Different Strokes

Learning about technologyHow can India catch up with changing technology if it clings to mindlessly expensive systems? Did you know that ...

Learning about technology
How can India catch up with changing technology if it clings to mindlessly expensive systems? Did you know that when Vajpayee flies off to attend the Chogm meet in South Africa, a team of three to four officers from VSNL would have gone ahead to provide him hotlines to India? The MEA foots the hefty bill and the entire entourage gets to make free calls. We do not want the PM and his team to carry around Iridium phones, what8217;s wrong with good old STD/ISD lines? The French President Jacques Chirac relied on the national network when he was in India, why not the PM? It is the same with our Z8217; category VIPs. It8217;s all very well for the PM to co-opt out techie billionaires on his task force, unless India is willing to adapt to technology they will only walk away in disgust.

Selling cards to save the bottomline
THE stock market boom of recent months has been a blessing for the BSE. It desperately needed to raise funds to make up for its investment in the Central ShareDepository and in the trade guarantee fund. The value of the BSE card which had dropped to the Rs 50 lakh region has soared past Rs 2 crore and it sold 11 cards at around this level. Sensing more opportunity, the BSE has quickly announced the sale of 14 more cards, which should fetch another Rs 28 crore or more. If the BSE tightens its belt and cuts costs then the Rs 50-odd crore it will collect will keep it out of the red.

Unfortunately, the new cards are being snapped up by existing brokers wanting multiple membership to expand trading limits. Ideally, the net worth criteria should eliminate the need for multiple cards, which are an unhealthy practice. But at this point, the BSE is clearly more interested only in collecting the highest price for its cards rather than worry about multiple cards.

Deposit or equity 8212; a tough choice
SOME members of the NSE have stepped up the demand that it should refund the hefty deposit that it had collected for debt market membership. They argue that sincethe debt market has failed to take off and the NSE is collecting fees for providing little more than a trading screen, it should not charge so much money. They feel that a solution can8217;t lie merely in adjusting the deposit against margins payable in the equity segment, NSE ought to return the deposit.

This debate has been on for years, and the NSE has refused to react,. Such members have now approached the RBI and debt market associations, with a new way to increase the pressure. They say that the NSE should either return the deposit or offer them NSE equity in exchange. Since the NSE is a profitable exchange, this makes good sense for the brokers, but the NSE management would do anything to avoid something so drastic. Would debt market brokers finally get some money back?

Speeding up slowly
WITH Justice Rane of the Special Court appointed to hear the Securities Scam cases set to retire in another fortnight, a new judge, Sharosh Kapadia, has been appointed to hear civil cases which have beenpending for four to five years. Sources say that there will be another judge appointed to replace Justice Rane too. Banks, institutions and others who have been cultivating endless patience waiting for the wheels of justice to move are finally hopeful that a few more cases may be disposed off in the near future.

The Progressive test?
ON Monday, the Joint Busines Council of Ficci and Assocham are conducting a two-day US investment summit to showcase what they call The Progressive West8217;. The two bodies had made news last week by demanding that FIs ought not to be allowed to sell Modi Rubber shares. This time there is more irony. The object of the summit is to showcase investment opportunities for US in Indian States, yet the Essar group, which is the only Indian company to have defaulted on an international obligation a 250-million FRN issue is the chief co-ordinator. And its chairman Shashi Ruia heads the JBC.

Author8217;s email: suchetadalalyahoo.com