Current news & Rumours in the mkt

[praveen taneja]

U.s markets ended higher yesterday on strong corporate results,,, the number of americans filing new claims for unemployment fell to 456,000 last week from a revised 480,000 in the previous week

 

[praveen taneja]

The nominee of a deceased person, and not the heir, has the right to shares after the original shareholder’s death, the Bombay high court has ruled. Dismissing the application of a widow who sought permission to sell shares belonging to her late husband, Justice Roshan Dalvi held that she had no right to do so since she was not the nominee. The nominee was her late husband’s nephew.

 

[praveen taneja]

MUMBAI: Regulators SEBI and IRDA had agreed to settle the issue of jurisdiction over ULIPs mutually at the High Level Coordination Committee (HLCC),
an inter-regulatory body on financial markets, before the conflict snowballed into a full-blown turf war, the Reserve Bank disclosed today.

 

[praveen taneja]

Alert posco raises steel prices by 25% positive for all steel stocks

 

[AW10]

Alert posco raises steel prices by 25% positive for all steel stocks

Praveen, if this is the case, then inflation is ready to shoot further. And I am sure regulators will not like it.

I remember event in past, when Mr. PC (our then Finance minister), called Cement producer association and pushed them to cut prices as a measure to control inflation. And finally that's what happened. Industy can't take Punga with Govt. Result, sell-off in cement stocks..

I am getting a feeling that somethign similar might be on card. Our team of IAS toppers sitting in finance ministry are smart enough to manage inflation by twisting major contributors.

Anyway, lets see what comes next.

 

[RSI]

The nominee of a deceased person, and not the heir, has the right to shares after the original shareholder’s death, the Bombay high court has ruled. Dismissing the application of a widow who sought permission to sell shares belonging to her late husband, Justice Roshan Dalvi held that she had no right to do so since she was not the nominee. The nominee was her late husband’s nephew.

Firstly, I have not read the judgment referred in your post. But what is posted above shows only one portion of the picture.

The following is the correct position: -

1. Though nominees is entitled to receive the assets of the deceased, nominee stands in a fiduciary position to the legal heirs. He is holding the assets of the deceased as a trustee for the legal heirs. In simple terms, the asset does not belong to him nor can he misappropriate it. He is accountable to the legal heirs. If he disposes off the shares, he is liable to pay the entire amount to the legal heirs in proportion to their shares in the assets inherited by them from the deceased. If there is any malafide intention in the action of the nominee (in disposing off the assets of the deceased) he is liable for losses also. As I said earlier, nominee is holding only as a trustee of the legal heirs of the deceased. Here again one more clarification is required. A nominee is entitled to receive only that assets in respect of which the deceased has nominated him during his lifetime. For example, if the deceased had ten deposits and if he has nominated one person in respect of only four out of those ten deposits, the nominee can receive only those four deposits. If other six deposits or any of those remaining six deposits are paid to the nominee, bank will be held personally liable to the legal heirs of the deceased.

2. Then a question may arise, why should a person nominate another? This is essential because as far as the bank/company is concerned, it is absolved from its liability (to pay the assets/deposit/dividend etc. to the deceased) fully and completely if it pays to the nominee. That avoids headaches to these institutions from searching the leagal heirs of the deceased and then paying them. The institutions are also saved from the interse disputes of the legal heirs about sharing the assets of the deceased. Further, if a person has given nomination, then lot of paper works can be eliminated before making payment, which are not only expensive but also very time consuming.


I hope this helps
R. S. Iyer

 

[praveen taneja]

Praveen, if this is the case, then inflation is ready to shoot further. And I am sure regulators will not like it.

I remember event in past, when Mr. PC (our then Finance minister), called Cement producer association and pushed them to cut prices as a measure to control inflation. And finally that's what happened. Industy can't take Punga with Govt. Result, sell-off in cement stocks..

I am getting a feeling that somethign similar might be on card. Our team of IAS toppers sitting in finance ministry are smart enough to manage inflation by twisting major contributors.

Anyway, lets see what comes next.

Metal Cartel is far more stronger then poor cement manufacturer as It involve MNC too:clap::clap:

 

[praveen taneja]

Minimum 25 % public holding for listed companies

The finance ministry is likely to prescribe the minimum 25 per cent public holding for listed companies next month. Official sources told that a notification to this effect is likely to be issued next month by the ministry. While all future public issues will have to abide by 25 per cent criteria, the existing listed companies may be asked to follow the rules in stages.

 

[praveen taneja]

Reliance Industries


Current market price: Rs1,087

Q4FY2010 results

Result highlights

Reliance Industries Ltd (RIL)?s Q4FY2010 adjusted net income grew by 29.9% year on year (yoy) to Rs4,710 crore, which is significantly below our and the street?s estimates. This is due to a lower-than-anticipated margin in oil & gas segment (on account of a higher-than-expected depletion rate for KG D-6 block) and a lower-than-expected gross refining margin (GRM) of USD7.5 per barrel for the refining business. However, at operating level, the performance was much better and only marginally below the expectations. A large part of the swing in the net profit is contributed by a sudden jump in the depreciation charge to Rs3,392 crore in Q4FY2010 versus Rs2,795 crore in Q3FY2010.
The net sales grew by a phenomenal 120.7% yoy to Rs57,570 crore in the quarter mainly due to higher volumes on the back of commencement of its new Jamnagar refinery and the production of gas at Krishna-Godavari (KG) D-6 block. The revenues from the petrochemical business grew by 59% yoy while that from the refining segment increased by a strong 165% yoy. The revenues from the oil & gas segment surged by a sterling 487% yoy in the quarter.
The operating profit margin (OPM) shrunk by 601 basis points yoy to 15.9% in Q4FY2010 mainly on the back of a decline in the GRM to USD7.5 per barrel in Q4FY2010 from USD9.9 per barrel in Q4FY2009. The margin was also impacted by a decline in the profitability of the oil & gas business. The operating profit went up by 60.1% yoy to Rs9,136 crore in the quarter. In terms of segments:
The margin of the petrochemical division contracted by 326 basis points on a year-on-year (y-o-y) basis to 14.4%. The same on a sequential basis, however, improved by 45 basis points led by higher prices and slower rise in input cost.
The margin of the refining division plunged by a sharp 694 basis points on a y-o-y basis to 3.9% in the quarter due to a decline in the GRM to USD7.5 per barrel in Q4FY2010 from USD9.9 per barrel in Q4FY2009. The same (the margin) however increased by 100 basis points on a sequential basis on the back of improvement in the GRM from USD5.9 per barrel in Q3FY2010.
The margin of the exploration and production division contracted by a sharp 2,458 basis points on a y-o-y basis to 39.4% due to a higher depletion rate for KG D-6 block. The same on a sequential basis however shrunk by 242 basis points.
In spite of a 135% y-o-y increase in the depreciation charge (due to commencement of KG D-6 project and the merger of Reliance Petroleum with RIL), a 39.7% y-o-y decline in the other income and a higher effective income tax rate, the adjusted net income grew by 29.9% yoy to Rs4,710 crore in the quarter.
In terms of financial health, the company?s debt as on March 31, 2010 stood at Rs62,495 crore as compared to Rs73,904 crore in March 31, 2009. The cash and cash equivalents stood at Rs21,874 crore as on March 31, 2010. As a result, the net debt stood at Rs40,621 crore as on March 31, 2010.
RIL ramped up gas production in KG D-6 block to 60 million standard cubic meter per day (mmscmd) in Q4FY2010. The company has said that the design capacity of KG D-6 gas production facilities has achieved a flow rate of 80mmscmd.
In a thrust to its overseas expansion plans, RIL has closed the joint venture transaction with US-based Atlas Energy involving Marcellus Shale?s gas assets in the USA. RIL will acquire a 40% interest in around 300,000 acre (120,000 acre net to RIL) of undeveloped leasehold held by Atlas Energy in the Marcellus Shale leasehold. The acreage holds a net resource potential of around 13.3 trillion cubic feet (tcf; 5.3tcf net to RIL). The total acquisition cost for RIL stands at USD1.7 billion.
Currently, the stock is trading at 13xFY2012 earnings estimate and an enterprise value (EV)/earnings before interest, depreciation, tax and amortisation (EBIDTA) of 7.2x. One can keep an eye on RIL for tgt of 1200+

 

[praveen taneja]

Corporate News Headline
• Wipro Limited has posted 21% increase in net profit to Rs. 12.09 bn for the fourth quarter of last fiscal as compared to corresponding previous year period. (BS)
• ABG Shipyard secured order worth Rs. 3.85 bn for constructing three cement carriers of 20,000 DWT from Associated Bulk Carriers Pte, Singapore. (BS)
• Reliance Industries' daily crude oil imports fell nearly by a quarter in March from February, its second straight monthly fall ahead of the planned shutdown of a secondary unit in May. (BS)