Monday, October 11, 2010
Wednesday, August 4, 2010
Tips On The Stock Market- Free Interrelated Tip For Stock Market Advice Tip by sudarsan chhetri
Every day there are a dozen new HOT stock market tips that ensure your financial success. Every day there are hundreds if not thousands of people that jump on the bandwagon, and every day, each of those people are disappointed.
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Prior to you get started, you wish to have to make sure you're doing your correct research prior to you are taking a trade. Unfortunately, there are a large amount of "knee-jerk" traders in the penny stock market. Because the stock prices are thus low, that many novice just jump at it, without thinking. Analyze the pros and cons of each trade. You have to confirm to do your homework.It's also important that you discover a website that you'll trust that may supply you with the obligatory information you need to choose which stock to trade. You could find a TON of FREE websites that may give you stock tips.
The first thing you had much better do if you are thinking of getting into options trading is to become acquainted with all of the language, and just precisely what is what. You wish to have to learn just what stock options are, and the difference between call options and put options. You wish to have to become acquainted with option premiums, and their outcomes on the fees of your trades. If you don't know these basic principles, you could never be able to become a successful options trader. There are tons of information regarding these subjects available on the web, just do a search on "online option trading" or "option trading schools" and you could find out tons or results. You could also want to join an option trading forum or newsgroup because well, therefore that you may be able to learn from other options traders. This is often one of the better techniques to learn something new, by having a mentor who has already made it through the mistakes.
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It is better to stick to earlier attempted and true investment moves that do not seem hence unreal that it cannot be true. Well built strategies are put down simply with no false airs or pretenses and really make good economic sense. Always consider the advice given by experts in the field and have excellent success records in the other kinds of markets. Never jump to your own conclusion without paying heed to advice given by experienced gurus.
Study-Learning and studying the stock market mechanism, in place since 1600. Keep under consideration to activate the option "common sense" in your brain! Knowing the basics of reading a balance sheet is important, as well because knowing how to analyze and calculate certain ratios, sort the opinions of analysts, understand what a percentage accurately is and how it works, cash flow, dividends, increase capital, and know how to buy, how to sell, knowing the fees of routing orders... No matter how much you already understand or think you understand, there's always room for improvement!
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Learn how to make cash by trading stocks the easy way. Stock tips & college trains you to trade stocks right to protect your investments.
Retail Industry in India by Jajati Patro
The retail industry in India is emerging to attract new investments in the retail sector in the country.
Bharti Retail Ltd operates about 80 stores and owns a chain of grocery outlets and easyday market hypermarkets to cater to the retail market in India . Owned by billionaire Sunil Mittal's Bharti Group, the company plans to open 140 retail stores in India in 2010, said Raj Jain, managing director of the group's venture with Wal-Mart Stores Inc.
He added that Wal-Mart can open a large number of retail stores in India if the government allows foreign direct investment in the South Asian country's retail industry.
The company awaits policy changes in the retail market in India. The Bharti-Walmart JV runs the BestPrice Modern Wholesale stores to cater to the retail sector in North India. This is a 50:50 cash and carry joint venture between Bharti Enterprises and WalMart. The company will require additional manpower as it plans to open more cash-and-carry stores in the retail sector in the country. At present, it has two stores in India (in Punjab) and employs 450 workers.
The government has been in talks to open the multi-brand retail sector for FDI. At present, up to 51 per cent foreign investment is allowed in single brand retail and 100 per cent FDI in wholesale, but none in multi-brand.
The company has recently launched the second Bharti-Walmart Training Centre in New Delhi by entering into a public-private partnership with the Delhi Government. The centre would enroll up to 2,000 students a year to impart free of cost training in sectors, such as retail, BPOs and hospitality. The centre was inaugurated by Sheila Dikshit, Chief Minister of Delhi and would work to fill up the shortage in skilled workers for organised retail and cash-and-carry stores.
At a recent function, the Daniele Smadja, Head of the Delegation of the EU to India, said "We would like India to further open its economy to EU investments.
Furthermore, Nokia India is focussing on the retail distribution model. It is for the first time the world's largest mobile phone company has initiated a retail distribution model for its services venture.
In yet, another format of the retail market in India, the major retail players proved to be a boon to the small food processing vendors as they helped the latter put in a system which in turn attracted FMCG companies to hire the same vendors on account of quality.
Similarly the retail market in India is foraying into various sectors. Retail in healthcare sector is witnessing an immense interest from private equity investors. The upturn in the retail industry in India is attracting PE investors, gearing them to maximise their profits with the highest deal volumes being in various sectors including retail. According to V Jayasankar, Head, Private Equity, Kotak Investment Banking, "There is high level of interest in the retail sector as it directly feeds on consumption.
Additionally, the airport retail market in India is witnessing a renaissance with the fast pace of development in the expanding airport facilities in the country and the increasing number of passengers. With people on a constant move the target audience is easily available and the round the clock mode of retail sector available on airport gives that strategic advantage to the retail players.
Bharti Retail Ltd operates about 80 stores and owns a chain of grocery outlets and easyday market hypermarkets to cater to the retail market in India . Owned by billionaire Sunil Mittal's Bharti Group, the company plans to open 140 retail stores in India in 2010, said Raj Jain, managing director of the group's venture with Wal-Mart Stores Inc.
He added that Wal-Mart can open a large number of retail stores in India if the government allows foreign direct investment in the South Asian country's retail industry.
The company awaits policy changes in the retail market in India. The Bharti-Walmart JV runs the BestPrice Modern Wholesale stores to cater to the retail sector in North India. This is a 50:50 cash and carry joint venture between Bharti Enterprises and WalMart. The company will require additional manpower as it plans to open more cash-and-carry stores in the retail sector in the country. At present, it has two stores in India (in Punjab) and employs 450 workers.
The government has been in talks to open the multi-brand retail sector for FDI. At present, up to 51 per cent foreign investment is allowed in single brand retail and 100 per cent FDI in wholesale, but none in multi-brand.
The company has recently launched the second Bharti-Walmart Training Centre in New Delhi by entering into a public-private partnership with the Delhi Government. The centre would enroll up to 2,000 students a year to impart free of cost training in sectors, such as retail, BPOs and hospitality. The centre was inaugurated by Sheila Dikshit, Chief Minister of Delhi and would work to fill up the shortage in skilled workers for organised retail and cash-and-carry stores.
At a recent function, the Daniele Smadja, Head of the Delegation of the EU to India, said "We would like India to further open its economy to EU investments.
Furthermore, Nokia India is focussing on the retail distribution model. It is for the first time the world's largest mobile phone company has initiated a retail distribution model for its services venture.
In yet, another format of the retail market in India, the major retail players proved to be a boon to the small food processing vendors as they helped the latter put in a system which in turn attracted FMCG companies to hire the same vendors on account of quality.
Similarly the retail market in India is foraying into various sectors. Retail in healthcare sector is witnessing an immense interest from private equity investors. The upturn in the retail industry in India is attracting PE investors, gearing them to maximise their profits with the highest deal volumes being in various sectors including retail. According to V Jayasankar, Head, Private Equity, Kotak Investment Banking, "There is high level of interest in the retail sector as it directly feeds on consumption.
Additionally, the airport retail market in India is witnessing a renaissance with the fast pace of development in the expanding airport facilities in the country and the increasing number of passengers. With people on a constant move the target audience is easily available and the round the clock mode of retail sector available on airport gives that strategic advantage to the retail players.
Importance of automotive components Industry in India by vineet i
India is one of the most competitive auto parts manufacturers in the world and Indian automotive components are most sought after by international auto majors; since India is the best auto parts supplier who promise to give genuine, hardy and economically priced automotive parts.
The Indian automotive components industry has fast emerged from a supplier of the domestic market only, to one of the central and best auto parts supplier of Asia. Apart from being a significant player in the global automotive supply chain, auto component companies India also supply high-value and sophisticated auto components to renowned auto makers such as General Motors, Toyota, Ford, Volkswagen to name a few.
Most global auto makers purchase Indian auto components to meet the growing demands for hardy and genuine spare parts. According to statistics revealed by the Automotive Component Manufacturers Association of India (ACMA), the estimated turnover of the auto component industry will be around US $19.2 billion, in the year 2009-10. Whereas exports from the auto component companies India will be around US $3.2 billion. The maximum percentage of Indian automotive components is dominated by engine parts that accounts to almost 31%, 19% by drive transmission and steering parts and 12% each by suspension and braking parts and body and chassis respectively. The best auto parts supplier from India covers three main clusters mainly, commercial vehicle suppliers Delhi and NCR regions, Pune and Chennai.
Initiatives of the UNIDO-SPX further helped the Indian Auto component manufacturers to reach out to the global auto majors by organizing noteworthy and useful events such as the Auto Expo 2010 held from 5-11 January 2010 in New Delhi. The UNIDO-SPX India is a technical information and match making centre for industrial subcontracting and supply chain management that helps small and medium sized companies to reach out to the global audience and make a foothold in the international market. Various auto component companies India, especially from the small and medium sectors were immensely benefited from this Auto Expo fair that strengthened their chance of creating tie-ups with big international as well Indian players in the automobile industry. The various delegations from all around the world who were participating in this Auto Expo also got a chance to get into contract with commercial vehicle supplier Delhi & NCR, Pune and Chennai to purchase Indian auto components.
According to the Investment Commission of India, India is among the most competitive manufacturers and best auto parts supplier in the world. More and more international auto component makers including big names like Delphi, Visteon, Bosch and Meritor are interested to purchase Indian auto components and have set up operations in India. Apart from this India is also becoming the main hub for research and development of automotive components with companies like Bosch, Suzuki, Johnson Control etc setting up research and development centers in this country.
ACMA is the main agency for the Indian automotive components industry that helps the auto parts manufacturers to participate in international trade and technology fairs, send delegates abroad, bringing out publications on various automotive industry issues etc. ACMA also helps the auto component companies India to maintain their standard and quality of products and keep themselves upgraded according to international standards.
India is the second largest producer of motorcycles in the world after China. The vast range of vehicles made in India includes;
* Light passenger vehicles including passenger cars, MUV's, SUV's, Commercial vehicles including light commercial vehicles, medium and heavy commercial vehicles and buses,
* Tractors that include earth moving, and construction equipments,
* Two wheelers including motorcycles, scooters, mopeds and
* Three wheelers including passenger carriers and goods carriers.
* Light passenger vehicles including passenger cars, MUV's, SUV's, Commercial vehicles including light commercial vehicles, medium and heavy commercial vehicles and buses,
* Tractors that include earth moving, and construction equipments,
* Two wheelers including motorcycles, scooters, mopeds and
* Three wheelers including passenger carriers and goods carriers.
Monday, May 31, 2010
Tuesday, April 6, 2010
Acquisition/Investment in Indian Companies by Foreign & Domestic Investors - Six Steps Mantra By Seema Jhingan
Acquisition/Investment in Indian Companies by Foreign & Domestic Investors - Six Steps Mantra
Joint ventures, strategic alliances and acquisitions are the flavor of the day that enable fast growth focused companies to have rapid inorganic growth and expansion in new sectors. However, prior to engaging in a joint venture relationship or acquisition of an operating Indian company ("Investee company"), either by way of private placement, or secondary market, or subscription of substantial equity share capital, it is advisable for the Investor to carefully and stringently undertake the following six step mantra to avoid future surprises and heartburns:
(i) Due Diligence/Operations Audit: Extensive legal and financial due diligence of the Investee company is advisable to assess Investee company's track record in compliance with Indian laws, statutory obligations and regulations applicable to it. The due diligence exercise (which usually takes between three (3) to four (4) weeks depending on availability of documents) not only enables the Investor to assess potential liabilities, evaluate unknown and potential, disclosed or undisclosed liabilities but also enables the Investor to assess the feasibility and viability of the proposed acquisition and rationalize enterprise valuation. If required, Investor can demand creation of an escrow account for safe deposit of a part of the acquisition cost, parked for an agreed period to mitigate against any future liabilities of the Investee company.
(ii) Resolution of Preliminary Issues: Preliminary issues, if any, arising pursuant to the conduct of the Due Diligence exercise would need to be resolved and a decision taken whether or not to proceed with the acquisition. For example, whether a change of control would affect the ability of the Investee company to carry on its business operations under the current regulatory framework and the approvals and licenses required. Unresolved issues that are not fatal to the acquisition may be identified and negotiated.
(iii) Regulatory/Pricing/Tax Issues: Identification of regulatory and tax issues that may impact the transaction is critical. In case the Investor is a non-resident, foreign direct investment ("FDI") guidelines will also need to be assessed.
FDI either by way of acquisition/transfer of issued equity capital or fresh subscription to the equity capital of Investee company in most sectors is presently unregulated and most sectors barring a few do not require the FDI approval from the Foreign Investment Promotion Board. However, the price at which the transfer takes place will need to conform to the pricing guidelines prescribed by the Reserve Bank of India ("RBI"), i.e., the fair valuation of shares have been done by a chartered accountant as per the prescribed guidelines; and the price per share arrived at has been certified by a chartered accountant. The share consideration in respect of the shares purchased by Investor will need to be remitted to India through the banks authorized to deal in foreign exchange.
In case of transfer of shares to the Investor the transaction would be subject to levy of stamp duty ranging from 0.25% to 0.75% of the value of the shares transferred and payable in accordance with the applicable rates prescribed by the respective State where is the Investee company is registered. The transferor usually bears the stamp duty for the transfer of shares in the absence of a contract to the contrary. Alternatively, Investor can consider to subscribe to the equity share capital of the Investee Company by way of preferential allotment and avoid the stamp duty payable on transfer of shares.
Capital gains arising from transfer of shares (in the event of an acquisition instead of an issue of fresh equity) would attract tax in the hands of the seller, i.e., the existing shareholder of the Investee Company.
(iv) Contract Documentation Preparation: Upon successful resolution of preliminary issues and an affirmative decision to proceed with the acquisition, parties would need to identify and prepare commercial documentation to record their understanding of the transaction and the manner in which such transactions would be closed.
(v) Closing: A reasonable time frame is agreed within which the share acquisition would be consummated. If Closing is delayed, parties may consider to put documents/consideration money in an escrow pending resolution and satisfaction of the closing conditions.
(vi) Post Acquisition Compliances: This would usually include corporate compliances such registration of the share transfer in the statutory books of Investee Company and intimation of change of control that may be required pursuant to any regulatory approvals and licenses already obtained. For instance, Investee Company will need to inform Registrar of Companies and the RBI about the change in the equity structure of the company.
The risk of acquiring an existing operating company with its past baggage of liabilities versus setting up a new company is a critical question that most Investors face. Needless to say, the cumbersome process of setting up a new company, obtaining necessary authorizations from regulatory authorities for establishing an Indian company and growing a new business is always challenging. It is for this reason that mergers and acquisitions are not only common but the preferred way for expansion and growth in the today's fast growing economies.
Joint ventures, strategic alliances and acquisitions are the flavor of the day that enable fast growth focused companies to have rapid inorganic growth and expansion in new sectors. However, prior to engaging in a joint venture relationship or acquisition of an operating Indian company ("Investee company"), either by way of private placement, or secondary market, or subscription of substantial equity share capital, it is advisable for the Investor to carefully and stringently undertake the following six step mantra to avoid future surprises and heartburns:
(i) Due Diligence/Operations Audit: Extensive legal and financial due diligence of the Investee company is advisable to assess Investee company's track record in compliance with Indian laws, statutory obligations and regulations applicable to it. The due diligence exercise (which usually takes between three (3) to four (4) weeks depending on availability of documents) not only enables the Investor to assess potential liabilities, evaluate unknown and potential, disclosed or undisclosed liabilities but also enables the Investor to assess the feasibility and viability of the proposed acquisition and rationalize enterprise valuation. If required, Investor can demand creation of an escrow account for safe deposit of a part of the acquisition cost, parked for an agreed period to mitigate against any future liabilities of the Investee company.
(ii) Resolution of Preliminary Issues: Preliminary issues, if any, arising pursuant to the conduct of the Due Diligence exercise would need to be resolved and a decision taken whether or not to proceed with the acquisition. For example, whether a change of control would affect the ability of the Investee company to carry on its business operations under the current regulatory framework and the approvals and licenses required. Unresolved issues that are not fatal to the acquisition may be identified and negotiated.
(iii) Regulatory/Pricing/Tax Issues: Identification of regulatory and tax issues that may impact the transaction is critical. In case the Investor is a non-resident, foreign direct investment ("FDI") guidelines will also need to be assessed.
FDI either by way of acquisition/transfer of issued equity capital or fresh subscription to the equity capital of Investee company in most sectors is presently unregulated and most sectors barring a few do not require the FDI approval from the Foreign Investment Promotion Board. However, the price at which the transfer takes place will need to conform to the pricing guidelines prescribed by the Reserve Bank of India ("RBI"), i.e., the fair valuation of shares have been done by a chartered accountant as per the prescribed guidelines; and the price per share arrived at has been certified by a chartered accountant. The share consideration in respect of the shares purchased by Investor will need to be remitted to India through the banks authorized to deal in foreign exchange.
In case of transfer of shares to the Investor the transaction would be subject to levy of stamp duty ranging from 0.25% to 0.75% of the value of the shares transferred and payable in accordance with the applicable rates prescribed by the respective State where is the Investee company is registered. The transferor usually bears the stamp duty for the transfer of shares in the absence of a contract to the contrary. Alternatively, Investor can consider to subscribe to the equity share capital of the Investee Company by way of preferential allotment and avoid the stamp duty payable on transfer of shares.
Capital gains arising from transfer of shares (in the event of an acquisition instead of an issue of fresh equity) would attract tax in the hands of the seller, i.e., the existing shareholder of the Investee Company.
(iv) Contract Documentation Preparation: Upon successful resolution of preliminary issues and an affirmative decision to proceed with the acquisition, parties would need to identify and prepare commercial documentation to record their understanding of the transaction and the manner in which such transactions would be closed.
(v) Closing: A reasonable time frame is agreed within which the share acquisition would be consummated. If Closing is delayed, parties may consider to put documents/consideration money in an escrow pending resolution and satisfaction of the closing conditions.
(vi) Post Acquisition Compliances: This would usually include corporate compliances such registration of the share transfer in the statutory books of Investee Company and intimation of change of control that may be required pursuant to any regulatory approvals and licenses already obtained. For instance, Investee Company will need to inform Registrar of Companies and the RBI about the change in the equity structure of the company.
The risk of acquiring an existing operating company with its past baggage of liabilities versus setting up a new company is a critical question that most Investors face. Needless to say, the cumbersome process of setting up a new company, obtaining necessary authorizations from regulatory authorities for establishing an Indian company and growing a new business is always challenging. It is for this reason that mergers and acquisitions are not only common but the preferred way for expansion and growth in the today's fast growing economies.
| Areas of Practice: Infrastructure, Telecommunications, Power, Mergers/Acquisition, Software/Information Technology, Business Process Outsourcing, Media & Entertainment, Private Equity and Venture Capital, General Corporate and Commercial, International Arbitration. Professional Summary: Seema Jhingan's practice spans over fourteen years during which she has acquired substantial expertise in representing developers, sponsors/lenders, venture capital investors, international corporations, financial institutions, and other strategic investors involved in the establishment, development and financing of major infrastructure and IT projects in India. |  |
Indian Real Estate - Right Place For Your Investment By Amjad Islam Khan
There is a huge rush for investment in real estate in India. The reason behind the huge demand and inflation in real estate price is that India has become a hub for investment for real estate investors throughout the world. In recent years, Indian economy has really boomed and the outside world has appreciated the growth the country has made in every sector. Real estate sector is also one of those important sectors, which has seen growth by leaps and bounds.
It is difficult to determine the correct value of property because there is not a proper procedure that has been put in place in India to assess the value of properties. The price of a property usually depends on its location and the properties that are situated near popular market areas command higher prices as compared to the properties that are not situated near such places. Before purchasing a property in India, one should try to ensure that it is located in the vicinity of important facilities like schools, hospitals and markets, and is also endowed with the basic amenities of water, electricity and excellent roads around the property. Excellent accessibility with the railways, airports and the inter-state bus depots is also a very important condition that should be seen before investing in a residential property.
Before purchasing apartments or flats, you should also see that builders who are registered and have a good reputation building the properties. An investor who invests in a property in India can expect a huge amount of windfall gains if the property prices soar up due to reasons like construction of Metro near the property, inclusion of the property in a Special Economic zone or airport construction near the property. Sometimes, there can be an expected increase in the price of a property when a shopping complex is constructed near it.
The prices of Real Estate are booming in India and the property is available for all kinds of residential investors, right from condomiums and one-bedroom lodgings to lavish 3 bedroom apartments in Gurgaon. There has been a tremendous change in the real estate scenario in India especially in the metropolitan cities with large-scale commercial construction companies coming into the construction business, which are giving a very tough competition to the small-scale local construction agents. The government has also facilitated setting up of (SEZs) Special Economic Zones, IT parks and townships which has led to large scale urbanisation and availability of amazing real estate properties equipped with all the requisite modern facilities.
It is difficult to determine the correct value of property because there is not a proper procedure that has been put in place in India to assess the value of properties. The price of a property usually depends on its location and the properties that are situated near popular market areas command higher prices as compared to the properties that are not situated near such places. Before purchasing a property in India, one should try to ensure that it is located in the vicinity of important facilities like schools, hospitals and markets, and is also endowed with the basic amenities of water, electricity and excellent roads around the property. Excellent accessibility with the railways, airports and the inter-state bus depots is also a very important condition that should be seen before investing in a residential property.
Before purchasing apartments or flats, you should also see that builders who are registered and have a good reputation building the properties. An investor who invests in a property in India can expect a huge amount of windfall gains if the property prices soar up due to reasons like construction of Metro near the property, inclusion of the property in a Special Economic zone or airport construction near the property. Sometimes, there can be an expected increase in the price of a property when a shopping complex is constructed near it.
The prices of Real Estate are booming in India and the property is available for all kinds of residential investors, right from condomiums and one-bedroom lodgings to lavish 3 bedroom apartments in Gurgaon. There has been a tremendous change in the real estate scenario in India especially in the metropolitan cities with large-scale commercial construction companies coming into the construction business, which are giving a very tough competition to the small-scale local construction agents. The government has also facilitated setting up of (SEZs) Special Economic Zones, IT parks and townships which has led to large scale urbanisation and availability of amazing real estate properties equipped with all the requisite modern facilities.
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