Failure on reforms like GST, land law could hit investment: Moody's
Moody's Investors Service on Wednesday said the failure to implement reforms by passing the GST and land bills in parliament could potentially hurt investments amid weak global growth and prove to be a "downside factor" for Indian companies.
"It seems highly unlikely that the major reforms will get enacted by the upper house of the Indian parliament where the ruling coalition is in minority. A failure to implement these reforms could hamper investment amid weak global growth," Moody's vice president Vikas Halan said in a report.
"The government is unlikely to win a majority in the upper house if it keeps losing state elections like it did recently in Delhi and Bihar. Opposition parties are unlikely to allow key reforms to go through," he added.
The constitution amendment bill for Goods and Services Tax (GST) has been passed by Lok Sabha, and is pending in the Rajya Sabha, where the ruling NDA does not have majority.
Minister of State for Finance Jayant Sinha told reporters here on Monday that the government is making efforts to convince the opposition about the GST bill.
"We are trying to talk with them (opposition) about all the aspects of GST. We all recognise how important this is for the economy so we are in continuous discussion to see what we can do to get it passed in the winter session," he said.
The American agency cautioned that continued weak global growth and the prospect of the US Federal Reserve raising interest rates may also have an impact on Indian companies.
"The corporates remain vulnerable to the volatile Indian rupee as against the US dollar and to low commodity prices, which has in turn led to a sharp decline in external trade," Halan said.
"The fall in commodity prices has benefited many Indian corporates given the country's status as a net importer of raw materials and its recent history of high inflation. But low commodity prices will result in deterioration of credit metrics of metals and mining companies," he added.
Other "downside factors" listed by Moody's are loss of reform momentum leading to annual GDP growth falling below 6 percent, resulting in deterioration of credit metrics, besides higher interest rates brought on by rising inflation and exchange rate volatility, resulting in a tight funding environment.
Among the upside factors include further government measures that could sustain the GDP growth at 8 percent plus, leading to a broad-based improvement in corporate credit metrics.
Also, improvement in the global macroeconomic environment leading to stabilising commodity prices and credit markets would be positive, it said.
Sector-wise, Moody's expects upstream oil and gas companies to benefit from lower fuel subsidy burdens, although low crude and domestic natural gas prices will continue to hurt profitability.
However, refining and marketing companies should benefit from healthy margins as demand growth outpaces expected capacity additions, Moody's said.
Moody's negative outlook for the steel industry reflects elevated leverage and an extended period of low prices owing to continuing steel imports, while the negative outlook for metals and mining companies reflects bleak global commodity prices.
In real estate, Moody's expects demand to improve in 2016 on the back of lower interest rates, although approval delays could postpone project launches for property developers.
In the auto sector, Moody's said that retail sales volume will grow 6 percent in 2016 on sustained growth in passenger vehicles sales and recovery in commercial vehicle sales.
Disclaimer: Information, facts or opinions expressed in this news article are presented as sourced from IANS and do not reflect views of Moneylife and hence Moneylife is not responsible or liable for the same. As a source and news provider, IANS is responsible for accuracy, completeness, suitability and validity of any information in this article.



Ganesh Kamat

1 year ago

GST Simplified,
1) For Big Tax collections
take 1% Tax from 20 Taxpayers
than 20% Tax from one Taxpayer.

2) Simple Tax of 1% on Receipt /Transaction /Interest /Sale /Gift /Loan /Benefit /Salary /Dividends /Rent /Custom.....
any & all inward cash, Cheque etc.

3) Average say on Rs 30 L Receipt,
Pay Rs. 0.3 Lac Tax per year.
If Taxpayers = 60 Cr.
Tax collection will be 18 L- Cr.

4) Simple Tax means more Taxpayers, more collection & No refund Problem.

5) At present, we have say @ 3 Cr Taxpayers,
with Collection of say @ 3.5L-Cr,

6) So with 1℅ Tax, the Taxpayers will work to improve Business / Goods Services/ R. & D. / Social work.
So more Employment, make in India, less Farmer Suicide & Peace of mind to the people.

7) Bank Account number is your mobile number.

8) Tax payment by your mobile number @ RBI a/c,
In bank transaction, the Bank will deposit your 1℅ Tax by your mobile number @ RBI a/c directly.

9) For cash Transaction pay similar to Post paid Mobile charges,
to your mobile number @ RBI a/c.
Most will pay if the Tax is 1% & simple to pay.

10) Your Bank Account Number should be mobile number & connected to PAN/ AADHAAR /Passport/ Election Card etc. For Simplicity.

11) Tax collection will be distributed to State & Local bodies, say 10% each, from the place of collection.

12) Also add 1% more (L.P.F.)
Less Privilege Fund,
similar to PPF for,
social / self benefit,
to give Power to the people for Social Cause / in your bad days.

13) In short Pay Rs. 20- for every Rs. 1,000- Received.

i) Rs. 10- as tax to RBI
ii) Rs. 10- in your (L. P. F.) a/c. Could be use for social cause/ for your bad days.

14) L. P. F. (Less Privilege Fund)
of 18 L- Cr, with 60 Cr voters, will reduce dependency on the Government for the Social development. Fund will be used for the Social cause / in your bad days.

15) Keep faith in 60 Cr voters, as they will take care of their neighbours, in need.
Also most will pay, if Tax is 1℅ & Simple to pay.
Only Indian can make better India.

16) Can consider more tax for Higher Receipt, say above 0.5 Cr per year, payable at the year ending.

17) All Transactions are Traceable as mobile number is once Bank a/c number & connected to PAN/ AADHAAR / Election card.....
So, No Corruption & Black Money Problem.

18) Babus Harassing the youth,
Traders,Farmers, Voters.. who wants to work.
Babus are ruthless as they
pay "Protection Money" to......?
for Posting/ Promotion/ Permit...
Administrations Reform is a Must,
For getting Votes too!!

19) Farmers suicide can get reduced, by encouraging them to sell their farm products on Railways to commuter & roads to motorists, also we need more Passenger Train, to help farmers to sell farm products, to nearby Towns.

20) Expecting Feedback on How to make India Peaceful Place by Refined, Simple Laws.
No blame game please.
Media/ Babus /Netas /Judicial Role is Eminent along with People.

For "Sare Jaha Se Achha Hindustan Hamara." forward this message.

Market men question SEBI’s new IPO application format
The latest move by stock markets regulator SEBI to introduce an abridged prospectus with a new IPO application form does not solve either the purpose of transparency or the retail investor interest as it raises several questions than simplifying the procedures, say market analysts.
The SEBI has issued a notification introducing a ten-page format -- five sheets, printed on both sides -- replacing the 100-page version of the prospectus, to be issued with IPO application forms. The new format will be effective December 1, 2015. 
It provides for increasing the font size of the application form, but at the same time abridges the material information that ought to be given to the investor about the company and its business.
For instance, as a legal expert says, the all-important risk factors section which normally runs into 35 to 40 pages is supposed to be condensed to 500 words. Even the section on the company’s business is supposed to be not more than 500 words. 
Market analyst Arun Kejriwal, director of KRIS research, says “the increase in font size on page One which has to be filled by applicant is welcome because one can read the columns without using a magnifying glass.” 
But, he says, the guidelines on inside pages leave much to be desired. For instance, the selection of risk factors becomes subjective. “There is a lot of ambiguity as to which factor is important and which is not. This could result in playing with fire,” he says. 
Appreciating SEBI’s consistent efforts to make stricter compliance norms and increase the number of disclosures to the investor community, a top corporate lawyer said the latest move defeats the very purpose for which SEBI has been working. 
On the one hand, SEBI has been working on SME listing and norms and fund raising by startups, while on the other it is making regressive moves like the abridged prospectus, he said. 
Market experts opine that the retail investor will be unable to take decision on investing in IPOs on the basis of limited information given in the ten-page booklet. This could lead to increased retail apathy to IPOs, they aver. 
A close watch of the retail participation in primary markets recently shows that the segment’s participation has been quite discouraging and, as per media reports, SEBI itself has taken a serious view of this. 
Retail quotas in two major IPOs recently - InterGlobe Aviation (Indigo) and Coffee Day Enterprises - were not fully subscribed. 
“As it is, the retail participation in IPOs is turning out to be very poor. Our apprehension is that the common investor will develop further disinterest as the information available to him readily is very limited to allow him to take a considered decision to put his hard-earned money into IPOs,” said a merchant banker, speaking on condition of anonymity. 
Another merchant banker expressed the apprehension that company promoters would print fewer copies of the full-fledged offer document running into hundreds of pages and it will not be accessible to either broking or the investing community at large.
“Though we will have the option of tapping the online version of offer document, I seriously doubt how many investors in small centres in particular will be able to access it,” he said. 
Data in public domain shows that India has over 350 million Internet users but the personal computer installed base is merely 55-60 million. Out of the total number of PCs installed, 55 percent are used by individual consumers and the remaining 45 percent by businesses and institutions. This poor penetration certainly limits the scope of retail investors tapping the computers for downloading IPO prospectus. 
The other major consumer of the Internet data is the large mobile user base -- 65 percent of India’s Internet traffic as of May 2015 was driven by mobile devices.
As of February 2015, only 13 percent of subscribers in India were using 3G and 4G networks. Based on Cisco’s 2014 VNI Mobile forecast, India is at the lower-end of global use of data. 
A major broking house partner said: “However smart, you cannot use smart phones to download a 500-page offer document and then read it before filling up an IPO application form.” 
“At this rate, I wonder how the government will be able to fulfill its budget announcement to help companies reach out to retail investors,” he said.


Disclaimer: Information, facts or opinions expressed in this news article are presented as sourced from IANS and do not reflect views of Moneylife and hence Moneylife is not responsible or liable for the same. As a source and news provider, IANS is responsible for accuracy, completeness, suitability and validity of any information in this article.



rahul agrawal.

1 year ago

According to my view SEBI does not want retail investors to participate in IPO'S, that why without collecting any proper data they are in a hurry to implement such system.

Narendra Agre

1 year ago

on the news of Sebi proposes to reduce nos of pages , its really concern, since the news flow available on the company would be very limited. prospectus is already shortage in the market and fail to understand Sebi's reason for same to do.
if someone knows the reason please advise why sebi is doing the same.

Narendra Agre

1 year ago

on the news of Sebi proposes to reduce nos of pages , its really concern, since the news flow available on the company would be very limited. prospectus is already shortage in the market and fail to understand Sebi's reason for same to do.
if someone knows the reason please advise why sebi is doing the same.


1 year ago

Every person of average intelligence should read good books on investing and invest in equities directly. Information about companies is easily available on the net including annual reports. Devoting one hour in a week to study equities is a good practice which will help one to invest sensibly. This will help us avoid drowning in paperwork like KYC which is what the SEBI chairman wants us to do. KYC is only KICK YOUR CUSTOMER. Staying away from MFs is the investors weapon against meaningless form filling.

Pravesh P

1 year ago

Current SEBI chairman's tenure is even worse than the previous ones. If the previous one drove distributors away from MF (mutual fund), this one has driven investors away.

Few years back I was investing via MFs only. But thanks to AMFI lobbying and expense ratio rulings, FACTA & KYC compliance, I have moved out of MF and moved to direct equity.

R Balakrishnan

1 year ago

The capital market regulations will always be in favour of the capitalists. The investment bankers, the lawyers and others have a stake in ensuring that the investor does not get timely and relevant information. SEBI can shout all it wants, but is a tool to retain status quo

The Painting That Saved My Family From the Holocaust

A frightened young woman left her apartment in Munich in November 1938 and returned with the visa that saved her family. A team of German journalists launched an improbable search to find the missing artwork and tell its story


Seventy-seven years ago this week, my grandmother left her fourth-floor apartment in Munich carrying a painting by Otto Stein, a modestly popular German artist. Earlier that month, the Nazis had launched a nationwide pogrom against Germany's Jewish minority, a rampage in which gangs of men burned stores, schools and synagogues. In the aftermath of what became known as Kristallnacht, the Gestapo rounded up hundreds of Jewish men and sent them to the Dachau concentration camp. Among them was my grandfather, Jakob Engelberg.


Paula Engelberg never talked about what happened during her visit to the Swiss consulate. But when she returned home a few hours later, she no longer had the painting. What she had was the most precious of commodities in Nazi Germany of 1938: A valid visa to enter Switzerland.

The consulate issued only 600 such documents that year, up from just 200 the previous year.


This particular one secured the release of my grandfather from Dachau after two weeks, allowing my grandparents, father and aunt to escape Germany and ultimately settle in the United States. It made possible the existence of 20 more human beings.


I'm one of them.


Five years ago, I told this story to Christian Salewski, a German journalist who was working at ProPublica for several months as part of a fellowship. I said I had always wondered what had happened to the painting, not because it was particularly valuable 2014 works by Stein can be found on eBay selling for a few hundred dollars 2014 but because I wanted to know its story.


As a journalist, I imagined any number of possible narratives. Perhaps the painting was given to a diplomat who dispensed visas to desperate Jews, a Schindler of the Swiss diplomatic service. Perhaps it had been sold to an art dealer to raise the money for a bribe. Maybe it was simply a gratuity for a service rendered.


I had fantasies of finding a house full of paintings in Switzerland, the owners unaware of the lives saved by their existence.


I told Christian that we had only one real clue. My family had managed to leave Germany with a second painting by Stein, a portrait of a young woman whose gaze seems to follow you, Mona Lisa-like, across a room. In my father's memory, this painting, which he called "My Mona Lisa," bore a striking resemblance to its missing sister in both style and subject. The remaining painting hung in our family's living room, a testament to our past as refugees.


Early this year, Christian and three colleagues decided to launch what they called Kunstjagdt 2014 "art hunt." Their plan was to spend six weeks using social media like WhatsApp and stories on the radio, on television and in newspapers to search for the artistic equivalent of a needle in a very large hay stack.


Their reporting unfolded against the backdrop of the exploding refugee crisis in Europe and the Middle East. It was not hard to see parallels.


Then, as now, a desperate group of people sought to escape an increasingly terrifying situation. Then, as now, most countries in the world turned their backs. It's sometimes suggested that German Jews of the 1930's were a delusional group, waiting far too long to flee a country in which they had grown too comfortable. The truth as documented by the Art Hunt team is that then, as now, there was hardly anywhere to go.


Jakob Engelberg applied to emigrate to the United States in 1934, shortly after Hitler came to power. He waited four years for his number to be called in America's restrictive, Depression-era immigration system. My aunt told me years later that people who applied for U.S. visas just a few weeks later in 1934 died in the Holocaust.


My father and his sister recall that Hitler's speeches and the Nazi Party's program persuaded Jakob Engelberg that the Jews of Germany faced an existential threat, one sufficiently dire to persuade him to abandon a comfortable middle-class life as a traveling salesman living in one of Europe's most beautiful cities.


The records dug up by the Art Hunt team suggest he was trying to live his life as an ordinary German. According to a Gestapo report Christian found in the Munich archives, Jakob Engelberg "read the rather liberal Frankfurter Zeitung but besides that was quite an apolitical person who didn't show party flagging from his window on national holidays."


I never got the chance to ask him precisely what persuaded him to try to leave Germany at such an early date. Jakob Engelberg died from a cerebral hemorrhage in 1942, long before I was born. (The German government would eventually make a small payment in compensation for his death, acknowledging that it was caused, at least in part, by blows to the head he received while at Dachau.)


The U.S. visas for Paula Engelberg and the two children, Melly and Edward, arrived in October 1938. Jakob's visa was delayed because of his Polish nationality, a less-desirable category of immigrant under U.S. law for which fewer visas were issued. And so he was imprisoned in the barracks of Dachau on Nov. 10, 1938, a Jew still waiting for his papers to leave the country.


These facts were confirmed by records recovered from archives in Germany and Switzerland by Christian and his Art Hunt colleagues: Fredy Gareis, Marcus Pfeil and Carolyn Braun.


The search for the painting proved much more difficult. The team identified the man who stamped the precious visa: Wolfgang Gribi, a Swiss diplomat whose wife lived to be over 100. Unfortunately, she died two years ago.


They tracked down an expert on the art of Otto Stein who helped them identify 14 possible "suspects" that were similar to my family's Mona Lisa. Most could be eliminated by date or provenance and my father eliminated several more in a Skype conversation (his first, at age 86). Eventually, the team narrowed it down to one particular painting that was bought by a private collector in Munich in 1950 after suffering what was described as "war damage."


Christian flew to the United States and showed the painting to my father.


Not surprisingly, he could not be certain. It had, after all, been 77 years since he had seen the missing painting. Still, he said it touched him in ways that none of the other possibilities had.

There remained a piece of evidence that seemed to undermine the case for this particular painting. My father's memory of what happened in November, 1938, confirmed on many other key points, was that his mother had rolled up the painting before leaving for the Swiss consulate. Yet the newly discovered painting is on stiff paper that could not have been rolled.


As a journalist, of course, I'm familiar with the vagaries of human memory. To be fair, if my father's recollection is accurate, the painting turned up by the Art Hunt cannot be The One. But it is also possible that the traumatic events of those days left my father with a memory that is inaccurate in this one regard. In all likelihood, we will never know.


On Friday, my wife and youngest daughter flew with me to Munich to watch the premiere of a movie that tracks the four journalists on the Art Hunt. The story was as much about a new generation of Germans looking unblinkingly at the past as it is about a long-lost piece of art. The movie was shown at the Jewish Museum of Munich as part of an exhibition of both paintings.

In the question-and-answer session that followed the showing, there was a surprise: The Art Hunt team announced that the owner of the Stein painting had decided to give it our family. Although he had bought it long after the war, and the identification is far from confirmed, Christian told me he didn't feel right having it in his collection if there was any possibility it had been traded for a visa.


Jakob Engelberg's Swiss visa was dated Nov. 24, 1938 2014 that year's Thanksgiving. He was released from Dachau the next day and was out of Germany by early December. Weeks later, my father, then 10, began his life as a refugee, living with a distant relative in Lakewood, New Jersey. He was enrolled in public school and tried to learn in a language he spoke not at all.


As American presidential politics echo with calls for registries of Muslims and governors say they won't accept Syrians whose circumstances are similar to my Dad's, I know what I'm thankful for this Thanksgiving. The two paintings are hanging at the Jewish Museum of Munich, side by side. In a few weeks, they will be returned to my father.


ProPublica is a Pulitzer Prize-winning investigative newsroom. Sign up for their newsletter.

















Shirish Sadanand Shanbhag

1 year ago

Too long and complicated story to enjoy it in reading.

Shirish Sadanand Shanbhag

1 year ago

Too long and complicated story to enjoy it in reading.

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