26th October - Business Line

Rahul Elhence
Priyanka Soam
Rachita
Section - F

SEBI TIGHTENS NORMS FOR PREFERENTIAL ALLOTMENT

SEBI tightened the framework for preferential allotment of shares to promoter in a move to prevent the misuse of preferential allotments,warrants and convertibles to manipulate share prices. Main statement from SEBI are:
If a promoter fails to exercise warrants as it has previously subscribed to equity shares,convertibles or warrants cannot be issued for one year from the date of expiry of the currency or cancellation of the warrants.
SEBI has doubled limit for maximum application size for retail investors to Rs 2 lakhs.

HUL NET JUMPS 32%ON STRONG VOLUME GROWTH

There is a strong volume growth at 14%that led FMCG major HUL to post a 32.1%jump in net profit to Rs 566.12 crore for the quarter ended September 30,2010.
The net profit included a gain of Rs 40 crore that the company received through sale of property,provision for expenses related to buyback of shares and restructuring cost.
They have been able to maintain cost efficiency.

MADRAS CEMENTS Q2 NET DROPS 81%

Net profit for Q2 of 2010-11 has dropped 1/5th of its net during the corresponding period last year.
High operating costs,steep fall in cement prices due to slack demand and large capacity additions contributed to the 81%drop in net profits.
Madras cements which has a surplus capacity of wind energy generators had to depend on costlier diesel generators because of the power cut imposed by the tamil nadu electricity board.

INFLATION EXPECTATION RISING STEADILY

The RBI inflation survey for June 2010 shows a far greater no. of people expect prices levels to increase faster than current rates.
According to the survey, Bangalore is at the top of inflation expectation chart and Chennai right at the bottom.
The question arises that how credible these surveys are, since there is a big element of subjectivity in the way respondents go about answering questions.
While inflation impacts purchasing power, inflation expectations are what influence peoples behaviour in ways that have a long term economic impact.

BRITAINS INFRASTRUCTURE TO GET $200 BILLION INVESTMENT

The private and public sector will pour $200 billion investment into britain creaking infrastructure over the next five years under a new programme introduced by britains coalition government,as a new survey revealed the country is facing heated competition as a business destination from India, China and US.
Mr.Cameron is going to launch national infrastructure plan and according to him “the infrastructure investment programme will help rebalance the economy and give industries right condition in which to grow.
The plan also pledges to introduce new measures to encourage private sector investment into infrastructure programmes.

BHARTI PICK IBM, TECH MAHINDRA , FOR AFRICAN SERVICE CENTRES

This is the second major partnership announcement from bharti airtel on the african subcontinent . In september bharti selected IBM to build and manage IT systems to power the mobile communications network across 16 african countries.
The three partners collectively employ over 90,000 people for providing BPO services in more than 100 countries.