Monday, March 17, 2008

RBI Responds : FOREX Derivative Cap May Arrive

The RBI has called for data from banks to assess their expsoure to FOREX derivatives in domestic & overseas markets.
Local exposure mainly relates to interest rate and currency options and swaps while international investment includes credit derivative structures like credit-linked notes based on foreign currency loans and bonds raised by Indian companies abroad. RBI has asked banks to limit their capital market exposure to 40 per cent of their net worth, with direct exposure limited to 20 per cent.
As part of the proposed valuation norms, RBI could also ask banks to mark to market the derivative portfolio maintained in the held-to-maturity (HTM) category.

MTNL planning 50% stake offload in SunTel

In a case of wagging the dog by it's tail, MTNL, one of the shortlisted preferred bidder for Srilankan TelCo SUNTEL, is in talks for offloading 50% stake. As a 100% MTNL subsidiary SUNTEL would be subject to MTNL policies & practices and "SunTel is a profit making professionally run company, and MTNL doesnt want to change its working".
The PSU, which is a JV partner in Nepal’s United Telecom and also offers telecom services in Mauritius through its 100% subsidiary, has been scouting global markets for new licences to make up for shrinking local opportunities.

MTNL has lost its bid to acquire Telekom Kenya & failed to win mobile licences in Saudi Arabia, Qatar, Bhutan and several other countries. However second chance is around the corner— Qatar, Lebanon, Oman, Bahrain, Iran and Turkey are set to auction fresh mobile licences in the coming months.
As reported in Economic Times

Tommy eyes 51% in Indian Business

Tommy Hilfiger, controlled by buyout private equity Apax Partners, is looking at direct ownership of its India operations by bringing in the maximum permissible 51% foreign direct investment (FDI) allowed in single brand retail.
Tommy is looking for direct ownership, buying out perpetual India rights, currently with the Murjani Group.

The Murjanis invested in young Tommy Hilfiger when the American designer introduced his first signature collection back in 1985.

The Murjanis operate Tommy Hilfiger’s core fashion apparel business through an equal joint venture with Arvind Mills, which has 23 outlets across the country at present. The Murjanis have inked similar licensing deals with other Indian corporates like Titan Industries for watches and Welspun for home furnishings. The Murjanis, through their Brand Marketing India Pvt. Ltd. are pumping investment to develop other international fashion brands like Gucci, Jimmy Choo and French Connection. BMI recently raised $10 million through a private placement with VC fund Matrix Partners, for the cash burning realestate intensive business.