Removing STT will reduce costs, help stock exchanges: NSE

The recent Foreign Portfolio Investors (FPI) guidelines that Sebi came out with got a lot of positive reaction and positive feedback and that sets a positive tone in the market.

You always have to be conscious of the costs in the system and must always be focused on how competitive we are as a market

Chitra Ramakrishna

MD & CEO

NSE

Doing away with the Securities Transaction Tax (STT) will reduce costs and will help stock exchanges, says Chitra Ramakrishna, MD and CEO, National Stock Exchange. In an exclusive interaction with CNBC-TV18's Shereen Bhan, Ramakrishna also spoke about other key reforms needed to boost stock exchange business in India.

Below are excerpts from the interview:

Q: How can you increase growth of stock exchanges in India?

A: You always have to be conscious of the costs in the system and we always have to be focused on how competitive we are as a market. So definitely, taxes as cost are a part of that. We can't have an exaggerated focus on just one thing and so, anything that reduces cost will help us.

Q: How hard is it to attract business in this country from stock exchange point of view given where statutory costs are?

A: It is not the only factor.

Q: Is it one of the big impediments that you are faced with?

A: I wouldn't put it that way at all. The recent Foreign Portfolio Investors (FPI) guidelines that Sebi came out with got a lot of positive reaction and positive feedback. Such things set a very positive tone.

Q: Do you believe that will go a long way in reversing the Indian business, which is not easy to deal with, also reduce the kind of paper work and the kind of approvals that you require and so on and so forth because there are still concerns on the tax front which haven't been addressed?

A: The FPI framework which Sebi has put out has got a lot of good positive feedback. It is a paradigm shift from where we were even five years ago. So, it is certainly a very important factor in making India look attractive.

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PM could have sacked me if I was wrong: Ex coal minister

Former coal minister Dasari Narayana Rao, who has been questioned by CBI in connection with alleged irregularities in allocation of Talabira-II coal block in Odisha, today said the prime minister could have removed him from the post had he taken any wrong decision.

Rao also said that a final decision on any coal ministry related-work was taken by cabinet ministers Shibu Soren and prime minister Manmohan Singh, who held the portfolios at different times.

Rao and Soren have been also accused by former coal secretary PC Parakh in his recent book on 'Coalgate' for scuttling reforms in the coal ministry.

Also read: Coalgate Scam: CBI to question former coal secy PC Parakh

"His allegation is when he proposed the bidding (for coal blocks allocation), I refused it. So I have not cooperated with it. Who am I not to cooperate? I was a minister of state. There is a cabinet minister. Sometimes Shibu Soren is there. Sometimes prime minister is there," Rao said.

The former Rajya Sabha member said there were certain "practical problems" in introducing new things in the ministry.

"Whenever he wanted some new things to be introduced, there were certain problems, practical problems. So I had to point out those problems. I put it to the prime minister or to the cabinet minister. So if these problems were not right problems, immediately the minister could have taken a decision.

"Suppose if I am wrong, the prime minister could have thrown me away. Why he did not do it?" he asked.

Rao said there are agencies who can question any decision made by him or the prime minister with regard to the coal ministry.

"The prime minister's decision is final as per the government's order. If somebody wants to question it, there are the organisations or agencies. They have to decide whether we discussed these things (practical problems on implementing Parakh's decision) with the higher-ups or not. The prime minister is the final authority (for any decision)," Rao said.

The former coal minister added that allegations such as he took money for appointment of chairman and managing directors of some public sector undertakings, as made by Parakh in his book, were false.

"He can write a book or he can make a film. No problem. There are some false allegations like some CMD asking me or my secretary or my assistant asking for money. That is a wrong allegation. I have appointed so many chairmen. But no chairman came to me," Rao, who has also been a film director and producer, said.

66-year-old Rao was minister of state for coal between 2004 and 2006 and in a second term between 2006 and 2008. He was also questioned by the CBI late last month about the allocation of Talabira-II coal block to  Hindalco despite the screening committee giving it to public sector undertaking (PSU) Neyveli Lignite Limited .

Parakh was on May 1 and 2 questioned by the CBI officials in connection with the case. 69-year-old Parakh, who retired as coal secretary in December 2005, has been accused of abusing his official position to grant the coal block to Hindalco, an Aditya Birla Group company, in a CBI FIR.

CBI had last year registered a case against Parakh, Kumar Mangalam Birla and unnamed officials of Hindalco and the coal ministry.

Birla and Hindalco have denied allegations of irregularities.

The agency has alleged that during 2005, these persons had entered into a criminal conspiracy and the then public servant (Parakh) abused his position and showed undue favour to the Odisha-based industry in allocation of Talabira II and Talabira III coal blocks.

Hindalco stock price

On May 05, 2014, Hindalco Industries closed at Rs 138.60, up Rs 6.35, or 4.80 percent. The 52-week high of the share was Rs 147.00 and the 52-week low was Rs 83.05.

The company's trailing 12-month (TTM) EPS was at Rs 7.98 per share as per the quarter ended December 2013. The stock's price-to-earnings (P/E) ratio was 17.37. The latest book value of the company is Rs 162.00 per share. At current value, the price-to-book value of the company is 0.86.

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BPCL to invest Rs 1,419 cr in Mumbai refinery

BPCL plans to install a new crude and vacuum distillation unit of 6 million tonne per annum capacity as a replacement of old crude and vacuum units, a company official said.

Bharat Petroleum Corp Ltd , India's second-biggest state refiner, plans to invest Rs 1,419 crore in replacing an old crude processing unit at its 12 million tons a year Mumbai refinery by May 2015.

BPCL plans to install a new crude and vacuum distillation unit of 6 million tonne per annum capacity as a replacement of old crude and vacuum units, a company official said. Old units will be disposed off post stabilisation of the new plant. With the entire 12 million tons Mumbai refinery will have new crude distillation units - the primary unit that converts crude oil into fuel, as other half was built only a few years back.

Also Read: Total diesel deregulation in next 12 months likely: BPCL

"The new unit would enhance safety and environment with improved mechanical integrity as existing old units have a number of critical equipment and civil structures having lower residual life with a potential safety and environment hazard," the official said.

Full commissioning of the project is expected by May 2015. BPCL is also looking at expanding its Kochi refinery by installing a new crude distillation unit (CDU) of 10.5 million tons so as to replace the existing old 4.5 million tons CDU-1 which is not energy efficient.

This would raise Kochi refinery capacity to 15.5 million tons from current 9.5 million tons. Mechanical completion of the project is planned by March 2016 and commissioning by May 2016, he said. The company is also planning to almost double the combined capacity of its Numaligarh refinery in Assam and Bina refinery in Madhya Pradesh at a cost of about Rs 13,500 crore.

Numaligarh refinery capacity is being planned to be raised to 9 million tons from current 3 million while Bina capacity would go up to 8 million tons from 6 million. "The Numaligarh refinery expansion is on drawing-board stage and its viability hinges on tax concessions and other benefits from the state and central government," the official said.

BPCL plans to complete the Bina expansion by 2016 end through debottlenecking, tweaking some existing configuration and technological improvements. India currently has a refining capacity of 217 million tonnes.

BPCL stock price

On April 25, 2014, Bharat Petroleum Corporation closed at Rs 459.40, down Rs 16.5, or 3.47 percent. The 52-week high of the share was Rs 493.30 and the 52-week low was Rs 256.00.

The company's trailing 12-month (TTM) EPS was at Rs 66.24 per share as per the quarter ended December 2013. The stock's price-to-earnings (P/E) ratio was 6.94. The latest book value of the company is Rs 230.04 per share. At current value, the price-to-book value of the company is 2.00.

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Shantha Bio receives WHO nod for Pentavalent Vaccine

Pentavalent vaccine provides effective protection for children from 6 weeks of age against five diseases: diphtheria, tetanus, pertussis, Hib and hepatitis B.

Shantha Biotechnics, a  Sanofi group company, today said its paediatric pentavalent vaccine Shan5, developed and manufactured indigenously, has received prequalification status from the World Health Organisation (WHO).

The status qualifies Shan5 vaccine for purchase by United Nations agencies, mainly UNICEF, said Harish Iyer, Shantha CEO in a media briefing here.

"Shan5 prequalification will give more children around the world access to the latest high-quality, fully-liquid, 5-in-1 vaccine and help secure the supply of pentavalent combination vaccines in over 50 emerging and low-income countries," Iyer said.

Pentavalent vaccine provides effective protection for children from 6 weeks of age against five diseases: diphtheria, tetanus, pertussis, Hib and hepatitis B.

Replying to a query, he said Sanofi has invested over Rs 1,000 crore in Shantha since its acquisition in 2009. He said the demand for the vaccine is around 200 million vials and the company is expecting to garner good chunk of market share in future.

An earlier version developed by the vaccine maker was recognised by WHO and the company sold 18 million doses between 2008 and 2010. However, it was later withdrawn due to some issues in the sedimentation of the vaccine.

Also read: Shantha Biotech's 5-in-1 vaccine up for WHO review

Varaprasad Reddy, founder of Shantha Biotechnics and Non-Executive Chairman of the board said they are committed and focused to the priority and passion which is to serve people through high quality, affordable vaccines.

Sanofi India stock price

On May 05, 2014, Sanofi India closed at Rs 2956.65, down Rs 38.35, or 1.28 percent. The 52-week high of the share was Rs 3160.00 and the 52-week low was Rs 2280.00.

The company's trailing 12-month (TTM) EPS was at Rs 118.32 per share as per the quarter ended March 2014. The stock's price-to-earnings (P/E) ratio was 24.99. The latest book value of the company is Rs 584.74 per share. At current value, the price-to-book value of the company is 5.06.

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Idea resumes pan-India 3G services

It will enable over 25 percent of its base of 13.7 crore subscribers to experience high speed 3G Internet services on their mobile devices.

India's fourth largest teleco  Idea Cellular today resumed 3G services through intra-circle roaming (ICR) across 10 circles.

It will enable over 25 percent of its base of 13.7 crore subscribers to experience high speed 3G Internet services on their mobile devices. Another private telecom operator, Airtel, had resumed 3G services last Sunday following the companies winning their case against the government ban on intra-circle roaming at the telecom tribunal last week.

Also Read: Idea to spend Rs 3,500 cr in networks; 3G in Delhi by 2015

Both, prepaid and postpaid Idea customers in Delhi, Mumbai, Rajasthan, Karnataka, Kolkata, Bengal, Tamil Nadu, Bihar, Assam and the Northeast can now avail of 3G services. "Idea has partnered with leading telecom operators in the country to enable seamless 3G connectivity," company's Chief Marketing Officer Sashi Shankar said in a statement.

Already the largest players Airtel and Vodafone have restarted offering 3G roaming services in circles where they don't have 3G network through intra-circle roaming arrangements from past weekend.

Idea Cellular stock price

On May 05, 2014, Idea Cellular closed at Rs 130.40, down Rs 3.6, or 2.69 percent. The 52-week high of the share was Rs 188.35 and the 52-week low was Rs 124.40.

The company's trailing 12-month (TTM) EPS was at Rs 5.09 per share as per the quarter ended March 2014. The stock's price-to-earnings (P/E) ratio was 25.62. The latest book value of the company is Rs 47.34 per share. At current value, the price-to-book value of the company is 2.75.

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Coal India's April production at 37.5 MT

Bharat Coking Coal Ltd (BCCL) produced 2.94 MT (3.06 MT target); Central Coalfields Ltd (CCL) produced 4.55 MT (4.45 MT target) and Northern Coalfields Ltd (NCL) produced 6.86 MT (5.78 MT target).

State-owned  Coal India Ltd (CIL) produced 37.5 million tonne of the dry fuel in April, as against the target of 37.6 MT. The company's offtake was 40.54 MT during the month. Its target for that was 45.17 MT, CIL said in a filing to the BSE.

Giving the break-up for its subsidiaries, CIL said: Eastern Coalfields Ltd (ECL) produced 3.21 MT coal as against the target of 3.34 MT; Bharat Coking Coal Ltd (BCCL) produced 2.94 MT (3.06 MT target); Central Coalfields Ltd (CCL) produced 4.55 MT (4.45 MT target) and Northern Coalfields Ltd (NCL) produced 6.86 MT (5.78 MT target).

Western Coalfields Ltd (WCL) produced 4.13 MT against the target of 3.67 MT, South Eastern Coalfields Ltd (SECL) produced 11.70 MT (10.19 MT target); Mahanadi Coalfields Ltd (MCL) produced 11.69 MT (10.02 MT target) and North Eastern Coalfields (NEC) produced 0.09 MT (0.04 MT target).

Coal India produced 462 MT of coal in the last financial year, 2013-14, missing the target of 482 MT by 20 MT.

Also Read: Coal firms should take advance action to renew FSAs in time

Coal India stock price

On April 25, 2014, Coal India closed at Rs 300.05, down Rs 1.95, or 0.65 percent. The 52-week high of the share was Rs 330.65 and the 52-week low was Rs 238.35.

The company's trailing 12-month (TTM) EPS was at Rs 26.41 per share as per the quarter ended December 2013. The stock's price-to-earnings (P/E) ratio was 11.36. The latest book value of the company is Rs 32.48 per share. At current value, the price-to-book value of the company is 9.24.

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Bayer nears deal to buy Merck consumer unit: Sources

Bayer and Merck are hammering out final terms of an agreement and could announce the transaction in the next several days, the people said, asking not to be named because the matter is not public.

German drugmaker Bayer AG is nearing an agreement to buy Merck & Co Inc's consumer healthcare unit, people familiar with the matter said, in a deal that could value the business at around USD 14 billion.

Reckitt Benckiser Group, one of the final contenders in the auction, said on Wednesday it was no longer in active talks to buy the Merck business, leaving Bayer in the pole position to win the asset, which is best known for Coppertone sunscreen and Claritin allergy medicine.

Bayer and Merck are hammering out final terms of an agreement and could announce the transaction in the next several days, the people said, asking not to be named because the matter is not public. Representatives for Bayer and Merck declined to comment.

Also read:  EID Parry acquires Bayer group firm Alimtec

Reuters first reported last week that Bayer and Reckitt had emerged as forerunners in the auction with each offering roughly USD 13.5 billion, a price that could come close to USD 14 billion when the deal is finalized.

Bloomberg News reported on Thursday that Bayer entered exclusive talks with Merck.

Bayer has also edged out other rival bidders in the auction, including Procter & Gamble Co, Boehringer Ingelheim, Novartis AG and Sanofi SA, people familiar with the matter said.

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Ashok Leyland sales decline 21% in April

Hinduja Group flagship company Ashok Leyland today reported a 21 percent decline in its total sales at 5,897 units in April. The company had sold 7,487 units during the same month of previous year, Ashok Leyland said in filing to the BSE.

Hinduja Group flagship company  Ashok Leyland today reported a 21 percent decline in its total sales at 5,897 units in April.

The company had sold 7,487 units during the same month of previous year, Ashok Leyland said in filing to the BSE.

Also read: IDL Speciality sell 2 crore Ashok Leyland shares

Sales of medium and heavy commercial vehicle in April went down by 14 percent to 4,523 units from 5,251 units sold during the same month of previous year.

Sales of light commercial vehicles in April, 2014 declined by 39 percent to 1,374 units from 2,236 units sold in the same month of previous year.

Shares of Ashok Leyland closed at Rs 22.45 apiece, up 0.90 percent from their previous close on the BSE.

Ashok Leyland stock price

On May 02, 2014, Ashok Leyland closed at Rs 22.45, up Rs 0.20, or 0.90 percent. The 52-week high of the share was Rs 25.20 and the 52-week low was Rs 11.82.

The latest book value of the company is Rs 16.74 per share. At current value, the price-to-book value of the company was 1.34.

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Vikram Akula no more promoter of SKS Microfinance

Akula was previously the executive chairman of the board of directors of the company. He resigned as a director of the company on November 23, 2011 and currently holds only 10 equity shares, the filing said, adding that he does not have any special rights in the company through formal or informal arrangements.

SKS Microfinance  today said it will cease to treat a few entities, including Vikram Akula and Sequoia Capital India Growth Investments, as its promoters. Mauritius Unitus Corporation and Mutual Benefit Trusts are the other entities that have been removed from the promoters list.

" ... taking cognisance of their (entities) requests and instructions, the company shall cease to treat them as its promoters with immediate effect," SKS Microfinance, the only listed microfinance company, said in a filing to the BSE. The micro-lender said that Mauritius Unitus Corporation and Sequoia Capital India Growth Investments have entirely divested their shareholding in the company and do not currently hold any equity shares.

Akula was previously the executive chairman of the board of directors of the company. He resigned as a director of the company on November 23, 2011 and currently holds only 10 equity shares, the filing said, adding that he does not have any special rights in the company through formal or informal arrangements.

Also Read: SKS Microfin standalone Mar '14 sales at Rs 138.30 crore

"Akula has informed the company through an e-mail dated April 24 2014, that he is not a promoter of the company," the filing said. The company's Mutual Benefit Trusts include SKS Mutual Benefit Trust Medak, Sangareddy, Jogipet, Narayankhed and Sadasivapet.

"The Mutual Benefit Trusts do not have any special rights in the company through formal or informal arrangements, except such rights that are available to every public shareholder of the company," the company said. Shares of the company closed at Rs 233.25, down 2.41 percent on the BSE.

SKS Microfin stock price

On April 17, 2014, SKS Microfinance closed at Rs 259.55, up Rs 9.05, or 3.61 percent. The 52-week high of the share was Rs 266.95 and the 52-week low was Rs 95.60.

The company's trailing 12-month (TTM) EPS was at Rs 6.45 per share as per the quarter ended March 2014. The stock's price-to-earnings (P/E) ratio was 40.24. The latest book value of the company is Rs 42.53 per share. At current value, the price-to-book value of the company is 6.10.

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Tata Motors sales decline 34% in April

Domestic passenger as well as commercial vehicle sales declined by 36 percent to 30,670 units in April, down from 47,595 units a year earlier.

Tata Motors  today reported 34 percent decline in total vehicle sales to 33,892 units in April.
The company had sold 51,160 vehicles in the same month last year.

Domestic passenger as well as commercial vehicle sales declined by 36 percent to 30,670 units in April, down from 47,595 units a year earlier.

In the passenger category, it sold 5,653 units of Nano, Indica and Indigo cars and 1,788 units of Sumo, Safari, Aria and Venture vehicles, the company said in a statement.

In the commercial vehicles segment, domestic sales declined by 36 percent to 23,229 units from 36,025 units in April last year.

Tata Motors stock price

On April 17, 2014, Tata Motors closed at Rs 424.50, up Rs 13.30, or 3.23 percent. The 52-week high of the share was Rs 437.70 and the 52-week low was Rs 263.10.

The company's trailing 12-month (TTM) EPS was at Rs 2.61 per share as per the quarter ended December 2013. The stock's price-to-earnings (P/E) ratio was 162.64. The latest book value of the company is Rs 59.47 per share. At current value, the price-to-book value of the company is 7.14.

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