Start with Search - Type your requirement here

Sunday, January 27, 2008

Grievances - IR

GRIEVANCES – claims concerning individual/collective RIGHTS under contract of employment/laws/usage;

Causes – ARISES from day-to-day working relations; LEADS to embitterment of working relationship;

PROCEDURE for settlement – fairness & justice through determination of respective Rights & Obligations of parties; a substitute for or a delaying factor in respect of direct action in the form of strikes; has successive steps @ different levels which is binding & final unless appealed.

Essence of MODEL GRIEVANCE PROCEDURE – not only be settled but also seem to be settled in the eyes of aggrieved;
Ä Settlement @ LOWEST level;
Ä Settlement as EXPEDITIOUSLY as possible;
Ä Settlement to the SATISFACTION of aggrieved.


\ lack of satisfaction
/ lack of satisfaction
IMMEDIATE SUPERVISOR (lowest) à <= 48 hours

Bipartite Grievance Committee will have representatives from both Management & Workers.
APPEAL lie to Organisation Head <= 3 days of decision.

Understand this for Industrial Relations (IR) - CS final Group III.

What is a recession?

What is a recession? Recession means...

It is a protracted slowdown of the economy. T
The slowdown is usually classified as a recession if it lasts at least six months [means, >= 6m].

The technical definition is ‘two consecutive quarters in which the gross domestic product (GDP) decreases’.

The GDP is all the goods, services and products a country produces.

The typical symptoms of a recession are:
1. People buying less (retail decline).n Decrease in factory output.
2. Growing unemployment (In the US, unemployment recently rose to 5 per cent, another sign of an imminent recession).
3. Slump in personal incomes.
4. A dipping stock market.


Courtesy - Hindustan Times



You got to very clear with these terms for Human Resource Management (HRM) paper of CS Final Group-III or Ethics Paper in Module-IV of CS Professional Program

POLICIES = Guide: Plan of action – statement of intention & commits management to a definite course of action. MORE Specific. Say, to provide healthy plant by giving adequate attention to cleanliness, temperature, ventilation, light, etc…

PROCEDURE: Detailed method for carrying out a Policy.

PRINCIPLE/OBJECTIVE = Fundamental Truth: TOO General. Say, to provide a safe plant & a healthy working environment.

ETHICS = Philosophy: Set of belief, standards accepted & practised. As to,

  1. What is Right?
  2. What is Wrong?
  3. What ought to be?

Enjoy Writin..... CS Final

Thursday, January 24, 2008

Understand REIT

REIT Regulations made simple....can v say?!


What is this Reit? - Real Estate Investment Trusts (REIT) Regulations.

Credits to the Maker, Thanks to Mr. CS TRIDIB BARAT.

Interesting Charts on REIT by

Understand REIT regulations, the most interestin & this way


Keep Interestin...

Tuesday, January 22, 2008

Y Market Freezes ?

Sometimes questions arises why BSE or NSE closed for the entire day when sensex or nifty falls or rises beyond certain level.

Here lies the answer,because of the index based market wide circuit breaker system implemented by both exchanges pursuant to SEBI circular, which is placed for our bloggers perusal-:

SEBI circular SMDRPD/Policy/ Cir-37/2001 dated June 28, 2001

The index based market wide circuit breaker system

The system is applicable at three stages of the index movement either way at 10 per cent, 15 per cent and 20 per cent. This circuit breaker brings about a coordinated trading halt in all equity and equity derivative markets nationwide.

This is in addition to the price band imposed for individual stocks by the Exchanges.

The market wide circuit breakers would be triggered by movement of either Sensex or the NSE S&P CNX Nifty whichever is breached earlier.
In case of a 10 per cent movement of either of these indices, there would be a 1-hour market halt if the movement takes place before 1 p.m. In case the movement takes place at or after 1 p.m. but before 2.30 p.m. there will be a trading halt for ½ hour. In case the movement takes place at or after 2.30 p.m. there will be no trading halt at the 10 per cent level and the market will continue trading.
In case of a 15 per cent movement of either index, there will be a 2-hour market halt if the movement takes place before 1 p.m. If the 15 per cent trigger is reached on or after 1 p.m. but before 2 p.m., there will be a 1-hour halt. If the 15 per cent trigger is reached on or after 2 p.m. the trading will halt for the remainder of the day.
In case of a 20 per cent movement of the index, the trading will be halted for the remainder of the day.
These percentages are translated into absolute points of index variations on a quarterly basis. At the end of each quarter, these absolute points of index variations are revised for the applicability for the next quarter. The absolute points are calculated based on closing level of index on the last day of the trading in a quarter and rounded off to the nearest 10 points in case of S&P CNX Nifty.

Now you can chat without downloading messenger. Click here to know how.

Friday, January 18, 2008

Imposing of Price Band on the day of Listing

SEBI proposes to impose price band on the day of Listing

q Introduction
This is a proposal by SEBI for imposing a price band of 25% on the issue price on the day of listing of IPOs of issue size upto Rs 250 Cr. This proposal does not apply in case of re-commencement of trading of the equity shares of a company on the stock exchanges.
q Background
Currently, the stock exchanges do not apply price bands on the day of listing of Initial Public Offerings (IPOs). The price fixed by the company in consultation with its lead managers is left open to price discovery in the matter and after the day of listing, this process of price discovery may continue within a price band of 20%. For IPO issue sizes that are greater than Rs.500 Cr, price bands are not imposed even after the day of listing if such scrips are available for trading on the derivative segment.
q Issue for Consideration
Recently, it has been noticed by SEBI that there are significant price & volume spikes/ volatility on the day of listing of IPOs. This was particularly noticed in IPOs of issue size upto Rs 250 cr. In particular, for several such IPOs, where the stock available for trading in the hands of public, after excluding shares of promoters and others that face a lock in period is about 25-30% of the equity capital of the company, the price may not sustain on subsequent days leading long-term investors to become dissatisfied with the dramatic activity on the day of listing.
While it is appreciated that demand /supply mechanics should freely determine the market price, large scale price/volume fluctuations on the first day of trading seem to warrant a systemic response to contain such sharp movements. Accordingly, there seems to be a need to consider a price band even on the day of listing of IPOs. This would not only assist in a more orderly price discovery process over a period of time, instead of on the day of listing, but more importantly also have a salutary impact on potential abnormal price movements on the day of listing.
The matter has been also deliberated at length in the meetings held by SEBI with the stock exchanges. A back testing was also carried out by the stock exchanges on the IPOs during the past year, using parameters such as issue size, price variation on day of listing, maximum variation on day of listing as well as price variation on subsequent days. It was noticed by SEBI that IPOs of issue size upto Rs 250 Cr exhibited more volatility than IPOs of greater issue size. After taking into account the views of the stock exchanges and the results of back testing, it was felt that there is a need to impose price bands on the day of listing of IPOs in a cautious and gradual manner to facilitate steady and sustained price discovery over a period of time.
Comments/suggestions are invited from the public on the above proposal by SEBI, so as to reach SEBI by January 31, 2008.
Comments /suggestions may be sent by email to the following addresses (Mr Sanjay Purao) (Ms Sapna Sinha)

5, 50, 500, 5000 - Store N number of mails in your inbox. Click here.

Sunday, January 13, 2008

Banking for CS

SECTION 5(i)(b) of The BANKING REGULATION ACT, 1949: “Banking”:
1.Acceptance of deposit from public;
2.for the purpose of lending/investment;
3.repayable on demand/otherwise; &
4.withdrawable by means of any instrument whether cheque/otherwise.

1.The objective is to promote diversified, efficient & competitive financial system;
2.Thrust on improving the operation & allocates efficiency by focus;
3.Monetary control reforms & restructuring the financial condition;
4.Building infrastructure & reviewing HR policies;
5.Reduce intermediate cost & promote competition;
6.Create an environment & infrastructure for Government securities;
1.Mergers & closure of banks: introduce Narrow Banking;
2.Create three tier banking structure AS TO International, Large & Medium and Cluster of districts;
3.Separate regulatory role of RBI & supervisory role of GOI;
4.Revamp bank functioning by inducting professionals, depoliticising, right sizing, VRS, review HR policies, etc…
5.Strengthen Bank Balance Sheet – revamp bank laws.

NARROW BANKING: Invest deposits in safe & liquid assets, thereby reduction of risk of failure. It is for weak banks. The advantages include,
1. Stable returns; 2. Easy monitoring by RBI; 3. Immune to runs.
The disadvantages include,
1.Divide banking sector into specialised Deposit & Loan making institutions;
2.Split depositors into Risk averse/loving or a combination;
3.Limited area of operations.

RELATIONSHIP BANKING: “Transaction oriented”, hence each transaction is weighted against profit & cost and decisions are taken. Thus focus on value based relations & mutual growth.

SOCIAL CONTROL – “additional control & restrictions” as to,
1.Whole time chairman & Board of directors should have special knowledge & practical experience.
2.Restriction on loans/advances to its directors or to interested firm/individuals (S-20) & also loans not against its own shares.
3.Punishment for obstructing any one from entering/leaving bank or holding demonstration within bank or acting to undermine depositors confidence in banks.Report of RBI & Central 4.Government to acquire undertakings of banking company.

Must Know Terms...
1. SECTION 17 – Reserve Fund >=20% (Profit as per S-29) before declaring dividend. The Central Government on recommendation of RBI, declare by order in writing to exempt from this provision only if Reserve Fund+Share Premium >=Paid up capital. The appropriation from Reserve Fund/Share Premium, then report to RBI within 21 days.
2. SECTION 18 – Cash Reserve >=3% of total demand & time liability as on last Friday of II-preceding fortnight with itself or balance in current a/c. with RBI or Net balance in current a/c. & submit return within 20th of every month.
3. SECTION 24 – Statutory Liquidity Ratio (SLR) ranging between 25-40% of demand & time liabilities as on last Friday of II-preceding fortnight by way of cash/gold/unencumbered securities.
4. For sections 18 & 24, the liability does not include, Paid up capital or Reserves or P/L credit, advance from RBI/Development/EXIM/Nationalised bank and if Regional Rural Bank, the loan from its sponsor bank; RBI may specify the liability & its decision is final; “Fortnight” means Saturday to II-following Friday (both inclusive). SECTION 19 – Bank can hold shares as pledgee or absolute owner or mortgagee <= 30% if PC+FR of its own or PC of that other company, whichever is lower; PC=Paid Up capital; FR=Free Reserves. It also permits to form subsidiary company. RETURNS TO RBI:
S-24: Monthly return of liquid assets & liabilities;
S-25: Quarterly return of assets & liabilities in India; Annual statement of all Inoperative accounts for 10years within 30 days of Calendar Year to RBI;
S-26: Unclaimed deposits >= 10years; S-27: Monthly return of assets & liabilities.

Simulating, Assets into Securities & Securities into Liquidity on an on-going basis, increasing turnover of business & profits
Under SARFAESI (Securitisation And Reconstruction of Financial Assets & Enforcement of Security Interest) Act, “securitisation” means acquisition of financial assets by an securitisation/reconstruction company from any originator, WHETHER by raising funds by such securitisation/reconstruction company FROM QIB by issue of Security Receipt (SR) REPRESENTING undivided interest in such financial asset or otherwise.
Thus, it is a process of conversion of illiquid non-negotiable & high valued financial assets into securities of small value which are tradeable & transferable.
STEP1: Company sells receivables to SPV (Special Purpose Vehicle) & takes cash;
STEP2: SPV converts assets into securities & sells in marketable lots;
STEP3: Repayment directed by company to SPV A/C.
STEP4: SPV pays by way of returns.
STEP5: Shortfall in non-recovery borne by company in a separate a/c.
TYPES include,
1. Mortgaged Backed Securitisation – by NHB through SBI Caps to LIC HFC.
2. Debenture Securitisation – ICICI close ended scheme.
1. Matched funding as to asset maturity;
2. Raise additional resources;
3. Trims Balance Sheet of company;
4. New opportunity to investors.

ALM – Asset Liability Management or Balance Sheet Management is the process that helps the management to protect & preserve business providing damage control, enhance returns & strengthen the institution; It means, (managing business after assessing the risk involved)
1. Identifying the “asset-liability mismatch” risk;
2. “Quantify” the risk;
3. Deciding the “Acceptable” level of risk;Monitoring & “controlling” such risk.

When there is only one a/c., current a/c. payments are presumed to have been appropriated to the debit items in the order of date. The presumption of law being “the first item on debit site is discharged/reduced by the first item on the credit side; the credit entries in the a/c. adjust/set-off the debit entries in chronological order”. As a safeguard (to escape from Clayton’s rule),
1. The banker should break the a/c. & open fresh a/c. on death/retirement/insolvency of a partner;
2. If the guarantor/surety of debt becomes insolvent/dies, the Claytons rule would prevail.

PROCESS1: Debtor making payment has the right to appropriate;
PROCESS2: Otherwise: Creditor has the right to appropriate;
PROCESS3: Otherwise: Appropriation by presumption of law.

FIRST, adjust/set off towards interest & then to Principal.
If both trust & personal monies deposited, the money first drawn treated as personal money & then trust money.

Also read The Negotiable Instruments Act from

Enjoy passin...

Tuesday, January 1, 2008

Surrender profit,if you are designated investor..SEBI ....follows.... SEC

SEBI is in the verge of amending the insider trading regulations so as to make any 'Designated Insiders' to surrender his profit if he enters to a buy and sell transaction within six months in line with sec 16(b) of Securities Exchange Act of U.S.

Conditions when Triggerred-:

1) When you are an Designated Insider-

'Designated Insider' will be defined in a broader way than current insider definition but will be narrower than current deemed Insider definition.Directors,officers and 10% owners will be included.

2)When you buy and sell within Six months

3)Intent of the person is Immaterial-
No need to find Guilt

4)Short Swing Profit to be surrendered

If any professional has any suggestion to make regarding
1) the definition of term 'designated insider' or
2) exemption to be granted (like Merger,Amalgamation,Regulatory Approval,Gift etc) or
3) calculating the purchase and sale price or
4) counting of six months

can offer it to

SEBI reduces the load of the investor

Waiver of entry load for direct applications for Mutual Fund investments
At present irrespective of the mode of entry, investors are required to pay the entry load.Keeping in mind the interests of investors and to facilitate the growth in Mutual Fund industry, with effect from January 04, 2008, investors making applications for investments in Mutual Fund schemes directly without routing through any distributor/agent/broker i.e. through internet, submitted to AMC or collection centre/ Investor Service Centre would not be subject to entry load as per SEBI's new circular. This waiver shall also apply to additional purchases done directly by the investor under the same folio and switch-in to a scheme from other schemes if such a transaction is done directly by the investor.
The growth of mutual fund industry in the past years and the technology available for investments has enabled investors to take informed decisions and to invest in mutual funds through internet and other modes without availing of services of distributors/ agents/ brokers.
There was an overwhelming response in favour of the proposal by SEBI on waiver of entry load for investors who do not route their mutual fund applications through a broker/ distributor.

Download prohibited? No problem. CHAT from any browser, without download.

Permission for Short Selling of shares by FIIs

Dear All,

Every one aware of that the SEBI has announced permission for short selling of securities by the Financial Institutions including SEBI Registered FIIs.

In terms of A.P.(DIR Series) Circular No.53 dated December 17, 2003 wherein SEBI registered FIIs/sub-accounts of FIIs were permitted to buy/sell equity shares/debentures of Indian companies. In terms of para 5 of the Annex to abovesaid, FIIs are not allowed to engage in short selling and are required to take delivery of securities purchased and give delivery of securities sold.

Vide AP DIR Circular No.23 dated 1st Janaury 2008 ( Today), It has now been decided in consultation with Government of India and SEBI, to permit Foreign Institutional Investors (FIIs) registered with SEBI and sub-accounts of FIIs to short sell, lend and borrow equity shares of Indian companies. Short selling, lending and borrowing of equity shares of Indian companies shall be subject to such conditions as may be prescribed in that behalf by the Reserve Bank and the SEBI / other regulatory agencies from time to time.

The above permission is subject to the following conditions:

(i) The FII participation in short selling as well as borrowing /lending of equity shares will be subject to the current FDI policy and short selling of equity shares by FIIs shall not be permitted for equity shares which are in the ban list and /or caution list of Reserve Bank.
(ii) Borrowing of equity shares by FIIs shall only be for the purpose of delivery into short sale.
(iii) The margin/collateral shall be maintained by FIIs only in the form of cash. No interest shall be paid to the FII on such margin/collateral.

The designated custodian banks shall separately report all transactions pertaining to short selling of equity shares and lending and borrowing of equity shares by FIIs in their daily reporting with a suitable remark (short sold/lent/borrowed equity shares) for the purpose of monitoring by the Reserve Bank.

Thanks & Regards
Karvy Investment Banking

CS Updatin...

See Yes -> Yes, ACS

↑ Grab this Headline Animator