The central bank of India,RBI has bought 200 metric tonnes of gold from IMF in $ 6.7 bn $.India is now the 10th largest holder of Gold Reserves.
The big question is the reason behind such a move.Is it a move to diversify its reserves (Yes!! the rising deficit of US and declining Dollar) or to have more say in IMF or ....?Lets uncover the reasons of this move by RBI and its effect on market of gold,BOP outlook of India,financial market...
Showing posts with label News. Show all posts
Showing posts with label News. Show all posts
Wednesday, November 4, 2009
Sunday, September 27, 2009
Bharti-MTN Deal
The $ 24 billion Bharti- MTN merger deal has become an issue of international finance ,as South African Govt wants the dual listing of the merged company . The positive signals by the UPA Government like the support of Pranab Mukherjee and initiative of PM Manmohan Singh in G 20 summit can be inferred as the start of major leap in the direction of capital account convertibility. If deal goes through, MTN will hold 36 % in Bharti Airtel and Bharti will acquire 49 % in MTN.
The dual listing of the merged identity in both Bombay Stock Exchange and Johannesburg Stock Exchange requires full capital account convertibility of Rupee. This implies that the equity share of Bharti Ltd can be bought and traded in South African Rand. Till now the cross listing of companies was allowed which implied partial convertibility. The equity shares were issued to the custodians outside India, which were issued in the form of GDRs/ADRs to foreign investors. The ADR/GDRs can be converted to equity shares on the request of investors but once converted; they cannot be changed to ADR/GDRs.
What does the dual listing have implications for India Inc? Is it feasible for India to take such a major step at this stage (when the conditions laid by Tarapore Committee are far beyond realization)?
The dual listing of the merged identity in both Bombay Stock Exchange and Johannesburg Stock Exchange requires full capital account convertibility of Rupee. This implies that the equity share of Bharti Ltd can be bought and traded in South African Rand. Till now the cross listing of companies was allowed which implied partial convertibility. The equity shares were issued to the custodians outside India, which were issued in the form of GDRs/ADRs to foreign investors. The ADR/GDRs can be converted to equity shares on the request of investors but once converted; they cannot be changed to ADR/GDRs.
What does the dual listing have implications for India Inc? Is it feasible for India to take such a major step at this stage (when the conditions laid by Tarapore Committee are far beyond realization)?
Tuesday, September 22, 2009
G 20 Pittsburgh Summit
The G20 club of rich and developing economies will hold a two-day leaders summit in Pittsburgh on 24-25th September’09.
G 20,the group of developed and emerging markets ,comprising of US, India , Argentina, Australia, Brazil, Canada, China, France, Germany, Indonesia, Italy, Japan, Mexico, Russia, Saudi Arabia, South Africa, South Korea, Turkey, Britain and the EU. The group of countries accounts for 90 percent of the global output and 80 percent of world trade.
The proposed key issues to be discussed are the Doha round, management and regulation of World bodies like IMF, rebalancing of power within nations.
US meet to discuss the plan to build a more balanced developed economy, a framework to boost the savings in US and reduce the export surplus of Countries like China.
The developing countries will seek more say in world bodies like IMF, World Bank International Fin Corp. India has committed to invest up to $10 billion in the IMF to enhance its say in IMF.
Important and diverse issues are on cards. The result of the summit can hold solution to key problems looming over the world trade and growth.
And as the world leaders meet, the world watches..
G 20,the group of developed and emerging markets ,comprising of US, India , Argentina, Australia, Brazil, Canada, China, France, Germany, Indonesia, Italy, Japan, Mexico, Russia, Saudi Arabia, South Africa, South Korea, Turkey, Britain and the EU. The group of countries accounts for 90 percent of the global output and 80 percent of world trade.
The proposed key issues to be discussed are the Doha round, management and regulation of World bodies like IMF, rebalancing of power within nations.
US meet to discuss the plan to build a more balanced developed economy, a framework to boost the savings in US and reduce the export surplus of Countries like China.
The developing countries will seek more say in world bodies like IMF, World Bank International Fin Corp. India has committed to invest up to $10 billion in the IMF to enhance its say in IMF.
Important and diverse issues are on cards. The result of the summit can hold solution to key problems looming over the world trade and growth.
And as the world leaders meet, the world watches..
Friday, September 11, 2009
India: An emerging source for FDI?
Outbound Foreign direct investment from India has increased at annual growth rate of 64 per cent in the last five years. India's FDI to the US was USD 4.5 billion in 2008 and USD 2.8 billion in 2009.Inbound FDI showed a 56 percent increase to USD 3.51 billion from USD 2.25 billion in the year-ago month.
Increasing outbound FDI establishes India as a key global player. It can be for increasing focus on geographical expansion, transfer of technology, access to raw materials and moving up the value chain. But it definitely points towards as start of reversal of power relations between countries.
Increasing outbound FDI establishes India as a key global player. It can be for increasing focus on geographical expansion, transfer of technology, access to raw materials and moving up the value chain. But it definitely points towards as start of reversal of power relations between countries.
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