Sunday, 2 September 2012

Finatix Newsletter - September 2012

Definition Zone
LIBOR: An interest rate at which banks can borrow funds, in marketable size, from other banks in the London interbank market. It is fixed on a daily basis by the British Bankers' Association. The LIBOR is derived from a filtered average of the world's most creditworthy banks' interbank deposit rates for larger loans with maturities between overnight and one full year.

The best of Economics, Finance and Politics
SEBI weighs plan to start exchange for Corporate Bonds, fixed income derivatives
Business Line, India August 27, 2012

Securities and Exchange Board of India (SEBI) is considering a proposal for setting up a dedicated exchange for corporate bonds and fixed income derivatives, which will exclusively cater to large institutional clients like banks, mutual funds, insurance companies and primary dealers. Currently, corporate bonds and interest rate derivatives are transacted primarily in the OTC (Over the counter) market.
The exchange is proposed to set up by ICAP India, a subsidiary of the world’s largest inter-dealer broker ICAP plc, and its application is currently being processed by the SEBI. As per the plan, the firm’s 200 clients would be offered membership in the proposed exchange.
The proposal is in sync with Dodd Franck Act of US and European Commission draft favoring regulation and transparency for OTC derivatives. Also G-20 countries, of which India is a signatory, had said in 2009 that all standardized OTC derivatives be traded in exchange system by the end of 2012 and where possible centrally cleared.

Japan’s Dentsu Acquires Indie Agency Taproot at estimated deal of 140 crore
The Economic times, India August 29, 2012

Japanese advertising behemoth Dentsu has acquired 51% stake in Taproot, the most creative among Indian advertising agencies. With several of the most popular recent campaigns like ‘Har ek friend zaroori hota hai’ and ‘joh tera hai vo mera hai’ for Airtel and ‘Change the Game ’ for Pepsi under its belt, the five year old agency has seen meteoric rise.
Taproot was founded by Agnello Dias and Santosh Padhi in 2008. Dentsu will get Creative firepower, while taproot gets national network, superior execution ability, integrated communication and of course the money. Taproot won’t be rebranded. Although Dentsu is a majority owner, management control of the agency will rest with Dias and Padhi.

India-Indonesia Signed Double Taxation Avoidance Agreement (DTAA)
India and Indonesia signed an agreement to avoid double taxation and prevent fiscal evasion with respect to taxes on income on 27 July 2012.
The agreement was signed by Indonesian Foreign Affairs Minister Dr. R. M. Marty Natalegawa and his Indian counterpart S.M Krishna at the Hyderabad House in New Delhi. Apart from the agreement, both sides also signed the agreed minutes of the fourth Joint Commission Meeting between India and Indonesia.
Highlights of the Meet
•    Both the countries, reviewed the entire state of bilateral relationship including trade and commerce.
•    Two nations have also agreed to strengthen the bilateral relationship into a strategic partnership
Both countries share a warm relationship on account of the solid foundation of historical and cultural ties. Both countries are also hopeful of achieving the trade target of 25 billion US Dollars by 2015
Annual Supplementary Foreign policy 2012-13 provides interest subsidy support to exporters

Government has come forward for rescue of exporters by extending some promotion schemes and providing incentives to tap new markets with the aim to increase exports by 20% during 2012-13. Policy underlines 7 point agenda to assist country’s export in the current shaking environment.
Highlights of FTA-
  • Government aiming 20% export growth in 2012-13
  •  2% interest subsidy scheme extended  till march 2013
  •  Incentives for exports from north eastern states
  • Seven new market added to Focus market scheme
  • 13 shows abroad to promote Brand India
  • Incentives for promoting investment in labor intensive sectors

News at Glance
Basel III to be effective from Jan 2013
IMF Lowers India Growth projection to 6.1 per cent for 2012
Moody’s maintain India’s Rating Outlook stable
Current Account deficit hits all time high.
India stands second in Innovation Efficiency Index
Direct Tax collection rises 47% in Q1 2012-13

Know your Recruiter: ING Group
ING is the largest banking and financial services & insurance conglomerate in the world by revenue (€55.79 billion (2011). ING is an abbreviation for International Nederland Group. ING has its client base spread in more than 45 countries.
Key Business Services of ING Group
·         Retail Banking
·         Direct Banking
·         Commercial Banking
·         Investment Banking
·         Asset Management
·         Insurance Services

Sunday Read for you:

Anupriya (12PGP063)
Srilakshmi Soumya Ch (12PGP097)
Finatix Member-IIM Raipur


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