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The IBS Times_138TH issue


									ISSUE - 138                                                             29th DECEMBER [THURSDAY]

              SYNOPSIS                                                                             - KRITIKA SETHI

              The IBS Times takes immense pleasure in wishing all our readers a very Happy New Year in
              advance. We would like to thank all of you for appreciating our efforts and being with us in our
              journey aimed at providing knowledge about the happenings in the world every week. We prom-
              ise to continue this in future and enlighten you for the years approaching. Get ready for the last
              read of the year.

              Finally the fading year has bought a ray of light for the next year, Lok Pall bill is finally passed.
              But it came as a major embarrassment to the UPA government that it was not able to conjure the
              requisite support for giving a constitutional status to the Lokpals and the Lokayuktas. Get more
              details through our cover story section this week.

              We all are aware of the tumultuous beginning and the contretemps end of the year ending 2011 .
              To begin with the Euro crises, lok pal bill and at last depreciating rupee, all this had made the
              year end on the sad note. Will these upheavals of the year ending have an impact on the year
              2012? Will the approaching year be able to relieve itself from the clutches of the fading year.
              Get our writer‟s opinion on this issue through our Opinion Column this week.

              All the readers will be refreshed this week through our Brand Track column .We are talking
              about the refreshing drink Lipton tea. It was started to blend various varieties of tea from over
              the world and marketed it in a distinct yellow pack, with a red Lipton symbol. It was first of its
              kinds, branded tea, with good quality at an affordable price. Get a happy sipping this winters..!!

              Through our Focus Of The Week column we are highlighting upon the issue of tax free bonds by
              NHAI this week. It is an autonomous body of Government of India under the Ministry of Road,
              Transport & Highways which is offering a Secured, redeemable, non-convertible debentures
              with tax benefits . Get all the details about it through this column.

              Moreover we have our regular sections of Fast Track, Quick Bites, Market Watch and a special
              dose of News @ IBS to give all of you a glimpse of the happenings last week on campus!


              Kritika Sethi

              SYNOPSIS               1 OPINION                    5 FOCUS                      8
              COVER                  2 BRAND                      6 NEWS @ IBS                 9
              FAST-TRACK             3 QUICK BITES                7 MARKET                    10
                                            THE IBS TIMES
COVER STORY–THE LOWER HOUSE PASSES THE LOKPAL BILL- FINALLY                                                             - AVLEEN KAUR SARNA
                                 After burning midnight oil, and after months of debate and public upheaval, Lok Sabha finally passed the Lok-
                                 pal and Lokayuktas Bill 2011. But it came as a major embarrassment to the UPA government that it was not
                                 able to conjure the requisite support for giving a constitutional status to the Lokpals and the Lokayuktas.
                                 Leader of the House Pranab Mukherjee admitted that the government did not have the mandatory two-thirds
                                 majority to get the Constitution Amendment (116th Amendment) adopted. “It is a sad day for democracy,” he
                                 Earlier, Mukherjee, in his reply to the debate, sought cross-party support and reminded members that the dis-
                                 cussion had been taking place on the crucial legislation for over
                                 six months. Prime Minister Manmohan Singh, who for most of the
 We are determined to curb the   day was a passive listener, earlier urged the MPs to rise above
 menace of corruption. We        party politics and vote for the Lokpal bill. He said the bill lived up
 shall convey this message by    to the promise MPs 'collectively made to the people of the country'
 passing the bills unani-        with a 'sense of house' resolution passed in August when Hazare
 mously,' he said. He insisted   fasted in Delhi. 'Let us pass this bill because people are waiting...
 that the government was not     We are determined to curb the menace of corruption. We shall
 under any force from civil      convey this message by passing the bills unanimously,' he said. He
 society and had ensured safe-   insisted that the government was not under any force from civil
 guards while bringing the       society and had ensured safeguards while bringing the prime min-
 prime minister under the        ister under the Lokpal's scope.
 Lokpal's scope.                 Official amendments were carried out to The Lokpal and Lokayukta Bill, 2011, giving the option to states to
                                 set up Lokayukta and leaving armed forces and Coast Guard out of its purview.
                                 Accordingly, many other suggestions were defeated in the house by majority. All the opposition amendments,
                                 including the ones that sought to bring in corporates and media and reservation for minorities were rejected.
                                 But many provisitions were passed too. As many as ten amendments were bought in such as one was regard-
                                 ing the option to the states to form a Lokayukta. The House also passed the Protection to Persons Making Dis-
                                 closures Bill, 2011 intended at protecting whistle-blowers. The other amendments in the Lokpal bill included
                                 keeping out defence forces and changing the requirement of three-fouth of Lokpal members to commend an
                                 enquiry against the Prime Minister to two-third.
                                 Blaming Congress leaders Sonia and Rahul Gandhi for the 'weak' Lokpal passed in the Lok Sabha, Team Anna
                                 member Arvind Kejriwal said on Wednesday that this is UPA's Bill as no amendments proposed by the Oppo-
                                 sition were accepted. "UPA accepts only two voices - Sonia and Rahul. Ruling party passed 9 amendments
"Out of 60 lakhs government      and the bill has become weaker," Kejriwal said. "Mandatory period of 6 months of preliminary inquiry was
employees only 3 lakhs will be   also amended. Now agency can take own time in investigation. In this bill you can't file FIR directly but show
under Lokpal. All trust,         cause will be given first. Before chargesheet, a show cause will be given to the officer," he added. "Out of 60
religious organisations and      lakhs government employees only 3 lakhs will be under Lokpal. All trust, religious organisations and NGOs
NGOs will be under this Lok-
                                 will be under this Lokpal," Kejriwal said. Analysing the situation further, he said, "Now CBI can raid teachers,
pal," Kejriwal said. Analys-
ing the situation further, he    maulana of Masjid and churches. This is strong Lokpal of Manmohan Singh. Selection of Lokpal is again a
said, "Now CBI can raid          problem as only government can select and sack Lokpal."
teachers, maulana of Masjid      Even as the Lok Sabha furiously debated the Lokpal bill through the day, the 74-year-old Hazare's health sud-
and churches
                                 denly worsened. But he refused to break his hunger strike, saying he was ready to die for the country. But the
                                 movement seems to be losing ground as in Delhi's Ramlila ground, where Team Anna members Prashant
                                 Bhushan and Shanti Bhushan fasted during the day; there were not even 1,000 people at any point of time.
                                 And unlike in August when tens of thousands packed the Ramlila ground to cheer Hazare, the mass response
                                 was poor on Tuesday -- both in Mumbai and Delhi.

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                                   THE IBS TIMES
FAST-TRACK NEWS                                                                                           -DEVANSHI PODDAR
                   Japan, India To Go Ahead With 3 Infrastructure Projects
                   Three major projects- Solar Power, Seawater Desalination and Gas Fired Energy Power are being
                   worked upon and ready to be pushed ahead by India and China. These projects are a part of the bilat-
                   eral initiative agreement,2006 to build freight railway linking Delhi Mumbai and industrial complexes
                   along the rail corridor and will be involving Japanese companies.

                   Food Inflation Drops To Four Year Low at 1.8%
                   Food inflation which was 4.35% a week ago has fallen to as low as 1.8% and the Indian consumers
                   have finally got something to cheer about. This fall is due to the sharp decline in prices of the seasonal
                   vegetables and cereals and a strong base effect.

                   Petrol Price May Be Hiked By 1Re Next Month
                   Petrol prices may be hiked next month due to Indian currency weakening against U.S Dollar. However
                   the rate change may need a political clearance as five crucial states, including Uttar Pradesh and Pun-
                   jab have Assembly elections.

                   Markets Could Recover If Reforms Can Get A Push : Analysts
                   Even after seeing the negative macro-environment cues on the Indian markets, analysts still believe
                   that the Indian markets will have a positive growth in 2012. This is majorly because finally the infla-
                   tion has come down and RBI will not raise the rates further. But on the other hand they are also skepti-
                   cal because of the ballooning fiscal deficit.

                   Banks Hike Interest Rates Steeply To Lure NRE Deposits
                   Many banks have announced a hike in interest rates to as high as 9.6% on fixed deposits held by Non-
                   Resident Indians to attract foreign currency ever since the government deregulated the interest rates on
                   Non-Resident External rupee deposits and ordinary non-resident accounts. The banks have also raised
                   savings bank rate by 200 basis points to 6 percent.

                   Ban On Iron Ore Exports Loomed Large in Goa
                   On one hand there are celebrations going on in Goa along with subtle campaigns from the politicians
                   for the elections and on the other hand the mining industry is worried about the Justice M B Shah
                   commission report indicating the total ban on iron ore exports. The mining industry contributes more
                   than Rs. 1000 crore and is the backbone of the economy.

                   FDI In Multi-Brand Retail Still On Government’s Mind : Finance Minister
                   India‟s Finance Minister Pranab Mukherjee said that the opening up of the brand retail sector to for-
                   eign investment is under consideration and the delay was because of lack of consensus among the po-
                   litical parties. Despite slowdown and inflation along with high interest rate are the challenging factors
                   that are to be overcome by the policymakers.

     Veblen Good-Goods that are perceived to be exclusive as long as prices remain high or increase. Veblen goods get their
name from economist Thorsten Veblen, who was one of the first to look into and write about conspicuous consumption and the con-
cept of seeking status through consumption. Veblen goods are often referred to as „status symbols‟.

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                                     THE IBS TIMES
                    Government May Suspend Accounting Change
                    As the government looks forward to suspend the norm of recording profit/loss on foreign currency
                    transactions on marked to market basis, companies having exposure to foreign currency take a sigh
                    of relief. If the norms are implemented, the companies would have to account the impact in their
                    debt repayment side along with other things, but this might not just happen.

                    Terminating 3G Roaming Pact To Dent Government’s Credibility: Bharti Airtel
                    Telecom major Bharti Airtel, on Friday said that the termination notice of 3G services will adversely
                    effect the much-needed investment in the country and specifically in the telecom sector. The com-
                    pany, along with Vodafone and Idea were issued a notice on Friday by Department of Telecom to
                    stop their 3G services as it was illegal and sought their responses within 24 hours.

                    Siemens Fixing Cyber Bugs In Industrial Control System
                    Siemens industrial control systems are used to run an assortment of facilities from power generators,
                    chemical plants and water system to breweries, pharmaceuticals etc. Siemens said it is working to
                    fix the security flaws in industrial controls that the US government warned could make public utili-
                    ties and other things vulnerable to attack by hackers.

                    Russia Ranked 2nd Biggest Global Arms Exporter
                    The Centre For Analysis Of World Arms Trade (CAWAT), on Friday, revealed that with the reve-
                    nue of $11.29billion, Russia occupies the second position for world arms sales after US dominating
                    the world arms exports with over 40% of trade globally($28.76billion).

                    House Passes Payroll Tax Cut In Victory For Obama
                    On Friday, Congress approved a two-month extension for tax- cuts and unemployment benefits for
                    millions of Americans. The pay-roll tax cuts was a the main agenda of Obama‟s three month cam-
                    paign and this step is believed to be taken to prevent the immediate tax increase effect on January 1.

                    Ashwini Akkunji and Six Others Get 1 Year Ban For Doping
                    National Anti-Doping Agency on Friday, i.e. 23rd December 2011 took a decision on the high-
                    profile doping scandal which ended India‟s all hopes of getting a medal in the 4x400 women‟s relay
                    at the London‟s game. This is because Ashwini Akkunji along with Priyanka Panwar, Sini Jose and
                    Tiana Mary Thomas have been ruled out of 2012 Olympics because their doping test came positive.
                    Now only Mandeep and Murmu have got a chance to make it to the last Olympic selection trials.

                    Sharapova Out Of Brisbane Event With Ankle Injury
                    Maria Sharapova has withdrawn her name from the Brisbane International because of her continuing
                    ankle recovery. She said that she had missed the China Open and also the WTA Championship to
                    give rest to her ankle as she wants to be 100% fit for the Australian Open, which she had won in
                    2008, which begins from January 16 .

      David Hasselhoff Index-A stock index comprised of companies associated with actor David Hasselhoff. Investors
might correlate the popularity of David with increased sales surrounding his related products. Firms involved with Hasselhoff en-
dorsements, advertising, movies or productions are included in the index.

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                                              THE IBS TIMES
OPINION FORUM– 2012 UP 2012 DOWN                                                                                             -KRISHNA SHARMA
                                   As it is time before New Year soon to enter. So what can we say to us, to society, to economic condition
                                   and each and everything around us just „Happy New Year‟.
                                   But have we ever thought what actually will be 2012 condition with respect to market, economy and eve-
                                   rything which is related to every minute of life. We have seen many up‟s and down‟s in the year 2011
                                   like the European Crisis which has drastically affected to everyone directly or indirectly. If we talk about
                                   India we saw last few months just imbalanced where rupee was affected by getting its value depreciating.
                                   RBI tried to control it but was not a success.
                                   If we talk about 2012 we have much expectation whether the market will rise or fall again. If we analyze
                                   the current market then we can see that it has no signs to rise. In 2012 it is said that the market condition
                                   will continue as it is going now till the month of March- April. But the prices of the stock prices will rise
  Talking about 2012, some         in the year then they are now. The reason for low prices is the P/E ratio as it is central measure of value
  have expectations of the mar-    for shares. If we talk about GDP then we can see that it
  ket rising and vice-versa. If    is growing at lower than 7% so comparatively it can be
  we analyze the current mar-
                                   assumed that it will range from 5.9% - 6.5% as the gov-
                                   ernment of India is facing high fiscal deficit target and
  ket, we can hardly see any
                                   the tax collection have also fallen, so there will be high
  symptoms of market rising.       corporate earnings. There is tight monetary policy so
  In 2012 it is said that the      there will be less of capital spending and investments in
  market condition will continue   the country. Unless these issues are solved the GDP
  as it is going now till the      can‟t rise. If we see the IT sector it was not a good show
  month of March- April.           due to rising gap between the policies and implementa-
                                   tion of the same. But if this part is taken care then IT
                                   will be one of the best sector to help the economy re-
                                   cover. It‟s roughly 4.5 years down the line of global fi-
                                   nancial crisis from where everything started and contin-
                                   ued in some or the other form. The European crisis is
                                   today‟s biggest concern as if this is not taken care then
                                   global market condition will not improve. But some experts say that the condition will be improving by
                                   mid 2012. And if conditions of the market improve then world market will start recovering.
                                   2011 brought back some of the greatest jerks to the world economies like Euro crisis, US Credit degrade,
                                   soaring oil prices, toppling of autocrats in middle east, etc in India it showed its traces through rupee de-
                                   valuation, stock shocks, low WPI results, reduction in business confidence and attractiveness, frequent
                                   interst rate rises by RBI, etc which made the people to puzzle around.
                                   One of the two biggest shocks of 2011 were felt when US credit rating agency (the other one being Euro
                                   crisis), S&P degraded the credit rating of US from AAA to AA+, the major investors of US questioned its
                                   credibility over its government bonds and as a result dollar depreciation and gold value appreciations
 There's no reason to sell these   happened for a short while where the latter still stays high.
 kinds of stocks in 2012, but      In India the political unrest was ignited due to the Lok Pal bill protest started by Anna Hazare. It should
 there's also little reason to     mass reunion of global Indians after independence. Even though it had a noble cause it threatened the
 expect them to lead the market    business confidence and growth of the country as a whole as there were frequent strikes, bandhs, etc. Rise
 once again as these are some      in food inflation was also one other major problem of concern.
 necessary sectors which will      Till March – April the improvement in the market is doubtful but post this period there are chances that
 never crash as today these has    the world economy may improve. To contribute to a more balanced recovery of the global economy
 been the priority.                (which is one of the main stated aspirations of the G20) by recycling global surpluses into productive,
                                   socially useful and environmentally sustainable investments.. Overall 2012 will be good. In India RBI is
                                   taking many decisions like the decision of fixing the rate of CRR, SLR, REPO RATE and REVERSE
                                   REPO RATE. Every endless night has a dawning, day every darkening sky has a shining ray

     Jajo-An acronym that represents the months of January, April, July and October. Many companies that pay dividends an-
nounce their intentions to pay them – or declare a dividend payable on a certain date – four times per year, in January, April, July
and October, the months included in JAJO.

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                                          THE IBS TIMES
BRAND TRACK– LIPTON- REFRESHING THE WORLD                                                                           - POOJA DALAL
                                Tea is regarded as curer of all ills in Ireland, popular in England as a „National Drink‟, its brew-
                                ing and consumption is carried out as an elaborate ceremony in Chinese and Japanese cultures,
                                is used as a beverage to welcome guests in Pakistani, Iranian and Indian cultures, and is the cen-
                                tre of social gatherings in Arab society. And left over shreds of tea leaves made use of to
                                prophesies about one‟s future at Hogwarts School of witchcraft and wizardry!
                                But back in the eighteenth century, tea was still not a widely available drink, and so, in turn was
                                costly. Most of the European countries had to import it from the Asian countries. Americans,
                                being pro coffee, resisted tea as an everyday refreshment drink. Australia, then a colony of the
                                British Empire, had the same unavailability problem of UK. But it all changed in 1850. Thomas
                                Lipton started to blend various varieties of tea from over the world and marketed it in a distinct
Most of the European coun-      yellow pack, with a red Lipton symbol. It was first of its kinds, branded tea, with good quality
tries had to import it from     at an affordable price. Thus it reached out to a mass audience and made tea a popular drink.
the Asian countries. Ameri-     With a thirst for excellence, Thomas Lipton set sail in search for the premier tea in the world.
cans, being pro coffee, re-     This took him to the shores of Sri Lanka (then Ceylon). There Mr. Lipton started to experiment,
sisted tea as an everyday       blending different qualities of tea, to produce the best
refreshment drink. Austra-      tasting blend. He was very successful. Along with being
lia, then a colony of the       a master brewer, Mr. Thomas was an excellent marketer
British Empire, had the         much ahead of his time. In a time of three decades, he
same unavailability problem     had developed and successfully promoted the Lipton la-
of UK                           bel. (By then Lipton teas were synonymous with quality)
                                And for this feat, he was knighted by Queen Victoria
                                (that made him Sir Thomas Lipton) in 1898. This earned
                                him the privilege of supplying tea to Queen Victoria as
                                well as to many of the European royal families. At the
                                end of the 19th century he had 300 helpers in London
                                where he had moved his business to from Glasgow in
                                1891-1892, 5000 workmen in Ceylon and 150 outlets all over England!
                                By the end of second decade of nineteenth century, Lipton had operating businesses in several
                                countries around the globe. Thus when Unilever wanted to take over the brand, it had to do so
                                in parts. Starting in 1938 (when Unilever bought the US and Canadian Lipton), acquisition was
                                completed in 1972. From then on, Lipton has been very successful in the Global market and has
                                kept pace with Global „Green Standards‟ (its tea bags are Rainforest Alliance certified) as well
                                as the frequently changing palate of the modern consumer.
                                Lipton brand has the products like Yellow Label, Lipton Green tea, Lipton Ice tea, r\Red tea
By the end of second decade     Lipton iced tea and Lipton Linea (a tea that helps in slimming). The teas also have many vari-
of nineteenth century, Lipton   ants like one with milk powder positioned as „Chai‟ in the Asian market. The Yellow Label is
had operating businesses in     the original tea brand introduced by Thomas Lipton and currently consists of more than 20
several countries around the    types of teas blended. The iced tea is made in a merger with Pepsi co. It is a bottled ready to
globe. Thus when Unilever       drink tea that is popular in the US. Apart from the long surviving brands, Lipton continues to
wanted to take over the         give the „refreshing‟ feel to its brand image, by introducing innovative products like the pyra-
brand, it had to do so in       mid tea bags and the new flavours (jasmine, mint, citrus) of „Clear‟ tea. More recently, due to
parts. Starting in 1938         an increase in the health conscious consumer segment, Lipton has positioned itself as a maker
(when Unilever bought the       of tea, with beneficial ingredients like flavonoid in black tea and theanine both in black and
US and Canadian Lip-            green tea.
ton), acquisition was com-      So the healthiest way to keep you warm this winter is a cuppa tea. Have it your style- Black,
pleted in 1972.                 green, oolong. Have it with milk- Masala chai with Parle-G, with cinnamon (ah the Kashmiri
                                Kahwah!), with cardamom and pistachio or simply made hot water. Take winter your way,
                                happy sipping.

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                                    THE IBS TIMES
QUICK BITES- NEWS THAT CAN’T BE MISSED !                                                                              -SWATI VERMA
Big Shots…
        Richard Cameron and Nigel Stagg, Directors of Tech Mahindra tendered their resignations with immediate effect.
        Edelweiss Financial Services' Senior Partner Rajeev Mehrotra has decided to leave the company for setting up his own credit
        IT Company sapient announced Rajdeep Endow‟s appointment as the Managing Director of Sapient India.
        Intel announced that the incumbent managing director R Sivakumar will be moving to a new role, and announced the ap-
        pointment of Debjani Ghosh as the new managing director for its sales and marketing operations in South Asia.
        Ravi Ruia steps down as Chairman of Essar Energy amid CBI charges.
        Colgate-Palmolive India appoints Prabha Parameswaran as MD.
Company Talks…
        Hindustan Unilever Ltd and GAIL have received the National Award for Excellence in Corporate Governance 2011 of the
        Institute of Company Secretaries of India.
        As a part of its expansion strategy, FMCG Company Nestle India is planning to invest Rs 5 billion on its new plant in Guja-
        Engineering major Larsen and Toubro (L&T) bagged the contract of the new Habshan-Ruwais-Shweihat gas pipeline worth
        US$ 189 million from Abu Dhabi Gas Industries (GASCO).
        Ashok Leyland received the approval from its board to 75.1% increases its stake in Optare PLC. raises $5 Million from Seed Fund on ET NOW‟s Super Angels.
        Group SEB buys 55% in Maharaja White line.
        Tube Investments of India Ltd eyes Rs.500 crore revenue.
        FMCG major Dabur has ventured into the professional grooming products market in India and is looking at garnering 5-10%
        market share in this through its brand “Fem”.
        Lavazza, the Italian coffee brand, ropes in Law & Kenneth as its communications partner in India .
        ZTE plans to put Indians in key leadership positions to remove trust deficit.
        Indian subsidiary of US company NLC Nalco India changes name to Nalco Water India Ltd.
        Bonus issue on anvil for Tata Sons shareholders.

Economy Speaks…
        Regular discussions and exchange of ideas among entrepreneurs would play a significant role in boosting economic growth:
        Pranab Mukherjee.
        Planning Commission sanctions Rs 8,000 crores for Bengal.
        Government to include more farm works under MGNREGA.
        Anand Sharma confident of implementing FDI in multi-brand retail
        Mukesh Ambani to PM: We'll invest Rs 70,000 crores in India.
        Domestic pulses import seen flat at 2.7 million T in 2011/12.

The Captains of the Ships…
        Chairman of ISO- Dr .B C Gupta
        CEO Essar Oil-Lalit Kumar Gupta
        Chief Learning Officer, Reliance Industries- Anand Pillai

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                                            THE IBS TIMES
FOCUS OF THE WEEK– NHAI: TAX FREE BONDS                                                                                           - AKSHAY AGARWAL
                               NHAI, an autonomous body of Govt. of India under the Ministry of Road, Transport & Highways is offering a Secured,
                               redeemable, non-convertible debentures with tax benefits under The Income Tax Act, 1961. The issue opens on Decem-
                               ber 28, 2011 and closes on January 11, 2012. The bonds are rated “AAA” by CRISIL, CARE & FITCH. The Interest
                               Income on the Bonds is tax-free in nature. The bond offers various modes of Interest payment and also offers the options
                               of issuing either in Demat or physical form. NRIs can apply on reparable and non reparable basis. The bonds will be
                               listed on NSE & BSE.

                               Interest Rates on NHAI & PFC tax free bonds

                               According to guidelines, coupon rates on tax-free bonds should not be more than G Sec yield less 50 bps for bonds issue
                               through public issue. So NHAI & PFC both opened full throttle – 8.2% for 10 year bonds & 8.3% for 15 year bonds.
                               Interest is payable annually. {PFC Bond information is based on Business Bhaskar}

In NHAI bonds it is first      What Tax Free means?
come first serve basis for
HNI & institutions but for     The income by way of interest on these Bonds is fully exempt from
                               Income Tax and shall not form part of Total Income. There will be
retail it is on pro-rata       no deduction of tax at source (TDS) from the interest, which accrues
basis. In PFC bonds al-        to the bondholders in these bonds irrespective of the amount of inter-
lotment is on basis of first   est or the status of the investors. Wealth tax will not be applicable on
come first serve basis but     these bonds.
last days applications will    Note: If you redeem these bonds through exchange before maturity –
be treated as equal – bonds    there can be capital gain tax or capital loss depending on your sale
will be based on pro-rata      price.
basis. These bonds can be
                               Allotment Basis of tax free bonds
applied in both demat &
physical form.                 In NHAI bonds it is first come first serve basis for HNI & institu-
                               tions but for retail it is on pro-rata basis. In PFC bonds allotment is
                               on basis of first come first serve basis but last days applications will
                               be treated as equal – bonds will be based on pro-rata basis. These bonds can be applied in both demat & physical form.

                               Credit Rating

                               Both NHAI & PFC Bond issues have got highest credit rating from ICRA & Care – that is AAA.

                               Issue Size

                               NHAI Bonds – Rs 5000 Crores with option to retain oversubscription upto Rs 10000 Crores

                               PFC Bonds – Rs 4033 Crores

                               30% of the base issue size is kept for retail clients. (Where application size is less than Rs 5 Lakh)

                               Minimum Application Size
According to guidelines,
coupon rates on tax-free       In case of retail investors it is Rs 50000 & thereafAter in multiples of Rs 1000.
bonds should not be more
than G Sec yield less 50       Who Can Apply
bps for bonds issue through    Individuals and HUFs, NRIs (both on repatriable & non-repatriable basis) ,Corporate, FIIs, Financial Institutions, Mutual
public issue. So NHAI &        Funds, Pension funds,, Partnership firms & Limited liability partnerships, Insurance Companies
PFC both opened full
throttle – 8.2% for 10 year    Of the total issue, forty per cent is reserved for companies and financial institutions, 30 per cent for high net worth indi-
                               viduals and Hindu undivided families and 30 per cent for normal retail investors. Corporate investors would be allotted
bonds & 8.3% for 15 year       bonds on a first-come-first-served basis, while for retail investors, the allotment would be carried out on a proportionate
bonds.                         basis.

     Baltic Tiger-A colloquial term that refers to any one of the three Baltic nations of Lithuania, Latvia and Estonia, especially
in reference to their double-digit growth rates from 2000 to 2007. The Baltic tigers achieved independence in the early 1990s,
following the breakup of the Soviet Union, and embarked on an aggressive program of economic reforms from 2000 wards.

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                         THE IBS TIMES
NEWS @ IBS– ALL HAPPENINGS IN IBS HYDERABAD!                                                   - ANKIT SHARMA
               Admire the advertising club of IBS Hyderabad bought Vegas to the campus with their event
               Juari. Admire has been known for coming out with innovative and interesting games and this
               one was no different. With games like poker, blackjack, slot machines and darts students were
               given a chance to showcase their gambling talents. The concept behind the game was simple
               participants had to register in teams of two and each team were provided 20 admiros and one
               had to increase their count as much as possible. A participant could play any event and if he
               won he was given twice or at times thrice the number of admires he initially bet. The event also
               had fun games like karaoke. The winners of the event were Anubha, Niwesh and Ojas, Ankit.

               Infinity studios the cinema club of IBS Hyderabad for the first time in the history of the college
               brought open air theatre to the campus. The Infinity studios screened the evergreen comedy An-
               daz Apna Apna starring Salman Khan Karishma Kapoor raveena Tandon and Amir Khan. The
               students of the campus were thrilled to witness an event like that and flocked in great numbers
               to watch the movie. Infinity studios also did a great job of organizing, everything was inch per-
               fect from the sound system to snacks orders and the event was thoroughly enjoyed by everyone.

               If Admire bought Vegas to Hyderabad then Maverick the marketing club of IBS Hyderabad
               was not far behind either. They organized an event called Carnival wherein participants had to
               register in teams of two and were then made to play games like break the castle, hoola hoops etc
               based on product differentiation and product identification. The contestants thoroughly enjoyed
               the event. The event was won by Lisa and Riddhi.

               Samavesh the cultural society once again enchanted its audience with their event moods of mu-
               sic. The highlight of the event was a musical performance by Atharth and many talented people.
               The Auditorium was Jam packed.

               On the 22nd of December the whole of IBS got together to celebrate Christmas in the Audito-
               rium. The atmosphere was vibrant with lights everywhere and decorated Christmas trees. It be-
               gan with popular Christmas carols like Rudolf the red nosed reindeer and jingle bells and the
               focus then shifted to cake cutting and distribution. Overall it was an amazing event with a huge

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                                      THE IBS TIMES
                                                           MARKET WATCH                                               - KRITIKA SETHI

Positive news from the US regarding new-home sales that are up 1.6% as compared to Oc-
tober 2011 and are up 9.8% as compared to last November overshadowed fears of the debt
crisis in Europe for the time being. Other US economic data too indicated strengthening of
the US economy. This led to the world markets closing the week higher adding sheen to
Christmas celebrations. The Indian stock markets were up 1.6% during the week. News
about easing of food inflation along with global cues regarding strengthening of the US
economy helped the markets post gains for the week. Sectoral indices showed a mixed
performance during the week. While Oil and gas index were up by 3.3% and FMCG index
up by 3.2% led the pack of gainers, while capital goods which were down by 3.2% and metals down by 1.6% ended the week in the
red on concerns of slowing economy.

Movers and Shakers of the week
                        SURGES                    %Change                 DOWNFALLS                       %Change
                   APOLLO HOSPITALS                   16.8               STERLING BIOTECH                     53.6
                   BALRAMPUR CHINI                    13.6               SYNDICATE BANK                       20.5
                        GTI INFRA                     12.4                   REI AGRO                         20.1

Ashok Leyland received the approval from its board to increase its stake in Optare PLC. Optare is British bus manufacturing com-
pany and Ashok Leyland's existing stake in it is 26%. The auto company intends to raise it to 75.1%. The additional stake will be
acquired at Rs 300 m. The acquisition will help Ashok Leyland get access to Optare's technology which includes modern range of
city buses. The company will be going for refinancing option whereby it will be facilitating a credit-line to support Optare's re-
banking options. A few telecom companies have been asked to terminate their 3G roaming arrangements by 3 p.m. on Saturday.
This comes after the Department of Telecom announced that these roaming pacts were illegal. While Bharti Airtel, Vodafone
and Idea Cellular have been asked to terminate these by Saturday, notices have been sent to others including Tata Teleservices and
Aircel. The telecom companies are not too happy about the decision and called it arbitrary. Since the announcement came late Fri-
day evening, they do not even have the option of any legal recourse. With valuations in Indian stock markets getting closer to the
lows of 2009, investors would do well to endow their portfolios with some heavyweight blue chip stocks and fundamentally sound
mid and small cap stocks that are currently available at attractive prices. While the volatility in stock markets may linger in the near
term, patience and smart investing at the current levels can pay rich dividends in the longer term.

Global cues
Amongst the other world markets, all were in an upbeat mood except Japan which was down by 0.1% and China was down by
0.9%. France and the US were the top gainers up by 4.4% and 3.6% respectively.

                    16,000.00                                                                             12,500.00
                                                 12,103.58                     12,169.65                  12,300.00
               S                                             12,107.74
                    15,800.00                                                                             12,100.00
               N                                                             15,813.36                            D
               S                                                                             15,738.70            J
                    15,600.00                                15,685.21                                    11,700.00
               E                                                                                                  I
               X                                                                                                  A
                    15,400.00                                                                             11,300.00

                                 15,379.34                                                                11,100.00
                    15,200.00                                                                             10,900.00

                                                15,175.08                                                 10,700.00
                    15,000.00                                                                             10,500.00
                                 19-Dec-11     20-Dec-11     21-Dec-11      22-Dec-11      23-Dec-11

                   1 2 3 4 5 6 7 8 9 10 11
                                     THE IBS TIMES
                                                     MARKET WATCH
                         2011        2011
                                    2011         2011
                                                2011         2011
                                                            2011         2011
 Sensex                  15379.34
                             -                 15175.08
                                               17569.53              15685.21
                                                                     17362.10              15813.36
                                                                                              -                    15738.70
 Nifty                   4613.10
                            -                   4544.20
                                                5289.35               4693.15
                                                                     5221.05                4733.85
                                                                                              -                    4714.00

 DJIA                    11766.26
                          12068.39             12,03.58
                                               12170.18              12107.74
                                                                     11780.94              12169.65
                                                                                           11893.79                12294.00

 HangSeng                18070.21
                          19677.89             18080.20
                                               19678.47              18416.45
                                                                     20014.43              18378.23
                                                                                           18963.89                18629.17

 FTSE100                 5,364.99
                          5510.82              5,419.60
                                               5567.34               5,389.74
                                                                     5460.38               5,456.97
                                                                                           5444.82                 5,512.70

Gold ($/oz.)
Gold ($/oz.)             1597.70
                          1791.90               1624.50
                                                 1789                 1608.80
                                                                     1760.40               1611.80
                                                                                           1766.80                 1607.00

 Crude($/bl)              102.91
                           111.08               105.05
                                                113.79                 106.98
                                                                      113.13                    -
                                                                                            111.67                     -

 INR v/s USD               53.18
                            49.04                53.92
                                                 49.40                 54.13
                                                                      49.59                  53.90
                                                                                            50.16                   53.90

 INR          v/s
               v/s         69.33
                            67.59                70.19
                                                 67.99                 70.61
                                                                      68.31                  70.56
                                                                                            68.81                   70.36
     QQQQ-The previous ticker symbol for the Nasdaq 100 Trust, an ETF that trades on the Nasdaq. This security offers broad
exposure to the tech sector by tracking the Nasdaq 100 Index, which consists of the 100 largest and most actively traded non-
financial stocks on the Nasdaq. It is also known as „cubes‟ or the „quadruple-Qs‟. This is now known as the QQQ.

                                                                                  BUSINESS JARGONS BY – SHILPI KALWANI

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