According to Nomura, vehicle sales in August would witness strong volumes led by improved demand as well as the low base effect
Indian automobile market is expected to show strong volume growth across most segments during August 2014, led by improved demand as well as the low base effect, says Nomura.
"There has been some improvement, particularly in four wheeler industry volumes (both passenger and commercial vehicles -PVs and CVs) over the last two-three months. We expect the improving trend to continue this month as well. We would like to highlight that medium and heavy commercial vehicle (MHCV) industry volumes will likely see year-on-year (y-y) growth for the first time in more than two years led by improved demand as well as the low base effect – this will be taken positively by the market," Nomura said in a research note.
According to Nomura estimates, during August, car industry volumes will likely see 5% y-y growth, led by strong performance by Maruti Suzuki India Ltd (MSIL). It said, it expects 17% y-y volume growth in two wheeler industry volumes – Honda Motorcycle and Scooter India Pvt Ltd (HMSI) and Hero MotoCorp Ltd (HMCL) will largely lead strong industry growth. "We expect MHCV industry volumes to see 17% growth – freight rates have increased over the last few months which is positive for demand from fleet operators, in our view. In the tractors segment, we expect 6% volume growth for M&M in August largely due to lower base effect," Nomura added.
Nomura said that its check with dealers and companies suggest that customer enquiries and footfalls have increased over the last three-four months and there has been some pick-up in demand from first time buyers as well.
Giving more teeth to SEBI for clamping down on illicit money-pooling schemes and other frauds, the Government has notified a new law empowering the regulator
The union government has notied the Securities Laws Amendment Act that would empower market regulator Securities and Exchange Board of India (SEBI) to pass orders for attachment of properties, arrest of defaulters and to access call data records.
The Securities Laws Amendment Act, which was cleared by Parliament earlier this month, amends all legislations governing capital markets, would also facilitate setting up of a special SEBI court to fast-track investigation and prosecution process, including by granting approval for search and seizure operations in suspected cases of frauds.
The Act, which has come into force through a gazette notification dated 25th August, is part of the government and regulators’ efforts to tighten the noose around fraudsters in the wake of several cases of illicit money-pooling activities including by ponzi operators in various parts of the country.
The new Act has as many as 57 clauses to amend various sections of the SEBI Act and two other related legislations.
The Bill was passed by the Lok Sabha on 6th August and in Rajya Sabha on 12th August.
The notification comes more than one year after the first ordinance was promulgated in July 2013 to grant these additional powers to SEBI. The ordinance was promulgated for the second time in September last year, followed by a third ordinance in January, as a bill could not be passed in Parliament at that time to grant permanent powers to SEBI.
The third ordinance also lapsed late last month, leaving SEBI without these extra powers which were used by the regulator in nearly 1,500 cases during their validity period.
The ordinance, which had 30 clauses, was brought in against the backdrop of lakhs of small investors being duped by numerous fraudulent investment schemes across the country, like in the alleged Saradha scam in West Bengal.
The decision to fix pension entitlement of Rs1,000 under the EPFS-95 scheme will immediately benefit around 28 lakh pensioners who at present are receiving less than this amount
The Employees’ Provident Fund Organisation (EPFO) said it would start implementing its much awaited Rs1,000 minimum monthly pension and Rs15,000 higher wage ceiling social security schemes from 1 September 2014.
The government’s decision to fix pension entitlement of Rs1,000 under the Employees’ Pension Scheme 1995 (EPFS-95) will immediately benefit 28 lakh pensioners who get less than this amount at present.
The move to enhance the minimum wage ceiling for becoming a subscriber of EPFO to Rs15,000 per month is expected to bring about 50 lakh additional formal sector workers under the ambit of the PF body.
The government has also enhanced the maximum sum assured under Employees’ Deposit Linked Insurance (EDLI) Scheme to Rs3 lakh. The maximum sum assured under the EDLI works out to be Rs3.6 lakh including 20% ad hoc benefit over the prescribed amount under the notification.
This means that in case an EPFO subscriber dies, his family will be entitled to maximum sum assured of Rs3.6 lakh instead of existing Rs1.56 lakh.
The decision to provide the entitlement under EPS-95 was taken by the Union Cabinet in its meeting held on 28th February. However, it could not be implemented as the model code of conduct came into force after the general election dates were announced on 5th March.
The decision will immediately benefit about 28 lakh pensioners, including 5 lakh widows. In all, there are 44 lakh pensioners under the EPFO scheme.