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Gloomy IPO mkt wipes out 70 pc of merchant bankers' fee

NEW DELHI: Merchant bankers have been hit hard by the fall in activities in the Initial Public Offering market, coupled with the downslide in the BSE Pick stocks on fundamentals Fiscal & revenue deficit Short-term plans are safe bets Five facts on stock falls Volatility: Bet on big guns
domestic bourses in 2008, with their fees plunging 70 per cent in a year.

During 2008, there was a clear plunge in the merchant banking fees to Rs 230 crore, a drop of 70 per cent from Rs 771 crore in the year 2007, according to data compiled by SMC Capitals, the brokerage arm of SMC Global.

The slide in the stock market since early 2008 has seen the IPO market losing sheen, as companies became jittery about hitting the capital market.

Last year the Bombay Stock Exchange benchmark Sensex skid nearly 50 per cent after scaling its all-time high level of 21,206.77 points on January 10, 2008.

The total IPO volume in 2008 dropped 47 per cent to Rs 18,292 crore year-on-year, from Rs 34,386 crore in 2007.

Merchant Banking Fees includes lead management fees as well as underwriting and selling commission.

Gloomy IPO mkt wipes out 70 pc of merchant bankers' fee- IPOs-Markets-The Economic Times
 
FIIs take home Rs 48k cr in ’08-09


Fiscal 2008-09 , which ended on Tuesday, saw FIIs taking out a whopping Rs 47,706 crore from the Indian stock market - that's around 90% of the Rs 53,000 plus crore invested by them in fiscal 2007-08 .


if u ar thinking its april fools joke --then its no.
 
LSE in talks to buy MCX-SX stake: Report
MUMBAI: The London Stock Exchange is in talks to buy a stake in new Indian stock exchange MCX-SX, a daily newspaper reported on Monday.


The newspaper said a spokesman for the LSE would not comment on the discussions, but told the paper: "We have a strong commitment to the Indian market and feel certain that the country will continue to be at the centre of our international business."

MCX-SX currently offers currency derivatives trading and is awaiting regulatory approval to begin equity trading.

Financial Technologies owns 49 per cent of MCX-SX, while group firm Multi Commodity Exchange (MCX) holds 51 per cent.
 
India Inc stops fresh recruitments: Assocham

NEW DELHI: Indian corporates have virtually stopped fresh recruitments to cut costs in the wake of global credit crunch, says a study by industry body assocham


Out of 150 Human Resource professionals interviewed, 90 per cent said that "there is a virtual ban on fresh recruitments in the private sector as attrition rate has almost subsided in all sectors of economy."

The study said that as the global slowdown is getting deeper, HR professionals are under severe pressure for working out innovative ways and means to cut unnecessary organisational frills and reduce fringe benefits such as bonus and other allowances, besides curtailment in administrative costs.

In order to avoid layoffs, HR professionals have advised managements to cut wages in the range of 10-15 per cent at middle and senior-middle levels and 25-35 per cent at senior levels, it said.

"Efforts are being put in the direction that only 5-7 per cent wage cuts are being recommended for lower-level employees," it said, adding that the focus of firms is more towards cutting administrative costs such as optimum use of stationery, conveyance and reduced electricity consumption.
 
Job crisis to be prolonged & severe than expected: ILO

NEW DELHI: Even as the Centre continues to maintain officially that only about half a million jobs were cut in reaction to the economic downturn

since September last year and sections of the government continue to assert that jobs recruitments would resume by mid 2009-10, the International Labour Organisation (ILO) has taken a diametrically opposite view on a recession/downturn-led job crisis in the next year, dubbing it a prolonged and severe one.

This follows recent projections by ILO study that projected that nearly 90 million net new jobs would be needed over 2009-10 to absorb new entrants in the labour market and to avoid a prolonged jobs gap. In earlier financial crises, the labour market recovered only 4 to 5 years after the economic recovery.

The ILO survey also found that the stimulus packages lean heavily toward financial bailouts and tax cuts instead of job creation and social protection and noted that on average, fiscal stimulus packages for the real economy are five times smaller than financial bailout packages.

Based on that , ILO DG Juan Somavia called from Geneva last week for a global jobs pact to forestall the imminent and serious job crisis that would lead to a massive increase in unemployment and working poverty. The appeal followed a high-level, tripartite discussion at the ILO governing body last Monday, during which International Monetary Fund (IMF) Managing Director Dominique Strauss-Kahn said increased cooperation between the IMF and the ILO was crucial in addressing the global economic crisis.




We need to implement a coherent and coordinated job-oriented recovery strategy, based on sustainable enterprises, as soon as possible, Mr. Somavia said. If stimulus efforts are delayed the jobs crisis will be prolonged and severe and employment may only start to recover as from 2011.

Mr Somavia described international coordination to tackle the crisis as weak, and said the financial, trade, economic, employment and social roots of the global crisis are interlinked and so must be the policy responses. The forthcoming International Labour Conference in June this year will focus on tackling the Global Jobs Pact.

The discussion was based on a study by the ILO’s International Institute for Labour Studies entitled The Financial and Economic Crisis: A Decent Work Response, that said that demographic projections suggest that nearly 90 million net new jobs would be needed over 2009-10 to absorb new entrants in the labour market and avoid a prolonged jobs gap.
 
Gloomy IPO mkt wipes out 70 pc of merchant bankers' fee

NEW DELHI: Merchant bankers have been hit hard by the fall in activities in the Initial Public Offering market, coupled with the downslide in the BSE Pick stocks on fundamentals Fiscal & revenue deficit Short-term plans are safe bets Five facts on stock falls Volatility: Bet on big guns
domestic bourses in 2008, with their fees plunging 70 per cent in a year.

During 2008, there was a clear plunge in the merchant banking fees to Rs 230 crore, a drop of 70 per cent from Rs 771 crore in the year 2007, according to data compiled by SMC Capitals, the brokerage arm of SMC Global.

The slide in the stock market since early 2008 has seen the IPO market losing sheen, as companies became jittery about hitting the capital market.

Last year the Bombay Stock Exchange benchmark Sensex skid nearly 50 per cent after scaling its all-time high level of 21,206.77 points on January 10, 2008.

The total IPO volume in 2008 dropped 47 per cent to Rs 18,292 crore year-on-year, from Rs 34,386 crore in 2007.

Merchant Banking Fees includes lead management fees as well as underwriting and selling commission.

Gloomy IPO mkt wipes out 70 pc of merchant bankers' fee- IPOs-Markets-The Economic Times
 
Rs 33K cr MSS cash not to be converted: RBI
Mumbai: The Reserve Bank of India, has now decided not to transfer the balance amount of Rs 33,000 crore from the MSS cash account to the normal cash account of the Government of India in the current fiscal year in view of its comfortable cash position.

Based on the emerging fund requirements of the Government, Rs 33,000 crore of MSS will be de-sequestered (sequestering means--->to make temporary possession of as a security, by legal authority) against the approved market borrowing programme or bought back in the fiscal year 2009-10, the RBI said.

It may be recalled that following the amendment to the Memorandum of Understanding on the Market Stabilisation Scheme (MSS), it was decided that an amount of Rs 45,000 crore would be transferred in installments from the MSS cash account to the normal cash account of the Government of India by March 31, 2009.
 
BU under Rs 6 crore-deficit

BANGALORE: Unveiling its budget for 2009-10, the Bangalore University(BU) has revealed that it is facing a budget deficit of Rs 6 crore for the upcoming financial year. As per budget estimates released on Monday at the Academic Council meeting, expenditure was estimated at Rs 135 crore, while revenue was estimated to be Rs 129 crore. BU Vice-Chancellor NPrabhu Deva said that the University will have to raise its college affiliation fee, which was one of the lowest among universities in the state. “College affiliation fees at Mysore University is five times our fees. If the state government will not sanction the rise in affiliation fee, then they must provide grants to meet the deficit,” he said.
 
Nabard refinance target touches Rs 522 crore
Nabard has exceeded its refinance target by Rs 37 crore, to Rs 522 crore last fiscal, said P Mohanaih, chief general manager, Nabard, West Bengal.

Nabard is likely to set a refinance target of Rs 550 crore for commercial, regional rural and co-operative banks in West Bengal for 2009-10. The surge in demand is in view of an increase in the number of eligible farmers for agricultural loans after last year’s debt waiver scheme.

In most states, Nabard had achieved an 80 per cent target disbursement in December, while in West Bengal, it had refinanced the entire target amount of Rs 485 crore by the end of 2008 calender year.

Nabard refinance target touches Rs 522 crore
 
Nabard refinance target touches Rs 522 crore
Nabard has exceeded its refinance target by Rs 37 crore, to Rs 522 crore last fiscal, said P Mohanaih, chief general manager, Nabard, West Bengal.

Nabard is likely to set a refinance target of Rs 550 crore for commercial, regional rural and co-operative banks in West Bengal for 2009-10. The surge in demand is in view of an increase in the number of eligible farmers for agricultural loans after last year’s debt waiver scheme.

In most states, Nabard had achieved an 80 per cent target disbursement in December, while in West Bengal, it had refinanced the entire target amount of Rs 485 crore by the end of 2008 calender year.

Nabard refinance target touches Rs 522 crore
 
Maruti will not sell 800 in 11 cities from 2010

NEW DELHI: Maruti Suzuki has decided to stop selling its 800 model, that changed the face of the Indian car market, from 11 cities, including the four metros, from 2010 due to tighter emission norms. Maruti chairman RC Bhargava said the company will also stop selling Omni van in cities where stricter Bharat Stage IV (BSIV) norms will be implemented from next year.
 
IRDA makes it easier to renew health insurance

NEW GUIDELINES issued by the Insurance Regulatory and Development Authority (IRDA), on Thursday (April 2), made it mandatory for an insurance company to renew a health insurance policy, irrespective of the payments already made out in claims.

These new rules will come in handy for the old and those with medical conditions as they faced a lot of problem while renewing their health policies.

IRDA has made it clear that delays of up to 15 days from the renewal date will also need to be condoned by the insurers and they have to cover benefits given for pre-existing diseases.
The new guidelines shall be applicable from June 1, 2009
 
US housing market shows slight rebound

EVEN AS new home sales continue to plummet, a number of contractors have braved the crisis and push through with their building projects. Reports showed a slight increase in building permits and housing starts last month, both in contrast with the expected decline for the first quarter.

The US Department of Commerce reported that February’s housing starts at 583K, an increase of 22.2 per cent on a month-over-month basis. The figure was expected to drop to about 450K and readings from the previous months were revised from 466K to 477K.
 
Medical tourism: India ranks second
A RESEARCH study has revealed the fact that India ranks second in medical tourism throughout the world. Interestingly, India spends only 1.2 per cent of its Gross Domestic Product on health issues.

But the country takes proper care of foreign patients. The study says that the Indian Hospitals treated 4.5 lakh foreign patients in 2007. Thailand tops the list with a record number of 12 lakh.
 
Former petroleum minister Mani Shankar Aiyar today said the US government was quite happy at his exit from the petroleum ministry in United Progressive Alliance-I government (UPA), but did not have a role in getting him out of the all important portfolio.

Answering questions at a press conference here, Aiyar said, "Well, US was unhappy with my stand on the Iran-Pakistan-India pipeline, of which I was a strong advocate. They also disliked me because I openly opposed their intervention in Afghanistan and Iraq."

"In fact, I was also in favour of extending the pipeline right up to China so that the latter would keep a check on any kind of mischief by Pakistan," he said.

Aiyar, now a Rajya Sabha member, was a minister in the United Progressive Alliance-I 2004-2009 and held the portfolio of petroleum and natural gas ministry from 2004-2006.
 
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