Govt to introduce new bill to amend SEBI Act

Just last month, the government had promulgated an ordinance amending the securities law that would provide more powers to SEBI and plans to introduce a new bill to replace the ordinance in the ongoing Monsoon session

The Indian government on Thursday withdrew a bill to amend the Securities and Exchange Board of India (SEBI) Act ahead of introduction of a new bill that would give more powers to the market regulator.


Finance minister P Chidambaram proposed in the Lok Sabha to withdraw the bill, which was introduced in March this year, to amend the SEBI Act. The proposal was passed by the House.


The withdrawn bill was passed by the Rajya Sabha on 11th March and was tabled in the Lok Sabha the next day.


In July, President Pranab Mukherjee had promulgated an ordinance amending the securities law that would provide more powers to the capital market watchdog.


The government plans to introduce a new bill replacing the ordinance in the ongoing Monsoon session.


With amendments, SEBI would have more powers to crack down on ponzi schemes, access phone call records to check insider trading and carry out search and seizure operations.


Last month, the government had said promulgation of the ordinance demonstrated its firm commitment and resolve to act with speed and alacrity to curb irregularities and frauds in securities market.


Tata Motors: Why is JLR success not being replicated in India?

Tata Motors unit Jaguar Land Rover is outperforming luxury brands like BMW, Audi and Mercedes overseas. However, on domestic front the Tata group company continues to report dwindling sales. Is it because the automaker is not experimenting with different, fresh designs?

Tata Motors, the country's largest vehicle maker, continued reporting disappointing sales performance. During July 2013, its overall sales fell 30% to 51,468 units. Its domestic medium and heavy commercial vehicle (MHCV) sales fell 28.5% to 9,758 units, while light commercial vehicle (LCV) declined 19% to 26,609 units. Tata Motor's domestic car sales fell 31%, while utility vehicle (UV) sales tumbled 56% taking its domestic passenger vehicle (PV) sales 60% down to 11,522 units from 26,908 units a year ago.


“The business was affected by a weak operating environment in the standalone business, but it was offset by strong demand, growth in volumes, richer product mix and favourable foreign exchange at Jaguar Land Rover (JLR),” the company said in a release.


During the June quarter, the Tata group company said its sales, including exports, fell 19% to 1.54 lakh units as weak macro-economic environment and competitive pressures on pricing, continued to affect the operations during the quarter.


Interestingly, while the Tata group company has taken a beating on the domestic front, its unit continued to report strong sales. During July 2013, JLR's US retail volume grew 31% to 5,663 units, outperforming other luxury OEMs like BMW, Audi and Mercedes. Jaguar volumes have increased by 59%, helped by the launch of new Jaguar F-Type and strong growth in XF and XJ models. Land Rover volumes have increased by 22%, led by strong improvement in Range Rover volumes, up 111% to 1,420 units.


Following strong response to its new products and powertrain options, Jaguar’s wholesale and retail volumes grew 57.8% and 28% to 18,577 units and 17,459 units, respectively during the first quarter.


The robust performance from JLR only shows that unless you keep introducing new models and not just keep adding variants, you would not be able to sell vehicles. And this applies to all automakers across the world. So the question is why Tata Motors is unable to replicate its JLR success story at its home ground?


It must be noted that after launching Nano, the world's cheapest small car, in 2009 the Tata group company has not launched any new, noteworthy model. Since the launch of the Indica in 1998, the company brought out variants like Indica V2, Indica V2 Turbo Diesel, Indica V2 Xeta and Indica Vista, but all these models have failed to maintain steady sales.


Passenger car sales at domestic front for Tata Motors have been lacklustre primarily due to softening of euphoria, as products like Indigo Manza and Vista are getting older. The company has not yet announced any new variant for the Indigo Manza launched in October 2009 or Indigo eCS launched in 2010, whereas the Indica Vista, though a low-cost car, is facing stiff competition from other players.


After receiving lacklustre response for its Aria, the high-end SUV, the company preferred to play safe. Instead of coming out with a new offering in SUV space, it stuck with its Safari range (launched in 1998) and launched new variants with few modifications. However, in an environment with stiff competition, over-dependence on its Safari model, which was never a top selling SUV in any case, is not going to help Tata Motors for too long. The company is even too reluctant to replace its old warhorse, the Sumo (launched in 1994) with a new model. Instead, it is coming out with new variants based on the same, old Sumo. By the way, do you remember Tata Sierra, a multi-utility vehicle with which Tata entered in passenger vehicle market in 1991 or Tata Estate, a station wagon launched in 1992?

While other carmakers are experimenting with different and fresh designs, Tata Motors is not ready to leave the 'bean shape' of the Indica. In fact, the company is so smitten by the 'bean theme' that it has expanded the bean shape in its other high-end models as well, including its SUV variant Aria. Even the Nano comes in a modified bean shape.


This is in contrast with other prominent players like Maruti Suzuki, the leader in PV segment and Mahindra & Mahindra (M&M), the leader in UV market. Maruti Suzuki, the unit of Japanese Suzuki Motor Corp, has at least one model in every segment based on price and design. It offers 15 models, Maruti 800, Alto, Maruti Alto 800, Wagon R, Estilo, A-star, Ritz, Swift, Swift DZire, SX4, Omni, Eeco, Gypsy, Grand Vitara, Kizashi and the newly launched Ertiga.


On the other hand, M&M, after tasting success with its Marshal, Commander, Armada and Bolero models, shifted gear with Scorpio, its SUV model. Even after the grand success of Scorpio, the company moved ahead and launched its high-end model XUV500, which is based on a completely new platform. At present, M&M sells over 20 types of vehicles, including SUV, cars, tractors, three and two wheelers.


On the other hand, Tata Motors continues to churn out products based on the same, old platform. For a company like Tata Motors this is surprising, especially, when it has majority stake in Italian design and engineering firm Trilix SRL.


After sticking to the bean shape for over 15 years (remember Indica was launched in 1998), it is high time for the Tata group company to move to other fresh designs, before someone starts comparing Tata cars with the everlasting (and unchanging but lovable) Ambassador from Hindustan Motors.




4 years ago

I agree in toto - the Tata car service network was out to fleece the Indica owners - and I really suffered at their hands.

My left front tyre would regularly get punctured and the dealer refused to anything - I asked him if they had escalated it to the company, still no response. When I ran into a company guy at the dealer network, he refused to give me his card or personal email ID !

Naturally, when I upgraded, I chose Swift Dzire instead of an Indigo Manza - which should have been the natural choice.


4 years ago

Their service sucks and marketing sucks. What do you expect?

Abhijit Gosavi

4 years ago

By how much has the Tata's share in the domestic market for cars shrunk?


4 years ago

The Indian car buyer has been bitten too often by Tata Motors' pathetic after sales service. This effect is probably rubbing off on JLR in India too. I see no hope for TML in the passenger car segment. They will continue to be cross-subsidized by the commercial vehicle business, and hopefully, Cyrus Mistry, the new Tata group chairman, will give the passenger car division a quiet mercy killing after Ratan Tata s gone.



In Reply to jaykayess 4 years ago

It will be sad death for an Indian brand. :(

Indiabulls buys Amaprop's entire stake in its unit for Rs260 crore

Private equity firm Amaprop earned Rs129 crore, almost double the money it paid in 2005 to buy stake in Indiabulls Finance Company

Indiabulls Housing Finance Ltd said it bought US-based private equity firm Amaprop Ltd's entire 42.5% stake in its unit Indiabulls Finance Company Pvt Ltd  for Rs260 crore.


"Despite the ongoing adverse business and economic environment resulting in substantial erosion in value of most financial companies, Amaprop made a healthy return on its investment," the company said in a statement.


In 2005, Amaprop had bought 42.5% stake in Indiabulls Finance for Rs131 crore.


Indiabulls Finance Company Pvt Ltd is a non-deposit taking non-banking finance company (NBFC), registered with and regulated by the Reserve Bank of India (RBI).


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