Breaking News & Stocks

NYSE arm picks up 5% stake in MCX
16 Feb 2008, 0113 hrs IST,TNN

MUMBAI: NYSE Euronext, the world's leading and most diverse financial market group, has signed a binding agreement to buy a 5 per cent equity stake in Multi Commodity Exchange (MCX), India's largest commodity bourse, for $55 million.

The 5 per cent equity investment is the maximum equity interest permitted by foreign investors in derivative exchanges under Indian law. Financial Technologies India, which controls the MCX and NYSE Euronext, said they expect to complete the deal in the first half of 2008.

MCX MD Jignesh Shah said Financial Technologies' stake in the bourse would come down to 32 per cent after the sale, while holdings of foreign direct investors would rise to 22 per cent.

Modi threatens SRK owned Kolkata with `pullout’


Zeecric Bureau

Mumbai, Feb 15: Indian Premier League chairman Lalit Modi has threatened the Cricket Association of Bengal of replacing the Shah Rukh Khan owned Kolkata team with a team Ahmedabad, if it fails to adhere to the rules and regulations of the BCCI backed IPL event which is set to roll in April this year.


In a strongly worded email to the CAB president Prasun Mukherjee, Modi said: "We cannot and will not allow one city to derail the whole process."

His reply was in response to a number of queries raised by Mukherjee, including the key one on the allotment of tickets.

"There are three groups of people who are getting adversely affected, as far as the distribution of tickets is concerned. Clubs, who as members were entitled to a certain quota of club house tickets, complimentary tickets and priced tickets (which they used to buy); the 31,000 associate members, honorary members and life members, who used to get complimentary tickets, as per Cab rules; and Companies, with whom CAB has contracts for boxes, have the impression that they are entitled to their boxes during all major matches at the Eden Gardens. They are not going to get their boxes," Mukherjee had said.

To this Modi simply said, "You will only get 20% tickets against all categories."

Incidentally, the other stadiums might also face a similar problem.

Mukherjee also hinted that companies and associate members may go to court in case they are not allotted tickets.

The CAB president has already consulted some lawyers and they have raised the following queries:

The IPL is a body set up by the BCCI by amending its constitution. Superintendence and control over the IPL, its affairs and finance rests with BCCI.

Then, are we right in saying the BCCI have nothing to do with the IPL organised matches? And if not allotment by IPL/BCCI, then in what manner did these matches come to Eden Gardens?

Are we correct in saying that CAB is not organising the matches? Then, who (IPL/Red Chilly) are the organisers? It should be kept in mind that to keep things right in the legal perspective, all correspondence/applications to different govt departments for various permissions and support and payment of charges etc will have to be made by the concerned organisers.

He was, however, quick to offer a suggestion too: It may be advisable to quickly bring in an amendment to the above CAB rule by way of an addendum, that "None of these will, however, apply to games organised under the control of IPL, created by way of an amendment of the BCCI Constitution on ......"

He further adds: "The amendment can be made only by 3/4th majority in a special AGM, preceded by a working committee resolution."

To this Modi replied, "If you need to call AGM, then do so right away. We cannot and will not allow one city to derail the whole process."

Mukherjee has also sought clarification on when CAB will receive its entitled fund of Rs 10 crore and how the sum has been arrived at. The points raised by Mukherjee also seem relevant for matches going to be held in other cities like Bangalore and Mumbai
Meanwhile, the CAB has called an urgent working committee meeting on Monday to discuss the distribution of tickets and other issues related to the IPL. The working committee will also decide the date for a special general body meeting to seek the approval of the 121 affiliated units.

According to the agreement, 20 per cent of the seats in each of the blocks will be allotted to the CAB while the remaining will be up for sale. The special general body meeting is likely to be a stormy affair with members opposing the rule.

“The CAB argument is that it’s a private tournament and not a BCCI allotted game. So the normal practice for ticket allocations will not be followed. Then how do you compensate the members? A grant of Rs 1 lakh is peanuts. Various legal and other issues will also be raised at the SGM. The Eden lease hasn’t yet been renewed and the CAB can’t expect the members to remain silent,” said a member.

If the CAB fails to get the backing of the members at the SGM, then one of the centres from among Cuttack, Ahmedabad, Gwalior and Kanpur will be given the go ahead

Lee not to play against India tomorrow
Perth, Feb 16

Concerned about the increased workload on pace spearhead Brett Lee, the Australian team management has decided to rest the speedster from tomorrow`s tri-series cricket match against India in Adelaide.

Lee will not travel to Adelaide with the rest of the Australian team and missing tomorrow`s match will give him almost a week-long break before the world champions plays their next match, against Sri Lanka on February 22 in Melbourne.

"Brett lee will not travel with the Australia team to Adelaide and will not play in tomorrow`s match as his workload is managed heading into the second half of the Commonwealth Bank series," cricket Australia said in a statement today.

Lee, who has been playing almost non-stop cricket ever since recovering from an ankle injury in the later half of last year, has been in terrific form in the series and has taken eight wickets in four matches at an impressive average of 19.

Cricket Australia had stated before the series that Lee would be rested in a few matches to balance his workload which has increased substantially following retirement by champion bowler Glenn Mcgrath.

Australia has won two and lost one match in the series so far.

Bush signs economic stimulus package

Washington, Feb 14: Seeking to give a "booster shot" to the ailing US economy, President George W Bush has signed a legislation that will put more than USD 152 billion into the pockets of Americans.

Under the Economic Stimulus Act of 2008, rebate cheques to more than 130 million taxpayers and low-income groups will go out beginning may, and businesses would get tax breaks for investing in new plants and equipment.

"I know a lot of Americans are concerned about our economic future. Our overall economy has grown for six straight years -- but that growth has clearly slowed," Bush said yesterday.

Showing bipartisanship in the face of a looming recession, the democratic-controlled Congress swiftly approved the measure within weeks.

And Bush said the bill proved "we could come together to provide a booster shot for our economy -- a package that is robust, temporary, and puts money back into the hands of American workers and businesses."

"Helping our economy requires us to take action, it is equally important that we not overreact. Our economic success is not the result of the wisdom of politicians in Washington, DC -- but of the collective wisdom of the American people," Bush said during a signing ceremony at the White House.

The President said that over the past seven years, the economy had absorbed shocks such as recession, corporate scandals, terrorist attacks, global war, and it was capable of emerging "even stronger".

"In a dynamic market economy, there will always be times when we experience uncertainties and fluctuations. But so long as we pursue pro-growth policies that put our faith in the American people, our economy will prosper and it will continue to be the marvel of the world," he added.

Officials say rebate checks of up to USD 600 for individual taxpayers and USD 1,200 for couples, plus USD 300 dollars for dependent children, could boost consumer spending and energise the economy.

The plan itself is seen by key lawmakers as only the first in a series of steps needed to factor in the longer term economic problems and challenges.

Senate majority leader Harry Reid had said that the Senate would be considering "another stimulus package or two" on housing and other issues with legislation being ready by the end of this month.

Bureau Report

Ponting struggling with captaincy burdens: Gilchrist
Sydney, Feb 16

Australia captain Ricky Ponting may be struggling to cope with the demands of a long summer in the spotlight and a hectic schedule, according to his deputy Adam Gilchrist.

Ponting averages just over 10 with the bat in the current Tri-Series with India and Sri Lanka.


"I am sure he, like all of us, will have been worn down by a lot of the focus and a lot of the issues that have been around," Gilchrist told reporters.

"We seem to have jumped from one thing to another, whether they be highly controversial or just issues that need to be dealt with," added Gilchrist, who made a century to lead Australia to victory over Sri Lanka in Perth on Friday.

"Things like the Pakistan tour hanging around, the IPL (Indian Premier League), the Indian test series and all the issues there in the (Harbhajan Singh) hearing.

"He has had to take the brunt of it and I think we have got to acknowledge that he does that and stands up and wants to do it, that is his job."

Gilchrist, who is retiring from international cricket after the tournament, is not concerned about Ponting`s form in the long term.

"He is still running the team beautifully, captaining. Still very much Ricky Ponting," Gilchrist said. "We have got to rally around him and keep him going but he is a class act and he will be fine."

Bureau Report

Indian economy won`t slow down`

New Delhi, Feb 16: Planning Commission Deputy Chairman Montek Singh Ahluwalia Friday said that any slowdown in the world economy would not have much impact on the Indian economy.

`Any slowdown in the world economy would not slow the growth rate of our economy by more than half a percent. In the worst case, the percentage could be one percent, but that appears to be highly unlikely,` Ahluwalia said at the annual general meeting of the Federation of Indian Chambers of Commerce and Industry (FICCI) here.

With a growth rate of 8-9 percent, he said the Indian economy was on a stronger footing, but underlined the need of institutional development in the finance sector.

`The government has set up a high-level committee to look into the different aspects of the finance sector and accordingly suggest corrective measures along with the roadmap for the next 10 years,` Ahluwalia said.

`The development of a healthy financial system is much more important than the interest rates. We need to see whether the financial sector is moving with the required pace or not,` he added, admitting that the pace of change has been slow in India.

Underlying the role of agriculture in the country`s overall economic growth, Ahluwalia said that the focus must be on multiple products.

`There is no quick fix solution to the slow growth rate in agriculture sector, suffering from structural weaknesses for several years. We must think in terms of transferring technology to the farmers,` he said.

Given the scope for the private sector role in agriculture, Ahluwalia said they should actively involve themselves in managing the perishable agro-products.

`A four percent growth rate in the agriculture sector depends upon private partnership. We need to diversify agriculture at a large scale. Let`s think of contract farming,` he said.

Bureau Report

Inflation needs to be controlled: PM

Zeenews Bureau

New Delhi, Feb 15: A day after the Reserve Bank of India expressed concern over the escalating rate of inflation, Prime Minister Dr Manmohan Singh on Friday said that our inflation is still high by global standards and needs to be brought down further.

The Prime Minister made these remarks while addressing a gathering of noted economists at a FICCI meet in the national capital. He stressed that inflation is “an iniquitous tax hurting the common man”. “It should be brought under the acceptable levels.”

Shifting the focus of his speech towards the global meltdown triggered by the US sub-prime crisis, he stated that preventive measure were being taken to insulate the national economy against the adverse impact of the slow down.

However, he maintained that no economy is competent enough to protect itself completely from the global economic woes and the Indian economy was no exception.

“India can not be completely insulated from the global meltdown,” he added.

Prime Minister lauded the robust growth of the Indian economy, and exuded confidence that a growth rate of 9% would be maintained in year 2008.

Prime Minister’s comment on the inflation also holds significance as RBI Deputy Governor Rakesh Mohan yesterday said, ”We need to scale down the rate of inflation”.

The RBI`s objective has been to ensure liquidity and still keep inflation and interest rates low, he said.

Inflation rate inched to over six month high level, piercing the four per cent mark for the week ended January 26, though it was below the RBI`s target of containing it to around 5 per cent during the current financial year.

Reserve Bank in its quarterly review on January 29 left benchmark interest rates unchanged citing inflation control as the priority of central bank.

Outlining the challenges facing policy makers as India seeks 10 per cent-plus growth rates in the next five years, Mohan said excessive credit growth could also lead to an asset price bubble.

No player can give up national duty for IPL: Hussey
Melbourne, Feb 16

Joining the debate over Indian Premier League versus international cricket, Australian batsman Mike Hussey doubted if any player would relinquish his hard earned national cap to play in the twenty20 tournament "for any amount of money".

"It`s time to set the record straight on the Indian Premier League. There are suggestions the golden eggs being laid by the IPL may force the premature retirement of test veterans approaching the end of their playing days," Hussey said.

"(But) I have signed a short-form contract indicating I am interested in playing in the IPL, if I am available. The "if" is very important here.

"You don`t shake a tree and baggy green caps fall out. It takes a lot of hard work to earn one. It took me about 15,000 first-class runs," he wrote in his column for `The Daily Telegraph`.

Hussey, who is yet to sign an IPL contract, said representing his country was an honour while IPL would just be a bonus.

"It`s one of the greatest honours for an Australian sportsman and I wouldn`t retire any earlier just to play a few more IPL matches.

"My aim is to play as many tests, one-day internationals and twenty20 matches as possible for Australia and anything else that comes along will be a bonus. And no amount of money will cause me to think otherwise.

"Let`s be honest about that - Australian cricketers are very well looked after. We have nothing to complain about," he added.

Bureau Report

What can u comment on Monday nifty market...
Can Budjet rally the share values of Fertilizers and steel, oil

Indian products no longer `cheap`

Chennai, Feb 15: Indian products are no longer recognised as 'cheap Indian products' across the world, thanks to the successful transformation of India Inc, Subodh Bhargava, Chairman, Tata Communications, said on Friday.

The country, however, needed to address challenges like clarity, increasing competitivess, enjoying change, governance, leadership and competencies, he said, delivering the keynote address at the Madras Management Association (MMA) Annual Convention 2008 here today.

"We are running a marathon. We have to stay the whole course and cannot afford to become complacent or arrogant. The world is changing faster, products change, consumer needs are changing... we should be able to manage it in a better way and enjoy the process of managing change over a long period," he said.

Bhargava said while Indian companies were becoming successful at innovation, the union government should also look at innovating. "Whatever the industry does will not be sustainable unless the government delivers, especially on infrastructure. The government keeps on promising, but does nothing," he said.

He said corporate India had to take risks and strategise to own and control the supply chain.

On one hand, Commerce Department's refrain has been that without suitable tax concessions, developers would not invest and that corporate tax concessions apply to export incomes, while on the other questions have been raised by the Finance Ministry, RBI, IMF, WTO and OECD about "financial feasibility of the scheme".

According to the Finance Ministry estimates, revenue loss from SEZs could be over 25 billion dollars, more than the earlier estimate of 23 billion dollars for the period 2007-10. "Nevertheless, should revenue losses become too great there is a risk that the government could reverse the policy and reduce exemptions," the study said.

However, the study goes on to add that a pick up in organised sector employment arising from the new SEZs should lead to improved tax administration which could partly offset losses due to tax concessions. So far, more than 600 SEZs have been cleared, of which 187 have been notified.

Bureau Report