Insider trading

Insider trading is the trading of a corporation's stock or other securities (e.g. bonds or stock options) by individuals with access to non-public information about the company. In most countries, trading by corporate insiders such as officers, key employees, directors, and large shareholders may be legal, if this trading is done in a way that does not take advantage of non-public information. However, the term is frequently used to refer to a practice in which an insider or a related party trades based on material non-public information obtained during the performance of the insider's duties at the corporation, or otherwise in breach of a fiduciary or other relationship of trust and confidence or where the non-public information was misappropriated from the company.^[1]

In the United States and several other jurisdictions, trading conducted by corporate officers, key employees, directors, or significant shareholders (in the U.S., defined as beneficial owners of ten percent or more of the firm's equity securities) must be reported to the regulator or publicly disclosed, usually within a few business days of the trade. Many investors follow the summaries of these insider trades in the hope that mimicking these trades will be profitable. While "legal" insider trading cannot be based on material non-public information, some investors believe corporate insiders nonetheless may have better insights into the health of a corporation (broadly speaking) and that their trades otherwise convey important information (e.g., about the pending retirement of an important officer selling shares, greater commitment to the corporation by officers purchasing shares, etc.)

The authors of one study claim that illegal insider trading raises the cost of capital for securities issuers, thus decreasing overall economic growth.^[2] However, economists cannot be confident of this conclusion because data on illegal insider trading is not available; the nature of the activity renders it impossible to gather data.^[3]

Insiders can easily profit using "open market repurchases." Such transactions are legal and generally encouraged by regulators through safe harbours against insider trading liability.^[4][5]

Various types of speculators

“Four kinds of speculators operate in the Indian Stock Exchange. They are known as bull, bear, stag and lame duck. A Bull also called as Tejiwala is an operator who is hopeful of price rise in the near future.”

Four kinds of speculators operate in the Indian Stock Exchange. They are known as bull, bear, stag and lame duck. A Bull also called as Tejiwala is an operator who is hopeful of price rise in the near future. In anticipation of price rise he makes purchases of shares and other securities with the intention of selling them at higher prices in future. He being a speculator has no intention of taking delivery of securities but deals only in difference of prices. Such as a speculator is called a Bull because of his resemblance of behaviour with a bull. As a bull is famous for throwing up the opponent in the air, similarly a bull speculator also takes the price of securities high up in the air. He does this by placing high-value purchase orders.

A bear or a Mandiwala on the other hand is a speculator who is wary of fall in prices and hence sells securities so that he may buy them at cheap price in future. A bear does not have securities at present but sells them at higher prices in anticipation that he will supply them business purchasing at lower prices in the future. If the prices move down as per the expectations of the bear he will earn profits out of these transactions. 

Just as a bear presses his victims down to the ground, the bear speculator tends to force down the prices of different securities. It so happens that when bearish operators are bent upon selling securities, the prices also automatically come down. It is a usual practice that a bear is not interested in taking the delivery of securities but he is desirous of getting the variation in prices, provided the prices come down. In case prices rise then he will have to pay the difference between the prices at which he purchased the securities and the prevailing prices on the date of delivery. 

Then comes a stag. A stag is that type of speculator who treads his path very carefully. He applies for shares in new companies and expects to sell them at a premium if he gets an allotment. He selects those companies whose shares are most in demand and are likely to carry a premium. He sells the shares before being called to pay the allotment money. A stag does not indulge in purchase and sale of shares in the market like a bull and a bear. A Lame Duck is nothing but a stressed bear. When a bear finds it difficult to complete his promise he is labeled as a lame duck.

WHO ARE SHARE MARKET PARTICIPANTS?

                                  In previous post we have learnt how share market works?.Now we will know who are the participants in share market.The participants in the share market are mainly divided in two

1. Individual retail investors
2. Institutional investors

                                  We all know individual retail investors are those individual who invest in stock market  

and institutional investors  for eg:Mutual funds,pension funds ,insurance companies etc  are those who receive income through premium,investment from their customers invest in share markets.In India LIC is the big bull i.e it is the word used for big investors.

                                  In retail investors they are divided into two types based on their investment purpose i.e traders and investors.Traders are those who hold shares for a very short period of time and they trade the shares for speculative purpose and on the other hand there are investors who invest in share for long term purpose i.e more than one year.

                                   To speculate(means to make profit from fluctuations) on a share the trader has to make a technical analysis on the shares (i.e this study is to analyse the movement of price with short term perspective)

                                For those who invest for long term perspective should do a fundamental analysis of the particular company viz it's financial strength,government support,operational efficiency etc.Because in long term company with strong fundamentals will only survive.

IN THE NEXT POST WE WILL LEARN ABOUT TYPES OF SPECULATORS.

HOW SHARE MARKET WORKS?

                                   In the earlier post we have discussed what is a share? Now the question is how share market or stock market works.
                                   First of all we should know what is a market.A market is place where goods and services are exchanged between buyers and sellers,or a market is a place where sellers and buyers interact with each other.Similarly share market is a place where shares are bought and sold.
                                   So the question is how the prices of these shares are determined?.They are determined   on the basis of demand and supply of a share in the market.And the demand of a share is dependent on the performance of the company,general economic situation in the economy,announcement of budget etc.
                                   for eg: take Infosys shares if the company has announced its quarterly results and if the results had reached the expectation of the market then the demand for the shares increases and simultaneously the share price also increases and viceversa
                                   It should be noted that not every time share prices are determined on the basis of demand and supply.Somtimes speculators tend to create artificial demand for a share and can increase it's price.
                                 

                                   

What is a "SHARE"?

                  Upto seventeenth century the world economy was primarily dependent on agriculture and its allied activities but after 1750 thanks to the Industrial revolution the situation has changed and there was a need for establishment of large scale industries.
                  These large scale industries used to make mass production and there was a necessity for huge capital investment.To provide these capital many types of business organisations has evolved such as sole proprietor,partnership etc.But they were unable to provide such huge capital.
                   Then evolved Company form of Organisation which can provide huge capital.The question is how companies can raise huge amount of capital?
                    A company first decides its capital requirement take for eg:100000. then this 1 lakh is divided into 10000 shares of RS.10 each and these share are sold to the public. There by making then the Shareholders of the company.Since they have contributed to the capital of the company they are the owners of the company.
                     There another question arises i.e since shareholder are the owners can they manage the day to day affairs of the company ?
                       The answer is 'no' because it is practically impossible for all the shareholder who are at different places to manage a company.So,they manage the business indirectly by appointing board of directors.
WATCH THE BELOW VIDEO

                    

Apple sends invite for 'iPad mini launch'

NEW YORK: Apple has sent out invites for an event next Tuesday, where it's expected to announce the release of a smaller iPad. 

The invite, sent to reporters Tuesday, doesn't hint at what will be revealed, beyond saying that "We've got a little more to show you." The event will be held in San Jose, California. 

Media and analysts have said for months that Apple has an " iPad mini" in the works. The tablet is thought to be about half the size of the regular iPad and to start at $249 or $299. The regular iPad starts at $499 for the most recent models. 

Apple founder Steve Jobs derided the idea of a smaller tablet two years ago, but Amazon.comhas had some success with its Kindle Fire, which is about half the size of the iPad and starts at $159. Analysts believe Apple wants to tackle that competition with its own similarly sized tablet. 

Reports suggest that the smaller iPad would have a screen that's 7.8 inches on the diagonal, a bit more than the Kindle Fire or Google's Nexus, with their 7-inch screens. The full-size iPad has a 9.7-inch screen, giving it about twice the display area as the 7-inch units. 

Apple typically starts selling a new phone or iPad a week or two after announcing it. But it could treat the new iPad as a minor product update, in which case it could start selling it right after the announcement. 

Apple shares rose $14.02, or 2.2 per cent, to $648.78 in midday trading Tuesday. The shares are off their all-time high of $705.07, hit September 21 when the iPhone 5 went on sale in stores

SWAPS vs OPTIONS vs FUTURES

Definition

A swap is a derivative in which two parties agree to exchange a set of cash flows (or leg) for another set. A notional principal amount is used to calculate each cash flow; these are rarely exchanged by the parties. A swap is usually used to hedge a risk, such as aninterest-rate risk, or to speculate on a price change. It may also be used to access an underlying asset in order to earn a profit or loss from any change in price while avoiding posting the notional amount in cash or collateral.

An option is a financial instrument that gives the holder the right to engage in a future transaction on an underlying security or futures contract. The holder is under no obligation to exercise this right. There are two main types of option. A call option gives the holder the right to purchase a specified quantity of a security at a fixed price (the strike price) on or before the specified expiration date. A put option gives the holder the right to sell. If the holder chooses to exercise the option, the party who sold, or wrote, the option is obliged to fulfil the terms of the contract.

Futures are traded on a futures exchange and represent an obligation to buy or sell a specified underlying instrument on a specified date (the delivery date or final settlement date) in the future at a specified price (the futures price). The settlement price is the price of the underlying asset on the delivery date. Both parties to a futures contract are legally bound to fulfil the contract on the delivery date. If the holder of a futures position wishes to exit their obligation before the delivery date, they must offset it either by selling a long position or buying back a short position. Such an action effectively closes the futures position and its contractual obligations.

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Advantages

• The use of derivatives means that some financial risks can be transferred to other parties who are more willing or better suited to take or manage those risks and can thus be a useful tool for risk management.
• Purchasing derivatives can be a safer choice if there is a possibility of a looming bear market as they are hedged, unlike equities.
• Buying now at a future price can be cheaper than buying at market price in the future, bearing in mind that the spot price could be less expensive.
• A long call option requires no obligation when it is due.

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Disadvantages

• If the market changes dramatically, it is possible to lose financially if the derivatives are being used as a speculative instrument.
• If you hold the put option on a derivative, you are obliged to adhere to it if the holder of the call chooses to exercise their right to sell or buy.

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Dos and Don’ts

Do

• Take time to consider which derivative is most suitable for the transaction you have in mind.
• Consult a financial intermediary or seek other expert guidance if you are unsure.

Don’t

• Don’t enter into a contract that will lock you in if there’s the slightest possibility that you may need to exit before its expiration date.
  
  

Best Book on SELF HELP-BUSINESS

7 HABITS OF HIGHLY EFFECTIVE PEOPLE

Dr Stephen Covey's inspirational book - 7 Habits Of Highly Effective People®

Dr Stephen Covey is a hugely influential management guru, whose book The Seven Habits Of Highly Effective People, became a blueprint for personal development when it was published in 1990. The Seven Habits are said by some to be easy to understand but not as easy to apply. Don't let the challenge daunt you: The 'Seven Habits' are a remarkable set of inspirational and aspirational standards for anyone who seeks to live a full, purposeful and good life, and are applicable today more than ever, as the business world becomes more attuned to humanist concepts. Covey's values are full of integrity and humanity, and contrast strongly with the process-based ideologies that characterised management thinking in earlier times.

Stephen Covey, as well as being a renowned writer, speaker, academic and humanist, has also built a huge training and consultancy products and services business - Franklin Covey which has a global reach, and has at one time or another consulted with and provided training services to most of the world's leading corporations.

Stephen Covey's Seven Habits of Highly Effective People®

habit 1 - be proactive®

This is the ability to control one's environment, rather than have it control you, as is so often the case. Self determination, choice, and the power to decide response to stimulus, conditions and circumstances

habit 2 - begin with the end in mind®

Covey calls this the habit of personal leadership - leading oneself that is, towards what you consider your aims. By developing the habit of concentrating on relevant activities you will build a platform to avoid distractions and become more productive and successful.

habit 3 - put first things first®

Covey calls this the habit of personal management. This is about organising and implementing activities in line with the aims established in habit 2. Covey says that habit 2 is the first, or mental creation; habit 3 is the second, or physical creation. (See the section on time management.)

habit 4 - think win-win®

Covey calls this the habit of interpersonal leadership, necessary because achievements are largely dependent on co-operative efforts with others. He says that win-win is based on the assumption that there is plenty for everyone, and that success follows a co-operative approach more naturally than the confrontation of win-or-lose.

habit 5 - seek first to understand and then to be understood®

One of the great maxims of the modern age. This is Covey's habit of communication, and it's extremely powerful. Covey helps to explain this in his simple analogy 'diagnose before you prescribe'. Simple and effective, and essential for developing and maintaining positive relationships in all aspects of life. (See the associated sections on Empathy, Transactional Analysis, and the Johari Window.)

habit 6 - synergize®

Covey says this is the habit of creative co-operation - the principle that the whole is greater than the sum of its parts, which implicitly lays down the challenge to see the good and potential in the other person's contribution.

habit 7 - sharpen the saw®

This is the habit of self renewal, says Covey, and it necessarily surrounds all the other habits, enabling and encouraging them to happen and grow. Covey interprets the self into four parts: the spiritual, mental, physical and the social/emotional, which all need feeding and developing.

Stephen Covey's Seven Habits are a simple set of rules for life - inter-related and synergistic, and yet each one powerful and worthy of adopting and following in its own right. For many people, reading Covey's work, or listening to him speak, literally changes their lives. This is powerful stuff indeed and highly recommended.

This 7 Habits summary is just a brief overview - the full work is fascinating, comprehensive, and thoroughly uplifting. Read the book, or listen to the full audio series if you can get hold of it.

In his more recent book 'The 8th Habit', Stephen Covey introduced (logically) an the eighth habit, which deals with personal fulfilment and helping others to achieve fulfilment too, which aligns helpfully with Maslow's notions of 'Self-Actualization' and 'Transcendence' in the Hierarchy of Needs model, and also with the later life-stages in Erikson's Psychosocial Life-Stage Theory. The 8th Habit book also focuses on leadership, another distinct aspect of fulfilment through helping others. Time will tell whether the The 8th Habit achieves recognition and reputation close to Covey's classic original 7 Habits work.

N.B. Various phrases on this page are registered trade marks belonging to Stephen Covey.

Stephen Covey's principles are protected intellectual property and feature strongly in the Franklin Covey organization's portfolio of products and services.

Difference between VENTURE CAPITAL AND PRIVATE EQUITY

This article is very important for those who want to startup their own venture

Technically, venture capital is just a subset of private equity.

They both invest in companies, they both recruit former bankers, and they both make money from investments rather than advisory fees.

But if you take a look beneath the surface, you’ll see that they’re significantly different.

Technically, the term “private equity” refers to money invested in private companies, or companies that become private through the investment.

Most people in finance, though, use “private equity” to mean firms that buy companies through leveraged buyouts (LBOs) – so that’s how we’ll use it here.

A leveraged buyout (LBO) is an acquisition (usually of a company but it can also be single assets like a real estate) where the purchase price is financed through a combination of equity and debt and in which the cash flows or assets of the target are used to secure and repay the debt. As the debt usually has a lower cost of capital than the equity, the returns on the equity increase with increasing debt. The debt thus effectively serves as a lever to increase returns which explain the origin of the term LBO.

While both PE firms and VCs invest in companies and make money by exiting – selling their investments – they do it in different ways:

• Company Types: PE firms buy companies across all industries, whereas VCs are focused on technology, bio-tech, and clean-tech.
• % Acquired: PE firms almost always buy 100% of a company in an LBO, whereas VCs only acquire a minority stake – less than 50%.
• Size: PE firms make large investments – at least $100 million up into the tens of billions for large companies. VC investments are much smaller – often below $10 million for early-stage companies.
• Structure: VC firms use only equity whereas PE firms use a combination of equity and debt.

Stage: PE firms buy mature, public companies whereas VCs invest mostly in early-stage – sometimes pre-revenue – companies.    

 RISK

VCs expect that many of the companies they invest in will fail, but that at least 1 investment will generate huge returns and make the entire fund profitable.

Fred Wilson expects that out of 20-25 investments in his fund, 5-10 will fail, 1 will be a home run, 4-5 will produce solid returns, and the rest will be a wash.

Venture capitalists invest small amounts of money in dozens of companies, so this model works for them.

But it would never work in PE, where the number of investments is smaller and the investment size is much larger – if even 1 company “failed,” the fund would fail.

So that’s why they invest in mature companies where the chance of failing in 3-5 years is close to 0%.

Return?

You might now be wondering, “So which model actually produces higher returns?”

There is a lot of controversy over this one, but returns in both industries are much lower than what investors claim to achieve.

Most VCs and PE firms target 20% returns, but VCs have earned less than 10% returns over a 5-year period and many pension funds that invested in PE firms have also seen sub-10% returns.

One difference is that in venture capital, returns are heavily skewed to the top firms: if you think about their business model, that makes a lot of sense – invest in the 1 big winner and you’re set.

Plus, the best deals in VC almost always go to the top firms because the best deals have always gone to the top firms.

That happens in PE as well, but you can earn great returns without investing in the largest and most well-known companies.

VC'S AND PE'S IN INDIA

The Indian Private Equity and Venture Capital Association was established in 1993 and is based in New Delhi, the capital of India. IVCA is a member based national organization that represents Venture capital and Private equity firms, promotes the industry within India and throughout the world and encourages investment in high growth companies. It enables the development of venture capital and private equity industry in India and to support entrepreneurial activity and innovation. The IVCA also serves as a powerful platform for investment funds to interact with each other. In 2006, the total amount of private equity and venture capital in India reached US$7.5 billion across 299 deals.^[1]

IVCA members comprise Venture capital firms, Institutional investors, Banks, Business incubators, Angel investor groups, Financial advisers, Accountants, Lawyers, Government bodies,Academic institutions and other service providers to the venture capital and private equity industry. Members represent most of the active venture capital and private equity firms in India. These firms provide capital for seed ventures, early stage companies, later stage expansion, and growth finance for management buy-ins/buy-outs of established companies. So far, the biggest member firm of IVCA is ICICI Ventures which currently has a $750 million fund, and has $450 million under management.

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Bajaj Pulsar 375 on the way

It’s still a fair while away, but India’s most famous mass market sportsbike is getting set to become a true ‘big-single’ with Bajaj Auto’s dynamic Managing Director, Rajiv Bajaj having confirmed his R&D team (Ahead) are hard at work developing a 375cc Pulsar that will debut in 2013.

The latest Bajaj will be a close relative to the recently introduced triple-plug equipped 200NS pictured here, and shall aim to be a bold new segment driver when it hits Indian roads sometime next year.

While it’s still early days, with little else known for now, you can safely expect the 2013 Pulsar to deploy all-and-more in terms of an affordable Indian sportsbike, with healthy specifications and seriously quick performance. 

Mahindra Quanto review, test drive

We first broke the news of the ‘mini-Xylo’ (code: U203) on our website on June 3, 2010, and it’s been no secret Mahindra has been developing its own sub 4-metre car, one that has finally taken shape as this, the Quanto. The case for chopping the Xylo’s length was to qualify the Quanto as a small car and, correspondingly, a lower 12 percent rate of excise duty. The result is Mahindra’s first compact SUV that’s set to expand the segment the Premier Rio originally created.

From the front there’s little to distinguish the Quanto from the facelifted Xylo. The ‘V’ on the bonnet is more defined, and there’s a new lip above the toothed grille, but this apart the two cars are near identical upto the rear doors. Where the Quanto looks totally different is from the back. The Xylo’s large rear windows and sizeable rear bumper have been replaced by a smaller quarter glass and minimal overhang aft of the rear wheels. The Quanto also gets different D-pillars, wraparound tail lamps and comes with its spare wheel mounted on the side-opening tail-gate, which goes with its SUV character. The tail however is quite truncated this gives the Quanto slightly gawky proportions that are further accentuated by small 15-inch wheels. However, there are good reasons for this, which you discover when you step inside.

 With the Quanto sharing the Xylo’s 2760mm wheelbase, space inside the cabin is fantastic. You do have to step up into the high-set cabin, but once inside it’s easy to get comfortable. All round visibility is excellent, the front seats are comfy and the dashboard, a straight lift from the Xylo, adds to the feeling of familiarity in here. Cabin quality feels better than previous Xylo’s but its still not perfectly finished and there are a few ill-fitting gaps and rough edges. You are compensated with lots of features. The top-spec Quanto C8 we drove featured power windows, two airbags, a music player with MP3 and aux connectivity and a reverse-parking sensor.

 The middle row gets lots of space and the flat seat base is comfy, but the non-adjustable backrest is a tad too upright. That’s because, believe it or not, the Quanto is a seven-seater and the second-row backrest has undoubtedly been kept upright to free up space for the rear jump seats which are best used for really short drives. There are no headrests and the knees-up seating position and near-vertical backrests force you to adopt a very uncomfortable posture. The seats do fold though, and with them out of the way there is decent luggage space in the back.

To qualify for excise benefits on small cars, the Quanto had to come with a sub-1.5-litre diesel engine. The engine in question is the new 1493cc motor – the mCR100. Interestingly, this common-rail motor is not a grounds-up design but actually a downsized three-cylinder version of Mahindra’s existing 2.2-litre mHawk diesel engine. While understandably not as powerful as the mHawk, the new engine uses a two-stage turbo and an intercooler to output fairly impressive power and torque figures of 98.6bhp and 24.5kgm.

http://www.youtube.com/watch?v=mGPAnIgTBxE FOR VIDEO REVIEW

Bohr Atomic Model Google doodle marks Nobel laureate's 127th birthday

KOLKATA, OCT 7: 

Danish physicist and Nobel Laureate Niels Henrik David Bohr's atomic model, popularly called the Bohr's Atomic Model, is search engine major Google's new doodle.

The doodle marks Bohr's 127th birth anniversary.

Niels Bohr was awarded the Nobel Prize in Physics 1922 for his services in investigating the structure of atoms and the radiation emanating from them.

Born in 1885, his father, Christian Bohr, was a Professor of Physiology at Copenhagen University.

During World War II Bohr, fearing arrest by the Germans, escaped to Britain from where he went to the US to work on the Manhattan Project at the Los Alamos laboratory in New Mexico. It was in this project that the atom bomb was developed.

The Bohr atomic model, introduced in 1913, was a departure from earlier descriptions of the atom. The theory, which became a basis for quantum theory, showed the atom as one with a small nucleus surrounded by electrons that travel in circular orbits - somewhat similar to the solar system. However, instead of gravity, it is electrostatic forces that provide attraction.

Bohr also introduced the idea that an electron could drop from a higher-energy orbit to a lower one, in the process emitting a photon of discrete energy.

Reliance raises $1.5 b through overseas bond issue

MUMBAI, OCT 7: 

The country’s largest corporate Reliance Industries (RIL), which is sitting on a cash pile of nearly Rs 73,000 crore, is on a debt-raising spree again and has mopped up $1.5 billion through an overseas bond sale programme over the weekend, two people with the direct knowledge of the development said.

With the latest debt raising, the Mukesh Ambani-led oil, gas, petrochemicals and retail giant has raised $ 4 billion so far this year, with the first two being a $1.5-billion issue in February and another $1 billion issue in May.

While RIL spokesperson refused to comment, the banks which snapped up the issue could not be reached.

Of the $2.5 billion raised by RIL (which still is one of the least leveraged large corporates in the country with less than 0.50 per cent debt-equity ratio) earlier, the proceeds from first issue of $1.5 billion were mopped up by its US subsidiary for its shale gas programme, while the other was meant for its Jamnagar complex expansion.

The current funds will also be used to finance its capital expansion programme as planned.

The latest unsecured syndicated loan has two maturities.

While $1 billion are a six-year US dollar money, the rest $500 million are a 7.25-year money, according to sources, who did not reveal the pricing of the issue.

This is the first longest tenor unsecured syndicated debt raised by an Asian issuer this year.

The instrument, sold in the North American, European, Asian and Australian markets, was snapped by as many as 28 international and domestic banks with the major ones being State Bank, Bank of America, Bank of Nova Scotia, the ANZ Banking Group, Bank of Tokyo Mitsubishi, Sumitomo Mitsubishi Banking Corp, HSBC Group and RBS, the sources said, adding the i-banking arms of these bankers acted as the merchant bankers to the deal.

The sources also said, the company, which has a AAA rating, did not encourage oversubscription and also did not do any marketing but still got full subscription.

Many domestic companies, mostly banks, have been selling their debt in overseas markets this year.

After RIL, SBI’s $1.25-billion bond sale in July was the largest so far this year. It was followed by Exim Bank’s $750 million debt sale in two instalments in August and September.

Others who raised money from overseas bond market include ICICI Bank, Bank of India, Union Bank, Indian Overseas Bank, Syndicate Bank, Axis Bank, and IDBI Bank, who have raised more than $3 billion in the past two months.

FDI in retail should benefit farmers: Meera Shankar

Mumbai, Oct 6 (PTI) Ruling out the possibility of "flooding" of investment in the wake of nod to FDI in retail, former Indian Ambassador to the United States Meera Shankar has said it would be desirable if it benefits the farmers.

"I don't see flooding of investment in multi-brand retail," Shankar said, in a lecture on `Role of US in Asia-Pacific', organised by the Observer Research Foundation here last week.

"It (FDI) might be desirable...

Navy successfully test-fires Brahmos missile off Goa

Panaji, Oct 7 (PTI) Enhancing lethality of its fire power, the Navy today successfully test-fired a highly- manoeuvrable version of the 290-km range BrahMos supersonic cruise missile from a warship off the Goa coast.

"The cruise missile was test-fired from guided missile frigate INS Teg--the Indian Navy's latest induction from Russia off the coast of Goa early this morning," sources told PTI.

The missile, which was fired without a warhead, hit the target ship after performing intricate manoeuvres, they said.

FDI in multi-brand retail will boost competition: CCI chief

Coming to the defence of the government facing stiff opposition over opening multi-brand retail to foreign investment, the Competition Commission of India today said that entry of big players in the retail market would encourage competition.

"This (FDI in multi-brand retail) will promote competition, as we see itprima facie. At least by the stated objective. Let's see how it works. Once they come, their functioning will be clear and then we can see if at all there is a need to step in," CCI chairman Ashok Chawla told PTI.

Notwithstanding the uproar by political parties, Chawla said that there would be no over-vigilance of multi-brand retail. The sector, he said, would be regulated 'like any other sector with no special dynamics'.

Government's decision to allow 51% FDI in multi-brand retail prompted UPA ally Trinamool Congress to withdraw support to the government. Other political parties including opposition BJP and Left parties too expressed their reservations on opening of multi-brand retail to FDI.

The decision, however, was welcomed by the industry which described it as 'a huge mood lifter'. Experts too have viewed the move as a pro-reform process and something that would benefit all stakeholders -- farmers, small manufacturers as well as customers.

Director, Nathan India Ram Tamara, said, "If in the medium and long-term consolidation happens in the industry with a few retailers controlling a majority of the market, there could be tendencies for anti-competitive behavior, either in the form of vertical restraints – where the dominant retailers exercise their market power on their suppliers – or horizontal arrangements such as cartel behavior." He, however, said "This is just a scenario that could emerge and not necessarily what will actually transpire."

Consumer organisation CUTS said that fears relating to possible anti-competitive practices of predatory pricing and abuse of dominance by big players was unfounded "because of low entry barriers for unorganised retail. "If at all such practices are adopted, the CCI can deal with them," CUTS Secretary General Pradeep Mehta said.

Global retail giants like Walmart and Carrefour could invest up to 51 per cent to open stores in 10 states and UTs in India, which have so far conveyed to the Centre their readiness to FDI in multi-brand retail. Within days of the announcement, US-based Walmart said it hoped to open its first store within 18 months.

25% public float or face action, SEBI warns cos

Private listed companies that have not yet met the minimum public shareholding norm of 25% would need to do so within June 2013, or face potential penal action.

“Stock exchanges shall carefully monitor adherence and take steps to issue advisories to shareholders of non-compliant companies about potential penal actions, so that investors have adequate time to safeguard their interests,” a Sebi circular said. Experts believe the regulator is unlikely to allow any further extension.

Sebi in its board meet also relaxed sectoral exposure norms for debt mutual fund schemes to invest an additional 10% in securities issued by housing finance companies, in addition to the 30% prescribed limit for investing in papers of non banking financial companies.

Sebi in its board meet decided to prepare guidelines for the government's consideration so that different routes for foreign portfolio investments are harmonised and uniform guidelines laid for various categories of investors such as foreign institutional investors, foreign venture capital investors, NRIs and qualified foreign investors, etc.