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Sunday, October 24, 2010

Why will the 50-overs format be soon over?

Which are the most awaited series in cricket nowadays? Some may say Ashes, some may rate Border-Gavaskar trophy as their favourite or some may even find Aus-SA test match rivalry exhilarating. Well if I ask you to limit yourself to the “limited overs” format, IPL might be the one to go for. Some cricket enthusiast might even include Champions league T20 (though I won’t). Now let’s qualify it even further. How many 50 over series or tournaments are on your radar? You might vote for Champions trophy. Can you come up with a few more? Seems tough, isn’t it?

Now it’s the turn of the players to pick their favourites. You will find the Aussies and the Poms engrossed with the Ashes or the Indian team bragging about their No.1 tag. The Proteas consider winning Test series in Australia as their biggest cricketing achievement. Come IPL and you would find players braving injuries to showcase their talents. In fact it has even affected their commitments to their national teams.  


Wednesday, October 20, 2010

The Decoupling Theory

One term that has been doing the round nowadays on the web, on biz news channels or newspapers is “Decoupling”. The decoupling theory holds that Emerging economies have broadened and deepened to the point that they no longer depend on the United States or Europe for growth. Emerging markets (EMs) are nations with social or business activity in the process of rapid growth and industrialization. So let’s start our exploration of the decoupling theory (DT) now.

Decoupling as we all know is separating or detaching. But what’s the reason that we hear so much about DT? The two likely reasons are shaky recovery of the developed economies with V shaped likely to make way for a U or even worse W shaped recovery and the robust performances of the emerging economies like China & India.  So what does DT entail for the world economy? One, it signifies the growing strength of the developing countries as well as weaning strength of the countries like US & UK. Add to that it also tells that emerging countries are gaining self sufficiency i.e. consuming what they are producing within themselves.


Thursday, October 7, 2010

Public Offers made Public - IV

After introducing Public Offers in the first part, discussing some regulatory changes in primary markets in the second part, pros and cons of the 25% listing norms in the the third part, the fourth and the final part will focus on ASBA, another revolutionary change by SEBI.

ASBA or Application Supported by Blocked Amount is a new method introduced by SEBI for making investments in IPOs, Mutual Funds and NFOs. SEBI has tied up with self-certified syndicate banks which shall provide this facility.

Monday, October 4, 2010

Public Offers made Public - III

After introducing Public Offers in the first part and discussing some regulatory changes in primary markets in the second post, the third post will focus on the pros and cons of the recently proposed 25% listing norms.

On 4th June 2010, the Ministry of Finance amended the Securities and Contract (Regulation) Rules, 1957 to set a limit of a minimum 25% public shareholding for initial public offers (listings) by companies on Indian stock exchanges as well as for continued listing.

Friday, October 1, 2010

Public Offers made Public - II


After introducing Public Offers in the first part, the major focus of the second part of the series will be to discuss some of the Regulatory Changes in Primary Markets in the recent past and their likely implications.

Reduction in IPO timeline from 22 days to 12 days: Market regulator SEBI has amended the existing rules regarding the time period between closure and listing of IPOs. The window has been reduced from 22 days to 12 days.

Public Offers made Public - I

In this series of blogs, I’ll focus on some of the recent changes in the regulations related to public offers. I will also discuss some of the likely impacts of these changes. In the first part I will introduce public offers in brief.  


In order to finance their expansion, firms rely on different methods to raise capital. While deciding the mode of financing, the company looks at different aspects of capital i.e. cost of financing, amount of capital required, capital structure, size and reputation of the firm etc. The primary methods used by corporations to raise capital are: Bonds, Stocks, Borrowing & Retained profits. In this blog we will focus on the stocks as a method of financing.