Securities Appellate Tribunal facing manpower crisis

It is a three member quasi-judicial body that has been working without a judicial officer for over a year now. Now, the two remaining members of the Securities Appellate Tribunal are on the way out. CNBC-TV18's Ashmit Kumar reports on the serious manpower crisis the SAT is facing at the highest level.

The Finance Ministry will have to work quickly, if the Securities Appellate Tribunal is to be kept alive. The three member quasi-judicial body is, by law, composed of a presiding officer and two other members, However, with the retirement of Justice Sodhi in November 2011, the Tribunal lost a Judicial Presiding Officer. Since then, the Tribunal has heard over 200 cases, including some high profile ones like the dispute between Sahara and SEBI, with member PK Malhotra holding officiating charge.
 
However, the lack of a Judicial Presiding Officer has cast a cloud over the validity of SAT judgments - the subject matter of an already pending public interest litigation.

Now, Malhotra has been appointed secretary of Legislative Department at the Law Ministry and to make matters worse, SSN Moorthy, the second tribunal member, will retire on December 27. This means there will be no one left to hear cases.

PR Ramesh, senior consultant, Eco Laws Practice says, "Now there are two members, and if one is leaving, under the rules, every order has to be signed by a PO and a member. Without two members, SAT cannot function. Procedurally every order has to be passed by the PO and the member. A one member tribunal will not be able to pass any orders."

The situation has capital market participants worried, but experts say aggrieved parties could seek recourse at the High Court.

Sandeep Parekh, founder, Finsec Law Advisors opines, "One could go to the HC and file a writ against SEBI orders. Since there is no statutory appeal, the HC would consider it for the simple reason that there is a vacuum at SAT. Therefore, there is no alternate or efficacious remedy available to the litigants."

New members will not solve the problem entirely. Experts say it could take months for the new officers to come to terms with the complexity of crime in the capital markets.

Parekh adds, "These posts are filled by people who don't have much experience. These gentlemen learn on the job how the markets work, how the crooks work. There is some learning that takes place over the first six to eight months, an upward learning curve even for the litigant because there is a person adjudication over the matter who doesn't quite understand the situation. It is clearly not the happiest situation with all three members being new to the tribunal."

New members will have to be appointed within a month, if the Tribunal is to keep functioning. Also, SAT already has a backlog of 50-60 cases. With the new consent process framework, SAT will have to hear more cases of insider trading and front-running, meaning the backlog could mount rapidly.

08.11 | 0 komentar | Read More

GMR-Male rift: MEA says arbitrary steps shouldn't be taken

In a stern message to Maldives, India said it expected no arbitrary and coercive action should be taken pending the outcome of legal proceedings on the GMR contract issue and warned that recourse to any such action would have adverse consequences for bilateral relations. In response to a question on the GMR issue, the official Spokesperson of the Ministry of External Affairs also said "we are concerned over reports from the Maldives about continuing violence and intimidation against elected representatives and expressions of radical sentiments".

Also Read:

Industry wants govt to use diplomatic channel in GMR case
Will go ahead with takeover of airport project: Maldives

He asked Maldives to ensure that the rule of law "is upheld and principles and tenets of democracy are maintained. We will continue to monitor the situation closely." Referring to the telephonic conversation Maldivian Foreign Minister Abdul Samad Abdullah had with External Affairs Minister Salman Khurshid, the official Spokesperson said the Maldivian minister had mentioned that his government would not allow relations between his country and India to be undermined and there was consensus on this issue.

During the conversation, Khurshid reminded the Foreign Minister of Maldives of his earlier discussions noting that the legal processes involved in the GMR case should be permitted to take their own course based on the contractual obligations of the parties involved and the Maldivian government should not allow the situation to go out of hand. Abdullah called up Khurshid in a bid to mollify an upset India following the Maldivian government's decision to terminate GMR's 500-million dollar airport project in Male.

08.11 | 0 komentar | Read More

Coal India aims at 46m tonne production in December

Coal India Ltd is targeting 46 million tonnes of production in December, up from 39 million tonnes in November to meet its annual production target of 464.10 million tonnes by March, 2013, a top company official said. A production of 46 million tonnes is expected in December, CIL Chairman and Managing Director S Narsingh Rao said on the sidelines of a function.

This would be just close to seven per cent higher than last year's December month production, when around 43 million tonne of coal was produced. Rao also expected there would be no environmental hurdle for the company to meet targets, but hinted that some environmental clearances if not cleared by the month-end could become a cause for some worry.

Also Read:

CIL lines up Rs 50,000 cr investment plans for next 5 years
Coal India Board to discuss price pooling in Dec meet
Power cos may buy coal from sources other than CIL: Govt

Rao said the company was not considering any price hikes as of now, but admitted that the cost of production had witnessed a substantial increase following the diesel price hike in September by Rs 5 a litre. "I don't think there is any such proposal under consideration now... we will see. Time to time we take stock of the cost of production and then decide," he said.

Diesel formed a major cost component in coal production and would impact Coal India by Rs 500-600 crore, Rao had said.

08.11 | 0 komentar | Read More

Mahindra two wheelers sales up 26% in November

Mahindra Two Wheelers reported 26 per cent growth in sales for November at 10,082 units against 8034 units in the corresponding month last year. The cumulative sales in the April-November period stood at 79,910 units, the company said in a release.

Also Read:

M&M hits life-time high post November sales numbers
Maruti Suzuki rises 2% on November sales numbers
Bajaj Auto Nov sales slip 1% to 3.7 lakh as bike sales slow

"There is increasing customer preference for our new range of scooters - the Mahindra Duro DZ and the Mahindra Rodeo RZ. Our scooters now come with Mahindra's advanced Z-Series engine that delivers both 125 cc power and great on-road mileage," company's Executive Vice-President (Strategy and Market Development) Viren Popli said.

08.11 | 0 komentar | Read More

India's Adani to issue $1.5bn global bond

India's Adani Enterprises said it is planning a USD 1.5 billion global bond issue to fund its Australian coal, rail and port project.

Adani Enterprises is developing the Carmichael mine to produce 60 million tonnes a year of coal for export, mostly to power stations in India. The project also involves building a 400-km rail line.

The Adani Group has invested $3 billion in cash in its Australian projects and is expected to invest $7 billion more over the next few years, the company said in a statement.

08.11 | 0 komentar | Read More

Big Indian firms sitting on Rs 4.2 lakh-cr excess cash: EY

Big Indian companies are sitting on excess cash to the tune of Rs 4.2 lakh crore, as the amount is "unnecessarily" stuck in working capital processes, according to Ernst & Young.

"... the large Indian companies have up to Rs 4,200 billion (USD 78 billion) unnecessarily tied up in cash in their working capital processes. This is equivalent to 11 per cent of their aggregate sales," global consultancy E&Y has said.

The conclusions, part of the report titled 'All Tied Up India 2012', are based on the working capital performance of 400 leading companies in India.

Going by the report, in FY 12, the largest companies in India reported a significant deterioration in the working capital performance as compared to FY 11.

Cash-to-cash (C2C) or the average number of days for profit to be converted to cash has increased during this period. The rise came against the backdrop of rapid growth in sales, increased inflation and interest rates and heightened volatility in currency and commodity prices, it said.

Further E&Y noted that since 2009, the C2C of Indian companies has increased by as much as 30 per cent.

When it comes to C2C performance, Indian organisations are at the bottom of the table behind the US, European, Japanese and Asian companies, the report said.

"While these performance gaps may be partly explained by variations in market characteristics, payment practices and supply chain infrastructures, they also highlight fundamental differences in the degree of management focus on cash and the effectiveness of working capital management processes," it added.

According to the consultancy, utilisation of the excess cash would require much greater focus, effort, collaboration and innovation.

Such efforts could be by way of improving the reliability of demand forecast with the help of real-time information sharing with customers, among others.

"Indian companies need to start viewing working capital as an operational issue and not just as a financial issue. Otherwise, in today's global market place we will be at a competitive disadvantage," E&Y Partner (Working Capital Advisory Services) Ankur Bhandari said.

08.11 | 0 komentar | Read More

Suzuki Motorcycle sales up 25% in November

Two-wheeler maker Suzuki Motorcycle India reported 25 per cent increase in sales at 39,134 units in November. The company had sold 31,332 units in the same month last year, Suzuki Motorcycle India Pvt Ltd (SMIPL) said in a statement.

Also Read:

TVS Motor Nov sales down 2% to 1.72 lakh units
KTM eyes Indian bike mkt with plans to roll-out 3 models
11 lakh sales in Oct-Nov: Hero MotoCorp

Commenting on the sales growth, SMIPL Vice-President (Sales and Marketing) Atul Gupta said: "We have received a good response from the market for all our products. "The festive campaign, Hai Hayate, Hai Happiness, has further consolidated our consumer connect and created more opportunities for celebrations this festive season."

08.11 | 0 komentar | Read More

Continental counts on Asia for growth: Degenhart

Continental AG, a 32 billion euro German company, which makes tyres and auto spare parts and is ranked in top-5 in the tyre market and is one of the largest markers of auto systems.

Elmar Degenhart, chairman of the board, Continental AG, talks about company's future plan and the strategy they plan to undertake for expansion in new markets.  

Also read: ArcelorMittal & France Deal: Less layoffs, more investments

Below is the edited transcript of his interview to CNBC-TV18.

Q: Continental contributes a lot to the automobile industry; it makes tyre, powertrains, batteries, car panels and meters. According to Continental how the future of of the automobile industry does looks like. Could you break up the future of the auto industry in the US, Europe and emerging markets (EMs) where you operate?

A: We are a global company and we have three pillars. We are ranked number four in passenger car tyres segment. And we are also well known for our premium brand

Secondly, we have a strong footprint in the automotive systems business. Two-third of our turnover comes from the automotive systems and electronics is our largest product area. We are strong in supplying electronics in the area of chassis, power trains but also interior. We generate more than 50 percent of sales from electronics in system side. The third pillar is supplying all kinds of rubber products to the industry but also to the automotive sector.

Q: How do Europe, America and emerging markets look?

A: Volumes are down in Europe. I think we have reached the bottom and we expect next year to be stagnant, maybe a further decrease of 1-2 percentage point. The North American market will grow next year towards 16 million again, South America will stay stable. We are looking at Asia for growth.

Q: In which segment in Europe do you see recovery coming first?    

A: The passenger car market will start to see recovery in 2014. The truck market will follow accordingly.

Q: You mentioned that Europe will possibly decelerate this year and next year, yet you forecast that Continental revenues to grow by 5-6 percent in coming year? From where will this growth come from?

A: The automotive market can grow by 2 percentage points.

Q: Will you grow faster than that?

A: We are definitely growing faster because of our strong footprint on the electronic side and our investment program into tyres and rubber products.

Q: If America hits the fiscal cliff and taxes are increased and government spending is lowered. Then, what is your prospects for the American market?

A: I am convinced that North America will resolve its problems. Fiscal cliff will not be an issue. The North Americans are optimistic by nature. So, it is important that the government is sending positive signals that they can be in the driver seat with regards to consolidation, means reducing the debt and for sure they have to raise taxes but it will concern more to the wealthy people. I believe even increase in taxes would be seen as positive and would stimulate the market.

Q: Do you think that your forecasted growth of 3 percent will come despite European slowdown and be made up by growth in America and in Asia?

A: True.

08.11 | 0 komentar | Read More

Thomas Cook exudes confidence with new promoter Fairfax

Fairfax has USD 30 billion invested worldwide and with the might of this new promoter behind Thomas Cook India , it is exuding confidence like never before.

In an interview to CNBC-TV18, Madhavan Menon the MD of Thomas Cook India said the company going to concentrate on organic growth for the next 2 years.  Also,cleaning up operations is an immediate focus.

Also read: Thomas Cook India to raise Rs 200 cr via NCD route
 
Moreover, Madhavan said, another priority is to meet the Sebi guideline. It is the guideline of minimum 25% public shareholding norm, even though the company has managed to get the market regulators nod for extending the deadline from June 2013 to Aug 2013,

Below is the edited transcript of his interview to CNBC-TV18

Q What is your primary focus?

A: First of all I think right at the moment we are just complying with Securities Exchange Board of India (SEBI) regulations. This requires coming down from the 87 percent that we are at, to 75 percent. I think that's a primary focus.

We are in discussion with SEBI over various options. It will take us a couple of weeks to figure that out. We have put a variety of options in front of SEBI. I think we will look at compliance with the law as a priority.

Both from the Fairfax Industry Financial Holdings as well as Thomas Cook India Limited our primary focus is compliance with the law. Whatever the rules are we will comply with that. It is only after that we will talk about what we need to do.

Q: How will you bring it down from 87 to 75 percent?

A: I think it is difficult to discuss that at the moment.

Q: So you are not happy with any of the options that SEBI has already said yes to?

A: As we talk, we are looking at all the options.

08.11 | 0 komentar | Read More

India likely to import 15 MT iron ore this fiscal: Fimi

"The country is likely to import around 15 million tonnes (MT) of iron ore this financial year, following the virtual halt of mining operations in different parts of the country," a top industry official said on Friday.

"If the current trend (of scarcity) continues, then we may import around 15 MT iron ore in the current financial year," Federation of Indian Mineral Industries (Fimi) vice-president Basant Poddar told PTI.

As per industry experts, the country has imported around 9 MT iron ore during the April-October period. Major iron ore producing states like Goa, Karnataka and Odisha among others have witnessed halting of mining after the Supreme Court crackdown on illegal mining. As a consequence, many steel firms are facing scarcity of iron ore and are being forced to imports to meet the shortfall in raw material.

Poddar also said things are not likely to change in the near future on the production front. Referring to upcoming Supreme Court-appointed Central Empowered Committee report on Goa, Poddar said recommendation are likely to be the same for Goa as it has done for Karnataka.

The mining operations have been completely stopped in Goa for the past few months after the Supreme Court order. Earlier, mines in Karnataka have been divided into categories like A, B, C and the Supreme Court has allowed mining in the category A mines with no irregularities.

08.11 | 0 komentar | Read More