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Novelis to restate financials, Hindalco’s results may get affected too

Restatement of accounts is quite uncommon in India. Even if Indian companies discover bloopers they are either rectified prospectively in the P&L or retrospective effect is given through the balance sheet. The first practice will reflect in future financial statements and the second will not reflect in the profit and loss account, thereby not affecting the profit for the year. US GAAP in contrast requires companies to restate their financial statements.
 

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India’s inflation: reining in the government

Already, inflation is resulting in the government taking steps that don’t seem logical. The Finance Minister has for long been cheering the growth story and cautioning the central bank taking any monetary steps, which might hit growth. And, he has helpfully been ‘requesting’ public sector banks not to increase interest rates, for good measure. Though the RBI is an autonomous body, the pressure on it to ignore the warning signals of rising inflation was evident.
 

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No credit derivatives for India: global financial centre a distant dream

One drawback of the Indian corporate bond market is the absence of credit derivatives. Regulatory reluctance was a main reason for this phenomenon. This had changed over the years with strong lobbying from all interested parties and the government giving a go-ahead from its side. The government had made announcements to that effect in the 2006-07 Budget and even commissioned a report on making Mumbai a regional financial centre.
 

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India’s Budget pleases janata but investors can’t see the light still

India’s Union Budget 2008-09 has been greeted by three successive days of stock market declines, including the day it was announced. Some of the negative sentiment is more global in nature. But the Budget proposals do not seem to have gladdened investors. It tries to give a boost to demand by giving more cash for people to spend, taking a leaf from George Bush’s largesse, including farmers whose debt has been waived.
 

Here’s a look at what the Budget has really done.
 

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Reliance Power’s proposed bonus issue tries to mend fences with hurt investors

Reliance Power is attempting to win over dejected investors, who suffered losses after investing in the company’s public offer IPO, one which attracted unprecedented subscriptions. The company’s Board will meet next Sunday to decide on a proposal to issue bonus shares or otherwise compensate shareholders who applied in the IPO.
 

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Indian stock markets: round one to the Fed. But is the illness cured?

Indian stock markets will open today, sharply up. That’s no startling prediction, Asian markets that have already opened have gained and India will be no different. Monday and Tuesday saw India re-coupling with global markets, with the Sensex closing at 16730, down 17% from a week ago.
 

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What is the problem with the Indian corporate debt market?

Sebi too has pitched in to try and revive the corporate debt market. The lack of a vibrant secondary debt market has been one of the biggest cribs of the financial services industry. The primary market is not rocking, either. So, everyone from the finance ministry, the stock exchanges, RBI and Sebi have been putting on their thinking caps, trying to change things, over many years.
 

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Sebi draft proposal to rationalize Participatory-note issuance will rock stock markets

Indian ADRs dipped as global investors tried to assess the implications of Sebi’s draft proposals to restrict the participatory note (PN) factor in the stock market. On the NYSE, the HDFC Bank ADR was down 10.2%, Infosys was down 5.7%, Dr Reddy’s Laboratories was down 3.1%, Wipro was down 3.4%, and ICICI Bank was down 6.5%.
 

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Tata Group’s Indian Hotels makes hostile bid for Orient-Express Hotels

Hostile takeover bids are rare in India but its entrepreneurs are not loath to fight a pitched battle in international markets. The Tata group’s acquisition of a 10% stake in Orient-Express Hotels through Indian Hotels seems to be more than just an investment.
 

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