Core Education FROM Rs 299 TO RS 56 - 3 DAYS!!!!

MUMBAI, FEB 27:  

Core Education and Technologies has moved SEBI seeking a probe into the high volumes of trading in its shares that led to a steep fall of 81 per cent in share prices.The stock fell from a high of Rs 300 to a low of Rs 56.55, in just three days.“We would like to request your office to assist the company in conducting your investigation in such unusual high volume and price movement…,” the company said in its letter to the market regulator.The technology-enabled education solutions provider has also sought the market regulator’s assistance in providing appropriate price circuits for its scrip. This is to prevent “further damage and repose shareholders and all stakeholders’ confidence,” it added.Though the stock is not traded under F&O list directly, since it is a part of CNX-IT, which has derivatives contracts, no circuit filter is applicable to the stock.

TUMBLES CONTINUOUSLY

Last Monday, the company’s shares fell by more than 62 per cent on market talks that lenders were diluting shares pledged by the promoters. The prices recovered by noon on Tuesday, after it clarified that pledged shares were not sold in the market. On Wednesday, it fell further by 46 per cent to close at Rs 60.30.“Further, we would like to clarify on the rumours of promoters pledged shares being sold, that we have confirmed with all the financial institutions that none of them have sold the pledged shares and that they continue to hold the same,” it said. However, today IFCI sold 36.95 lakh shares.On Monday, Cresta Fund informed the exchanges that it sold 28.16 lakh shares or 2.4598 per cent stake in the company on February 25. After the sale, their holding reduced to 2.3572 per cent.On Tuesday, SEBI Chairman in Hyderabad, U.K. Sinha, said: “Whenever we worry either through our own surveillance mechanism or through other medium that somebody has tried to manipulate the market, we take action.” rajesh.kurup@thehindu.co.in

http://www.thehindubusinessline.com/markets/core-education-moves-sebi-for-probe-as-stock-crashes-81-in-3-days/article4459326.ece

Rex Cano  |  Mumbai  February 23, 2013 Last Updated at 21:17 IST

Nifty bias to remain negative below 5,880

Weekly Technical Analysis

The markets changed tracks in the latter half of the week, owing to renewed selling pressure in banking, metal and fast-moving consumer goods shares. The Sensex, which touched a high of 19,742 mid-week, dropped to a low of 19,290---a fall of about 450 points from the week's high. The BSE benchmark index finally ended the week at 19,317, a loss of 151 points. 
Among the Sensex-30 stocks, Jindal Steel fell 7.5 per cent to Rs 357. Coal India shed five per cent at Rs 332. Tata Motors, Tata Steel, ITC and ICICI Bank were the other major losers. Wipro soared about four per cent to Rs 416. Sun Pharma, Reliance and Infosys were the other major gainers. 
The Sensex continues to remain in the ‘sell’ mode, as it has recorded a fresh low on the weekly charts. The bias is likely to remain bearish as long as the BSE benchmark index sustains below 19,630-19,480. On the downside, the index could drop to 19,125- or 18,900-odd levels. A slide to 18,500-odd levels cannot be ruled out. To arrest the downward pressure, the Sensex would need to sustain above 19,430-odd levels on a consistent basis. According to the weekly Fibonacci charts, the Sensex is likely to seek support at 19,145-19,030 levels. One can expect a sharp reaction on a break of 19,030-odd levels. In case of an upside, the index could rally to 19,490-19,600.
Last week, the NSE Nifty moved in a range of 135 points. From a high of 5,971, it slipped to a low of 5,836, finally ending the week at 5,850, a loss of 37 points. The short-term trend for the Nifty has turned negative, as the short-term moving average (20-day daily moving average, or DMA) slipped below the medium-term (50-day DMA). The index is trading very close to the lower end of the Bollinger Band. If the index breaks below 5,820, one may see downward pressure.
The Nifty closed on its short-term on the weekly charts. The bias is likely to be negative in case the index consistently sustains below 5,840, following which we could see a sharp slide to 5,650-odd levels, or to 5,550-odd levels.
Most momentum oscillators on the daily and the weekly charts such as the moving average convergence-divergence, the relative strength index and the Stochastic Slow are in favour of the bears. The average directional index, too, indicates any upside from current levels is likely to be short-lived.
On the upside, the Nifty would see resistance at 5,880-5,910. At best, it might spurt to 5,940-odd levels next week. 
To sum up, the bias seems clearly negative in the short term. The Nifty would have overhead resistance at 5,880-5,910-5,940. On the downside, it would see support at 5,820; a sharp slide to 5,550-5,650 seems likely.

http://www.business-standard.com/article/markets/nifty-bias-to-remain-negative-below-5-880-113022300349_1.html

RBS India-to retrench staff

Press Trust of India  |  Mumbai  February 24, 2013 Last Updated at 14:01 IST RBS India starts shutting down branches, to retrench staff The bank has nearly 1,000 employees in India.

British banking major Royal Bank of Scotland (RBS) will be laying-off some of its 1,000 employees as it winds down retail and commercial business in the country."As part of its winding down plans for the R&C (retail & commercial) business here, RBS India has reviewed its operating model and this will unfortunately lead to a number of job losses," it said in a statement. It, however, did not specify the number of people who will be laid off. The bank has nearly 1,000 employees in India.

RBS India had a deposit base of Rs 13,039 crore and an asset book of Rs 12,534 crore as of March 2012, while its NPAs stood at 0.74 per cent.The India operations account for a meagre 0.02 per cent of the RBS Groups assets and around 0.5 per cent of its non-core business. RBS had sold its Asian assets to Australia and New Zealand Banking Corp to comply with the bailout norms recently. Its troubles started after being bailed by the British government in 2008 due to the global credit crisis. 

RBS has 36 branches here after it got the Indian assets of ABN as part of a three-way split of the Dutch bank, after it was acquired along with Banco Santander of Spain and Fortis of Belgium. RBS had announced sale of these businesses with 36 branches to HSBC over two years back, but the deal did not fructify owing to regulatory uneasiness. Around one month back, private sector lender YES Bank evinced interest in picking up the business. But nothing has moved ahead since then. The Hindujas-promoted IndusInd Bank was also reportedly keen to buy out RBS branches her. Interestingly, one of the driving factors mentioned by YES Bank for the deal was the strength it gets through the trained employees. "The affected employees are being informed over the coming days and will be treated fairly and in line with RBS policies," the statement said, adding the preferred banking division, frontline sales and some from Van Gogh Preferred Banking will be impacted following this. The bank's customers will continue to be served, it said, adding that they will be "notified of any changes impacting them in time to minimise disruption." RBS' other businesses in the country, including markets, international banking and private banking, will continue to operate, it added.

http://www.business-standard.com/article/companies/rbs-india-starts-shutting-down-branches-to-retrench-staff-113022400115_1.html

Domestic Mutual Funds sell......

Domestic Mutual Funds sell shares worth Rs 9K cr in Q3 

PTI: NEW DELHI, FEB 24 2013, 11:13 IST
Domestic mutual funds seem to have taken a bearish stance in the stock market during the last quarter when they offloaded shares worth Rs 9,000 crore (about $1.65 billion) despite a significant uptrend in the overall market and impressive buying by foreign investors.

Individually, sectors like energy, software and pharma were among the worst hit in terms of net sale by mutual funds, while net purchases were made in stocks from metal and mining] and financial segments.

According to global research report by BofA-Merrill Lynch, domestic mutual funds (MF) sold shares worth Rs 9,000 crore (about USD 1.65 billion) during the October-December quarter] 2012, while they acquired shares to the tune of Rs 3,455 crore] (about USD 633 million) during the same period.

The top stocks sold by domestic MFs were -- Wipro, HDFC Bank; energy firms--Reliance Industries (RIL), ONGC and NTPC --,while most bought shares were state-run NMDC, State Bank of India (SBI),ICICI Bank, diversified conglomerate Aditya Birla Nuvo and auto component maker Motherson Sumi Systems.Individually, domestic MFs lowered their exposure to companies like Wipro with sale of shares with an estimated USD 162 million, followed by HDFC Bank (USD 149 million), RIL] (USD 143 million), ONGC (USD 114 million) and NTPC (USD 97 million), the report said.

Additionally, domestic mutual funds sold stake in IT major HCL, pharma companies--Divis Laboratories, Sun Pharma, Cipla and Ipca; utility firms--Power Grid and GAIL; consumer goods maker--ITC and Hindustan Unilever Ltd, and Coal India.On the other hand, domestic MFs major investment during the quarter

included NMDC (USD 336 million), SBI (USD 92 million), ICICI Bank (USD 65 million) and USD 53 million each in Aditya Birla Nuvo and Motherson Sumi.According to the report domestic mutual funds continued to be net sellers for the past two quarters. "MF sold Indian equities with an net outflow of USD 1 billion in October-December quarter as compared a net outflow] of USD 1.1 billion in the previous quarter (July-September," it added.

As per the report, industrial was one of the biggest overweight sector for domestic MF's, while they are underweight on areas like financial, software, metals and mining, utilities and energy.

Interestingly, FIIs infused a net amount of over Rs 45,000 crore in the entire Indian stock market in October-December period on the back of a slew of reforms initiated by the government, pushing the broader market Sensex to surge 18,099 points or nearly 10 per cent. In terms of sectors, the domestic MFs sold shares valued at USD 348 million in the energy sector followed by software portfolio (USD 280 million), pharma (USD 264 million), utilities (USD 249 million) and consumer (USD 195 million).

In contrast, mutual funds investment in the metal and mining stood at USD 283 million.

http://www.financialexpress.com/news/domestic-mutual-funds-sell-shares-worth-rs-9k-cr-in-q3/1078913/2

Premji -- Rs 12,300 cr to trust

Premji transfers Wipro stock worth Rs 12,300 cr to trust PTIBANGALORE, FEB 22:  

Giving more to philanthropy, IT czar Azim Premji today announced transfer of 295.5 million equity Wipro shares worth Rs 12,300 crore held by certain entities controlled by him, to an irrevocable trust.

The trust will utilise the endowment to fund, various social, not-for-profit initiatives of Azim Premji Foundation, which are expected to scale significantly over the next few years, the statement said.

With this transfer, the trust’s shareholding in Wipro will go up to about 19.93 per cent, according to a statement issued by the Foundation here.

The 295.5 million shares of Wipro Ltd represent around 12 per cent stake.

Azim Premji is also Chairman of Azim Premji Foundation.

On February 19, Premji had announced he will commit more of his wealth to philanthropy, as his Foundation scales up work to improve equity and quality of the primary education system in the country.

The business tycoon had donated 8.7 per cent of the total stock of Wipro from his personal stock-holding for philanthropy in 2010. This had formed the endowment for the Foundation.

In a letter for the first international “Giving Pledge”, group, he said the Foundation currently has 800 people spread across the country: most of whom are working for the betterment of some of the most disadvantaged regions of the country, and others at the Azim Premji University.

The Foundation is a not-for-profit organisation set up in 2001 with an overarching goal to create and sustain initiatives to contribute to a just, equitable, humane and sustainable society, it said.

The Foundation has worked largely in rural India, often in close partnership with various state governments, to help contribute to the improvement of quality and equity of school education, the statement said.

Currently, the Foundation’s work is spread across Karnataka, Uttarakhand, Rajasthan, Chhattisgarh, Puducherry, Andhra Pradesh, Bihar and Madhya Pradesh, it said.

http://www.thehindubusinessline.com/news/premji-transfers-wipro-stock-worth-rs-12300-cr-to-trust/article4443285.ece

World's Richest Lose $21 Billion...more to go...

World's Richest Lose $21 Billion as Icahn's Fortune Drops

By Alex Cuadros - Feb 23, 2013 3:52 AM GMT+0530

The 100 wealthiest people on the planet shed $21.3 billion from their collective net worth as the Standard & Poor’s 500 Index posted its first weekly decline so far this year.Activist investor Carl Icahn, the world’s 34th-richest person, was one of the week’s biggest losers, dropping $1.3 billion as shares of Icahn Enterprises LP (IEP) sank 15.6 percent. He’s worth $20.4 billion, according to the Bloomberg Billionaires Index.“The market was looking for an excuse to take a few chips off the table,” said James McDonald, chief investment strategist at Northern Trust Corp. (NTRS) in Chicago, which manages $759 billion. “The excuse was the minutes from the Fed, but investors realize the Fed’s picture really hasn’t changed that significantly. Today, there was good German confidence data.”The S&P rose 0.88 percent yesterday, trimming a decline triggered by concerns that the Federal Reserve will scale back stimulus. The index rebounded from two days of losses after German business confidence rose more than forecast, adding to signs that Europe’s largest economy is gathering strength.Carlos Slim, the world’s richest man, saw his net worth fall by almost $700 million as America Movil (AMXL) SAB, Latin America’s biggest mobile-phone company by market value, fell 2.2 percent, capping its third straight weekly drop. Slim, 73, has a net worth of $73.4 billion.

Microsoft Corp. (MSFT) co-founder Bill Gates, 57, is the world’s second-richest person with a $66 billion fortune, down $260 million for the week. Amancio Ortega, the 76-year-old founder ofInditex SA (ITX), the world’s biggest clothing retailer and owner of the Zara clothing chain, is No. 3 with a net worth of $56.1 billion. He lost $1.3 billion.Suspicious TradesTrailing Ortega is Warren Buffett, 82, who’s valued at $54.2 billion. A federal judge froze a Swiss account that the U.S. Securities and Exchange Commission says was used to carry out suspicious trades in H.J. Heinz Co. shares shortly before Buffett’s Berkshire Hathaway Inc. (BRK/A) and Jorge Paulo Lemann’s 3G Capital Inc. announced they’d agreed to buy the company. The SEC on Feb. 15 sued the “unknown” traders over suspicious purchases of Heinz options through the account.Lemann, 73, is Brazil’s richest individual. He has a net worth of $19.9 billion, down $20 million for the week.Tax LoopholeHedge fund manager John Paulson, 57, is No. 93 on Bloomberg’s ranking with a net worth of $11.2 billion. Last year, executives at his firm sent about $450 million to a reinsurance company that they’d set up in Bermuda. By June, the island company, which has no employees and sells far less reinsurance than the industry norm, had sent all the cash back to New York, to be invested in Paulson & Co. funds. The little- known tax loophole allows them to reduce their personal income taxes and delay paying the bill for years.

The Bloomberg Billionaires Index takes measure of the world’s wealthiest people based on market and economic changes and Bloomberg News reporting. Each net worth figure is updated every business day at 5:30 p.m. in New York and listed in U.S. dollars.

To contact the reporter on this story: Alex Cuadros in Sao Paulo at acuadros@bloomberg.net

To contact the editor responsible for this story: Matthew G. Miller at mmiller144@bloomberg.net

1987 Market Crash...he predicted .....Martin Zweig...

Martin Zweig, Who Predicted 1987 Market Crash, Dies at 70

By Tomoko Yamazaki - Feb 19, 2013 9:53 PM GMT+0530

Martin E. Zweig, who predicted the 1987 stock market crash and whose newsletters influenced U.S. investors for a quarter century, has died. He was 70. He died yesterday, according to Zweig-DiMenna Associates LLC, his New York-based firm. No cause of death was given.

Enlarge image

Martin Zweig, co-founder of Zweig-DiMenna Partners LP., poses for a photograph during an interview in a file photo. Photographer: Rob Kinmonth/Time Life Pictures/Getty Images

Zweig wrote “Martin Zweig’s Winning on Wall Street,” his book first published in 1986, and stock-picking newsletters such as the Zweig Forecast for 26 years, helping start his career in hedge funds and philanthropy. He co-founded Zweig-DiMenna Partners in 1984 and, according to the New York Times, bought a 16-room apartment at Manhattan’s Pierre hotel in 1999 for $21.5 million. He also had a residence in Fisher Island, Florida. “I was on the road show with Marty for the Zweig Fund in 1986 and he was like a rock star,” Gene Glaser, a business partner with Zweig from 1989 to 1999, said today in an interview. “People would wait around to get his autograph and ask him questions about the market.” Zweig began his career in the 1970s writing investment newsletters, which became the Zweig Forecast, published from 1971 to 1997, the company said in a statement through Business Wire. In 1984, Zweig and Joe DiMenna founded Zweig-DiMenna Partners, their first long-short hedge fund, followed by the Zweig Fund in 1986 and the Zweig Total Return Fund in 1988.

Predicting Crash

A regular guest on the PBS television show “Wall Street Week With Louis Rukeyser,” Zweig is credited with developing the technical analysis tool known as the put-call ratio, according to his firm. The indicator plots bearish versus bullish options as a way of determining investor sentiment. Zweig’s best-known call came during Rukeyser’s program on Oct. 16, 1987, when he predicted stocks were poised for a “vicious” decline reminiscent of the crash of 1929. The Dow Jones Industrial Average plunged 508 points, or a record 23 percent, in the next session, now known as Black Monday. “I haven’t been looking for a bear market per se, really, in my own mind I’m looking for a crash,” Zweig said in the PBS interview. “I only look for a brief decline, but a vicious one.” The Dow declined 23 percent in October 1987 and climbed 2.3 percent that year, according to data compiled by Bloomberg. Zweig bought bearish options and advised readers of the Zweig Forecast to do the same prior to the 1987 crash. The strategy generated an 8.7 percent profit for the month and helped push his picks up 50 percent in 2007, according to a profile published on the website of his alma mater, the University of Pennsylvania’s Wharton School.

Dow Theory

“He was a pioneer in technical analysis,” said Richard Russell, editor of the Dow Theory Letters newsletter, in a telephone interview. Zweig was a “terrible worrier,” said Russell, who took over Zweig’s investment advisory service. Dow Theory, which stems from observations made by Wall Street Journal founder Charles Dow during the late 1800s, holds that moves by the transportation average must be “confirmed” by the industrial measure, and vice versa, to be sustained.A patron of The Wharton School, who helped fund its Locust Walk lobby, Zweig played poker and collected pop-culture items, according to the 2007 profile. He owned the sequined dress Marilyn Monroe wore when she sang “Happy Birthday” to President John F. Kennedy and a baseball jersey worn by Brooklyn Dodger star Jackie Robinson in 1947, it said. Cleveland Native Martin Edward Zweig was born on July 2, 1942, in Cleveland. His father died when he was 9, and the family moved to Florida a year later following his mother’s remarriage, Zweig wrote in “Martin Zweig’s Winning on Wall Street.” His interest in the stock market began at 13, when he received a gift of six shares of General Motors Co. from an uncle. Zweig graduated from Wharton in 1964 with a B.A. in economics. He later received an MBA from the University of Miami and a Ph.D. in finance from Michigan State University in East Lansing, Michigan. “Marty became a mentor and close friend shortly after he hired me in 1977 while I was still in college,” DiMenna said in the statement. “He was a wonderful, kind and generous person and I will always be grateful for the opportunity to have been his friend and partner. Marty was one of a kind.” He is survived by his wife Barbara and sons Zack and Alex.

To contact the reporter on this story: Tomoko Yamazaki in Singapore attyamazaki@bloomberg.net To contact the editor responsible for this story: Andreea Papuc at apapuc1@bloomberg.net.

http://www.bloomberg.com/news/2013-02-19/martin-zweig-stock-author-who-predicted-87-market-crash-dies.html

Loan recast to touch Rs 3.12 trillion...

17 FEB, 2013, 02.46PM IST, PTI 

Loan recast to peak next fiscal to touch Rs 3.12 trillion: Care

MUMBAI: Ratings agency Care has said loan restructuring will peak next fiscal to reach Rs 3.12 lakh crore if the latest Reserve Bank guidelines are accepted without any changes. 
"If the draft RBI guidelines on restructured accounts are implemented as it is, it will prompt banks to carry out most of the restructuring in pipeline during the fourth quarter of this fiscal and through next fiscal in an attempt to upgrade fresh restructured accounts by the end of FY15 and to avoid incremental provisioning of 1.25 per cent," Care said in a note. 
The report says there will be new loan restructuring worth Rs 57,782 crore taking total recast loan book to Rs 3,12,022 crore next fiscal (2013-14). Under the draft RBI guidelines on provisioning for standard restructured accounts, banks will be asked to set aside 3.75 per cent for each of the restructured accounts in FY14, which will increase to 5 per cent by FY15. Provisioning requirement stands at 2.75 per cent at present, which was 2 per cent till last October. The draft norms also make it easier for banks to reclassify accounts as well as the restructured assets as standard accounts. The report, however, says a reclassification will see the total quantum of restructured books going down as assets get reclassified and upgraded under the revised norms. 
"At least 25 per cent of the outstanding restructured assets of FY12 would be upgraded instantly, while 60 per cent of the outstanding standard restructured assets of FY12 will be restructured afresh in FY13," it said, reducing its estimates on total recast book up to Rs 2,80,000-3,10,000 crore from its earlier estimate of up to Rs 4,00,000 crore by FY13. 
Additionally, the stress on contribution from promoters, who have been asked to bring in 15 per cent of bank sacrifices or 2 per cent of debt restructured, "may temper the pace of restructuring, as only the genuine cases will be referred for restructuring during FY13-FY15," the note said. The draft norms on provisioning are expected to push up total provisioning by Rs 5,000-7,000 crore till FY15. Public sector banks are expected to be hurt the most because of new rules as they carry the maximum bad books and CDR accounts, while private sector ones, with lower sizes of restructured assets, are expected to have a "muted impact", the report said. Overall, the report has welcomed the guidelines saying they are a step towards integrating the country with the rest of the world. 
"The RBI notification with respect to restructured assets disclosure could enable greater accounting and reporting transparency governing asset quality of banks and financial institutions," it added. 

http://economictimes.indiatimes.com/articleshow/18542317.cms

Porsche faces probe over stock price manipulation

Press Trust of India | Updated On: February 12, 2013 23:54 (IST)

Frankfurt: German prosecutors said today that they have extended their probe into the suspected stock price manipulation at sports car maker Porsche. The investigation had now been widened to include "everyone who sat on the supervisory board of Porsche's holding company between March and October 2008, as well as a former employee," a spokesman for prosecutors said.
That means that Ferdinand Piech, supervisory board chief of Europe's biggest carmaker Volkswagen, Porsche supervisory board boss Wolfgang Porsche and works council head Uwe Hueck are now implicated in the probe. The accused are being investigated on suspicion of "complicity to manipulate the market," the spokesman added.
In December, prosecutors charged Porsche's former chief executive Wendelin Wiedeking and former finance chief Holger Haerter with manipulating the Porsche's share price in connection with the - ultimately unsuccessful - attempt to take over Volkswagen.
Mr Wiedeking and Mr Haerter allegedly made false statements in public with regard to the Porsche's intentions in 2008. Both Mr Wiedeking and Mr Haerter denied the charges.
The prosecutors argue that Porsche issued at least five public statements between March and October 2008 publicly denying the plans, even though preparations for the takeover were already underway.
It was not until several months later that Porsche revealed in a surprise statement its takeover plans, sending the share price rocketing.
Porsche's bid to acquire the much-bigger Volkswagen eventually unravelled, leaving the luxury sports carmaker with more than $13 billion in debt.
The two companies then made a fresh attempt to tie the knot in 2009, with Volkswagen initially acquiring 49.9 per cent in Porsche in the first stage of the complex takeover agreement, the completion of which ran into a number of legal and tax hurdles.
Last year, a German court rejected two compensation claims brought against Porsche by the investors who felt duped by the company over the tie-up.
Copyright @ Thomson Reuters 2013

http://profit.ndtv.com/news/international-business/article-porsche-faces-probe-over-stock-price-manipulation-317811?pfrom=home-latest

Indian tender twisted ...ITALY ARRESTED..CEO.....

Indian tender twisted to favour Italian firm - prosecutors

-

By Emilio Parodi and Danilo Masoni

BUSTO ARSIZIO, Italy | Wed Feb 13, 2013 4:00am IST

(Reuters) - Three brothers with family ties to a former head of the Indian air force helped to twist rules in a helicopter tender won by Italy's AgustaWestland, prosecutors alleged in an arrest warrant for a top Italian businessman.

Italian prosecutors said in the warrant reviewed by Reuters on Tuesday that two managers at AgustaWestland, a unit of defence group Finmeccanica (SIFI.MI), paid go-betweens to help it win the 2010 contract to supply 12 helicopters to India. Part of these payments ended up with the three Indian brothers, Juli, Docsa and Sandeep Tyagi, whose cousin Sashi Tyagi was former Indian air force chief. None of the Tyagis has been accused of wrongdoing by officials in India.

In a growing corruption scandal, police arrested on Tuesday AgustaWestland's former chief executive Giuseppe Orsi, who now heads Finmeccanica. Orsi denies any wrongdoing over the 556-million-euro deal. The case, which is still in its preliminary investigation phase, has rocked Italy before parliamentary elections on February 24-25, and also in India, the world's largest weapon importer.

Prosecutors in the northern town of Busto Arsizio, near AgustaWestland's headquarters, said Orsi hired U.S.-born Guido Ralph Haschke, who was then a consultant for the Finmeccanica group, to lead dealings in India to secure the contract. Haschke and his partner Carlo Gerosa, prosecutors said, had close ties with the Tyagi brothers. Prosecutors allege that Orsi, along with the current chief executive of AgustaWestland Bruno Spagnolini, paid 400,000 euros in consultancy fees to Haschke and Gerosa. "Of this, 100,000 euros in cash were given to the Tyagi brothers," they said in the 65-page warrant.

The money went to the brothers to pressure Indian officials and help doctor the tender terms to favour the specification of AgustaWestland's helicopters, the prosecutors alleged. The tender was changed to accommodate AgustaWestland by, among other things, lowering required altitudes where the helicopters could operate to 15,000 feet from 18,000 feet, "thus allowing AgustaWestland, which otherwise would not even have been able to present an offer, to take part in the tender", the warrant said. The tender terms were also changed to introduce an engine failure flying test. This favoured AgustaWestland as its helicopters were the only ones in the tender operating with three engines.

Orsi's lawyer said his client denied distributing any money or pocketing a single euro, adding that the investigation did not provide any evidence of illicit payments. AgustaWestland said on Tuesday it supported Spagnolini who was placed under house arrest. The warrant also covered Haschke and Gerosa. Neither has been arrested as they are in Switzerland. A lawyer for Haschke, contacted by reporters, declined to comment on the case while Gerosa could not be reached for comment. Reuters was not immediately able to locate the Tyagi brothers, nor Sashi Tyagi.Sashi Tyagi, head of India's air force from 2004-2007, in November told the India Today news weekly he had no memory of the issue. The warrant did not explain how Tyagi might have been involved in a deal completed after he had left his post.

INDIAN DEAL

The investigation into Finmeccanica, which started more than a year ago, is one of a series of corruption scandals in defence dealmaking in India. Defence Minister A.K. Antony has ordered an inquiry into the deal to be conducted by the Central Bureau of Investigation, the country's federal police force.The arrests over Indian bribery allegations come as Finmeccanica unit Alenia Aermacchi hopes to compete for a contract to supply over 50 military transport aircraft to India in competition with European aerospace group EADS (EAD.PA).

According to specialist defence publication IHS Jane's, Alenia would build 40 of the 56 C-27J Spartan airlifters in India and use the same assembly line to meet future regional demand for tactical air transport.The military arm of EADS subsidiary Airbus told Reuters last week it would offer its C295 military transport plane as an alternative, adding that manufacturers were waiting for a formal competition document from the Indian government.

(Reporting by Emilio Parodi and Danilo Masoni; Additional reporting by A. Ananthalakshmi and Ross Colvin; writing by Stephen Jewkes and Antonella Ciancio; Editing by Lisa Jucca and David Stamp)

Italy arrests Defence firm’s CEO- ALL MANUPULATIONS

CBI to probe chopper deal after Italy arrests Defence firm’s CEO

OUR BUREAUNEW DELHI, FEB 12:  

The Central Bureau of Investigation is to inquire into charges of unethical dealings by Italian company Finmeccanica in the sale of 12 helicopters by its Anglo-Italian subsidiary AgustaWestland to the Ministry of Defence. The deal is valued at around Rs 3,500 crore. The probe announcement came after the Italian media reported that Finmeccanica’s Chief Executive Officer had been arrested for corruption and embezzlement in relation to bribes allegedly given to the Indian government. International agencies stated that Finmeccanica CEO Giuseppe Orsi, who had been under investigation for months, had denied any wrongdoing in the deal for the sale of 12 helicopters. It is alleged that bribes were paid to win the contract, which was signed in February 2010.The helicopters are meant for the use of the President, the Prime Minister and other VVIPs.

NO CLARIFICATIONS

Agencies reported that the Italian magistrate had also ordered that the head of AgustaWestland, Bruno Spagnolini, be placed under house arrest. In a statement, however, Finmeccanica confirmed “that the operating activities and ongoing projects of the Company will continue as usual” despite the precautionary measures taken today towards the Chairman and CEO of Finmeccanica and the CEO of the controlled company AgustaWestland. The decision to hand over the case to the CBI was taken after the Ministry of Defence through the Ministry of External Affairs, sought information from the Governments of Italy and UK. “No specific inputs were, however, received substantiating the allegations” the Government statement said. A Defence Ministry statement adds that the probe has been widened to include the Indian contract that AgustaWestland (UK) signed.The contract signed with AgustaWestland includes specific contractual provisions against bribery and the use of undue influence as well as an Integrity Pact, the Government statement adds. Defence Minister A. K. Antony had earlier said that deliveries of the choppers are scheduled between January and July this year. 

EXPLAIN TO PEOPLE: BJP  Unsatisfied over the Centre’s decision to hold a CBI probe into the VVIP helicopter deal, the Opposition Bharatiya Janata Party said the Government owes the people an explanation for delaying the decision to hold a probe. Party spokesperson Prakash Javadekar said he had written to Antony two months ago that financial irregularities involved in the deal must be probed by the CBI. “Action has been taken in Italy on the VVIP helicopter scam. The CEO of the company has been arrested. But no action has been taken here. The country that would have benefited from the deal has taken action while the country which lost money has not done anything,” Javadekar told reporters here on Tuesday. The BJP plans to bring the matter before Parliament during the forthcoming Budget session.

Ashwini.phadnis@thehindu.co.in  Jigeesham@thehindu.co.in

http://www.thehindubusinessline.com/news/cbi-to-probe-chopper-deal-after-italy-arrests-defence-firms-ceo/article4407718.ece?homepage=true

PE-BOSSES lose sleep-$3 trillion in assets.......

13 FEB, 2013, 05.00AM IST, BLOOMBERG Private equity bosses lose sleep over buyout boom going bust
NEW YORK: Private equity, an investing trade plied by 4,500 firms with $3 trillion in assets, is bracing for a shakeout that's been brewing since the collapse of credit markets choked off a record leveraged-buyout binge. Firms that attracted an unprecedented $702 billion from investors from 2006 to 2008 must replenish their coffers for future deals and avoid a reduction in fee income when the investment periods on those older funds run out, typically after five years. 
As many as 708 firms face such deadlines through 2015, according to researcher Preqin. Private-equity firms pool money from investors including pensionplans and endowments with a mandate to buy companies within five to six years, then sell them and return the funds with a profit after about 10 years. The firms, which use debt to finance the deals and amplify returns, typically charge an annual management fee equal to 1.5 per cent to 2 per cent of committed funds and keep 20 per cent of profit from investments. 
While fundraising is a routine part of the buyout business, today's environment is anything but. Many firms are suffering from below-average profits on their boom period funds and top executives from Carlyle Group co-founder David Rubenstein to Blackstone Group president Tony James say future returns will be far more modest than those investors got used to in the past. As investors gravitate to the best-performing managers and cut loose others, 10 per cent to 25 per cent of firms may find themselves without fresh money. 
'RATHER MASSIVE' 
"The shakeout will be rather massive," said Antoine Drean, chief executive officer of Triago, a Paris-based firm that helps private-equity firms raise money. Drean estimates that as many as a quarter of private equitymanagers will see their funding pulled by 2018. The firms are under growing pressure to invest the capital they already have. 
About 28 per cent of the money raised from 2006 to 2008 has been paid back to investors, according toCambridge Associates, a Boston-based research and consulting firm. More than $100 billion, or 14 per cent, of the $702-billion raised, is yet-to-be invested dry powder that firms must use or lose by the end of 2013, according to Triago. 
That's a record for dry powder set to expire in a single year, Triago said. What's more, performance has sagged, most markedly on LBOs done at the peak. Since 2007, the industry's median return has been 6 per cent a year, below the 7.5 per cent that many pensions need to pay retirees and far beneath the industry's historic average of around 13 per cent. Notable among the underachievers are many of the mega funds, multi-billion-dollar pools raised in the boom by brand-name houses like Blackstone, TPG Capital and KKR & Co. 

'SOME CARNAGE' 
Blackstone's $21.7 billion fund from 2006 had a2 per cent net annualised internal rate of return as of December 31, according to a Blackstone regulatory filing. TPG's boom-era funds — an $18.9 billion vehicle raised in 2008 and a $15.4 billion vehicle from 2006 — were generating returns of 2.5 per cent and a negative 4.9 per cent annually as of June 30, according to the California Public Employees' Retirement System, a TPG investor. 
KKR's annual return on its $17.6 billion fund from 2006 was 6.9 per cent as of September 30. That combination of under-performance and funding needs has set the stage for a purge as investors pull the plug on the weakest firms. Only the scope of a shake-out is a matter of debate. 

$1 billion tax demand on $160 million -SHELL iNDIA

$1 billion tax demand on $160 million investment 'absurd', says Shell

Press Trust of India | Updated On: February 12, 2013 17:39 (IST)

New Delhi: Shell India today described as "absurd" the demand for $1 billion in taxes on a $160 million equity infusion done by the Anglo-Dutch oil major four years ago, saying it tantamounted to tax on FDI.
Anglo-Dutch oil major Royal Dutch Shell Plc's India unit head Yasmine Hilton said the company will challenge the notice that alleged tax evasion by under-pricing share transfer between member firms.
"We never comment in public about our tax affairs. The only reasons, and absolutely the only reasons, we commented on the issue was because it was reported that Shell was evading taxes. I cannot have our reputation tarnished that way. Shell does not evade taxes. At Shell, we have the highest business principles," she said.
Hilton said the tax authorities have raised a tax demand of $1 billion (about Rs. 5,400 crore) on an equity infusion of $160 million (about Rs.870 crore)."To service the downstream business, which is not making money, we needed an equity injection in 2008 of $160 million. We have (now) received a tax request of $1 billion on this equity injection of $160 million. Somebody needs to explain (this) because I do not understand," she said.
Income tax department has charged Shell India of under-pricing a share transfer within the group by Rs. 15,220 crore, and consequently evading taxes.The order relates to the issue of 8.7 crore shares by Shell India to an overseas company Shell Gas BV in March 2009. The shares were issued at Rs. 10 a share, which the income-tax authorities contest and peg higher at Rs. 183 a share instead.
She said in order to pay $1 billion in taxes, the company will need another equity infusion as the downstream fuel retailing business is loss making. And on that equity infusion, the company may get a $3 billion tax demand.

"Just think about the absurdity about it," she added.
To attract global giants, India needs to send right signals that it has a stable fiscal, legal and tax regime.

"Lets have a robust investor friendly framework. Do not create waves of fear amongst your investors by unreasonable tax demands or unreasonable statements. What signal does it send," Hilton said.
Shell, she said, will review all its options. It is taking tax and legal advice on the issue, she said but refused to say at what forum would it challenge the tax demand."It is effectively a tax on FDI," she said.
"We do need the right signal that India is going to be stable fiscal, legal, tax regime. We are not going to have surprises along the way."
Last week, Shell in a statement vowed to challenge what it saw as a transfer pricing order that is "based on an incorrect interpretation of the Indian tax regulations and is bad in law," arguing that the move is a capital receipt on which income tax cannot be levied.
At the centre is a 2009 equity injection involving Shell India and parent Shell Gas in which around Rs. 870 crore worth of shares were issued at a value of Rs. 10 per share, stock which taxmen now claim was in fact worth Rs. 183 per share."Funding of a subsidiary through issue of shares is common in India and globally," Shell India said.
"Taxing the money received by Shell India is in effect a tax on Foreign Direct Investment (FDI), which is contrary not only to law but also to the spirit of the recent global trip by the Finance Minister to attract further FDI into India," Hilton was quoted in last week's statement as saying.
The statement said Royal Dutch Shell group has over the last few years made significant investments in India. Equity injection was used to finance these investments and to fund the ordinary business activities of Shell India.

http://profit.ndtv.com/news/corporates/article-1-billion-tax-demand-on-160-million-investment-absurd-says-shell-317786?pfrom=home-latest

Mon, Feb 11, 2013 at 22:26

2G row: CBI finds its own prosecutor colluding with accused

For the last three years, the 2G case has become synonymous with a corrupt system and has had many twists and turns. It has been a case which has involved some of the biggest names in politics, corporate India and the bureaucracy.

For the last three years, the 2G case has become synonymous with a corrupt system and has had many twists and turns. It has been a case which has involved some of the biggest names in politics, corporate India and the bureaucracy.

Network 18 has learnt from sources that the CBI suspects its own prosecutor of aiding Unitech MD Sanjay Chandra, one of the accused in the 2G case. A CBI preliminary enquiry report says an investigation is on and lead 2G prosecutor AK Singh has been removed from the case.

In terms of scale and profile the 2G case is as big as it can get. Then telecom minister A Raja spent 15 months in jail, DMK MP Kanimozhi was denied bail for seven months. Telecom secretary Behuria and top corporates including Sanjay Chandra of Unitech were also denied bail for months .

The main accused A Raja, Unitech MD, Sanjay Chandra and 12 others including Kanimozhi have been examined by the prosecution. Cross examination is now on and a verdict is expected by the end of the year.

CNN IBN has accessed a preliminary enquiry (PE) registered by the CBI on February 6 which states that AK Singh who represented the CBI in the 2G case has allegedly colluded with the accused Sanjay Chandra, MD of Unitech. The CBI preliminary enquiry says AK Singh shared the strategy of the CBI prosecution and even advised the accused Sanjay Chandra how to defend himself in the case. The CBI has confirmed that AK Singh has been removed as the agency's prosecutor in the sensitive 2G case.

Sources have told CNN IBN the CBI has in its possession an audio recording which contains a conversation which the agency believes has taken place between its prosecutor AK Singh and Sanjay Chandra. CNN IBN has accessed the recording where two people are being heard discussing the legal strategy and the way forward.

In an exclusive interview to CNN IBN, CBI director Ranjit Sinha confirmed that the agency was using the recording as a basis for their preliminary enquiry and to establish the voices belong to Unitech's Sanjay Chandra and CBI prosecutor AK Singh.

CBI director Ranjit Sinha also told CNN IBN that they have taken this very seriously and has informed the Supreme Court, the CVC, the law ministry and the Department of Personnel & Training (DoPT). Sources confirmed the audio recording with the CBI was at least 17 minutes in duration. 

The PE says prima facie the information reveals gross misconduct on the part of CBI prosecutor AK Singh and accused Sanjay Chandra. 

Sanjay Chandra along with former telecom minister A Raja and 12 others have been charged with conspiracy, forgery and cheating in the 2G case. Raja is accused of tinkering with procedure and policy to help Unitech and other corporates to get 2G licenses. They are also charged with benefiting Unitech to make windfall gains by selling stakes at a premium to Telenor. The trial is currently in the court of justice OP Saini in Delhi's Patiala house.

The preliminary enquiry now raises massive questions over the nexus between the prosecutor and the accused and now raises fresh doubts on what else could have been shared and who else could have been involved since the CBI began its probe and prosecution of the accused.

Meanwhile, Unitech, in a statement, has denied that managing director Sanjay Chandra had any involvement in the alleged backroom negotiations.

"He (Sanjay Chandra) wishes to make it absolutely clear that he has never met the prosecutor in the 2g case outside of court or had any phone conversation with him. He denies the suggestion that his voice is on any alleged recording. It appears a fabricated voice recording has been sent anonymously to the CBI. Any suggestion that Sanjay Chandra is linked with this recording is nothing, but an attempt to malign him and prejudice his defence in the 2G case. It is re-iterated that the recording is a fabrication."

The statement also adds that Chandra has joined the CBI's enquiries, and is co-operating with the CBI probe.

Disclaimer: Network18 cannot independently verify the authenticity of the conversation on the audio tape.