MUMBAI: Diversified conglomerate Essar Group is considering a sale of its billion-dollar business process outsourcing (BPO) company Aegis, after receiving non-binding offers from private equity giants. Bain Capital and Kohlberg Kravis Roberts & Co (KKR), among others, have been in discussions to buy out Aegis, which is the second largest independent back office firm after Genpact.
Essar, controlled by billionaire brothers Shashi and Ravi Ruia, has appointed Standard Chartered Bank as adviser to a possible sale of Aegis, which is tracking $1-billion revenue in the current fiscal. This could be the second such exit for the 43-year-old group – which started life as a construction player – in recent times after it sold interests in a mobile telephony joint venture with Vodafone.
“Aegis is looking at various equity raising options, but has nothing specific to announce at this point in time. All options relating to recapitalizing our equity base are open,” said an Aegis spokesperson in response to an emailed query on the potential sale. Bain Capital declined to comment, while KKR could not be reached immediately.
Aegis had earlier talked about a US listing of Aegis and had plans to sell stake to financial investors ahead of the initial public offering. The group was looking to raise $400 million through the listing.
Apax Partners and at least two other US investors have seen the proposal, while one source said the former, which backed iGate’s acquisition of Patni Computer Systems, may not pursue the deal. Essar may wait out till it doesn’t get the valuation it expects, the source added. The company refinanced a large part of its debt last fiscal.
Ruias entered the BPO business in 2005 with the acquisition of the US-based Aegis, which was a loss-making entity with revenues of less than $50 million and 500 employees.
The siblings grew the back-office business through buyouts – making 18 acquisitions – and reported an operating profit of roughly $110 million in FY11. Aegis today employs 60,000 people in 50 locations across the world.
“Aegis, mostly a voice-based call centre business, may fetch six to eight times valuation on operating profit. But, in this case, they may be looking for the ‘size’ premium,” said the source mentioned earlier.
Traditional business conglomerates like Aditya Birla and Essar went late into the IT-enabled sector after first-generation entrepreneurs walked away with early successes. Analysts have argued that Aegis bulked up the business through acquisitions, some of which were seen as expensive, to bag clients in business verticals like telecom, hospitality & travel, retail, healthcare, consumer goods, retail and BFSI.
Several small- to mid-sized back office firms like Apollo Health Street and Indecomm Global Services have explored sale in recent months but received sluggish valuations.
NTT DOCOMO TO UP 26% STAKE IN TATA TELE TO 49%
NEW DELHI: Japan’s NTT DoCoMo may soon increase its holding in Tata Teleservices to 49% from 26% now. The Japanese company will buy the additional stake from its Indian partner at a discount of around 20% on the current valuation, people familiar with the development said. A delegation from DoCoMo is to visit Indiaon April 22-23 to discuss the modalities of the deal and the proposed changes in the shareholding pattern after the stake hike, sources said. According to covenants under the shareholding agreement signed in 2008, the Japanese telecom operator can increase its stake as it has two call options it can exercise — in March 2012 and March 2014 — which gives it the right, but not the obligation, to increase its stake in the Indian venture under certain conditions. DoCoMo bought its stake in Tata Teleservices for $2.7 billion in 2008. (For details log on to : http://www.financialexpress.com/news/ntt-docomo-to-up-26-stake-in-tata-tele-to-49/938766/)
TATAS PULL OUT OF $2BN C&W RACE
MUMBAI: A day before the bidding deadline for Cable & Wireless Worldwide Plc (C&W) expires, Tata Communications has withdrawn from the race for the UKfibre-network operator because of mismatch in valuations. After considering an offer for C&W for about one and half months, Tata Communications (formerly VSNL), has decided not to spend $2billion on the London-listed company. The decision by the Tata group company came even after it secured bank financing for buying out C&W. After this withdrawal, Tatas will not be able to reproach C&W in the next six months. The bid process did not meet with “expectations of the company board”, said a source directly involved with the process. “The board didn’t want to sacrifice financial discipline while chasing the deal,” the official added. It’s not clear whether Vodafone, which is another bidder, still remains in the fray. On March 29, the UKtakeover regulator had allowed extension of the bid deadline by another three weeks to April 19, giving the two potential bidders some additional days to fine tune their bids. (For details log on to : http://timesofindia.indiatimes.com/business/india-business/Tatas-pull-out-of-2bn-CW-race/articleshow/12723474.cms)
SYMPHONY EYES GLOBAL ACQUISITIONS
AHMEDABAD: Riding high on sales, global air cooler player Symphony today said it was looking for acquisitions in the US, Europe and Middle Eastthat could open market access for distribution of its product range. The company sold 4 lakh units in Indiaand 1.70 lakh units in rest of the world in 2011, leveraging from the acquisition of North America-based air cooler company Impco in 2008. Impco had its manufacturing facility in Mexico. The company’s out of Indiaexport volumes have risen from 4,667 units in 2003-04 to 1,27,159 coolers in 2010-11. It has presence in 60 countries and sells its products through large format stores like Walmart, Sears, Famsa, Cotsco, Home Depot. “The acquisition of Impco made us the market leaders in Mexicoand US. We shall happily evaluate some other manufacturers in other parts of the world essentially to leverage from their distribution networks,” Symphony CMD Achal Bakeri told reporters here. (For details log on to : http://economictimes.indiatimes.com/news/news-by-industry/cons-products/electronics/symphony-eyes-global-acquisitions/articleshow/12720669.cms)
GDF SUEZ TO TAKE 26% CAPACITY IN LNG IMPORT FACILITY AT ANDHRA PRADESH COAST
NEW DELHI: French power firm GDF Suez SA will take 26 per cent capacity in the 3.5 million tonne a year floating LNG import facility being set up off the Andhra Pradesh coast. Andhra Pradesh Gas Distribution Corp Ltd, a 50:50 joint venture of GAIL Gas Ltd and Andhra Pradesh Gas Infrastructure Corp Pvt Ltd, would have access to 74 per cent of the nation’s first floating liquefied natural gas (LNG) terminal, officials said here. The 3.5 million tonne floating terminal in shallow waters of Bay of Bengalwill be designed to berth LNG carrying vessels, regassify or transport chilled natural gas into gaseous state before moving it onshore for transmission to consumers. The terminal, which will take almost half the time construction of a LNG receipt facility on land takes, will be completed by first half of 2014, they said. (For details log on to : http://economictimes.indiatimes.com/news/news-by-industry/energy/power/gdf-suez-to-take-26-capacity-in-lng-import-facility-at-andhra-pradesh-coast/articleshow/12717871.cms)
FUTURE SUPPLY CHAIN EYES PE FUNDING TO DRIVE GROWTH
NEW DELHI: Future Supply Chains, India’s largest supply chain company, plans to raise a second round of private equity funding to diversify into new consumer-driven sectors as retail growth in the country shows signs of moderation. The company, part of the Future Group, which runs the country’s top retailer Pantaloon Retail, earns most of its revenue providing services to affiliated companies such as the Big Bazaar hypermarket chain. “Retail industry’s expansion plans in the past 1-2 years have been witnessing a scale-down,” Chief Executive Anshuman Singh told Reuters. “So we identified drivers of growth in the consumer-driven sectors instead of focussing just on retail.” High inflation and interest rates have hurt consumer spending which alongwith a lack of funding and high real estate costs has hurt expansion plans of Indian retailers. (For details log on to : http://economictimes.indiatimes.com/news/news-by-industry/services/retailing/future-supply-chain-eyes-pe-funding-to-drive-growth/articleshow/12718026.cms)
PANASONIC SHARPENS FOCUS ON RURAL SEGMENT
CHENNAI: The $105-billion global electronic giant Panasonic is re-drafting its Indiabusiness plan, with a sharpened focus on the rural segment. The company is set to expand its product portfolio to include more India-specific products across categories targeted at the rural segment. The idea is to incubate and generate newer business streams for the company and to differentiate itself in the cluttered market space. “Our Korean peers are years ahead of us in India, and hence, we cannot target the same audience with the same set of products,” says Mr Arjun Balakrishnan, Director, External Afairs, Panasonic India. The Rs 5,500-crore company, which hopes to double its turnover this year, believes it needs to create a suitable eco system in rural India. The company is teaming up with educational institutions such as the IITs and research foundations to identify the need and develop specific products, explained Mr Balakrishnan. (For details log on to : http://www.thehindubusinessline.com/todays-paper/tp-corporate/article3329273.ece)
IKEA MOVES INTO CONSUMER ELECTRONICS WITH CHINA VENTURE
STOCKHOLM: Sweden’s IKEA, the world’s largest furniture maker, is set to enter the consumer electronics market with products developed in co-operation with China-based TCL Multimedia, IKEA officials said. IKEA, known the world over for low-price, self-assembly flat-packed furniture, plans to launch a line of furniture with integrated connected television and sound systems in five European cities in June, throughout seven European countries this autumn, and in its remaining markets in the summer of 2013. The televisions, wireless sound systems and built-in CD/DVD/Blu-ray players with this line of furniture is designed specifically for IKEA. “This is a large step for us. We will have an offer that is unique in the market,” IKEA’s living room chief Magnus Bondesson said. “We are launching a new concept where you can buy furniture and electronics matched with each other from the start.” (For details log on to : http://www.business-standard.com/india/news/ikea-moves-into-consumer-electronicschina-venture/471868/)
FDI UP 74% IN FEBRUARY TO $2.21 BILLION
NEW DELHI: Indiareceived $2.21 billion in foreign direct investment in February, showing an annual growth of 74%, taking cumulative inflows to $28.40 billion for the April-February period of the last fiscal. In February 2011, the country received FDI worth $1.27 billion. Experts say there is a much greater potential for attracting higher foreign investment provided economic reforms are pushed. “There is an urgent need for strong reforms like 100% FDI in sectors like multi-brand retail and insurance. There is a need to boost investor confidence. $2 billion in month is not a big number,” Ficci secretary general Rajiv Kumar said. (For details log on to : http://www.financialexpress.com/news/fdi-up-74-in-feb-to-2.21-billion/938748/)
NO EARLY TAKEOFF FOR FDI BY FOREIGN CARRIERS IN AVIATION
NEW DELHI: The government’s proposal to allow foreign airlines to invest in fund-starved desi carriers may get held up indefinitely. The proposal is likely to be opposed by Mamata Banerjee’s Trinamool Congress and, in all probability, will be put on the backburner. Trinamool has already dropped hints that it may oppose this policy, which some Indian carriers fear would go against their interest and leave them vulnerable to hostile takeovers by cash-rich foreign carriers. “This is a sensitive issue. I don’t want to comment on it and would rather leave it to our party chief to take a final decision,” said Partha Chatterjee, a Mamata confidante and West Bengal’s industry and commerce minister. The party’s leader in Lok Sabha, Sudip Bandopadhyaya, also refused to comment on this issue. Airlines opposing FDI by foreign carriers are also learnt to have raised the issue of security concerns surrounding funds from certain specific regions flowing into the sensitive aviation sector. What adds to the uncertainty is the fact that there is no unanimity within the government’s various ministries on the upper limit of stake that foreign carriers can pick up. (For details log on to : http://timesofindia.indiatimes.com/business/india-business/No-early-takeoff-for-FDI-by-foreign-carriers-in-aviation/articleshow/12723394.cms)
PROJECT COMPLETION HIGHEST IN YEARS, PIPELINE ROBUST
MUMBAI: In a season of bad news, the Centre for Monitoring the Indian Economy (CMIE) has sprung a pleasant surprise. In its latest data, the research body has said projects worth Rs 4 lakh crore were completed in FY12, the highest in the last few years. In the previous couple of years, the corresponding numbers were Rs 3.4 lakh crore and Rs 3.8 lakh crore, respectively. There’s more good news: the existing pipeline of projects is strong enough to sustain for the next several years. And, FY12 has seen a dramatic pick-up in completion of some of those outstanding projects. According to CMIE, at the end of March 2012, outstanding investment in projects amounted to Rs 140 lakh crore. That is six times the country’s annual gross fixed capital formation. The pipeline of outstanding projects is so large that even if no new project is announced for the next four-five years, the Indian economy can continue to grow at a brisk pace. It is for this reason that the completion of outstanding projects is a far more critical number to watch out for than new projects. There’s no doubt that outstanding investments may, however, continue to rise but at a slower pace, if completion and execution pick up. (For details log on to : http://www.business-standard.com/india/news/project-completion-highest-in-years-pipeline-robust/471851/)
INDIA-ASEAN SERVICES DEAL STUCK
NEW DELHI: The much-awaited services pact between Indiaand the 10-member Association of Southeast Asian Nations (Asean) trading bloc has reached an impasse. The deal, which was expected to open a huge services market, is stuck over stiff differences. Since the negotiations started, talks on services trade have faced serious roadblocks, especially over the issue of Mode 4 of services trade that refers to the movement of professionals. Countries like Indonesiaand Philippineshave strongly opposed liberalising their respective services markets for India, as these feel Indian professionals would take away a large share of jobs in these countries if trade is liberalised. Earlier this week, another round of talks was held between the Asean nations and India, but this, too, remained inconclusive. “It is not progressing at all. The deal is stuck. But we are still trying and hope to achieve some consensus,” a senior commerce department official involved in the negotiations told Business Standard. (For details log on to : http://www.business-standard.com/india/news/india-asean-services-deal-stuck/471889/)
RIL MOVES SC SEEKING ARBITRATOR IN GAS ROW
NEW DELHI: Persisting with its strategy to pre-emptively contest a likely government move to restrict the cost recovery at the KG-D6 offshore gas field, the Mukesh Ambani-run Reliance Industries (RIL) along with one of its consortium partners on Wednesday moved the Supreme Court, seeking direction to the government to appoint an arbitrator to resolve the “dispute”. RIL and Niko (NECO) have requested the Chief Justice of India to appoint the second arbitrator under Article 33 of the production sharing contract (PSC) entered into between them and the petroleum ministry in April 2000 and under Section 11(6) of the Arbitration and Conciliation Act. Last November, RIL had slapped an arbitration notice on the ministry in which it proposed to appoint former chief justice of India SP Bharucha as its arbitrator and had asked the ministry to appoint the second arbitrator within 30 days. However, the ministry had asked RIL to withdraw the notice, saying that there was no dispute that warranted arbitration. (For details log on to : http://www.financialexpress.com/news/ril-moves-sc-seeking-arbitrator-in-gas-row/938763/)
CONSUMER PRICE INFLATION JUMPS TO 9.47% IN MARCH
NEW DELHI: India’s annual consumer price inflation (CPI) index jumped to 9.47% in March — exceeding the wholesale price rise of 6.89% for the period — as food, fuel and clothing turned dearer, reflecting underlying price pressure in the economy. The retail inflation rose sharply in March from 8.83% in February and 7.65% in January, led by a 12.5% jump in clothing, bedding and footwear items, according to the data released by the ministry of statistics and programme implementation on Wednesday. Retail prices of food and beverages, which account for almost half of the weighting in the CPI index, rose 8.22% in March from a year before on soaring demand for protein-based items, while the cost of fuel and electricity jumped 11.8%. (For details log on to : http://www.financialexpress.com/news/consumer-price-inflation-jumps-to-9.47-in-march/938759/)
PATEL FOR GUIDELINES TO BRING IN MORE OPERATIONAL FLEXIBILITY FOR PSUs
NEW DELHI: In order to give more operational flexibility to Maharatna and Navratna companies, that will help them achieve their annual targets, the heavy industries ministry will soon come out with fresh guidelines. Also, it will provide a review and a peak mechanism for Maharatna and Navratna companies for the annual targets fixed by them. At present, there are 5 Maharatna companies — ONGC, NTPC, IOC, SAIL and CIL and 16 Navratna companies, including BHEL and GAIL. Heavy industries and public enterprises minister Praful Patel met the heads of Maharatna and Navratna companies on Wednesday. “The MoUs are fixed, but at times they are unrealistic. Targets cannot be met…. Maharatna and Navratna companies need more operational flexibility, so guidelines will have to be brought in place,” Patel said after the meeting. (For details log on to : http://www.financialexpress.com/news/patel-for-guidelines-to-bring-in-more-operational-flexibility-for-psus/938758/)
TRAI GIVES THUMBS DOWN TO SEPARATE EXIT POLICY FOR TELECOM COMPANIES
NEW DELHI: In line with its earlier stated position, the Telecom Regulatory Authority of India (Trai) has recommended that the government need not create a separate exit policy for telcos that did not want to continue offering telecom services. Also, the entry fee paid by licensees will continue to be non-refundable and an advance notice of 60 days to surrender permits will remain applicable (30 days for ISP), the regulator said in its recommendations on exit policy on Wednesday. Trai came up with the proposed recommendations based on responses from stakeholders and the Supreme Court’s February 2 verdict of cancelling 122 mobile permits issued in 2008. Even the department of telecommunications (DoT) had asked Trai in December last year to recommend an exit policy for all licensees. Trai had earlier issued a pre-consultation paper on exit policy in January on issues like implications, advantages and disadvantages, to individual licensees, to the government revenues and to the telecom sector as a whole. (For details log on to : http://www.financialexpress.com/news/trai-gives-thumbs-down-to-separate-exit-policy-for-telcos/938747/)
MEDICAL TOURISTS TO INDIA COULD SURGE TO 2 M BY 2020
NEW DELHI: Indiacould be hosting 24 lakh medical tourists by 2020, almost four times the number it catered to in 2010. And that’s not all. The figure is projected to rise to 49 lakh tourists by 2025, according to an estimate by Technopak. Of the over 6 lakh-odd medical tourists that visit India today, over half or 55% hail from two regions — Africa and West Asia. The market size of medical value travel would cross R62,000 crore by 2020 and R2 lakh crore by 2025 from R4,500 crore in 2010, according to Technopak, which forecasts a 30% annual growth for the industry for the next 15 years. In the national capital region (NCR) alone, the three largest hospital chains, ApolloHospitals, Fortis Healthcare and Max Healthcare attended to 15,500 foreign patients in 2010. Of this, a quarter or more of the tourists who visited Fortis and Max came from West Asiawhile Apollo derived one-fifth of the traffic from this region. Africaaccounts for 32% of Max’s medical tourists, 15% of Fortis’ and a fifth of Apollo’s share of medical tourists. Neighbouring Saarc countries account for 40% of Fortis’, 25% of Apollo’s and 18% of Max’s traffic of medical tourists. The United States, Europeand other countries accounts for only one fifth of the total patient pool for all the three hospital groups. (For details logon to : http://www.financialexpress.com/news/medical-tourists-to-india-could-surge-to-2-m-by-2020/938741/)
NEW STUDY BRINGS DOWN INDIA’S SHALE GAS POTENTIAL DRASTICALLY
NEW DELHI: The initial hype over India’s shale gas potential seems to be making way for a more sober assessment of the unconventional energy that could actually be extracted from rock formations. From an initial assessment of 300 trillion cubic feet (TCF) to 2,100 TCF of producible and non-producible gas present in Indian basins (called in-place gas), the latest study has brought down the ‘technical recoverable’ gas to about 6.1 TCF. The estimate of technical recoverable gas recently given to Indiaby the US Geological Survey is a fraction of the in-place gas that could be recovered with existing technology without regard to cost. If commercial viability of extraction is also taken into consideration, the amount of recoverable gas would be lower. Earlier, the US Energy Information Administration had given an estimate of 293 TCF of in-place gas, whereas New York-listed Schlumberger had made an initial gas-in-place estimate of 300-2,100 TCF. (For details log on to : http://www.financialexpress.com/news/new-study-brings-down-indias-shale-gas-potential-drastically/938739/)
TCI FUND WELCOMES COAL INDIA ACTION
MUMBAI: The Children’s Investment Fund welcomed moves by Coal Indiato reduce the impact of a recent government directive forcing the state-backed miner to increase fuel supplies to large Indian power groups. The UK-based activist hedge, the largest minority shareholder in Coal India, is leading a public campaign against the company, which it accuses of acquiescing to government interference and selling coal at well below market rates. The row intensified earlier this month when New Delhiissued a presidential decree ordering Coal Indiato increase output, with large penalties to follow if production targets were missed. But while Coal India’s board agreed to implement the decree at a meeting on Monday, it also significantly reduced the penalty threshold from 10 per cent to just 0.01 per cent. Coal Indiarefused to comment on the move. (For details log on to : http://www.ft.com/intl/cms/s/0/23854eee-886d-11e1-a727-00144feab49a.html#axzz1sSPyq14Q)
CUP OF COFFEE AT CCD WILL SOON BE JUST A CLICK AWAY
MUMBAI: The country’s largest coffee retailer, Café Coffee Day (CCD), which commands over 60% of the market share, will be selling coffee online. The move aims to cater to the company’s growing consumer base in tier IV towns as well as rural and hilly areas, which don’t have access to coffee shops. The company says coffee awareness has grown and the demand for the beverage has penetrated deep into the country. However, the dearth of quality real estate has prevented café chains from setting up shops here. CCD’s decision to ramp up its e-commerce operations is in line with the growing trend among brick-and-mortar retailers, which are going the ‘click’ way to tap the fast increasing online shoppers’ base, especially in small towns. (For details log on to : http://www.financialexpress.com/news/cup-of-coffee-at-ccd-will-soon-be-just-a-click-away/938732/)
HCL TECH RIDES ON BPO BIZ, Q3 PROFIT UP 28.7%
NEW DELHI: Buoyed by outsourcing contracts from its global customers, especially in Europe, who wanted to cut operational costs in an uncertain global economy, the country’s fourth largest information technology (IT) company HCL Technologies on Wednesday posted a better-than-expected 28.7% increase in net profit for the third quarter ended March 31, at R602.5 crore against R468.2 crore in the corresponding quarter the previous year. Revenues during the period stood at R5,215.6 crore, up 26% from R4,138.2 crore in the year-ago period. The results were in sharp contrast to that of sector bellwether Infosys Technologies’, which missed revenue guidance for the March quarter and provided a worse-than-expected forecast for the year ending March 2013. The earnings report pushed up HCL Tech’s stock by 3.06% to close at R495.55 on the BSE. (For details log on to : http://www.financialexpress.com/news/hcl-tech-rides-on-bpo-biz-q3-profit-up-28.7/938724/)
FMCG COMPANIES INCREASING SPEND ON R&D
MUMBAI: In December last year, Dabur India, maker of Real Active fruit drinks, introduced a mixed fruit-flavoured variant of its flagship health supplement brand Chyawanprash as it wanted to target a wider audience, especially kids. The company also launched fruit -based fizzy drinks — Burst Fizzy — in January this year as it wanted to enter a new category — carbonated drink with fruit juice to compete with colas in India. Hindustan Unilever or HUL, India’s largest consumer goods company, launched Lifebuoy Clini-Care 10, claiming it offers 10 times better germ protection compared to others. In March, Tata Chemicals created a buzz around its traditional brand Tata Salt by introducing Tata Salt Flavortiz in three flavours, aiming to capture new consumers. (For details log on to : http://www.financialexpress.com/news/fmcg-companies-increasing-spend-on-r&d/938721/)
RELIANCE COMPLETES 4.4% OF ANNOUNCED BUYBACK
MUMBAI: Reliance Industries (RIL), the country’s biggest company, has completed 4.4% of its announced buyback programme that began in the first week of February. The company has bought back more than 52.6 lakh shares in the last two months, against an announced buyback of 12 crore shares, which equals 3.6% of its total equity. Traders observed that the company ramped up its buyback action in the last three weeks since the price of the RIL share fell below R760. More than 60% or 32 lakh shares have been brought by the company since March 19, when the RIL stock fell to R760 for the first time in two months. There is a clear pattern in this cycle of RIL buyback, with the company being aggressive on this front when the stock falls below R750, a trader said. “This indicates that the company may actively sustain its buying through this route till the time the stock trades in the R50-700 range, also given that the market is expecting a muted March quarter result to weigh on the stock further,” he added. (For details log on to : http://www.financialexpress.com/news/reliance-completes-4.4-of-announced-buyback/938718/)
INDIA PIPS JAPAN IN PURCHASING POWER PARITY
NEW DELHI: Its economy may be in the grips of a slowdown, its polity paralysed and markets morose, but all this hasn’t prevented Indiafrom overtaking Japanto become the world’s third-largest economy in purchasing power terms. Data just released by the International Monetary Fund (IMF) shows that India’s gross domestic product in purchasing power parity (PPP) terms stood at $4.46 trillion in 2011, marginally higher than Japan’s $4.44 trillion, making it the third-biggest economy after the United Statesand China. India’s share in world GDP in terms of PPP, a measure of relative consumer prices across countries, stood at 5.65% in 2011 against Japan’s 5.63%, with the gap expected to widen significantly by 2017. In five years, the IMF estimates the share of India’s GDP in PPP terms would grow to 8.09% compared with 4.8% for Japan. Economists said India’s move up the league table was a reminder of the boundless potential the country offered, despite the prevailing moNEW DELHI: In line with its earlier stated position, the Telecom Regulatory Authority of India (Trai) has recommended that the government need not create a separate exit policy for telcos that did not want to continue offering telecom services. Also, the entry fee paid by licensees will continue to be non-refundable and an advance notice of 60 days to surrender permits will remain applicable (30 days for ISP), the regulator said in its recommendations on exit policy on Wednesday. Trai came up with the proposed recommendations based on responses from stakeholders and the Supreme Court’s February 2 verdict of cancelling 122 mobile permits issued in 2008. Even the department of telecommunications (DoT) had asked Trai in December last year to recommend an exit policy for all licensees. Trai had earlier issued a pre-consultation paper on exit policy in January on issues like implications, advantages and disadvantages, to individual licensees, to the government revenues and to the telecom sector as a whole. (For details log on to : od of pessimism. (For details log on to : http://economictimes.indiatimes.com/news/economy/indicators/india-overtakes-japan-to-become-third-largest-economy-in-purchasing-power-parity/articleshow/12722921.cms)
INVESTORS WANT MORE DISCLOSURES IN EXECS’ PAY: STUDY
MUMBAI: The demand for making more disclosures regarding executive pay is getting louder among global companies, according to a survey conducted by Hay Group, the global HR management consulting firm. The global study titled ‘Corporate governance and executive pay: Taking the Pulse’ reveals executive pay to be at the top of the list of corporate governance issues. “Pay disclosure should include solid statements of policy and practice and show a clear link to strategy. I want to see less boiler-plating and more bold statements on pay policy,” says a UKinvestor in the report. The report states almost all companies were in favour of having some disclosure of executive pay. However, few respondents, including most investors and regulators, wanted to see much more disclosure than was presently required. The call was for improved quality of disclosures rather than quantity. (For details log on to : http://www.business-standard.com/india/news/investors-want-more-disclosures-in-execs-pay-study/471855/)