Monday, November 11, 2013

BL -Life ISsssss Like That ! (A SERIAL)

Nov 13

PC X PA (IA?)* ; CAG -
*Probe / Investigating Agencies

Chidambaram flays probe agencies, CAG for overstepping limits

Finance Minister, P. Chidambaram, with CBI Director, Ranjit Sinha, at an international conference on evolving common strategies to combat corruption and crime in New Delhi on Tuesday. Photo: Ramesh Sharma Says respect dividing line of policy-making and policing »


Take the madness out of traffic

Traffic management is important every minute of the day. Effective traffic management saves both time and precious lives. If it takes a movie to drive home this point, so be it. »

< C >
Bottom but nonetheless "KEY" note reads: "The author is with PUBLIC AFFAIRS Centre, Bangalore. Views are PERSONAL.)- (B font supplied)
A Simple Thought to Share: Reading down, having eloquently put down a few of the root causes, why the glaring self-contradiction? Does it not suggest that there is a lack of courage of conviction behind this sort of a Note, - which is invariably stumbled on, verging on a "disclaimer”!
Coming to the ‘root’ causes, no knowing why  not even an oblique reference been made to certain other more feasible angles,  such as, - at least as a temporary / interim measure, reducing the 'vehicle population' on the arterial  roads, taking readily perceivable useful clues from what even small countries e.g. Singapore has resorted to , since decades.
In a lighter vein (to recall an old joke, but not yet become stale): A farmer from  Vellore, after years of no-touch with hence virtually , for all practical purposes, a stranger to day’s Madras (Chennai !) ,  one morning landed in ‘Koyambedu’ central bus stand. Beckoned an ‘auto’ , for going to T Nagar. Abruptly but curtly told the Charge is a ‘fiver’.  The rudely shaken poor Vellore-vasi   , with no second thought, instantly hurried away, to hop into a luxury bus standing by, about to depart  for Vellore.
(Pardon! - if adjudged to be a poor story letter)

Sunday, November 10, 2013

Sensex X Economic (Sense) < A Debauchery / Fraud on Common investor , of the heinous kind


Editorial Comment Rss icon

Making banks safer

Capital adequacy and tighter regulation are just one step forward

 Sebi to recover Rs 3,000 cr from five Satyam execs.
Looking from an altogether different perspective, as commented elsewhere: This is a report seemingly carrying an unhidden fact of life : In the absence of any foolproof 'mechanism' in place, -which, of course, in the nature of things, will remain as ever before and is bound to remain a pipe-dream, so also a non-starter , - for any such scam to come to light on its own and in due course, everyone concerned would have had to wait , no knowing for how long; but for the 'honest' realization and admittance by the culprit himself, voluntarily, of his misdeed/misadventure of this kind. In individual's perspective, to fit into the context, it is anybody's guess how the drastic changes, being made from to time, in the very form and substance of independent 'statutory audit report', for, besides the rest, the corporate , including the last in line , unwittingly or otherwise so, could even remotely be of any help out; but , instead, may only lead to further complicating and worsening the extant scenario. Over to the eminent experts, if so willing, for a serious but unbiased / impartial deliberation and honest opinion.

"....Sebi has asked Raju and others to disgorge within 45 days the wrongful gains of Rs 1,850 crore, with a simple interest of 12 per cent a year since January 2009." 

 On a loud thinking: Granting that the wrongful gains of ..required to disgorge,have been technically and scientifically worked out, do not, logically and morally, the impacted investors at whose cost the gains are assumed/stated to have been made, if not totally, need to be compensated there out ! This sporadic reaction pivoted on principles of natural justice, though likely to be intriguing, might be worthwhile due consideration as of general relevance and application in all such instances in which the stakeholders' rights and interests happen to have been set at naught/ jeopardized. Legal pundits backed by their eminence will surely have something to say, for or otherwise!

July 4

Government may take the sting out of SEBI | Business Line
7 hours ago - Capital market regulator SEBI may have to settle for reduced authority following protests against it being given search and ... Lessons for SEBI

As has been often criticized in knowledgeable circles, there have been instances in the past, within living memory, in which the SEBI,  has , unwittingly or otherwise, out strtched /over stepped its assigned powers as a mere regulatory authority by choosing to follow patently misconceived ideas of its own, recklessly, thereby exceeding its brief. One of the irritants has been its sporadic resort to rules- /- decision making, without much of a home work as warranted in the wholesome interests of the national economy.

There is no gainsaying that the utmost need, nay opportune time, for  monitoring and regulating the functions of  SEBI, so also of the other like regulatory or semi regulatory authorities, has come to surface in a big way.

Delisting >

Moreover, the skyrocketing costs as well as management attention required ensuring compliance with increasingly onerous securities laws and regulations as well as listing standards compel managements and controlling shareholders to delist the company so as to enable greater focus on the company’s business.[1]
It is in this context that SEBI earlier this month issued a Discussion Paper on Review of Delisting Regulations. The Discussion Paper seeks to review the current state of affairs, identify the deficiencies in the delisting regime and propose some suggestions for overhaul. It observes:

 Regulatory Domain over M&A for NBFCs

 It is noted that, issuance of such notification by way of extending 'regulatory regime', either by RBI or SEBI, has been frighteningly assuming almost the 'force of habit'.

The norms laid down are, of course, claimed to have an ideal aim namely,"...the M&A is not prejudicial to public interest or the interest of depositors." In a manner of viewing, the once- upon- a -time (in the hoary past) vociferously decried and stoutly resisted 'license raj' has, in recent times, staged a forceful come-back. No knowing how far or to what extent all such measures, rightly or wrongly thrust upon, are going to fly in the face of or meekly yield to the near dramatic changes lately announced in further liberalizing the governmental attitude towards FDIs and FIIs.

Further, if one were to bear in mind the common bitter experience even in the recent past, the pastime of churning out more and more such fashionable rules, with no let up, but without a matching effective monitory mechanism, mostly entail adverse consequences to the national economy; but without anywhere meeting or remotely succeeding in the stated aim.

Over to 'experts' for true and fruitful enlightenment.


Shareholder inactivism

You can empower investors to vote out bad decisions, but cannot force them to exercise their rights »

The new Companies Act allows minority shareholders to initiate class-action suits and vote out corporate actions inimical to their interests. But empowering investors is only half the battle. For it to translate into better governance at India Inc, public shareholders and the domestic institutions which represent them should be willing to speak up, when companies infringe their rights. So far, there is precious little happening on this front.

All prima facie hollow or empty rhetoric ; in the ultimate analysis, fail to provide any practical solution, easily adoptable and workable, and also take on effectively, without legal recourse - resort to court. What really is called for is an inhouse remedy - within the corporate set-up, with the least hassle ad waste of time and energy.Certainly, legal battle is no way ?!

For instance, the Regulatory Bill pending take-off suffers from the same malady, rather serious drawback; in that , the ultimate resolution of grievances provided for only through a battle in the arena of court.

On shortcomings in invariably suggested recourse to court litigation, what has been said / underlined by legal legends must be taken to be enough or more than adequate; for anyone to be convinced that that is no 'solution' at all; but on the contrary is no different from - blind and deaf  leading a blind, if not deaf !

"You can empower investors to vote out bad decisions, but cannot force them to exercise their rights"
The editorial has tended to play the same old song but not even in a significantly different tune anyway soothing to the once -for -all set socalled incorrigible and inscrutable ‘mindset’.
Strikingly reminds one of the undeniable or incontrovertible truth in the saying, - any creation on earth, not alone  ‘animal’, can only  be taken to water or fodder  but can never be forced or persuaded, against its wish and will, to drink or bite, - certainly never to gulp down or chew, much less to assimilate / absorb into the system - CAN ONE, except the invisible CREATOR, EVER  DO?????!!!!!!
Coming down to earth, - does not the whole fallacy or mischief  traceable to that remedy of  'recourse to class action' - which is worse than the very ailment/ evil itself  sought to be remedied ?!


ICAI Launches E-Book “Guidance Note on Audit of Books (2014 Edition)

Bankers - In The US !
'Mindboggling': Federal Judge Slams DOJ Refusal to Jail Bankers

The Commodity Futures Modernization Act was also a big factor:

venkat swami

This latest news from the US, it is noted, goes to sadly belie and rudely shake the impression generally obtaining in, besides the US, every other country across the globe – amongst the customers and the rest of the stakeholders. The reference is to the seemingly ingrained belief that,- the judiciary can , in any event, be relied on as the last refuge for successfully seeking redressal of all genuine grievances, - not only against the individual bank management, but also against the concerned duly empowered governmental authorities (the Finance Ministry and the apex bank)

     RBI : Banks to ensure Timely Issue of TDS Certificate to Customers on TaxGuru

    C (updated) >

    This latest report from across the border, it is noted,goes to sadly belie the impression generally obtaining in, besides elsewhere, in our country – amongst the customers and the rest of the stakeholders. The reference is to the seemingly ingrained belief that,- the judiciary can , in any event, be relied on as the last refuge for successfully seeking redressal of all genuine grievances, not only against the individual bank management, but also the concerned duly empowered governmental authorities (e.g. in India, the Finance Ministry and the RBI)

    < May be contd.


    Industry, inflation data point to economy's bottlenecks

    FinMin mulls measures to attract FIIs to stabilise rupee, boost stock markets

    Chidambaram interacted with FIIs who expressed their concerns on taxation issues, high fiscal deficit and current account deficit

    Six of the country's leading bankers say while green shoots are visible, the pace of recovery will be slow because of a whole lot of unresolved ...

    Bank has got the board's nod for preferential allotment of equity shares

    Any dilution in govt's stance on equity injection due to fiscal pressures could have an immediate impact on the ratings of weak banks





    The senseless, irrelevant Sensex

    Jubilation by a few, for a few. — A.M. Faruqui Only 0.5 per cent of all companies are listed on BSE. How then can Sensex reflect fundamentals? »

    BL (2005)

    The Hindu Business Line : Stock market: Barometer of economy?

    The Finance Ministry mandarins too seem to be caught up in this web of confusion. That is the primary reason for this distorted obsession about the market, and there are several factually incorrect assumptions about the market's role.

    1.     Is The Stock Market A Barometer Of The Nation's Economic Health ... › Discuss

    Stock market: Whom does it represent?

             < "...The answer lies in understanding the structure of both market and household savings. ..."

    THE answer is, in one’s forth right view, faulty to the core; and even by adoption of a liberal valuation norms or standard  deserves to be given a big Zero   mark, if not a minus mark. 'Senseless'  is not the "Sensex"; but it is the collective driving forces, motivations, so on , behind the scenario/smoke screen , all rooted in the basic human trait of - GREED, in all its ramifications. One honestly thinks that though an attempt has continued to be made perilously in recent times, as ever before, against all odds , - in sum, to keep the myth surrounding the unrelenting Stock Market kicking and alive somehow , the fact remains staring in the face that, should reliance be placed on the  unbiased and truthful expert view given publicity, the stock exchange has never been, and  in any case long ago ceased to satisfy or anywhere meet , the once-upon-a- time- commonly-ingrained belief ; that is, that the stock market represents the state of the economy or economy’s health. Looking back, any number of expert articles are lined up.

    A couple of them to readily illustrate:

    The Hindu Business Line : Stock market: Barometer of economy?

    Saturday, November 9, 2013

    ICL: Law v Lawyers (LITIGATION ?) in the wake/ushering in of 'GLOBALISATION' (Serial)

     July 7
    Posted: 03 Jul 2014 06:41 PM PDT
    [The following post is contributed by Abhishek Bansal and Stuti Bansal, Corporate Professionals, Advisors & Advocates. The authors can be reached at abhishek@indiacp.comand respectively)

    ".....may force companies to consider other alternatives such as taking loans from banks instead of accepting deposits."

    The new rules, as understood, has the one basic objective of safeguarding and protecting the interests of the investing public, mostly in the category suffering from ignorance or imbecility , having no capacity to know the nitty-gritty or not-so-obvious risk factors. Even if the "other alternatives" were to be resorted by the invested companies,that would have the same frightful consequences; the only difference being it is the banks and stakeholders to whom the same risk factors would be passed and be faced with.

    As regards the mentioned requirements of filing returns or documents with the ROCs, without the machinery of a sophisticated kind in place to constantly scrutinize and keep monitoring as a continuous exercise,it seems to be a mere empty formality, so called paper-tiger, with no real purpose to serve.

    Similarly , the requirement
    "to obtain credit rating at regular intervals during the tenure of the deposit", is at best, of nuisance value, again with no real purpose to be served.

    These , noted to have been simply glossed over in the write-up, nonetheless , in one's perspective, do call for a rethinking and drastic modifications of the new rules, seemingly framed with no insightful examination of the intricate implications.

    June 21 

    Consttution of India  X Its Law Officers


    Sec 56 of Contract Act

    The Supreme Court on Frustration and Statutory Contracts

    In its recent judgment in Mary v State of Kerala, the Supreme Court has considered the scope of section 56 of the Contract Act, 1872, and its relationship with statutory contracts..

    The Court’s reasoning is that since Rule 5(15) authorised the State to forfeit the deposit for non-performance, the contract had made provision for non-performance, unlike in the cases cited to it by counsel for the appellant. With respect, it is submitted that this cannot be correct: the non-performance on which the frustration argument is founded is not the refusal to pay the remainder of the purchase price but the supposed inability to run the shop..

    The view of the writer casting aspersions on the correctness of the conclusion reached by the apex court cannot be faulted to be illogical; if pursued in depth might certainly result in a better view being taken.

    The subject contract has come to be looked upon, also specially referred to, as a ‘statutory' contract. Also, special significance or importance, though, in one’s view  not at all warranted, has sought to be attached to the ‘rule (s)’ framed by that authority. Inferably, the reason behind such thinking is that one of the parties happens to be a so-called ‘statutory’ authority. Whatever that be, the intriguing question that craves for a righteous answer is this : - Why that should make any difference to giving effect to a provision of the Contract Act , both in letter and spirit, to a transaction, which is purely a ‘commercial’ transaction.

    Incidentally, in modern times, there is no gainsaying that the concept of ‘government’ (so also, the attendant ideology of ‘good governance’ itself) having been subjected to a violent change- that is, the activities of the government having been pathetically but increasingly ‘commercialised’- why the need for making any such hypothetical distinction, based on faulty logic?

    Law experts may wish to so reframe the foregoing proposition as considered necessary, before venturing to deliberate at length.     


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     The Aliakmon and Title to Sue: a recent Bombay decision

    None can readily disagree with the point made in the initial reaction posted.
    Looking back, one would have thought that citing,- more as a force of habit, or flight of fancy,  than anything else, foreign case law -e.g. foreign HL's or QB's, be it of direct relevance even remotely, or not, for readily infer able sound reasons, was almost given a bye-bye / fond farewell. In one's perspective/ sincere view, any such write-up trying to analyzing or understanding Indian cases in the light of foreign cases, equally so even in court practice, could, besides serving no useful purpose, at best help in muddling up independent understanding of the legal position back home.

    Why to blame judges? It is lawyers who are supposed to function as  effective catalysts in law- / case- law - making. If so, it is they who should desist from/have got cured of the irresistible decades- old-itch, doing so. For, though as someone said in a lighter vein, but in reality itself, if at all it is the Bench alone who could have a pardonable excuse for being ignorant of, any law (or all laws), more so of case law. Any possible counter view?


    Globalization and the Indian Legal Profession
    For Ready Reference >

    The Harvard Law School Program on the Legal Profession has been conducting an extensive study called Globalization, Lawyers, and Emerging Economies (GLEE), which examines the changes occasioned to the legal profession in various countries such as China, India and Brazil due to the effects of globalization.

    As part of this effort, a team of researchers undertook studies on the Indian legal profession, and the topics covered range across litigating lawyers, corporate law firms, in-house counsel, legal education, legal process outsourcing and several other related topics. While the end product is expected to be presented in the form of an edited volume, some of the papers are now available on an SSRN Research Paper Series launched by the Program.

    The following papers are available:

    3.         Pro Bono and Corporate Legal Sector in India by Arpita Gupta;

    4.         India's Grand Advocates: A Legal Elite Flourishing in the Era of Globalization by Marc Galanter & Nick Robinson. In this post on the Law and Other Things Blog, Nick has an interesting take on the paper and his experience working on the project; and

    More papers are likely to be added to this series in due course. 

    C > wprt  3. & 4 above <
    Reaction (impulsive)> On a quick glance, felt to be a timely Feedback this. May prove to be exclusively useful to legal fraternity,- particularly to new entrants having a true passion for 'knowledge'- the concept to be understood in its ideal, if not ideological, original meaning,- coupled with a desire to think and act on 'constructive' lines.As such, therefore,it requires to be looked upon and used, to begin with,as a material made available on a silver plate,for helping an independent study or research, or by whatever name one may call it.So that,could serve the obviously intended purpose of catalyzing more 'sharing', objectively, by anyone,- not merely experienced and eminent others in the field. With a sincere aim of attempting to bring about an awareness, nay awakening, for the betterment of the presently very much lacking "professional efficiency / excellence" (in the profoundest sense),and more importantly,from the larger societal/sociological view point.