...Venture Financing in India A. Sahay* Abstract Innovation is stated to be the initiating force for a new venture but venture finance is the life blood for entrepreneurship. Innovation is the fuel for igniting the Entrepreneurial engine, Venture capital revs up the engine fast till it attains sustainable speed to change the gears from idea to entity, eventually reaching IPO stage. The paper starts with Research and Development Cess Act, 1986 and covers the development in the field till 2003 and presents an analysis of venture investments as well as future prospects . The history of Venture capital (VC), its advent in India, Characteristics of VC, Government guidelines on VC, Classification of VC in India, Types of V and their analysis has been dealt in the C paper. . Introduction Since Independence till early1990s, the Government has been playing the role of an entrepreneur as well. This was on account of the policy direction which propounded socialistic society and mixed economy. There was dearth of capital, infrastructure facilities and entrepreneurship in the country. During this period, the Government developed infrastructural base such as roads, railways, electricity, ports, banks, financial institutions, insurance etc through the public sector enterprises which were supposed to attain commanding heights of the economy. The environment thus created resulted in the people of India becoming job seekers and the Government itself became a dominant entrepreneur and job provider...
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...Venture Financing in India A. Sahay* Abstract Innovation is stated to be the initiating force for a new venture but venture finance is the life blood for entrepreneurship. Innovation is the fuel for igniting the Entrepreneurial engine, Venture capital revs up the engine fast till it attains sustainable speed to change the gears from idea to entity, eventually reaching IPO stage. The paper starts with Research and Development Cess Act, 1986 and covers the development in the field till 2003 and presents an analysis of venture investments as well as future prospects . The history of Venture capital (VC), its advent in India, Characteristics of VC, Government guidelines on VC, Classification of VC in India, Types of V and their analysis has been dealt in the C paper. . Introduction Since Independence till early1990s, the Government has been playing the role of an entrepreneur as well. This was on account of the policy direction which propounded socialistic society and mixed economy. There was dearth of capital, infrastructure facilities and entrepreneurship in the country. During this period, the Government developed infrastructural base such as roads, railways, electricity, ports, banks, financial institutions, insurance etc through the public sector enterprises which were supposed to attain commanding heights of the economy. The environment thus created resulted in the people of India becoming job seekers and the Government itself became a dominant entrepreneur and job provider...
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...Department of Industrial Policy and Promotion Ministry of Commerce and Industry Government of India CONSOLIDATED FDI POLICY (EFFECTIVE FROM APRIL 5, 2013) Government of India Ministry of Commerce & Industry Department of Industrial Policy & Promotion (FC Section) CIRCULAR 1 OF 2013 SUBJECT: CONSOLIDATED FDI POLICY. The “Consolidated FDI Policy” is attached. 2. This circular will take effect from April 5, 2013. (Anjali Prasad) Joint Secretary to the Government of India D/o IPP F. No. 5(1)/2013-FC.I Dated the 05.04.2013 Copy forwarded to: 1. 2. 3. 4. 5. Press Information Officer, Press Information Bureau- for giving wide publicity to the above circular. BE Section for uploading the circular on DIPP's website. Department of Economic Affairs, Ministry of Finance, New Delhi Reserve Bank of India, Mumbai Hindi Section for Hindi Translation 1 INDEX DESCRIPTION PAGE NUMBER CHAPTER-1 INTENT AND OBJECTIVE 1.1 Intent And Objective 5 5 CHAPTER-2 DEFINITIONS 2.1 Definitions 7 7 CHAPTER-3 GENERAL CONDITIONS ON FDI 3.1 Who can invest in India? 3.2. Entities into which FDI can be made 3.3 Types of Instruments 3.4 Issue/Transfer of Shares 3.5 Specific conditions in certain cases 3.6 Entry routes for Investment 3.7 Caps on Investments 3.8 Entry conditions on investment 3.9 Other conditions on Investment besides entry conditions 3.10 Foreign Investment into/Downstream Investment by Indian Companies 13 13 15 17 20 26 29 30 30 31 31 CHAPTER-4...
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...MUTUAL FUND A Mutual fund is a pool of money, collected from investors and is invested according to certain investment objectives. A Mutual fund is created when investors put their money together. It is therefore a pool of the investor’s funds. The most important characteristic of the Mutual fund is that the contributories and the beneficiaries are the same class of people, namely the investors. The term mutual means that the investors contribute to the pool, and also benefit from the pool. There are no other claimants to the funds. The pool of funds held mutually by investors is the mutual fund. A Mutual fund business is to invest the funds thus collected, according to the wishes of the investors who created the pool. Usually the investors appoint professional investment managers, to manage their funds. The same objective is achieved when professional investment managers create a ‘product’ and offer it for investments to the investors. The product represents a share in the pool and pre states investment objectives. FEATURES AND CHARACTERISTICS OF MUTUAL FUND A mutual fund is a financial intermediary and works as an investment company. It has distinct features and characteristics which differentiate it from other financial intermediaries. Some of the features of mutual fund are: Mutual fund is a pool of financial resources. Investors bring their individual funds together. Sometimes the funds which otherwise may not come for investment in the capital...
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...every now and then, are bothered about their activities and moves that might affect the economy and the markets adversely. The recently out, Lahiri Committee Report, also lays emphasis on participatory notes, its role and functioning. The question that arises in a person’s mind is that what is a participatory note, how it functions, and why is it famous for its notoriety, etc. We will try to seek the answers of the above said questions and various other aspects of participatory notes in the following discussion. What are participatory notes? In the magazine, Business World, dated December 15th, 2003, the feature on participatory note stated that, “The past month has seen our stock market regulator, the Securities and Exchange Board of India (SEBI), nervously rattling its...
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...1.1. Introduction Mutual Funds in India – History The concept of Mutual Funds in India emerged as success as early as 1990s, when Government allowed public sector banks and institutions to launch mutual funds schemes. Unit Trust of India was the first Mutual Fund in India set-up in the year 1963 Security and exchange Board of India (SEBI) act was passed in the year 1192. The objectives of SEBI are - to regulate security market and protect the interests of investor community. It is regulatory institution which is responsible for formulating policies and guidelines for operation of mutual funds in India. Mutual funds have become extremely popular over the last 20 years. What was once just another obscure financial instrument is now a part of our daily lives. More than 80 million people, or one half of the households in America, invest in mutual funds. In fact, many people think investing means buying mutual funds. After all, its common knowledge that investing in mutual funds is (or at least should be) better than simply letting your cash waste away in a savings account, but, for most people, that's where the understanding of funds ends. It doesn't help that mutual fund salespeople speak a strange language that is interspersed with jargon that many investors don't understand. Originally, mutual funds were heralded as a way for the little guy to get a piece of the market. Instead of spending all your free time buried in the financial pages of the Wall Street Journal...
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...The essential facts/rules/regulations the NRIs must know NRI Guide 2012 2012 A Comprehensive Guide for Indians residing outside India Prakash Nair Prakash@yourownadviser.com www.yourownadviser.com . 1|Page NRI GUIDE (Ver 1.00) (A Comprehensive Guide for Indians residing outside India) Prepared by Prakash Nair Prakash@yourownadviser.com www.yourownadviser.com 2|Page NRI Guide 2012 www.yourownadviser.com PREFACE This NRI guide has been compiled with the help of information available in official website of various government departments like Reserve Bank of India, Income Tax Department, Government of Kerala and other reliable sources. I have taken adequate care to provide current and authentic information. This NRI Guide is intended to serve as a ready reference book to guide NRIs on various matters affecting their financial and other related subjects. This does not purport to be a legal document. So I am not sure that, any errors occurred while compiling this reference guide. In case of any variation between what has been stated in this NRI Guide and the relevant Act, Rules, Regulations, Policy Statements, Government Orders/Circulars etc., the latter shall prevail. Kindly note that, rules related to NRIs are subject to change. Errors and omissions are expected. Ver.2 of this NRI Guide will be published soon with more useful information. Prakash Nair Prakash @yourownadviser.com www.yourownadviser.com Date : 12-Jan-2012 Your suggestions,...
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...Status Pages 29 to 35 What is Capital Account Transaction? Capital account transaction is defined as a transaction which:- ➢ Alters the assets or liabilities, including contingent liabilities, outside India of persons resident in India. In other words, it includes those transactions which are undertaken by a resident of India such that his/her assets or liabilities outside India are altered (either increased or decreased). For example:- (i) a resident of India acquires an immovable property outside India or acquires shares of a foreign company. This way his/her overseas assets are increased; or (ii) a resident of India borrows from a non-resident through External commercial Borrowings (ECBs). This way he/she has created a liability outside India. ➢ Alters the assets or liabilities in India of person resident outside India. In other words, it includes those transactions which are undertaken by a non-resident such that his/her assets or liabilities in India are altered (either increased or decreased). For example, (i) a non-resident acquire immovable property in India or acquire shares of an Indian company or invest in a Wholly Owned Subsidiary or a Joint Venture with a resident of India. This way...
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...A TERM PAPER ONReal Estate Financing | | A TERM PAPER ONReal Estate Financing | | Contents Real Estate Sector in India 2 Role of Government in Real Estate Financing 3 What is a REIT? 3 REIT in India 4 Impact of Government Measures on Real Estate Financing 5 Why would Real Estate Finance work in India 7 Affordable Housing: 7 Smart City Investment Opportunity: 8 Smaller Tier 2 and Tier 3 Cities Offering Immense Growth Potentials: 8 Tier 2 and tier 3 cities have been offering far more real estate projects leading to a pan India growth. Some of the biggest real estate companies are focusing on smaller centers offering investment opportunities galore. With real estate prices in the metropolitan cities getting stagnant to an extent, expect for projects located the new industrial corridors the smaller centers are offering a great opportunity for both investors and real estate manufacturing companies 8 Tax Exemption 8 Available Space 9 The South Asian country has top quality office space of about 350 million square feet across its six biggest cit0ies, according to Jones Lang LaSalle Inc. Of this, about 100 million square feet are potentially available for REIT listings, which could be valued at as much as $9 billion, the broker estimates.The combined debt of India’s six largest developers climbed to a record 394 billion rupees in the 12 months through March 31, more than double the 158.8 billion rupees in 2007, according to data compiled by...
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...FINC/070 CO PY IBS Center for Management Research Commercial Paper Market in India D O N O T This case was written by Nitya Nand Tripathi, IBS Center for Management Research and D.S. Chary, IBS, Hyderabad. It was compiled from published sources, and is intended to be used as a basis for class discussion rather than to illustrate either effective or ineffective handling of a management situation. 2011, IBS Center for Management Research. All rights reserved. To order copies, call +91-08417-236667/68 or write to IBS Center for Management Research (ICMR), IFHE Campus, Donthanapally, Sankarapally Road, Hyderabad 501 504, Andhra Pradesh, India or email: info@icmrindia.org www.icmrindia.org FINC/070 Commercial Paper Market in India “Volumes of commercial papers will increase because it will be cheaper for companies to raise money through this route rather than loans from banks.”1 - Paritosh Kashyap, www.livemint.com, in March 2010 CO PY “Close to $210 billion have flown into the Indian debt market this calendar year alone. Investment by local banks in commercial paper has surged from Rs 25.188 billion in March 2010 to Rs 37.863 billion in August. Is the moribund Indian debt market finally showing signs of life 18 years after it was opened up to global money?… The current sets of circumstances have been favorable for the Indian bond market.”3 - Abheek Barua, The Economic Times4, November 2010 “CP issuances are going to rise...
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...the globe and enjoys a lot of reputation due to its spicy food items. KFC has planned to launch its operation in India in early 1990’s amid of strong protest from the People for Ethical Treatment of Animals (PETA) and violation of the food Adulteration act, 1954, with an excessive amount of active ingredient of monosodium glutamate. Along with this heavy protest from the opposition parties to stop the invasion of KFC into Indian food market. KFC, after two decades is now again planning to invest and expand its operations in India. Being as an industry analyst, how would you analyze the major issues faced by KFC in India and develop a roadmap for its successful investment. Hint: Major issues should be considered as Cultural, Political, Economic, Ethical and Agricultural issues. IMPORTANT: 24 hours extra / grace period after the due date is usually available to overcome uploading difficulties. This extra time should only be used to meet the emergencies and above mentioned due dates should always be treated as final to avoid any inconvenience. IMPORTANT INSTRUCTIONS/ SOLUTION GUIDELINES/ SPECIAL INSTRUCTIONS • Try to remain to the point • Avoid copying from blogs OTHER IMPORTANT INSTRUCTIONS: DEADLINE: • Make sure to upload the solution file before the due date on VULMS. • Any submission made via email after the due date will not be accepted. FORMATTING GUIDELINES: • Use the font style “Times New Roman” or “Arial” and font size “12”. • It is advised to compose your document...
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...Introduction s environmental issues gain greater attention, pressure is being placed on all industries, including financial services to implement “green” initiatives. While green banking is not yet a key reason for most customers to select one financial institution over another, customer demands and greater environmental awareness are driving a number of financial institutions to go green. Environment is a key focus amongst ethical banks (in this field specially called sustainability or green banks) as well as amongst many conventional banks that wish to appear more ethically oriented or that see switching to more environmental practices to be to their advantage. In general bankers “consider themselves to be in a relatively environmentally friendly industry (in terms of emissions and pollution). However, given their potential exposure to risk, they have been surprisingly slow to examine the environmental performance of their clients. A stated reason for this is that such an examination would ‘require interference’ with a client’s activities. While the desire to not meddle in the business of the client is valid, one could also note that banks are required to interfere in the business of their clients regularly to ensure that the clients’ business plan is viable before issuing them a loan. The kind of analysis that all banks partake in is termed a single bottom line analysis (this analysis only considers financial performance). It is arguable whether or not performing a triple bottom...
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...Its products are sold under brands such as Kleenex®, Scott®, Huggies®, Pull-Ups®, Kotex® and Depend®. With over 60,000 employees, it had revenues of US$ 14.3 billion in 2003-04. Kimberly-Clark Lever Ltd. (KCLL) is a 50:50 joint venture formed in September 1994 between Kimberly-Clark Corporation, of USA and Hindustan Lever Ltd. The plant and the registered office of the company are located at Sanaswadi, 30 km from Pune. KCLL markets feminine pads under the brand Kotex® and manufactures and markets diapers under the brand Huggies® in India. A leading baby hygiene product manufacturer The US$ 14.5 million Indian disposable diaper market has exhibited steady growth as manufacturers are correcting the price-value equation and have been offering customers superior technology products. KCLL’s Huggies® diaper brand is the market leader in its category with a market share of around 70 per cent. The following were the key challenges, which KCLL faced in India: • Absence of market for diapers • Value and price-sensitiveness of the product by offering “a good quality product that protects consumers at an accessible price”. The latest national launch is a product called Kotex®...
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...Mutual Funds In India Team: - Group No. 3 * 10B910 – Siddhesh Goad * 10B913 – Chetan Gupta * 10B914 – Romit Gupta * 10B915 – Fahad Hussian Index: - Sr. No. | Topic | Page No. | 1. | History of Mutual Funds in India | 5 , 6 | 2. | Objective / Aim | 7 | 3. | Basic of Mutual Funds | 8 | 4. | Working of Mutual Funds | 9 , 10 , 11 | 5. | What is Mutual Fund? | 12 | 6. | Diversification | 13 | 7. | Types of Mutual Funds | 14 , 15 , 16 | 8. | Various other Mutual Fund Schemes: - | 17 , 18 , 19 , 20 | 9. | Types of Returns | 21 , 22 | 10. | Advantages of Investing in Mutual Funds | 23 | 11. | Disadvantages of Investing in Mutual Funds | 24 | 12. | Conclusion | 25 | 13. | Bibliography | 26 | History of Mutual Funds in India: - * The first mutual fund to be introduced in India was way back in 1963 when the Government of India launched Unit Trust of India (UTI). * UTI enjoyed a monopoly in the Indian mutual fund market till 1987 when a host of other government controlled Indian financial companies came up with their own funds. * These included State Bank of India, Canara Bank, Punjab National Bank etc. * This market was made open to private players in 1993 after the historic constitutional amendments brought forward by the then Congress led government under the existing regime of Liberalization, Privatization and Globalization (LPG). * The first private sector fund to operate in India was Kothari Pioneer...
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...2/2/13 How To Invest In Share Market ? Awards & Gifts +2183 Recommend this on Google New Member FAQ | Resources Help Topics Practice Tests | | Forums | Login Register Search Earn Revenue | Posting Guidelines Admissions Ask Experts Question Papers Jobs Universities Colleges Courses Schools Training Gift Shop | Bookmarks | Reviews | Learn English | Social Hub | Links | New Posts | My India | Members | Polls | Join our online Google+ community for Bloggers, Content Writers and Webmasters Active Members Today Bishes Dudani (21) Kamal Kishore (21) Jebaprincy (16) Last 7 Days R Pramod (1442) YASIF K A (594) Bishes Dudani (544) R s u c s» F n n e I v s m n s» S a e M r e eore iac/netet hr akt How To Invest In Share Market ? Posted Date: 22-Jan-2009 Category: Share Market Author: Lenin Member Level: Diamond Points: 25 (Rs 25) m ore ... This article gives an introduction to investment options and provide lot of tips on investing in share market. How To Invest In Share Market ? Share Market Share Market is a place where everyone take bath in order to taste the money. But it purely depends on the fundamentals, luck, global cues, behavior of other country markets, currency rate, Forex rates, currency trading etc. Trading is done in terms of the shares. These shares are the name of the companies which gets listed, generally. Also the share price varies...
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