INDEPENDENT DIRECTORS OF MCX GET BIG SALARY HIKES

June 29th 12,
- July
4th, 2015
September 7 - September
2015
Independent
directors
of MCX
get big
salary
hikes
imPaCt
oF greeCe
debt
CriSiS
Sebi
moveS
money
TagainSt
laundering in
An MCX spokesperson did not
he
remuneration
of Ravi Kamal Bhargava who earned
Motherson suMi, Bharat Forge, havells, Cox & Kings and hCl
independent directors of Multi `14.7 lakh. Independent Chairman respond to an email seeking
teCh
Fall
comments
on the
hike. up to 6%
Commodity Exchange of India Satyanand Mishra earned `12 lakh.
(MCX) has shot up considerably in
pressure
The mounting
Greek
crisisshowed
The annual
report
that on the company’s stock price.
In comparison, JJVALJAUHARI
Mehrotra earned
the past couple of years. Earnings
and the
uncertainty it there
brings,was
have
turned
a 100
per cent hike
`6.2
lakh
in
FY14.
Anantharaman
of independent directors (IDs) have
Havells is another stock to watch, according to
the Street cautious and
led tofee
markets’
in sitting
for board meets
seen a 100-200 per cent hike over and Bhargava earned `9.3 lakh
analysts looking primarily at translation impact of
fall. Although markets recovered
part
andaasignificant
50 per cent
one in fee for
the previous year. When compared and `9.9 lakh, respectively that
currency due to its Sylvania operations. The impact
he Securities and Exchange Board of of the losses as the day ended,
companies
with during last
committee
meetings
to the earnings of the members of year, while Mishra, who had joined
on earnings, however, might not be meaningful
year.
Tillshare
Juneprices
2014, directors
their
India (Sebi) has moved against four visible exposure to Europe saw
pre-crisis board in the financial year midyear took home `2.4 lakh.
due to lower profit contribution in the overseas
sharply.
companies
listed
a special platform
In FY13, fall
then
Chairman Venkat drew a fee for `20, 000 for
ending March
2013,
this on
represents
business, say analysts.
Chary drew the highest fee among all meetings. “Thereafter, the
fund-raising
by small
and medium
a created
tenfold for
rise.
These numbers
came
Some of these stocks were already
under
pressure
Cox non& Kings, too, was under the spotlight as a
independent directors, he drew ` 2 sitting fees payable to the
Sebi’s latest
investigations
toenterprises
the fore in (SMEs).
the company’s
last week, when the possibleexecutive
exit of Greece
waswas revised
directors
significant
part of the Ebitda (earnings before
lakh.
Others
namely
Shvetal
Vakil,
annual
report filed
withentities
the stock
have revealed
certain
manipulated being discussed. They lost between one and six per
upwards and they wereinterest,
entitled tax, depreciation and amortisation) it
BR
Barpande
and
CM
Maniar
drew
exchanges.
the share price of these companies to cent (a few ended flat) of their value on Monday.
`40,000 is from the UK travel and education
between `50 ,000 and `1.5 lakh, the to sitting fees of generates
launder
a
per meeting
for attending
The
steepmoney.
rise The
wasregulator
due tohasa barred
business. The stock that had been trending down
“Theshowed.
extent to which the markets
can correct
annual report
total of 239 persons
including the
of theforBoard
combination
of a/ entities,
significant
more than a month fell 11.6 per cent intracannot be gauged looking atthe
the meetings
multiple risks
A person familiar with the MCX and `30,000 per meeting for
four companies,
from fees
accessing
the market.
increase
in the sitting
paid by
that are involved,” says Mayuresh Joshi at Angel day but closed 5.6 per cent lower at Rs.236.20 on
said, “In the absence attending the meetings of any
the
per board/committee
Thecompany
four companies
are Eco Friendlyboard
Food matters
Broking, who believes the flight
towards the dollar Monday.
of
a
full-time
managing
director, the committee of the Board,” the
meeting
and
in
the
number
of
such
Processing Park Limited, Esteem Bio Organic and precious metals
might be there till the clarity
Among auto ancillary companies have exposure
company is now run through various report said.
meetings,
disclosures
in the HPC
annual
Food Processing
Limited,
Biosciences
on the Greece matter comes through, keeping
to Europe like Motherson Sumi and Bharat Forge.
committees. The independent
report
showed.
The
number
of
Limited, and Channel Nine Entertainment equity markets volatile.
It further added that following
Companies like Motherson Sumi and Bharat Forge
committees, of which the IDs were directors, who are manning these
Limited. The first three are involved in
the ones that can see risks increase with the
Nilesh
managing
Kotak Mutual of areManoj
areShah,
having
to put director
in the at resignation
part of, also went up following the committees,
Vaish,
whoand
wasauto
MD forEuropean
a brief crisis deepening, says Joshi. Bharat
agricultural businesses, while the fourth is Fund,
says
certain
pharma
time
and
effort.stocks
Thesein IT,
resignation of managing director considerable
period, “the
Board constituted
a production
and distribution
company
for and
Forge derives about 25 per cent of its revenues
ancillaries
significant
to Europe
factors
industryhaving
standards
of exposure
and
chief executive
officer Manoj
management
serials,
events.
The companies
from exports to Europe.
willpaid
underperform.
Since Greece issue is well committee
sitting fees
by public sector
Vaish
earlyfilms
in theand
financial
year.
profit limit, set by the Companies
comprising of exchange officials
were listed on the BSE between January
known
time, it is unlikely to cause as
firms were
taken for
intosome
consideration
Act.and
Of this,
Managing
Director
Besides,
pharma
techJoint
players
that export
(which was disbanded
later),
According to the annual report while deciding the hike last year.”
and March 2013. “I am of the considered much correction as in the 2008 Global Crisis, said
Singhal
drew
crore; This
Vaish
oversight committee and
selectionare PK
to Europe
likely
to feel
the`1.56
pressure.
for 2014-15, MCX paid `80.9 lakh
view that the schemes, plan, device and Shah. From India’s point of view, our markets
drew and
`19.13
lakh during
brief
in sitting fees to its independent The annual report said, “The sitting committee. Also, an independent
includes Dr Reddy’s
Aurobindo
— thehis
latter
a little lower volatility than peers as
artifice employed in this case, apartfees
frompaidwould
to witness
the non-executive
stay. The
exchange
paid
around
directors’ committee had
and acquired
ethics Actavis
directors.
to consolidate European
are least impacted
from the unfolding events in
directors we and/or
independent
being a possible case of money-laundering
committee were constituted
during `25.6 lakh to non-independent,
business.
and EU,
Among
majorwhich
beneficiaries
of seen
directors
were fixed
by he
theadded.
Board FY 2014- 2015.” MCX had 20 such non-executive directors the previous
or tax the
evasion,
could be
by Greece
this hike are former LIC Chairman and thereafter was approved and
Besides, Jubilantfinancial
Life Science’s
year. licensed chemical
committees
as of last year.
the concerned law enforcement agencies Anil Sarin, executive vice-president
at Edelweiss
DK Mehrotra who received a total ratified by the shareholders in the
business, Dr Reddy’s and Lupin’s German business
separately, is prima facie also a fraud in Global Asset Management, echoes a similar view.
remuneration of `22.1 lakh. He last AGM of the company. The same Total managerial remuneration
can see some pressure, says
Surjit Business
Pal at Prabhudas
Source:
Standard
He limits
says the
impact on
Indian equities market will
the followed
securitiesbymarket,”
said the Sebi isorder.
within the
prescribed
under
stood at `2.63 crore, well
within the
was
G Anantharaman
11 September,
2015
Lilladher,
who believes that the impact
will be seen
be limited
and the correction`12.57
offerscrore
goodorentry
the Companies
Act, 2013.”
Entities
up the`19.3
shareslakh
of the
companies
11 peronly
centinofthe
net
who
tookbidhome
and
second quarter of 2015-16.
to convert black money into white, according opportunities for investors.
to the Sebi order. The total profit earned Nevertheless, for now, while the broader market Though pharma companies have so far made up
by the entities involved is pegged at Rs. will be under pressure, among the stocks that for the cross currency headwinds through strong
US growth, revenue growth would be much higher
468.99 ut
crore.
ban comes
into forceFloat
with have
come
withheat
models
of The
India’s
50 millioncould
seeupmore
would be companies with if Europe also contributed well.
immediate
barred
out payment
for HCL Tech generates
odd effect.
smallTheand
medium that easehigher
exposureissues
to Europe.
enterprises (SMEs), only six SMEs. about a third of its revenues from the European India VIX jumps most in 7 weeks Country’s
to seven per centSource:
manage
to getStandard region and looking at the uncertainties in Europe benchmark gauge of option costs jumped the most
Business
Bengaluru-based Capital Float has
access to funds. With the Indian
as million
well as the
currency
headwinds, the stock could in seven weeks as stocks declined amid concern
June30,raised
2015 $17
in funding
from
Greece will leave the euro region. Demand for
start-up eco-system blooming,
say analysts.
Sequoia remain
Capital,under
SAIFpressure,
Partners,
protection against swings in Infosys surged to a
entrepreneurs are now using
and Aspada.
The company
Crompton
Greavesis also
(excluding the consumer two-month high. The India VIX Index rallied 9.8 per
technology to tap this space.
using its business)
equity to has
finance
loans exposure to Belgium cent to 17.30 at the close in Mumbai Monday, the
significant
On the other hand, a plethora of from banks and other lenders. Its
and other parts of Europe. After the acquisition steepest gain since May 12. The CNX Nifty index
players such as Paytm, Oxigen, revenue model is a combination of
of the Belgium-based Pauwels Trafo/Pauwels fell 0.8 percent to 8,318.40, its biggest drop in two
Mobiqwik and others have interest and fees.
Group in May 2005, the company had acquired weeks. BLOOMBERG
emerged, who want to cater
“The SME
market
is (Ireland), ZIV (Spain)
GANZlending
(Hungary),
Microsol
to retail customers and reduce
massive and
in India
and there
is a These acquisitions had
Sonomatra
(France).
Source: Business Standard
their payment issues. New-age
huge under-served
of $200
pushed themarket
company
into the league of the top
June 30, 2015
technology-based companies such
billion that
traditional
lenders don’t
electrical
companies
in
the
world.
However,
as Innoviti, Pine Labs, and Capital
significant exposure to Europe has brought
liSted SmeS
T
U
Start-ups target SME funding
O
Category I Merchant Bankers
www.pantomathgroup.com
Angel Funding Network
www.smeipo.net
Debt Syndication
www.pantomathangels.com
M&A
Corporate Advisory
www.dobusinnessindia.com
June 29th 12,
- July
4th, 2015
September 7 - September
2015
“India has a huge SME segment “For the documents, we integrate crore from Catamaran Ventures and
whose lending needs have been with a number of third-party New India Investment Corporation
ignored. Various estimates suggest sources in order to fetch documents of Canada, and has built a lending
for creditand
distribution
on behalf of Forge,
the applicant
so he or marketplace
about $200
billion fundssuMi,
are Bharat
Motherson
havells,
Cox & Kings
hCl
need
to provide
them
required by SME in India for their she doesn’t
teCh
Fall
up to
6% that brings lenders, buyers and
working capital needs. At present, to us. This simultaneously reduces sellers together. It also has a
pressure
on thepayment
company’s
stock price.system that
JJVALJAUHARI
The mounting
management
the loadGreek
on thecrisis
applicant,
as well
this is mostly funded
by loan taken
and the uncertainty itas
brings,
havethe
turned
increases
level of trust in the reduces loss of revenue due to
from family and relatives. For
Havells is another stock to watch, according to
the Street cautious and
markets’
dataled
thattowe
receive. Besides, we wastage and errors for merchants.
Bank loans, the time taken is two
analysts looking primarily at translation impact of
Although markets recovered
part
havea significant
a patent-pending
document
Founded in 2013, Capital Float has weeks tofall.
currency due toInnoviti’s
its Sylvania
operations.model
The impact
marketplace
has
one-and-a-half
months.
management
he aSecurities
Exchange
companiessolution
with that makes
created
proprietyandplatform
toBoard of of the losses as the day ended,
on earnings,
however,
might
not with
be meaningful
already been
tested
two large
Since
many
have
to
focus
on
daysure
no
documents
slip
through
the
evaluate
the
financial
condition
of
India (Sebi) has moved against four visible exposure to Europe saw their share prices
due to lower profit
contribution
in the
overseas
cash-and-carry
players
in India.
The
an SMEcompanies
and provide
working
capital platform
to-day operational
fall sharply.issues, they do cracks,” said Rishyasringa.
listed
on a special
business, say analysts.
uniqueness of the platform is that
requirements in about seven days, not have the time to stand in long
He added
several companies in it validates the buyer (merchant/
created
for fund-raising
by smallbank
and medium Some of these stocks were already
compared
to a traditional
under pressure
banks,” added Sashank the US are using technology
Cox & Kings,
to too, was under the spotlight as a
that would take
two Sebi’s
months.investigations
At queues at
enterprises
(SMEs).
last week, when the possible exit of Greece was
SME) for the sellers and lenders
disrupt
this
segment.
“Capital
Float
Rishyasringa,
co-founder,
Capital
present,
the
company
is
working
significant
part of the Ebitda (earnings before
have revealed certain entities manipulated being discussed. They lost between one and six per
and they get access to short-term
with all major e-commerce Float. The company has created is not only making access
of funds
interest,
tax, depreciation and amortisation) it
the
share— price
of these
companies to cent (a few ended flat) of theirtovalue
on
Monday.
credit lending for seven to 14 days.
players
Flipkart,
Snapdeal,
SMEs easier, but we
are alsois from
generates
the UK travel and education
a platform
that focuses on getting
launder
The regulator
a
Jabong, money.
Amazon,
Myntra, has
etc barred
creating
data
and
insight
that
is
business.
The
stock
that
had been
trending
down
“The
extent
to
which
the
markets
can
correct
Source:
Business
Standard
smallofmerchants,
and
businessincluding
to thethedetails of the merchant and unique,” he added.
total
239 persons
/ entities,
for
more
than
a
month
fell
11.6
per
cent
intrabe
gauged
looking
at
the
multiple
risks
business service providers. The collectioncannot
10
September,
2015
of documents in a way
four
companies,
from accessing
the market. that
company
is a registered
nonbanking
but closed
5.6 per cent lower at Rs.236.20 on
are involved,” says Mayuresh
Joshi
at Angel
Another
player
in this day
segment
is
to the applicant
The
four company.
companies are Eco Friendly that’s
Food convenient
financial
Broking, who believes the flight
towards
the dollar
Innoviti,
which
recently Monday.
raised `30
as
well
as
the
underwriting
team.
Processing Park Limited, Esteem Bio Organic and precious metals
might be there till the clarity
Food Processing Limited, HPC Biosciences on the Greece matter comes through, keeping Among auto ancillary companies have exposure
to Europe like Motherson Sumi and Bharat Forge.
Limited, and Channel Nine Entertainment equity markets volatile.
Companies like Motherson Sumi and Bharat Forge
Limited. The first three are involved in
are the ones
canmay
see risks
with the
Nilesh
Shah, managing
director
at Kotak
Mutual
RELIEF RALLY in Asia and
government
moves
bring
cheer,
but traders
feel that
gains
notincrease
be
agricultural businesses, while the fourth is Fund, says certain stocks in IT, pharma and auto European crisis deepening, says Joshi. Bharat
sustainable ahead of Fed meet next week
a production and distribution company for ancillaries
having significant exposure to Europe Forge derives about 25 per cent of its revenues
serials,
films
andin events.
The
fromOctober
exports to`Europe.
underperform.
Since
issue is
relief
rally
Japanese
andcompanies
or 1.59%, will
on Wednesday
to close
at Greece
percentage
gainwellsince
1,194 crore on Wednesday, they
were Chinese
listed on
the markets
BSE between
knownabout
for some
time, in
it is unlikely
to cause
as government’s have bought shares worth ` 21,500
stock
lifted January
25,719, rallying
800 points
2008. The
Chinese
Besides, pharma and tech players that export
muchtrading
correction
as in The
the 2008
Global
and March
2013.across
“I amAsia,
of the
considered
the gloom
with
the past two
sessions.
move
to Crisis,
speedsaid
up tax reforms, crore in August and September (so
to Europe are likely to feel the pressure. This
Shah.
India’s
point ofboost
view, infrastructure
our markets spending, and far).
viewclocking
that the
schemes,
device
andgained
India
gains
for theplan,
second
Nifty
130From
points,
or 1.70%,
includes Dr Reddy’s and Aurobindo — the latter
witness
little lower
than use
peersofas public-privatestraight
day on short
end thewould
day at
7,818,aabove
the volatility
accelerate
artifice employed
in this covering
case, aparttofrom
had acquired Actavis to consolidate European
we are least
unfolding events
in to support “I would say most of the risks are
after
indicescase
bounced
back crucial technical
level impacted
of 7,800. from
BSE the
partnership
model
beingmajor
a possible
of money-laundering
business.
now priced into the market in the
Greece
EU, he
from
oversold
Besides,
Midcap
andand
Small
capadded.
index economic growth also lifted spirits.
or tax
evasion,territory.
which could
be seen
by index
short
“said licensed
PiyushGarg,
EVP &
Besides,
Jubilant
Lifeterm,
Science’s
chemical
government
approval
on gold agencies
rose 1.9%Anil
and 1.8%,
“Markets
be touching
8,000the concerned
law enforcement
Sarin, respectively.
executive vice-president
atshould
Edelweiss
CIO, ICICI
Securities.
“I would
advise
business,
Dr
Reddy’s
and
Lupin’s
German
business
monetisation,
8,100 levels as target for the second
separately, isoffshore
prima wind
facie energy,
also a fraud
in Global
Traders
with Asset
shortManagement,
positions echoes a similar view. can see some pressure,
people to
beSurjit
in large
quality
says
Pal atcaps,
Prabhudas
and
telecom
spectrum
trading
also
of September
because of smart
He
says
the
impact
on
Indian
equities
market will
the securities market,” said the Sebi were
order. caught unawares, suffering half
names
or
buy
the
Nifty
futures
while
Lilladher, who believes that the impact will be seen
helped
matters.
buying
limited after
and the
correction
offersand
goodshort
entrycovering which it’s better to avoid midcaps.“
Entities
bid up the shares of the companies
significantbelosses,
markets
only
in the
has been the trend of the
day,“
saidsecond quarter of 2015-16.
opportunities
for past
investors.
to convertinvestors
black money
white, according
However,
andintoanalysts
rebounded
sharply in the
two
Sanjiv Bhasin, EVP at IIFL.
stocks have
were so
in far
themade
limelight
Though pharmaMetal
companies
up
to the Sebi
order. The
profit earned
remained
skeptical
andtotal
expect
trading sessions.
“It’s for
difficult
to
Nevertheless,
now, while
the broader market for the cross currency
followingheadwinds
overnight through
gains in strong
copper
by thegains
entities
involved
pegged take
at Rs.
trading
to be
limitedis ahead
a callwill
on be
whether
gainsamong
Traders
continue
remain
under these
pressure,
the stocks
that to
pricesgrowth
in international
US growth, revenue
would be muchmarkets.
higher
of468.99
the crucial
US Federal
Reserve
are
sustainable.
markets
over with
relentless selling
crore. The
ban comes
into force
with
could Technically,
see more heat
would worried
be companies
if Europe also contributed
well.
Hindalco, Vedanta,
and Tata Steel
meeting
on effect.
September
17, where were in higher
oversoldexposure
territorytoand
a from
foreign
institutional investors
immediate
The barred
Europe.
HCL Tech
generates
were up between 5% and 8% on
the US central bank may decide to relief rallyabout
was on
the
cards,
“said
(FIIs).
Foreigners
have India
sold stocks
VIX jumps most in 7 weeks Country’s
a third of its revenues from the European
Wednesday.
raise interest rates for the first time KunjBansal,
ED & CIO at Centrum worth `452 crore on benchmark
Wednesdaygauge of option costs jumped the most
Source: Business Standard region and looking at the uncertainties in Europe
seven
weeks as stocks
declined
amid concern
in nearly a decade, and in the face
Wednesday
-they
had in
sold
shares
as well as the currency headwinds,
the stock
could
Source:
The Economic
Times
June30,Wealth
2015 Management.
Greece
will
leave
the
euro
region.
Demand2015
for
of relentless foreign institutional
worth
`
22,
400
crore
in
August
10
September,
under
pressure,
say analysts.
Sentimentremain
in Asia
improved
after
protection
investor selling.
and September (so far).
However,against swings in Infosys surged to a
Japan’s Nikkei
vaulted
7.7% (excluding
on
Crompton
Greaves
the consumer
domestic
institutionaltwo-month
investorshigh. The India VIX Index rallied 9.8 per
The BSE Sensex surged 401 points, Wednesday,
its
biggest
daily
cent toworth
17.30 at the close in Mumbai Monday, the
business) has significant exposure
to Belgiumbuyers
(DIIs) remained
and other parts of Europe. After the acquisition steepest gain since May 12. The CNX Nifty index
of the Belgium-based Pauwels Trafo/Pauwels fell 0.8 percent to 8,318.40, its biggest drop in two
Group in May 2005, the company had acquired weeks. BLOOMBERG
GANZ (Hungary), Microsol (Ireland), ZIV (Spain)
and Sonomatra (France). These acquisitions had
Source: Business Standard
pushed the company into the league of the top
June 30, 2015
electrical companies in the world. However,
significant exposure to Europe has brought
address. Plus, technology in the
sector has not evolved significantly.
Today’s borrowers are dominantly
online and this means lenders can
target them online and use new
technology and data to underwrite
loans better and faster,” said
Gautam Mago, managing director,
Sequoia Capital
Sebi
moveS
againSt money
laundering in
liSted SmeS
T
imPaCt oF greeCe debt CriSiS
U
Short Sellers Hit Hard as Sensex Gains 401 Points
A
Category I Merchant Bankers
www.pantomathgroup.com
Angel Funding Network
www.smeipo.net
Debt Syndication
www.pantomathangels.com
M&A
Corporate Advisory
www.dobusinnessindia.com
June 29th 12,
- July
4th, 2015
September 7 - September
2015
Charioteer
Fund FadesimPaCt
Away Just
Years
After
Rollout
oFTwo
greeCe
debt
CriSiS
Sebi
moveS
Ambiguous guidelines, wary investors
make it difficult
for social
alternative
funds
here
Motherson
suMi, Bharat
Forge,
havells,
Coxto
& raise
Kingsmoney
and hCl
againSt money
laundering in
liSted SmeS
C
up Besides
to 6% “Banks, HNIs are
harioteer Social Alternative rules on investments in social funds teCh
(SVFs) Fall
in India.
Fund, one of India’s earliest projects. After the `promotion of Charioteer, there are four Sebi not really your
pressure
on thecaptive
company’sinvestors,
stock price.
Greek
listed alternative investment social business’ JJVALJAUHARI
clause of the The
old mounting
registered
SVFs crisis
in the AIF
space and
uncertainty
brings,
have
turned
funds has been given a quiet burial Companies Act and
wasthe
amended,
it itall
of them
could
meet a similar fate. “said VinitRai, MD
Havells is another stock to watch, according to
just two years after rollout due to is not clear if CSR
thefunds
Street
cautious
pooled
in and led to markets’
of Aavishkaar, which
analysts
lookingmanages
primarily at translation
impact of
While
SIDBI
and
IFMR
have
managed
ambiguous guidelines and wary from different
companies
into social
social
fall. Although
markets
recovered a significant part
to raise small sums currency
of money
due
to
its
Sylvania
operations.
The
impact
investors,
with
both
banks
and
high
projects
were
legal
and
compliant
infrastructure
assets
he Securities and Exchange Board of of the losses as the day ended, companies with
from institutional investors,
Incubi however,
on earnings,
mightcrore.
not be meaningful
net worth
individuals,
raising
doubts
with
the
new
Companies
Act.
worth
`
1,500
India (Sebi) has moved against four visible exposure to Europe saw their share prices
dueVentures
to lower profit contribution in the overseas
over the future of social impact Another section, which mandates Connect Fund of Incubi
fall sharply.
companies
listed
on
a
special
platform
is
far
from
collecting
even
half of Vishal Mehta, MD of
investing in the country.
that CSR funds be only given to thirdbusiness, say analysts.
its initial corpus.Sankhya Partners, Lok Capital agreed.
created for fund-raising by small and medium
party trusts
with
a
three-year
track
Some of these stocks were already
under pressure
Managers
of Charioteer
a newly-formed
fund, may
hit too,
“Foreign
investors,
Cox also
& Kings,
was under
the spotlight as a
record, went
enterprises
(SMEs). surrendered
Sebi’s investigations
lastagainst
week, Charioteer.
when the possiblethe
exitfund-raising
of Greece road
was soon, sources though more open to SVFs, like
its alternative investment fund (AIF)
significant
part
of
the
Ebitda
(earnings before
have revealed
discussed.
license
last weekcertain
after entities
it failed manipulated
to “The newbeing
Companies’
ActThey
did lost
notbetween
said. one and six per interest, tax, depreciation
to invest in small
ticket
sizes. They
and
amortisation)
it
the the
share
pricecorpus.
of these companies
cent CSR
(a few
ended
flat)into
of their value on Monday.
raise
targeted
reallytosupport
funds
to flow
are also very conscious about the
the of
UKtheir
travelinvestments,
and education
“There’s
limited generates
domesticis from
impact
funds.
Unfortunately,
our
impact
“he
launder money. The regulator has barred a
The fund, launched in 2013 with fund was structured
participation
in our SVFs,
“said
business.
The stock
“The extent
to whichCSR
the markets
can correct
to manage
said. that had been trending down
of 239
persons
including the
antotal
initial
outlay
of `/ entities,
250 crore,
MD of
Incube
forVentures,
more than a month fell 11.6 per cent intrabe gauged
looking atMani
the Iyer,
multiple
risks
funds fromcannot
firms, “said
Vijayan.
interest
for debt
four companies,
from
accessing
the market. that are involved,” says Mayuresh
managed.
60 crore
worth
of soft
addingJoshi
that atmore
in Institutional
day flows
but closed
5.6 per cent lower
at Rs.236.20
on
Angelmoney
toThegetfourjust
commitments
new Companies Act, according from overseas investors. “Domestic participation in SVFs has found more
companies
are Eco from
FriendlyThe
Food
Broking, who believes the flight towards the dollar Monday.
takers
than
equity
participation.
investors.
hard
to get
to several impact fund managers, banks also do not participate in SVFs
Processing“We
Parktried
Limited,
Esteem
Bio Organic
and precious
tillhave
the clarity
The `100-crore IFMR Fimpact
this up and running, but we could is also unclear
about metals
wheremight
the beasthere
they’ll
to provision
for their
Among
auto ancillary
companies
exposure
Investment
Fund is have
a success
story
Food
Processing
Limited,
HPC
Biosciences
on
the
Greece
matter
comes
through,
keeping
not, “said Krishnamurthy Vijayan, funds could be used. As per the investments in these funds.
HNIs
to Europe
like Motherson
Sumi
and Bharat
Forge.
in
this
regard.
“Insurance
companies
equity
Limited,MD
and
Channel Nine
founder
of Charioteer
I4L. Entertainment
`catchment
area’markets
clause, volatile.
CSR funds are not attracted because
SVFs
are
been our
biggest
participants,
Companies like have
Motherson
Sumi
and Bharat
Forge
couldinbe only used in places where perceived to deliver muted returns. along with a few HNIs, “said Kshama
Limited. The first three are involved
are
the
ones
that
can
see
risks
increase
with
the
Shah,
managing
director
at
Kotak
Mutual
The root cause of Charioteer’s companiesNilesh
have business interests.
“SVFs promise 12¬15% returns on Fernandes, MD & CEO of IFMR
agricultural
businesses,
the fourth is Fund,
demise
happens
to bewhile
unclear
European
deepening, says Joshi. Bharat
says certain stocks in IT,
pharma andThis,
autoin the
investments.
currentcrisisCapital.
a production and distribution company for Vijayan
said having
peoplesignificant
have scenario,
Forge derives
ancillaries
exposure to
Europe
could
be better
than about 25 per cent of its revenues
not
understood
certainly not muted returns in
serials, films and events. The companies clearly
from
Europe.
will underperform.
Since Greece
issue is well
actively-managed
sectoral
PE exports
funds. to“It’s
concept
of time,
social
the case of debt investments in SVFs.
were listed on the BSE between January thisknown
for some
it is unlikely to cause as
Ourand
funds
are players
structured
deliver
responsibility with profit “The tax structure is a Besides,
bit unclear
pharma
tech
thatto export
much correction
the 2008
Global
Crisis,
saidthe minimum. 1 100-300 bps over benchmark. Debt
and March 2013. “I am of the considered objective.
“For as in
them,
in SVF.
That
apart,
to Europe are likely to feel the pressure. This
Shah. From
view,is our
or equity, the success of an SVF
view that the schemes, plan, device and investment
and India’s
social point
work ofcrore
a bit markets
too much ticket
sizeDr
of Reddy’s
includes
and Aurobindo — the latter
would
witness
a
little
lower
volatility
than
peers“said
as Amit Bhatia, depends on the risk appetite and
` for even HNIs,
artifice employed in this case, apart from are separate ideals. “
had acquired investment
Actavis to consolidate
horizon of European
investors,
we are least impacted from the
unfolding
events
in Council.
CEO
of Impact
Investors
being a possible case of money-laundering Impact
“Fernandes added.
business.
Investments:
No
Greece and EU, he added.
or tax evasion, which could be seen by Takers
Even established SVFs have found it
Besides,and
Jubilant Life Source:
Science’sThe
licensed
chemical
Economic
Times
hard to at
raise
funds. Aavishkaar
the concerned law enforcement agencies Anil Sarin, executive vice-president
Edelweiss
The case of Charioteer Lok Capital
business,
Dr
Reddy’s and Lupin’s9German
business
September,
2015
have
taken
4-5
years
to
Global Asset
a similar view.
separately, is prima facie also a fraud in underscores
theManagement,
bleak future echoes
can see some pressure, says Surjit Pal at Prabhudas
create
a meaningful
corpus.
He
says
the
impact
on
Indian
equities
market
will
the securities market,” said the Sebi order. of few social venture capital
Lilladher, who believes that the impact will be seen
Entities bid up the shares of the companies be limited and the correction offers good entry only in the second quarter of 2015-16.
to convert black money into white, according opportunities for investors.
to the Sebi order. The total profit earned Nevertheless, for now, while the broader market Though pharma companies have so far made up
ndian stocks tumbled to a compared with the average daily the selloff with the sectoral
Foreign headwinds
institutionalthrough
selling showed
for theindex
cross currency
strong
by
the entities
is pegged turnover
at Rs. of
will
be under
the
`22,861
in thepressure,
last thirtyamong
falling
2%.stocks that US growth, revenue
15-month
low oninvolved
Monday tracking
no signs
abating
withhigher
these
growthofwould
be much
468.99
crore. Theon
banWall
comesStreet,
into force
withThecould
the weakness
days.
Sensex,
fallen
investors dumping
shares
worth
seewhich
morehas
heat
would be companies with if Europe also contributed
well.
Strategists say investors may need
fromexposure
August to
1 when
asimmediate
worries effect.
about The
thebarred
possibility almost 11%
`827 crore on Monday. Since August,
higher
Europe. HCL Tech generates
to brace of heightened
volatility
India VIX jumps
mostinvestors
in 7 weeks
Country’s
of tighter monetary policy in the China firstabout
devalued
its of
currency
is
foreign
have sold
to the
a third
its revenues
from of
thethe
European
ahead
US Federalbenchmark
Reserve ongauge of option costs jumped the most
US extended flightSource:
from emerging
just
177
points
away
from
the
levels
tune.
21,000
crore.
“The
Indian
in
Europe
Business Standard region and looking at the uncertainties
September 16-17.
in
seven
weeks
as
stocks
declined
amid
concern
May 26,
2014,
the
day
the
Modi
markets. Continued weakness June30,
in of2015
market
is
falling
due
to
global
factors
as well as the currency headwinds, the stock could
Greece will
region.
Demand
for
tookunder
over. On
Monday,
Chinese markets, which opened on government
and the
not euro
because
of any
domestic
“There could be a significant
rise leave
remain
pressure,
say analysts.
swings
Infosys surged senior
to a
Monday after a long weekend, also the index fell over 308.09 points, in volatility around theprotection
issues,
“saidinDhirajSachdev,
Fed meetagainst
Greaves
(excluding
theSeptember.
consumerAdditionally,
contributed to the weakness driving or 1.22%,Crompton
to 24,893.81,
the lowest
vice
HSBCrallied
Global
two-month
Thepresident,
India VIX Index
9.8Asset
per
time in
thehigh.
the benchmark Sensex below since June
2014. The
Nifty exposure
“ThingsMonday,
will improve
cent
to 17.30
the close in Mumbai
the
business)
has NSE
significant
to Belgium
added volatility
factor has
been
the atManagement.
at 7,558.8,
down After
25,000 for the first time since June closed the
once May
FIIs stop
correlating
India
with
gain since
12. The
CNX Nifty
index
andday
other
parts of Europe.
acquisition
eventsthe
in China
and thus steepest
the declines
96.25 points,
of the 30Pauwels
2014.
other emerging
markets.
“ two
fellbeen
0.8 percent
to 8,318.40,
its biggest
drop in
that we
anticipated have
far the
of or
the1.26%.Out
Belgium-based
Trafo/Pauwels
Sensex stocks,
26in ended
lowerthe
on company
weeks.
BLOOMBERG
greater,had
“said
Vive R Mira,
strategist
Group
May
2005,
acquired
Brokers said the decline on Monday
Source: The Economic Times
Monday. GANZ (Hungary), Microsol (Ireland),
Asian equities
at SocieteGenerale.
ZIV (Spain)
was amid lower trading volumes,
8 September, 2015
“However, I would say that we are
and 170
Sonomatra
stocks (France).
including These acquisitions had
showing retail investor participation On the BSE,
Source: Business Standard
probably
not
too
far
away
from
the
the
companyState
into the league of the top
has shrunk after the recent sell off. ICICI Bank,pushed
Hindalco
Industries,
June 30, 2015
bottom
the market, if we have
electrical
in the
world.of However,
Powercompanies
Grid, and IDFC
Total turnover in the cash segment Bank of India,
not reached the bottom already.
significant
exposure
to Europe has brought
of both exchanges was. 14,360 crore hit 52-week
lows. Banking
stocks led
T
U
Sensex Sinks to 15-Mth Low on Global Woes
I
Category I Merchant Bankers
www.pantomathgroup.com
Angel Funding Network
www.smeipo.net
Debt Syndication
www.pantomathangels.com
M&A
Corporate Advisory
www.dobusinnessindia.com
June 29th 12,
- July
4th, 2015
September 7 - September
2015
PROFITABILITY
MIGHT
METAL
SECTOR CORPORATE
imPaCt oF greeCe
debt CriSiS
Sebi
moveS
FALLsuMi,
IN COMING
DECADES:
MCKINSEY
Motherson
Bharat Forge,
havells, Cox &
Kings and hCl
TO
TAKEmoney
TIME TO
againSt
he past three decades
wereFall up to 6%
teCh
a period of unprecedented
RECOVER
JJVALJAUHARI
mounting
Greek crisis pressure on the company’s stock price.
prosperityThe
for global
corporations.
laundering in
liSted SmeS
T
U
30% of BSE 500 Cos Now Trading at
40% Discount to Their 52-Week Highs
and
the uncertainty
brings, have
turned
Corporate
earnings it before
interest
the
cautiousbetween
and led1980
to markets’
and Street
taxes trebled
and
fall. Although
markets
a significant
id and small-cap stocks have fallen more
2013. But
this recovered
era may well
be over.part
he sharply
Securities
andbluechips
ExchangeinBoard
of ofsell
the Anewreportfrom
losses as the day ended,
companies with
than
the recent
MckinseyGlobal
Europe
saw their
sharethe
prices
India
moved has
against
off.(Sebi)
While has
the Sensex
fallenfour
about visible
17% exposure
Institute, to
titled
Playing
to win:
companies
listed
a special
platform
from its
yearly high
ononMarch
4, 2015
about fall
30%sharply.
new global competition for corporate
of the stocks
in the BSE
500 and
index
are currently
projects
that
over the
coming
created
for fund-raising
by small
medium
Some ofprofits,
these stocks
were
already
under
pressure
trading
40%
below
their
52-week
high
levels. Some
decade,
profitability
couldwas
enterprises (SMEs). Sebi’s investigations
last week,
whencorporate
the possible
exit of Greece
have lost
nearlycertain
their entire
valuation
in the lastbeing
few discussed.
fall from They
10 per
of global
in per
have
revealed
entities
manipulated
lostcent
between
one GDP
and six
months.
A
majority
of
these
stocks
belong
to
metal
2013
to
7.9
per
cent
by
2025.
This
fall
in
the share price of these companies to cent (a few ended flat) of their value on Monday.
and banking
sectors,
while some
from
launder
money.
The regulator
has are
barred
a capital profitability is a consequence of several
“The extent
to forces.
which First,
the markets
can correct
goods, realty and power. Large-cap stocks Jindal
disparate
emerging-market
total of 239 persons / entities, including the
cannot companies
be gauged will
looking
at the
Steel, Vedanta, Hindalco, Bank of India, Tata Steel
account
for multiple
a greaterrisks
four companies, from accessing the market. that are involved,” says Mayuresh Joshi at Angel
and Cairn, among others, are currently trading over proportion of the corporate universe
The
companies
are Ecohighs.
Friendly
Food expect
Broking,inwho
believes the flight
towards
the as
dollar
60% four
below
their 52-week
Analysts
infrastructure
industries
such
Processing
Limited,
Esteem
Organic
and
metals
mighttransportation
be there till theand
clarity
sectors likePark
metal
to take
a fewBio
more
quarters
toprecious
utilities,
telecom,
Food
Processing
Limited,
HPC major
Biosciences
ontotheconstruction.
Greece matter
keeping
recover.
“We continue
to expect
steel firms
Thiscomes
rise inthrough,
competition
Limited,
and Channel
Nine
Entertainment
report operational
losses
during
Q2FY16, givenequity
the markets
will lead volatile.
to a fierce battle among existing
decline inThe
global
prices,
“said
AshishKejriwal,
Limited.
first
three
are
involved in analyst companies to retain their slice of the
Nilesh Shah, managing director at Kotak Mutual
at
Elara
Capital.
“Even
if
the
safeguard
duty
20% pie, thereby lowering profit margins.
agricultural businesses, while the fourth
is of Fund,
says certain stocks in IT, pharma and auto
(probable)
gets
implemented,
the
effect
of
it
will
be McKinsey expects their increased
a production and distribution company for ancillaries
having significant exposure to Europe
reflectedfilms
in Q3FY16.“
presence to shrink future corporate
serials,
and events. The companies will underperform.
Since Greece issue is well
by about $800 billion to $900
were listed on the BSE between January known profits
for some time, it is unlikely to cause as
billion. Secondly, technology disruption,
and March 2013. “I am of the considered much correction as in the 2008 Global Crisis, said
the rise of low costs solutions, could
view that the schemes, plan, device and Shah. From India’s point of view, our markets
reduce corporate profits by$600-700
a little lower volatility than peers as
artifice employed in this case, apart from would witness
billion in sectors such as retail, health
we
are
least
impacted
from the unfolding events in
being a possible case of money-laundering
care, and utilities. Third, the fall in
Greece
and
EU,
he
added.
or tax evasion, which could be seen by
labour costs observed over the past few
the concerned law enforcement agencies Anil Sarin,
decades
is unlikely
to continue
the
executive
vice-president
at in
Edelweiss
decade. McKinsey
Asset Management,
echoesexpects
a similarthe
view.
separately, is prima facie also a fraud in Global coming
declining
labor equities
costs to market
reduce will
the of
impact
on Indian
the securities market,” said the Sebi order. He saysend
corporate
profitability
billion.
and the
correctionby$800
offers good
entry
Entities bid up the shares of the companies be limited
Lastly,
higher
interstates
and
taxes
could
opportunities
for
investors.
to convert black money into white, according
further erode corporate profitability.
to the Sebi order. The total profit earned Nevertheless,
for says
now,that
while
the broader
market
The report
in today’s
corporate
by the entities involved is pegged at Rs. will be under pressure, among the stocks that
world, “value is increasingly created
468.99 crore. The ban comes into force with could see more heat would be companies with
from patents, brands, trademarks,
immediate effect. The barred
higher and
exposure
to Europe.
generates
copyrights
ratherHCL
thanTech
industrial
about amachinery
third of its
the which
European
orrevenues
factories”.from
Sectors
and looking
at the uncertainties
in Europe
considered
as idea-intensive
Source: Business Standard region are
as the currency
could
for 17headwinds,
per cent tothe
thestock
profits
June30, 2015 as well accounted
by Western
companies in
remaingenerated
under pressure,
say analysts.
1999. Today their share is 31 per cent.
Crompton Greaves (excluding the consumer
business) has significant
to Belgium
Source: exposure
Business Standard
Source: The Economic Times
and other parts of Europe.
the acquisition
10After
September,
2015
8 September, 2015
of the Belgium-based Pauwels Trafo/Pauwels
Group in May 2005, the company had acquired
GANZ (Hungary), Microsol (Ireland), ZIV (Spain)
and Sonomatra (France). These acquisitions had
pushed the company into the league of the top
electrical companies in the world. However,
significant exposure to Europe has brought
M
T
Category I Merchant Bankers
www.pantomathgroup.com
Angel Funding Network
www.smeipo.net
Havells is another stock to watch, according to
analysts looking primarily at translation impact of
currency due to its Sylvania operations. The impact
on earnings, however, might not be meaningful
due to lower profit contribution in the overseas
business, say analysts.
Cox & Kings, too, was under the spotlight as a
significant part of the Ebitda (earnings before
interest, tax, depreciation and amortisation) it
generates is from the UK travel and education
business. The stock that had been trending down
for more than a month fell 11.6 per cent intraday but closed 5.6 per cent lower at Rs.236.20 on
Monday.
Among auto ancillary companies have exposure
to Europe like Motherson Sumi and Bharat Forge.
Companies like Motherson Sumi and Bharat Forge
are the ones that can see risks increase with the
European crisis deepening, says Joshi. Bharat
Forge derives about 25 per cent of its revenues
from exports to Europe.
Besides, pharma and tech players that export
to Europe are likely to feel the pressure. This
includes Dr Reddy’s and Aurobindo — the latter
had acquired Actavis to consolidate European
business.
Besides, Jubilant Life Science’s licensed chemical
business, Dr Reddy’s and Lupin’s German business
can see some pressure, says Surjit Pal at Prabhudas
Lilladher, who believes that the impact will be seen
only in the second quarter of 2015-16.
Though pharma companies have so far made up
for the cross currency headwinds through strong
US growth, revenue growth would be much higher
if Europe also contributed well.
India VIX jumps most in 7 weeks Country’s
benchmark gauge of option costs jumped the most
in seven weeks as stocks declined amid concern
Greece will leave the euro region. Demand for
protection against swings in Infosys surged to a
two-month high. The India VIX Index rallied 9.8 per
cent to 17.30 at the close in Mumbai Monday, the
steepest gain since May 12. The CNX Nifty index
fell 0.8 percent to 8,318.40, its biggest drop in two
weeks. BLOOMBERG
Debt Syndication
www.pantomathangels.com
Source: Business Standard
June 30, 2015
M&A
Corporate Advisory
www.dobusinnessindia.com
June 29th 12,
- July
4th, 2015
September 7 - September
2015
Textile industry wants quick govt help
imPaCt oF greeCe debt CriSiS
Sebi
moveS
Says dumping,
lack of FTAs, export incentives hurting deeply, with competitors
Motherson
suMi,policy
Bharat
Forge, havells,
getting
ahead; wants
& financial
help Cox & Kings and hCl
againSt money
teCh Fall up to 6%
laundering in
liSted SmeS
A
U
“The situation has aggravated in the
the
recent
rupee Bangladesh, whether the fabric is
fter
Tuesday’s
meeting “While
pressure
on thepast
company’s
stock
price.with imports
JJVALJAUHARI
The mounting
crisis
couple of
months,
helped textile
from thatGreek
country,
India or
any other
between the Prime Minister depreciation has
thethe
uncertainty
brings, have
turnedto arrive duty- growing, especially from China. In
like China,
ways,
industry itcountry
and top business heads, the exporters in someand
Havells is another stock to watch, according to
to markets’
hurt Street
in manycautious
other and
free led
in India.
Such agreements are such a scenario, the Centre needs
textile industry is expecting the continues to get the
analysts looking primarily at translation impact of
fall.instance,
Although markets
recovered
a significant
part even Chinese to provide a level playing field.
as against
hurting
India, where
central government to take quick ways. For
currency due to its Sylvania operations. The impact
heitsSecurities
of the
losses
as thetarget
day ended,
companies
withcome duty-free. Unlike our competing nations like
products
can now
the of
rupee,
India’s
export
action on
problems.and Exchange Board
on earnings, however, might not be meaningful
visiblealso
exposure
Europe saw
theirwas
share
prices
seen to
currency
India
competent
enough in Vietnam, Bangladesh and Cambodia
India (Sebi) has moved againstnations
four have
due to lower profit contribution in the overseas
The measures hoped for include
depreciation,
which has almost yarn exports. However, China has which have duty-free access, all
fall sharply.
companies listed on a special platform
action on free trade agreements
business, say analysts.
nullified any benefit. Also, not only stopped buying yarn from India textile products from India attract
created for
small and medium
(FTAs),
onfund-raising
export by
incentives
Some
of
these
stocks
were
already
under
pressure
four was
to 15under
per cent
Weas
have
is the excise duty on synthetic textile and instead begun producing,”
said too,
Cox & Kings,
the duties.
spotlight
a
enterprises
(SMEs).
and
release of
funds Sebi’s
under investigations
the
week,
possibleSanjay
exit ofLalbhai,
Greecemanaging
was
an export
incentive
of
director ofpartdemanded
products last
of 12.5
perwhen
centthe
hurting
significant
of
the
Ebitda
(earnings
before
Technology
Upgradation
Fund
have revealed certain entities manipulated being discussed. They lost between one and six per
textile
conglomerate
Arvind
Ltd.
three
per
cent
for
yarn,
five
per
cent
the
industry,
the
reduction
in
dutyinterest, tax, depreciation and amortisation) it
scheme
(Tufs),
among
others.companies
The
the share
price
of these
to
fewtoended
flat)cent
of their value on Monday.
for fabric and seven per cent for
free scripscent
from(atwo
four per
generates
textile
and
clothing
industry’s
yearly
Lalbhai
says
while
competingis from the UK travel and education
launder money. The regulator has barred a
garments,”
Selvaraju
said. down
two per
cent to
haswhich
reduced
turnover is pegged at $105 billion, of to zero to “The
business.
The
stock
that had
been trending
extent
the markets
can
correct
total exports
of 239 persons
/ entities,
including
the competitiveness,” said O nations Sri Lanka, Pakistan and
export
which
form 35-40
per cent.
more
than a month fell 11.6 per cent intracannot be gauged looking atBangladesh
the multiple
haverisks
signedfor
FTAs,
such
Source:
Business
Standard
four companies,
fromespecially
accessing the
P Lohia, that
chairman
of Indo says
RamaMayuresh Joshi at Angel day but closed 5.6 per cent
Capacity
utilisation,
in market.
lower
at Rs.236.20
on
are involved,”
as
with
Europe,
we
have
got
left
10
September,
2015
yarn,
has
declined
by
15-20
per
cent
The four companies are Eco FriendlySynthetics.
Food Broking, who believes the flight towards the dollar Monday.
out.
“India
has
to
become
part
of
inProcessing
the past couple
of months
due to
Park Limited,
Esteem
Bio Organic and precious metals might be there till the clarity
any major
decline
in
export
competitiveness.
K Another charge is that China has a FTAs. India is not part ofAmong
auto ancillary companies have exposure
Food Processing Limited, HPC Biosciences
on the Greece matter comes through, keeping
nations.
Selvaraju, secretary general of the lot of surplus capacity, used to dump FTA, unlike its competing
to Europe
like Motherson Sumi and Bharat Forge.
equity like
markets
Limited, and
Nine Entertainment
into countries
Indiavolatile.
through If agreements like the Trans-Pacific
Southern
IndiaChannel
Mills Association,
Companies like Motherson Sumi and Bharat Forge
Limited. The
first `1
three
involved
Partnership
agreement
otherin routes.
has signed
investments
worth
lakhare
crore
are thecome
ones that can see risks increase with the
Nilesh “India
Shah, managing
director
at Kotak Mutual
have
not received
anywhile
subsidy
through,
India
could
get
completelycrisis deepening, says Joshi. Bharat
an FTA
Bangladesh,
which
agricultural
businesses,
the fourth
is with
Fund, says certain stocks in IT, pharma and auto European
benefits
under Tufs.
he said. Forge derives about 25 per cent of its revenues
allows
garmenthaving
converted
in marginalised,”
a production
and distribution company
for any
ancillaries
significant
exposure to Europe
serials, films and events. The companies will underperform. Since Greece issue is well from exports to Europe.
were listed on the BSE between January known for some time, it is unlikely to cause as
Besides, pharma and tech players that export
and March 2013. “I am of the considered much correction as in the 2008 Global Crisis, said
to Europe are likely to feel the pressure. This
view that the schemes, plan, device and Shah. From India’s point of view, our markets
includes Dr Reddy’s and Aurobindo — the latter
artifice employed in this case, apart from would witness a little lower volatility than peers as had acquired Actavis to consolidate European
Draft
likely to
be
ready
weeks;
rules
we are
least
impacted in
from3the
unfolding events
in being readied to
being a possible
case of laws
money-laundering
business.
Greece
and
EU,
he
added.
avoid
scrutiny
overlap
by
Centre,
states
or tax evasion, which could be seen by
Besides, Jubilant Life Science’s licensed chemical
the concerned
compensated
by the Centre,” behalf,” said an official. However,
GST and Anil
Integrated
GST — would
ompanies law
withenforcement
an annual agencies
Sarin, executive
vice-president
at Edelweiss
business,EY.Dr Reddy’s
Lupin’s German
in caseand
of companies
with business
annual
said
Bipin
Sapra,
tax
partner,
come
up
after
the
Constitutional
turnover
up
to
`25
lakh
separately, is prima facie also a fraud in Global Asset Management, echoes a similar view.
canpoint
see some
pressure,
says
Surjit
Pal
at`1.5
Prabhudas
From
the
manufacturing
of
Work
on
the
drafts
might be exempted from Bill is cleared.
turnover
of
more
than
crore,
He
says
the
impact
on
Indian
equities
market
will
the
theand
Sebi order.
view, it was important to
keep the
is on.
the securities
proposed market,”
national said
goods
Lilladher,
who there
believes
impact will
be seen
willthat
be the
concurrent
audits
by
be
limited
and
the
correction
offers
good
entry
Entities
the shares
of theand
companies
added.
servicesbid
taxup
(GST).
The Centre
bothquarter
the state
only
in the second
ofgovernment
2015-16. and the
States wanted a threshold of `10 exemption limit higher, he
opportunities for investors.
states
areblack
likelymoney
to settle
thisaccording
to
convert
into for
white,
lakh to protect their revenue, While these are likely to be part Centre.
threshold
as
they
finalise
the
GST
Though
pharma
companies
haveisso
made up
GST laws,
a final
decision
while theNevertheless,
Centre has assured
them
to the Sebi order. The total profit earned
“The
government
stillfardiscussing
for now,
while of
thethe
broader
market
laws.
for
the
cross
currency
headwinds
through
strong
on
this
is
to
be
taken
by
the
yetfull
compensation
for
five
years.
a
mechanism
of
a
risk-based
by the entities involved is pegged at Rs. will be under pressure, among the stocks that
This
is to revenue
According to finance ministry Besides, firms with an annual unformed GST Council.US
growth,
growth
would
be much
higher
selection
so
that
the
checks
by
468.99
The ban
comeslaws
into is
forceturnover
with could
see more
heat and
would be
beconstituted
companies within
with two
months
between
`25 lakh
officials,crore.
the draft
of these
Centre and states
if Europe
also contributed
well. do not overlap,”
immediate
The by
barred
the Constitution said the official.
will have
an option
to of
expected toeffect.
be ready
the end of `75 lakhhigher
exposure
to Europe.
HCL enacting
Tech generates
It would comprise
the jumps most in 7 weeks Country’s
rate aofthird
one per
or amendment.
this month. The Centre and states pay a flatabout
India VIX
of itscent
revenues
from the European
The government on Sunday
ministers gauge
are working on a mechanism to GST rate. If they decide to opt for Union and state financebenchmark
of option costs jumped the most
region
and
looking
at
the
uncertainties
in
Europe
Source:
Business
Standard
avoid dual scrutiny of companies one per cent rate, firms will not and will be empowered to take key made a renewed appeal to
in
seven
weeks
as
stocksparties
declined
amidpass
concern
Opposition
to help
the
well asbecause
the currency
headwinds,
the stock
could
decisions
on GST.
inputascredits
of which
by them.
June30,get
2015
Constitutional
amendment
through
Greece
will
leave
the
euro
region.
Demand
for
many,
particularly
dealers,
may
remain under pressure, say analysts.
The idea is that entities
with a against
“The thinking now is that all legal
an extended
session.toIta
protection
swings inmonsoon
Infosys surged
choose
the
GST
rate.
turnover
of
up
to
`75
lakh
will
not
entities with an annual turnover of
is vital that this be cleared at the
Crompton
(excluding
theanyconsumer
two-month
The India
rallied 9.8 per
attract
checks or audits
from high.
limitGreaves
from value
up to ` 25 lakh will be completely The exemption
earliest
for VIX
theIndex
government
to
cent to The
17.30 at
the to
close
Mumbai
Monday, the
business)
has tax
significant
Belgium
either thetostate
or the Centre.
and service
across exposure
exempt. This will be applicable to added tax
stick
thein GST
implementation
Centrethe
willacquisition
give states a free
run on
the Northeast
— is After
one TIN (Taxpayer Identification states —except
steepest
gain timeline
since May
CNX Nifty
index
and other
parts of Europe.
of 12.
AprilThe
1, 2016.
The three
compliance
checks
for
companies
close to `10
lakh
turnover.
“There
Number),” said a ministry official.
legislations
will laydrop
downin the
fell
0.8
percentdraft
to 8,318.40,
its biggest
two
of the Belgium-based Pauwels Trafo/Pauwels
impact on revenue but with annual turnover above
fine print of the uniform indirect
The government is looking to will be an
weeks. `75
BLOOMBERG
Group
in
May
2005,
the
company
had
acquired
on how many under lakh and up to `1.5 crore. “Here, tax regime.
reconvene Parliament’s monsoon it will depend
GANZ
ZIV will
(Spain)
the Centre
only do online
the
`25
lakh
to(Hungary),
`75 lakh Microsol
annual (Ireland),
session to get the Constitutional
scrutiny.
And,
if states
turnover
bracket
opt
for
the
one
and
Sonomatra
(France).
These
acquisitions
had detect nonSource:
Source:Business
BusinessStandard
Standard
amendment Bill on GST passed in
compliance
respect to CGST,
rate. If 60-70
per cent into
opt the
the company
league of with
the top
8 September,
the Rajya Sabha. Three Bills — on per cent pushed
June
30,2015
2015
only
the
Centre
will
issue
a
notice.
will be loss of revenue
the Centre’s GST (CGST), states’ for it, there
electrical
companies
in
the
world.
However,
for states but they will also get States cannot issue a notice on our
significant exposure to Europe has brought
T
Firms with annual turnover of ` 25 lakh
might not attract GST
C
Category I Merchant Bankers
www.pantomathgroup.com
Angel Funding Network
www.smeipo.net
Debt Syndication
www.pantomathangels.com
M&A
Corporate Advisory
www.dobusinnessindia.com
June 29th 12,
- July
4th, 2015
September 7 - September
2015
India next global hub
for commercial
arbitration?
imPaCt
oF greeCe debt
CriSiS
Sebi
moveS
againSt money
laundering in
liSted SmeS
T
“It is not merely a change in law that
he Cabinet has cleared A new sub-section in Section 11 panel is full of retired judges of
will
be &
enough.
Theand
conduct
and
the amendments to the would beMotherson
added to ensure
an
high
courts
and
the
Supreme
Court.
suMi, Bharat Forge, havells, Cox
Kings
hCl
Arbitration and Conciliation application for appointment of an Besides, it does not have many attitude of all stakeholders, including
teCh Fall up to 6%
Act, 1996, specifying deadlines arbitrator shall be disposed of by non-legal experts. This is contrary litigants, lawyers, arbitrators and
will stock
ultimately
for awards by tribunals and the high court or
Supreme Court
to international
arbitration
centres
pressure
on thecourts
company’s
price. determine
JJVALJAUHARI
The mounting
Greek crisis
whether
the
amendments
will
incentivising expeditious disposal of expeditiously, and
the
matter
such
as
the
ones
in
Singapore,
and the uncertainty it brings, have turned
is another
stock
to is
watch,
according
to
achieve
what
intended,”
he says.
cases. However, these alone will not should be disposed
of within
60 and
London
Paris. Havells
Chandru,
the Street
cautious
led to and
markets’
analysts
looking
primarily
at translation
impact
of
Chandru
suggests
arbitration
should
make India an international hub for days. Thefall.
amendments
are
based
too,
says
increasing
the
pool
of
Although markets recovered a significant part
currency
due
to
its
Sylvania
operations.
The
impact
be
made
a
compulsory
module
commercial
arbitration.
According
on
the
Law
Commission’s
246th
arbitrators
is
an
important
step
for
he Securities and Exchange Board of of the losses as the day ended, companies with
earnings, however,
not be
meaningful
in all lawmight
colleges
as this
is likely
to experts,
should
more
official
statement
had saw
which
there
needs
to beon
nationwide
visible
exposure
to Europe
their
share
prices
IndiaIndia
(Sebi)
has have
moved
againstreport.
four An
due
tomore
lower profit
contribution
in the overseas
to
become
the
preferred
way of
capacitycompanies
such as having
regular
legal
said
these
recommendations
training
of
arbitrators
and
fall
sharply.
listed on a special platform
business,
say analysts.
resolving commercial disputes in
experts and not just retired judges in would ensure that India become people should be accredited
as fullcreated for fund-raising by small and medium
of these commercial
stocks were already
under pressure
the years to come.
the arbitral panel. The amendments, a hub of Some
International
time arbitrators.
Cox & Kings, too, was under the spotlight as a
enterprises
(SMEs).
Sebi’s
last week, when the possible exit of Greece was
approved
by the
Cabinet,
seekinvestigations
to arbitration.
significant
of the Ebitda
(earningsbybefore
is preferred
many
Naresh
Thacker,
EconomicpartArbitration
have revealed
certain
entities
manipulated being discussed. They lost between
one
and six partner,
per
provide
for arbitral
tribunal
making
interest,
tax,
depreciation
and
amortisation)
it
companies
in
a
dispute
than
normal
Ganesh
Chandru,
executive
partner
Laws
Practice,
says
a
quick
and
share
price
of theseParties
companies to cent (a few ended flat) of their value on Monday.
itsthe
award
within
12 months.
generates
is from
UK travel
and iteducation
legalthe
process
because
is more
at
Lakshmikumaran
&
Sridharan,
efficient
mechanism
of
redressal
of
launder
money.
regulator
might
extend
suchThe
periods
up tohas
six barred a
business.
The stock
that had been
trending
down
“The
which the markets
correct
expeditious,
though
a costlier
a law firm,
saysextent
more to
institutional
business can
disputes
is always
welcome
months.
only including
be
total of Thereafter,
239 personsit/ can
entities,
the
more
than affair,
a month
cent intrabe take
gauged
looking
thethe
multiple
risks for
and fell
its 11.6
awardper
is enforceable
arbitrationcannot
should
place
in atand
government
has
shown
extended
by the court.
four companies,
from accessing the market.
dayallbutareas
closed in
5.6 foreign
per cent lower
at Rs.236.20
on
jurisdictions
as well.
are involved,”
says Mayuresh
Joshi
Angelright
India, forthat
which
existing arbitral
urgency
in at
setting
The four
companies
Eco Friendly
Food Broking,
While
extending
the are
period,
the institutions
should who
be modernised.
Monday.
believes the flight
towards
the dollar
which
businesses
— both
domestic All major disputes of companies,
Processing
Park order
Limited,
Esteem of
Bio Organic and precious metals might be there till the clarity
including Vodafone, NTT DoCoMo
court
might also
reduction
as a hurdle
Right now, most of the arbitrations and international — seeAmong
auto ancillary
companies
have exposure
Food Processing
HPCfive
Biosciences
versus Tata
Teleservices,
moved to
arbitrators’
fees notLimited,
exceeding
on the Greece matter comes
through,
keeping
India.
“The
in India are ad-hoc, says Chandru, to doing business in to
Europe
like Motherson
Sumiarbitration
and Bharat centres
Forge.
international
per
cent
for
each
month
of
delay,
Limited, and Channel Nine Entertainment equity markets volatile.
move
to
amend
the
Arbitration
who is in the arbitral panel of
Companies
like
Motherson
Sumi
and
Bharat
Forgein
due to cumbersome processes
if Limited.
the courtThe
finds
proceedings
firstthethree
are involved
in
and atConciliation
Act, 1996
is ones
the that
Singapore
and Kuala
Lumpur. He
are
the
can
see
risks
increase
with
the
Nilesh
Shah,
managing
director
Kotak
Mutual
India.
have
been delayed
forwhile
reasons
agricultural
businesses,
the fourth
is arbitration
firstpharma
step inandproviding
a platformcrisis deepening, says Joshi. Bharat
advises
should in IT,
Fund, sayshearings
certain stocks
auto European
attributable
to
the
arbitral
tribunal.
a production and distribution company
the alternate
disputeForge
resolution
Recently,
former
secretary
be for
conducted
continuously
during to
derives about
25 per
centrevenue
of its revenues
ancillaries
having significant
exposure
to Europe
If the award is made within six
mechanism
toisachieve
its
trueexports
goal, toShaktikanta
serials, films and events. The companies
Das said arbitration is
the week will
daysunderperform.
and not just during
from
Europe.
Since
Greece
issue
well
months, the arbitrator might get
weekends so that there is continuity that of providing expeditious and not the best route to solve disputes
were listed
the parties
BSE between
additional
feeson
if the
agree. January known for some time, it is unlikely to cause as Besides, pharma and tech players that export
of proceedings.
effective
much correction as in the 2008
Globalsettlement
Crisis, said of commercial related to taxes. He found mutual
and March
2013.
“I am would
of thebe
considered
Besides,
a new
provision
to However,
Europe are agreement
likely to feel
the pressure.
This
procedure
and advance
disputes,”
hemarkets
points out.
Shah.
From
India’s
point
of
view,
our
view that
schemes,procedure
plan, device
and Bansal, senior partner at
inserted
for the
a fast-track
Amit
includes
Dr
Reddy’s
and
Aurobindo
—
the
latter
pricing
agreements
as
much
better
he cautions
it is as
naïve to believe
would witness
littlethese
lower volatility
than peers
artifice
employed
in this case,
apartDeloitte
from Haskins
for
conducting
arbitration.
Parties
& Sells,asays
hadbecomes
acquired ways
Actavis
to consolidate
European
to settle
tax disputes.
the
morning
after
the Bill
we
are
least
impacted
from
the
unfolding
events
in
tobeing
the adispute
might
agree
their
possible case of money-laundering
amendments are a step toward
business. be
an
Act,
India
will
suddenly
and EU, he added.
dispute
resolved
through
achieving
this objective,
but a
or tax be
evasion,
which
could the
be seen
by Greece
Source: Business Standard
as an International
Besides, Jubilant Life Science’s licensed
chemical
fast-track
procedure.
Award
in
such
strong
institutional
framework
is recognised
the concerned law enforcement agencies Anil Sarin, executive vice-president
8 September,
2015
at Edelweiss
arbitration hub.
business, Dr Reddy’s and Lupin’s German business
cases
shall
be
given
in
six
months.
also
needed.
Bansal
says
arbitral
separately, is prima facie also a fraud in Global Asset Management, echoes a similar view.
can see some pressure, says Surjit Pal at Prabhudas
He says
theprovided
impactfor
oninformational
Indian equities
market
the securities
said the
Sebi order.
Disclaimer:
All datamarket,”
and information
is compilation
of collective
news,
purposes
onlywill
and is not
intendedwho
for any
factualthat
use. the
It should
not will
be considered
Lilladher,
believes
impact
be seen
be Advisors
limited nor
andany
the
correction
offersdirectors,
good entry
asEntities
binding /bid
statutory
provisions.
Neither
Pantomath Capital
of its
group company,
or employees shall be liable for any of the data or content provided
up the
shares of
the companies
only in the second quarter of 2015-16.
fortoany
actionsblack
takenmoney
in reliance
convert
intothereon.
white, according opportunities for investors.
to the Sebi order. The total profit earned Nevertheless, for now, while the broader market Though pharma companies have so far made up
by the entities involved is pegged at Rs. will be under pressure, among the stocks that for the cross currency headwinds through strong
US growth, revenue growth would be much higher
468.99 crore. The ban comes into force with could see more heat would be companies with
if Europe also contributed well.
immediate effect. The barred
higher exposure to Europe. HCL Tech generates
about a third of its revenues from the European India VIX jumps most in 7 weeks Country’s
benchmark gauge of option costs jumped the most
Source: Business Standard region and looking at the uncertainties in Europe
in seven weeks as stocks declined amid concern
June30, 2015 as well as the currency headwinds, the stock could
Greece will leave the euro region. Demand for
remain under pressure, say analysts.
protection against swings in Infosys surged to a
Crompton Greaves (excluding the consumer two-month high. The India VIX Index rallied 9.8 per
business) has significant exposure to Belgium cent to 17.30 at the close in Mumbai Monday, the
and other parts of Europe. After the acquisition steepest gain since May 12. The CNX Nifty index
of the Belgium-based Pauwels Trafo/Pauwels fell 0.8 percent to 8,318.40, its biggest drop in two
Group in May 2005, the company had acquired weeks. BLOOMBERG
GANZ (Hungary), Microsol (Ireland), ZIV (Spain)
and Sonomatra (France). These acquisitions had
Source: Business Standard
pushed the company into the league of the top
June 30, 2015
electrical companies in the world. However,
significant exposure to Europe has brought
T
Category I Merchant Bankers
www.pantomathgroup.com
U
Angel Funding Network
www.smeipo.net
Debt Syndication
www.pantomathangels.com
M&A
Corporate Advisory
www.dobusinnessindia.com