Satyam probe – will it be fair ?
The scandal about Satyam just refuses to die down. There are so many questions that remain open, and there is the major feeling that even though the Central Government took quick action once Raju had come out with his confessional statement, the state Government of Andhra Pradesh is not being so open. Before Raju had made his statement, the Chief Minister, Rajshekhar Reddy had made a statement to the effect that the aborted merger was over, and people should get on with their lives. No reassurance about watching out for a company that was the star of Andhra Pradesh and employed 50,000 people. And just a few days after the Chief Minister dismissed all warnings, the Satyam Chief went ahead and wrote his confessional note. And after this, the Chief Minister had nothing to say.
Now, there are so many open questions that it seems that there are so many mysteries to resolve, and the former Satyam Chief is sitting in jail, with some police investigators getting access to him. For some arcane reason, SEBI investigators are unable to get access to Raju, currently in jail (The Andhra High Court has refused SEBI the permission to do so even though a huge amount of investor money went down the drain).
Categories: Andhra Pradesh, Crime, Economy, Equity, Finance, Fraud, Investigation, Politics, Punishment, SEBI Tags:
India: A magnet for Global Capital
Lee’s Dhaba
#fullpost{display:inline;}Below is a research note from Bank Credit Analyst; Highlights:
In the case of India, we remain relatively constructive as credit flows into the country appear to have largely been utilized in a productive way. As a result,the ongoing liquidity squash should not evolve into a solvency crisis on a massive scale.
Not massive, but Realty is a serious concern…has this been productive? Lee
Given the under invested nature of India’s economy, the return on capital is very high, not only relative to the G7 but also in comparison to other emerging markets. This, along with a lack of major imbalances in the economy should keep India a magnet for global capital.
Currency risk. Net foreign liabilities are just 2% of banking assets, although it is higher for some private sector banks, such as ICICI bank. On the whole, however, net currency exposure is not significant.
As I have said previously, do not blow the FX reserves in defence of the currency. We will need it later – Lee
BCAINDIA
Categories: Banks, Consumer, Deal, Development, Economy, Equity, Finance, Governance, Growth, India, Policy, SEBI, Trade, Traffic, US Tags:
Governance: Information for Mutual Fund Investors
A number of investors in India are invested into Mutual Funds, sold on the promise of being able to get better returns from the equity market without having to worry about direct investment into the equity market. A number of these investors do not have adequate information about the working of the Mutual Fund industry and depend on the Mutual Fund to keep their best interests in mind; something that unfortunately does not happen as much as you would like. For example, a number of Mutual Funds are pushed through investing agents, and since the commission to these agents is much higher for a New Fund Offer, they try and get new investors to put money into these New Fund Offers. SEBI has a FAQ (Frequently Asked Questions) section on their website that deals with Mutual Funds. You can access this site here. Some relevant information from this website:
1. When will the investor get certificate or statement of account after investing in a mutual fund?
Mutual funds are required to despatch certificates or statements of accounts within six weeks from the date of closure of the initial subscription of the scheme. In case of close-ended schemes, the investors would get either a demat account statement or unit certificates as these are traded in the stock exchanges. In case of open-ended schemes, a statement of account is issued by the mutual fund within 30 days from the date of closure of initial public offer of the scheme. The procedure of repurchase is mentioned in the offer document.
