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GenNext Innovation Hub: Helping startups accelerate growth

Written By Unknown on Minggu, 29 Maret 2015 | 23.55

Startups are the flavour of the season. Both the Modi government and corporate India are putting their time and money behind nurturing innovative entrepreneurial ventures. To encourage disruptive tech startups Reliance Industries in partnership with Microsoft Ventures has setup the GenNext Innovation Hub, startup accelerator.

Startups are the flavour of the season. Both the Modi government and corporate India are putting their time and money behind nurturing innovative entrepreneurial ventures. To encourage disruptive tech startups Reliance Industries in partnership with Microsoft Ventures has setup the GenNext Innovation Hub, startup accelerator.

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Real Estate TV: Themed lifestyles now come from developers

Theme based projects are the buzz-word these days. Developers of housing societies today are competing with each other to lure customers with theme based projects. Each theme promises a unique experience, but are they actually practical and a desirable option or is it just a mere marketing gimmick?

Theme based projects are the buzz-word these days. Developers of housing societies today are competing with each other to lure customers with theme based projects. Each theme promises a unique experience, but are they actually practical and a desirable option or is it just a mere marketing gimmick?

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Multiples PE to invest at faster pace over next 2-yrs: CEO

Talking about the investment cycle in India, Multiples PE is basically a sector agnostic fund and looks at opportunities in each and every sector, says managing director and chief financial officer, Prakash Nene.

Multiples Alternate Asset Management Private Limited (Multiples) is an investment advisory firm that manages more than USD 400 million of Private Equity Funds. Multiples believes there are three ingredients to successful investing in India – careful selection based on conviction in the entrepreneur and opportunity; finding a solution beyond just providing capital; and mutual selection between the entrepreneur and the fund.

Multiples PE is now coming out with a second fund which is a 10-year fund with commitment amount of USD 650 million to be invested in 5-year time frame. However, they would be aggressively investing in the first two years on back of hopes that the Indian economy is now turning around, says Nene.

We are quite positive about the changes which are being made on the economic front. There are many incremental changes which are taking place and that is very heartening," adds Nene.

Althought the fund is sectors agnostic, spaces banking financial insurance (BFSI), e-commerce, healthcare will continue to be most attractive sectors, says Nene.

Below is the transcript of Prakash Nene's interview with CNBC-TV18's Kritika Saxena.

Q: Multiples PE since 2010 till date has been a roaring success if you compare it to the other domestic funds. You have raised USD 300 million funds which have been deployed already. How has the growth been given the fact that investing climate has been slightly slow ever since you setup. How have you been able to retain the investment pace and get the kind of success that you have gotten already?

A: We started in 2010 and the fund is slight bigger than what you thought because the dollar has depreciated otherwise we started with USD 400 million commitment. In terms of pace of investment we have been doing investment on a steady basis every year. We have a very strong investment team and lot of us came from another private equity venture and everybody is very experienced. So, we know the game and after all with all this whatever you do ultimately there has to be some external factors also which lead to success. So, we have to be very careful about where do you invest. In fact when you say our pace investment has been good, to begin with our pace of investment was very slow. We were very measured, our first investment took about a year to make.

Thereafter we really gathered pace because the team has to come together. Once the team came together that is how we started going forward at a faster pace.

Q: In your first fund what were your focus areas in terms of the average ticket size that you are looking at and the sectoral focus?

A: We are sector agnostic fund. We look at opportunity in each and every sector. In terms of verticals we look at certain percentage – 10-15 percent for early stage companies and rest of the companies are later stage companies. Our bias is towards later stage companies because our ticket size will be larger than early stage companies. So, USD 30 million would be our ticket size in the first fund. Obviously in the second fund it will be larger than that.

Q: Let us talk about your second fund; USD 500 million is the amount that you are looking at raising. What is the process and by when will you start deploying that? The fund amount is larger than what your other peer, which have seen average of USD 150-300 million, so what really according to you would be the focus areas and do you feel that now that this is a larger fund you would have a larger investment power to invest over the next couple of years?

A: First of all USD 500 million would be the main fund. We also have another vehicle. So, our total amount available for commitment will be USD 650 million. So, we would be deploying USD 650 million which is the target of this fund. We would be deploying that in just a matter of time now, we already have lot of commitments from our core investors. They are all coming back with larger tickets, so we have a number of documents already with us. We are just waiting to do a formal close.

Q: Typically, USD 650 million, roughly across how many year do you see that spanning out or rather the majority investment, would it be a 5 or 10 year timeframe?

A: Technically, the fund is a 10-year fund but what we call as commitment period, the commitment period would be about 5 years. So, 5 year is the timeframe where most of the investment will be made. However thereafter as well once you invest in a company there is a follow-on investment. The companies keep needing money from time to time and it is not that after 5 years company will not require any money. So, you set aside some amount 10-15 percent for follow-on investments beyond 5 years.

For the first 5 years normally we invest at a steady pace. It is not that you have to just divide by 5 and every year you invest USD 120 million. Our bias would be more towards the early years. So, the first couple of years we perhaps would be investing at a faster pace than the earlier year because we are quite positive that the economy is now turning around.

Q: Since 2010 till 2014 things were fairly difficult but the new government came in and we have seen things turn on ground. We have been talking about how the ease of doing business is now one of the top priorities for the government and how there is a pickup in the reform cycle. Do you feel that foreign investors are now looking at India differently and more positively in 2015 than they did in the last two years?

A: Absolutely. I would not say the last two years, I would say year before 2014, the pace of investment all of us know was very slow and things were pretty gloomy. However last year has been a decent year I would say. In the private equity sector I think about 400-450 deals have happened and the capital deployed is about USD 11 billion, which is a sizeable sum which was deployed. Exits have also improved now. Last year we had about USD 4-5 billion of exits and I think that pace will continue.

We are quite positive about the changes which are being made on the economic front. There are not too many what they call big bang changes, lot of people expect that suddenly things will be different and that doesn't happen but I would say there are many incremental changes which are taking place and that is very heartening. We believe that the government's policies are moving in the right direction. However once you change a policy there is some time lag once the economic activity picks up. So, on the ground the economic activity especially in manufacturing sector is yet to pickup, it is slowly picking up but certain other sectors things have started moving faster. So, we are looking very positively, the next two years that is the reason I said that perhaps the pace of investment which we are going to make in the next couple of years will be faster.

Q: Let us talk about taxation in that case; in the Budget this time around the government has created a big positive for the PE industry by allowing tax pass throughs. How significant is that for PE players and for Multiples PE?

A: I would say that pass through is one of the things which the domestic industry was looking forward to and which has now been granted. It is definitely positive for the industry. However what happens is that what you do at one place, you do something else in another place. What has been introduced in this Budget is something called Place of Effective Management (P.O.E.M). In the speech the Finance Minister has said that they are encouraging Indian fund managers like us to really manage foreign money without going abroad. Many of our colleagues have moved abroad simply from that angle.

Place of effective management is considered if you are based in India and if you are managing money in Mauritius or in other jurisdictions and those funds are called resident in India. If those funds are resident in India then they are not eligible for what is called treaty benefits. So, that is one clause – P.O.E.M has come.

Government has created what they call safe harbour rules. Safe harbour rules mean certain sectors of the economy and certain fund managers would be excluded. However what I find that most of those changes which have been made they are for FIIs – foreign institutional investors. Government has not looked very carefully as to what are the requirements of a fund manager who is not an FII but using FDI money.

FII is a regulated concept under Sebi but most of the funds especially private equity funds are not of that type. We typically will have 5-25 investors and not hundreds of investors. So, when you say that no single investor can have more than 10 percent in a company and all of us have an anchor investor which will be more than 10 percent. So, in that situation we will be excluded then you say 5 investors put together cannot own more than 10 percent and you cannot do a buyout.

Even in our first fund we own a company which is completely owned by us – 100 percent and buyout is a very important concept for a private equity. When a policy framework is made this is something which looks like inadvertently it has not been taken into account and I am quite hopeful that before the Budget is finally approved I think there will be some changes on this.


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Here's an exclusive chat with FCB's Nigel Jones

Storyboard caught up with FCB's Global Chief Strategy Officer, Nigel Jones to understand how the explosion of digital, especially, social media has changed planning the growing importance of collaboration between creative and planning and why defining the brand purpose has become the need of the hour.

Storyboard caught up with FCB's Global Chief Strategy Officer, Nigel Jones to understand how the explosion of digital, especially, social media has changed planning the growing importance of collaboration between creative and planning and why defining the brand purpose has become the need of the hour.

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Coal Block Auctions: Winning Bid Rejected!

Show Timings:

Friday: 10.30 pm, Saturday: 11.30 am

Sunday: 9:30am & 11.00pm

Published on Sat, Mar 28,2015 | 15:53, Updated at Sat, Mar 28 at 15:59Source : CNBC-TV18 |   Watch Video :

Can a winning bidder lose the auction? The recent coal block auctions threw up an interesting twist when the government rejected the winning bids of Jindal Power and Balco. The news broke on twitter when Coal Secretary Anil Swarup said winning bids for 8 blocks were re-examined and only 5 passed muster. The government rejected Balco's winning bid for Gare Palma IV/1 and Jindal Power's winning bids for Gare Palma IV/2 & 3 and Tara. Coal minister Piyush Goyal says the bids were rejected because they were 'outliers'?!?

Can a winning bid, that has cleared technical eligibility criteria and is above the mandated price thresholds, be rejected for being too low? Can the government's 'outlier' argument sustain in court? To discuss this, Menaka Doshi is joined by well known Counsels, Vikram Nankani and Gopal Jain.

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The Death Of Section 66A

Published on Sat, Mar 28,2015 | 15:53, Updated at Sat, Mar 28 at 15:53Source : CNBC-TV18 |   Watch Video :

In a landmark judgment the Supreme Court this week stood up for free speech. A two member bench of Justice Chellameswar & Justice Nariman struck down Section 66A of the IT Act as unconstitutional and reassured the nation that the right to freedom of speech and expression is sacred and paramount. But as Payaswini Upadhyay reports this is only half the battle won!

It was the winter of 2008. On December 22nd, an otherwise slow moving Parliament showed great efficiency when it passed 8 Bills in less than 15 minutes. One of those bills amended the Information Technology Act, 2000 and thus Section 66A was born - with no discussion or debate on the reasons or consequences of the amendment. The genesis of Section 66A can be traced back to the 2007 Parliamentary Standing Committee, Chaired by MP and former Delhi Police Commissioner- Nikhil Kumar. The committee wanted the government to address the issue of spam emails. In response the Department of Information Technology drafted Section 66A. The Committee wasn't convinced but it let the Section be.

Gautam Bhatia
Lawyer- Civil Liberties  
Lecturer, National Law School of India University
"You'll see the purpose was to tackle very specific internet related offences like identity theft, phishing, spam, cyber bullying and so on. But of course, the drafting was so poor that over time it evolved into something totally different."

Darius Khambata
Senior Counsel
Former Advocate General, Maharashtra
"There is some indication that the terminology used in the Section is similar to the terminology used in the UK Post Office Act, 1953 and their Telecommunications Act, 2003. We have not used exactly the same language but I also presume there was some sort of a reaction of the parliament to cases of misuse of exploitation of electronic media to cause injury and I think this must have been a reaction to cases such as those."

The poorly drafted and hurriedly passed Section 66A prescribes 3 years of imprisonment for a person who sends information that is grossly offensive and messages that are likely to cause annoyance, inconvenience, danger, obstruction, insult...etc via a computer or communication device.

A legal provision meant to deal with spam email became a menace against free speech. In the last few years 66A has been used to silence tweets, Facebook likes, cartoons and comedy. It was used to arrest 2 girls criticizing the Bal Thackeray funeral procession for causing a traffic jam.

Palghar Girl Arrested in 2012 under Sec 66A for a Facebook comment on Mumbai's traffic situation after Bal Thackeray's demise.  
"Last week was really like a bad dream…it wasn't against someone; it was just a point of view. I think there should be freedom of speech as we live in 2012 and a democratic country."

It was used to arrest a businessman for tweeting against a Minister's son.

Ravi Srinivasan,  Businessman, Puducherry arrested under Sec 66A for a tweet against P Chidambaram's son
"Certainly I don't think I need to be arrested for tweeting. I have not used any foul language; nor have I abused anybody or made comment that is anti-national."
 
Soon after the arrest of the Palghar girls, 21 year old Delhi law student Shreya Singhal filed a petition in the Supreme Court arguing that Section 66A violates freedom of speech guaranteed by Article 19 in the Constitution.. After almost 3 years, the Supreme Court agreed with Singhal and 8 others who fought the battle with her.

Shreya Singhal, Petitioner
"They have upheld the rights of the citizens today because internet is far reaching and so many people use it that it is very important for us to protect this right today"

Renu Srinivasan- Palghar Girl Arrested For Facebook Comment
"I am very happy...we have got justice after 2 years. Our post was not abusive. It should not have led to an arrest."

The apex court held that expressions such as "grossly offensive" or "menacing" used in Sec 66A are so vague that there is no manageable standard against which an offence can be measured. Emphasizing on the chilling effect this could have on free speech, the SC held that Section 66A "arbitrarily, excessively and disproportionately invades the right of free speech and upsets the balance between such right and the reasonable restrictions that may be imposed on such right."

Darius Khambata
Senior Counsel
Former Advocate General, Maharashtra
"The judgment of the SC in Shreya Singhal is perhaps one of the most important judgments our Supreme Court has given in the recent times. It's important, firstly, for the freedom of speech that it advocates but the Supreme Court has consistently upheld Art 19(1)(a) and used it to strike down laws that impinge upon freedom of speech. To my mind, it's really important because it upholds the right of the citizen to know and it upholds the right of the individual to put out his information or his freedom of expression on the net – a facility not available few years ago- usually freedom of speech was thought of in terms of the media or a more public expression like a public meeting but now every individual citizen has the right to go on the net and express himself and herself freely."

It's been a week of celebrations for those who braved arrests and those who fought in court for our freedom of speech. But before you uncork the bubbly remember this. The Supreme Court has paved the way for a new 66A. It has also upheld Section 79 – thus allowing intermediaries such as Internet Service Providers and websites to take down content. And this battle does not extend to several Indian Penal Code provisions that do exactly the same as 66A.

In the Shreya Singhal case, one of the arguments by the petitioners was that a new medium like the internet did not need new laws, as laws to moderate freedom of speech already existed. The Supreme Court disagreed – paving the way for a new Section 66A. But in drafting it the Government will have to heed this judgment and the distinction it makes between advocacy and incitement. It says only advocacy which can lead to imminent public disorder can be restricted under Article 19(2) of the Constitution.

Gautam Bhatia
Lawyer- Civil Liberties  
Lecturer, National Law School of India University
"In a case called Rangrajan, the court said that the relationship between speech and disorder must be like a spark and a powder keg. And in a different case, the court said that there must be imminent incitement to lawless action. So, in this case, the ocurt endorses the second viewpoint and it says that advocacy of subversive ideas in itself cannot be a ground for punishment and restriction. Only when it rises to the level of incitement can it be so punished and in doing that, the court ensures that mere ideas, thoughts cannot be punished. There most be a close proximity between your speech and the evil that the government wants to curtail."

Sidharth Luthra
Senior Advocate, SC
Former Additional Solicitor General of India
"The idea of the Supreme Court was to draw a distinction between what can be protected by the exceptions in Article 19 (2) and what can't and what should not. And that has been done specially in the context of internet, which as a medium, has the widest reach and it was important for the Supreme Court to lay down this distinction. I am hopeful the government, when and if, it chooses to frame a new legislation will keep these principles in mind which are very salutary guiding principles."

The Shreya Singhal petition also challenged Section 79 of the IT Act. This section exempts intermediaries like websites and internet service providers from any liability if they take down information used to commit unlawful acts. That meant any complaint could prompt an intermediary to take down information. The Supreme Court has read down the Section to say that intermediaries will now be expected to take down information only if a court or government order demands it.

Darius Khambata
Senior Counsel
Former Advocate General, Maharashtra
"I think the restrictions imposed by Section 79, as read down, are reasonable. A court order obviously has to be followed. But even government orders are important because there are areas of national security, there are areas of incitement to an offence, there are areas of communal or religious incitement where the government must and should intervene swiftly- you can't wait for a court order. Yes; that can be misused as everything can be but you have recourse to courts and I would encourage any citizen who feels that a government order is misused to go to court and to prevent action under Section 79."

So the 'annoying' 66A will be re-written and the 'inconvenient' Section 79 has been read down. But what the Information Technology Act can't do, the Indian Penal Code can. So watch those tweets and Facebook likes, cartoons and roasts – or you could very well be back in jail!

Section 153A of the Indian Penal Code prohibits spoken or written words that can promote enmity between different groups based on religion, language etc. It was applied alongwith 66A to arrest the Palghar girls. Standup comedy group AIB was booked under Sec 292 of the IPC that prohibits selling, distributing, circulating and publicly exhibiting obscene content. Section 298 was used to file an FIR against film director Ram Gopal Varma after he tweeted against Dera Sacha Sauda's leader Gurmeet Ram Rahim Singh.

Sidharth Luthra
Senior Advocate, SC
Former Additional Solicitor General of India
"So far as these provisions which have been held constitutionally valid – they are still on the stature book; they are still capable of being used and in some cases, they are still being used to prosecute citizens even today and in the context of electronic communications, electronic record and content on the internet. So that position has not really changed except that those provisions, unlike Sec 66A, are a lot more specific – some have been upheld by the SC. Therefore the likelihood of an arrest, the likelihood of a prosecution exists under those provisions even today if, of course, the act is found to be offending."

Darius Khambata
Senior Counsel
Former Advocate General, Maharashtra
"I think this judgment has to be viewed in a broader context. You have to view it as a judgment that upholds civil liberties as opposed to the tyranny of the majority. And I think that principle will affect a number of provisions- I would hope including the curative petition that has been filed on the judgment under Sec 377 of the IPC- and several other matters because the heart of our Constitution is protection of individual and civil liberties and rights against the will and tyranny of the majority and that's why this judgment is so important."

In a thin skinned country, full of holy cows, including those of Azam Khan – this judgment reminds the State – that it may disapprove of what we say but it ought to defend to the death our right to say it.

In Mumbai, Payaswini Upadhyay


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Storyboard: Parle Agro re-launches Frooti

Parle Agro has re-launched its flagship brand Frooti. The 30 year old iconic mango drink has a new packaging, logo and of course marketing strategy. The aim is to widen Frooti's consumer base, increase market share by 10-15 percent and clock a 50 percent growth.

Parle Agro has re-launched its flagship brand Frooti. The 30 year old iconic mango drink has a new packaging, logo and of course marketing strategy. The aim is to widen Frooti's consumer base, increase market share by 10-15 percent and clock a 50 percent growth.

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Take a look at Dalmia Bharat Smart City Contest

To catch up with rapid urbanisation the government of India has allocated Rs 6000 crore towards Smart Cities project. Joining this national movement is Ashoka University which has conducted the Dalmia Bharat Smart City Contest in collaboration with NASA Research Park based Singularity University.

To catch up with rapid urbanisation the government of India has allocated Rs 6000 crore towards Smart Cities project. Joining this national movement is Ashoka University which has conducted the Dalmia Bharat Smart City Contest in collaboration with NASA Research Park based Singularity University. The idea behind this contest was to help identify innovative business pitched that can help India build a 100 smart cities over the next three to five years.

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Here's how Klay is helping new moms get back to work

It is not easy for new mothers to go back to work for various reasons and one of them is the challenge of finding a good day care center and that is what pushed Priya Krishnan to startup Klay an acronym for Kids Learning and You, a preparatory school that provides day care services to working parents.

It is not easy for new mothers to go back to work for various reasons and one of them is the challenge of finding a good day care center and that is what pushed Priya Krishnan to startup four years ago. Bangalore based Priya Krishnan setup Klay an acronym for Kids Learning and You, a preparatory school that provides day care services to working parents.

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The big event : NSE funancial national finale

NSE's Funancial Quest, Season 4, this is the national finale. Three outstanding teams battled hard in the semi-finals to qualify as the winners of each of them and here in the national finals they will battle again and this time it is for the title of a national champion.

NSE's Funancial Quest, Season 4, this is the national finale. Three outstanding teams battled hard in the semi-finals to qualify as the winners of each of them and here in the national finals they will battle again and this time it is for the title of a national champion. Each of these teams has had a victory at their city level, semi-finals and one victory is all that stands in their way towards being crowned national champion.

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