Nasdaq offers $62 million compensation for Facebook IPO

 

Nasdaq’s offer, however, falls far behind the $100 million in losses that wholesale trading firms which trade on behalf of online retail brokerages demanded

New York: The Nasdaq OMX group will provide funds to the tune of $62 million to compensate clients who were disadvantaged by technical problems that arose during the Facebook IPO on 18 May 2012, reports PTI.
 
Nasdaq will offer a $62 million fund for voluntary accommodations, which is $22 million larger than the 6 June 2012 proposal, the exchange said in a statement.
 
Facebook had begun trading publicly on 18 May 2012 following one of the most anticipated stock offerings in history. But the stock’s public debut was marred by technical glitches at the Nasdaq Stock Market that delayed trading.
 
On the opening day, the orders failed to be executed, or in trader parlance—‘print’. Nasdaq was unable to deliver trade execution messages until mid-afternoon, leaving traders in the dark about whether their orders had gone through.
 
The proposed voluntary accommodation programme will be filed with the Securities and Exchange Commission (SEC), Nasdaq said.
 
“We deeply regret the problems encountered during the initial public offering of Facebook,” Nasdaq OMX Group chief executive officer and president Robert Greifeld said.
 
The independent Financial Industry Regulatory Authority (FINRA) has agreed to evaluate claims submitted by firms under the voluntary accommodations program.
 
All claims will be paid in cash, simplifying the process and eliminating trading credits from the earlier proposal.
 
Nasdaq expects to compensate the entire accommodation plan within six months.
 
“We failed to meet our own high standards based on our long history of providing outstanding technology to our members and exchange customers. We have learned from this experience and we will continue to improve our trading platforms,” Mr Greifeld added.
 
Nasdaq’s offer, however, falls far behind the $100 million in losses that wholesale trading firms which trade on behalf of online retail brokerages like Knight Capital, Citadel, and units of UBS and Citigroup demanded.

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No need to file tax returns if salary not exceeding Rs5 lakh

 

Earlier, it was obligatory for all salaried persons to file income tax returns under the Income Tax Act, 1961

New Delhi: Salaried employees earning up to Rs5 lakh a year need not file income tax (I-T) returns from this year, the finance ministry said today, reports PTI.
 
The exemption from filing I-T returns is applicable only if “the total income of the employee does not exceed Rs5 lakh ... (and) the annual interest earned from savings bank account is less than Rs10,000” for assessment year 2012-13.
 
Filing I-T returns is, however, necessary to claim refunds. The last date for filing tax returns is 31 July 2012.
 
There are about 85 lakh salaried persons in the country whose yearly income, including earnings from other sources like bank deposits, does not exceed Rs5 lakh.
 
The exemption will be permitted only if the assessee has received a certificate of tax deduction in Form 16 from the employer. The employees have to report income from interest on savings bank account to the employer to become eligible for exemptions.
 
Earlier, it was obligatory for all salaried persons to file income tax returns under the Income Tax Act, 1961.
 
Meanwhile, the tax department said special counters will be set up in Delhi and “Tax Kiosks” in various parts of Mumbai to assist people in filing income tax returns.
 
Unlike the previous years, the tax department will not set up any return receipt counters are at Pragati Maidan in New Delhi.
 
Instead, returns will be received at Civic Centre, opposite Ramlila Ground, New Delhi, from 26-31 July 2012.
 
The Mumbai Income Tax Department will set up “Tax Kiosks:, manned by Tax Return Preparers, at various locations in city to assist individual and the Hindu undivided family (HUF) taxpayers in preparation and filing of the returns. A tax payer will have to pay Rs250 to avail services of TRPs.
 
“Tax Kiosks” will be functional in certain residential areas on 22 July 2012 and in certain offices on 24th and 25th July 2012.
 
At present, income of Rs2-Rs5 lakh attracts 10% tax, Rs 5-Rs10 lakh 20% and above Rs10 lakh, 30%.

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Maruti’s Manesar plant closed for third day

 

The production loss has so far mounted to about Rs210 crore. The plant rolls out about 1,600 units per day. In terms of value, the per day loss is about Rs70 crore 

Manesar (Haryana): Maruti Suzuki India’s Manesar plant will remain closed for the third day on Saturday after the violence on Wednesday in which one senior company official was killed, while the police has said, most of the workers who instigated the incident have been identified, reports PTI.
 
“The plant will remain closed today,” a company spokesperson said.
 
The production loss has so far mounted to about Rs210 crore. The plant rolls out about 1,600 units per day. In terms of value, the per day loss is about Rs70 crore.
 
Meanwhile, the police said it has identified most of the workers who instigated the violence.
 
“No further arrests have been made so far but we have identified majority of the workers who instigated other workers and committed the crime,” DCP Gurgaon Maheshwar Dayal told PTI.
 
He said most of them are union leaders and executive members of the workers union who were having negotiations with management officials prior to the incident.
 
Already 91 employees, who were arrested, have been remanded to 14 days’ judicial custody on Thursday by a local magistrate.
 
On Friday, the company management had said it would not compromise on violence and was considering lockout of the plant as one of the options for now.
 
“Suzuki Motor Corp has asked us not to compromise on violence... we are cooperating with the police and district administration in the investigations...  if this is found to be planned and orchestrated from outside, I can’t accept this,” Maruti Suzuki India (MSI) managing director Shinzo Nakanishi had said.
 
However, MSI chief operating officer (administration) SY Siddiqui said while in the long term the company was committed to the smooth operations of the plant at Manesar, “in the short term we are considering various options, including a lockout”.

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