Bank Finance to NBFCs having exposure to gold

Bank Finance to NBFCs having predominant exposure to gold lending has been cut from 10% of the bank's capital funds to 7.5%. NBFCs who have more than 50% of their exposure in gold loans will now be able to avail bank finance only upto the above limits. However, where the NBFCs' additional exposure is to the infrastructure sector, then bank funds can go upto 12.5% of their capital funds. Banks are also mandated to have internal sub-limits for on-lending to NBFCs having predominant exposure to gold loans. A copy of the RBI circular to this effect can be found here

Fathers and Sons

This is a brilliant book dealing with the love of fathers towards their sons. Arcady and Bazarov return to Arcady's father's house in rural hinterland of mid-19th century. They are idealistic and have developed a nihilistic approach in life where Arcady is in awe of Bazarov. Arcady's father Nicholas and Paul are old timers who have modernised by freeing serfs and Nicholas loves his son but is upset when both Arcady and Bazarov decide to leave their home to go to a neighbour where they visit Anna Sergeyevna who is a widow where surprisingly Bazarov falls madly in love with Anna who is older to him and Arcady has a crush on Anna but slowly moves towards Katya, Anna's sister. Falling in love was like an anathema to Bazarov due to his nihilistic leanings, so both of them come back to Arcady's house. In between Bazarov visits his old parents Vassily Ivanich and Arina Vlassyevna his father and mother. His parents are old and they are deliriously excited to have Bazarov back and shower him with blessings and love which Bazarov likes in the beginning but starts detesting later on, again his nihilistic leanings throwing him against his own parents. The interplay between Bazarov and his parents and their emotions which Bazarov so cruelly crushes is where "Fathers and Sons" achieves greatness. Turgenev has written beautifully and movingly and it would be difficult not to get emotionally involved in this father-son interlude. Love of a father towards his offspring is greater than any idealism that this world produces in mid-19th century or even now in the early 21st century and this is what makes Turgenev's book timeless. "He has abandoned us, he has abandoned us" quivered Vassily Ivanich when Bazarov leaves his home  - this was an absolutely gut wrenching part of the book. After Anna rejects his love due to her strong independence, Bazarov returns to Arcady's house and falls in love again with Nicholas's young mistress whom he kisses which is seen by Paul who detests Bazarov for his arrogance and his anti-authority views. Bazarov is forced to leave Arcady's house due to a gun duel with Paul. What happens to Bazarov, Arcady and their old parents - this book is highly recommended - a Russian classic - my rating 5/5

Duration of advertisements in television channels

TRAI has issued the Standards of Quality of Service (Duration of Advertisement in Television Channels) Regulations 2012 wherein the duration of advertisement in television channels is sought to be curbed to only 12 minutes in a clock hour. Any shortfall in advertisement in any one hour cannot be allowed to be carried over to the next hour. Advertisement during live broadcast of any sporting action can be carried out only during the break during the sporting action. The minimum time gap between two advertisement breaks should not be less than 15 minutes and in case of movies it shall not be less than 30 minutes. Part screen and drop down advertisements are not permitted. It shall only be full screen advertisements. The audio level of the advertisements should not be more than of the regular programs.

This is a major move by the regulator to bring in quality standards in television channels. Many a time we have seen endless advertisements during a program and especially the regional channels have too many advertisements and in fact their program duration is less than the advertisement duration. So this is a welcome move.

We have also seen during the last world cup that advertisements were cropping even before the last ball of an over has been completed and most of the times the advertisements have been intrusive. So having advertisements only during the break in a sporting action is most welcome, though i have seen advertisements being carried out in Formula I grand prix coverage which normally runs into more than 1 hours' duration. Now with this directive such advertisements cannot be carried out.

The minimum break time between advertisements is most welcome in case of movies because watching a good movie gets spoiled in case there are too many advertisement breaks.

Scroll advertisements are mostly seen in the news channels when they have multiple scrolls across the tv screen and all the scrolls are moving fast so it becomes very difficult to read what is news and what is advertising and the actual screen space is totally eroded by the scroll advertisements.

The moot point which the channels have raised is whether TRAI has the mandate to regulate matters concerning broadcasting which according to them is best left to the Information & Broadcasting Ministry. But i think the TRAI does have the powers to regulate matters concerning broadcasting industry.

Another issue which they have raised is that of over regulation and revenue impact. According to the channels, such kind of regulations could spell the death knell of many channels because they are surviving only on advertising support which if restricted to 12 minutes per hour could get severely impacted. The channels say that competition is the best market force because if any channel carries too much advertisements then the viewers would naturally gravitate to other channels. This argument by the channels is very weak because if all the channels over advertise then the viewers naturally have no choice of channels.

Laying down minimum quality of service standard for the broadcasting industry is most welcome.

The salient features of the regulation can be found here

The text of the regulation can be accessed from the TRAI site viz. www.trai.gov.in

Cost Audit Report in XBRL mode

MCA has mandated vide its circular no. 8/2012 dated 10th May 2012 that all cost audit reports should henceforth filed in XBRL mode including any cost audit reports for the previous years which were not filed. They have therefore given time for the Cost Audit reports to be filed after 30th June 2012 by which time the taxonomy together with the Form I and form A in XBRL format would be ready for submission. a copy of the MCA circular can be found here

ECB Policy - Utilisation for Rupee Expenditure

RBI has outlined some procedural issues relating to uilisation of ECB proceeds for rupee expenditure. They have specified that the borrower is required to stipulate at the time of obtaining the Loan Registration Number itself the bifurcation of the ECB proceeds for foreign currency expenditure and rupee expenditure in form 83. The onus of  complying with this requirement of the RBI is cast on the borrower whereas the the responsibility of remitting the funds meant for rupee expenditure into India is that of the Authorised Bank. The copy of RBI circular can be found here

Bear Island

Just finished reading “Bear Island” by Alistair Maclean my favourite author.  Dr. Marlowe is a doctor on board a fishing trawler Morning Rose which is headed towards Bear Island in Barents Sea for some film shooting of which nobody knows what the script is about. Enroute, the film crew start getting murdered one after another in mysterious circumstances. The plot gets murkier when the crew lands on the inhospitable and alien Bear Island and the murders continue. Written in first person narrative, Maclean gradually lets the suspense out one after another taking the story to some connection in post war Europe. A gripping enthralling book, a typically pot boiler by Alistair Maclean. Rating 5/5 – Highly Recommended

Intra-Bank Deposit Accounts Portability

RBI has clarified (that is the right word, in this case) that in case of transfer of bank accounts from one branch of a bank to another branch of the same bank, there is no need to undergo full KYC at the new branch, because in view of the CORE banking successfully carried out by all the banks there is no need for fresh KYC and the new branch can access the KYC from the system. The account holder however will have to produce fresh address proof. This clarification was necessary because many banks notably ICICI was insisting on opening new accounts at the new branch in case of transfer of accounts intra banks which was obviously cumbersome for customers. To access copy of the RBI circular, please go here