Electronic Learning is popularly known as e-Learning, which refers to computer oriented learning. In the current era of jet age, where every single aspect has taken a new dimension, education or learning process has also moulded itself with the latest technologies. Technically this is known as Advanced Learning Technology (ALT). This sort of technology deals with both methodologie. Generally, in e-learning there are several techniques and the combination of these techniques is known as moodle. Moodle is often referred as Course Management System (CMS), as because different course material is randomly used like mp3, images that are scanned and many more. E-learning provides us with a virtual learning environment (VLE), which helps one to grab several information on different aspects world wide without being physically present in such places. The VLE is many times linked with Managed Information System to offer a Managed Learning Environment.
Tuesday, February 26, 2008
Thursday, February 21, 2008
HDFC taking up Centurian Bank of Punjab
The Indian Banking sector is about to achieve a new dimension. HDFC Bank, very soon is about take the charges of the Centurian Bank of Punjab, which comprises of all stock deal. However, this merger will still remain under the shed of ICICI Bank, the country's largest private sector bank in terms of assets but is definitely larger from the AXIS Bank. The management of both the banks taking major concerns for the mergers. This merger would render a different meaning to the banking sector in India.
Monday, February 18, 2008
DIPP may keep vigilance on foreign PE
Now investments of overseas private equity (PE) funds in India will be under keen vigilance of the Department of Industrial Policy and Promotion (DIPP). To implement such vigilance policies, the DIPP may take the aid of SEBI, the capital market regulator. The wise step has been initiated to check the mal-practices of asset stripping, which is responsible for eroding the value of several companies. Currently, foreign investments are present in all the sectors, through the automatic route, therefore the primary way of sourcing information is to ask foreign PE funds to report their investment strategies.
This initiative will definitely be beneficial for the domestic companies as because it has been witnessed that foreign PE funds take over management rather that restraining themselves as financial investors. From now onwards, with the initiation of the vigilance by the DIPP, Government would supervise the outcome of such management. Therefore, it would be a real tough time for the foreign PE funds to act according to their whims.
This initiative will definitely be beneficial for the domestic companies as because it has been witnessed that foreign PE funds take over management rather that restraining themselves as financial investors. From now onwards, with the initiation of the vigilance by the DIPP, Government would supervise the outcome of such management. Therefore, it would be a real tough time for the foreign PE funds to act according to their whims.
Wednesday, February 13, 2008
Art Funds now under SEBI's control
Securities and Exchange Board of India (SEBI) stated that its certificate of registration is mandatory for setting up art funds. Art funds are collective investment schemes and as per Section 11AA (2) of the Sebi Act, 1992: A company having the certificate of registration by Sebi can initiate a collective investment scheme. Moreover according to Section 12 (1B) of the Sebi Act, no person shall sponsor or cause to be sponsored or cause to be carried on a collective investment scheme unless he obtains a certificate of registration from Sebi. This initiative has been taken in line with the growing wealth in India and surging demands for Indian art in several international markets. It has been witnessed that innumerable art funds are cropping up in these markets and huge money is being accumulated and brought back to the country. It has been estimated that the industry size is within Rs. 300 crore to over Rs. 1000 crore.
It’s a tough time for IT
Information Technology, the pioneer of the development process in the present era, is facing a stringent time for its growth process. The growth rate of the sector for 2007 was only 28% and in the current fiscal it has been estimated to be around 24% to 25 %. There are few valid reasons behind such poor performance of the sector and the most vital among them is the recession in the United States of America. Analysts, from different financial institutions are sharing the same concern that the first part of the present year may witness few more losses by the IT and will start to recover from the second part of the year. Some of the important players in the sector have postponed their respective plans for the uncertain scenario prevailing in the sector. This has affected adversely to the industry and the growth process has taken a back seat currently.
Tuesday, February 12, 2008
Rise in Steel Prices.
After a long span of time, the international steel prices have started rising with a long pace leaving the domestic prices of steel far behind. The international price for hot rolled steel rose to $440 per tonne from $400 per tone. This price has easily reached to $500 per tonne after 15 % import duty payable on the above price, many times. Following such rise in international steel prices the domestic prices have also hiked to 18,000 to 23,000. This sudden rise in steel prices globally is due to scarcity in iron ore, steel scrap and coke. A huge global concern has been witnessed for the price hike and immediate measures have started initiating from different countries to reduce the prices.
Monetary Review
Reserve Bank of India furnished its third quarter review of monetary policy for the year 2007-08 on 29th January, 2008. Following the 75 basis point cut by the US Fed, it was expected that RBI would also come out with significant rate cuts. However, to everyone's surprise, it kept the Bank Rate (6 per cent), Reserve Repo Rate (6 percent), Repo Rate (7.75 per cent) and Cash Reserve Ratio (7.75 percent) unchanged. The overall real GDP growth estimation for 2007-08 has been retained to 8.5 per cent. It can be deduced that the rates have been kept unchanged in anticipation to a probable inflationary pressure and unstable international scenario. To keep the domestic economy stable, inflation rate will be strictly maintained between 3 to 5 per cent.
As per the review, primary articles registered a year-on-year increase of 3.9 per cent as against 9.5 per cent last year. Manufacturing inflation has been recorded to be 3.9 percent on January 2008, as compared to 5.8 percent last year. Consumer price index (CPI) for industrial workers (IW) declined by 5.5 per cent on a year-on-year basis in November 2007 from 6.3 percentage of change a year ago.
Wednesday, February 6, 2008
Market again in the clutches of Bear
On Wednesday, 6th of February, 2008, the Indian stock market witnessed another laggered trading session. It opened the day in the negative regime and also closed in the same. The cues from the Gklobal markets were also weak. Selling pressure was observed in sectors like Auto, Metal, IT, Bank and Capital Goods. The NSE's Index, Nifty hit intra-day high of 5470 and low of 5257 and BSE's index Sensex touched its intra-day high of 18,274 and a low of 17,936.
RBI's intervention in Foreign Exchange derivatives and FEMA
The Reserve of Bank of India (RBI) being the premier financial regulator, recently came out with stringent policies in Foreign exchange derivatives.
The RBI very soon may tighten the norms for currency derivatives as several banks and companies are facing losses with calls on currency movements following speculative misinterpretation of forex direction. The Reserve Bank may restrict the foreign exchange derivatives for risk management purpose to safeguard the ailing companies and not for regular day trading. The banks may also be empowered by the apex bank to audit the papers of corporate client's risk management practices. The central bank may also keep vigilance on the use of foreign exchange, so that they are used only for the purpose of risk management and not for speculative purposes.
The central bank has also modified FEMA (Foreign Exchange Management Act) regulations and plugged few of its loopholes. Some of the Indian companies were misutilising these loopholes by raising funds in abroad through automatic FDI route. Non-listed real estate companies have been witnessed in following this technique to avoid regulation on external borrowings. After raising money from foreign sources they do compensate by issuing a fraction of equity to those lenders and return back rest of the fund. To avoid capital influx through such lacuna, RBI has issued notice to refund any sum, taken for the equity allotment purpose to foreign investors and NRIs, within 180 days from the date of receiving in case of non-allotment. The effort from central bank is meant for making monetary regulations more effective.
The RBI very soon may tighten the norms for currency derivatives as several banks and companies are facing losses with calls on currency movements following speculative misinterpretation of forex direction. The Reserve Bank may restrict the foreign exchange derivatives for risk management purpose to safeguard the ailing companies and not for regular day trading. The banks may also be empowered by the apex bank to audit the papers of corporate client's risk management practices. The central bank may also keep vigilance on the use of foreign exchange, so that they are used only for the purpose of risk management and not for speculative purposes.
The central bank has also modified FEMA (Foreign Exchange Management Act) regulations and plugged few of its loopholes. Some of the Indian companies were misutilising these loopholes by raising funds in abroad through automatic FDI route. Non-listed real estate companies have been witnessed in following this technique to avoid regulation on external borrowings. After raising money from foreign sources they do compensate by issuing a fraction of equity to those lenders and return back rest of the fund. To avoid capital influx through such lacuna, RBI has issued notice to refund any sum, taken for the equity allotment purpose to foreign investors and NRIs, within 180 days from the date of receiving in case of non-allotment. The effort from central bank is meant for making monetary regulations more effective.
Advantages and Disadvantages of Investing in Stock Market
In order to raise capital, several companies sell parts of their company’s share to the public. This is known as share and a number of shares is known as stock. A stock market is a place where the purchase and sell of stocks take place; this transaction take place between clients and the stock exchange. The price of a share is directly proportional to the demand of the share. People invest in stock market in order to earn more returns. In stock markets there are huge returns associated with high risks too. Investments in the stock market are increasing day by day. One, before investing in the market should have the following advantages and disadvantages of stock markets in mind.
Advantages
In the stock market, in the present scenario a customer can have multiple choices of stocks and accordingly he can choose the best that suits his investment plans.
Investments in stocks provide huge gains, unlike other investments.
Legal liability for stocks are less; stock holders, who take no active parts in company’s day to day affair, are prohibited against any liability cropping out from the company’s actions.
Disadvantages
Investing in a stock of a company will surely lead to some rights to the stock holder. However, these rights are limited; there are some decisions taken by the company about which the stock holders remain unaware.
Often the stock prices remain volatile and at this juncture one should be very aware before investing in such. Therefore, a clear knowledge about the company and its current financial status should be kept in minimizing risks.
Value of stocks at many instances change without any valid reasons. This is often becomes frustrating for the shareholders but one should have utmost patience in such cases.
In stock markets prices of the stocks are erratic and never stable. Thus in order to invest, one should be very much clear about his own investment plans and should also be apparent with the company’s profile in which he plans to invest.
Advantages
In the stock market, in the present scenario a customer can have multiple choices of stocks and accordingly he can choose the best that suits his investment plans.
Investments in stocks provide huge gains, unlike other investments.
Legal liability for stocks are less; stock holders, who take no active parts in company’s day to day affair, are prohibited against any liability cropping out from the company’s actions.
Disadvantages
Investing in a stock of a company will surely lead to some rights to the stock holder. However, these rights are limited; there are some decisions taken by the company about which the stock holders remain unaware.
Often the stock prices remain volatile and at this juncture one should be very aware before investing in such. Therefore, a clear knowledge about the company and its current financial status should be kept in minimizing risks.
Value of stocks at many instances change without any valid reasons. This is often becomes frustrating for the shareholders but one should have utmost patience in such cases.
In stock markets prices of the stocks are erratic and never stable. Thus in order to invest, one should be very much clear about his own investment plans and should also be apparent with the company’s profile in which he plans to invest.
How to Choose a Stock Broker?
The advent of technology and automation has spread their wings in every sphere. Similarly in the field of stock market it has left a deep impact. The “open out-cry system” that prevailed few decades ago in the security market has been replaced by computer and broking system. The brokers are the middle man between a customer and a stock exchange. The question may arise that what is the source of income of the brokers? The answer is a simple one; the brokers earn their income through commissions on every security transaction. The broker charges a stipulated amount, known as brokerage from the customer at every purchase and sell that they make on security transactions. The brokerage is charged against the services that a broker renders to its customers. However, in this respect it should be kept in mind that a broker or a dealer does not make any money by setting a long-term financial plan for the customer. Nevertheless, in the present market situation most of the brokers in India render options to their customers with long term and short term investment guidelines to their respective customers.
This was all about a brief introduction of a broking firm; now the most important question that crops up is how to choose a stock broker? To play safe in the stock market you should get hold of a broking firm keeping the following guidelines in mind.
The very first thing that you should look for while choosing a stock broker is whether it is registered under the Securities and Exchange Board of India (SEBI).
If the Broker is registered under SEBI then it remains accountable to you at all point of time. If ever you face any difficulty with a particular broker then you can straight away intimate such to SEBI.
The next important point that you should keep in mind is your investment goals and services that you are looking for. Different brokers offer innumerable services, which may not satisfy your demands. Thus, before going for a stock broker, go through their service details.
There are mainly two types of brokers; discount brokers and full-service firms. Generally, the discount brokers often engage themselves in buying and selling with a low commission rate but hardly render any advice to their customers. On the other hand full service brokers have the potential to operate with you on different investment policies. In such ways you get the opportunity to implement your plans more effectively. Thus keeping these two types of brokers in your mind, you need to make a wise and balance judgment with your plans and go accordingly.
The most effective procedure that you can initiate while selecting a broker is applying the referral procedure. In simple words it means consult your friends and relatives who are already registered under a broker about the best broker that you can go for.
Now let’s get into some of the guidelines while choosing an accountant executive. An accountant and a dealer are the two persons who maintain every transaction in your account. These two persons are required to keep you up to date with the market situations and giving you the right suggestion accordingly. Thus your accountant and dealer should have the following few features.
Easy to talk to and comprehendible
Possess the potential to explain things properly
Doesn’t create pressure on you with any issues
Heed attention to your suggestions too
Coming back to the brokers; you should also remember to make a thorough inquiry about the investment philosophy of a particular broker that you choose and its procedure to handle clients.
Each broking house does the business with a profit making motive. Therefore, the broking house that you choose should make their compensation rate, fee structure and minimum purchase requirements apparent to you.
You should also find out how often the broking house that you have chosen checks in with you and with its other clients.
Last but not the least, always ask your broking house to provide you with few names of clients, who have the same background and investment plans same as you.
This was all about a brief introduction of a broking firm; now the most important question that crops up is how to choose a stock broker? To play safe in the stock market you should get hold of a broking firm keeping the following guidelines in mind.
The very first thing that you should look for while choosing a stock broker is whether it is registered under the Securities and Exchange Board of India (SEBI).
If the Broker is registered under SEBI then it remains accountable to you at all point of time. If ever you face any difficulty with a particular broker then you can straight away intimate such to SEBI.
The next important point that you should keep in mind is your investment goals and services that you are looking for. Different brokers offer innumerable services, which may not satisfy your demands. Thus, before going for a stock broker, go through their service details.
There are mainly two types of brokers; discount brokers and full-service firms. Generally, the discount brokers often engage themselves in buying and selling with a low commission rate but hardly render any advice to their customers. On the other hand full service brokers have the potential to operate with you on different investment policies. In such ways you get the opportunity to implement your plans more effectively. Thus keeping these two types of brokers in your mind, you need to make a wise and balance judgment with your plans and go accordingly.
The most effective procedure that you can initiate while selecting a broker is applying the referral procedure. In simple words it means consult your friends and relatives who are already registered under a broker about the best broker that you can go for.
Now let’s get into some of the guidelines while choosing an accountant executive. An accountant and a dealer are the two persons who maintain every transaction in your account. These two persons are required to keep you up to date with the market situations and giving you the right suggestion accordingly. Thus your accountant and dealer should have the following few features.
Easy to talk to and comprehendible
Possess the potential to explain things properly
Doesn’t create pressure on you with any issues
Heed attention to your suggestions too
Coming back to the brokers; you should also remember to make a thorough inquiry about the investment philosophy of a particular broker that you choose and its procedure to handle clients.
Each broking house does the business with a profit making motive. Therefore, the broking house that you choose should make their compensation rate, fee structure and minimum purchase requirements apparent to you.
You should also find out how often the broking house that you have chosen checks in with you and with its other clients.
Last but not the least, always ask your broking house to provide you with few names of clients, who have the same background and investment plans same as you.
Easier Investment norms for Insurance Companies
Insurance is one of the frontline investment options not only as a life-risk hedging instrument but also because it is considered as a tax saving product. The investment advisory committee of the Insurance Regulatory and Development Authority is planning to give more freedoms to the insurance companies. The investment norms will be more flexible in accordance to the existing ones. These companies will become more flexible in taking discretionary steps in investments and in other relevant spheres. Policies are also been taken to facilitate the insurance companies to invest in liquid instruments. The present limit to invest in Gilt funds will be increased to 10-15 percent. Insurance companies will be allowed to invest in the instruments floated by the infrastructure developers. The infrastructure investment norms for the insurance companies will be in-line with that of the banks. Currently, several insurance companies are investing in different instruments like commercial paper and mortgages. According to the new recommendations the companies can invest in fixed income and equity derivatives. The derivative instruments will only be used for the purpose of hedging the portfolios’ risk and will not be used for trading purposes. These new relaxed investment norms are expected to help insurance companies in better management of funds and would encourage growth in the industry.
RBI on ECBs
Reserve Bank of India (RBI) always keeps a keen vigilance on External Commercial Borrowings (ECBs). Most of the companies have a common tendency to raise ECB funds to compile their projects. Huge inflows of ECB funds lead to inflation and become a threat for the domestic economy. Hence, the financial regulators are always very stringent about external borrowings. Astonishingly, the Central Government along with RBI is planning to relax the ECB norms for the Ultra Mega Power Projects (UMPPs). It is quite probable from the Government’s side to relax certain ECB norms which are very much rigid in nature, presently. The existing ECB norms bar a particular company from using the advance, surpassing US$ 20 million for meeting rupee expenditure.
With the proposed relaxation on ECBs, a company can not only accumulate low cost funds from different countries but can also utilize the sum securing cost-effective benefits.
The motive of the Government behind making the ECB flexible is to revamp the power sector. It has been estimated that the power sector needs an investment of Rs. 10 lakh crore in the forthcoming 11th plan. Companies like Reliance Power and some others are of the view that the restrictions in the sector are the most significant impediments for its rapid development.
Power sector is always among the most eminent sectors and hence its rapid development is the major concern for the Government. In achieving such objective the Government has already started taking different steps and in this process the relaxation of ECB funds has got the priority.
With the proposed relaxation on ECBs, a company can not only accumulate low cost funds from different countries but can also utilize the sum securing cost-effective benefits.
The motive of the Government behind making the ECB flexible is to revamp the power sector. It has been estimated that the power sector needs an investment of Rs. 10 lakh crore in the forthcoming 11th plan. Companies like Reliance Power and some others are of the view that the restrictions in the sector are the most significant impediments for its rapid development.
Power sector is always among the most eminent sectors and hence its rapid development is the major concern for the Government. In achieving such objective the Government has already started taking different steps and in this process the relaxation of ECB funds has got the priority.
3G Spectrum Dispute
The Indian telecom sector has been caught within the clutches of the spectrum dispute. Demand for fresh spectrum is gaining momentum as the over all cellular industry is experiencing steady increase in number of cellular users. Along with that Indian GSM companies are going forward with the rolling out of 3G technologies. This standard requires more bandwidth of radio frequency for better transfer of data. DoT has already declared their strategy for the auction of 3G spectrum. The dispute mainly started when some providers like Vodafone Essar, Bharti and others wanted new players to join the rally in acquiring spectrum, provided that there is sufficient stock for the formers. However, Reliance Communication asked existing players, sitting on excess spectrum to return the same, so that the players waiting on the queue get a chance to enter the industry. DoT and the Defence Ministry negotiated to release some of the spectrum they are using. With that free spectrum, Telecom Ministry decided to initiate fresh auctions. This initiative has aroused the concern regarding the efficiency of auction process and the Central Government is asking for optimum collection as fees from the 3G spectrum allocation.
This dispute is affecting the market sentiment on those telecom companies. More ambiguity on the issue will deter not only the growth of the sector as a whole but will also adversely affect the fresh capital accumulation in the business.
This dispute is affecting the market sentiment on those telecom companies. More ambiguity on the issue will deter not only the growth of the sector as a whole but will also adversely affect the fresh capital accumulation in the business.
Subscribe to:
Posts (Atom)
