Different Strokes

Naturally, Indian institutions are miffed. Having been forced to buy 60 per cent of the issue, they believe that the fees ought to have been collected by a desi merchant bank, not a firangi. You hear people grumbling about the BJP8217;s pseduo-swadeshi8217; policies these days.

A miracle turnaround

Recent figures show that in 1997-98 the Bombay Stock Exchange was barely in the black. Profits were down to Rs 38 lakhs after it transferred Rs 60 crores to a brokers8217; contingency fund. Worse, the bourse was committed to transfer another Rs 85 crore towards setting up a share depository. On November 9, somebody on BSE8217;s governing board questioned the survival of the exchange if money was transferred. On November 20, the board was told that BSE planned toconvert the meagre profit into a massive Rs 21 crore in 1998-99. Income from interest, penalties, clearing house operations and listing were to zoom. At this rate, the BSE could create a profit centre in offering turnaround solutions. But will the half year results due any day now show signs of the incredible performance?

Long story, half the funds

Alpic, bagged the lead investment banking mandate for the MKVDC irrigation bonds by giving the Mahrashtra government a comfort letter promising to raise Rs 500 crore. At the end of the week, it has raised only half the amount and issue closure has been postponed for the second time, in order to collect at least Rs 300 crores. Apparently, the trick that did it was a legal opinion from the advocate general, who opined that the bonds qualify as SLR securities because they have an irrevocable guarantee of the Maharashtra government.

Though the RBI and the big nationalised banks were initially not to happy with this since it was seen as bypassingthe state loans sequenced by the RBI , the governor finally said that the state borrowing will be reduced to the extent of the bond collections. After this, state cooperative banks were persuaded8217; to invest in the bonds, and the government even expects UTI and SBI to make a contribution.

Confused futures

A powerful lobby is working overtime for permission introduce dollar-denominated commodity futures in India. Part of the agenda is to present trader dominated commodity exchanges as efficient and professional with proper clearing, settlement and delivery systems. Marketmen report that most exchanges are controlled by powerful commodity traders; that delivery structures are inadequate even in the cash market, defaults are frequent and arbitration proceedings biased. If none of this makes headline news, its mainly because mainline dailies and business magazines do not even have a nodding acquaintance with these markes. The government is not even attempting to create a single, professional,multi-commodity exchange to ensure better regulation of cash trading. Curiously, the same bunch of babus who decide such issues, don8217;t believe that the far more transparent capital markets are ready for options and futures trading.

Brand busters?

It should not be long before advertisers8217; commission market research agencies to figure out how many products attract negative brand equity, because of mindlessly repetitive advertising, which disrupts cricket matches and movies at the most interesting moments. The frequency of repetition is directly proportional to how interesting the movie/match is. The level of irritation at the advertisements is a multiple of that number.

The comments of those glued to the idiot box suggest that even fairly interesting advertisements are causing brand aversion rather than brand recognition.