Well many people will welcome  the new Standard and Chartered release of Indian depository receipts in the Indian market  , many may just see it a s a cash grab by standard an d chartered bank for  investment of money by the indian junta in thier  company. Those who like th Bank and  think they  can make some money by investing in them now have a more clear transparent way on investing in this global bank.

Standard Chartered launched its first ever Indian depository receipt (IDR) offering (May 25), closing on May 28. The bank issued 240 million IDRs, with every 10 representing one share of Standard Chartered. The IDRs were allocated at Indian rupee 104 each.

Standard Chartered derived 12% of its income from India in 2009. It has been present in the country for over 150 years, having opened its first branch in 1858 in Kolkata. India contributed $1.06 billion of the company’s $7.23 billion operating profit in 2009, ranking only behind Hong Kong.

So what is a Indian Depository receipt ?

As per the definition given in the Companies (Issue of Indian Depository Receipts) Rules, 2004, IDR is an instrument in the form of a Depository Receipt created by the Indian depository in India against the underlying equity shares of the issuing company. In an IDR, foreign companies would issue shares, to an Indian Depository (say National Security Depository Limited – NSDL), which would in turn issue depository receipts to investors in India. The actual shares underlying the IDRs would be held by an Overseas Custodian, which shall authorise the Indian Depository to issue the IDRs. ( ref: http://www.bankingindiaupdate.com/idr.htm)

How this works is , The foreign company IDRs will deposit shares to an Indian depository. The depository would issue receipts to investors in India against these shares. The benefit of the underlying shares (like bonus, dividends etc) would accrue to the depository receipt holders in India.

Stanchart  Indian Depository receiepts

Standard Chartered plc was the first foreign company to have publicly shown interest in making an IDR issue in India. The company is already listed on the London and Hong Kong stock Exchanges. Standard Chartered CEO Peter Sands is quoted in the Indian media as saying the "IDR listing (is) to enhance StanChart’s commitment to India.

India shares Investment

Peter Sands, group chief executive at Standard Chartered, said this will be the "anchor investor" portion of a $588 million IDR issued by the bank.

The IDR issue is the first of its kind for India. Like American or global depository receipts, which Indian companies can use to raise resources overseas, IDRs enable foreign companies to do the same in India. The IDRs will allow Standard Chartered to boost its market visibility and brand perception in India and will give Indian investors an opportunity to invest in the company and participate in its growth.

More information:

IDR issue Process

According to SEBI guidelines, IDRs will be issued to Indian residents in the same way as domestic shares are issued. The issuer company will make a public offer in India, and residents can bid in exactly the same format and method as they bid for Indian shares. The issue process is exactly the same: the company will file a draft red herring prospectus (DRHP), which will be examined by SEBI. The general body of investors will get a chance to read and review the DRHP as it is a public document, available on the websites of SEBI and the book running lead managers. After SEBI gives its clearance, the company sets the issue dates and files the document with the Registrar of Companies. In the next step, after getting the Registrar’s registration ticket, the company can go ahead with marketing the issue. The issue will be kept open for a fixed number of days, and investors can submit their application forms at the bidding centers. The investors will bid within the price band and the final price will be decided post the closure of the Issue. The receipts will be allotted to the investors in theirdemat account as is done for equity shares in any public issue.

What is the procedure to apply to an IDR?
The process is similar to an initial public offering where a draft prospectus is filed with the Securities and Exchange Board of India.

The minimum issue size is $500 million (around Rs 2,250 crore). IDRs will be issued through a public offer in India in the demat form and will be listed on Indian exchanges. Trading and settlement will be similar to those of Indian shares. 50% of the issue size is reserved for qualified institutional investors. Retail investors can subscribe upto 30% of the issue size. The minimum application size shall be Rs.20,000.

Links:

• Government of India
• Securities and Exchange Board of India
• Reserve Bank of India
• Issue of Indian Depository Receipts (IDRs), Reserve Bank Of India Official Website
• Australian Stock Blog
• Indonesia Stock Market IDX

You tube video in Indian depository receipts

Its  not very clear when  incidents like this happen. But its sure  appears that these incidents are showing as a pattern. When last year a top Rio Tinto executive Stern Hu was arrested and  subsequently charged in china for alleged illegal activities in china ( this action was immediately pre-ceded by the chinalco – Chinese steel company and Rio tinto joint venture being refused by Australia due to security and monoply concerns)

Chinese iron ore ship in australia

Fast forward to today  and  an another incident  has happened , when the Chinese mining transport ship in australia was eventually fined for allegedly taking a short cut through a popular  marine tourism area in china ( and then getting the ship  grounded  .. and damaging a world class marine life heritage site in Australia) . This particular News was immediately followed  by  china announcing that the  two biggest Iron ore companies joint venture deal would be put into review by china.

In Indian iron ore news update ,

India’s exports of low-grade iron ores will be hit hard by China’s curb on purchases announced yesterday, a senior Indian industry official said on

Friday. In 2009/10, Indian exported 106 million tonnes of iron ore out of a total production of 222 million tonnes, most of which went to China. Shares of India’s largest exporter of iron ore, Sesa Goa fell nearly 5 percent, closing at 468.7 rupees at around 1000 GMT. The company is a unit of the London-listed Vedanta Resources.

“Exports would fall substantially. Of course this will be detrimental,” Glenn Kalvampara, secretary general of the Goa Mineral Ore Exporters’ Association, told Reuters.

On Thursday, China’s iron ore trading association banned its members from importing ores with less than 60 percent iron content, but the ban did not apply to steelmills and their licensed agents.

BEIJING, April 16 - Stockpiles of imported iron ore at China’s major ports stood at 67.31 million tonnes by the end of this week, 670,000 tonnes higher than last week, data from industry consultancy Mysteel showed on Friday.

Ores originating in Australia stood at 20.98 million tonnes, up 530,000 tonnes and making up 31 percent of the total. Brazilian ores reached 17 million tonnes, down 300,000 tonnes and accounting for 25 percent of the total. There were 16.37 million tonnes of Indian ore, down slightly from 16.40 million tonnes last week and accounting for 24 percent of the total. China’s port ore stockpiles have been around 65-75 million tonnes since the second half of 2008, when prices in the spot market collapsed and large quantities of benchmark-priced deliveries were left uncollected. Speaking earlier this month, China Iron and Steel Association Secretary General Shan Shanghua urgedChinese steel mills and licensed traders to use the stockpiles to enforce a two-month trade boycott against the three big global miners — Vale <VALE5.SA> of Brazil and Australia’s Rio Tinto <RIO.AX><RIO.L> andBHP Billiton <BHP.AX><BHP.L>. Indonesia stock market

CISA has accused the three miners of using their monopoly status to impose unfair price increases on their steel mill customers.

Spot market iron ore prices in China have continued to surge this week, with Mysteel’s composite price indexrising 8.6 percent by Friday to end at 181.4. Imported ores rose 9.1 percent and domestic ores 5.9 percent.

Ref Link: china Stock market

IPL is back! go the Deccan Chargers!!! watch IPL live on youtbe – http://www.youtube.com/ipl

Deccan Chargers

Bangalore Royal Challengers

Delhi Daredevils

Chennai Super Kings

Mumbai Indians

Kolkata Knight Riders

Kings XI Punjab

Rajasthan Royals

Mumbai – Owned by Mukesh Ambani’s Reliance Industries Limited

Players They Won:
Sachin Tendulkar * – Icon Player
Sanath Jayasuriya (Sri Lanka) – Rs. 3.9 Crore ($975,000)
Harbhajan Singh (India) – Rs. 3.4 crore ($850,000)
Robin Uthappa (India) – Rs. 3.2 crore ($800,000)
Shaun Pollock (South Africa) – Rs. 2.2 crore ($550,000)
Lasith Malinga (Sri Lanka) – Rs. 1.4 crore ($350,000)
Loots Bosman (South Africa) – Rs. 70 Lacs ($175,000)
Dilhara Fernando (Sri Lanka) – Rs. 60 Lacs ($150,000)
Total Spending: Rs. 19.885 Crores ($4,971,250)

Delhi – Owened by GMR Group

Players They Won:
Virender Sehwag * – Icon Player
Gautam Gambhir (India) – Rs. 2.9 crore ($725,000)
Manoj Tiwary (India) – Rs. 2.7 crore ($675,000)
Mohammad Asif (Pakistan) – Rs. 2.6 crore ($650,000)
Daniel Vettori (New Zealand) – Rs. 2.5 crore ($625,000)
Dinesh Karthik (India) – Rs. 2.1 crore ($525,000)
Shoaib Malik (Pakistan) – Rs. 2.0 crore ($500,000)
Glenn McGrath (Australia) – Rs. 1.4 crore ($350,000)
AB de Villiers (South Africa) – Rs. 1.2 crore ($300,000)
Tillakaratne Dilshan (Sri Lanka) – Rs. 1.0 crore ($250,000)
Farveez Maharoof (Sri Lanka) – Rs. 90 Lacs ($225,000)
Total Spending: Rs. 22.635 Crores ($5,572,500)

IPL LEAGUE TEAM PLAYERS LIST

Kolkata – Owened by Shah Rukh Khan’s Red Chillies Entertainment

Players They Won:
Sourav Ganguly * – Icon Player
Ishant Sharma (India) – Rs. 3.8 Crore ($950,000)
Chris Gayle (West Indies) – Rs. 3.2 Crore ($800,000)
Brendon McCullum (New Zealand) – Rs. 2.8 Crore ($700,000)
David Hussey (Australia) – Rs. 2.7 Crore ($625,000)
Shoaib Akhtar (Pakistan) – Rs. 1.7 Crore ($425,000)
Murali Kartik (India) – Rs. 1.7 Crore ($425,000)
Ricky Ponting (Australia) – Rs. 1.6 Crore ($400,000)
Ajit Agarkar (India) – Rs. 1.32 Crore ($330,000)
Umar Gul (Pakistan) – Rs. 60 Lacs ($150,000)
Tatenda Taibu (Zimbabwe) – Rs. 30 Lacs ($125,000)
Total Spending: Rs. 24.79 Crores ($6,022,500)

Chennai – Owened by India Cements / N Srinivasan

Players They Won:
Mahendra Singh Dhoni (India) – Rs. 6.0 Crore ($1,500,000)
Jacob Oram (New Zealand) – Rs. 2.7 Crore ($675,000)
Albie Morkel (South Africa) – Rs. 2.7 Crore ($675,000)
Suresh Raina (India) – Rs. 2.6 Crore ($650,000)
Muttiah Muralitharan (Sri Lanka) – Rs. 2.4 Crore ($600,000)
Matthew Hayden (Australia) – Rs. 1.5 Crore ($375,000)
Michael Hussey (Australia) – Rs. 1.4 Crore ($350,000)
Stephen Fleming (New Zealand) – Rs. 1.4 Crore ($350,000)
Parthiv Patel (India) – Rs. 1.3 Crore ($325,000)
Joginder Sharma (India) – Rs. 90 Lacs ($225,000)
Makhaya Ntini (South Africa) – Rs. 44 Lacs ($200,000)
Total Spending: Rs. 23.70 Crores ($5,925,000)

Bangalore – Owened by Vijay Mallya / UB group

Players They Won:
Rahul Dravid * – Icon Player
Jacques Kallis (South Africa) – Rs. 3.6 Crore ($1,350,000)
Anil Kumble (India) – Rs. 2.0 Crore ($500,000)
Cameron White (Australia) – Rs. 2.0 Crore ($500,000)
Zaheer Khan (India) – Rs. 1.8 Crore ($450,000)
Mark Boucher (South Africa) – Rs. 1.8 Crore ($450,000)
Nathan Bracken (Australia) – Rs. 1.3 Crore ($325,000)
Dale Steyn (South Africa) – Rs. 1.3 Crore ($325,000)
Shivnarine Chanderpaul(West Indies)- Rs. 80 Lacs ($200,000)
Wasim Jaffer (India) – Rs. 60 Lacs ($150,000)
Total Spending: Rs. 19.34 Crores ($4,835,000)

Hyderabad – Owened by Deccan Chronicle

Players They Won:
Andrew Symonds (Australia) – Rs. 5.4 Crore ($1,350,000)
R.P.Singh (India) – Rs. 3.5 Crore ($875,000)
Rohit Sharma (India) – Rs. 3.0 Crore ($750,000)
Adam Gilchrist (Australia) – Rs. 2.8 Crore ($700,000)
Shahid Afridi (Pakistan) – Rs. 2.7 Crore ($675,000)
Herschelle Gibbs (South Africa) – Rs. 2.3 Crore ($575,000)
V. V. S. Laxman (India) – Rs. 1.5 Crore ($375,000)
Chaminda Vaas (Sri Lanka) – Rs. 80 Lacs ($200,000)
Scott Styris (New Zealand) – Rs. 70 Lacs ($175,000)
Nuwan Zoysa (Sri Lanka) – Rs. 44 Lacs ($110,000)
Chamara Silva (Sri Lanka) – Rs. 40 Lacs ($100,000)
Total Spending: Rs. 23.54 Crores ($5,885,000)

Mohali – Owened by Preity Zinta, Ness Wadia (Bombay Dyeing)

Players They Won:
Yuvraj Singh * – Icon Player
Irfan Pathan (India) – Rs. 3.7 Crore ($925,000)
Brett Lee (Australia) – Rs. 3.6 Crore ($900,000)
Kumar Sangakkara (Sri Lanka) – Rs. 2.8 Crore ($700,000)
S.Sreesanth (India) – Rs. 2.5 Crore ($625,000)
Mahela Jayawardene (Sri Lanka) – Rs. 1.9 Crore ($475,000)
Piyush Chawla (India) – Rs. 1.6 Crore ($400,000)
Ramnaresh Sarwan (West Indies) – Rs. 90 Lacs ($225,000)
Simon Katich (Australia) – Rs. 80 Lacs ($200,000)
Ramesh Powar (India) – Rs. 68 Lacs ($170,000)
Total Spending: Rs. 22.735 Crores ($5,683,750)

Jaipur – Owened by Emerging Media

Players They Won:
Mohammad Kaif (India) – Rs. 2.7 Crore ($675,000)
Yusuf Pathan (India) – Rs. 1.9 Crore ($475,000)
Graeme Smith (South Africa) – Rs. 1.9 Crore ($475,000)
Shane Warne (Australia) – Rs. 1.8 Crore ($450,000)
Munaf Patel (India) – Rs. 1.1 Crore ($275,000)
Younis Khan (Pakistan) – Rs. 90 Lacs ($225,000)
Justin Langer (Australia) – Rs. 80 Lacs ($200,000)
Kamran Akmal (Pakistan) – Rs. 60 Lacs ($150,000)
Total Spending: Rs. 11.70 Crores ($2,925,000)

The indian Tax budget is out for 2010

Key Features of Budget 2010-11

GENERAL:

• Economic crisis: “We have withered the global slowdown well,” says FM.
• 18.9% growth rate in manufacturing sector in 2009.
• Fiscal deficit pegged at 5.5%
• Hope to breach 10% mark in GDP in near future, says FM.
• Growth to exceed 7.2% in this fiscal, says FM.
• General Sales Tax and Direct Tax Code can be introduced in April 2011
• Gradual phasing out of stimulus, says FM.
• Govt to set up apex level Financial Stability and Development Council
• RBI to release additional licenses to pvt sector banks and non-banking financial institutions
• Repayment tenure for farmer loans extended by 6 months to June 30th 2011
• Delhi-Mumbai industrial corridor taken up for development
• Govt to raise Rs 25000 cr through Disinvestment
• Technology advisory group to be set up under Nandan Nilekani. UID authority given Rs 1900 cr
• Allocation to Defence over Rs 147,000 crore

PRANAB MUKERJEE ( INDIAN FINANCE MINISTERS BUDGET 2010 )

DIRECT TAX:

• Direct tax code will be implemented from April 1, 2011
• I-T dept to notify simple two-page Saral 2 form for individuals for current year
• Direct Tax proposals to give loss of Rs 26,000 cr; Indirect Tax to yield gain of Rs 45,000 cr

• No change in Corporate Tax
• Minimum Alternate Tax up from 15% to 18% on book profits
• Reduced Surcharge of 10% on domestic companies to 7.5%
• Professionals with Rs 15 lakh income need accounts audit

Personal Taxation:

• Income up to Rs 1.60 lakh: NIL tax
• Income between Rs 1.60-5 lakh: Tax at 10%
• Income between 5-8 lakh: Tax at 20%
• Income above Rs 8 lakh: Tax at 30%
• Minimum Tax Exemption limit for Senior Citizens and Women remains unchanged; i.e. Rs. 2,40,000 and Rs. 1,90,000 respectively.
• Additional Rs 20,000 deduction made available for investment in Infrastructure Bonds. This is above Rs. 1,00,000 80C exemption

INDIRECT TAX:

• Service Tax rates unchanged at 10%, to bring more services under service tax
• Duties on smoking and non-smoking tobacco products up
• Peak excise duty hiked from 8% to 10%
• Peak customs duty remains unchanged at 10%
• Rs 1 per litre excise on petrol, diesel
• Full excise cut on electric cars
• Partial rollback of excise duty on cement
• Agricultural seeds exempt from Service Tax
• News agencies exempt from Service Tax
• Service tax to GDP ratio is 1%
• Customs duty on gold, platinum imports raised to Rs 300 from Rs 200
• Import duty on silver raised to Rs 1500 per kg

India’s Next Trillion Dollar Era will see a huge boom in consumption and savings/investment, which will throw up several Winner Categories i.e. those which grow at over 1.5 times GDP growth rate, and are consolidated in nature.

There are 21 such Winner Categories.Within these categories there are Category Winners which will enjoy exponential growth in profits. Category Winners bought at reasonable (not necessarily cheap) valuation create significant wealth over the long term.

Top india  stocks for 2010

Tata steel

Suzlon

HCL TECH

Vijaya Bank

ONGC

Larsen and Toubro

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Indian stock picks for 2010

India’s 7.9% economic growth in the third quarter of 2009 vividly illustrates a dramatic transformation in the country’s image, from a land of elephants and snake charmers to that of an IT powerhouse and an emerging economic giant. While both sets of perceptions are valid, they hide far more than they reveal. Indeed, when it comes to the Indian economy, what most people believe to be true contains more fiction than fact.

1. Indraprastha Gas Limited (IGL) will continue to enjoy monopoly in the National Capital Region (NCR).
2. Cement stocks will be in limelight for some more days due to better than expected results estimates.
3. Tata Communications is the dark horse, according to many analysts.
4. Hats off to Narendra Modi for announcing new industrial policy for Gujarat. We need such concrete measures at centre to face current slow down.
5. I am positive on growth prospects of Mundra Port but current valuations are not sustainable.
6. Best auto companies by sales are Hyundai in 4-wheelers and Yamaha in 2-wheelers. Unfortunately, both Companies are not listed in the Indian stock markets.

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Analysts picks: Infosys Technologies, Hindustan Zinc, Tata Steel, Jet Airways, Adani Enterprises

1. Tata Power: Positive growth prospects but I have some doubts on financial front.
2. Maruti Suzuki: More clarity is needed.
3. IVRCL Infra : Rare infra company which is not facing any financial troubles. IVRCL is a must buy when markets correct in the coming months.
4. Marico: Good Company but I always try to accumulate growth stars.
5. Piramal Healthcare: Company is making strategic moves but take time.
6. Glenmark: Company will outperform other Pharma stocks if market conditions improve. This is a must buy when market corrects to reasonable levels.