Sunday, 16 September 2012

Finatix Newsletter - September 2012

Definition Zone

Dodd-Frank Financial Regulatory Reform Bill

It is a piece of legislation that increased government oversight of trading in complex financial instruments such as derivatives. The Dodd-Frank Financial Regulatory Reform Bill was named after Senator Christopher J. Dodd and U.S. Representative Barney Frank. It restricts the types of proprietary trading activities that financial institutions will be allowed to practice. The Dodd-Frank Financial Regulatory Reform Bill was passed with the intent of preventing the collapse of major financial institutions such as Lehman Brothers from happening again.

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The best of Economics, Finance and Politics
Sebi implements measures to revive MF industry
Money Control, September 13, 2012

Market regulator Sebi today announced implementation of a number of steps for the benefit of mutual fund industry, including an additional levy on investors for catering to smaller cities and availing the services of a whole new class of persons as distributors. Among the measures are:
·         MFs can charge up to 30 percentage points of additional TER (Total Expense Ratio)
·         MFs are allowed to charge service tax on investment and advisory fees to the scheme
·         Allowed cash transactions of up to Rs 20,000 per investor in a mutual fund every year.
·         For harmonizing the applicability of NAV across schemes, in respect of purchase of units of MF schemes, the closing NAV of the day on which the funds are available for utilization shall be applicable for application amount equal to or more than two lakh, irrespective of the time of receipt of such application.

Batting for $100-billion BPO industry: India links free trade agreement with EU to data-secure tag
Economic Times, India September 10, 2012

India has said that its ambitious free trade agreement with the European Union can be sealed only when the 27-member union recognizes it as a data-secure destination, which is vital for attracting sophisticated outsourcing business, pegged to be $100 billion outsourcing industry.
India is among countries not considered data secure by the EU which obstructs flow of sensitive data, such as intellectual property or patient information for telemedicine, to India under data protection laws in the EU.
The EU law mandates that European countries doing outsourcing business with countries that are not certified as data secure have to follow stringent contractual obligations which increases operating costs and affects competitiveness.
Although India had initially rejected the EU's demand of carrying out a study on India's data security laws to ensure that all sensitive information of potential clients would be safe against theft and misuse, it finally relented.

Infosys acquired Switzerland based firm Lodestone
Business Line, India September 6, 2012

Infosys, one of the largest software companies of India, acquired Switzerland based global management consultancy firm Lodestone on 10 September 2012 with an enterprise value of $350 million.  
It is the largest acquisition by Infosys till date. By the end of October Lodestone will operate as a subsidiary named ‘Infosys Lodestone’ in Europe.
Lodestone is a key player in the SAP domain and has in-depth experience of transformational change.
Lodestone is headquartered in Zurich, and the key role of the company is to advise international companies on strategy and process optimization, and to provide business transformation solutions enabled by SAP's enterprise solutions. Lodestone currently employs about 850 employees, most of whom are SAP professionals.

India, Myanmar and Thailand decided to implement Trilateral Connectivity Project by 2016

India, Myanmar and Thailand on 10 September 2012 reviewed the eagerly awaited trilateral connectivity project and decided to make all efforts to implement this by 2016.  This was done at the meeting of the India-Myanmar-Thailand Joint Task Force, which met in New Delhi.
It was also agreed during the meeting that steps be initiated to address issues related to harmonization of customs and immigration procedures at border check-posts to enable seamless movement of goods and people to realize the full potential of the trilateral highway.

News at Glance
·         Proposal for 51 percent FDI in multi-brand retail and 49 percent in Aviation passed
·         Rashtriya Aarogya Nidhi Scheme was launched in Arunachal Pradesh
·         The Islamabad Women’s Chamber of Commerce and Industry and the PHDCCI signed MoU
·         NIIT and Microsoft came together for Cloud Training
·         EGoM cut down the loan interest rate to 7 percent in the drought affected areas

Know your Recruiter: Royal Bank of Scotland
The Royal Bank of Scotland plc is one of the retail banking subsidiaries of the The Royal Bank of Scotland Group plc, and together with NatWest and Ulster Bank, provides branch banking facilities throughout the British Isles.
The Royal Bank of Scotland has around 700 branches, mainly in Scotland though there are branches in many larger towns and cities throughout England and Wales.
Other facts you should know
- It's 84% owned by the UK Government.
- It's one of 3 Scottish banks that issue their own banknotes. It is the only bank still to issue £1 notes.
- It owns Coutts, which is a prestigious bank the Queen uses.
- It also owns the Churchill insurance brand.

Key Business Services:

·          Finance and insurance
·          Consumer Banking
·          Corporate Banking

Strong balance sheet metrics
·          Customer deposits £435bn
·          Group loan to deposit ratio: 104% (92% in Core divisions)
·          Liquidity portfolio: £156bn
·          Group Core tier 1 capital ratio: 11.1%
·          Total funded assets £929bn.

Try and analyze it!!!

Sunday Reads

RBS launches forced stock market sale of Direct Line


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