Companies & Sectors
Russia's Rosneft inks deal for 49 percent stake in Essar Oil
Russian oil major Rosneft has signed an initial "non-binding" memorandum with the Ruia family-led Essar group to buy 49 percent stake in Essar Oil's Vadinar refinery in Gujarat.
 
The deal has come at a time when India is taking part in the ongoing BRICS leaders' summit in Russia. 
 
The agreement, signed on Wednesday, is subject to regulatory approvals.
 
Rosneft and Essar Oil last December signed a contract for the Russian firm to supply 10 million tonnes of oil a year for 10 years.
 
"The performance of the terms of the signed documents will have a substantial impact on the scale of economic cooperation between Russia and India. The goods trade between the two countries will grow by more than 50 percent," Rosneft chairman Igor Sechin said in a statement.
 
Rosneft and Essar also plan to expand the Vadinar refinery annual capacity to 45 million tons by 2020 from the current 20 million tons, the statement said.
 
The deal includes a retail chain of 1,600 stations across India.
 
As of June 2015, Essar had on its books a debt of Rs.17,000 crore.
 
Last April, Essar Oil received the Reserve Bank of India's approval to raise external commercial borrowings up to $2.27 billion, to replace its rupee debt with low-cost dollar loans.
 
Essar said it has "signed a non-binding Term Sheet with regard to Rosneft's participation in the equity capital of Essar Oil Limited with a share of up to 49 percent."
 
The proposed transaction is conditional upon various factors such as due diligence, determination of the transaction price, execution of definitive transaction documents and receipt of requisite approvals, Essar said in a statement.
 
"Appropriate disclosures shall be made in accordance with applicable law as and when any definitive steps in relation to the aforesaid are undertaken," it added.

User

Equity funds report second-highest inflows ever in June
A net inflow of Rs12,273 crore in June 2015 was the highest monthly inflow since January 2008, which recorded the highest ever
 
At a time when foreign investors have gone lukewarm in their Indian investments, Indian retail investors have turned extremely bullish and put in record amount in equity mutual fund schemes since the previous market high of January 2008. In June 2015, equity funds reported a net inflow of Rs12,273 crore. This is the highest inflow for a month since January 2008, when equity mutual funds reported a net inflow of Rs13,678 crore. Equity fund reported record sales in the month of June 2015 which touched Rs17,929 crore, the highest since July 2014. Redemptions increased to Rs5,656 crore in June 2015 from Rs3,943 crore in May 2015.
 
The strong inflows in mutual funds are in contrast to the outflow by foreign institutional investors. In the month of June itself, FIIs sold as much as Rs5,500 crore. Backed by the strong inflows from retail investors, mutual funds invested Rs10,325 crore in stocks.
 
 
 
Mutual fund investors usually buy high and sell low, getting carried away by investing when the market is hot. This was seen in the 2007-08 period when as much as Rs47,000 crore flowed in to equity mutual funds. This was a time when the markets were commanding an extremely high valuation. Though not as high as last time, this time too, the Nifty is trading at a high price-to-earnings of 23 times.
 
In the quarter ended June 2015, investors put in as much as Rs32,933 crore in equity schemes. This is the highest inflows ever for any three month period. The previous highest inflows was of Rs27,966 crore for the quarter ended March 2008. Over the past 12 months, investors have put in as much as Rs95,047 crore in equity schemes.
 
Interestingly, there were only two new fund offers in the month of June 2015, bringing in just 104 crore. Equity linked savings schemes brought in a net inflow Rs274 crore. 
 
Equity schemes added as many as 308,972 accounts (or folios) in the month of June 2015, taking the total number of folios to 32.58 million. As many as 3.32 million folios were added in the past 12 months. In June 2015, assets of equity schemes grew by Rs7,147 crore to Rs3.72 lakh crore, backed by strong inflows.
 

User

As Hollywood Lobbied State Department, It Built Free Home Theaters for U.S. Embassies
Four U.S. Embassies got upgraded screening rooms last year, paid for by the lobbying arm of the big studios. The industry and the government say there were no strings attached
 
This story was co-published with The Daily Beast.
 
Hollywood’s efforts to win political clout have always stretched across the country, from glitzy campaign fundraisers in Beverly Hills to cocktail parties with power brokers in Washington. 
 
Last year, the film industry staked out another zone of influence: U.S. embassies. Its lobbying arm paid to renovate screening rooms in at least four overseas outposts, hoping the new theaters would help ambassadors and their foreign guests “keep U.S. cultural interests top of mind,” according to an internal email.
 
That was the same year that the Motion Picture Association of America, which represents the six biggest studios, reported it was lobbying the State Department on issues including piracy and online content distribution. Hollywood’s interests – including its push for tougher copyright rules in the Trans-Pacific Partnership trade pact – often put the industry at odds with Silicon Valley.
 
The only public indication of the embassy-theater initiative was a February 2015 press release from American officials in Madrid, titled “U.S. Embassy Launches State-of-the-Art Screening Room.” It credited “a generous donation” from the MPAA.
 
Asked about its gifts to the State Department, the lobby group declined to say how many embassies got donations or how much they were worth. 
 
“Because film is a great ambassador for U.S. culture around the world, MPAA assisted with the upgrade of some embassy theater facilities,” said spokeswoman Kate Bedingfield. “All gifts complied with the law as well as with State Department ethics guidelines.”
 
Nicole Thompson, a State Department spokeswoman, said at least three embassies besides Madrid received between $20,000 and $50,000 in entertainment upgrades last year – London, Paris and Rome. The revamped screening rooms, she said, aren’t intended to entertain U.S. officials, but rather to help them host screenings to promote an American industry and sow goodwill. 
 
Thompson said the donations were proper and that all gifts to the department are reviewed to avoid even the appearance of a conflict of interest. “The department has explicit authorities to accept gifts made for its benefit or for carrying out any of its functions,” she said. 
 
The State Department routinely accepts gifts from outside groups, Thompson said. She couldn’t provide any other examples of major gifts from groups that simultaneously lobby the agency. Thompson declined to list the items given by the MPAA or their total value, and wouldn’t say whether the group had made similar gifts in the past. 
 
There was at least one precedent. A spokesman for Warner Bros. Entertainment said the studio helped pay for the refurbishment of the screening room at the U.S. ambassador’s home in Paris in 2011. “This donation was coordinated with the State Department and complied with all appropriate rules and regulations,” the spokesman said.
 
State Department policies posted online specifically permit gifts from individuals, groups or corporations for “embassy refurbishment, ” provided that the donors are vetted to ensure there’s no conflict or possible “embarrassment or harm” to the agency. The posted policies include no caps on the value of donations, nor any requirements for public disclosure of foreign or American donors. The rules also say that the donations can’t come with a promise or expectation… Continue Reading…
 
Courtesy: ProPublica

We are listening!

Solve the equation and enter in the Captcha field.
  Loading...
Close

To continue


Please
Sign Up or Sign In
with

Email
Close

To continue


Please
Sign Up or Sign In
with

Email

BUY NOW

The Scam
24 Year Of The Scam: The Perennial Bestseller, reads like a Thriller!
Moneylife Magazine
Fiercely independent and pro-consumer information on personal finance
Stockletters in 3 Flavours
Outstanding research that beats mutual funds year after year
MAS: Complete Online Financial Advisory
(Includes Moneylife Magazine and Lion Stockletter)