CCI imposes Rs 1 cr fine on Thomas Cook, Sterling Holidays

Fine has also been imposed on Thomas Cook Insurance Services (India) Ltd, a party to the deal. The Rs 870 crore-deal involving merger of Sterling Holiday Resorts (India) with travel firm Thomas Cook (India) has already been cleared by Competition Commission of India.

The Competition Commission has imposed Rs 1 crore penalty on three entities, including  Thomas Cook and Sterling Holiday Resorts , for carrying out certain market purchases related to their deal before seeking the fair trade watchdog's approval.

The imposition of penalty by CCI was disclosed by Thomas Cook (India) in a regulatory filing today. Fine has also been imposed on Thomas Cook Insurance Services (India) Ltd, a party to the deal. The Rs 870 crore-deal involving merger of Sterling Holiday Resorts (India) with travel firm Thomas Cook (India) has already been cleared by Competition Commission of India.

However, the fine relates to market purchases carried out as part of the deal between February 10 and 12 this year. CCI had issued a show cause notice to all the three entities stating that "market purchases, being part of the composite combination (under the competition regulations), were consummated before giving notice to the Commission and as such invited penalty under the (Competition) Act".

Also Read: Competition Commission slaps Rs 3cr penalty on Tesco

Through these purchases, Thomas Cook Insurance Services (India) Ltd acquired more than 90.26 lakh shares, representing 9.93 per cent stake of Sterling Holiday Resorts (India) Ltd. The entities had filed notice seeking CCI nod for the deal on February 14, two days after the purchases. According to a regulatory filing by Thomas Cook (India) today, CCI was of the opinion that the facts suggested that the conduct of the parties was not such that attracts severe penalty.

"Considering the facts and circumstances of the case, the Commission...considered it appropriate to impose a relatively nominal penalty of Rs 1 crore on the parties," Thomas Cook said in the filing to the BSE. In March this year, CCI had approved the multi-structured deal saying it was not likely to have an adverse impact on competition in the country.

Under the deal, Chennai-based Sterling Holiday Resorts' (India) resorts and some other business would be transferred to Thomas Cook Insurance Services, a subsidiary of Thomas Cook (India). Further, Thomas Cook would issue certain equity shares of the subsidiary to Sterling Holiday's shareholders. Besides Sterling Holiday, with its residual business, would merge into Thomas Cook (India). In lieu, certain amount of shares of the travel firm would be issued to shareholders of Sterling Holiday, as per the ratio set out.

Among others, CCI had observed that "the business of hotel services across India is relatively fragmented and there are different channels for availing the hotel services along with the presence of large number of big players as well as intermediaries/agents".

Thomas Cook stock price

On June 27, 2014, Thomas Cook (India) closed at Rs 115.00, up Rs 0.60, or 0.52 percent. The 52-week high of the share was Rs 128.95 and the 52-week low was Rs 48.15.

The company's trailing 12-month (TTM) EPS was at Rs 1.46 per share as per the quarter ended March 2014. The stock's price-to-earnings (P/E) ratio was 78.77. The latest book value of the company is Rs 24.08 per share. At current value, the price-to-book value of the company is 4.78.

23.24 | 0 komentar | Read More

SBI, BoB seek treatment of gold deposits as part of CRR/SLR

The country's two biggest state-run lenders today pitched for treating a portion of their gold deposits as part of the mandatory cash reserve ratio (CRR) or statutory liquidity ratio (SLR), both of which banks consider as non-productive.

"Is it possible that the regulator can treat a little bit of our gold deposits as CRR or SLR? After all, gold is also a store of value," State Bank of India Chairperson Arundhati Bhattacharya said at a Gem & Jewellery Export Promotion Council banking summit.

With gold imports having pressurised the current account gap in the recent past, there is a greater need to make use of gold available in the country and make it more liquid, she stressed.

She claimed that SBI  is the largest player in the gold deposit scheme segment and is struggling to deploy the entire deposits in productive assets. "We also find that we are not able to deploy the entire gold that we get. There is really no incentive for us to go ahead and get more of these deposits now so as to make gold more liquid," she said, reiterating her demand.

CRR, at 4 percent now, is the portion of deposits parked by banks with the Reserve Bank of India that earns no interest, while SLR, at 22.5 percent, is the amount of deposits to be mandatorily invested in recognised securities such as government bonds and other liquid assets.

Also read:  SBI's Budget wishlist: Target job creation, MSMEs, infra

However, the average SLR holding in the system is 27 percent as banks make treasury play a source of boosting bottom lines when there is poor growth in advances or bad loans rise.

Concurring with Bhattacharya, Bank of Baroda  Chairman and Managing Director S S Mundra said it "makes sense" to treat a part of banks' gold deposits as CRR and SLR. "When banks are holding gold, it is of value. I think it makes sense to bring under CRR/SLR. It also fits the larger pattern that ultimately we are talking about unearthing the gold and bringing it to productive sectors in the economy as a whole. The gold that is readily available can be brought under recognition," Mundra told reporters.

Data on the gold deposits held by the two banks was not immediately available.

Successive chiefs of SBI, the country's largest lender, have been targeting the zero-interest yielding CRR component. Bhattacharya's predecessor Pratip Chaudhuri had waged a spirited public fight to abolish CRR.

Speaking at the event, Financial Services Secretary GS Sandhu acknowledged that the ministry has received several representations on ways to better utilise gold deposits and it is actively looking into the matter.

He stressed the need to monetise gold held by the public to help reduce imports of the yellow metal, which can be a drain on the nation's foreign-exchange resources and lead to a wider current account deficit (CAD).

Curbs on gold imports helped narrow the CAD to 1.7 percent of GDP at USD 32.4 billion in 2013-14 from 4.7 percent at USD 87.8 billion in 2012-13.

"So much gold is lying idle. In some ways if we can monetise this, may be our imports will come down drastically. Something in that direction we will have to think of," Sandhu said.

SBI stock price

On June 27, 2014, State Bank of India closed at Rs 2636.75, down Rs 18.75, or 0.71 percent. The 52-week high of the share was Rs 2833.85 and the 52-week low was Rs 1452.90.

The company's trailing 12-month (TTM) EPS was at Rs 145.88 per share as per the quarter ended March 2014. The stock's price-to-earnings (P/E) ratio was 18.07. The latest book value of the company is Rs 1584.34 per share. At current value, the price-to-book value of the company is 1.66.

23.24 | 0 komentar | Read More

Gas leak, blast at ship breaking yard in Bhavnagar, 5 dead

The incident comes a day after a similar blast in a GAIL gas pipeline in the East Godavari district of Andhra Pradesh. The blast in the GAIL pipeline left 14 people dead and many others injured on Friday.

Five persons were killed and ten others injured after an explosion occurred at the Alang ship breaking yard in Bhavnagar district in Gujarat.

The blast was triggered by a gas leak at plot no 140, where ship breaking working was in progress.

The injured labourers have been shifted to a hospital.

The incident comes a day after a similar blast in a  GAIL gas pipeline in the East Godavari district of Andhra Pradesh. The blast in the GAIL pipeline left 14 people dead and many others injured on Friday .

The fire in the incident had also hit nearby houses, shops and coconut plantations.

GAIL stock price

On June 16, 2014, GAIL India closed at Rs 433.25, up Rs 16.45, or 3.95 percent. The 52-week high of the share was Rs 439.00 and the 52-week low was Rs 273.00.

The company's trailing 12-month (TTM) EPS was at Rs 34.49 per share as per the quarter ended March 2014. The stock's price-to-earnings (P/E) ratio was 12.56. The latest book value of the company is Rs 225.49 per share. At current value, the price-to-book value of the company is 1.92.

23.24 | 0 komentar | Read More

PM to witness launch of ISRO's PSLV C-23 rocket tomorrow

The indigenous PSLV-C23 rocket, carrying satellites of France, Germany, Canada and Singapore, will be launched from Satish Dhawan Space Centre (SHAR) in Sriharikota.

In his first visit to Tamil Nadu after becoming Prime Minister, Narendra Modi will make a brief stopover here tomorrow enroute to Sriharikota to witness the launch of ISRO's PSLV C-23 rocket.

Modi has no official engagements in the city even as state BJP sources said they have not planned any function for the leader at the airport so far. Security has been beefed up at the airport in view of Modi's visit, police said.

The Prime Minister's special aircraft from New Delhi is expected to land at around 3.55 pm after which he is scheduled to reach Sriharikota by a helicopter following a brief stopover.

Four helicopters have been stationed here for use by the Prime Minister and his entourage, police said.

The indigenous PSLV-C23 rocket, carrying satellites of France, Germany, Canada and Singapore, will be launched from Satish Dhawan Space Centre (SHAR) in Sriharikota.

23.24 | 0 komentar | Read More

Prefer Reliance Infra, Indiabulls Power: Ajay Srivastava

Ajay Srivastava, CEO at Dimensions Consulting prefers Indiabulls Power and Reliance Infrastructure.

Ajay Srivastava, CEO at Dimensions Consulting told CNBC-TV18, "In power, two stocks that we think will do well is going to be  Reliance Infrastructure in engineering sector and Indiabulls Power . We have a big position in terms of the power sector."

He further added, " Larsen and Toubro is on everybody's books at this point and there are few smaller engineering companies in the power sector in the transmission lines. That is roughly the portfolio on which one put a lot of weightage in terms of the Budget coming through."

23.24 | 0 komentar | Read More

PNC Infratech bags Rs 441 crore contract

The contract involves rehabilitation and upgradation of the 80 kilometre road stretch of Sonauli-Gorakhapur Section of National Highway 29 in Uttar Pradesh on EPC (engineering, procurement, construction) Basis, the company said in a statement.

PNC Infratech Limited has bagged a Rs 441 crore contract from the Ministry of Road Transport and Highways for rehabilitation and upgradation of the 80 KM road on the National Highway connecting Uttar Pradesh.

Also Read: IRB Infra inks Rs 2,300 cr pact with NHAI for Haryana road

The contract involves rehabilitation and upgradation of the 80 kilometre road stretch of Sonauli-Gorakhapur Section of National Highway 29 in Uttar Pradesh on EPC (engineering, procurement, construction) Basis, the company said in a statement.

The project cost is estimated at Rs 441 Crore and is slated to be completed in two years, the company said.

23.24 | 0 komentar | Read More

Interest of B.Tech students will be kept in mind: HRD Min

Ministry officials assured the B.Tech students on behalf of HRD Minister Smriti Irani that their interest would be kept in mind and a statement in this regard would be issued by UGC. They said the matter "would be sorted out by this evening".

Allaying apprehensions about the future of B.Tech students after Delhi University rolled back four-year undergraduate programme , the HRD Ministry today said their worries would be sorted out by this evening.

Ministry officials assured the B.Tech students on behalf of HRD Minister Smriti Irani that their interest would be kept in mind and a statement in this regard would be issued by UGC. They said the matter "would be sorted out by this evening".

Hundreds of B.Tech students of Delhi University had staged a protest outside the HRD Ministry and submitted a representation demanding that the four-year B.Tech course should not be scrapped.

They said their course should not be converted to B.Sc as it would not hold any value for them. "We don't want Delhi University to scrap the B.Tech course. If B.Tech gets scrapped, our future will get  destroyed. We will not sit silent till our demands are met," Rajesh Choudhary, a protester.

A 12-member committee of Principals formed by DU vice chancellor Dinesh Singh for admissions would also submit its recommendations by this evening. Under pressure from UGC to act on its directive, DU yesterday scrapped its four-year undergraduate programme (FYUP) and reverted to the previous 3-year structure.

23.24 | 0 komentar | Read More

Nifty may dip to 7400-7350: Mohit Gaba

If Nifty do break 7480 we should move lower to 7400 may be even 7350, says Technical Analyst, Mohit Gaba.

Technical Analyst, Mohit Gaba:

The Nifty is holding up above the 7480 level, this level is proving to be a good support. We could be in for a few more days of consolidation unless we have a strong trend day (a day where we close at the highs of the session after a 2 percent plus move on the index).

On the other hand if we do break 7480 we should move lower to 7400 may be even 7350.

23.24 | 0 komentar | Read More

IFC bets on NCDs in debt financing for NBFCs

IFC was holding talks with Magma Fincorp and Cholamandalam for subscribing to NCDs of these NBFCs, he said. "Microfinance institutions (MFIs) will also get benefit of this," Agarwal said.

Non Convertible Debentures (NCDs) have recently become the preferred route of investment for multilateral agency International Finance Corporation (IFC) in debt for non banking financial companies (NBFCs).

"Recently we have started debt financing through NCDs to NBFCs. The first one is AU financiers, a Rajasthan-based NBFC of USD 25 million. We are looking at more opportunities through this route," IFC senior investment officer A K Agarwal said here today on the sidelines of a financial markets conclave by CII.

IFC was holding talks with Magma Fincorp and Cholamandalam for subscribing to NCDs of these NBFCs, he said. "Microfinance institutions (MFIs) will also get benefit of this," Agarwal said.

Asked about the reason for NCDs as the new preferred route for debt financing, Agarwal said this instrument was an option due to restrictions on ECBs for NBFCs. "As per ECB guidelines, NBFCs were not allowed to raise Dollars. IFC can only invest in Dollars as we do not have an India balance sheet. But under the NCD guidelines Dollars can be converted in spot market and can be invested in rupee lending as FIIs," Agarwal said.

He said IFC remained committed to MFIs and will continue to invest in the sector. Agarwal declined to comment on whether the agency was planning any hike in its stake in the MFI Bandhan once it was converted to a bank.

Bandhan, a city based MFI had received in-principal approval for a banking licence and IFC had close to 11 percent stake. Total exposure of IFC in India was roughly USD 4.5 billion. Of that around 1/3 was equity and 2/3 debt. Financial sector exposure is estimated to be around 30-35 per cent. "We have been investing more than a billion dollar year-on-year," Agarwal added.

23.24 | 0 komentar | Read More

TOP TEN RAINIEST CITIES IN INDIA ON FRIDAY

The cyclonic circulation near the coastal parts of Odisha and Andhra Pradesh will continue to bring good Monsoon rain over Odisha and Andhra Pradesh. Due the influence of the system, no dry spell is in the offing for East and Northeast India. According to latest weather update by Skymet Meteorology, here's a list of top ten rainiest cities in India on Friday, 27th of June.

Cities State Rainfall (in millimetres) Malda West Bengal 189 Pasighat Arunachal Pradesh 132 Jagdalpur Chhattisgarh 72 Cherrapunji Meghalaya 39 Balurghat West Bengal 38 North Lakhimpur Assam 32 Dibrugarh Assam 26 Ambikapur Chhattisgarh 24 Jalpaiguri West Bengal 23 Nellore Andhra Pradesh 22  

By: Skymetweather.com

23.24 | 0 komentar | Read More