Sensex tumbles nearly 300 points on Wipro issue

Mumbai: The Bombay Stock Exchange benchmark Sensex on Monday tumbled nearly 300 points, the third time in a row, on aggressive selling by funds, weak opening in European stock markets, and the World Bank debarring more software companies, including Wipro, till 2011.

The Sensex, which had been falling in the last two trading sessions after the Satyam Computer fraud came to light, fell further by 296.42 points at 9,110.05. It touched the day's low of 9,024.45 and a high of 9,331.13 points.

The 50-share National Stock Exchange index Nifty fell 99.90 points at 2,773.10, after touching a low of 2,748.55.

Wipro, the third software producer and a component of the key index, fell 12 per cent soon after the World Bank barred the company from direct contracts until 2011, citing a conflict of interest.

The stock ended with a fall of Rs 23.30 at Rs 227.35. The market briefly pared losses after industrial output data were unexpectedly better for November, but there was little support forthcoming with many uncertainties clouding the outlook of corporate earnings by blue-chip companies.

Trading sentiment further weakened after the European stock markets commenced trading on a weak note, concerned about the quarterly earnings.

Satyam Computer, the fourth-largest software developer, which sparked selling two days ago on its confession of financial wrong-doing, rebounded after the government injected three new board members. The stock rose by Rs 10.55 at Rs 34.40.

Source: http://www.mid-day.com/news/2009/jan/120109-Sensex-tumbles-nearly-300-points-on-Wipro-issue.htm

US stocks dip amid fears of poor economy

New York: Wall Street extended last week's slide as investors worried that the quarterly results companies begin releasing this week will signal the economy is in worse shape than feared.

According to preliminary calculations, the Dow Jones industrial average at its closing yesterday fell 125.21, or 1.46 per cent, to 8,473.97.

Broader stock indicators also declined. The Standard & Poor's 500 index fell 20.09, or 2.26 per cent, to 870.26, and the Nasdaq composite index fell 32.80, or 2.09 per cent, to 1,538.79.

The Russell 2000 index of smaller companies fell 12.50, or 2.60 per cent, to 468.80.

Declining issues outpaced advancers by nearly 4 to 1 on the New York Stock Exchange, where volume came to 1.31 billion shares compared with 1.16 billion traded Friday.

Oil prices helped fuel the pessimism, tumbling 8 per cent to a new low for the year as investors bet economic weakness would curb demand.

Wall Street normally welcomes falling oil as a boost for consumers who pay less to put gas in their car, but steep drops can touch off deeper fears about the overall economy.

Source: www.mid-day.com

Polls to seven RS seats in J&K, Kerala on Feb 13

New Delhi: The Election Commission will hold biennial elections on February 13 to seven Rajya Sabha seats, including those held by Union Ministers Vayalar Ravi and Saif-ud-Din Soz as also National Conference leader Farooq Abdullah.

Elections would be held for four seats in Jammu and Kashmir and three in Kerala. Besides the seats held by Soz and Abdullah, two other seats became vacant in J&K following retirement of S Tarlok Singh and Chowdhary Mohammad Aslam in November last.

Elections to these four seats could not be held earlier due to non-existence of Assembly in the state. Assembly polls in the state were completed last month.

Besides Ravi, the tenure of Teennala G Balakrishna Pillai (Congress) and K Chandran Pillai (CPI-M) in Kerala was to expire on April next.

According to the schedule announced by the EC, the notifications would be issued on January 27.

Last date for making nominations would be on February 3 and the scrutiny would take place the following day. Last date for withdrawal of candidature would be on February 6.

Counting of votes would take place in the evening on February 13, the day of polling.
Source: www.mid-day.com

Govt may provide financial support to Satyam

New Delhi: The Central government's help to the crisis-ridden Satyam Computer Services may include financial support as well, as it is a question of saving jobs and institutional investment, Commerce and Industry Minister Kamal Nath said.


He said the government will consider 'all aspects' in helping the troubled IT company, "once it receives firm proposals from the newly constituted board".


Yesterday, the government constituted a three-member board comprising noted banker Deepak Parekh, IT expert Kiran Karnik and ex-SEBI member C Achutan.


More appointments have been made today. According to the Company Law Board's order, the reconstituted board of the IT major can have a maximum of 10 members.


The government on Friday sacked the board of Satyam a few days after its founder-chairman B Ramalinga Raju admitted to a Rs 7,800-crore fraud in the books of accounts of the IT company.


When asked whether the government will consider financial help, Nath said, "Of course. There are many jobs at stake and institutional stakes."


He said now it was up to the board to come up with proposals.


Board to bring in new mgmt; address liquidity crisis
Swinging into action on the very first day of taking charge of the scam-tainted Satyam, its new board today announced that top management would be changed and every effort made to address the prime concern of liquidity, including asking main clients to make advance payments.


Announcing the decisions taken at the meeting of the three-member board constituted by the government, member Deepak Parekh said new CEO and CFO would be appointed, while government would soon fill up vacancies at the board that would later elect a chairman.


The board would ask the clients to pay advance against dues to tide over immediate liquidity needs. Noting that there was a large number of receivables - payments due from clients - Parekh said: "If (the receivables) come on time liquidity will be sufficient. But these need to be authenticated...


"Most of the clients are 'AAA' (top investment grade rated). So we can ask them for advance against receivables," Parekh said and added that the board has identified two independent accounting firms and they are likely to make their proposals on Tuesday.


Within 48 hours, a new independent accounting firm will be in place to look at the third quarter financial performance of the company, for announcement of which the board is seeking extension beyond scheduled January 16.


"Working capital needs immediate attention," Parekh said, but added that the board has not yet determined the amount of liquidity that is required.


Asked whether the new CEO and CFO would be from the internal team, Parekh said he hoped that in the next few weeks the board would find someone. But given the situation it would be difficult to find willing candidates.

Source: www.mid-day.com

NC is ready to drop autonomy demand: Farooq

SRINAGAR: National Conference patron and former J&K CM Farooq Abdullah on Monday said his party is ready to drop its autonomy demand provided a solution, acceptable to the state's people, is found.

"We believe autonomy is the only solution but if there is a better solution acceptable to the people, the party will be first to endorse it," he said.

Farooq maintained the issue could be solved only when "Kashmiris' voice is heard".

"If a lasting solution is to be found, then talks should be held with all groups without which the whole exercise is futile," he said.

He said a solution is unthinkable without Hurriyat's participation.

Source: http://timesofindia.indiatimes.com/I_blindly_signed_on_papers_given_by_team_Vadlamani/articleshow/3964749.cms

NC is ready to drop autonomy demand: Farooq

SRINAGAR: National Conference patron and former J&K CM Farooq Abdullah on Monday said his party is ready to drop its autonomy demand provided a solution, acceptable to the state's people, is found.

"We believe autonomy is the only solution but if there is a better solution acceptable to the people, the party will be first to endorse it," he said.

Farooq maintained the issue could be solved only when "Kashmiris' voice is heard".

"If a lasting solution is to be found, then talks should be held with all groups without which the whole exercise is futile," he said.

He said a solution is unthinkable without Hurriyat's participation.

Source: http://timesofindia.indiatimes.com/I_blindly_signed_on_papers_given_by_team_Vadlamani/articleshow/3964749.cms

Energy sector could be sabotage target: Pranab

NEW DELHI: Describing the Mumbai terrorist strikes as a direct attack on Indian's economic development, External Affairs Minister Pranab Mukherjee on Monday said the energy sector could increasingly become a target for sabotage and urged the industry to ensure safety and security of infrastructure.

"This unpardonable criminal attack only underscores the risk all countries face from economic sabotage, irrespective of whether these acts are authored by states or merely carried out by so-called non-state actors," Mukherjee said, referring to the Mumbai carnage.

He was speaking at the inauguration of Petrotech 2009, the eighth international oil and gas exhibition in New Delhi. Mukherjee pointed out that the global hydrocarbons sector "would increasingly be even more vulnerable to such threats".

Source: http://timesofindia.indiatimes.com/India/articlelist/-2128936835.cms

Broadcasters write to PM over curbs

NEW DELHI: Concerned over the government's attempt to gag the electronic media, broadcasters have sought time with PM Manmohan Singh, in an effort to convince him to drop the proposed amendments to the Cable Network Regulations (CNR) Act.

The I&B ministry has recommended changes in the law to allow government to dictate television coverage during designated emergencies. The proposal is also to make it mandatory of channels to carry authorized video footage, ostensibly on grounds of "public interest".

In a letter to the PM — who currently holds charge of the I&B ministry — leading broadcasters have pointed out that the proposed measures were nothing short of a gag. Television channel representatives say introducing these "draconian measures" would bring back days of media blackouts experienced during Emergency.

The editors said that they believed their role as a watchdog for society would be severely compromised if government-mandated regulation was brought about.

The communication also points out that the broadcasters were aware of their responsibilities in upholding highest standards of ethics and national interest. Hinting at the self-regulation guidelines that have been formed and accepted by all members of the News Broadcasters Association the editors have said that media fraternity had made significant movement in that direction.

The role played by broadcasters has come in for criticism after the Mumbai terror attacks on November 26. The I&B ministry received complaints from security agencies and various arms of the defence forces were vociferous in their criticism over television news coverage. Some sections felt that the channels had been responsible in compromising the rescue operation.

Broadcasters have, however, steadfastly maintained that in the absence of clear instructions and official source of information on the rescue operation, there were mistakes on both sides. While there should be proper guidelines that would check the kind of mistakes made, the answer did not lie in curbing media freedom.

Source: http://timesofindia.indiatimes.com/India/Broadcasters_write_to_PM_over_curbs/articleshow/3970693.cms

'Gifts' to docs: Govt to meet drug cos

NEW DELHI: Drug companies, that have been doling out freebies and sponsoring jaunts of doctors, may face problems with the government now stepping in to find ways to curb "unethical trade practices". In a first-ever instance, the government is meeting drug companies on Tuesday to find a mechanism to limit sales promotional expenses, which include gifts in cash or kind to doctors.

"Drug companies need to limit promotional expenses and in certain cases unethical trade practices, which jack up prices of medicines for consumers. We need to have a proper mechanism in place, and see if it is being enforced", official sources said.

Major companies including Ranbaxy, Pfizer, Cipla and Sun Pharma, and all industry bodies like Indian Pharmaceutical Alliance (IPA), Organisation of Pharmaceutical Producers of India (OPPI), Indian Drug Manufacturers Association and Confederation of Indian Pharma Industry are expected to be part of the exercise.

Companies dole out huge amounts in the form of freebies, gifts, jaunts to promote drugs so that doctors prescribe their use to patients. These promotional costs form a huge component in the price of a drug. Promotional expenses also include trade margins, which the government has been trying to cap for sometime now. There are certain drugs sold in the market on which margins may be levied by retailers and wholesalers between 5 to 1000%, leading to a mark-up on prices. A medicine crosses different layers and sub-layers in the trade before it reaches a consumer.

So if the manufacturing cost of a medicine strip is Rs 2, may be sold at Rs 50 in the market. The government plans to evolve a mechanism to limit these expenses, see that the code of ethics is implemented by companies and reviewed by external agencies, sources said. The move comes even as several countries are already brought in legislation to curb unethical promotional expenses, which may influence doctors in their prescriptions.

Though there is a code of ethics for companies to follow, only a few are following them. Industry body, OPPI had devised a code of conduct nearly two years back which lays down clear guidelines on travel, international events, company sponsorships, entertainment expenses and gifts.

Source: http://timesofindia.indiatimes.com/India/Gifts_to_docs_Govt_to_meet_drug_cos_/articleshow/3970694.cms

Indian airports world's most-delayed: Forbes

New York: An extra travel time needs to be budgeted to fly to India from overseas, with Indian airports emerging as the world's most-delayed airports with most frequent late arrivals into the country in 2008, according to US magazine Forbes.

Country's financial hub Mumbai's Chhatrapati Shivaji International and national capital's Indira Gandhi International (IGI) airports have grabbed the first and second ranks in terms of late arrivals in the world's most-delayed airports list compiled by Forbes.

"India takes the prize as the country with most frequent late arrivals in our second annual tallying of the world's most-delayed airports," Forbes said in its latest report.

Topping the list of the world's most-delayed airport for the second year in a row, Mumbai's international airport, saw just 49.95 per cent of on-time arrivals.

While about 58 per cent of its late arrivals in 2008 were delayed by 30 minutes or more, the report said.

At New Delhi's IGI airport, the percentage of on-time arrivals is 50.89 per cent in 2008 and had seen 23.3 million passengers in previous year, based on data from FlightStats, which tracks historical and real-time flight information, Forbes said.

The report stated that India was a peculiar case as its biggest airports have undertaken massive construction projects to cope with the country's rapid growth.

The most-delayed airport, Mumbai's Chhatrapati Shivaji International, opened a new taxiway in November to reduce the wait time for landing aircraft, while New Delhi's IGI Airport fully opened a third runway in October.

Bengaluru International has been ranked at the fourth place in top five in the list with on-time arrivals of 60.16 per cent.

Quoting a spokesperson of Bengaluru International Airport, Forbes said that delayed arrivals in India were largely attributed to air congestion at a flight's origin.

"There (Bengaluru International), 80 per cent of departures were on time in 2008, yet just 60 per cent of flights arrived as scheduled," the spokesperson told Forbes.

The difference between the departures and arrivals is because the faster runway exits and improved efficiency at the new airport give a boost to the percentage of flights departing on time.

Further, high on the Forbes list of airports with the lowest percentage of on-time arrivals are – Casablanca's Mohammed V International Airport (54 per cent on time), Orio al Serio Airport near Bergamo, Italy (61 per cent), New York LaGuardia (62 per cent), Birmingham Airport in England (63 per cent) and London's Luton and Heathrow Airports (both 63 per cent on time).

Besides, a host of European airports are among those on top of the list with delayed departures, they include -Manchester Airport in northern England (49 per cent on time), Venice's Marco Polo International (54 per cent), Rome's Fiumicino International (58 per cent), Athens International (61 per cent) and Paris' Charles DeGaulle International (62 per cent on-time).

Source: www.mid-day.com

Sensex tumbles over 382 pts in pre-close trade

The Bombay Stock Exchange benchmark Sensex tumbled by over 382 points in pre-close trading on Monday on heavy selling by funds amid the World Bank barring Wipro and Megasoft from doing any businesses with it till 2011.

The 30-share Sensex, which continued to fall after the Satyam scandal, moved down further by 382.02 points at 9,024.45 at 1500 hrs on heavy selling by funds in metal, realty and software companies.

While the controversial Satyam Computer recorded fresh gains, Wipro stocks dropped 9.7 per cent, the most in almost three months, after the disclosure that the World Bank has barred the software firm from doing any businesses with it.

Infosys Technologies, a biggest technology company by market value and heaviest on the Sensex, fell 3.3 per cent to its lowest in a month.

The wide-based National Stock Exchange index Nifty also fell by 124.45 points at 2748.55 at the same time.

Source: http://www.hindustantimes.com/StoryPage/StoryPage.aspx?sectionName=BusinessSectionPage&id=fbb547c4-2962-4876-827c-1fee41e9d5bc&&Headline=Sensex+tumbles+over+382+pts+in+pre-close+trade

PM, Karzai demand disallowing of sanctuaries to terror

Against the backdrop of Mumbai attacks, Afghanistan on Monday joined India in demanding that no country should allow terrorism to emanate from its territories, in an apparent reference to Pakistan.

Prime Minister Manmohan Singh and Afghan President Hamid Karzai, who discussed the Mumbai attacks in New Delhi, said the incident shows that terrorism poses a threat to the entire humanity and all countries should fulfil their bilateral and multilateral obligations to prevent the scourge.

"The leaders called for full compliance with bilateral, multilateral and international obligations of states to prevent terrorism in any manner originating from territories under their control since terrorism emanates from the sanctuaries and training camps and the sustenance and support received by the terrorist groups," a joint statement issued after the talks said.

Though the statement did not name Pakistan, the reference was obviously to it as both India and Afghanistan are affected by terrorism emanating from the common neighbour's soil. Both India and Afghanistan have been complaining about terrorism in their countries getting sanctuary and support in Pakistan.

During the talks, the Indian side shared with Karzai details of probe into Mumbai attacks which clearly point to Pakistani linkages.

Karzai, who undertook the two-day visit here to show solidarity with India in the wake of Mumbai attacks, discussed with Singh ways to forge greater cooperation to defeat terrorism

Source: http://www.hindustantimes.com/StoryPage/StoryPage.aspx?sectionName=IndiaSectionPage&id=75f54ef0-1fed-4ad2-a720-2fe4c169fad7&&Headline=PM%2c+Karzai+demand+disallowing+of+sanctuaries+to+terror

SEBI chief meets PM over Satyam scam

NEW DELHI: SEBI Chairman C B Bhave on Monday met Prime Minister Manmohan Singh and is believed to have briefed him about the latest developments on scam-tainted Satyam, which is the subject of a probe by the market regulator.

Bhave, however, could not be contacted immediately for comments on the deliberations he had with Singh.

The Securities and Exchange Board chairman, Bhave, had started a series of meetings in New Delhi from Saturday when he met Corporate Affairs Minister Prem Chand Gupta and his Secretary Anurag Goel.

The meeting comes in the wake of a coordinated probe by the Andhra Pradesh CID, SEBI, Serious Fraud Investigation Office (SFIO) and the Registrar of Companies.

SEBI had also approached the court seeking permission to question the disgraced founder of Satyam, Ramalinga Raju, but the application was deferred till January 16 after Raju's lawyer sought time to file a counter petition.

Source: http://economictimes.indiatimes.com/articleshow/3967364.cms

Fuel price cuts likely in 10 days: Patel

NEW DELHI: Retail fuel prices are likely to be cut in the next 10 days, but the quantum of reduction would be decided after consultations with the finance ministry, Minister of State for Petroleum Dinsha Patel said on Monday.

"We have to reduce the prices and we will do it. It will happen in 10 days as some consultations with finance ministry are needed. Middle-class and farmers have to be given relief... how much is to be decided at the appropriate level of the Cabinet," he told reporters on the sidelines of the Petrotech conference here.

Petrol and diesel prices were cut only in December by Rs 5 a litre and Rs 2 per litre, respectively, as global crude prices fell to four-year lows.

International oil prices have been hovering at that level for a while and have prompted the government to think of another round of price reduction.

"We will do it as early as possible. We will give maximum relief to farmers and middle-class," Patel said.

Petroleum Minister Murli Deora had said in Mumbai on Saturday that petrol, diesel and LPG (cooking gas) prices could be reduced by Rs 5 a litre, Rs 3 a litre and Rs 25 a cylinder, respectively.

Source: http://economictimes.indiatimes.com/Economy/Fuel_price_cuts_likely_in_10_days/articleshow/3966745.cms

Asia stocks dip with no signs to end of slowdown

HONG KONG: Asian stocks slipped for a fourth consecutive session and the yen climbed against the euro on Monday, as a relentless global economic slowdown renewed invester caution about taking on risk.

Friday's December U.S. payrolls report, which showed more than half a million jobs lost and the highest unemployment rate since 1993, aggravated anxieties that consumer demand for Asian exports is nowhere near recovering, keeping oil prices near $40 a barrel.

"The negativity still sits in the market, nothing's really changed in 2009," said Dominic Vaughan, senior dealer at CMC Markets in Australia. "In the next three to six months we've still got difficult times ahead for commodity markets and global markets as well," he said.

The MSCI index of stocks in the Asia-Pacific region outside Japan fell 1.1 percent, down for a fourth day after a rally that lifted the gauge to a one-month high fizzled last week.

Japan's markets were closed for a public holiday. Australia's benchmark S&P/ASX 200 index led the region lower, falling 1.6 percent. A steady drumbeat of dour global economic data has darkened the outlook on demand for industrial materials, weighing on shares of global miners such as BHP Billiton Ltd.

The euro was under broad pressure ahead of a European Central Bank policy meeting on Thursday, at which policymakers were expected to cut rates by a half-percentage point to 2 percent.

A collapse in the European manufacturing sector as well as the increased risk of sovereign debt rating downgrades in Europe put pressure on the ECB to cut rates and catch up with other major central banks. The Bank of England has cut borrowing costs to a record low and the Federal Reserve has set rates within a negligible range of zero to 0.25 percent.

The euro fell 0.4 percent against the U.S. dollar to $1.3422. Against the yen, the euro was down 0.4 percent to 121.01 after an aggressive selloff on Friday.

The U.S. dollar was trading largely unchanged at 90.15 yen, as the need for safety increased demand for both currencies.

Aluminium producer Alcoa will report its results later on Monday, kicking off the earnings season. Investors will be wary of any reason for analysts to cut their U.S. earnings expectations, which could kill off the past month's rally into stocks, commodities and emerging markets.

Last week, capital slowly flowed back into riskier assets, though investor caution after such a devasting 2008 also kept money market funds absorbing fresh investment.

Corporate bonds have seen heavy demand in the last week as hunger for yield and bargain hunting drove portfolio managers out from the sidelines. High yield bond funds took in $910.9 million in new investment last week, the highest weekly inflow since Boston-based research firm EPFR Global began to track the data in four years ago.

"The winning run by High Yield Bond Funds has been driven by a combination of gradually rising risk appetite, a hunger for yield, short covering and the quality of some debt that has dropped into the high yield/junk pool in recent months," said Brad Durham, EPFR Global managing director in a note.

The yield on the benchmark 10-year U.S. Treasury note was up a touch to 2.41 percent from 2.39 percent late on Friday in New York, when the U.S. payrolls report caused a rush to safety.

The jobs data also hit a nerve in commodity markets. U.S. light crude for February delivery edged down 32 cents to $40.51 a barrel, flirting with a sustained drop below the psychologically important $40 level.

News that OPEC kingpin Saudi Arabia plans to cut oil output to below its agreed target for the cartel, ongoing supply disruptions in Europe from the Russia-Ukraine gas dispute and tensions in the Middle East did little to sway the market from a focus on dwindling world-wide energy demand.

Source: http://economictimes.indiatimes.com/Market_News/Asia_stocks_dip/articleshow/3966055.cms

Industrial growth recovers in Nov at 2.4%

NEW DELHI: After turning negative for the first time in 15 years in October 2008, industrial growth turned positive again, clocking 2.4% in
November, despite the continuing global crisis, prompting analysts to say that "the worst is over" on the industrial front.

Industrial production, however, lagged behind the 4.9% recorded in the same month last year, but was encouraging in the context of poor infrastructure growth and the dismal performance of exports and the auto sector in November.

Manufacturing, having a weight of around 80% in the Index of Industrial Production (IIP), grew by 2.4% in November against 4.7% a year ago.

Industrial production figures were revised up to (-)0.3% for October from (-)0.4% estimated earlier. Industrial production had contracted in October, for the first time in 15 years.

Commenting on the industrial growth numbers, the Prime Minister's Economic Advisory Council Chairman, Suresh Tendulkar, said, "The numbers are above my expectations and in the coming days, I expect (them) to improve more."

He said a bulk of the rural market has not been affected by the global crisis and it was only the urban population that was not spending.

For the first eight months of this fiscal, industrial production grew by 3.9% against 9.2% in the year-ago period.

Industrial production numbers were quite substantial as six infrastructure industries, which comprise more than one-fourth of the industrial data, could manage to grow only by 2.2% in November from 3.4% in October.

Source: http://timesofindia.indiatimes.com/Business/Industrial_growth_recovers_in_Nov_at_24/articleshow/3967415.cms

Satyam's new board meets, likely to elect chairman

HYDERABAD: Satyam's three-member board constituted by the government on Sunday met for the first time on Monday to discuss ways to get the IT company back on track.

Eminent banker Deepak Parekh, IT expert Kiran Karnik and former SEBI member C Achuthan arrived at the Infocity campus of Satyam for the meeting, in which the chairman of the board is expected to be elected, PTI reported.

The board members are likely to meet the press in the evening.

Ramalinga Raju's bail plea hearing has been postponed till January 16.

Meanwhile, Times now reported, Raju has confessed to Andhra Pradesh police that the unexpected downturn led to Maytas deal.

Raju in his confession said the manipulation of accounts went on for seven years. The margin amounts were shown increased each year, he said.

"I did not bribe anybody", said the disgraced chairman. “I manipulated the accounts for more business" he added.

Sebi has also sought permission to record Raju's statement.

In its first meeting, the board is likely to elect Deepak Parekh as its chairman. It is learnt that the government has already sounded the members about Parekh as chairman. The other members will be appointed by the government with the consultation of the chairman and other appointed board members.

Parekh on Sunday said the first task of the board is to restore confidence in the clients and investors to continue business with Satyam.

At present, Satyam has no cash reserves, despite the fact that the balance sheet prepared on March 31, 2008, shows a cash reserve of Rs 5,700 crore. To ensure smooth functioning of the company, a senior official said the company would require a new management, which could be trusted by clients and lenders, who have stopped giving Satyam money after the revelation of accounting fraud.

According to sources, interim CEO Ram Mynampati may be sacked. Government has criticized his role as a director, in its application to the Company Law Board (CLB), where it had sought permission to sack the earlier board.

While it's unlikely that the new board will continue with Mynampati as CEO, at the same time, it will have to ensure that the new CEO must be aware of the functioning of the Satyam, having over 500 clients.

Parekh will also discuss availability of working capital for the company as it is facing acute financial crunch. It immediately needs credit from banks to continue operation. Because of fraud fiasco, banks are not ready to lend the company against receivables as collateral, saying it is very difficult to believe on the company's statement as its balance sheet is under cloud.

Sources said that the board may decide to offer a seat to a bank, which will give it working capital. The board seat will give the bank inside information of its functioning and financial condition.

The board may also discuss appointment of remaining members. The government had sought permission from CLB to appoint 10 members, though it may not take the strength to 10. A senior official said the final number could be kept at five or seven.

The source added that as a first step, the government restricted itself to appointment of three members only, to avoid any clash of personality, which is crucial for smooth functioning of the board. So, government decided to select a core team first and later expand it. Some representation on the board could be given to institutional investors like Life Insurance Corporation. HYDERABAD: Satyam's three-member board constituted by the government on Sunday met for the first time on Monday to discuss ways to get the IT
company back on track. ( Watch )

Eminent banker Deepak Parekh, IT expert Kiran Karnik and former SEBI member C Achuthan arrived at the Infocity campus of Satyam for the meeting, in which the chairman of the board is expected to be elected, PTI reported.

The board members are likely to meet the press in the evening.

Ramalinga Raju's bail plea hearing has been postponed till January 16.

Meanwhile, Times now reported, Raju has confessed to Andhra Pradesh police that the unexpected downturn led to Maytas deal.

Raju in his confession said the manipulation of accounts went on for seven years. The margin amounts were shown increased each year, he said.

"I did not bribe anybody", said the disgraced chairman. “I manipulated the accounts for more business" he added.

Sebi has also sought permission to record Raju's statement.

In its first meeting, the board is likely to elect Deepak Parekh as its chairman. It is learnt that the government has already sounded the members about Parekh as chairman. The other members will be appointed by the government with the consultation of the chairman and other appointed board members.

Parekh on Sunday said the first task of the board is to restore confidence in the clients and investors to continue business with Satyam.

At present, Satyam has no cash reserves, despite the fact that the balance sheet prepared on March 31, 2008, shows a cash reserve of Rs 5,700 crore. To ensure smooth functioning of the company, a senior official said the company would require a new management, which could be trusted by clients and lenders, who have stopped giving Satyam money after the revelation of accounting fraud.

According to sources, interim CEO Ram Mynampati may be sacked. Government has criticized his role as a director, in its application to the Company Law Board (CLB), where it had sought permission to sack the earlier board.

While it's unlikely that the new board will continue with Mynampati as CEO, at the same time, it will have to ensure that the new CEO must be aware of the functioning of the Satyam, having over 500 clients.

Parekh will also discuss availability of working capital for the company as it is facing acute financial crunch. It immediately needs credit from banks to continue operation. Because of fraud fiasco, banks are not ready to lend the company against receivables as collateral, saying it is very difficult to believe on the company's statement as its balance sheet is under cloud.

Sources said that the board may decide to offer a seat to a bank, which will give it working capital. The board seat will give the bank inside information of its functioning and financial condition.

The board may also discuss appointment of remaining members. The government had sought permission from CLB to appoint 10 members, though it may not take the strength to 10. A senior official said the final number could be kept at five or seven.

The source added that as a first step, the government restricted itself to appointment of three members only, to avoid any clash of personality, which is crucial for smooth functioning of the board. So, government decided to select a core team first and later expand it. Some representation on the board could be given to institutional investors like Life Insurance Corporation.

Source: http://timesofindia.indiatimes.com/Business/India_Business/New_board_meets_likely_to_elect_Deepak_Parekh_as_chairman/articleshow/3966656.cms

Satyam's new board meets, likely to elect chairman

HYDERABAD: Satyam's three-member board constituted by the government on Sunday met for the first time on Monday to discuss ways to get the IT company back on track.

Eminent banker Deepak Parekh, IT expert Kiran Karnik and former SEBI member C Achuthan arrived at the Infocity campus of Satyam for the meeting, in which the chairman of the board is expected to be elected, PTI reported.

The board members are likely to meet the press in the evening.

Ramalinga Raju's bail plea hearing has been postponed till January 16.

Meanwhile, Times now reported, Raju has confessed to Andhra Pradesh police that the unexpected downturn led to Maytas deal.

Raju in his confession said the manipulation of accounts went on for seven years. The margin amounts were shown increased each year, he said.

"I did not bribe anybody", said the disgraced chairman. “I manipulated the accounts for more business" he added.

Sebi has also sought permission to record Raju's statement.

In its first meeting, the board is likely to elect Deepak Parekh as its chairman. It is learnt that the government has already sounded the members about Parekh as chairman. The other members will be appointed by the government with the consultation of the chairman and other appointed board members.

Parekh on Sunday said the first task of the board is to restore confidence in the clients and investors to continue business with Satyam.

At present, Satyam has no cash reserves, despite the fact that the balance sheet prepared on March 31, 2008, shows a cash reserve of Rs 5,700 crore. To ensure smooth functioning of the company, a senior official said the company would require a new management, which could be trusted by clients and lenders, who have stopped giving Satyam money after the revelation of accounting fraud.

According to sources, interim CEO Ram Mynampati may be sacked. Government has criticized his role as a director, in its application to the Company Law Board (CLB), where it had sought permission to sack the earlier board.

While it's unlikely that the new board will continue with Mynampati as CEO, at the same time, it will have to ensure that the new CEO must be aware of the functioning of the Satyam, having over 500 clients.

Parekh will also discuss availability of working capital for the company as it is facing acute financial crunch. It immediately needs credit from banks to continue operation. Because of fraud fiasco, banks are not ready to lend the company against receivables as collateral, saying it is very difficult to believe on the company's statement as its balance sheet is under cloud.

Sources said that the board may decide to offer a seat to a bank, which will give it working capital. The board seat will give the bank inside information of its functioning and financial condition.

The board may also discuss appointment of remaining members. The government had sought permission from CLB to appoint 10 members, though it may not take the strength to 10. A senior official said the final number could be kept at five or seven.

The source added that as a first step, the government restricted itself to appointment of three members only, to avoid any clash of personality, which is crucial for smooth functioning of the board. So, government decided to select a core team first and later expand it. Some representation on the board could be given to institutional investors like Life Insurance Corporation. HYDERABAD: Satyam's three-member board constituted by the government on Sunday met for the first time on Monday to discuss ways to get the IT
company back on track. ( Watch )

Eminent banker Deepak Parekh, IT expert Kiran Karnik and former SEBI member C Achuthan arrived at the Infocity campus of Satyam for the meeting, in which the chairman of the board is expected to be elected, PTI reported.

The board members are likely to meet the press in the evening.

Ramalinga Raju's bail plea hearing has been postponed till January 16.

Meanwhile, Times now reported, Raju has confessed to Andhra Pradesh police that the unexpected downturn led to Maytas deal.

Raju in his confession said the manipulation of accounts went on for seven years. The margin amounts were shown increased each year, he said.

"I did not bribe anybody", said the disgraced chairman. “I manipulated the accounts for more business" he added.

Sebi has also sought permission to record Raju's statement.

In its first meeting, the board is likely to elect Deepak Parekh as its chairman. It is learnt that the government has already sounded the members about Parekh as chairman. The other members will be appointed by the government with the consultation of the chairman and other appointed board members.

Parekh on Sunday said the first task of the board is to restore confidence in the clients and investors to continue business with Satyam.

At present, Satyam has no cash reserves, despite the fact that the balance sheet prepared on March 31, 2008, shows a cash reserve of Rs 5,700 crore. To ensure smooth functioning of the company, a senior official said the company would require a new management, which could be trusted by clients and lenders, who have stopped giving Satyam money after the revelation of accounting fraud.

According to sources, interim CEO Ram Mynampati may be sacked. Government has criticized his role as a director, in its application to the Company Law Board (CLB), where it had sought permission to sack the earlier board.

While it's unlikely that the new board will continue with Mynampati as CEO, at the same time, it will have to ensure that the new CEO must be aware of the functioning of the Satyam, having over 500 clients.

Parekh will also discuss availability of working capital for the company as it is facing acute financial crunch. It immediately needs credit from banks to continue operation. Because of fraud fiasco, banks are not ready to lend the company against receivables as collateral, saying it is very difficult to believe on the company's statement as its balance sheet is under cloud.

Sources said that the board may decide to offer a seat to a bank, which will give it working capital. The board seat will give the bank inside information of its functioning and financial condition.

The board may also discuss appointment of remaining members. The government had sought permission from CLB to appoint 10 members, though it may not take the strength to 10. A senior official said the final number could be kept at five or seven.

The source added that as a first step, the government restricted itself to appointment of three members only, to avoid any clash of personality, which is crucial for smooth functioning of the board. So, government decided to select a core team first and later expand it. Some representation on the board could be given to institutional investors like Life Insurance Corporation.

Source: http://timesofindia.indiatimes.com/Business/India_Business/New_board_meets_likely_to_elect_Deepak_Parekh_as_chairman/articleshow/3966656.cms

Satyam scam: Raju's bail plea hearing deferred till January 16

HYDERABAD: A city court on Monday deferred till January 16 hearing on bail applications filed by Satyam's three disgraced executives including Ramalinga Raju, as also market regulator Sebi's plea for quizzing Raju.

Hearing on the bail plea will be taken up by the 6th chief metropolitan magistrate on January 16, Raju's lawyer Bharat Kumar told reporters, adding that a team of 25 lawyers has been put together to defend Raju and others.

Besides Raju, his brother Rama Raju and Satyam's CFO Vadlamani Srinivas too are in judicial custody till January 23 and are lodged in the Chanchalguda central prison.

Sebi too had filed a petition seeking the court's nod for interrogating Raju and the two others while they are in judicial custody, but Raju's lawyer sought a day's time to file a counter petition. Following this, the court posted the matter for hearing on January 16.

The Rajus were arrested by the state CB-CID police on Friday, two days after Ramalinga disclosed a Rs 7,800 financial fraud in Satyam founded by him in 1987. Vadlamani Srinivas was arrested on Saturday.

Separate teams from Sebi and the Serious Fraud Investigation Office of the corporate affairs ministry are camping in the city to interrogate Raju.

While Sebi has been questioning the company's dislodged interim CEO Ram Mynampati for a while now, the CB-CID police have launched searches in the houses of the Rajus and Srinivas.

Source: http://timesofindia.indiatimes.com/Rajus_bail_plea_hearing_deferred_till_Jan_16/articleshow/3967047.cms

Time to get tough on truckers: Govt

NEW DELHI: Amid signs that the seven-day-old truckers' strike was breaking up in some parts of the country, the Centre has given indications that it would take a tough line to force the agitators to end the stir, like it did with officers of oil PSUs. Sources said more arrests of leaders spearheading the strike were likely on Monday.

In a letter to states, Cabinet secretary K M Chandrasekhar has cited the strategy adopted to deal with the oil strike while seeking "effective intervention" to ensure free movement of essential commodities and prevent hoarding of goods.

Meanwhile, road transport secretary Brahm Dutt claimed that trucks had started moving in Pune and Mumbai in Maharashtra, Krishna and Vijaywada in Andhra Pradesh, Hassan in Karnataka, Jaipur in Rajasthan and in Gurgaon. There were also reports of one truckers' association in Maharashtra calling off the strike.

The government said at least seven states had chalked out emergency plans and kept hundreds of drivers ready to transport essential commodities.

However, the All India Motor Transport Congress (AIMTC), the body heading the nationwide strike, on Sunday issued a veiled warning of the stir turning violent. "The chakka jam is peaceful, but the aggressive attitude of the government could worsen the situation," it said in a statement.

Though the Centre so far maintained that the strike has had an insignificant impact, the transport secretary on Sunday admitted that the stir had hit "inter-state goods movement, transportation for export and industrial purpose". He also said though the prices of vegetables and other essential items have remained stable in the past week, "merchants have pushed up the prices".

He also claimed arrangements have been made by the Food Corporation of India (FCI) and state governments to ensure adequate quantities of wheat and rice are available in fair price shops. "Delhi transport commissioner has informed us that they have got 100 drivers in place to deal with movement of essential commodities in case of an emergency. Rajasthan has also communicated to us its detailed strategy," the secretary added.

Sources in the ministry said Rajasthan had prepared a list of 700 drivers who could be asked to drive impounded trucks to ferry goods. The ministry will hold holding a meeting of all state transport ministers on Monday to chalk out plans to deal with the situation.

"State governments have greater role to play in this case. Issues like one national permit for all states can only be addressed by the state governments. They issue permits and charge taxes. We want to play the role of facilitator. Protesters can make out how serious the government is about their concerns," Brahm Dutt said.

Responding to whether arrested leaders would be freed, he said: "Law of the land would prevail. We will not allow one section to take the entire country to ransom."

Source: http://timesofindia.indiatimes.com/India/Time_to_get_tough_on_truckers_Govt/articleshow/3965402.cms

Rupee falls 26 paise against dollar

MUMBAI: The Indian rupee on Monday by 26 paise against the US dollar in early trade owing to heavy capital outflow by foreign funds amid
expectations of weak opening of the Indian bourses due to the Satyam fiasco.

At the Interbank Foreign Exchange (Forex) market, the domestic unit, which closed at 48.28/29 on Friday, plunged by 26 paise to 48.54 a dollar as weak Asian markets put pressure on rupee.

The Bombay Stock Exchange benchmark Sensex closed down by over 181 points on Friday.

source:http://timesofindia.indiatimes.com/Business/India_Business/Car_sales_down_69_bikes_229/articleshow/3966345.cms

World Bank bans any business with Wipro, Megasoft

NEW DELHI: Even before the dust settled on the controversy involving Satyam's debarment, the World Bank on Monday revealed that action has been
taken against a total of five entities in India, including Wipro Technologies, and an individual. ( Watch )

The action was initiated against these entities and individual as they were found to have "violated the fraud and corruption provisions of the Procurement Guidelines or the Consultant Guidelines," besides offering improper benefits to Bank staff.

Megasoft became the third Indian software vendor to have attracted the Bank's ire, while Nestor Pharmaceuticals and Gap International were non-IT entities. An individual Surendra Singh was barred from doing business with the Bank for violating guidelines.

While Wipro was barred for four years beginning June 2007 for "providing improper benefits to Bank staff", Megasoft barred for an identical period beginning December 2007 for "participating in a joint venture with Bank staff while also conducting business with the Bank."

In a statement late last night, the World Bank said that it decided to "make public the names of all the companies that have been debarred from receiving direct contracts from the Bank group under its corporate procurement programme.

"This change was made in the interest of fairness and transparency... From now on the Bank group would publicly list names of companies debarred from its corporate procurement."

Commenting on the World Bank action, Wipro said in a statement this morning: "Our inability to get future business from World Bank will not adversely affect our business and results of operations."

Megasoft officials too said that the debarment will not have no revenue implication for the company.

Earlier, Satyam, which was debarred for eight years beginning September 2008, had demanded an apology for making public its name and withdrawal of what it called "inappropriate" statement by the Bank. The Bank had refused to apologise.

In the list of "ineligible" firms released by the Bank, over a 100 companies or individuals - some of the Indian-origin - have been barred temporarily or life.

The list includes Gurpreet Singh Malik, Vikram Deepak Gursahaney, Kamal Sharda and Sharda Impex (UK Ltd) in Nigeria, as well as Labh Singh Gill, Labh Universal, Pradeep Menon, Shivshanker Pre Nair and Pradeep S Nair in the UK and Mandeep S Sandhu in the US. All these entities are permanently barred.

In 2000, in connection with its IPO of American Depository Shares (ADS) in the United States, Wipro offered a commonly utilised and SEC-approved Directed Share Program (DSP), which allowed employees and clients to purchase ADSs at the IPO price.

The programme's object was to involve employees and customers with the public offering to expand the recognition and brand. A majority of the shares sold under the DSP were allotted to Wipro employees.

Pursuant to this, Wipro representatives offered the World Bank, through its Chief Information Officer (CIO) and senior staff, participation in the program, Wipro said in statement.

All participants in the programme signed a conflict-of- interest statement, saying that their purchase did not violate any ethics or policies of their company.

However, the World Bank had determined in June 2007 the company would be ineligible for the international lender's direct contracts up to 2011, citing a conflict of interest policy.

Source: http://timesofindia.indiatimes.com/Business/India_Business/Car_sales_down_69_bikes_229/articleshow/3966345.cms