Citizens' Issues
SEBI chief UK Sinha gets 2-year extension

UK Sinha, a 1976-batch IAS officer, had served as joint secretary in the Finance Ministry and joined SEBI after serving as the CMD of UTI AMC

UK Sinha, the chairman of Securities and Exchange Board of India (SEBI) on Friday got a two-year extension till 2016.


The Finance Ministry has issued a notification to this effect. “The notification for SEBI Chairman’s extension has been sent to SEBI late last night,” a senior Finance Ministry official said.


The extension will be with effect from 18 February 2014 till 2016.


Sinha’s three predecessors — CB Bhave, M Damodaran and GN Bajpai — had a three-year term. Only DR Mehta had served as SEBI chairman for the longest duration from 1995 to 2002.


Sinha, a 1976-batch IAS officer, had served as Joint Secretary in the Finance Ministry and joined SEBI after serving as the Chairman and MD of UTI AMC.


Foseco India declares final dividend of Rs15.5 as Q4 net profit falls 47%

Foseco India declared a final dividend of Rs15.50, taking its full year dividend to Rs24.50 per share even as its December quarter net profit fell 47%

Foseco India, a supplier of metallurgical chemicals for the ferrous and non-ferrous industry, reported 47% fall in its fourth quarter net profit due to subdued demands and lower margins.

For the quarter to end-December, Pune-based Foseco India said its net profit fell to Rs2.16 crore from Rs4.04 crore, while, its total revenues, including sales, declined 3% to Rs56.26 crore from Rs57.81 crore, a year ago period.

During the quarter, the company reported a 2% increase in its expenditure at Rs53.24 crore from Rs52.40 crore a year ago period.

However, as on 31 December 2013, Foseco India’s reserves and surplus stood at Rs94.16 crore, a 13% increase than a year ago period.

Foseco India announced a cumulative dividend of Rs24.50 per share including final dividend of Rs15.50 and an interim dividend of Rs9 per share.

Foseco India closed Friday marginally down at Rs497 on the BSE, while the 30-share benchmark ended the day flat at 20,387.

For more stock results, check out this page


Iran needs more bank accounts to boost trade with India

India needs to allow Iran to open accounts in banks other than UCO Bank and from all the major port cities, which would result in increased trade between the two countries

It may be recalled that Iran signed on 24 November 2013 an accord with US and European Union (world powers, really), agreeing to curtail its nuclear ambition in exchange for as much as $7 billion in relief from sanctions, and reassuring them that the Iranian nuclear programme has been set up only for peaceful purposes.


Iran had reiterated that it is only refining uranium to fuel a planned network of nuclear power plants, though the world knows that the same material can also be processed to provide fissile core of an atomic bomb, if it was "enriched" more! However, true to its word, Iran has been playing by the book and even the recent visit of the UN Inspectors to the Gchine mine in Southern Iran was with the assistance and cooperation of the Iranian Atomic Organisation.


The sanction, as we had stated earlier, did not very clearly spell out the procedures in case of insurance cover for vessels carrying Iranian cargo to and from that country. Two Iranian ship underwriters (Kish P & I Club and Moallem Insurance Co) have been given six months extension by the Director General of Shipping (DGS) from 28th December 2013, while asking for a Rs2,300 crore bank guarantee in rupees to pay for damages in the event of a mishap occurring in the Indian waters. Iran has sought some more time to resolve this issue.


At the moment, the National Iranian Tanker companies like Hafiz Darya Shipping Lines and Safiran Payam Darya Shipping Lines carry crude to India. Iranian supplies of crude fell to 13.3 million tonnes (mt) in 2013 against 18.1 mt in the previous year and is likely to touch only 11 mt by March 2014.


Recently, while attending and event organised by the Federation of AP Chambers of Commerce and Industry, Gholam Reza Ansari, the Iranian Ambassador met press persons, on the sidelines, and expressed the Iranian desire and the urgent need to operate the trade through multiple banks in the country.


At the moment, Iran maintains a rupee account with UCO Bank in Kolkata from where Indian exporters are paid against their shipments of various goods. With the relaxed condition of the sanction, Iran feels that trade will increase and to facilitate easy payments to exporters in India, it needs to operate from more banks in addition to UCO Bank in Kolkata. This is not an unfair or impractical demand, and the Ministry of Finance must immediately permit the opening of accounts with banks of their choice operating from all the major port cities like Mumbai, Mangalore, Cochin, Chennai, Vishakapatnam, Paradip and Kolkata, in addition to other cities that they may choose. In any case, almost all banks are government-owned, and Ministry should not waste time in meeting this reasonable request.


Agricultural products like basmati rice, soya, tea etc have found a good market in Iran besides engineering and pharmaceutical items. Trade visits to Iran are a must and when the government of India are willing to consider subsidy for Shipping Corporation of India to ply to Yangoon (Myanmar), there should be no reason for them to shy away to visit Iranian ports. Only 8% of Indian vessels out of 1,150 ships go to Iran. This must be increased.


If necessary, it must take the lead in providing sovereign guarantee for Indian vessels to ply, until sanctions are relaxed and normalcy is restored.


In the meantime, why not the Indian government take the lead in offering long or medium term credit facilities to build the 165 km railway line between Rasht in Iran and Astara in Azerbaijan? This will also help India to trade even more with CIS countries.


(AK Ramdas has worked with the Engineering Export Promotion Council of the ministry of commerce. He was also associated with various committees of the Council. His international career took him to places like Beirut, Kuwait and Dubai at a time when these were small trading outposts; and later to the US.)



Dr Anantha K Ramdas

3 years ago

Mr Vinay Joshi:

If you will be kind enough to reread the article, you will find that (a) it was the Iranian Ambassador who has sought Ministry of Finance clearance to open multiple bank accounts (so, I don't have to exemplify anything) and (b)the
DGS has asked for Rs 2300 crore B/G in case of mishaps on Indian waters.

CCEA, for your information, last year (2013) approved the winding up of the 37 year old
joint venture with Iran ( to wind up Irano-Hind Shipping,) as a sequel to Sanctions at that time.

If India is able to establish rupee trade agreement bilaterally with others - where the settlement takes place in their respective ccurrencies - we won't need to pay in Dollars, Euros or whatever in foreign exchange. Only when we are short on export then we need to settle in 3rd currency.

In the 3rd week of Dec in ML I have given details of other trade prospects in Iran where in it is shown that India is try
ing to persuade Iran to build the 165 Km rail link. India is helping to build Chabahar, a southern port and 20 km link line. Any building activity that we can take and perform will enable us to reduce the Rs 50,000 crores lying in UCO bank in Kolkata, in addition to other exports of goods.


Vinay Joshi

In Reply to Dr Anantha K Ramdas 3 years ago

Dear Dr. Anantha K Ramdas,

Thank you for your reply, noted the contents.


Dr Anantha K Ramdas

3 years ago

Mr Vinay Joshi:

I know who owns Petronet. It is you, me and hundreds of others who are shareholders. It would be nice if you would be kind enough not to ask such questions. What has this to do with an article on Iran?

You have issues with why Iran is asking for Govt of India permission to open accounts with multiple banks, in addition to UCO Bank in Kolkata?
Fine, just direct the question to the Iranian Ambassador. There are certain diplomatic norms that are to be followed, which is exactly what they have done.

Other information you seek can also be obtained simply from Google!

If you din't know why there is a Rupee account for Iran, please spare some time to read the implication of sanctions and the mutually established way to settle for oil payment - partly (about 45% in Rupee) and balance in hard currency, via Turkish banks.

Why do you want to know whether I know about reinsurance or not?
How does it concern you? How does it matter to you if I know about oil tanker and the liabilities of the owners etc?

All would be happy to read your comments and suggestions that can improve an existing situation, as two heads are better than one; but, if it is your sole intention is to find fault with every writer, I would consider that in bad taste. It does not solve any purpose, does it?


Vinay Joshi

In Reply to Dr Anantha K Ramdas 3 years ago

Dear Dr.Anantha K.Ramdas,

In the first place i’ll answer to your reply to me & later in accordance to your post in ML which was replied by me. OK.

Further you are silent on my reply re. rail link to CIS from Iran!

Petronet 34.8% public, 50% by ONGC,IOC,GAIL,BPCL, 15.2% by French gas & ADB. Even if we have any stake holding in any of the entities [of course except ADB], it is JUST theoretical as we the owners without any say. Importer of LNG has lot to do with Iran. Diff.

I do not have any issues with Iran asking multiple Indian bank branches a/c s. I’m least bothered & concerned with it. IT WAS YOU WHO HAS PROPPED UP THE ISSUE IN YOUR POST.

Further, FYI, in the first place i’ve not sought any information, i’ve sought your reply.
As regards international trade, finance, industry, commerce, economies concerned, with first had knowledge i talk. It may be geopolitical aspects also. OK.

Further, FYI, i was the first to put in ML forum in certain context about Dec,26,2011, RBI ntfn & subsequent aspects necessitating rupee payment. The sanctions came into effect in 2012. You can check it in ML. OK.

Further, FYI, Halkbank, [Turkiye Halk Bamkasi], IS; Turkey was allowed to accept 55% Euro payments, 45% INR but that route was halted in Feb 2013, [in fact it was special privilege to India] that option was also not there & had to make 100% rupee payments for oil imports from Iran, Iran had to accept it as barter trade equivalent. As of end CY13 PSU oil importers owe more than USD2.5bn towards partial payment & more than equivalent of USD3bn in INR were in UCO bank a/c of Iran Oil Co. No liability carried in b/s. [earlier German Bank payment was also stopped.]OK

Further, FYI, this imbroglio possibly can boost export to Iran by 50%+ & trade imbalance improved to certain extent. OK.

Further, FYI, no re-insurance was possible & oil imports from Iran fell by almost 40%. The two biggest Re are EU & US Co’s. OK.

I’ve answered your reply to me & the information I had since sanctions & payment aspects.

Now as per your article, you have questioned my reply. I’m answering your each para.

1] Your first opening para – India needs to allow Iran to open a/cs…………

2] It’s more than USD10bn are stuck with S.Korea, Japan, India & PRC. [at least INR barter is some relief to Iran, no such thing with others.]

3] Yet more collaborative steps required from Iran.

4] In the unfortunate event INR2.3KCr –approx USD385mn—sufficient to undertake damages?
Here raises the question of Re & of oil spill damages & tanker coverage.

5] As stated above imports lower in spite of marginal discount on oil prices.

6] In what manner operating thro’ multiple banks of help? You open as point 1 above.


8] Iran’s refining capacity inadequate, petro products export to be targeted & Iran has also imported petrol.

9] Shipping destinations are determined by cargo volumes & frequency of liners desired by importers/exporters as well competitive ocean freight.

10] As of now trade to CIS via Bander Abbas is not hindered for want of rail line. In fact road transport is more efficient than in India. Bandar Abbas to Baku, less than USD 200 [180], 20’FCL truck trailer charges, delivery at gate. 2x20'FCL is still cheaper.

Now with above two separate explanations, please do let me know as per your reply to me to my earlier post wherein you’ve stated me heckling.

Any view has a counterview & it as to be answered graciously by reading between the lines & understanding the meaning in the context.


Vinay Joshi

3 years ago

Sometime back you had talked about Petronet LNG. That issue is diff.

In Dec ’13 Petronet consortium hired fourth LNG ship to haul LNG, ALL THE WAY from Gorgon, Australia to Kochi. You know who owns Petronet? But Petronet can’t petition under NELP!

Any ASPECTS OF RE- INSURE? – Hope you understand Re?! The European consortium & US.

What has happened to Irano-Hind Shipping Co? Can you inform us?

Do you know the liabilities of an oil tanker carrier?
[BP in Mexico Gulf platform oil spill had to pay $20bn, over the years tied, the eco damage is unsubstantiated.]

So coming to your moot point – Who in the world will Re- Iran crude oil to India!
Indian Govt. guarantee of 2,300CR! I'll appreciate your comments, singularly on this.

Second, exemplify to me why Iran requires another Rupee bank a/c – be it in same bank branch [UCO] or other bank? [Be it overseas branch apart from Kolkotta.]


The present mechanism is working fine, irrespective. Sooner it will be off sanctions!?

Further, rail line to Azerb is a long story, clearance from Bandar Abbas / Rajjai via road transport is more economical to exporters, road transport co's as they instantly get back FCL’s & that too with stuffed as freight to port. [shipping co’s have arrangement for ready pickup. Diff FCL’s.]

But I was flabbergasted,[80's aspect]Philips, S’Pore factory, FCL unloading, same trailer truck going to delivery point uploading for export SAME FCL. FCL retention costs you know.

Importantly on rupee trade, CAD in comfort zone, fiscal supposedly should be with garnering about 50KCr+ in 2G auction [54,600 cr to be precise unless not splurged – or to be seen as disinvestment target met.]

So give good reason for pushing rupee trade. [Iran isolated.] Oil imports from other Asian countries were to be denominated in INR. PRC [China] did its own bit for their own aspects in certain way.

No doubt INR payment can save 10-12bn$ in oil imports. FY 12-13 oil imports 144+bn$, 13-14 can be 160bn$ or so depending average price & rupee.


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