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My letter in FE of 21.07.10 Author: Jatinder Pal Singh Broca Jul 21

Here is the editorial from FE of 16th July :Editorial : More than a symbol

The Financial Express
Friday, Jul 16, 2010

Mumbai: Once upon a time, we had no money. Many have called this our animal phase. Then, we came up with currencies. And then much later, we complemented some of them with symbols. As the number of countries grew, so did the number of currencies. And this phenomenon kept strengthening as trade leapfrogged across seas and continents to assume its current transnational dimension. But not all national currencies have symbols today. And not all those that do, attract significant attention, globally speaking. The keyboard on which this is being typed boasts only one currency sign—$. And this fact speaks volumes even if it does not negate the need to consider an alternative global reserve currency. It’s against this backdrop that we comment on the Indian government’s decision to formalise a symbol for the Indian Rupee. How about RS, Rs, INR, etc? Those are only abbreviations. Why do we need a currency symbol? This is sort of like questioning the need for a national flag or emblem or song. These are all symbolic players in global communication; to become integrated in the latter, it helps to have all the former. It’s a question of vision.

Note that the finance ministry announced a public competition for the rupee’s symbol design at a time when the the currency was going through a low ebb. Barclays Capital had said it could drop to 56 against the dollar. Also, there was talk of the euro—the most modern and wide-ranging currency experiment—becoming the new dollar. A year on, the rupee is hovering at a healthy 46 to a dollar, and the euro is in the doldrums. Symbols of both the euro and dollar reflect investments in continuity and aspirations of stability. On both criteria, IIT post-graduate D Udaya Kumar’s winning design is a winner indeed (artists may carry on an aesthetics debate). Whether it will become popular and even ubiquitous will depend on how strongly our economy performs. If India’s GDP and trade volumes keep growing impressively, then people will fall over each other to update keyboards, fix price tags, mobile pads, trading tickers and so on accordingly. It will also help if the rupee is allowed greater internationalisation. As of now, as RBI has noted, almost the entire bulk of international trade in India continues to be denominated in the dollar.

This is what I had written to FE on 16th July in response to the above editorial on the new rupee symbol :

Dear Sir,

This refers to your Editorial:”More than a symbol” (ET 16th July 10) .

The new logo for the Indian Rupee is indeed a right step towards creating a distinct Brand Identity of Indian currency in the global international market.

When other countries have their own symbols and logos,why too should have one,which is in tune with the changing global scenario where every one seems to be vying for a bigger share of eyeballs and footfalls.

The prize winning logo of Udaya Kumar, shortlisted by our Government, seems to be an apt one -both symbollically and aesthetically but, will need modifications in standard computer key boards for popularising its use.

Also a massive campaign will be needed to make the common man and rural masses aware of it.

A hologram of the new symbol may preferably be used on currency notes to convey authenticity and to prevent printing of fake currency notes (counterfeiting)

On a lighter note,while we are doing away with the earlier Re or Rs or INR,Shahrukh Khan’s latest home production movie on Robots is titled :Ra.1 which,if we go by the media reports,is the acronym for ‘Random Access-Version One’. On a similar note, perhaps the Government is going for a new shapely logo of the Rupee – call it ” Re/Rs Version 2010 ” !!

J S BROCA

NEW DELHI

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Now here is the final version of my letter (as usual chopped up and shortened on the grounds of “space constraints”) !!ttt editor

The Financial Express
Wednesday, Jul 21, 2010

Apropos of the edit ‘More than a symbol’ (FE, July 16), the new logo is a right step towards creating a distinct brand identity of the rupee in the international markets. The logo is apt—both symbolically and aesthetically—but will need modifications in standard computer keyboards for popularising its use. Now, a mass campaign by the government is needed to make the common man and rural masses aware of the new symbol.

JS Broca, New Delhi

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If you don’t have an e-mail id,you don’t exist ! Author: Jatinder Pal Singh Broca Jun 30

If you don’t have an e-mail id,you don’t exist !

Today,we have our own e-mail id.Some even have a number of multiple ids on Google,Yahoo,Hotmail etc.

Here is a story (real ?) on one man who did not have

an e-mail id and yet rose to become an empire builder.

How ? Read on……

Microsoft & Tomatoes

A jobless man applied for the position of “office boy” at Microsoft. The HR manager interviewed him then watched him cleaning the floor as a test. “You are employed” he said.”Give me your e-mail address and I’ll send you the application to fill in, as well as date when you may start. The man replied “But I don’t have a computer, neither an email.”I’m sorry”, said the HR manager,”If you don’t have an email, that means you do not exist. And who doesn’t exist, cannot have the job.The man left with no hope at all.

He didn’t know what to do, with only $10 in his pocket. He then decided to go to the supermarket and buy a 10 Kg tomato crate. He then sold the tomatoes in a door to door round. In less than two hours, he succeeded to double his capital. He repeated the operation three times, and returned home with $60. The man realized that he can survive by this way, and started to go everyday earlier, and return late Thus, his money doubled or tripled every day.Shortly, he bought a cart, then a truck, then he had his own fleet of delivery vehicles. 5 years later, the man is one of the biggest food retailers in the US.

He started to plan his family’s future, and decided to have a life insurance. He called an insurance broker, and chose a protection plan. When the conversation was concluded,the broker asked him his email. The man replied, “I don’t have an email”. The broker answered curiously, “You don’t have an email, and yet have succeeded to build an empire. Can you imagine what you could have been if you had an email?!!”The man thought for a while and replied, “Yes, I’d be an office boy at Microsoft!”

Moral of the story:

1) Internet is not the solution to your life.
2) If you don’t have internet, and work hard, you can be a millionaire.
3) If you received this message by email, you are closer to being an office boy, than a millionaire…

Have a great day !!!

P.S -Do not forward this e-mail back to me, since I am closing all my email addresses & going to sell tomatoes!!!

Category: Current Affairs, Humour, People, Social Commentry | Leave a Comment

My letter in Financial Express of 28th April 2010 Author: Jatinder Pal Singh Broca Apr 29

My letter in Financial Express of 28th April 2010

I read the following editorial in FE of 22nd April :

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FE Editorial : Boost to infra

The Financial Express

Thursday, Apr 22, 2010

The measures taken to boost infrastructure investments in the annual credit policy will go a long way in further accelerating and extending fund flows into this crucial sector.

Particularly welcome is the move to liberalise the availability of bank funds to large-scale infrastructure projects by treating annuities from BOT projects and toll collection rights as tangible securities. Equally welcome is the move to reduce the provisioning for substandard infrastructure loan accounts from 20% to 15% under certain conditions that will allow banks to escrow cash flows and also secure a clear and legal first claim on such cash flows.

Similarly, the appetite for infrastructure bonds will also be buoyed up by the move to allow banks to classify their investments in non-SLR bonds issued by infrastructure companies in the held-to-maturity category from the mark-to-market category. These steps will not only improve the availability of bank funds, which have shot up by an astounding 42.3% to Rs 1,08,757 crore on a year-on-year basis in the period ending February 2010, but also improve the working of the corporate bond market.

This will boost private participation in infrastructure projects, which is crucial for sustaining long-term growth. This is especially the case as India’s potential on this count is substantial; the country has already emerged as a world leader in the implementation of infrastructure projects with private participation.

Most recent numbers from across the globe show that India has registered impressive gains in investment commitments in infrastructure projects with private participation going up from $20.6 billion in 2000-05 to $24.7 billion in 2006-08 in the telecom sector alone. Gains were much higher in the transport sector, where such investments accelerated from $4.3 billion to $19 billion, and also in the energy sector, where they shot up from $8.4 billion to $28.5 billion during the period.

This is in sharp contrast to the trends in other countries like Brazil and China, where the investment commitments in infrastructure projects with private participation came down in the latter half of the decade. The only other major developing country that has been able to improve private participation in infrastructure projects was Russia. But Russian gains were only in the energy segment where the fund commitments increased more than twelve-fold. However, India still has a long way to go before it can rest on its laurels, as the demand for private sector funds is expected to grow exponentially, given that overall funds for development of the infrastructure sector are expected to shoot up from around $500 billion in the Eleventh Plan period to more than a trillion dollars in the next.

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Here is what I had e-mailed to FE in response to above :

Dear Sir,

This refers to your Editorial On Infrastructure ( “Boost to Infra” FE 22.04.10).

While appreciating your views,I would like to make a point that there are several problems related to financing of infrastructural projects.

These are as under :

a) Demand for investment is voluminous but there has been a lack of interest from private sector in general as observed from past trends so far.

b) Weak tariff regulation, dis-honouring of concessional committments made by state/central Governments,high level of corruption,lack of transparency in governance, extremely poor accounting practices and disclosure norms are some of the other major irritants.

c) The projects have to be bankable and users must have not only willingness but also ability to pay for usage of the infrasructure.

Merely relying on Government guarantees and subsidies are not adequate measures.

d) The appraisal of such projects needs to be done very carefully to ensure that income generated during the entire life time of the project is adequate to take care of the interests of all stake-holders—banks,consortiums,private sector, public sector etc.

e) They are very time-consuming projects and may take anywhere from 10 to 20 years for completion and as such normally banks are quite hesitant to finance such projects involving long term funding since if repayment of loans to banks doesn’t come in time,there can be serious mismatch problems and consequently it may lead to unmanageable NPAs.

f) Environmental and other such clearances and NOCs from concerned departments take a very long time to arrive and this can have a telling effect on the project imlementation schedules.

g) Getting possession of land,paying compensations to land owners, re-settling the displaced / to be displaced population of the area, are also other problem-areas which can lead to several issues leading to questioning the basic feasibility / viability of the projects if delayed beyond reasonable time.

Hence the Government,while clearing the way for booster dose for backing the infrastructure sector,needs to do a critical analysis of all such major problems to avoid the projects becoming a drain on the economy by turning into proverbial white elephants.

- J S BROCA

NEW DELHI

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Here is what FE finally published in its “Letters To The Editor” column of FE on 28th April 2010:

Letters to the editor

The Financial Express
Posted: Wednesday, Apr 28, 2010 at 2038 hrs IST
Updated: Wednesday, Apr 28, 2010 at 2038 hrs IST

Apropos of the edit ‘Boost to infra’ (FE, April 22), I would like to make a point that there are several problems related to infrastructure projects. The demand for investment is huge but there has been a lack of interest on the part of the private sector in general; weak tariff regulation, dishonouring of concessional commitments made by governments, high level of corruption, lack of transparency, poor accounting practices and disclosure norms are also some of the major irritants. The projects have to be bankable and the users must have both the willingness and the ability to pay for using infrastructure.

JS Broca,

New Delhi

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Readers will observe that the abridged version of my letter published by FE has left out many important and relevant points under the garb of “space constraints” !!

That’s an example of Freedom Of Expression !! (?)

Category: Comments to print media, Current Affairs | One Comment

Recruitment Humour Author: Jatinder Pal Singh Broca Mar 22

Recruitment Humour

HRD

How many HR staff does it take to change a lightbulb?

Let us forget the recent recessionary trends in the industry in apna desh

While teaching some MBA students, I met a few who are specializing in HRD !

I asked them a simple question : How many HR staff does it take to change a lightbulb?

I received some interesting answers :

One to change the light bulb.
The second to assess the risk of the light bulb changing process.
A third to ensure the light bulb changing process adheres to the internal compliance regime for health and safety during light bulb changes.
A fourth to ensure that the internal purchase order procedures have been adhered with for light bulb change orders.
A fifth to audit the supply of the light bulb following the internal purchase order procedure.
A sixth to report back to the compliance and risk functions that the supply and audit divisions had complied with the light bulb change risk and compliance procedures.
A seventh to monitor that the light bulb was changed by a member of staff who was cleared by the concerned department to be authorised with light bulb changing management.
And an eighth being the most important………they are responsible for costing the light bulb changing process and being creative enough to incorporate the pricing of the eight people into their customers’ monthly billing statement without their customer noticing.

LOONY PLACEMENT POLICIES….??

How to recruit the right person for the job?

Here is what is termed as Bricks Recruitment Policy :

Put about 100 bricks in some particular order in a closed room with an open window.

Then send 2 or 3 candidates in the room and close the door.

Leave them alone and come back after 6 hours and then analyze the situation.

If they are counting the bricks. Put them in the Accounts Department.

If they are recounting them. Put them in Auditing.

If they are arranging the bricks in some strange order. Put them in Planning.

If they are throwing the bricks at each other. Put them in Operations.

If they are sleeping. Put them in Security.

If they have broken the bricks into pieces. Put them in Information Technology.

If they are sitting idle. Put them in Human Resources.

If they say they have tried different combinations, yet not a brick has been moved. Put them in Sales.

If they have already left for the day. Put them in Marketing.

If they have messed up the whole place with the bricks. Put them in Engineering.

If they are staring out of the window. Put them on Strategic Planning.

And then last but not least.

If they are talking to each other and not a single brick has been moved.

Congratulate them and put them in Top Management.

WHOM TO LAY OFF OR NOT…?

RECRUITMENT OF PILOTS

The chief of staff of the US Air Force decided that he would personally intervene in a recruiting crisis affecting all of our armed services. He directed a nearby Air Force base be opened, and that all eligible young men and women be invited.

As he and his staff were standing near a brand new Jet Fighter, a pair of twin brothers who looked like they had just stepped off a Marine Corps recruiting poster walked up to them. The chief of staff stuck out his hand and introduced himself.

He looked at the first young man and asked, “Son, what skills can you bring to the Air Force?”

The young man looks at him and says, “I’m a pilot!”

The general gets all excited, turns to his aide and says, “Get him in today, all the paper work done, everything, do it!”

The aide hustles the young man off. The general looks at the second young man and asked, “What skills to you bring to the Air Force?”

The young man says, “I chop wood!”

“Son,” the general replies, “we don’t need wood choppers in the Air Force, what do you know how to do?”

“I chop wood!”

“Young man,” huffs the general, “you are not listening to me, we don’t need wood choppers; this is the 21st century!”

“Well,” the young man says, “you hired my brother!”

“Of course we did,” says the general, “he’s a pilot!”

The young man rolls his eyes and says, “So what! I have to chop it before he can pile it!”

I hope you enjoyed reading as much as I enjoyed posting these funnies ! Keep Smiling !

Category: Current Affairs, Humour, People, Social Commentry | Leave a Comment

Reliance icon…. Author: Jatinder Pal Singh Broca Dec 29

December 28th happened to be Dhirubhai Ambani’s birthday anniversary and papers and TV were full of ads and rememberances.My only comment sent to some newspapers and displayed on Yahoo’s Gujarati page on 28th is as under :

There can never be any other better industrial icon than the great Dhirubhai Ambani who defined indian business acumen and showed to the entire world how an ordinary man can rise to pinnacles of glory through sheer hardwork,determination and vision.

Alas ! The present infighting between his two heirs over some issues leaves a bad taste in the mouth and speaks of petty designs to malign each other through the long drawn court battle.

They must sit together and sort out their differences,if need be, with the guidance of their mother, so that the Reliance name does not get tarnished any more and the brothers can carry forward the grand legacy left by their illustrious father.

Let us pray that they come to their senses and mend their ways and remain united !!

J.S.BROCA

New Delhi

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Tobin Tax–my letter in F.E. Author: Jatinder Pal Singh Broca Nov 27

Following article appeared in F.E.(23rd Nov.2009

Tobin tax is only for textbooks

Ila Patnaik

Saturday, Nov 21, 2009 (Financial Express 23rd Nov 2009)

Finance minister Pranab Mukherjee has laid to rest speculations about India imposing capital controls in the face of rising capital inflows. In a recent statement, he clearly said that while the government would monitor the inflows, India is not planning to impose restrictions on capital inflows in the near future.
The first question that should be asked before a meaningful discussion on imposing restrictions, is about the magnitude of capital flows to India today. The latest balance of payments data is available for the quarter April-June 2009. Net capital inflows in the quarter were $6.7 billion. This figure is a fraction of the inflows in late 2007 and early 2008 when they reached highs of more than $30 billion per quarter. When we compare foreign inflows today to the two quarters following the financial meltdown, when they were negative, they appear large. But when seen in historical perspective, inflows are, in fact, quite moderate.
Further, if we look at the components of capital flows in April-June 2009, the largest component was foreign direct investment, at $9.4 billion. This was followed by FII investment at $8.2 billion. The usually worrisome factor, loans, have not bounced back. As a consequence, we saw negative numbers for some categories with net loans outflow of $3.3 billion and net banking capital outflow of another $3.3 billion.
In the past, an inflow of capital has been a cause of concern for RBI. One of the main reasons for this was that RBI was trying to prevent rupee appreciation. When the rupee was touching Rs 40 per dollar, there was pressure from exporters to prevent further appreciation. Today RBI’s concerns are quite different. The central bank is faced with the difficult task of trying to boost growth and keep inflationary expectations under control. Were it to raise interest rates, growth could suffer. Were it to lower them, inflationary expectations could flare.
Under such circumstances, rupee appreciation offers an easier path to control inflation. The rupee today, at above 46, still has a long way to go before it becomes a serious lobbying point. Exporter lobbies are not going to be heard particularly seriously at least until it reaches Rs 40 per dollar. Had capital continued flowing out, as it did in the previous couple of quarters, or as it does for loans and banking capital, and had foreign investment not returned, there would have been further rupee depreciation that would have raised inflation rates. RBI might then have been selling dollars in the foreign exchange market to prevent rupee depreciation and rising prices. This would have resulted in further problems such as a contraction of liquidity.

The return of foreign investment is the best solution to the policy dilemma facing RBI and the government. Not only does it encourage a stronger rupee, it brings in funds for investment. In a credit constrained economy where domestic banks are reluctant to lend, where foreign loans have dried up, where the non-banking financial sector has seen one of its worst crises, foreign investment is welcome, and as the finance minister said, much-needed by India.
What could be the other concerns because of which there might have been reasons to restrict capital inflows? One concern that is sometimes cited as a good reason to restrict controls is to reduce buoyancy in the stock market. On this count it is difficult to imagine that the government would, at present, be keen to prick the bubble, even if, like RBI, it believes that there is a bubble.

The stock market is one of the few places where the financial sector is signalling optimism (bank credit has still not picked up). If at this stage the government were to step in with measures such as a tax on foreign portfolio investment, as Brazil has done, it is likely to have an adverse impact on the stock market. In addition to the impact this will have on business sentiment, on a more pragmatic note, this would be bad timing, as the government is planning to raise resources by selling shares of public sector companies to lower its fiscal deficit.

Even if all the above reasons for not imposing restrictions are overruled, such as in the event of the exporter lobby becoming overwhelmingly strong, and the government does decide to impose restrictions on capital inflows, it has been seen in the past that capital controls have not been very effective. They appear to be effective in the short run and in terms of the specific category of capital inflows on which they are imposed, but they are not effective in controlling the total amount of money coming in.

We have seen that in the case of the ban on participatory notes (PNs), which, of course, stopped money coming into India under the head of PNs, but did not bring down net capital inflows or even total foreign investment into India. There are multiple ways of bringing in money and other than creating distortions in the market; there is little that further capital controls can achieve today. Imposing controls that will make a serious dent on net capital inflows or will bring the number below the last quarter’s figure of $6.7 billion, is neither feasible nor desirable.

—The author is professor, NIPFP
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I had sent my views on the above article to the Editor,as under :

Dear Sir,
This refers to Ila Patnaik’s article titled :” Tobin Tax is only for text books” in FE of 23rd November 2009.
As rightly advocated by her,this tax,whose name comes from James Tobin, a Nobel laureate economist at Yale University,needs to be kept on hold at the moment,so that FDI continues to flow into the country.
FDI is the need of the hour and imposing such a tax will give wrong signals to the investors.Of course,a token tax on speculative transactions could be thought of with a view to discourage volatile short-term trading which can have a destabilizing effect on our currency.
The inflows can be used by us for funding worthy projects for alleviating human sufferings,by providing the large poor populace with cheaper housing,cheaper modes of conveyance,cheaper food and other basic items,and of course for creating a better unpolluted environment for a healthy living.
Other areas where poilitical willingness and consensus is necessary are : efforts to reduce the ever widening gap between the haves and havenots,generating more job opportunities for the vast rural unemployed populace, “safety nets” for the very old,infirm, elderly and senior uncared for citizens,sustainable development in various areas,fighting growing spectre of global warming and climatic changes and last but not the least, poverty and hunger.
Many local issues and problems like disaster management in times of floods and draughts, health programmes for the rural masses,water and sanitary systems etc also need to be solved and can be solved if the inflows are wisely and judiciously used.

J S BROCA
NEW DELHI
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Here is something extra about Tobin Tax :
TOBIN TAX PRINCIPLES

James Tobin

Act to introduce a world-wide solidarity tax: “The Tobin Tax”

Definition:
The Tobin Tax is a tax on currency speculation, once per transaction. The idea and name comes from James Tobin, a Nobel laureate economist at Yale University. The currency market is now over one trillion dollars daily, and the proposed tiny percentage tax (suggestions range from .1% to .5%) would be on speculative transactions only. The purpose is to discourage volatile short-term trading and its destabilizing effect on country currencies, restoring national macroeconomic controls over currency fluctuations. Billions in revenue would be generated, as much as $300 billion to $1 trillion yearly. Part of the revenue would go to an international fund, another part to national budgets.
Features:
The Tobin Tax is a proposed transaction tax on currency speculation. The concept comes from James Tobin, a Nobel laureate economist at Yale University. Here is how it would work: Currency speculators trade at the rate of over one trillion dollars each day. Speculative transactions would be taxed at a tiny percent of volume (.1%-.5%), once per transaction. Non-speculative transactions would be exempt, about 10-15% of the daily volume. The tax would discourage overnight or short-term currency trades, the most volatile, while leaving longer-term investments barely effected. Dangerous currency volatility would thus be reduced, and national macroeconomic autonomy restored. Billions in revenue, potentially as much as $300 – $600 billion per year, could be generated, according to economic studies. Parts of the revenue would go to international trust funds, other parts to national budgets. Both parts could be used to fund worthy projects.

LIST OF PRINCIPLES

Multilateral Cooperation to Tax Currency Speculators

The financial crisis in Asia and elsewhere is adding to human suffering which must be alleviated. When currency is devalued, the purchasing power of citizens plummets, food and other basic items become too expensive, the environment is less protected, and jobs are lost. Further, this crisis exacerbates existing problems, such as the widening gap between rich and poor, the strain on the global environment, and high rates of unemployment.

One of the causes of the financial crisis is the large volume of currency speculation that now occurs on a global basis. The foreign currency exchange has grown recently to over a trillion dollars daily, much larger than all the stock exchanges of the world. This market is so large and volatile that government central banks can no longer adequately protect the currency of their own nations.

The existing institutions that regulate national and international monetary systems have inadequate and sometimes even destructive policies to deal with the crisis. For example, the austerity programs of the International Monetary Fund increase the level of suffering for those with the least “safety nets,” while doing little to prevent destructive volatility. Reform of these institutions is an essential part of any effective solution to the crisis.

Reforms are needed in many aspects, but should include mechanisms to reduce the volume of destabilizing capital flows, through a transaction tax on currency speculation. Commonly but not necessarily called the “Tobin Tax,” after the Nobel economist who originated the concept, this tax would deter short-term or overnight trades, and thus shrink the volume of daily currency trading from its present trillion dollar daily level. Such a shrinkage would restore each nation¹s ability to control its own currency, as well as generate revenue.

To effectively reduce volume, the tax percentage must be large enough to make overnight speculation unprofitable. Proposals range from .1% to .5% per transaction. Longer-term investments occur less often, so would not be adversely affected by this small tax, and the overall remaining volume would be enough to create sizable revenue.

Adoption by the major currency nations of the Tobin Tax mechanism would accomplish the volume-shrinking goal, so the adoption need not be universal to be effective.

Collection and enforcement of the Tobin Tax are considered to be economically and institutionally feasible, and concerns regarding tax avoidance could be dealt with through adoption of regulatory mechanisms.

Since the revenue could be quite large, over one hundred billion by some estimates, baseline criteria for allocation to meet basic needs should be established. Basic human needs and basic environmental needs must be met first, through existing international agreements such as those addressing environmentally sustainable development, climate change, and hunger.

The international portion of the revenue should be set aside in a series of earmarked trust funds for basic needs that are cooperatively administered in an open and democratic fashion. Administering agencies should cooperate with local civil society to provide actual services for basic needs, such as disaster aid and food distribution, small-scale agriculture and reforestation, health clinics and disease prevention, local water systems and pollution control mechanisms.

Such administration should occur within the framework of producing local jobs, while ensuring adequate environmental safeguards, and protection of the rights of workers and other citizens.

Political will is the key to successful adoption, and grassroots support is essential to educate decisionmakers regarding this opportunity.

Frequently Asked Questions About the Tobin Tax

Is it economically feasible? There is a healthy debate going on among economists, but within that debate, most economists find it a credible proposal which must be studied and dealt with in great detail.

Is it politically feasible? That will depend on citizens, grassroots organizations, political parties, parliamentarians and congresspeople, and heads of state around the world. The Canadian Parliament has recently become the first to pass a Motion about the Tobin Tax.

What would happen to the revenue? This is where local citizens and grassroots organizations come into the picture. It is essential that guidelines be established and priorities be set, so that this will not be yet another “pork barrel”. We should be demanding international criteria such as earmarking funds for poverty and the environment. And we should be asking our elected representatives to look seriously at this opportunity to reverse global environmental devastation and the disaster of poverty.

The following abridged version of my letter has been published in FE of 27th Nov 2009.:

Letters to the editor

The Financial Express

Friday, Nov 27, 2009

Apropos of the article ‘Tobin tax is only for textbooks’ (FE, Nov 23), FDI is the need of the hour and imposing such a tax will give wrong signals to the investors. Though, a token tax on speculative transactions could be thought of with a view to discouraging volatile short-term trading.

JS Broca, New Delhi

Category: Comments to print media, Current Affairs | 2 Comments

my views in Financial Express…. Author: Jatinder Pal Singh Broca Oct 18

Following news item was published in the Financial Express of 11th Oct 2009 :

‘FDI norms in retail sector should be relaxed’

Posted: Sunday, Oct 11, 2009 at 1457 hrs IST

New Delhi: The Government needs to relax norms on foreign direct investment in retail to facilitate fresh infusion of funds and also promote competition in the sector, which has been hit by the economic slowdown, real estate consultant CB Richard Ellis has said.

“The existing FDI rules are a constraint. There is need to open up the sector a bit more as it will facilitate fresh infusion of funds and also promote competition,” CB Richard Ellis (CBRE) Chairman and MD (South Asia) Anshuman Magazine said.

Currently, 100 per cent FDI is allowed in wholesale cash-and-carry business, while in single-brand retailing 51 per cent FDI is allowed but none in multi-brand retailing.

The Parliamentary Committee on Commerce had earlier this year submitted a report opposing further opening up of the retail sector for FDI.

However, a report by the Indian Council of Research in International Economic Relation (ICRIER) in 2008, had mooted liberal FDI norms in the sector saying the sector would grow to USD 590 billion by 2011-12, of which organised retail would have a share of 16 per cent.

Sharing ICRIER’s views, Magazine said: “(Curently) the share of organised retail is still very small in the overall market and has scope for growth.”
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I had posted my comments on the above piece and the same are displayed on FE’s website under the above article :

» FDI IN RETAIL :

Posted by J S Broca on 2009-10-16 .

As per media reports a further upsurge is anticipated in the retail sector since Government has opened up 51% FDI in single brand retail outlets.However, before the Government initiates the second phase of reforms, it should very cautiously explore the avenues for multi-brand segment. Entry of multinationals to India in retail sector must be allowed gradually alongwith suitable safeguards like social security norms for the local kirana stores or else it would lead to destruction of traditional retail sector.Government should tread the path very carefully keeping in view the existing social framework of India and it should ensure that the entry of global retail giants does not displace the existing employment in the retail business.Blindly opening the flood gates for more FDI could have disastrous results!!Further,experts are of the view that local markets deinitely have an edge over the retail investors in India as they have unique advantages like understanding local needs and extending additional services like home delivery etc.MNCs perhaps would not be in a position to offer such services.Hence before taking the final plunge Government should have an open debate with the leaders of Indian retail stores/sector so that ther survival is not threatened.Lets hope wise counsel will prevail.

- J.S.BROCA

NEW DELHI.

Category: Comments to print media, Current Affairs | 3 Comments

Another letter in Business Standard Author: Jatinder Pal Singh Broca Jun 20

The following news item was published in Business Standard of 18th June 2009:

Sebi allows concept of anchor investor

BS Reporter / Mumbai June 18, 2009, 18:27 IST

Market regulator the Securities and Exchange Board of India (Sebi) today allowed the concept of anchor investor (AI) in every initial public offering (IPO), who can invest up to 30 per cent of the institutional quota. An AI would have to be a qualified institutional buyer and invest a minimum of Rs 10 crore. It also has to bring in 25 per cent of the margin on application and another 75 per cent within two days of the closure. The lock-in period for an AI will be 30 days, said C B Bhave, chairman, Sebi today.The board has also approved amendments regarding disclosure norms for rights issues. Rights issues are those which entitle existing shareholders to buy newly issued shares at a discount. The board was also expected to consider amendments regarding the regulator’s structure that will give it powers of a civil court.Sebi also relaxed disclosure norms in rights offers by reducing the amount of documentation required. IPOs must be listed on at least one national exchange.Also, no listed company can issue shares with superior voting rights. There can also be no preferential issues with superior voting rights. This will avoid the possible misuse by the persons in control to the detriment of public shareholders.Sebi has said that there will be no entry load for the schemes, existing or new, of a mutual fund. The upfront commission to distributors shall be paid by the investor to the distributor directly. Distributors, on their part, will have to declare the commissions that they are getting from the investors.

Among other moves, the market regular has cut the fess by 50 per cent on both debt and equity deals. In case of equities, the fees will now be Rs 10 per crore of turnover (earlier Rs 20 per crore). In debt, the revised rate would be Rs 2.5 per crore of turnover (earlier Rs 5).

My comments on above news item were published in BS as under :

jsbroca June 19,2009, 6:30 IST

Dear Sir, Earlier we have heard of an “Angel Investor” ie one affluent individual who provides capital for a business start up in exchange for convertible debt or ownership equity.Now we hear of this new term “Anchor Investor” who will be a buyer who can subscribe upto 30% of institutional investors quota in an IPO.I believe that once an anchor investor invests a large chunk of money into the company,it will send strong signals of the capability,capacity and character of the company to the investing community.Further,abolishing entry load in MFs is also a timely step in the right direction.My only comment regarding the concept of Anchor Investor is :Can an “insider” manage to become an anchor investor ? If yes what could be the consequences ? Lets test the waters for a while and see how the concept works in reality and then form an opinion about continuing with it or otherwise. Kudos to SEBI for this step !!

- J S BROCA

New Delhi

Category: Comments to print media, Current Affairs | Leave a Comment

more ironies…..!! Author: Jatinder Pal Singh Broca Mar 28

more ironies !

irony 1 :

orchestra conductor’s

angry wife,

strikes a chord–

runs after him

with his baton !!

irony 2:

a traffic policeman

comes home completely sozzled.

his wife directs him–

first to the toilet,

then to the bedroom !!

irony 3 :

master chef at a hotel

for 20 years,

craves for home made food.

rushes home after a busy weekend.

his wife serves him with

previous week’s leftovers !!

irony 4:

owner of a company,

with a cutting edge technology,

cuts edges by laying off

100 workers

due to slow down !!

irony 5:

my ageing boss,

registers for a

“memory enhancement training programme”

by paying rupees 1000/-.

but forgets to attend it !!

irony 6:

he lays down the

foundation stone for his

factory for manufacturing

scientific instruments,

as per the ‘muhurat’

advised by his ‘pandit’ !!

irony 7:

electrician’s wife,

“short-circuits” his plans

to have a dinner date

with his ‘current’ ‘high voltage’

girlfriend !!

irony 8:

doctor’s wife–

nurses a grudge

against him

for his affair

with a nurse !!

irony 9 :

painter’s wife

paints the town ‘red’

(while he paints)

with the paint shop’s

delivery man !!

(he comes to supply paints )

irony 10:

an absent minded coffin-maker,

asks his wife to

lie down in a coffin under construction,

to check if it would be

comfortable for a

5 feet 5 inches body !!

Category: Current Affairs, Humour | 10 Comments

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