Will BSE Survive?  

-- Y Chandra Sekhar

After the recent bloodbath on the Indian capital markets, rolling settlement was introduced replacing the age-old badla amidst protest by brokers. The biggest impact of recent developments is more on the 125-year-old Bombay Stock Exchange. With the lack of interest among retail investors in trading, ban on its USP and competition with NSE heating up, the premier exchange of India has suddenly found itself in a chaotic situation. Added to its woes in the domestic market, threats from the global arena are also fast emerging. The question that crops up in the light of these developments is - "Will BSE Survive?"

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Cellular Industry : Consolidation gains

--  N Janardhana Rao

As M&As are the order of the day, the buzzword in the industry today is integration, with all players realizing that integrating operations hold the best chance of survival and growth.

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Case Study

GE-Honeywell : Merger muddle

--  D Satish

The merger between GE and Honeywell if complete would be the largest industrial merger ever. The deal almost went through but for the final hurdle. European commission blocked the deal sighting that the merger would hamper competition in Europe.

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Debate

Reforms Roadmap

India has completed a decade of economic reforms process. A decade is not a long time in the history of a nation. Still this decade has changed the face of India greatly, in fact, much more than the preceding four decades after independence. The average growth rate is now six percent, though for a couple of years in the last decade it touched seven percent. There is no doubt that India has made substantial progress since the balance of payments crisis of 1991, which ushered in the reform process. Its fiscal deficits have been reduced, external accounts are stronger, and the trade regime is more open, the financial sector has been liberalized, tax procedures have been simplified, and administration strengthened. It has opened up vast areas for foreign investment, and FDI in India is now around $4 bn a year from less than $1 bn before the reforms. However, if one were to compare this with China, it is not a great achievement. China's per capita income at $2,000 a year is more than twice that of India. Its foreign exchange reserves, at $165 bn, are nearly four times that of India's. It is almost ahead is every field from manufacturing to exports.

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Business Environment

Competition Law : From restriction to competition

--  D Satish

The all-new competition law is replacing the redundant MRTP Act. The new law seems to be in line with the trend globally. It also calls for setting up of Competition Commission of India. (CCI) for timely enforcement.

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WTO Requirements :The lurking dangers

"It is imperative that India should continue to sustain the economic growth to ensure the welfare of the greater masses," says Dr. A Besant C Raj, Chairman, IU and Besant Raj International Ltd.

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US Slowdown :The global impact

--  Debasis Mallik and D G Prasuna

As the US economy falters the global economy topples. The monetary policies seem to be ineffective to arrest the slowdown.

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Financial Services

Unit Trust of India : Trusting `Trust'?

-- D G Prasuna

The uncanny ability of UTI to end up in a mess is predictable. The Government's attitude of stepping in and bailout each time UTI ends up in a mess is itself questionable. It is time that UTI fashions itself to the changed realities in the market place and that the Government leaves it to the market forces. Let the markets decide the worth of UTI.

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Corporate

ITC Ltd. : Behind the smoke

-- Atul Priyadarshi

The tobacco giant ITC is unleashing a flurry of new activities and tapping new opportunities by leveraging its diverse skills and stupendous distribution channel.

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Tata Tea : Expanding Horizons

--  K B S Kumar

After a dismal performance last year, Tata Tea is all set for a come back with a bang. It has made its intentions of making a foray into international markets clear by way of acquiring Tetley of Britain. It has also kept its avenues open in the Japanese market by joining hands with Hitachi.

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United Breweries Limited : In the process of distillation

-- D Satish

With many companies in the race to become a partner of United Breweries Limited, it is time for this beer major to value itself properly to get a good partner.

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Telco : Tale of woes

--  D G Prasuna

Pulled down by a sluggish demand in the commercial vehicles segment and a loss making passenger car segment, Telco posted one of the largest losses in its 56-year history for the present fiscal year. A drastic strategic overhaul is the need of the hour to put the company back on track.

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Perspective

Article 356 : In the Center's arsenal...

-- Dr. Ajit Kumar

The Constitution does not provide a specific remedy against the abuse of power.

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Indo-Pak Relations : Miles to go still...

--Dr. Ajit Kumar

Pakistan has fought four wars with India and the proxy war has been going on for a long time. It is being done with a view to destabilize India's peace initiatives. The Lahore bus trip was a historic ride in search of peace, but Pakistan did not respond in the same manner.

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