DXG in las vegas - What an announcement for those Poor pockets !!!

 There's really very little to say about the DXG 3DView camcorder because it doesn't seem to exist yet. At least not in any sort of final form.

Outside the camera and camcorder manufacturer's booth at CES 2010 is a small setup of some 3D images being played back on a special screen. I got the impression that they weren't created with a DXG product--current or future--but simply a demonstration of what 3D looks like.

Around the corner from this display, though, is this poster advertising the dual-lens 3DView camcorder. (Why the giant ram's head coming out of the screen, I have no idea.)

    The only real information I could get out of them was a basic idea of how it works (it records two streams), how you can view the video in 3D (only on the camera's screen, but I'm guessing there will be a larger playback display available eventually), and availability (later this year, maybe Q2 for the standard-def version, which will sell for around $180 with a slightly pricier HD version will follow).

Outside presence in Pharma on the way to the Top yet again !!!

      Foreign drugmakers are poised to regain the supremacy they ceded during the 1970s, thanks to their strategy of gobbling up India’s leading pharma companies.

      The buyouts, including last week’s acquisition of Piramal Healthcare’s generic medicine unit by US-based Abbott Laboratories for $3.7 billion, have seeded many gains for these companies, notably a market share that has soared to 25% from 15%. Analysts say pharma MNC will continue in the same vein and soon control nearly 50% of the $9.5-billion domestic retail drug market.

    “In the next 3-4 years, foreign players’ market share should cross 40% in the domestic retail market through the inorganic route,” said Yes Bank life sciences & technology vice-president Vishal Gandhi.

The Piramal buyout helped Abbott emerge from oblivion and become the country’s top pharma company with a 7% market share.

        Likewise, Japan’s Daiichi Sankyo, which barely had a presence in India in 2008, ranks third in the drug market sweepstakes with a 4.9% share after it bought Ranbaxy Laboratories for $4.6 billion in June that year.

Cipla is the lone Indian name among the top three pharma companies with a 5.4% market share. UK’s GSK is ranked fourth with a 4.3% share.

According to a survey made recently, Today 3 of the country’s top 5 drug firms are foreign MNCs, and there were hardly one or two MNCs in the top 10 in 2007. So you can gauge the change in statistics.
For pharma MNCs, Indian companies provide a diverse strategic value and entry to lucrative emerging markets. While Daiichi Sankyo gained access to 54 countries and broke into generics through its Ranbaxy buyout, Abbott is due for bumped-up sales from India and other emerging markets Mainly through it Cough Syrup sales.

    Global MNCs lorded over more than 75% of the country’s drug market before the Indira Gandhi-led government adopted a process patent regime in 1971. It allowed Indian companies to sell generic drugs by tweaking the original process, enabling them to launch an array of products. Soon, even fringe players like Mankind Pharma and Alkem became formidable forces.

And in the late 1990s and earlier this decade, a string of Indian firms led by Ranbaxy, Dr Reddy’s Laboratories and Sun Pharma, representing the bold new face of Indian pharma snapped up companies globally to strengthen their presence in the US and Europe.

Foreign players were pushed into a corner. Their market share shrunk to 14-15 % in 2007, but global MNCs in the face of shrinking revenues and the prospect of further losses when patents of drugs worth $70 billion expires by 2013 began to amplify their presence in generics from 2008. Generics happened to be a segment they shun till a few years ago.

Through a series of buyouts by companies such as Daiichi Sankyo (Ranbaxy), Abbot (Piramal Healthacre), Sanofi Aventis (Shantha Biotech) and Fresenuis Kabi (Dabur Pharma), the tables seem to have turned on Indian drugmakers.

India’s Rs 42,000-crore drug retail market is growing annually at 17%, as per market research firm ORG IMS.
Overseas players have also put in place aggressive organic plans. Post-integration , their organic growth coupled with the launch of patented products is expected to vault their market share to 50% by 2015.

Ranbaxy has hired 1,500 people to beef up its sales force and will launch 100 new products in 12 months. Abbott will use Piramal’s sales force — at 7,000, it is the country’s largest — to sell existing and new products, including patented ones.

So analysts say it will not be surprising to see Pfizer getting more aggressive to offset a loss of $13 billion in annual sales from patent expiry of its blockbuster drug Lipitor in November 2011.

For patients, the consolidation means costlier medicines, especially patented drugs. India adopted a new patent regime in 2005, giving patent owners rights to 20 years of exclusive marketing. Obviously, Abbot will not sell their drugs at the same price as Piramal did. This should be a matter of concern for the government and civil society.

Currently, only 74 bulk drugs are under the government’s direct price control. But responding to industry concerns, the government is examining a proposal to restrict the current 100% foreign direct investment allowed in the sector.

Lawyer-activists like Grover point to India’s appaling healthcare system. More than 90% of patients pay from their own pocket for health costs and for a quarter of the population who live below poverty line, healthcare is beyond reach, they say.

But Cipla joint MD Amar Lulla said such deals are choices of individual companies. “This does not in any way set a pattern,” he said. The business has merely changed hands and competition remains the same, he said.

Even so, a few billion dollars will not check global majors from scouring for buyouts to save falling sales.

India’s pharma market, including exports and institutional sales, is valued at Rs 1,00,000 crore or $25 billion. In contrast, Pfizer paid $67 billion to acquire Wyeth. Likewise, Merck was happy to shell out $41 billion to merge with Schering Plough.

Expect more Foreign Investments now in coming years....

Is it RIGHT ???

I think there are very worse scenarios that the media, and i mean all kinds of Media need to focus on. There is definately an entire sea of news in this Break up and Patch up thing, but a lot of people need attention of the officials to be diverted to their problems. I would love it if this patch up news was handled a bit more maturely without making much fuzz and all. It might be important to the big news readers and all, but is our integrity towards all the sections of the society grown so low that we cant focus on solving bigger problems at hand? I have a close friend who says, "You can easily evade the BIG ROCK thrown at you, but how you tackle those SMALL STONES thrown at you is all that matters."
         The big rocks will hurt bad, but will hurt once and we have time to heal after that. And the small stones do hurt, that too, again and again, which gives way less time to heal. Moreover you are hurt at many places at once.

       My dear readers, I am not asking to divert attention from anything, but asking whether some news are really that important to be made big??

do comment...

THE SATYAM SAGA

22 September 2008: Satyam Computer Services won the Golden Peacock Global Award for excellence in corporate governance for 2008 given by the World Council for Corporate Governance. On that day, the Satyam stock ended down 4.69% at Rs 352.75.

16 December 2008: Satyam announced that it will acquire 100% in unlisted Maytas Properties for $1.3 billion and 51% of construction firm Maytas Infra for $300 million. Satyam founder and chairman B Ramalinga Raju and other insiders held 36% in Maytas Infra and 35% in Maytas Properties. Ramalinga Raju originally promoted the deal by saying it would de-risk Satyam's core business in IT services. The announcement was made after market shut on that day.

Satyam had planned to fund 75% of the acquisition with cash and the rest by selling debt. Satyam planned to acquire 31% in Maytas Infra from its promoters, or company insiders, at a price of Rs 475 a share. Satyam also planned to make an open offer for an additional 20% at a price of Rs 525 a share.

The acquisitions made little sense at a time when technology outsourcing companies are preserving cash to cope with slowing outsourcing business. Maytas Properties is into urban infrastructure development whereas Maytas Infra is into infrastructure construction and asset development.

Following the surprising announcement, Satyam's American depository receipt (ADR) plunged on 16 December 2008 as investors reacted negatively to its plan to buy two related companies. The ADR of Satyam Computer Services, which closed down $6.85, or 55%, at $5.70 on the New York Stock Exchange, jumped 50% in after-hours trading to $8.89. Even after the evening rally they were still down 28% from 15 December 2008's close of $12.30. On that day, the Satyam stock ended up 0.49% at Rs 226.50.

17 December 2008: Folowing a negative investor reaction, Satyam called off the deal which it had announced after trading hours in India on 16 December 2008. Satyam announced the decision to call off the deal before trading hours in India on 17 December 2008. However, the Satyam stock slumped 30.22% to end at Rs 158.05 on 17 December 2008 as investors judged Satyam's move as a total disregard for corporate governance and shareholders. On that day, the Satyam stock slumped 30.22% to end at Rs 158.05.

18 December 2008: Shares of Satyam spurted 7.15% to end at Rs 169.35 after the company said during trading hours on that day that its board will meet on 29 December 2008 to consider buyback of shares.

Satyam's decision to consider buyback was aimed at soothing investors nerves after the stock slumped 30.22% to Rs 158.05 on 17 December 2008, hitting a five-year low in intraday trade, with investors exiting the counter due to poor corporate governance. Satyam claimed of having a large cash pile of $1.1 billion, which marketmen hoped the company could use for buyback. On that day, the Satyam stock jumped 7.15% to end at Rs 169.35.

19 December 2009: UK-based online and mobile payment services player Upaid Systems filed a motion against Satyam in a state court, requesting testimony of Satyam's chairman B Ramalinga Raju, chief financial officer Srinivas Vadlamani and global head of corporate governance G Jayaram in connection with Satyam's failed attempt to strip all surplus cash from Satyam to to buy two closely held companies.

Upaid had urged the top Satyam officials to clarify as to why the company went through with the Maytas deal, in case they were looking at moving cash out of the books largely because they feared Satyam could loose the Upaid's earlier filed case.

Upaid and Satyam are locked in a two-pronged legal battle, one, a forgery case filed by Upaid against the Satyam management seeking damages of over $1 billion, and the other, a disparagement case levelled by Satyam against the little known UKbased company.

The forgery case dates back to early 2000, when Satyam was working on a contract job for U-paid . Upaid says that it ran into problems with Qualcomm and Verizon and had to settle the case with them under grossly unfavourable terms due to forgery by Satyam officials. On that day, the Satyam stock ended down 3.87% at Rs 162.80.

23 December 2008: The World Bank confirmed that it has barred Satyam Computer from doing business with it for eight years, starting September 2008, due to data theft and paying bribes to its staff. The World Bank, which had signed a $100-million billing per annum contract, had been an important client for Satyam. Since 2003, Satyam had been writing and maintaining all software for World Bank across all locations. This also included maintenance of software in back-end offices. On that day, the Satyam stock slipped 13.55% to end at Rs 140.40.

25 December 2008: Satyam Computer asked the World Bank to withdraw 'inappropriate' statements about the Indian outsourcer and to issue an apology for harm done to the company.

Earlier On 23 December 2008, the World Bank had issued a statement saying Satyam was debarred from getting direct contracts from it under its corporate procurement programme for eight years from September 2008. Media reports had suggested that data theft was one of the reasons why the World Bank had barred Satyam from doing business with it. Equity markets were shut on that day on account of Christmas holiday.

26 December 2008: Satyam said Mangalam Srinivasan, non-executive and independent director of Satyam resigned from the company effective 25 December 2008. On that day, the satyam stock ended 0.41% up at Rs 135.50.

29 December 2008: Satyam said Professor Krishna G Palepu, non-executive director and Vinod K Dham, non-executive and independent director of the company resigned from the company effective 28 December 2008. The outsourcer did not give any reason for the resignations.

Satyam, before trading hours on the same day had postponed the board meeting set on 29 December 2008 to 10 January 2009 to mull options beyond just a possible share buyback. The company said in a statement its board would consider moves to strengthen the firm's governance structure, including increasing the size and altering the composition of the board. It also said it had hired DSP Merrill Lynch to review the company's 'strategic options' to enhance shareholder value, but did not give further details. On that day, the satyam stock ended 9.41% up at Rs 148.25.

30 December 2008: Media reports suggested some institutional investors in the company had approached IT firms and private equity players for a stake sale. The report cited market participants as its sources. On that day, the satyam stock ended 8.33% up at Rs 160.60.

31 December 2008: Media reports suggested US-based computer firm Hewlett-Packard may buy a stake in Satyam. Hewlett-Packard (HP) was reported to be attracted by the Satyam's lucrative business software practice. Reports suggested that buying stake in Satyam could give HP an opportunity to challenge its rival IBM with bigger, low-cost offshore capabilities. On that day, the satyam stock ended 5.95% up at Rs 170.15.

3 January 2009 (Saturday): Founder-promoters stake declined from 8.64% to 5.13%t as financial institutions with whom the entire stake was pledged dumped the shares. Of the remaining 5.13% stake (around 3.45 crore shares) with the promoters, around 2.19 crore shares (or roughly 63% of the holdings) were still reported to be pledged with various lenders.

6 January 2009: Satyam denied media reports that suggested that Tech Mahindra had approached Satyam for an all-share merger. On the same day, Satyam had announced that the share of promoters' group in the company had further dwindled with lending agency IL&FS Trust Company selling off 1.03 crore shares afresh. On that day, the satyam stock ended 7.31% up at Rs 179.10.

7 January 2009: Satyam's chairman Ramalinga Raju resigned the company and admitted fraud of reporting inflated figures in the accounts of the firm. As per the announcement, Satyam's balance sheet as on 30 September 2008 had inflated cash and bank balances of Rs 5040 crore, inflated debtors of Rs 490 crore and non-existent accrued interest of Rs 376 crore. Against this the liability was understated by Rs 1230 crore.

Raju said the Q2 September 2008 results had overstated operating revenues by Rs 588 crore, thereby overstating the operating profits and cash to that extent.

The gap in the balance sheet has arisen purely on account of inflated profits over the period of last several years, Raju confessed adding that every attempt made to eliminate the gap failed. As the promoters held a small percentage of equity, the concern was the poor performance would result in a takeover, thereby exposing the gap, Raju said.

Raju said in the last 2 years a net amount of Rs 1230 crore was arranged to keep operations going. He said this was done by pledging all the promoter shares and raising funds from known sources by giving all kinds of assurances. Significant dividend payments, acquisitions, capital expenditure to provide for growth did not help matters. Every attempt was made to keep the wheel moving. The last straw was the selling of most of the pledged share by the lenders on account of margin triggers, Raju said.

The aborted Maytas acquisition deal was the last attempt to fill the fictitious assets with real ones, Raju said. Maytas's investors were convinced that this is a good divestment opportunity and a strategic fit, he said.

Raju ended the statement with an apology to Satyam's staff and shareholders and said he was prepared to face the legal consequences.

On the same day, Satyam Computer announced of forming a new team to look into its day-to-day affairs, following the resignation of its chairman Ramalinga. The interim CEO of Satyam, Ram Mynampati, sent a letter to the management and staff, announcing the formation of a new team that consisted of persons who have spent 10 years in the company and twenty years in the industry. On that day, the satyam stock tumbled 77.69% up at Rs 39.95.

8 January 2009: Media reports suggested Satyam's banker Citibank froze more than 30 operational accounts of Satyam Computer. These are trade receivable accounts, and the aim may be to protect the bank's $70-million exposure to the troubled technology firm. Equity markets were shut on that day on account of Moharram.


11 January 2009 (Sunday): In a swift action to salvage the beleaguered Satyam Computer Services, the government, after market hours on Friday (9 January 2009), sacked the remaining three directors erstwhile board on Satyam, including the interim CEO Ram Mynampati. The government then set up a three-member board on 11 January 2009 in a bid to restore confidence in the outsourcing company rocked by India's biggest corporate scandal.

The new three-member board consists of Deepak Parekh, chairman of Housing Development Finance Corporation. Kiran Karnik, former president of the National Association of Software and Service Companies (Nasscom), a technology lobbying group, and C Achutan, a former official at the Securities and Exchange Board of India (Sebi). All the three members would act as independent directors. Corporate Affairs Minister Prem Chand Gupta expressed the hope that the new board would be able to provide the necessary vision, along with responsible and accountable leadership, to the company in this hour of crisis.


23 January 2009: Larsen & Toubro raised its holding in Satyam Computer Services to 12% from 4% earlier. L&T hiked stake in Satyam as the initial cost of investment in Satyam was at risk.

Following the additional share purchase, L&T's average acquisition price of around 12% stake in Satyam dipped to Rs 80 a share from the Rs 174, it paid earlier.

L&T had acquired 4% in Satyam at Rs 174 per share before Satyam's founder B Ramalinga Raju admitted on 7 January 2009 of a Rs 7,000-crore accounting fraud at the IT firm.

If the stake reaches 15%, L&T will then, as per the regulator's takeover guidelines, have to make an open offer for an additional 20% stake in Satyam.

27 January 2009: The government-appointed board of Satyam Computer Services appointed the Boston Consulting Group (BCG) as the management advisor to support the directors and the Satyam leadership team.

Goldman Sachs and Avendus were appointed investment bankers to advise the company on the way forward. A dedicated three-member BCG will work closely, free of charge, during this revival process, Deepak Parekh, board member, had said.

5 February 2009: The government-appointed board of fraud-scarred Satyam Computer Services on Thursday, 5 February 2009, appointed A S Murty, a Satyam executive for 15 years, as chief executive officer (CEO). Murty will be the chief executive with immediate effect, the company said in a statement. Murty was the Global Business Head of Satyam.

The board also said it has received bank lines of credit for Rs 600 crore toward working capital requirements. The money will help the company tide over its financial challenges, the board said.

The board said it had brought on two additional advisers: Homi Khusrokhan, who has served as managing director of Tata Chemicals, Tata Tea, Glaxo Laboratories India and Wellcome India; and Partho Datta, a chartered accountant who will focus on restating the company's scrambled third-quarter results.

6 February 2009: The government announced the appointment of Nasscom past-president Kiran Karnik as chairman of its six-member board.

13 February 2009: The Securities & Exchange Board of India (Sebi) relaxed takeover regulations for companies whose boards have been superseded and replaced by the Government or other regulatory authority. This smoothened the way for a possible sale of Satyam Computer Service, the only company that currently fits this description.


19 February 2009: The Company Law Board (CLB) allowed the government-appointed board of Satyam to bring in a strategic investor through an open bidding process. For this purpose, the CLB also permitted the board to increase the authorised share capital and issue preferential shares.

Currently, the authorised capital of Satyam is 80 crore shares of Rs 2 each, of which 67.3 crore shares have already been issued. The CLB has authorised the Satyam board to pass a resolution to amend the capital clause of the Memorandum of Association to raise its authorised capital. Accordingly, the authorised capital of Satyam will increase from Rs 160 crore comprising 80 crore shares, to Rs 280 crore comprising 140 crore shares.

The Satyam board has been directed to devise a mechanism for transparent, open and competitive process without furthering the interest of any particular acquire. Besides, the board will also have to obtain requisite approvals from the Securities & Exchange Board of India. The process of selection of a strategic investor will be overseen by a retired judge of the Supreme Court or former Chief Justice of India.

6 March 2009: The Sebi approved selling 51% stake in Satyam through global bidding process.

As part of the two-phased bidding process, a chosen investor will acquire newly issued equity shares representing 31% of Satyam's share capital and then make a mandatory minimum public offer to buy a further 20% stake. The bidders are expected to have total net assets in excess of $150 million.

9 March 2009: Satyam commenced a competitive bidding process for selection of an investor to acquire 51% equity stake. Interested bidders were asked to submit a detailed expression of interest and the proof of availability of at least Rs 1500 crore by 20 March 2009.

American Express sacks more Indian employees

Global credit card and payment services major American Express has asked some more of its employees in India to leave this month, as part
of its global restructuring announced late last year.

"Only 1-2 per cent of our present workforce in India is impacted," an Amex spokesperson said, without giving specific numbers.

According to industry sources, Amex has a workforce of over 6,000 people in India.

The company spokesperson separately said in an emailed statement, "The restructuring is part of the overall worldwide re-engineering efforts we announced in late 2008.

"As shared earlier, India is not the main focus of the restructuring. Many of the employees whose jobs were impacted were notified in 2008. In other cases, the notifications are taking place in early 2009."

In late October 2008, Amex announced that it would cut 7,000 jobs globally, representing about 10 per cent of its worldwide workforce, as part of a plan to save 1.8 billion dollars of costs in 2009.

This was followed by about a hundred job cuts in India.

Obama Signals Tough Restrictions on Banks in Rescue Package

President Barack Obama signaled that he would toughen restrictions on and oversight of banks as part of a fresh plan to aid the battered industry.

Obama blasted the banks yesterday over reports that they’ve spent money renovating offices after receiving billions of dollars from the government and vowed they would be held accountable for any aid they receive in the future.

The tough talk seemed designed to build support for a rescue plan that aides say Obama will roll out soon by reassuring lawmakers and voters that the administration will keep close tabs on money it hands out. Pressure for a plan is building after the Standard & Poor’s 500 Index fell for the third straight week, in part because of concerns about the health of the banks.

“They’re going to have to take some early action,” said Michael Bleier, a partner at law firm Reed Smith in Pittsburgh and a former Federal Reserve lawyer. “Banks and the financial services industry have to have balance sheets that are strong.”

The administration’s economic team, which will meet with Obama today, has been working on a program to bolster the banks and get them lending again. People familiar with their thinking have said the plan is likely to include fresh capital injections into the banks and steps to clear bad assets off bank balance sheets.

Satyam doesn't need govt help to pay salaries

The government on Saturday said that Satyam does not need its support to pay salaries to the company's employees, whose number has become a matter of controversy after the CID claimed that the IT major has inflated its headcount.

"They don't need (the) government's help. They will manage the issue (of payment of salary)," Corporate Affairs Minister Prem Chand Gupta said while talking to reporters.

The Andhra Pradesh government's investigating agency CID, which is investigating the Satyam fraud case, said before a local court that the company had inflated the number of employees by at least 12,000. The company had claimed that it had over 52,000 employees.

Gupta had earlier said the company had receivables of about Rs 1,700 crore.

Satyam needs about Rs 500 crore per month to meet the cost of establishment, including salaries to employees.

Following the disclosures of the accounting fraud by the disgraced founder chairman of the IT company B Ramalinga Raju, the government superseded the Satyam Board and appointed its own nominees.

The newly-constituted board has appointed two global auditing firms, KPMG and Deloitte, to re-state the accounts of the company, even as Satyam's auditors Price Waterhouse told the new board not to rely on its audit reports.

Replying to questions on the appointment of a new CEO and CFO, Gupta said, "This (appointment of CEO and CFO) is being looked into by the board. They are studying the applications they have received. The new board will take a view soon."

According to Tarun Das, a member of the newly-appointed Satyam Board, the company has received 40 applications for top management positions in the company.

RBI collects information on banks' exposure in Satyam

The Reserve Bank of India has collected data on banks' exposure in scam-tainted IT firm Satyam Computer and an investigation in the matter
is on, a top RBI official said.

"We have collected data on direct and indirect exposure of banks to Satyam. The investigation in the matter is on," RBI Deputy Governor Shyamala Gopinath told reporters here on the sidelines a conference organised by the Indira Gandhi Institute of Development Research on Money and Finance.

The Reserve Bank of India (RBI) had asked banks to furnish information to the central bank on their fund and non-fund based exposures to Satyam and associate companies.

A communique to this effect had been sent to banks recently, Gopinath said.

Replying to a question on banks not cutting their interest rates on the ground that their cost of funds are still high, Gopinath said, "It is up to (the) banks to decide how to go about it. Banks are responding by cutting PLR and deposit rates."

The Indian financial markets are facing excessive pressure due to the substitution effect, subsequent to the drying up of alternative credit avenues during the current financial turmoil.

"The slowdown in the real sector is affecting the financial sector, which, in fact, has second order impact on the real sector," Gopinath said.

During a boom time, any asset is liquid and marketable, while when the market breaks down, the asset becomes illiquid, she said.

"There is a need to have government bonds in a portfolio of liquid assets," Gopinath said.

The Indian growth process is driven by domestic factors and the country has a comfortable foreign exchange reserve, Gopinath said.

The reversal of capital flows due to the de-leveraging of global markets has put pressure on India, she said, but expressed confidence in the Indian banking sector, saying ratios of Indian banks are better than their peers.

"Indian banks' average capital adequacy ratio is 13% as on March 31 as against the regulatory requirement of 9%," Gopinath said adding that their foreign units have suffered some mark-to-market losses due to the widening credit spread, the Deputy Governor Gopinath said.

Commenting on over the counter derivatives (OTC), Gopinath said, "there is a need for a central counter-party for OTC derivatives when volumes are high. The gap between prudential needs and accounting standards needed to be bridged and regulations in leveraging, transparency and liquidity must be ensured."

Financial sector entities need to be seen and regulated as risk repositories in the system-any notion of their risks being dissipated into or outside the system is inherently flawed.

There is, therefore, a need for limits, prudential safeguards and adequate capital to support the risks.

ONGC-Mittal signs deal to take 25% stake in Kazakh oilfield

Oil and Natural Gas Corp and its billionaire partner Lakshmi N Mittal on Saturday signed an agreement to take a 25% stake in
Kazakhstan's prospective Satpayev oil field in the Caspian Sea.

ONGC Mittal Energy Ltd, the joint venture of ONGC Videsh Ltd and Mittal Investment Sarl, signed the agreement with Kazakhstan's national oil firm KazMunaiGas (KMG) for the stake, official sources said.

OVL Managing Director R S Butola signed the agreements on behalf of OMEL and for KMG its President Kairgeldi Kabyldin inked the deal.

The agreement is clumination of nearly four years of negotiations during which Kazakhstan went back and forth on giving stake to the Indian company.

Kazakhstan had initially identified the Satpayev and Makhambet blocks in the Caspian Sea for giving a 50% stake in one of them to OVL, the overseas arm of state-owned ONGC. Later it reduced the stake on offer to 25% on condition that the Indian flagship teamed up with steel baron Lakshmi N Mittal for entry.

OVL relented and in June 2007 made an attractive commercial proposal to KazMunaiGas (KMG), but in subsequent negotiations, Kazakhstan's state-run firm did not agree on the percentage of stake OVL would get. It also did not agree on giving operatorship to OVL during the exploratory and appraisal stages.

Kazakhstan today finally decided to sign the agreement. KazMunaiGas will hold the remaining 75% stake in Satpayev.

Gold v/s Silver

Gold prices spurted to an all-time high of Rs 14,110 in early trade on the bullion market on Saturday on hectic stockists buying triggered
by sharp rise in global markets.

Silver also advanced further on persistent industrial demand on the back of higher international advices.

Standard gold (99.5 purity) rallied by Rs 345 per ten grams to open at an all-time peak of Rs 14,110 from yesterday's closing level of Rs 13,765. It earlier touched a high of Rs 14,105 on October ten, 2008.

Pure gold (99.9 purity) also shot up by Rs 350 per ten grams to Rs 14,170 from Rs 13,820 yesterday.

Silver ready (.999 fineness) rose by Rs 425 per kilo to Rs 19,480 from Rs 19,055.

Gold prices rose to a three-month high, climbing past USD 900 an ounce in both New York and London for the first time since October, as global equity markets tumbled, boosting demand for a safe harbor.

Gold futures for February delivery climbed USD 37, or 4.3 per cent, to USD 895.80 an ounce on the Comex Division of the New York Mercantile Exchange, the biggest gain since December 10. Earlier, the price reached USD 903.80, the highest for a most-active contract since October 10.

Silver futures for March delivery rose 57.5 cents to USD 11.94 an ounce.

Intel cuts processor prices by 48%

Intel, the world's largest chip maker, has cut the price of some processors by as much as 48 per cent as it confronts slumping demand and new lower-cost chips from Advanced Micro Devices Inc, Bloomberg reported.

The price of Celeron 570 processors, designed for laptops, dropped 48 per cent to $70 whereas one of the company's quad-core desktop-computer models, which have four processors on one piece of silicon, dropped 40 per cent to $316, the news agency said.

Intel kept the price of its three most expensive desktop chips unchanged, the report said on Tuesday. Intel was not immediately available for comment.

The US company had said it expects margins to bounce back to "healthy" levels by the second half of 2009, but held back on giving detailed quarterly forecasts when it issued earnings on January 15, citing economic uncertainty.

Invest C$400,000 for 5 years & be a permanent Canadian resident

Canada's immigrant investor programme, under which applicants investing Canadian $400,000 for five years with the Canadian government NRI Taxation
Remittances made easy
Liberalised norms for NRI investors
are eligible for permanent residence, is being expanded as a source of foreign investment to tackle the economic downturn.

Canada's minister of citizenship, immigration and multiculturalism Jason Kenney told ET that the programme will be made more attractive for high net worth individuals so that it can draw more capital to Canada in these recessionary times. The immigrant investor programme was created by the Canadian government, originally, to woo successful foreign business immigrants to bring new investment to Canada.

The Canadian government will soon announce changes in the immigrant investor programme so that we can leverage it better as a source of capital inflows into the country in these recessionary times.

Gold imports in India for 2008 dipped by almost 47% to 402 tonnes

"High prices have been the culprit this year as gold imports in India for 2008 dipped by almost 47% to 402 tonnes. The December 2008 gold imports stood at only 3 tonnes versus the 16 tonnes in December 2007," National Commodities Exchange of India's (NCDEX) Economist, Manasee S Gokhale, said in a report.

The economic turmoil has also hit the demand for luxury goods and hence the demand for jewellery has fallen considerably.

'Buying remained dull and prices remained high on global cues', Gokhale said.

Although the gold market fundamentals look excellent, investors have been struggling for survival and in this attempt have sold even their gold and silver positions. As a result, gold prices have dropped continuously till they hit the $680/troy ounce levels. As compared to equities or other commodities, the percentage fall in gold prices has been lesser, Gokhale said.

Commenting on the performance of gold price in 2009, Gokhale said that if the downward scenario continues and there is deflation, gold would do well as asset value drops because of fear and distrust in the system.

"What appeared to be excellent market conditions in 2008 have all vanished into thin air and staring us in the face is the growing uncertainty created by the financial crisis," Gokhale said.

Former Satyam brass asked to furnish bank, asset details

The Company Law Board on Wednesday passed a restraint order against erstwhile tainted management of Satyam ordering them to provide
details of their bank accounts and movable and immovable properties both in India and abroad before it.

“Satyam's founder Ramalinga Raju, his brother B Rama Raju, former CFO Vadlamani Srinivas, executive Ram Mynampati, and company secretary G J Jayaraman have been asked to furnish details of assets including movable and immovable assets both in India and abroad," says P C Gupta, minister of company affairs.

"This was being done to ensure that the former officials do not profit or otherwise gain from any diversion of siphoning of fund from Satyam," Gupta said.

"The orders have been issued by the board and details have to be given in a sealed cover by Feb 20," Gupta said.

China’s Economy Grows 6.8%, Slowest Pace in 7 Years

China’s economy expanded at the slowest pace in seven years as the global recession dragged down exports, increasing pressure for more government spending and lower interest rates to buoy growth.

Gross domestic product grew 6.8 percent in the fourth quarter from a year earlier, after a 9 percent gain in the previous three months, the statistics bureau said in Beijing today. It’s an astonishingly steep slowdown.

The yuan today, traded at 6.8362 against the dollar in Shanghai from 6.8378 yesterday. The CSI 300 Index of stocks rose 0.4 percent, taking its gain this year to about 11 percent.

The central bank may cut the key one-year lending rate by as much as 81 basis points to 4.5 percent by the middle of the year, after 2.16 percentage points of reductions since September, said Paul Cavey, an economist with Macquarie Securities in Hong Kong. Also. Bank reserve requirements will also decline.

Govt.'s not selling Satyam atleast for now...

Government today(22nd Jan, 08) said it has no plans to sell Satyam and that it would rather see the beleaguered company stand on its feet than put it
up for sale.

"Many corporate houses are interested in this (in buying Satyam), but the Government has not taken any view on that. Now the board is in place. Now it is for the board to take a call on it.

"But as far as the Government is concerned, there is no such thinking and no such move," corporate affairs minister PC Gupta told reporters here when asked whether L&T was in race for taking over Satyam.

"We sincerely wish that the company is brought back on its feet," he said.

On Tuesday, Satyam's new director Tarun Das said the company has been approached by potential buyers. "All I can say, we have been approached by potential buyers," he said.

Another board member Deepak Parekh said today that the company has received nearly 40 applications for the post of CEO at Satyam and that the company was also concentrating on tying up funds to keep the company alive.

"We have a large set of receivables. So we are trying to request our clients to pay us the money. We have told the sales force to go on a massive move to recover the receivables earlier. So, we have resources to meet some payment for January," he told reporters in Mumbai.

Rupee seen up on stock gains

Rupee is seen higher on Thursday,22nd jan. on gains in some Asian stock markets and the dollar's losses against some Asian currencies, but caution
ahead of a central bank policy review next week may cap the rise.

The partially convertible rupeeclosed at 49.11/13 per dollar on Wednesday, 0.2 per cent stronger than Tuesday's close of 49.20/22.

Foreign fund flows have been a key factor determining the rupee's fortunes in recent years. Foreigners have already sold about $660 million worth of local shares in 2009, after having dumped more than $13 billion last year.

One-month offshore non-deliverable forward contracts were at 49.10/20, largely in line with the local onshore closing rate.

Asia stocks clung to small gains on Thursday, with investors reassured after bank shares fuelled a Wall Street rally, but with global economic gloom still pervasive, safe-haven trades such as the yen and US Treasuries also rose.

Sebi orders promoters to disclose details of their pledged shares

For long, promoters had managed to get away by not making disclosures about the shares they had pledged with lenders. Not any more. On
Wednesday, Sebi ruled that henceforth, promoters will have to make public the details of their shares pledged with lenders.

The Sebi board’s decision to enhance the disclosure requirements is as per the primary market advisory committee’s recommendations.

The disclosures will have to be made in two ways. One is event-based — as and when the shares are pledged by the promoters, and the other one is periodic, i.e. at the at the time of quarterly results.

"For event-based disclosure of pledged shares, there will be certain limit, and those will be notified when changes are made in regulations. As far as periodic disclosure is concerned, there will be no limit," Sebi chairman CB Bhave said while addressing the media after the Sebi board meet.

"Details of pledge of shares and sale of pledged shares shall be made to the company and the company shall in turn inform the same to the public through stock exchanges," Mr Bhave said, adding that the pledged shares sold by lenders would also have to be disclosed to bourses.

The practice of promoters pledging shares picked up momentum when the stock market was in an upswing.

In some cases, the money raised through this arrangement was for official purposes — meeting working capital requirements, for one. But often, promoters would use this leveraging game to further raise their stakes in the companies they owned.

Promoters of most real estate companies and many mid-cap companies have been raising funds through this route. The game worked well in a rising market but took a disastrous turn when the tide reversed. Most promoters were unable to meet their margin calls, which were triggered by falling stock prices.

As a result, lenders dumped shares, thus exacerbating the stock price decline, leading to further margin calls.

The Sebi board also reviewed the progress made so far in investigations in the matter of Satyam Computer Services. Mr Bhave clarified that the regulator had questioned some key officials of Satyam, with the exception of its chairman.

Sebi is also investigating Satyam’s bank deposits and probing for signs of unusual trading activity in Satyam shares.
The regulator has not formally ordered probe on Maytas Infra so far.

On the issue of remuneration of independent directors, Mr Bhave said it was not for the regulator to decide how much the directors should be paid. He also said Sebi had written to the government on the appointment of independent directors in PSU companies, where the posts were yet to be filled.

Strong US = Better India

Indians world wide are hoping that US president Barack Obama will help to quickly revive the world economy, and thus also the Indian economy. But will that happen?

Obama’s first priority is the US economy, and a strong US economy will be good for India. Obama’s clear stance on terror will also benefit India. With a terror free environment, businesses will thrive.

The healthcare industry is anticipating positive reforms. The focus will be on generics and on catalysing biosimilars. Research on stem cells, nano, biofuel and renewable sources will get impetus. The biotech sector is full of optimism. More generally, however, given that his focus is likely to be on creating jobs in the US, Indian companies would need to focus on value added services and not just be a cost effective destination. Large subsidies in the US can act against India’s cost benefit.

Obama’s fresh thinking on the economy will spur growth. He might also see that the global agreement on services is concluded quickly which will help solve many of the services industry’s issues. The nuclear issue will start moving and this might solve India’s energy problems. He is the right person to ensure more investments in emerging countries.

Interogation of Jokers

Were Ramalinga Raju’s interrogators cracking the Rs 7,800-crore fraud case or cracking jokes? At the CID office at AC Guards where the
disgraced chairman of Satyam was being ‘interrogated’, peals of laughter were heard on Wednesday.

This seems strange because one would imagine that the investigators would be racing against time and would be trying their best to extract the most on the fourth and final day of Raju’s custody instead of guffawing.

There have been rumours that the atmosphere was just too casual and their laughter from the floor in the building where Raju is with the CID investigators could be heard. In fact, in the last three days, there were several lighter moments during the so called 'interrogation'.