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- The Fiscal Compact Vol 69/ March 2012
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- The Plot Thickens Vol 61 / August 2011
- Mystical Talisman Vol 60 / July 2011
- Euro Crisis
- Switch In Time Vol 59 / June 2011
- Implicit Understanding Vol 58 / May 2011
- High Moon Vol 57 / April 2011
- Penunia Non Olet :Budget Special Vol 56/March 2011
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- Imbalance Indicator – Group of Twenty in 2011 Vol 54 / Febuary 2011
- Get Together – World Economic Forum Vol 53 / Febuary 2011
- What’s In, What’s Out Vol 52 Febuary 2011
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- Hello! Ma Baby Vol 50 / Year End 2010
- Hope All Goes Well! Vol 49 / December 2010
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- D-D-D-Danger! Watch Behind You Vol 46 / September 2010
- What`s up Doc? Vol 45 / August 2010
- Pink Panther Vol 44 / July 2010
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- Breathing Deep Vol 41 / April 2010
- Post Crisis
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- Renaissance Vol 33 / Aug 2009
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- Free Hand Vol 30 / May 2009
- Evolution Vol 29 / April 2009
- Crisis Period
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- Bridging the Gap Vol 21 / Sep 2008
- Selfish Motives Vol 20 / Aug 2008
- The People can cry much easiier than they change Vol 19 / july 2008
- The Blue Zones Vol 18 / June 2008
- Shopping Spree vol 17 / May 2008
- Living with Inflation Vol 16/ April 2008
- Will they Deliver? VOl 15 / March 2008
- Blue is the new Green Vol 14 / Feb 2008
- Nothing to Hide Vol 13 / Jan 2008
- Redfine the act of `Giving back` Vol 12 / Dec 2007
- Contest to Win Vol 11 / Nov 2007
- Design Your Identity Vol 10 / Oct 2007
- Knowledge is the mother of all virtue Vol 8 / Aug 2007
- Play by the Rules Vol 9 / Sep 2007
- Engine of Growth Vol 7 / July 2007
- Look, They are Changing Vol 6 / June 2007
- Learn, Unlearn and Relearn Vol 5 / May 2007
- Who Dares Wins Vol 4 /April 2007
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Budget 2012-2013 Vol 70/ April 2012
Posted by Ankit Agarwal in Budget, Journal of Finance on March 24, 2012
PEs trying hard to shield exit gains from tax sword
Posted by Ankit Agarwal in Taxation on April 7, 2012
7 Apr, 2012
The hullabaloo over the anti-avoidance rule and tax on short-term stock gains has largely centred around foreign institutional investors (FIIs) for the immediate and visible impact they make on markets. But the proposed changes in law are a bigger concern for the private equity (PE) club – the largest foreign direct investor group that predominantly puts money in unlisted shares of local companies.
Dispute Breaker: Advance pricing arrangements ensure fairness
Posted by Ankit Agarwal in Taxation on April 7, 2012
7 Apr, 2012
Transfer pricing has arguably been one of the key tax controversies for MNCs across the globe. With a decade of transfer-pricing regulations, six rounds of aggressive transfer-pricing audits and high-pitched adjustments, it is clear that the government wants to clamp down on companies that violate transfer-pricing norms to shift profits to jurisdictions with low tax rates.
FIIs, are you trying to avoid tax? FM is sure to get you this time
Posted by Ankit Agarwal in Taxation on April 4, 2012
Apr 4, 2012
The General Anti-Avoidance Rules (GAAR), only last week badly spooked the markets, continues to rattle investors.
Last week, Finance Minister Pranab Mukherjee calmed markets somewhat after he announced that individual holders of participatory notes (P-notes), a derivative instrument used to invest in Indian stocks, would not be forced to pay taxes or reveal their identities.
OTIS First MNC to Fall to Sharpened Tax Sword of FM
Posted by Ankit Agarwal in Taxation on April 3, 2012
3 Apr, 2012
Indian tax authorities have drawn the first blood in the war against sophisticated financial structures used to escape tax.
The Authority for Advance Ruling (AAR), a quasi-judicial body that largely decides tax issues relating to foreign companies and cross-border deals, has upheld a tax demand on OTIS Elevators, an Indian firm, and denied capital gains tax benefit provided under the India-Mauritius tax treaty to its holding company OTIS Mauritius.
Indian Auditors: Toothless Watchdogs?
Posted by Ankit Agarwal in Indians on March 12, 2012
12th March 2012,
A time has come to demand that the auditor function and
perform by being more of a bloodhound sniffing out frauds and misfeasance and cease to be a mere toothless watchdog that neither growls nor bites
Read the rest of this entry »
Finance ministry drops deposit & lending growth from performance target list for PSU banks
Posted by Ankit Agarwal in Banking on March 5, 2012
5th Febuary 2012,
CEOs of public sector banks can no longer rake in bonuses by window dressing year-end deposits and loan numbers.
For years, banks have been mopping up bulk deposits from large clients in March only to return the money in the first week of April – transactions that prop up total deposit figures for March 31.
Want to borrow money cheap? Play penny stocks
Posted by Ankit Agarwal in Security Market on February 27, 2012
27th Febuary 2012,
Dalal Street operators, who double up as moneylenders, have devised an innovative way to make money on their illiquid penny stock holdings.
It is a convenient arrangement for both the stock market operator and the borrower; the operator manages to push up the value of his penny stocks – some of which were bought at the peak of the bull run and are trading at a fraction of their earlier value – and earn a fee, while the borrower manages to raise money at lower rates. This is how it works.
The operator asks the person, who wants to borrow money, to buy a penny stock, say x, from him through a secondary market trade. Most of such borrowers are local traders, who need working capital for the daily fund requirements of their businesses.
Rural India loses steam
Posted by Ankit Agarwal in Indians on February 10, 2012
10th Febuary 2012,
In 2007, 27-year-old Kaushalendra from Bihar shunned the placement frenzy, which would see many of his colleagues earn fat salaries, in favour of a more homespun alternative: Selling fresh vegetables on a push cart to residents of his hometown Nalanda.
Europe signs up to German-led fiscal pact
Posted by Ankit Agarwal in International Affairs on January 30, 2012
30th January 2012
Chancellor Angela Merkel cemented her political ascendancy in Europe on Monday when 25 out of 27 EU states agreed to a German-inspired pact for stricter budget discipline, even as they struggled to rekindle growth from the ashes of austerity.
The decline of Davos?
Posted by Ankit Agarwal in International Affairs on January 29, 2012
Saturday, Jan 29, 2012
Davos, it appears, has ceased to excite India the way it used to do even a couple of years ago. The ongoing annual meeting of the World Economic Forum, which concludes today at the Swiss ski resort, has only one Cabinet minister-level participant from India in Commerce and Industry Minister Anand Sharma.
Wall Street closes lower as US GDP falls short
Posted by Ankit Agarwal in International Affairs on January 28, 2012
28th January 2012,
World stocks fell on Friday on news the US economy grew more slowly than expected in the last quarter of 2011, while the euro rose on hopes of an imminent deal on Greece’s debt that could help avert a disorderly default.
Vodafone wins $ 2 billion Hutchison Tax Case in SC, foreign investors cheer historic judgement
Posted by Ankit Agarwal in Court Decisions on January 21, 2012
Saturday, 21 Jan, 2012
The Supreme Court has spared Britain’s Vodafone Group Plc from paying $2.2 billion ( 11,800 crore) in taxes on its 2007 purchase of the Indian unit of Hutchison Whampoa as the deal took place between two overseas firms, providing cheer to scores of foreign investors for whom the case has become a talisman for regulatory uncertainty in India.
Will the US economy save the world again?
Posted by Ankit Agarwal in International Affairs on January 15, 2012
15th January 2012,
Just when it seemed the end was near, Uncle Sam seems to be coming back, staggering to his feet like Bruce Willis in one of the old Die Hard movies.
In case you missed them, the plots are all roughly the same: despite a hangover and a bit of flab, armed with just a revolver and a pack of cigarettes, Bruce saves the day – no matter how many machine guns and explosives the baddies have, or how muscular they might be.
Brokers exploit T+2 clause for client retention and profits
Posted by Ankit Agarwal in Security Market on January 10, 2012
10th January 2012,
Stock brokers are exploiting a grey area in the exchanges’ trading regulations to retain clients and boost income.
An innocuously-worded provision allows brokers to extend the client’s trade settlement to the fifth day if he is unable to make payment by the second day, known as T+2 – the current settlement system.
GDP growth may touch 8 per cent in 2012-13
Posted by Ankit Agarwal in Journal of Finance on January 4, 2012
o4 January 2011,
By C Rangarajan, Chairman, Prime Minister’s Economic Advisory Council
How do you see the economy in 2012? Do you think
the pessimism is overdone?
My growth estimate for the current
fiscal is 7%. Some of the factors that have contributed to the slowdown of the
economy in 2011 may have less impact in 2012. Inflation will come down and
remain more or less around 6%. With the slowing down of inflation, interest
rates may also come down. This should provide a stimulus to private investment.
The performance of the public sector can also improve during 2012.
Gold an ultimate asset bubble in bear market: Soros
Posted by Ankit Agarwal in Gold & Silver on December 30, 2011
30th December 2011,
Gold is poised to complete its 11th consecutive annual gain, the longest winning streak in at least nine decades, on the brink of a bear market.
George Soros, the billionaire who two years ago called it the “ultimate asset bubble,” cut 99% of his holdings in the first quarter, Securities and Exchange Commission data shows.
Euro not yet in a danger zone
Posted by Ankit Agarwal in International Affairs on December 17, 2011
17th December 2011,
Bad as things seem for the euro zone, the value of the euro does not suggest investors are betting Europe’s currency bloc will fall apart. Even in the wake of its recent slide, the euro at $1.30 is far from levels that would reflect fear of a break-up.
RBI not likely to hike interest rates
Posted by Ankit Agarwal in Banking on December 15, 2011
15th December 2011,
The Reserve Bank of India is likely to take a detour from its hawkish policy stance of hiking interest rates and pause after the sharp correction in IIP data. The WPI inflation has also eased a bit though below market expectations.
Europe Divided: Britain isolated as EU agrees on new fiscal union
Posted by Ankit Agarwal in International Affairs on December 10, 2011
10th December 2011,
Europe divided on Friday in a historic rift over building a fiscal union to preserve the euro, with a large majority of countries led by Germany and France agreeing to move ahead with a separate treaty, leaving Britain isolated.
China Profit Growth Slow on Property Curbs
Posted by Ankit Agarwal in International Affairs on November 28, 2011
28th November 2011
Chinese corporate profit growth, slowing on waning export demand from Europe, may be further undermined as a campaign to cool property prices reduces the value of investments.
Industrial companies’ net income rose 12.5 percent in October from a year earlier, less than half the 27 percent pace from January to September, the statistics bureau said yesterday.
Debt crisis: European turmoil could slow US recovery
Posted by Ankit Agarwal in International Affairs on November 12, 2011
12th November 2011,
For the second time in two years, European debt troubles threaten to slow the momentum of the fragile recovery in the United States.
Although US financial institutions have taken steps to protect themselves from Europe’s long-simmering problems, the likely slowdown in Europe could damage consumer and business confidence in America and strengthen the dollar, making US exports less competitive.
“Financial contagion can lead to the very rapid global spread of recession,” said Chris Varvares, senior managing director for Macroeconomic Advisers, a forecasting company.
Sinking rupee pulls down Q2 net of Nifty cos
Posted by Ankit Agarwal in Currency on November 7, 2011
7th November 2011
The sharp fall in the Indian currency during the quarter to September has come to hurt some of India’s top companies that have an overseas business presence, with the loss on account of an unfavourable currency movement amounting to over Rs 1,130 crore or close to 10% of the cumulative net profit for nine companies that are part of Nifty50.
The hit for these companies because of the rupee’s slide against the dominant currency such as the US dollar, whether realised or on account of mark-to-market, comes at a time margins are getting squeezed owing to higher borrowing and raw material costs.
State Bank of India may not follow RBI in raising rates
Posted by Ankit Agarwal in Banking on October 22, 2011
22nd October 2011
State Bank of India (SBI), the country’s largest bank, may refrain from raising rates in the near future even if the banking regulator, the Reserve Bank of India, hikes policy rates.
Rupee volatility to affect revenues of IT companies
Posted by Ankit Agarwal in Currency on October 22, 2011
22nd October 2011
The sharp depreciation in the rupee has been acting as a vital cog in determining the revenues and profitability of IT companies. And with the rupee hitting a 30-month low on Friday, trading at around Rs 50 to the dollar, this looks set to continue.
