60.
The oil and gas sector suffered the most by losing 0.83 per cent to 10,647.86 followed by the IT sector index which lost 0.5 per cent to 5,914.81.

ADAG likely to enter stock exchange space:-

Dhirubhai Ambani Group (ADAG) has announced its intention to enter all segments of the exchange business.
The group has already entered segments like commodity exchange and spot exchange.
There are only two national-level full-fledged stock exchanges in the country- BSE and NSE.
At present, Indiabulls holds 40 per cent, out of which it wants to sell 26 per cent stake in the exchange to ADAG group.
Reliance Capital is already in the spot commodity space.


RBI invites applications for Nabard chairman:-

Reserve Bank of India (RBI) has invited applications for the post of Chairman of apex agriculture bank Nabard.
The Chairman of Nabard shall hold office for a term of up to 5 years from the date on which he assumes his office or until he attains the age of 60 years, whichever is earlier.
Nabard, which is a subsidiary of RBI, provides and regulates credit and other facilities for promotion and development of agriculture, SSI, cottage and village industries, handicraft and other allied economic activities in rural areas.
The financial institution is responsible for supervision of the rural cooperative credit structure and Regional Rural Banks in the country.
A good exposure to institutional development and banking supervision would be an added qualification.


Re at 4-month high; Sensex, Nifty up:-

A mildly positive sentiment prevailed across the financial markets.
With foreign institutional investors pumping in a net of Rs 1,137 crore into equity on Monday, the Nifty and Sensex, rose by 0.29 per cent and 0.36 per cent.
Gold too went up marginally by 30 cents over its previous close of $1,295.95/troy ounce. Only crude oil eased, to below $76 at $75.62 a barrel.

India's inflection point is yet to come, says Reliance Brands CEO:-

Reliance Brands, a subsidiary of Mukesh Ambani owned Reliance Retail, is looking to bring more global labels to India.
As far we are concerned, we have had a six week sell-through. So this is a good indicator of the time to come in the retail sector.
The biggest challenge is to convince potential partners and also reaching the right customer. Location and real estate are problems that most retailers face.
We believe that the joint ventures are the most robust model and ensure longevity of the relationship. In any partnership the most difficult years are when the foundations are laid.

Canara Bank's Rs 1,000- cr bond issue:-


Canara Bank has come out with an issue of upper tier-II bonds to raise Rs 1,000 crore to augment its capital resources.
The objective of the issue, the announcement said, was to strengthen the capital adequacy and enhancing long-term resources of the bank.
The bonds will be issued at a coupon rate of 8.62 per cent for the first 10 years, it added, and a step-up coupon rate of 0.5 per cent payable annually.
The issue opens on September 27 and closed on September 28.