Due to a depreciating rupee, which has declined by about 10% in the last three months, mobile handsets are set to become costlier by 10%
Prices of mobile handsets marketed by home-grown companies are set to increase by up to 10% due to a depreciating rupee, which has declined by about 10% in the last three months.
“The value of rupee has depreciated by almost 10%. Almost all companies are about to run out of their stocks which they had booked months in advance.
“The margins in handset business are very low and companies will have to increase price of their handsets,” National President of Indian Cellular Association (ICA) Pankaj Mohindroo said.
He added that companies are expected to increase prices in the range of 5%-10%.
Karbonn Mobiles Executive Director Shashin Devsare said that his company is also looking at increasing the prices in the range of 7%-10% across all its handsets.
“Despite the continuous fall of Indian rupee against US dollar in the past few months, Karbonn has absorbed the burden but now it is increasingly becoming difficult to retain same price levels," he said.
However, foreign companies manufacturing mobile handset in India are indicated they are evaluating the situation. “As on date, there is no decision to increase price but we are watching the situation closely," Samsung spokesperson said.
Korean mobile firm LG said that it will not increase price of its handsets in near future, while market leader Nokia remained silent on query of price rise.
Rupee has fallen to almost 50 against a dollar on from the level of around 44 in July, mainly due to increasing demand for dollars by foreign institutional investors and oil companies. Besides, economic crisis in Europe and looming slowdown in world economy are other responsible factors for the rupee devaluation.
In addition to weakening of rupee, the Karbonn Mobiles Executive Director said, various states across India are levying different value added tax (VAT) for mobile phones, adding an additional burden on consumers.
The Indian Cellular Association (ICA) is the apex body of the mobile industry comprising manufacturers, brand owners, application and solution providers, distributors, retailers and eminent consumers of mobile handsets.
The members of ICA include mobile phone industry players like Nokia, Samsung, Motorola, Sony Ericsson, LG, Blackberry, Micromax, Lava, Zen and others.
The new KYC form will have space for giving identity details including name, nationality, PAN and/or UID number besides details like address, gross annual income and occupation
Capital market regulator SEBI announced introduction of uniform forms and documents for the purpose of customer identification by different market intermediaries like stock exchanges and mutual funds, a step intended to bring uniformity to the process.
"With a view to bring about uniformity in securities markets, it has also been decided that the same Know Your Customer (KYC) form and supporting documents shall also be used by all captioned SEBI registered intermediaries," the regulator said in a circular. The new rule will be effective from January 1 next year.
"The intermediaries shall take necessary steps to implement this circular and ensure its full compliance in respect of all new clients from January 1, 2012," it said.
This comes after SEBI received feedback from the investors that various registered intermediaries follow different KYC requirements.
"In case of mutual funds, portfolio managers, collective investment schemes and venture capital funds, though certain basic requirements have been prescribed for Customer Due Diligence (CDD) or KYC, no specific KYC format has been prescribed. As a result, these intermediaries use different KYC formats and supporting documents," it said.
The new KYC form will have space for giving identity details including name, nationality, PAN and/or UID number besides details like address, gross annual income and occupation. In addition, additional information specific to dealing in stock exchanges is also included in the form.
The customers will also have to furnish various documents relating to their identity, proof of address and other facts. In case of corporates, they will have to provide copy of balance sheet for last two financial years, copy of latest holding pattern in their firm, copies of memorandum and articles of association and copies of board resolution for investment in securities market.
Foreign Institutional Investors will have to furnish copy of SEBI registration certificate, while registered societies will have to provide copy of such certificate and list of managing committee members.
India is home to the second largest number of affluent people with a whopping three million households which have over USD one lakh of investible funds
With as many as one-third of its population still living in poverty, the country is also home to the second largest number of affluent people with a whopping three million households which have over USD one lakh of investible funds.
According to a survey by the global market research agency TNS, while the US still is the world's most prosperous country with 31 million affluent households, India, China and Brazil have overtaken many European countries in this measure of consumer wealth with three million affluent households each in these countries which have over USD one lakh investible funds.
In other words, as many as 27% American households are affluent, while this is only 1.25% and 0.75% in regard to India and China respectively, thanks to the sheer size of their population. Though the cut-off money is USD 1 lakh for all the countries it is just USD 40,000 in Brazil, where this 3 million households constitute five per cent of the overall number of households.
Releasing the report, TNS business and finance director Reg van Steen said, "our research confirms that emerging markets will become new centres of affluence in coming years. India and China have already surpassed major European markets like Germany and France in this. It's interesting to see that the entrepreneurial spirit of people in these markets is already paying off in terms of personal wealth."
TNS India senior vice-president Chandrasekhar said, "a lot of people believe that there is considerable level of latent affluence in this country. And this study gives some pointers on the extent of the investment potential that the country offers as well as some relevant insights for tapping this potential."
The study titled the TNS Global Affluent Investor Survey, is based on interviews of 12,092 affluent decision-makers across 24 markets, including the US, India, China, Canada, Brazil, France, Germany, Britain, Belgium, the UAE, Israel, Hong Kong, Singapore and Australia. The online survey was carried out during May-August this year.
The findings also demonstrate regional contrasts in terms of what the affluent actually invest in. While in China, India and Germany the affluent are keen investors in precious metals (35, 33, and 23 per cent of respondents respectively), this is only 3 per cent in Sweden, Norway and the Netherlands, and even lesser at 2% in Denmark and Israel.