Companies & Sectors
Reliance MediaWorks, Galloping Horse to buy Digital Domain for $30.2 million

While RMW will hold 30% stake in James Cameron's Digital Domain Productions, majority stake would remain with China-based Galloping Horse America

New York: A bankruptcy court in the US has approved the proposed $30.2 million sale of Hollywood film-maker James Cameron's Digital Domain Productions to Reliance MediaWorks (RMW) and China-based Galloping Horse America, reports PTI.
Following the approval from the US Bankruptcy Court in District of Delaware, the companies are set to sign final agreements for transfer of the business of Digital Domain Media, which has provided special effects to Hollywood blockbusters like 'Titanic', 'Transformers' and 'The Curious Case of Benjamin Button'.
The winning joint bid for the company, which had filed for bankruptcy protection earlier this month, was announced yesterday by Anil Ambani-led Reliance Group's RMW and China's Galloping Horse, which provides film and TV financing, production, distribution, advertising and publishing services.
"A joint venture, led by Galloping Horse America LLC in partnership with Reliance MediaWorks has submitted the winning bid to acquire the visual effects, Mothership Media and certain other businesses and assets of Digital Domain and subsidiaries for $30.2 million at a 21 September 2012 auction in New York," RMW had said in a statement yesterday.
While RMW will hold 30% stake, the majority would remain with Galloping Horse in Digital Domain joint venture.
The two companies will acquire all assets constituting the businesses of Digital Domain in feature films, advertising, visual effects, commercial production, studios in the US and Canada and a co-production stake in the feature film "Ender's Game".
The businesses will continue to operate in the normal course, with the joint venture assuming ownership.
RMW has been working with Digital Domain for past few years on various projects.


Indian banks appears insulated from financial crisis: IMF

According to International Monetary Fund, countries like Australia, Canada, India, and Malaysia have a relatively low degree of exposure to international banking and also avoided the worst of the effects of the global financial crisis

Washington: India seems insulated from the worst of effects of global financial crisis as it has relatively low degree of exposure to international banking, International Monetary Fund (IMF) has said, reports PTI.
"India and Malaysia appear insulated from foreign banks by almost all indicators when compared with all peer groups, except developing Asia and the economies that make up the BRIC group," said the report released on Tuesday in which IMF asked if some banking systems withstand international contagion because they are less globally integrated.
"Australia, Canada, India, and Malaysia have a relatively low degree of exposure to international banking and also avoided the worst of the effects of the global financial crisis," the report said.
Both India and Malaysia have low foreign bank presence, and banks there have a very low level of foreign assets in their balance sheet, it said.
Malaysia had relatively low reliance on foreign liabilities compared with other peers, whereas in 2007 India was close to the BRIC (Brazil, Russia, India, China) average, the report said.
Observing that the recent episode of global financial turmoil highlights the risk of international contagion and the potential resiliency of less integrated banking systems, the report explore the banking system "openness" and regulatory frameworks of four jurisdictions generally regarded as less globally integrated, all of which fared relatively well in the financial crisis.
It concludes that the funding structure of banks could be more important than lack of foreign bank ownership for financial stability.
According to a table mentioned in the IMF report, India has less than 10% globalisation of its banking system.
India and Malaysia explicitly restrict entry by foreign banks, although both economies have relaxed the policy somewhat, it said.
IMF report said the number of branches a subsidiary can set up had been restricted.
"The maximum foreign ownership stake in a domestic bank is 30%. In India, foreign bank entry has been through branches, and the number of approvals (including expansion of branch networks) is strictly controlled," it said.
"Foreign banks that already have operations in India are not permitted to own more than 5% of shares in domestic banks.
Other foreign banks must seek approval to own more than 10% of shares in an Indian bank.
The authorities are currently considering encouraging the use of subsidiaries. The share of foreign-owned bank assets in total assets is subject to a ceiling," the report said.




4 years ago

IMF would have had similar opinion / forecasts about the American and European Banks too.

SEBI seeks ASBA facility at all branches of designated banks

SEBI said all 40 self certified syndicate banks should provide ASBA facility at their branches by December-end

New Delhi: Market regulator Securities and Exchange Board of India (SEBI) has asked banks, authorised to accept application supported by blocked amount (ASBA) forms wherein bid amount for public offer shares remain in investors' accounts till allotment, at all their branches by the end of 2012, reports PTI.
SEBI introduced ASBA facility in 2008, under which an application for subscribing to an issue involves blocking of application money in the bank account.
The facility is provided through self certified syndicate banks (SCSBs) and any bank desirous of offering ASBA facility need to register with SEBI. However, the facility is not available at all the branches of such banks.
In a circular issued, SEBI said that it has been felt that ASBA facility should be provided at all branches of self certified syndicate banks (SCSBs).
To achieve this goal, SEBI said that in the first phase each SCSB should designate 50% its total branches as 'Designated Branches' for ASBA by 31 October 2012.
In the second phase, each SCSB should designate all of its branches as 'Designated Branches' for ASBA by 31 December 2012.
SEBI also asked all the SCSBs to submit a status report for each of the two phases within 15 days from the due date of the respective phases.
As per the latest data available with SEBI, there are a total of 40 banks registered as SCSBs.
Out of these, the ASBA facility is available at just one branch in cases of at least nine banks, including HSBC, Citibank, Deutsche Bank and BNP Paribas. Besides, the facility is available at less than 20 branches for most of the banks, including giants like ICICI Bank, SBI and HDFC Bank.
The regulator said that it was announced in this year's union budget there was a need to simplify the process of initial public offers (IPOs), lower the capital raising cost and help companies reach more retail investors in small towns.
"Based on the analysis of the current presence of ASBA facility, it is felt that there is substantial scope for increasing the reach of ASBA facility to make the application process more convenient for investors," SEBI said.
"Towards this end, consultations were held with Reserve Bank of India, Indian Banks' Association and other market participants, to explore the possibility of providing ASBA facility at all branches of Self Certified Syndicate Banks (SCSBs)," it added.


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