The bulls took a bit of a breather today, as widespread profit-taking and concerns about Greek debt weighed on Wall Street…(Read More)
RBI bans M’puram, arm from taking public deposits
The lender, which provides funds with gold as collateral, has been directed not to even renew those deposits which mature, RBI said in a statement.
“The Reserve Bank has stated that acceptance of deposits either by Manappuram Finance or by Manappuram Agro Farms is punishable with imprisonment and has cautioned members of public that those who deposit money with Manappuram Finance or MAGRO do so at their own risk,” the RBI said in the statement.
Manappuram, which was a deposit-taking finance company, turned into a non-deposit taking one in March 2011. But it continued to take deposits from individuals and also in the farming company to boost its funding, although it has been raising funds through sale of bonds. The company raised 1,000 crore in January via bonds between 12-13% across maturities.
“Manappuram Agro Finance is not related to Manappuram Finance. But now, that we understand RBI is not happy with the Agro Farm accepting deposits, we have stopped it,” said VP Nandakumar, chairman, Manappuram Group.
“Mannapuram Finance has not accepted any public deposits after the declassification and Mannapuram Agro Farms is a proprietary concern. To my understanding, there is no law that bars a firm which is engaged in agriculture and allied activities from raising public deposits.”
The difference between deposit and non-deposit taking non-banking finance company is that deposit taking NBFCs have to comply with prudential norms and statutory liquidity ratio (SLR) where some amount of RBI recommended bonds have to be purchased, which are not applicable to non-deposit taking NBFCs.
The central bank tightened its regulations on deposit taking finance companies after scores of companies in the 90s went belly up leading to depositors losing hundreds of crores of rupees. It specified a number of measures, including capital and management of funds for those that take public deposits.
Companies lending against gold has been investors’ favourite for the last year or so as it is seen as the safest form of lending with continued rise of gold prices. Investors such as Merrill Lynch Capital Markets, Columbia Acorn Internatinal, Beaver Investment Holdings and Baring Private Equity own stake in the firm.
In 2010, private equity investor Sequoia Capital had exited from the company making a five-times return. The VC firm had invested $14 million in 2007 for 14%. It made $70 million on exit.
It has outstanding loans of 12,500 crore. The company has unclaimed deposits of 9 lakh which is lying with Punjab National Bank.
The size of the gold loan market in India was at 50,000 crore in 2010-11. The organised gold loan market has been growing at an average of 40% in the last eight years, according to an IMACS report. Gold has appreciated 31% in 2011 and 2.3% this year.
LAZ’s adjusted per-share profit couldn’t top expectations
With corporate earnings season well under way, Lazard Ltd. (LAZ – 27.50) took its turn in the earnings confessional this morning…(Read More)
ANR will reduce its overall production to 4 million tons per year
After the market closed on Friday, Alpha Natural Resources, Inc. (ANR – 23.19) announced plans to idle four mines in Kentucky and West Virginia, citing softer demand from its electric utility customers…(Read More)
Manappuram Finance can’t accept deposits: RBI
MUMBAI: Manappuram Finance Ltd , which provides loans using gold as collateral, is not allowed to accept or renew deposits from the public, the Reserve Bank of India said, noting the firm gave up its licence to take deposits in March 2011.
The RBI said on its website that Manappuram Finance had been accepting deposits from the public and had been issuing deposit receipts in the name of MAGRO, a sole proprietary concern of Shri V.P Nandakumar, who is Manappuram’s executive chairman.
Manappuram said the notice was the result of a technical error and that it had not accepted deposits since converting to a non-deposit-taking, non-banking financial company.
“There is some balance. While repaying that, they have found out some mistake, some technical error,” I. Unnikrishnan, the firm’s managing director, told Reuters.
The remaining balance of deposits is about 900,000 Indian rupees ($18,350), Unnikrishnan said.
PFC to raise Rs 40,000 crore in 2012-13
[unable to retrieve full-text content]State-run lender Power Finance Corporation aims to raise Rs 40,000 crore in 2012-13 and is scouting for a partner for its subsidiary PFC Consulting’s global foray.
Recent options activity suggests that some hedged players are going short
It was a triumphant week for stocks, as traders cheered a significant upside surprise in January’s nonfarm payrolls report…(Read More)
SKS Micro securitises Rs 243 cr of receivables
HYDERABAD: India’s only listed micro-lender SKS Microfinance today said that it has securitized Rs 243 crore of receivables from borrowers outside of Andhra Pradesh.
According to SKS, the transaction is rated A1+(SO) by rating company Care indicating a strong capacity for timely payment of short-term debt obligations.
The news gave a fillip to the stock of SKS and pushed it up nearly 10 per cent to the upper circuit at Rs 98.20 on Bombay Stock exchange today.
S Dilli Raj, chief financial officer SKS Microfinance said, “SKS delivered all its promises to the credit-granting community through the painful transition phase, post the AP MFI Act. Now, it is time to reap the fruits of consolidation.”
The rated pool comprises receivables from 3,22,312 woman borrowers from the weaker sections as defined by the Reserve Bank of India, the company said.
“The pool is well diversified with a single branch accounting for less than one per cent of the pool, with the average loan amount being Rs 11,131,” a company statement said.
Prior to this transaction, the company had completed six securitizations post the AP MFI Act. All the rated papers have shown robust collection efficiency of more than 98 per cent. Credit enhancement has not been utilised in any of these structures, it added.
International Human Rights Day
December 10th, 2008 will mark the 60th birthday of the United Nations Declaration Of Human Rights (DHR) and kick off a year long propaganda campaign pressing its agenda. The document has 30 articles which purport to catalog the rights that every human has. Most of those rights are what can be called positive rights, things that a person can demand someone provide for them. By contrast, negative rights are the ones that we, as Americans, are most familiar with. They include the rights to life, liberty and property. They say that nobody has a right to take the life, the liberty or the property of any individual without his consent.
The DHR is riddled with inconsistencies and inner conflicts. It begins by saying that all of the listed rights are inalienable. The normal view of “inalienable” means “cannot be alienated” by anyone, including government. The DHR ends with articles describing the circumstances where the stated inalienable rights can be alienated by the United Nations or member governments. Rights are given and rights are taken away. The term “inalienable” in the introduction is an outright fraud.
Many positive rights are granted under the DHR, such as the right to food, water, shelter, education and so forth. Negative rights, such as the right to own property without confiscation, are also granted. Whenever you grant positive and negative rights together, there is an insoluble problem. In order to provide anything to anybody, it must first be taken from someone else. In order to take it from someone else, their property rights must necessarily be violated. The donor has no rights in the confiscated property. Inalienable property rights are a fraud under the DHR.
Compulsory education under the Declaration is to be directed at socializing our children, making good subjects of international government and furthering the activities of the United Nations. The silly notion of educating our children to help them to be more productive and prosperous never occurs to the writers of the DHR. Education under DHR is a fraud.
Article 29 (1) says that “Everyone has duties to the community in which alone the free and full development of his personality is possible.” This manifests itself in calls for compulsory community service for all citizens. There is discussion of that very thing in America today. If a person is compelled to do service against his or her will by anyone, including politicians and bureaucrats, that is a form of slavery or involuntary servitude. It is in direct conflict with article 4 of the DHR: “No one shall be held in slavery or servitude…” Freedom doesn’t exist under DHR.
Article 30 ends the list. It says that “Nothing in the Declaration may be interpreted as implying for any State, group or person any right to engage in activity or to perform any act aimed at the destruction of any of the rights and freedoms set forth herein.” The net effect of that statement is that, if anyone tries to roll back government interference, to limit welfare, unemployment, social security or any other government program, they are guilty of humanitarian crimes under the Declaration. Their rights are not protected. They have no rights, under the DHR, to speak or write about the abolition of those programs, belong to organizations that promote their abolition or take part in rallies or hold seminars that speak out against them.
The bottom line is that the Declaration Of Human Rights is not a statement of inalienable rights, in any sense of the word. It is, rather, a comprehensive manifesto, aimed at promoting world socialism under the United Nations. The U.N. was founded on the idea that national sovereignty is an outdated notion and that an international government is needed to enforce peace and to provide for equitable distribution of the world’s wealth.
Article 22. “Everyone, as a member of society, has the right to social security and is entitled to realization, through national effort and international cooperation, and in accordance with the organization and resources of each state, of the economic, social and cultural rights indispensable for his dignity and the free development of his personality.” As Karl Marx, the father of communism, said, “From each according to his ability, to each according to his need.”
The DHR is the socialist manifesto. This December 10th and for the whole year, people interested in maintaining free societies need to counter the United Nations propaganda with information on the reality of the document and the world socialist agenda of the United Nations.
CTCT jumps 20% in today’s session on better-then-expected results
Shares of Constant Contact, Inc. (CTCT – 31.37) are soaring in today’s session, after the online marketing maven took its turn in the earnings booth last night…(Read More)