by admin | May 25, 2021 | Commodities, Commodities News, Commodity Market, Investing, Mutual Fund
New Delhi : The Securities and Exchange Board of India (SEBI) on Friday allowed mutual funds (MFs) and portfolio managers to invest in commodity derivatives to strengthen the market offerings and attract more players.
“The Board deliberated and approved the proposal contained in the memorandum to enable the participation by mutual funds and portfolio managers in exchange traded commodity derivatives in India subject to certain safeguards,” SEBI said after its board meeting here.
“Further, Category III alternative investment funds, which are already permitted to participate in commodity derivatives, have now been permitted to deal with goods received in delivery against physical settlement of such contracts, if any,” the regulator added.
Currently, the commodity markets are dominated by retail level traders and a few corporate hedgers and speculators. The entry of mutual funds and portfolio managers will attract more hedgers to the market and lead to its overall development.
Market players said the SEBI move could offer structured and attractive products to deepen the commodity derivatives market. It would also lead to more participation from the funds.
Institutional participants like mutual funds and portfolio managers will add long-term liquidity to the markets, said the member of a commodity exchange.
The participants in the commodity derivatives market comprise retail and wholesale commodity traders and a few corporate clients and punters across asset classes.
The SEBI also allowed Category III alternative investment funds to trade. Foreign companies with exposure to Indian commodities not having presence in India were also allowed to trade recently.
—IANS
by admin | May 25, 2021 | Business, Emerging Businesses, Employment, Investing
Shimla : Himachal Pradesh on Monday signed memorandum of understanding (MoU) with 159 companies that will attract an investment of over Rs 17,000 crore and provide employment opportunities to 40,000 people, the government said.
It said three MoUs were signed with PSUs (public sector undertakings) for an investment of Rs 1,115 crore; 88 for the Department of Industries for Rs 5,243 crore; 36 for the Department of Tourism and Civil Aviation for Rs 2,810 crore; 17 for the Department of Urban Development for Rs 4,332 crore; and five for the Department of Transport for an investment of Rs 2,780 crore, among others.
Speaking on the occasion, Chief Minister Jai Ram Thakur said the state was coming up with new policies for industry, tourism, warehouse and logistics, information technology, e-vehicles, films and Ayush to provide more attractive incentives to the entrepreneurs.
Presiding over the MoU signing ceremony here under the Himachal Pradesh Global Investors Meet, he said efforts would be made to ensure online clearances under Section 118 to ensure fast clearances of the projects.
Section 118 of the Himachal Pradesh Tenancy and Land Reforms Act of 1972 makes permission mandatory for non-agriculturists in the state to buy property other than what is offered by the state housing board.
Thakur said a holistic approach had been adopted by the government to attract investments.
He said the state offers great scope for investment in sectors like tourism, education, healthcare and food processing.
The Chief Minister said the new industrial policy aims to establish state-of-the-art infrastructure, promote the manufacturing sector, enhance inclusivity, foster innovation and create employment opportunities across the sectors.
He said the entrepreneurs willing to set up new industry or undertaking expansion would be entitled to 30 per cent Capital Investment Subsidy subject to a maximum of Rs 5 crore on plant and machinery under the Industrial Development Scheme of the Government of India.
He said the state government would be holding the Global Investors Meet in June in Dharamsala.
Industries Minister Bikram Singh Thakur said the state was committed to make sustainable tourism one of the prime engines of growth by establishing it as a leading global sustainable tourism destination.
—IANS
by admin | May 25, 2021 | Investing, Opinions, Property
Representational Image
By Taponeel Mukherjee,
The availability and usability of land to many investment sectors are essential, and yet these are areas that do not get the attention they deserve while making investment decisions and formulating policies. In the Indian context, this issue assumes greater importance, given the problems related to land that businesses and investors have faced in the past. Regardless, some fundamental questions must be answered regarding usability and relevant “land availability”.
The first question is whether land that is required for creating the appropriate infrastructure or projects is available in the requisite size? It is axiomatic that land sites must be available for such infrastructure to be built upon.
The second question is whether land that is available is relevant for the project under consideration? For instance, in the case of data centre infrastructure, there is the need for land parcels that are contiguous to each other, to create a large tract of land that can be relevant for the project.
The third question is whether the land that is available can be used to create an ecosystem that will help deliver both financial and economic value from the assets in question? In the case of the data centre infrastructure, this would mean the land has access to the uninterrupted power or has alternate arrangements for power procurement.
It is crucial to identify land that meets all these three required conditions for India to fulfil its ambition as a hub of global and domestic investments. A careful analysis of the underlying conditions regarding land availability and usability, as explained above, will help both investors and the government accelerate the investment process.
Essential learnings from past experience have a lot to teach us on how to improve and expedite the investment process in India. For instance, India’s mixed experience with Special Economic Zones (SEZs) versus the much more successful Chinese SEZ experience is in no small extent due to choices regarding land site selection.
In the study “The Developmental Effects of Special Economic Zones: Evidence from India’s States”, Meir Alkon points towards the fact that site selection for some India SEZs was driven by reasons other than business demand. The absence of business demand, and, therefore, financial viability of the location of the Indian SEZ was a significant factor in the issues that the SEZs faced.
In the context of SEZs specifically, and more generally regarding land acquisition, one must realise the value that “optimal site selection” creates. The optimal site selection provides investment returns to the investors, and additionally, it also allows for more productive use of land. On the contrary, when site selection is poor, not only do investments suffer, but the land is rendered useless since it cannot be reverted to its original use, such as farming. Land for prospective India SEZ use that becomes of no value due to incomplete or non-functional projects is a case in point.
Land selection is also an issue that is relevant for the residential real estate segment, a segment that has seen a protracted downturn in India over the last few years. The basic questions around the availability, usability and ecosystem linkage apply as much to residential real estate as to any other sector.
One issue that has been a reason for the sector’s woes has been site selection in projects that fundamentally lack the ecosystem linkages that would create a residential real estate asset of value to the user at the correct price. Real estate sites with low access to transportation from clusters of employment, probably one of the significant drivers of real estate value in urban cities globally, has led to incomplete projects, constrained balance sheets of real estate companies and the consequent non-performing assets of banks.
Ironically, the demand for urban housing is growing even as the residential real estate supply glut builds up: it is indeed a classic case of market failure driven by many factors with poor “land choices” being a significant contributor.
Regardless of whether you are an equity sponsor, project developer, lender or the government, factoring in the fundamentals of the “micro-market” of land and the accompanying requirements are essential for success. Gaps in investment ideas and policies of the past provide us with both a template of pitfalls to avoid and the significance of prudent decision-making frameworks on land choices as we move ahead.
(The views expressed are personal. Taponeel Mukherjee heads Development Tracks, an infrastructure advisory firm. He is reachable at taponeel.mukherjee@development-tracks.com or @Taponeel on Twitter)
—IANS
by admin | May 25, 2021 | Branding, Corporate Jobs, Employment, Investing, Marketing Basics, Markets, Online Marketing, Private Jobs, Technology, Venture Capital
New Delhi : Singapore-based social media platform BIGO Technology on Monday announced an investment of over $100 million to expand its business in India in the next three years, creating nearly 1,000 jobs.
As part of the investment, the internet company will start a regional centre by the end of this year in the country that will create employment opportunities for more than 1,000 tech professionals.
According to Jason Hu, Chief Technology Officer, BIGO Technology, as India is the second-largest market for smartphones amid growing internet infrastructure and has a huge young population, the company has taken the decision.
“India will act as a complementary centre to Singapore’s Research and Development Centre. This step is the first-of-its-kind for BIGO, and a testament to the growing need for overseas centres as our user base grows,” Hu said in a statement.
With over 40 patents in VoIP/video-related technology and over 60 patents under the process of application, BIGO Technology is one of the major companies globally in the field of app development and publishing of apps.
The company, which has built a strong team of over 100 Artificial Intelligence (AI) experts and engineers, recently received series D funding of $272 million.
In addition to the India Centre, BIGO would open two more regional research centres – one in the US and another one in MENA-Europe region by the end of this year.
The company’s live-streaming app BIGO LIVE currently has a registered user base of 200 million globally.
Another short video app from the company called “LIKE” has hit 20 million daily active users around the globe.
—IANS
by admin | May 25, 2021 | Corporate, Corporate Governance, Investing, News, Politics
The delegation, led by NITI Aayog CEO Amitabh Kant, comprised of leading Indian CEOs
New Delhi : Invest India Grid was launched in Saudi Arabia during the visit of Niti Aayog delegation with 40 opportunities of investment, trade and business also identified during the visit.
The delegation, led by NITI Aayog CEO Amitabh Kant, comprised of leading Indian CEOs who took part in discussions with the Saudi Centre for International Strategic Partnerships (SCISP). Discussions were also held with senior representatives from 12 Saudi ministries in Riyadh during the two-day visit which concluded on Sunday.
The delegation’s visit assumes significance as Saudi Arabia Crown Prince Mohammed bin Salman bin Abdulaziz Al Saud is scheduled to visit India on February 19 and 20.
An official release said India’s Ambassador to Saudi Arabia, Ahmad Javed accompanied the team of Indian CEOs.
Officials from ministries of tourism, Housing and Urban Affairs, Electronics and Information Technology and commerce took part in the deliberations.
The NITI Aayog-SCISP workshop held wide ranging discussions on the possible opportunities of joint cooperation.
“During the workshop, Invest India Grid was launched in Saudi Arabia. Invest India is setting up a dedicated team for facilitating Saudi investments in India. NITI Aayog and SCISP agreed to provide continuing momentum to the India-Saudi Arabia Strategic Partnership,” the release said.
Kant also called on Saudi Minister of Finance Mohammed Al-Jadaan and discussed ways to strengthen bilateral ties.
“Six working groups have identified 40 investment, trade and business opportunities with vast potential for expansion,” the release said.
India-Saudi Arabia bilateral trade during April to November 2018 reached $23.24 billion.
—IANS
