SEBI smells ulterior motive behind forged letter to Pyramid Saimira

SEBI issued the following clarification on news reports relating to Pyramid Saimira Theatre Ltd.

"It has been widely reported in the media that SEBI has vide order dated December 19, 2008, directed Mr. P S Saminathan, the CMD of Pyramid Saimira Theatre Ltd. (PSTL), to make an open offer for acquisition of shares of the Target Company (PSTL) at a price of not less than Rs. 250/-. A copy of the letter purported to have been issued by SEBI was also flashed on some TV Channels today.

"It is hereby clarified that no order or letter has been issued by SEBI to Mr. P S Saminathan on 19.12.2008. It appears that the said letter is being circulated with ulterior motives.

"SEBI is separately investigating into the matter including the origin of the letter. SEBI is also separately inquiring into the dealing in the scrip following the press report including alleged violation of SEBI (SAST) Regulations, 1997.

Mumbai

December 23, 2008"

Why the worst of times can also be the best of times

What are the learnings for the Indian economy and corporates from the pngoing global financial crisis? Here is an expert view by Sudip Bandyopadhyay, Director & CEO, Reliance Money

The world has changed. After years of benign economic conditions, the four horsemen of financial apocalypse – credit crunch, recession, volatility and uncertainty – are blazing a trail across the horizon. Executives must now reassess their organisation’s agenda and communicate it clearly. If history is a guide, most will frame the current conditions as a threat and take action to protect what they have. Mitigating threats in tough markets is prudent, but companies that adopt a defensive position ignore a counter-intuitive truth: the worst of times for an economy as a whole can be the best of times for individual companies to create value.These are probably occasions when a company can create value significantly in excess of the cost of the resources required to seize an opportunity, whether by acquisition, innovative product launches, expanding in new markets or buying resources.

Golden opportunities do not come along every day, and most people think they are more likely to arise when the good times are rolling. In fact, the moment when you can transform your fortunes often emerges during the toughest times. Companies can also use difficult trading conditions to drive a hard bargain on tangible assets. Emirates purchased Airbus A380s on favourable terms one month after the September 11 attacks, at a time when many airlines were reluctant or unable to make large commitments.

A crisis marks a clean break with the past and creates an external rationale to make unpopular but necessary changes. In a downturn, investors and Boards are more forgiving of short-term earnings dips that might result from actions to improve the organisation in the long term. Kun-Hee Lee, Samsung’s chairman, for example, welcomed the currency crisis that roiled Asian markets in the late 1990s. A decade earlier, Mr Lee had initiated a set of changes to transform Samsung from a competent Korean player to a global leader. Mr Lee harnessed the energy unleashed by the external crisis to reinvigorate the internal changes.

Many companies alternate between growth binges and periods of sober cost cutting. The better approach is to maintain cost discipline throughout the economic cycle. When considering cost cuts, managers should ask themselves how the process will help to maintain cost discipline in the future. The worst of times can be the best of times to create value for leaders alert enough to spot opportunities and courageous enough to seize them

India invites Russian investment in energy

NEW DELHI:Union Minister of Commerce & Industry Kamal Nath has said that there is immense possibility for joint investments between INdia and Russia in areas like banking, information technology, telecommunications, high-technology sectors, power, pharmaceuticals and textiles.

Addressing the India-Russia CEOs Council Meeting here today,Mr Kamal Nath said that India and Russia have managed to sustain strong business vibes in recent years and added that the India-Russia Forum on Trade & Investment has underscored the need for investment cooperation in a large number of sectors.

“Indian companies are quickly establishing themselves in Russia and the cumulative Indian investments in the Russian economy amounted to US $ 744.1 million as of March 31, 2008”, he said. The meeting was also attended by Shri G.K. Pillai, Commerce Secretary Ajai Shankar, Secretary (IPP) apart from CEOs from both the countries. During the occasion, the Minister also launched the IBEF Website in Russian language.

Mr Nath said there is a strong case for Russian companies to invest in India, especially in power sector, as Russia is energy rich and India's energy requirements are going to increase manifold over the next 10-15 years.

The Minister emphasised that critical sectors of the economy, like agriculture, have started a process of revival by growing at a rate of close to 4%. This growth rate is a significant contribution to inclusiveness, which is vital for India as it helps sustain domestic consumption, which will sustain our growth story in the short, medium and long term, he added.

Bilateral trade between India and Russia during 2008-09 (April-July) was to the tune of US $ 1613.56 million. Major items of export are drugs, pharmaceuticals & fine chemicals, RMG cotton including accessories, tea, coffee, tobacco un-manufactured, processed minerals, plastic & linoleum products, machinery & instruments, transport equipments, electronic goods etc. Major items of import are iron & steel, non-ferrous metals, coal, coke, newsprint, silver, synthetic & reclaimed rubber etc.

Cumulative FDI inflows from Russia till August 2008 were US $ 144 million. The top sectors that attracted FDI inflows were medical & surgical appliances, hotel & tourism, food processing industries etc.