A F I N A N C I A L N E W S L E T T E R F R O M C U I M K E N G E R I A F I N A N C I A L N E W S L E T T E R F R O M C U I M K E N G E R I

DATE 5th SEPTEMBER 2011 ISSUE17

INDEX

ECONOMIC ROLLERS 2

RBI COLUMN 3

MERGERS AND ACQUISITIONS 5

CONTEMPLATORS 7

RING FENCING LIQUIDITY 7

WHO DRIVES THE MARKET 9

HOW TO MAINTAIN AND CREATE A BUDGET 10

FINANCE BUZZ 12

PHOTO FIND 13

FINANCE QUIZZ 14

CROSS WORD 15

CAMPUS POLL 16

VERIFY YOURSELF 18

INDEX

ECONOMIC ROLLERS 2

RBI COLUMN 3

MERGERS AND ACQUISITIONS 5

CONTEMPLATORS 7

RING FENCING LIQUIDITY 7

WHO DRIVES THE MARKET 9

HOW TO MAINTAIN AND CREATE A BUDGET 10

FINANCE BUZZ 12

PHOTO FIND 13

FINANCE QUIZZ 14

CROSS WORD 15

CAMPUS POLL 16

VERIFY YOURSELF 18

2

ECONOMIC ROLLERS

Repo Rate 8

Reverse Repo Rate 7

CRR 60

SLR 24

CBLO (as on 26nd August 2011) 780bps

Inflation

Inflation as on 20th August12

WPI 922

Forex Reserve (as on 26th August 2011) $319175 billion

IIP (for July 2011) +88

91 Days T bills 835 (as on 24st August 2011)

10 year G- Sec Yield (as on 26th August 2011) 830

Exports during July 2011 $29344 million

Imports during July 2011 $40426million

Source Finance Ministry Office of Economic Advisory HDFC Securities Reports

Ministry of Commerce

BY

MADHAV A

II MBA B

ldquoA big part of financial

freedom is having our heart and mind free

from worry about the what-ifs of

life ldquo

3

RBI Guidelines for Licensing of new Banks in the Private Sector

The Reserve Bank of India released the draft guidelines for ldquoLicensing of New Banks

in the Private Sectorrdquo after taking viewscomments from banks non-banking financial

institutions industrial houses other institutions and the public at large

Key features of the draft guidelines are

(i) Eligible promoters Entities groups in the private sector owned and controlled by

residents with diversified ownership sound credentials and integrity and having

successful track record of at least 10 years will be eligible to promote banks

Entities groups having significant (10 per cent or more) income or assets or both

from real estate construction and or broking activities individually or taken

together in the last three years will not be eligible

(ii) Corporate structure New banks will be set up only through a wholly owned Non

-Operative Holding Company (NOHC) to be registered with the Reserve Bank as a

non-banking finance company (NBFC) which will hold the bank as well as all the

other financial companies in the promoter group

(iii) Minimum capital requirement Minimum capital requirement will be 500 crore

Subject to this actual capital to be brought in will depend on the business plan

of the promoters NOHC shall hold minimum 40 per cent of the paid-up capital of

the bank for a period of five years from the date of licensing of the

bank Shareholding by NOHC in excess of 40 per cent shall be brought down to 20

per cent within 10 years and to 15 per cent within 12 years from the date of

licensing of the bank

(iv) Foreign shareholding The aggregate non-resident shareholding in the new bank

shall not exceed 49 per cent for the first 5 years after which it will be as per the

extant policy

(v) Corporate governance At least 50 per cent of the directors of the NOHC should be

independent directors The corporate structure should be such that it does not

Impede effective supervision of the bank and the NOHC on a consolidated basis by

the Reserve Bank

RBI COLUMN

3

RBI Guidelines for Licensing of new Banks in the Private Sector

The Reserve Bank of India released the draft guidelines for ldquoLicensing of New Banks

in the Private Sectorrdquo after taking viewscomments from banks non-banking financial

institutions industrial houses other institutions and the public at large

Key features of the draft guidelines are

(i) Eligible promoters Entities groups in the private sector owned and controlled by

residents with diversified ownership sound credentials and integrity and having

successful track record of at least 10 years will be eligible to promote banks

Entities groups having significant (10 per cent or more) income or assets or both

from real estate construction and or broking activities individually or taken

together in the last three years will not be eligible

(ii) Corporate structure New banks will be set up only through a wholly owned Non

-Operative Holding Company (NOHC) to be registered with the Reserve Bank as a

non-banking finance company (NBFC) which will hold the bank as well as all the

other financial companies in the promoter group

(iii) Minimum capital requirement Minimum capital requirement will be 500 crore

Subject to this actual capital to be brought in will depend on the business plan

of the promoters NOHC shall hold minimum 40 per cent of the paid-up capital of

the bank for a period of five years from the date of licensing of the

bank Shareholding by NOHC in excess of 40 per cent shall be brought down to 20

per cent within 10 years and to 15 per cent within 12 years from the date of

licensing of the bank

(iv) Foreign shareholding The aggregate non-resident shareholding in the new bank

shall not exceed 49 per cent for the first 5 years after which it will be as per the

extant policy

(v) Corporate governance At least 50 per cent of the directors of the NOHC should be

independent directors The corporate structure should be such that it does not

Impede effective supervision of the bank and the NOHC on a consolidated basis by

the Reserve Bank

RBI COLUMN

4

(vi) Business model Should be realistic and viable and should

address how the bank proposes to achieve financial inclusion

(vii) Other conditions

bull The exposure of bank to any entity in the promot-

er group shall not exceed 10 per cent and the

aggregate exposure to all the entities in the group

shall not exceed 20 per cent of the paid-up capital

and reserves of the bank

bull The bank shall get its shares listed on the stock

exchanges within two years of licensing

bull The bank shall open at least 25 per cent of its

branches in unbanked rural centres (population upto

9999 as per 2001 census)

Existing NBFCs if considered eligible may be

permitted to either promote a new bank or convert

themselves into banks

(viii) In respect of promoter groups having 40 per cent or more as-

sets income from non-financial business certain additional re-

quirements have been stipulated

BY

MADHAV A

II MBA B

ldquo A weak

currency is the

sign of a weak

economy and

a weak

economy leads

to a weak

nation ldquo

5

Mergers and acquisitions (MampA) are big part of the corporate finance world

and thatrsquos the reason why an attempt is being made to present the summary

amp few deals that happened in the month of August 2011

SOME OF THE DEALS DETAILS

GMR Energy to acquire 30 stake in PT Golden Energy Mines

Tbk for $550 million

GMR Energy Ltd or GEL the flagship company

for the GMR Grouprsquos energy investments with

sizeable interests in coal mines in South Africa

Indonesia and India entered into definitive

agreements to acquire a 30 equity stake in PT

Golden Energy Mines Tbk (GEMS) a Sinar Mas Group company in Indonesia

GEL will be paying cash consideration of $450-

$550 million for the transaction funded through a

combination of debt and internal accruals The ac-

quisition will be made through an offshore special purpose vehicle (SPV)

domiciled in Singapore

Fortis to buy 65 stake in Vietnam hospital chain for $64 mn

Fortis Healthcare International the Singapore-based holding company of

Indiarsquos billionaire Singh brothers is to buy a 65 stake in Vietnamrsquos Hoan

My Medical Corp for $64 million Fortis Healthcare International has been on

an acquisition spree since it was set up about a

year ago and now owns clinics and hospitals in

several Asian countries including Australia Hong

Kong and Singapore

MERGERS AND ACQUISITONS

6

Mphasis to buy Wyde Corporation

Computer software services company Mphasis Ltd agreed to buy

software developer Wyde Corp for an undisclosed sum This is

Mphasisrsquos second acquisition in the insurance space It acquired AIG

Software Systems captive centre in India in 2009 With the acquisi-

tion Mphasis is aiming to extend its insurance footprint in the

life and annuities segment and strengthen its existing capabil-

ity in the property and casualty segment

Sanofi unit to buy OTC biz of Universal Medicare for $109 mn

Indiarsquos Aventis Pharma a unit of French drug maker Sanofi is

close to buying the over-the-counter business of Universal

Medicare for about Rs 500 crore ($1095 million) A deal which covers about 30 brands sold by

unlisted India-based Universal Medicare is expected to be

signed and this would boost the French companyrsquos over-the-

counter business in India

HP to buy Autonomy spin off PCs

The rumour has it that Hewlett-Packard Co is close to a deal to buy

British software company Autonomy for $10 billion and concur-

rently plans to spin off its personal-computer business Sharehold-

ers of Autonomy which develops search software will receive

$4211 a share Cambridge-based Autonomy counts Procter amp Gamble Co among a long list of ma-

jor corporate customers that use its software to search and organize

unstructured data like emails

BY

FLAVIA TELLIS

II MBA D

7

RING FENCING LIQUIDITY

Following the global financial crisis in 2008 Banking industry has accepted that there

was inadequate liquidity management on the part of some banks which led to contagion

within banking groups and in the wider economy resulting in a liquidity squeeze Now when

the banks are in difficulties relating to liquidity management the regulators are increasingly

keen on the idea of Ring-Fencing Liquidity often referred to as subsidiarisation as well as

other aspects of a bankrsquos operations to ensure they deal with an entity in the event of a

future crisis

The regulators are looking at each institution in their jurisdiction much more intensively

Greater the impact the Financial Institution has on the local financial system the tighter is

the scrutiny by them The regulators include those of Hong Kong South Korea Singapore and

Taiwan

What does Ring Fencing mean

When a regulated public utility business financially separates itself from a parent company

that engages in non-regulated business This is done mainly to protect consumers of

essential services such as power water and basic telecommunications from financial

instability or bankruptcy in the parent company resulting from losses in their open market

activities Ring fencing also keeps customer information within the public utility business

private from the for-profit efforts of the parent companys other business

In such a scenario the banking groups have a few concerns as well The added cost of

subsidiarisation along with higher liquidity and capital buffers under Basel III is one such

issue Earlier large cross border banks used to get cost savings from having liquidity held

centrally and directing it to locations as needed Hence it is not easy for the industry to revert

to a different model where the branches in each jurisdiction will have to hold liquidity on a

standalone basis

CONTEMPLATORS

8

A bank branch is very much reliant on the head office and has greater operational flexibility If

the head office faces liquidity crunch the subsidiary is equally affected

However the argument in favor of the discussion is that ring-fencing will bring about local

liquidity as each market has its own currency It is definitely a good idea from regional

perspective Even though it provides greater assurance to the public about the robustness of

the bank there is no guarantee that the bank will not collapse The regulators feel that by

implementing the idea the subsidiaries can be self-sufficient even when the bank group is into

some difficulty

Inspite of such huge benefits the cost of this approach cannot be neglected Meeting the

individual liquidity requirement will be tougher and costlier than setting the liquidity

requirement centrally Funding costs in different currencies is again a big issue However the

main aim of the regulators is to inject credit into local economies

Large banks do not agree with the approach as their asset and liability management is more

centrally managed It can even reduce the efficiency of global capital exactly when its needed

Ring- Fencing the liquidity can even restrict the ability to move funds between economies

The main issue is to what extent the banks be ring-fenced without disrupting their normal

functions and profitability As against the BASEL III requirements to have group consolidated

risk management Ring-Fencing can lead to liquidity being trapped at branch or subsidiary

level

One aspect of Ring- Fencing is that is does not distinguish between the bank which manages its

liquidity well and the one which does not The approach will definitely raise the cost of the

industry however one solution here can be incentivizing the banks who are performing well in

liquidity management domain Incentives to improve liquidity and risk management will

motivate banks to outperform the basic requirements Greater control over the banks with

poor risk management and lesser over those who manage the liquidity and risk appropriately

will definitely proof to be a motivator for the industry

BY

AASTHA SHARMA

II MBA B

9

Who Drive the Market Technical Fundamental or Sentiment

Today there is lots of fluctuation in Global Economy and Stock Markets Why it happen

who drives the ups and downs in Global Stock Market Sometime people donrsquot understand the

exact reason behind it some people tell because of economic growth good fundamental of

companies technical reasons or may be because of sentiment

Fundamental Speaks about how strong the base and foundation of any organization When

we talk about fundamental let us take a example of Dow Jones Index the worldrsquos largest stock

exchange is trading at 14 PE ratio were as all the emerging markets are way ahead of Dow

The fundamental of Dow is very strong still it is moving in a narrow range The yearly return of

Dow Jones is less than a fixed deposit interest rate (798)

Many of the company like J P Morgan Citi Group Wal-Mart and GE have very strong

management and balance sheet but still they are not enough to drive the market of United

States We talk about Earnings per Share Price to earnings ratio Book value Market Value

ROE Good Cash Reserve less debt of company but they are not making any difference to the

fundamentals

Technical Used to forecast the direction of prices through past data current price and vol-

ume We talk about technical swings ups and downs because of the technical analysis but some

time it wonrsquot work After going down more than 80 technical cannot help to rebound the

markets more than 20-40 There are different technical indicators like RSI Moving Aver-

ages MACD Dow Theory but will they help market and or they are just of losing money We

can say that the market is oversold or trading above moving average so it will go up but it will

not happen with every stock or market or these are useful for a short term purpose

Sentiments Today most of the markets are driven by Sentiment of people What investor

believes about any particular countryrsquos economy they will reflect the same in their investment

pattern Sentiment plays an important role in stock market if the sentiment is negative across

the street the markets cannot move whether the Fundamental or Technical are favorable If we

look at the real estate sector of any market even though some companies are doing good

business but because of negative sentiment about the sector the share price are not moving

there is no buyer even though they are trading at 5or 6 PE ratio There is no reason for stock

market to down when RBI raises the key interest rate it does not affect the economy in one

day but investor will create negative and market fall

10

Nifty is not able to break the resistances strongly from past 8 months even though

there were good technical and fundamental indicators this all of because of Senti-

ment of people Today I think most of the market are driven by sentiment rather

than other think and may not be good of any economy and markets for long run

BY

RITESH KEJRIWAL

I MBA B

HOW TO MAINTAIN AND CREATE A BUDGET

Staying financially fit during an economic downturn is vital--especially for recent

college graduates or anyone else just entering the work world Here are some tips to create

and maintain a budget The first step to avoiding the troubles of financial debt is to create

and maintain a budget It is not as intimidating as it sounds donrsquot worry

First off create a list of all your monthly income and also a list of your monthly expenses

When determining income list all sources including alimony child support side jobs etc In

calculating expenses be sure to include housing food transportation utilities entertainment

etc To gain an accurate reflection of actual expenses sit down each night and write down

expenses just make sure to save receipts Determine if your income covers all of your expenses

If the answer is no then some expenses need to be reduced

Adjust expenses If it is a small discrepancy it may mean reducing some minor expenses

like entertainment or cell phone plan If the deficit is larger you may need to downsize your

vehicle or living arrangements If your income covers all of your expenses you still may want to

trim some of the excess fat off your spending habits This can free up extra money for things

such as vacations or college funds for your children Additionally consider if you need to add

new categories Some areas that are often overlooked are debt reduction emergency savings

funds and retirement savings An emergency fund ensures there is an adequate amount

available to cover unforeseen events (car emergency etc) should it arise This will eliminate the

need for using credit which can quickly damage your budget There are several advantages to

sticking to your budget Firstly most people have set financial goals that they would like to

reach in the future Sometimes it may be a trip a brand new car or a college education A budget

can help people save money to make these goals a reality Additionally many people are crushed

under heavy consumer debt

11

Without a disciplined pattern of spending it is virtually impossible to make much headway

in reducing debt A personal budget will provide the necessary framework to begin eliminating

these inflated account balances If executed properly a budget will allow a person to

simultaneously meet their expenses place money into savings and pay back outstanding debts

Therefore it is best interest to create and implement a budget

Cut Back on Spending

At first it may seem difficult to limit spending and stick to a budget however there are a

few practical changes that you can make every day that will cut your spending more than you

expect Firstly alter credit car behaviour Start to pay cash whenever possible This will help you

avoid making a purchase unless you actually have the money available If you decide to make a

credit card purchase be prepared to pay the balance off monthly This will save a lot of money

through avoiding interest charges If you already have a credit card balance then transfer to a

card with a low interest rate Also find a card that does not charge an annual fee Another tip is

to pack your lunch every day All of those lunch hours spent at restaurants will add up Bringing

your own lunch can save you several dollars every day which will add up over time

Start Saving So you are loaded down with bills to pay each month and are wondering how you

can begin a savings account for emergencies and other high-expense endeavors In other words

where can you find that extra cash to put away for later Firstly when configuring

your budge plan for your savings first You will grow richer each month if you begin to pay your-

self first Before paying any bills decide on a set amount that you will pay yourself first or maybe

five or ten percent or whatever you decide of your pay check Then deposit the amount into a

savings account before paying any bills When you do this at the beginning of the month your

entire pay check will not suddenly slip through your fingers Once a person makes a budget they

often fail to adjust it when necessary A budget is created using a set of expenses and income fig-

ures that are liable to change As these figures do change it is important that the budget changes

to reflect the adjustments There could be some major deficits if this is not done appropriate-

ly and promptly Of course nobody forgets about Christmas or Hanukkah

However many people do not consider budgeting for holidays when creating a budget

Therefore adequate funds have not been set aside for presents food parties etc are double or

triple what you would normally pay With a little planning you will be on your way to saving

more money than you ever thought possible

BY

MAYANK PRASSANNO

I MBA B

12

1) Aunt Millie A slang term for an uneducated or unsophisticated investor The term is considered a

derogatory remark in the financial sector often used to refer to poor investment choices

2) Acquisition Indigestion A slang term describing an acquisition or merger in which the

companies involved have trouble integrating with one another Acquisition indigestion may also

describe a situation in which the purchasing company has difficulty making the most of a

takeover

3) Angelina Jolie Stock Index An index made up of a selection of stocks from companies associated

with actress Angela Jolie

4) Bandwagon Effect A psychological phenomenon whereby people do something primarily

because other people are doing it regardless of their own beliefs which they may ignore or over-

ride The bandwagon effect has wide implications but is commonly seen in politics and consumer

behavior

5) Groupon A special type of coupon website that is offers group deals to a group of consumers

Groupons attempt to tap into the power of collective purchasing by offering a substantial discount

such as half off to a group of people if they will buy a particular product or service

6) In The Penalty Box When a companys stock price is in the doldrums and has yet to rebound

because of poor earnings government regulation or another reason

7) Index Hugger A managed mutual fund that tends to perform much like a benchmark index such

as the SampP 500 which gives it the reputation of being a closet index fund The majority of active-

ly managed funds are expected to outperform the so-called average performance produced by

passively managed index funds Also known as a closet tracker or pseudo tracker

BY

CHANDANA D

II MBA C

FINANCE BUZZ

13

PHOTO FIND The given below are the celebrities in the corporate world Find out

who they are

1) _______________________ 2) _____________________

3)_______________________ 4) _____________________

5) _____________________

14

1) Market regulator SEBI passed a consent order against which merchant bankers for fail-

ing to exercise due diligence while conducting its business

2) What is Indiarsquos rank in Global Peace Index 2011 (GPI 2011) out of 153 countries

3) Central Govt Increased interest rate for post office deposit what is current interest

rate

4) Private power producers moved Central Electricity Regulatory Commission (CERC)

against which company accusing it of going on a power purchase agreement (PPA)-

signing spree to escape regulatory oversight in selling its costlier power

5) What is introduced by centre on July an ambitious project will facilitate robust

information sharing among law enforcement agencies such as CBI RAW IB etc

6) According to planning commission Deputy Chairman Rangarajan report released in

July what is expected GDP for this year-end

7) World Investment Report 2011 was released by UNCTAD on 26 July 2011 According to

the report what is Indiarsquos position among the top 20 FDI recipients

8) The Central Department of Telecommunications (DoT) on 22 July 2011 approved

Rs 30000-crore National Optical Fibre Network (NOFN) for broadband connectivity to

2500 Panchayats in India How will be the project funded

9) The Union government on 9 August permitted a new category of QFIs to invest up to

what sum of money in equity and debt schemes of mutual funds (MFs)

10) Fixed exchange rate is also known as __________rate

11) Cabinet Committee on Economic Affairs (CCEA) on 5 August 2011 approved which

PSUrsquos proposal for revival of the Sindri unit of Fertiliser Corporation of India at an in-

vestment of nearly Rs 35000 crore

12) According to government data released on 8 August 2011 Foreign Direct Investment

into India grew by what per cent to 565 billion US dollar in June 2011

FINANCE QUIZ

By

SHILPI KUMARI

II MBA B

15

CROSS WORD

3 A member of a stock exchange who was lsquohammeredrsquo and expelled from the membership for being

unable to meet financial or contractual obligation

4 The behaviour of a company that chooses to focus only on high-end high-margin products even if

customers show an inclination towards value-oriented products

9 Who was the chairman of Union Carbide when Bhopal tragedy occurred on 3 December 1984

10 Goods that are perceived to be exclusive as long as prices remain high or increase

1 The bank which has joined the United Stock Exhange shareholder base by acquiring a 133 percent

stake 2 What term became popular after the newspaper report of Watergate Scandal in the year 1973 5 The state leading in the implementation of projects related to the Delhi-Mumbai Industrial Corridor 6 A bond denominated in Canadian dollars that is sold in Canada by foreign financial institutions and

companies 7 Temporary reduction in the selling price of an item to stimulate demand or to drive a competitor

out of the market 8 An increase in price and trading volume in a particular sector of the economy that occurs as a result

of a recent takeover which initiates a change in sentiment towards the sector

BY SKANDAN YN

II MBA A

Across

Down

16

Q1)

As per the survey

Out of 104 respondents 80 (769) have an opinion that other banks will follow the suit But

18 (173) disagree with the statement whereas 6 (57)people are not sure about it

Best Response

Following suit many PSU banks have come out with offers where they are offering low attrac-

tive fixed rates for the first 3-5 years (8-85) with rates reverting to the standard floating rate

after that period is over These kind of loans are popularly referred to as Teaser loans where

rate in the initial years is fixed as well as low Private players HDFC and ICICI have recently

joined the bandwagon They announced a similar teaser loan product early December 2009

Thus presenting clearly a good option for the consumers who want to stay away from tracking

home loan rates at least for a certain period of time

NISHKA CAMPUS POLL

17

Q2)

As per the survey-

Out of 104 respondents 10 (96) have an opinion that Anna is meddling with the parlia-

mentary system But 86 (827) say that he is fighting for our birthright ie democracy

whereas 10 (77) people are not sure about it

Best Response

The war against corruption led by Anna Hazare is giving Prime Minister Manmohan

Singh and his counsels sleepless nights Their retort is that Hazare wants to kill the Indian

democracy

BY

NEIZELM SOUZA

II MBA A

18

VERIFY YOURSELF

Photo Find

1Deven Sharma President of SampP (resigning on 12 th Sep)

2Nandan M Nilekani Chairman of UIDAI

3Subir Gokarn Deputy Governor of RBI

4Tim Cook CEO Apple Inc

5SD Shibulal CEO Infosys

ANSWERS FOR FINANCE QUIZZ

1 Edelweiss Capital

2 135

3 4

4 NTPC

5 NATGRID (NOTIONAL GRID)

6 82

7 14th

8 Universal Service Obligation [USO] Fund

9 $13 billion

10 Pegged exchange

11 SAIL

12 310

ldquoLiterature

was formerly

an art and

finance a

trade today it

is the reverserdquo

5

Mergers and acquisitions (MampA) are big part of the corporate finance world

and thatrsquos the reason why an attempt is being made to present the summary

amp few deals that happened in the month of August 2011

SOME OF THE DEALS DETAILS

GMR Energy to acquire 30 stake in PT Golden Energy Mines

Tbk for $550 million

GMR Energy Ltd or GEL the flagship company

for the GMR Grouprsquos energy investments with

sizeable interests in coal mines in South Africa

Indonesia and India entered into definitive

agreements to acquire a 30 equity stake in PT

Golden Energy Mines Tbk (GEMS) a Sinar Mas Group company in Indonesia

GEL will be paying cash consideration of $450-

$550 million for the transaction funded through a

combination of debt and internal accruals The ac-

quisition will be made through an offshore special purpose vehicle (SPV)

domiciled in Singapore

Fortis to buy 65 stake in Vietnam hospital chain for $64 mn

Fortis Healthcare International the Singapore-based holding company of

Indiarsquos billionaire Singh brothers is to buy a 65 stake in Vietnamrsquos Hoan

My Medical Corp for $64 million Fortis Healthcare International has been on

an acquisition spree since it was set up about a

year ago and now owns clinics and hospitals in

several Asian countries including Australia Hong

Kong and Singapore

MERGERS AND ACQUISITONS

6

Mphasis to buy Wyde Corporation

Computer software services company Mphasis Ltd agreed to buy

software developer Wyde Corp for an undisclosed sum This is

Mphasisrsquos second acquisition in the insurance space It acquired AIG

Software Systems captive centre in India in 2009 With the acquisi-

tion Mphasis is aiming to extend its insurance footprint in the

life and annuities segment and strengthen its existing capabil-

ity in the property and casualty segment

Sanofi unit to buy OTC biz of Universal Medicare for $109 mn

Indiarsquos Aventis Pharma a unit of French drug maker Sanofi is

close to buying the over-the-counter business of Universal

Medicare for about Rs 500 crore ($1095 million) A deal which covers about 30 brands sold by

unlisted India-based Universal Medicare is expected to be

signed and this would boost the French companyrsquos over-the-

counter business in India

HP to buy Autonomy spin off PCs

The rumour has it that Hewlett-Packard Co is close to a deal to buy

British software company Autonomy for $10 billion and concur-

rently plans to spin off its personal-computer business Sharehold-

ers of Autonomy which develops search software will receive

$4211 a share Cambridge-based Autonomy counts Procter amp Gamble Co among a long list of ma-

jor corporate customers that use its software to search and organize

unstructured data like emails

BY

FLAVIA TELLIS

II MBA D

7

RING FENCING LIQUIDITY

Following the global financial crisis in 2008 Banking industry has accepted that there

was inadequate liquidity management on the part of some banks which led to contagion

within banking groups and in the wider economy resulting in a liquidity squeeze Now when

the banks are in difficulties relating to liquidity management the regulators are increasingly

keen on the idea of Ring-Fencing Liquidity often referred to as subsidiarisation as well as

other aspects of a bankrsquos operations to ensure they deal with an entity in the event of a

future crisis

The regulators are looking at each institution in their jurisdiction much more intensively

Greater the impact the Financial Institution has on the local financial system the tighter is

the scrutiny by them The regulators include those of Hong Kong South Korea Singapore and

Taiwan

What does Ring Fencing mean

When a regulated public utility business financially separates itself from a parent company

that engages in non-regulated business This is done mainly to protect consumers of

essential services such as power water and basic telecommunications from financial

instability or bankruptcy in the parent company resulting from losses in their open market

activities Ring fencing also keeps customer information within the public utility business

private from the for-profit efforts of the parent companys other business

In such a scenario the banking groups have a few concerns as well The added cost of

subsidiarisation along with higher liquidity and capital buffers under Basel III is one such

issue Earlier large cross border banks used to get cost savings from having liquidity held

centrally and directing it to locations as needed Hence it is not easy for the industry to revert

to a different model where the branches in each jurisdiction will have to hold liquidity on a

standalone basis

CONTEMPLATORS

8

A bank branch is very much reliant on the head office and has greater operational flexibility If

the head office faces liquidity crunch the subsidiary is equally affected

However the argument in favor of the discussion is that ring-fencing will bring about local

liquidity as each market has its own currency It is definitely a good idea from regional

perspective Even though it provides greater assurance to the public about the robustness of

the bank there is no guarantee that the bank will not collapse The regulators feel that by

implementing the idea the subsidiaries can be self-sufficient even when the bank group is into

some difficulty

Inspite of such huge benefits the cost of this approach cannot be neglected Meeting the

individual liquidity requirement will be tougher and costlier than setting the liquidity

requirement centrally Funding costs in different currencies is again a big issue However the

main aim of the regulators is to inject credit into local economies

Large banks do not agree with the approach as their asset and liability management is more

centrally managed It can even reduce the efficiency of global capital exactly when its needed

Ring- Fencing the liquidity can even restrict the ability to move funds between economies

The main issue is to what extent the banks be ring-fenced without disrupting their normal

functions and profitability As against the BASEL III requirements to have group consolidated

risk management Ring-Fencing can lead to liquidity being trapped at branch or subsidiary

level

One aspect of Ring- Fencing is that is does not distinguish between the bank which manages its

liquidity well and the one which does not The approach will definitely raise the cost of the

industry however one solution here can be incentivizing the banks who are performing well in

liquidity management domain Incentives to improve liquidity and risk management will

motivate banks to outperform the basic requirements Greater control over the banks with

poor risk management and lesser over those who manage the liquidity and risk appropriately

will definitely proof to be a motivator for the industry

BY

AASTHA SHARMA

II MBA B

9

Who Drive the Market Technical Fundamental or Sentiment

Today there is lots of fluctuation in Global Economy and Stock Markets Why it happen

who drives the ups and downs in Global Stock Market Sometime people donrsquot understand the

exact reason behind it some people tell because of economic growth good fundamental of

companies technical reasons or may be because of sentiment

Fundamental Speaks about how strong the base and foundation of any organization When

we talk about fundamental let us take a example of Dow Jones Index the worldrsquos largest stock

exchange is trading at 14 PE ratio were as all the emerging markets are way ahead of Dow

The fundamental of Dow is very strong still it is moving in a narrow range The yearly return of

Dow Jones is less than a fixed deposit interest rate (798)

Many of the company like J P Morgan Citi Group Wal-Mart and GE have very strong

management and balance sheet but still they are not enough to drive the market of United

States We talk about Earnings per Share Price to earnings ratio Book value Market Value

ROE Good Cash Reserve less debt of company but they are not making any difference to the

fundamentals

Technical Used to forecast the direction of prices through past data current price and vol-

ume We talk about technical swings ups and downs because of the technical analysis but some

time it wonrsquot work After going down more than 80 technical cannot help to rebound the

markets more than 20-40 There are different technical indicators like RSI Moving Aver-

ages MACD Dow Theory but will they help market and or they are just of losing money We

can say that the market is oversold or trading above moving average so it will go up but it will

not happen with every stock or market or these are useful for a short term purpose

Sentiments Today most of the markets are driven by Sentiment of people What investor

believes about any particular countryrsquos economy they will reflect the same in their investment

pattern Sentiment plays an important role in stock market if the sentiment is negative across

the street the markets cannot move whether the Fundamental or Technical are favorable If we

look at the real estate sector of any market even though some companies are doing good

business but because of negative sentiment about the sector the share price are not moving

there is no buyer even though they are trading at 5or 6 PE ratio There is no reason for stock

market to down when RBI raises the key interest rate it does not affect the economy in one

day but investor will create negative and market fall

10

Nifty is not able to break the resistances strongly from past 8 months even though

there were good technical and fundamental indicators this all of because of Senti-

ment of people Today I think most of the market are driven by sentiment rather

than other think and may not be good of any economy and markets for long run

BY

RITESH KEJRIWAL

I MBA B

HOW TO MAINTAIN AND CREATE A BUDGET

Staying financially fit during an economic downturn is vital--especially for recent

college graduates or anyone else just entering the work world Here are some tips to create

and maintain a budget The first step to avoiding the troubles of financial debt is to create

and maintain a budget It is not as intimidating as it sounds donrsquot worry

First off create a list of all your monthly income and also a list of your monthly expenses

When determining income list all sources including alimony child support side jobs etc In

calculating expenses be sure to include housing food transportation utilities entertainment

etc To gain an accurate reflection of actual expenses sit down each night and write down

expenses just make sure to save receipts Determine if your income covers all of your expenses

If the answer is no then some expenses need to be reduced

Adjust expenses If it is a small discrepancy it may mean reducing some minor expenses

like entertainment or cell phone plan If the deficit is larger you may need to downsize your

vehicle or living arrangements If your income covers all of your expenses you still may want to

trim some of the excess fat off your spending habits This can free up extra money for things

such as vacations or college funds for your children Additionally consider if you need to add

new categories Some areas that are often overlooked are debt reduction emergency savings

funds and retirement savings An emergency fund ensures there is an adequate amount

available to cover unforeseen events (car emergency etc) should it arise This will eliminate the

need for using credit which can quickly damage your budget There are several advantages to

sticking to your budget Firstly most people have set financial goals that they would like to

reach in the future Sometimes it may be a trip a brand new car or a college education A budget

can help people save money to make these goals a reality Additionally many people are crushed

under heavy consumer debt

11

Without a disciplined pattern of spending it is virtually impossible to make much headway

in reducing debt A personal budget will provide the necessary framework to begin eliminating

these inflated account balances If executed properly a budget will allow a person to

simultaneously meet their expenses place money into savings and pay back outstanding debts

Therefore it is best interest to create and implement a budget

Cut Back on Spending

At first it may seem difficult to limit spending and stick to a budget however there are a

few practical changes that you can make every day that will cut your spending more than you

expect Firstly alter credit car behaviour Start to pay cash whenever possible This will help you

avoid making a purchase unless you actually have the money available If you decide to make a

credit card purchase be prepared to pay the balance off monthly This will save a lot of money

through avoiding interest charges If you already have a credit card balance then transfer to a

card with a low interest rate Also find a card that does not charge an annual fee Another tip is

to pack your lunch every day All of those lunch hours spent at restaurants will add up Bringing

your own lunch can save you several dollars every day which will add up over time

Start Saving So you are loaded down with bills to pay each month and are wondering how you

can begin a savings account for emergencies and other high-expense endeavors In other words

where can you find that extra cash to put away for later Firstly when configuring

your budge plan for your savings first You will grow richer each month if you begin to pay your-

self first Before paying any bills decide on a set amount that you will pay yourself first or maybe

five or ten percent or whatever you decide of your pay check Then deposit the amount into a

savings account before paying any bills When you do this at the beginning of the month your

entire pay check will not suddenly slip through your fingers Once a person makes a budget they

often fail to adjust it when necessary A budget is created using a set of expenses and income fig-

ures that are liable to change As these figures do change it is important that the budget changes

to reflect the adjustments There could be some major deficits if this is not done appropriate-

ly and promptly Of course nobody forgets about Christmas or Hanukkah

However many people do not consider budgeting for holidays when creating a budget

Therefore adequate funds have not been set aside for presents food parties etc are double or

triple what you would normally pay With a little planning you will be on your way to saving

more money than you ever thought possible

BY

MAYANK PRASSANNO

I MBA B

12

1) Aunt Millie A slang term for an uneducated or unsophisticated investor The term is considered a

derogatory remark in the financial sector often used to refer to poor investment choices

2) Acquisition Indigestion A slang term describing an acquisition or merger in which the

companies involved have trouble integrating with one another Acquisition indigestion may also

describe a situation in which the purchasing company has difficulty making the most of a

takeover

3) Angelina Jolie Stock Index An index made up of a selection of stocks from companies associated

with actress Angela Jolie

4) Bandwagon Effect A psychological phenomenon whereby people do something primarily

because other people are doing it regardless of their own beliefs which they may ignore or over-

ride The bandwagon effect has wide implications but is commonly seen in politics and consumer

behavior

5) Groupon A special type of coupon website that is offers group deals to a group of consumers

Groupons attempt to tap into the power of collective purchasing by offering a substantial discount

such as half off to a group of people if they will buy a particular product or service

6) In The Penalty Box When a companys stock price is in the doldrums and has yet to rebound

because of poor earnings government regulation or another reason

7) Index Hugger A managed mutual fund that tends to perform much like a benchmark index such

as the SampP 500 which gives it the reputation of being a closet index fund The majority of active-

ly managed funds are expected to outperform the so-called average performance produced by

passively managed index funds Also known as a closet tracker or pseudo tracker

BY

CHANDANA D

II MBA C

FINANCE BUZZ

13

PHOTO FIND The given below are the celebrities in the corporate world Find out

who they are

1) _______________________ 2) _____________________

3)_______________________ 4) _____________________

5) _____________________

14

1) Market regulator SEBI passed a consent order against which merchant bankers for fail-

ing to exercise due diligence while conducting its business

2) What is Indiarsquos rank in Global Peace Index 2011 (GPI 2011) out of 153 countries

3) Central Govt Increased interest rate for post office deposit what is current interest

rate

4) Private power producers moved Central Electricity Regulatory Commission (CERC)

against which company accusing it of going on a power purchase agreement (PPA)-

signing spree to escape regulatory oversight in selling its costlier power

5) What is introduced by centre on July an ambitious project will facilitate robust

information sharing among law enforcement agencies such as CBI RAW IB etc

6) According to planning commission Deputy Chairman Rangarajan report released in

July what is expected GDP for this year-end

7) World Investment Report 2011 was released by UNCTAD on 26 July 2011 According to

the report what is Indiarsquos position among the top 20 FDI recipients

8) The Central Department of Telecommunications (DoT) on 22 July 2011 approved

Rs 30000-crore National Optical Fibre Network (NOFN) for broadband connectivity to

2500 Panchayats in India How will be the project funded

9) The Union government on 9 August permitted a new category of QFIs to invest up to

what sum of money in equity and debt schemes of mutual funds (MFs)

10) Fixed exchange rate is also known as __________rate

11) Cabinet Committee on Economic Affairs (CCEA) on 5 August 2011 approved which

PSUrsquos proposal for revival of the Sindri unit of Fertiliser Corporation of India at an in-

vestment of nearly Rs 35000 crore

12) According to government data released on 8 August 2011 Foreign Direct Investment

into India grew by what per cent to 565 billion US dollar in June 2011

FINANCE QUIZ

By

SHILPI KUMARI

II MBA B

15

CROSS WORD

3 A member of a stock exchange who was lsquohammeredrsquo and expelled from the membership for being

unable to meet financial or contractual obligation

4 The behaviour of a company that chooses to focus only on high-end high-margin products even if

customers show an inclination towards value-oriented products

9 Who was the chairman of Union Carbide when Bhopal tragedy occurred on 3 December 1984

10 Goods that are perceived to be exclusive as long as prices remain high or increase

1 The bank which has joined the United Stock Exhange shareholder base by acquiring a 133 percent

stake 2 What term became popular after the newspaper report of Watergate Scandal in the year 1973 5 The state leading in the implementation of projects related to the Delhi-Mumbai Industrial Corridor 6 A bond denominated in Canadian dollars that is sold in Canada by foreign financial institutions and

companies 7 Temporary reduction in the selling price of an item to stimulate demand or to drive a competitor

out of the market 8 An increase in price and trading volume in a particular sector of the economy that occurs as a result

of a recent takeover which initiates a change in sentiment towards the sector

BY SKANDAN YN

II MBA A

Across

Down

16

Q1)

As per the survey

Out of 104 respondents 80 (769) have an opinion that other banks will follow the suit But

18 (173) disagree with the statement whereas 6 (57)people are not sure about it

Best Response

Following suit many PSU banks have come out with offers where they are offering low attrac-

tive fixed rates for the first 3-5 years (8-85) with rates reverting to the standard floating rate

after that period is over These kind of loans are popularly referred to as Teaser loans where

rate in the initial years is fixed as well as low Private players HDFC and ICICI have recently

joined the bandwagon They announced a similar teaser loan product early December 2009

Thus presenting clearly a good option for the consumers who want to stay away from tracking

home loan rates at least for a certain period of time

NISHKA CAMPUS POLL

17

Q2)

As per the survey-

Out of 104 respondents 10 (96) have an opinion that Anna is meddling with the parlia-

mentary system But 86 (827) say that he is fighting for our birthright ie democracy

whereas 10 (77) people are not sure about it

Best Response

The war against corruption led by Anna Hazare is giving Prime Minister Manmohan

Singh and his counsels sleepless nights Their retort is that Hazare wants to kill the Indian

democracy

BY

NEIZELM SOUZA

II MBA A

18

VERIFY YOURSELF

Photo Find

1Deven Sharma President of SampP (resigning on 12 th Sep)

2Nandan M Nilekani Chairman of UIDAI

3Subir Gokarn Deputy Governor of RBI

4Tim Cook CEO Apple Inc

5SD Shibulal CEO Infosys

ANSWERS FOR FINANCE QUIZZ

1 Edelweiss Capital

2 135

3 4

4 NTPC

5 NATGRID (NOTIONAL GRID)

6 82

7 14th

8 Universal Service Obligation [USO] Fund

9 $13 billion

10 Pegged exchange

11 SAIL

12 310

ldquoLiterature

was formerly

an art and

finance a

trade today it

is the reverserdquo

6

Mphasis to buy Wyde Corporation

Computer software services company Mphasis Ltd agreed to buy

software developer Wyde Corp for an undisclosed sum This is

Mphasisrsquos second acquisition in the insurance space It acquired AIG

Software Systems captive centre in India in 2009 With the acquisi-

tion Mphasis is aiming to extend its insurance footprint in the

life and annuities segment and strengthen its existing capabil-

ity in the property and casualty segment

Sanofi unit to buy OTC biz of Universal Medicare for $109 mn

Indiarsquos Aventis Pharma a unit of French drug maker Sanofi is

close to buying the over-the-counter business of Universal

Medicare for about Rs 500 crore ($1095 million) A deal which covers about 30 brands sold by

unlisted India-based Universal Medicare is expected to be

signed and this would boost the French companyrsquos over-the-

counter business in India

HP to buy Autonomy spin off PCs

The rumour has it that Hewlett-Packard Co is close to a deal to buy

British software company Autonomy for $10 billion and concur-

rently plans to spin off its personal-computer business Sharehold-

ers of Autonomy which develops search software will receive

$4211 a share Cambridge-based Autonomy counts Procter amp Gamble Co among a long list of ma-

jor corporate customers that use its software to search and organize

unstructured data like emails

BY

FLAVIA TELLIS

II MBA D

7

RING FENCING LIQUIDITY

Following the global financial crisis in 2008 Banking industry has accepted that there

was inadequate liquidity management on the part of some banks which led to contagion

within banking groups and in the wider economy resulting in a liquidity squeeze Now when

the banks are in difficulties relating to liquidity management the regulators are increasingly

keen on the idea of Ring-Fencing Liquidity often referred to as subsidiarisation as well as

other aspects of a bankrsquos operations to ensure they deal with an entity in the event of a

future crisis

The regulators are looking at each institution in their jurisdiction much more intensively

Greater the impact the Financial Institution has on the local financial system the tighter is

the scrutiny by them The regulators include those of Hong Kong South Korea Singapore and

Taiwan

What does Ring Fencing mean

When a regulated public utility business financially separates itself from a parent company

that engages in non-regulated business This is done mainly to protect consumers of

essential services such as power water and basic telecommunications from financial

instability or bankruptcy in the parent company resulting from losses in their open market

activities Ring fencing also keeps customer information within the public utility business

private from the for-profit efforts of the parent companys other business

In such a scenario the banking groups have a few concerns as well The added cost of

subsidiarisation along with higher liquidity and capital buffers under Basel III is one such

issue Earlier large cross border banks used to get cost savings from having liquidity held

centrally and directing it to locations as needed Hence it is not easy for the industry to revert

to a different model where the branches in each jurisdiction will have to hold liquidity on a

standalone basis

CONTEMPLATORS

8

A bank branch is very much reliant on the head office and has greater operational flexibility If

the head office faces liquidity crunch the subsidiary is equally affected

However the argument in favor of the discussion is that ring-fencing will bring about local

liquidity as each market has its own currency It is definitely a good idea from regional

perspective Even though it provides greater assurance to the public about the robustness of

the bank there is no guarantee that the bank will not collapse The regulators feel that by

implementing the idea the subsidiaries can be self-sufficient even when the bank group is into

some difficulty

Inspite of such huge benefits the cost of this approach cannot be neglected Meeting the

individual liquidity requirement will be tougher and costlier than setting the liquidity

requirement centrally Funding costs in different currencies is again a big issue However the

main aim of the regulators is to inject credit into local economies

Large banks do not agree with the approach as their asset and liability management is more

centrally managed It can even reduce the efficiency of global capital exactly when its needed

Ring- Fencing the liquidity can even restrict the ability to move funds between economies

The main issue is to what extent the banks be ring-fenced without disrupting their normal

functions and profitability As against the BASEL III requirements to have group consolidated

risk management Ring-Fencing can lead to liquidity being trapped at branch or subsidiary

level

One aspect of Ring- Fencing is that is does not distinguish between the bank which manages its

liquidity well and the one which does not The approach will definitely raise the cost of the

industry however one solution here can be incentivizing the banks who are performing well in

liquidity management domain Incentives to improve liquidity and risk management will

motivate banks to outperform the basic requirements Greater control over the banks with

poor risk management and lesser over those who manage the liquidity and risk appropriately

will definitely proof to be a motivator for the industry

BY

AASTHA SHARMA

II MBA B

9

Who Drive the Market Technical Fundamental or Sentiment

Today there is lots of fluctuation in Global Economy and Stock Markets Why it happen

who drives the ups and downs in Global Stock Market Sometime people donrsquot understand the

exact reason behind it some people tell because of economic growth good fundamental of

companies technical reasons or may be because of sentiment

Fundamental Speaks about how strong the base and foundation of any organization When

we talk about fundamental let us take a example of Dow Jones Index the worldrsquos largest stock

exchange is trading at 14 PE ratio were as all the emerging markets are way ahead of Dow

The fundamental of Dow is very strong still it is moving in a narrow range The yearly return of

Dow Jones is less than a fixed deposit interest rate (798)

Many of the company like J P Morgan Citi Group Wal-Mart and GE have very strong

management and balance sheet but still they are not enough to drive the market of United

States We talk about Earnings per Share Price to earnings ratio Book value Market Value

ROE Good Cash Reserve less debt of company but they are not making any difference to the

fundamentals

Technical Used to forecast the direction of prices through past data current price and vol-

ume We talk about technical swings ups and downs because of the technical analysis but some

time it wonrsquot work After going down more than 80 technical cannot help to rebound the

markets more than 20-40 There are different technical indicators like RSI Moving Aver-

ages MACD Dow Theory but will they help market and or they are just of losing money We

can say that the market is oversold or trading above moving average so it will go up but it will

not happen with every stock or market or these are useful for a short term purpose

Sentiments Today most of the markets are driven by Sentiment of people What investor

believes about any particular countryrsquos economy they will reflect the same in their investment

pattern Sentiment plays an important role in stock market if the sentiment is negative across

the street the markets cannot move whether the Fundamental or Technical are favorable If we

look at the real estate sector of any market even though some companies are doing good

business but because of negative sentiment about the sector the share price are not moving

there is no buyer even though they are trading at 5or 6 PE ratio There is no reason for stock

market to down when RBI raises the key interest rate it does not affect the economy in one

day but investor will create negative and market fall

10

Nifty is not able to break the resistances strongly from past 8 months even though

there were good technical and fundamental indicators this all of because of Senti-

ment of people Today I think most of the market are driven by sentiment rather

than other think and may not be good of any economy and markets for long run

BY

RITESH KEJRIWAL

I MBA B

HOW TO MAINTAIN AND CREATE A BUDGET

Staying financially fit during an economic downturn is vital--especially for recent

college graduates or anyone else just entering the work world Here are some tips to create

and maintain a budget The first step to avoiding the troubles of financial debt is to create

and maintain a budget It is not as intimidating as it sounds donrsquot worry

First off create a list of all your monthly income and also a list of your monthly expenses

When determining income list all sources including alimony child support side jobs etc In

calculating expenses be sure to include housing food transportation utilities entertainment

etc To gain an accurate reflection of actual expenses sit down each night and write down

expenses just make sure to save receipts Determine if your income covers all of your expenses

If the answer is no then some expenses need to be reduced

Adjust expenses If it is a small discrepancy it may mean reducing some minor expenses

like entertainment or cell phone plan If the deficit is larger you may need to downsize your

vehicle or living arrangements If your income covers all of your expenses you still may want to

trim some of the excess fat off your spending habits This can free up extra money for things

such as vacations or college funds for your children Additionally consider if you need to add

new categories Some areas that are often overlooked are debt reduction emergency savings

funds and retirement savings An emergency fund ensures there is an adequate amount

available to cover unforeseen events (car emergency etc) should it arise This will eliminate the

need for using credit which can quickly damage your budget There are several advantages to

sticking to your budget Firstly most people have set financial goals that they would like to

reach in the future Sometimes it may be a trip a brand new car or a college education A budget

can help people save money to make these goals a reality Additionally many people are crushed

under heavy consumer debt

11

Without a disciplined pattern of spending it is virtually impossible to make much headway

in reducing debt A personal budget will provide the necessary framework to begin eliminating

these inflated account balances If executed properly a budget will allow a person to

simultaneously meet their expenses place money into savings and pay back outstanding debts

Therefore it is best interest to create and implement a budget

Cut Back on Spending

At first it may seem difficult to limit spending and stick to a budget however there are a

few practical changes that you can make every day that will cut your spending more than you

expect Firstly alter credit car behaviour Start to pay cash whenever possible This will help you

avoid making a purchase unless you actually have the money available If you decide to make a

credit card purchase be prepared to pay the balance off monthly This will save a lot of money

through avoiding interest charges If you already have a credit card balance then transfer to a

card with a low interest rate Also find a card that does not charge an annual fee Another tip is

to pack your lunch every day All of those lunch hours spent at restaurants will add up Bringing

your own lunch can save you several dollars every day which will add up over time

Start Saving So you are loaded down with bills to pay each month and are wondering how you

can begin a savings account for emergencies and other high-expense endeavors In other words

where can you find that extra cash to put away for later Firstly when configuring

your budge plan for your savings first You will grow richer each month if you begin to pay your-

self first Before paying any bills decide on a set amount that you will pay yourself first or maybe

five or ten percent or whatever you decide of your pay check Then deposit the amount into a

savings account before paying any bills When you do this at the beginning of the month your

entire pay check will not suddenly slip through your fingers Once a person makes a budget they

often fail to adjust it when necessary A budget is created using a set of expenses and income fig-

ures that are liable to change As these figures do change it is important that the budget changes

to reflect the adjustments There could be some major deficits if this is not done appropriate-

ly and promptly Of course nobody forgets about Christmas or Hanukkah

However many people do not consider budgeting for holidays when creating a budget

Therefore adequate funds have not been set aside for presents food parties etc are double or

triple what you would normally pay With a little planning you will be on your way to saving

more money than you ever thought possible

BY

MAYANK PRASSANNO

I MBA B

12

1) Aunt Millie A slang term for an uneducated or unsophisticated investor The term is considered a

derogatory remark in the financial sector often used to refer to poor investment choices

2) Acquisition Indigestion A slang term describing an acquisition or merger in which the

companies involved have trouble integrating with one another Acquisition indigestion may also

describe a situation in which the purchasing company has difficulty making the most of a

takeover

3) Angelina Jolie Stock Index An index made up of a selection of stocks from companies associated

with actress Angela Jolie

4) Bandwagon Effect A psychological phenomenon whereby people do something primarily

because other people are doing it regardless of their own beliefs which they may ignore or over-

ride The bandwagon effect has wide implications but is commonly seen in politics and consumer

behavior

5) Groupon A special type of coupon website that is offers group deals to a group of consumers

Groupons attempt to tap into the power of collective purchasing by offering a substantial discount

such as half off to a group of people if they will buy a particular product or service

6) In The Penalty Box When a companys stock price is in the doldrums and has yet to rebound

because of poor earnings government regulation or another reason

7) Index Hugger A managed mutual fund that tends to perform much like a benchmark index such

as the SampP 500 which gives it the reputation of being a closet index fund The majority of active-

ly managed funds are expected to outperform the so-called average performance produced by

passively managed index funds Also known as a closet tracker or pseudo tracker

BY

CHANDANA D

II MBA C

FINANCE BUZZ

13

PHOTO FIND The given below are the celebrities in the corporate world Find out

who they are

1) _______________________ 2) _____________________

3)_______________________ 4) _____________________

5) _____________________

14

1) Market regulator SEBI passed a consent order against which merchant bankers for fail-

ing to exercise due diligence while conducting its business

2) What is Indiarsquos rank in Global Peace Index 2011 (GPI 2011) out of 153 countries

3) Central Govt Increased interest rate for post office deposit what is current interest

rate

4) Private power producers moved Central Electricity Regulatory Commission (CERC)

against which company accusing it of going on a power purchase agreement (PPA)-

signing spree to escape regulatory oversight in selling its costlier power

5) What is introduced by centre on July an ambitious project will facilitate robust

information sharing among law enforcement agencies such as CBI RAW IB etc

6) According to planning commission Deputy Chairman Rangarajan report released in

July what is expected GDP for this year-end

7) World Investment Report 2011 was released by UNCTAD on 26 July 2011 According to

the report what is Indiarsquos position among the top 20 FDI recipients

8) The Central Department of Telecommunications (DoT) on 22 July 2011 approved

Rs 30000-crore National Optical Fibre Network (NOFN) for broadband connectivity to

2500 Panchayats in India How will be the project funded

9) The Union government on 9 August permitted a new category of QFIs to invest up to

what sum of money in equity and debt schemes of mutual funds (MFs)

10) Fixed exchange rate is also known as __________rate

11) Cabinet Committee on Economic Affairs (CCEA) on 5 August 2011 approved which

PSUrsquos proposal for revival of the Sindri unit of Fertiliser Corporation of India at an in-

vestment of nearly Rs 35000 crore

12) According to government data released on 8 August 2011 Foreign Direct Investment

into India grew by what per cent to 565 billion US dollar in June 2011

FINANCE QUIZ

By

SHILPI KUMARI

II MBA B

15

CROSS WORD

3 A member of a stock exchange who was lsquohammeredrsquo and expelled from the membership for being

unable to meet financial or contractual obligation

4 The behaviour of a company that chooses to focus only on high-end high-margin products even if

customers show an inclination towards value-oriented products

9 Who was the chairman of Union Carbide when Bhopal tragedy occurred on 3 December 1984

10 Goods that are perceived to be exclusive as long as prices remain high or increase

1 The bank which has joined the United Stock Exhange shareholder base by acquiring a 133 percent

stake 2 What term became popular after the newspaper report of Watergate Scandal in the year 1973 5 The state leading in the implementation of projects related to the Delhi-Mumbai Industrial Corridor 6 A bond denominated in Canadian dollars that is sold in Canada by foreign financial institutions and

companies 7 Temporary reduction in the selling price of an item to stimulate demand or to drive a competitor

out of the market 8 An increase in price and trading volume in a particular sector of the economy that occurs as a result

of a recent takeover which initiates a change in sentiment towards the sector

BY SKANDAN YN

II MBA A

Across

Down

16

Q1)

As per the survey

Out of 104 respondents 80 (769) have an opinion that other banks will follow the suit But

18 (173) disagree with the statement whereas 6 (57)people are not sure about it

Best Response

Following suit many PSU banks have come out with offers where they are offering low attrac-

tive fixed rates for the first 3-5 years (8-85) with rates reverting to the standard floating rate

after that period is over These kind of loans are popularly referred to as Teaser loans where

rate in the initial years is fixed as well as low Private players HDFC and ICICI have recently

joined the bandwagon They announced a similar teaser loan product early December 2009

Thus presenting clearly a good option for the consumers who want to stay away from tracking

home loan rates at least for a certain period of time

NISHKA CAMPUS POLL

17

Q2)

As per the survey-

Out of 104 respondents 10 (96) have an opinion that Anna is meddling with the parlia-

mentary system But 86 (827) say that he is fighting for our birthright ie democracy

whereas 10 (77) people are not sure about it

Best Response

The war against corruption led by Anna Hazare is giving Prime Minister Manmohan

Singh and his counsels sleepless nights Their retort is that Hazare wants to kill the Indian

democracy

BY

NEIZELM SOUZA

II MBA A

18

VERIFY YOURSELF

Photo Find

1Deven Sharma President of SampP (resigning on 12 th Sep)

2Nandan M Nilekani Chairman of UIDAI

3Subir Gokarn Deputy Governor of RBI

4Tim Cook CEO Apple Inc

5SD Shibulal CEO Infosys

ANSWERS FOR FINANCE QUIZZ

1 Edelweiss Capital

2 135

3 4

4 NTPC

5 NATGRID (NOTIONAL GRID)

6 82

7 14th

8 Universal Service Obligation [USO] Fund

9 $13 billion

10 Pegged exchange

11 SAIL

12 310

ldquoLiterature

was formerly

an art and

finance a

trade today it

is the reverserdquo

7

RING FENCING LIQUIDITY

Following the global financial crisis in 2008 Banking industry has accepted that there

was inadequate liquidity management on the part of some banks which led to contagion

within banking groups and in the wider economy resulting in a liquidity squeeze Now when

the banks are in difficulties relating to liquidity management the regulators are increasingly

keen on the idea of Ring-Fencing Liquidity often referred to as subsidiarisation as well as

other aspects of a bankrsquos operations to ensure they deal with an entity in the event of a

future crisis

The regulators are looking at each institution in their jurisdiction much more intensively

Greater the impact the Financial Institution has on the local financial system the tighter is

the scrutiny by them The regulators include those of Hong Kong South Korea Singapore and

Taiwan

What does Ring Fencing mean

When a regulated public utility business financially separates itself from a parent company

that engages in non-regulated business This is done mainly to protect consumers of

essential services such as power water and basic telecommunications from financial

instability or bankruptcy in the parent company resulting from losses in their open market

activities Ring fencing also keeps customer information within the public utility business

private from the for-profit efforts of the parent companys other business

In such a scenario the banking groups have a few concerns as well The added cost of

subsidiarisation along with higher liquidity and capital buffers under Basel III is one such

issue Earlier large cross border banks used to get cost savings from having liquidity held

centrally and directing it to locations as needed Hence it is not easy for the industry to revert

to a different model where the branches in each jurisdiction will have to hold liquidity on a

standalone basis

CONTEMPLATORS

8

A bank branch is very much reliant on the head office and has greater operational flexibility If

the head office faces liquidity crunch the subsidiary is equally affected

However the argument in favor of the discussion is that ring-fencing will bring about local

liquidity as each market has its own currency It is definitely a good idea from regional

perspective Even though it provides greater assurance to the public about the robustness of

the bank there is no guarantee that the bank will not collapse The regulators feel that by

implementing the idea the subsidiaries can be self-sufficient even when the bank group is into

some difficulty

Inspite of such huge benefits the cost of this approach cannot be neglected Meeting the

individual liquidity requirement will be tougher and costlier than setting the liquidity

requirement centrally Funding costs in different currencies is again a big issue However the

main aim of the regulators is to inject credit into local economies

Large banks do not agree with the approach as their asset and liability management is more

centrally managed It can even reduce the efficiency of global capital exactly when its needed

Ring- Fencing the liquidity can even restrict the ability to move funds between economies

The main issue is to what extent the banks be ring-fenced without disrupting their normal

functions and profitability As against the BASEL III requirements to have group consolidated

risk management Ring-Fencing can lead to liquidity being trapped at branch or subsidiary

level

One aspect of Ring- Fencing is that is does not distinguish between the bank which manages its

liquidity well and the one which does not The approach will definitely raise the cost of the

industry however one solution here can be incentivizing the banks who are performing well in

liquidity management domain Incentives to improve liquidity and risk management will

motivate banks to outperform the basic requirements Greater control over the banks with

poor risk management and lesser over those who manage the liquidity and risk appropriately

will definitely proof to be a motivator for the industry

BY

AASTHA SHARMA

II MBA B

9

Who Drive the Market Technical Fundamental or Sentiment

Today there is lots of fluctuation in Global Economy and Stock Markets Why it happen

who drives the ups and downs in Global Stock Market Sometime people donrsquot understand the

exact reason behind it some people tell because of economic growth good fundamental of

companies technical reasons or may be because of sentiment

Fundamental Speaks about how strong the base and foundation of any organization When

we talk about fundamental let us take a example of Dow Jones Index the worldrsquos largest stock

exchange is trading at 14 PE ratio were as all the emerging markets are way ahead of Dow

The fundamental of Dow is very strong still it is moving in a narrow range The yearly return of

Dow Jones is less than a fixed deposit interest rate (798)

Many of the company like J P Morgan Citi Group Wal-Mart and GE have very strong

management and balance sheet but still they are not enough to drive the market of United

States We talk about Earnings per Share Price to earnings ratio Book value Market Value

ROE Good Cash Reserve less debt of company but they are not making any difference to the

fundamentals

Technical Used to forecast the direction of prices through past data current price and vol-

ume We talk about technical swings ups and downs because of the technical analysis but some

time it wonrsquot work After going down more than 80 technical cannot help to rebound the

markets more than 20-40 There are different technical indicators like RSI Moving Aver-

ages MACD Dow Theory but will they help market and or they are just of losing money We

can say that the market is oversold or trading above moving average so it will go up but it will

not happen with every stock or market or these are useful for a short term purpose

Sentiments Today most of the markets are driven by Sentiment of people What investor

believes about any particular countryrsquos economy they will reflect the same in their investment

pattern Sentiment plays an important role in stock market if the sentiment is negative across

the street the markets cannot move whether the Fundamental or Technical are favorable If we

look at the real estate sector of any market even though some companies are doing good

business but because of negative sentiment about the sector the share price are not moving

there is no buyer even though they are trading at 5or 6 PE ratio There is no reason for stock

market to down when RBI raises the key interest rate it does not affect the economy in one

day but investor will create negative and market fall

10

Nifty is not able to break the resistances strongly from past 8 months even though

there were good technical and fundamental indicators this all of because of Senti-

ment of people Today I think most of the market are driven by sentiment rather

than other think and may not be good of any economy and markets for long run

BY

RITESH KEJRIWAL

I MBA B

HOW TO MAINTAIN AND CREATE A BUDGET

Staying financially fit during an economic downturn is vital--especially for recent

college graduates or anyone else just entering the work world Here are some tips to create

and maintain a budget The first step to avoiding the troubles of financial debt is to create

and maintain a budget It is not as intimidating as it sounds donrsquot worry

First off create a list of all your monthly income and also a list of your monthly expenses

When determining income list all sources including alimony child support side jobs etc In

calculating expenses be sure to include housing food transportation utilities entertainment

etc To gain an accurate reflection of actual expenses sit down each night and write down

expenses just make sure to save receipts Determine if your income covers all of your expenses

If the answer is no then some expenses need to be reduced

Adjust expenses If it is a small discrepancy it may mean reducing some minor expenses

like entertainment or cell phone plan If the deficit is larger you may need to downsize your

vehicle or living arrangements If your income covers all of your expenses you still may want to

trim some of the excess fat off your spending habits This can free up extra money for things

such as vacations or college funds for your children Additionally consider if you need to add

new categories Some areas that are often overlooked are debt reduction emergency savings

funds and retirement savings An emergency fund ensures there is an adequate amount

available to cover unforeseen events (car emergency etc) should it arise This will eliminate the

need for using credit which can quickly damage your budget There are several advantages to

sticking to your budget Firstly most people have set financial goals that they would like to

reach in the future Sometimes it may be a trip a brand new car or a college education A budget

can help people save money to make these goals a reality Additionally many people are crushed

under heavy consumer debt

11

Without a disciplined pattern of spending it is virtually impossible to make much headway

in reducing debt A personal budget will provide the necessary framework to begin eliminating

these inflated account balances If executed properly a budget will allow a person to

simultaneously meet their expenses place money into savings and pay back outstanding debts

Therefore it is best interest to create and implement a budget

Cut Back on Spending

At first it may seem difficult to limit spending and stick to a budget however there are a

few practical changes that you can make every day that will cut your spending more than you

expect Firstly alter credit car behaviour Start to pay cash whenever possible This will help you

avoid making a purchase unless you actually have the money available If you decide to make a

credit card purchase be prepared to pay the balance off monthly This will save a lot of money

through avoiding interest charges If you already have a credit card balance then transfer to a

card with a low interest rate Also find a card that does not charge an annual fee Another tip is

to pack your lunch every day All of those lunch hours spent at restaurants will add up Bringing

your own lunch can save you several dollars every day which will add up over time

Start Saving So you are loaded down with bills to pay each month and are wondering how you

can begin a savings account for emergencies and other high-expense endeavors In other words

where can you find that extra cash to put away for later Firstly when configuring

your budge plan for your savings first You will grow richer each month if you begin to pay your-

self first Before paying any bills decide on a set amount that you will pay yourself first or maybe

five or ten percent or whatever you decide of your pay check Then deposit the amount into a

savings account before paying any bills When you do this at the beginning of the month your

entire pay check will not suddenly slip through your fingers Once a person makes a budget they

often fail to adjust it when necessary A budget is created using a set of expenses and income fig-

ures that are liable to change As these figures do change it is important that the budget changes

to reflect the adjustments There could be some major deficits if this is not done appropriate-

ly and promptly Of course nobody forgets about Christmas or Hanukkah

However many people do not consider budgeting for holidays when creating a budget

Therefore adequate funds have not been set aside for presents food parties etc are double or

triple what you would normally pay With a little planning you will be on your way to saving

more money than you ever thought possible

BY

MAYANK PRASSANNO

I MBA B

12

1) Aunt Millie A slang term for an uneducated or unsophisticated investor The term is considered a

derogatory remark in the financial sector often used to refer to poor investment choices

2) Acquisition Indigestion A slang term describing an acquisition or merger in which the

companies involved have trouble integrating with one another Acquisition indigestion may also

describe a situation in which the purchasing company has difficulty making the most of a

takeover

3) Angelina Jolie Stock Index An index made up of a selection of stocks from companies associated

with actress Angela Jolie

4) Bandwagon Effect A psychological phenomenon whereby people do something primarily

because other people are doing it regardless of their own beliefs which they may ignore or over-

ride The bandwagon effect has wide implications but is commonly seen in politics and consumer

behavior

5) Groupon A special type of coupon website that is offers group deals to a group of consumers

Groupons attempt to tap into the power of collective purchasing by offering a substantial discount

such as half off to a group of people if they will buy a particular product or service

6) In The Penalty Box When a companys stock price is in the doldrums and has yet to rebound

because of poor earnings government regulation or another reason

7) Index Hugger A managed mutual fund that tends to perform much like a benchmark index such

as the SampP 500 which gives it the reputation of being a closet index fund The majority of active-

ly managed funds are expected to outperform the so-called average performance produced by

passively managed index funds Also known as a closet tracker or pseudo tracker

BY

CHANDANA D

II MBA C

FINANCE BUZZ

13

PHOTO FIND The given below are the celebrities in the corporate world Find out

who they are

1) _______________________ 2) _____________________

3)_______________________ 4) _____________________

5) _____________________

14

1) Market regulator SEBI passed a consent order against which merchant bankers for fail-

ing to exercise due diligence while conducting its business

2) What is Indiarsquos rank in Global Peace Index 2011 (GPI 2011) out of 153 countries

3) Central Govt Increased interest rate for post office deposit what is current interest

rate

4) Private power producers moved Central Electricity Regulatory Commission (CERC)

against which company accusing it of going on a power purchase agreement (PPA)-

signing spree to escape regulatory oversight in selling its costlier power

5) What is introduced by centre on July an ambitious project will facilitate robust

information sharing among law enforcement agencies such as CBI RAW IB etc

6) According to planning commission Deputy Chairman Rangarajan report released in

July what is expected GDP for this year-end

7) World Investment Report 2011 was released by UNCTAD on 26 July 2011 According to

the report what is Indiarsquos position among the top 20 FDI recipients

8) The Central Department of Telecommunications (DoT) on 22 July 2011 approved

Rs 30000-crore National Optical Fibre Network (NOFN) for broadband connectivity to

2500 Panchayats in India How will be the project funded

9) The Union government on 9 August permitted a new category of QFIs to invest up to

what sum of money in equity and debt schemes of mutual funds (MFs)

10) Fixed exchange rate is also known as __________rate

11) Cabinet Committee on Economic Affairs (CCEA) on 5 August 2011 approved which

PSUrsquos proposal for revival of the Sindri unit of Fertiliser Corporation of India at an in-

vestment of nearly Rs 35000 crore

12) According to government data released on 8 August 2011 Foreign Direct Investment

into India grew by what per cent to 565 billion US dollar in June 2011

FINANCE QUIZ

By

SHILPI KUMARI

II MBA B

15

CROSS WORD

3 A member of a stock exchange who was lsquohammeredrsquo and expelled from the membership for being

unable to meet financial or contractual obligation

4 The behaviour of a company that chooses to focus only on high-end high-margin products even if

customers show an inclination towards value-oriented products

9 Who was the chairman of Union Carbide when Bhopal tragedy occurred on 3 December 1984

10 Goods that are perceived to be exclusive as long as prices remain high or increase

1 The bank which has joined the United Stock Exhange shareholder base by acquiring a 133 percent

stake 2 What term became popular after the newspaper report of Watergate Scandal in the year 1973 5 The state leading in the implementation of projects related to the Delhi-Mumbai Industrial Corridor 6 A bond denominated in Canadian dollars that is sold in Canada by foreign financial institutions and

companies 7 Temporary reduction in the selling price of an item to stimulate demand or to drive a competitor

out of the market 8 An increase in price and trading volume in a particular sector of the economy that occurs as a result

of a recent takeover which initiates a change in sentiment towards the sector

BY SKANDAN YN

II MBA A

Across

Down

16

Q1)

As per the survey

Out of 104 respondents 80 (769) have an opinion that other banks will follow the suit But

18 (173) disagree with the statement whereas 6 (57)people are not sure about it

Best Response

Following suit many PSU banks have come out with offers where they are offering low attrac-

tive fixed rates for the first 3-5 years (8-85) with rates reverting to the standard floating rate

after that period is over These kind of loans are popularly referred to as Teaser loans where

rate in the initial years is fixed as well as low Private players HDFC and ICICI have recently

joined the bandwagon They announced a similar teaser loan product early December 2009

Thus presenting clearly a good option for the consumers who want to stay away from tracking

home loan rates at least for a certain period of time

NISHKA CAMPUS POLL

17

Q2)

As per the survey-

Out of 104 respondents 10 (96) have an opinion that Anna is meddling with the parlia-

mentary system But 86 (827) say that he is fighting for our birthright ie democracy

whereas 10 (77) people are not sure about it

Best Response

The war against corruption led by Anna Hazare is giving Prime Minister Manmohan

Singh and his counsels sleepless nights Their retort is that Hazare wants to kill the Indian

democracy

BY

NEIZELM SOUZA

II MBA A

18

VERIFY YOURSELF

Photo Find

1Deven Sharma President of SampP (resigning on 12 th Sep)

2Nandan M Nilekani Chairman of UIDAI

3Subir Gokarn Deputy Governor of RBI

4Tim Cook CEO Apple Inc

5SD Shibulal CEO Infosys

ANSWERS FOR FINANCE QUIZZ

1 Edelweiss Capital

2 135

3 4

4 NTPC

5 NATGRID (NOTIONAL GRID)

6 82

7 14th

8 Universal Service Obligation [USO] Fund

9 $13 billion

10 Pegged exchange

11 SAIL

12 310

ldquoLiterature

was formerly

an art and

finance a

trade today it

is the reverserdquo

8

A bank branch is very much reliant on the head office and has greater operational flexibility If

the head office faces liquidity crunch the subsidiary is equally affected

However the argument in favor of the discussion is that ring-fencing will bring about local

liquidity as each market has its own currency It is definitely a good idea from regional

perspective Even though it provides greater assurance to the public about the robustness of

the bank there is no guarantee that the bank will not collapse The regulators feel that by

implementing the idea the subsidiaries can be self-sufficient even when the bank group is into

some difficulty

Inspite of such huge benefits the cost of this approach cannot be neglected Meeting the

individual liquidity requirement will be tougher and costlier than setting the liquidity

requirement centrally Funding costs in different currencies is again a big issue However the

main aim of the regulators is to inject credit into local economies

Large banks do not agree with the approach as their asset and liability management is more

centrally managed It can even reduce the efficiency of global capital exactly when its needed

Ring- Fencing the liquidity can even restrict the ability to move funds between economies

The main issue is to what extent the banks be ring-fenced without disrupting their normal

functions and profitability As against the BASEL III requirements to have group consolidated

risk management Ring-Fencing can lead to liquidity being trapped at branch or subsidiary

level

One aspect of Ring- Fencing is that is does not distinguish between the bank which manages its

liquidity well and the one which does not The approach will definitely raise the cost of the

industry however one solution here can be incentivizing the banks who are performing well in

liquidity management domain Incentives to improve liquidity and risk management will

motivate banks to outperform the basic requirements Greater control over the banks with

poor risk management and lesser over those who manage the liquidity and risk appropriately

will definitely proof to be a motivator for the industry

BY

AASTHA SHARMA

II MBA B

9

Who Drive the Market Technical Fundamental or Sentiment

Today there is lots of fluctuation in Global Economy and Stock Markets Why it happen

who drives the ups and downs in Global Stock Market Sometime people donrsquot understand the

exact reason behind it some people tell because of economic growth good fundamental of

companies technical reasons or may be because of sentiment

Fundamental Speaks about how strong the base and foundation of any organization When

we talk about fundamental let us take a example of Dow Jones Index the worldrsquos largest stock

exchange is trading at 14 PE ratio were as all the emerging markets are way ahead of Dow

The fundamental of Dow is very strong still it is moving in a narrow range The yearly return of

Dow Jones is less than a fixed deposit interest rate (798)

Many of the company like J P Morgan Citi Group Wal-Mart and GE have very strong

management and balance sheet but still they are not enough to drive the market of United

States We talk about Earnings per Share Price to earnings ratio Book value Market Value

ROE Good Cash Reserve less debt of company but they are not making any difference to the

fundamentals

Technical Used to forecast the direction of prices through past data current price and vol-

ume We talk about technical swings ups and downs because of the technical analysis but some

time it wonrsquot work After going down more than 80 technical cannot help to rebound the

markets more than 20-40 There are different technical indicators like RSI Moving Aver-

ages MACD Dow Theory but will they help market and or they are just of losing money We

can say that the market is oversold or trading above moving average so it will go up but it will

not happen with every stock or market or these are useful for a short term purpose

Sentiments Today most of the markets are driven by Sentiment of people What investor

believes about any particular countryrsquos economy they will reflect the same in their investment

pattern Sentiment plays an important role in stock market if the sentiment is negative across

the street the markets cannot move whether the Fundamental or Technical are favorable If we

look at the real estate sector of any market even though some companies are doing good

business but because of negative sentiment about the sector the share price are not moving

there is no buyer even though they are trading at 5or 6 PE ratio There is no reason for stock

market to down when RBI raises the key interest rate it does not affect the economy in one

day but investor will create negative and market fall

10

Nifty is not able to break the resistances strongly from past 8 months even though

there were good technical and fundamental indicators this all of because of Senti-

ment of people Today I think most of the market are driven by sentiment rather

than other think and may not be good of any economy and markets for long run

BY

RITESH KEJRIWAL

I MBA B

HOW TO MAINTAIN AND CREATE A BUDGET

Staying financially fit during an economic downturn is vital--especially for recent

college graduates or anyone else just entering the work world Here are some tips to create

and maintain a budget The first step to avoiding the troubles of financial debt is to create

and maintain a budget It is not as intimidating as it sounds donrsquot worry

First off create a list of all your monthly income and also a list of your monthly expenses

When determining income list all sources including alimony child support side jobs etc In

calculating expenses be sure to include housing food transportation utilities entertainment

etc To gain an accurate reflection of actual expenses sit down each night and write down

expenses just make sure to save receipts Determine if your income covers all of your expenses

If the answer is no then some expenses need to be reduced

Adjust expenses If it is a small discrepancy it may mean reducing some minor expenses

like entertainment or cell phone plan If the deficit is larger you may need to downsize your

vehicle or living arrangements If your income covers all of your expenses you still may want to

trim some of the excess fat off your spending habits This can free up extra money for things

such as vacations or college funds for your children Additionally consider if you need to add

new categories Some areas that are often overlooked are debt reduction emergency savings

funds and retirement savings An emergency fund ensures there is an adequate amount

available to cover unforeseen events (car emergency etc) should it arise This will eliminate the

need for using credit which can quickly damage your budget There are several advantages to

sticking to your budget Firstly most people have set financial goals that they would like to

reach in the future Sometimes it may be a trip a brand new car or a college education A budget

can help people save money to make these goals a reality Additionally many people are crushed

under heavy consumer debt

11

Without a disciplined pattern of spending it is virtually impossible to make much headway

in reducing debt A personal budget will provide the necessary framework to begin eliminating

these inflated account balances If executed properly a budget will allow a person to

simultaneously meet their expenses place money into savings and pay back outstanding debts

Therefore it is best interest to create and implement a budget

Cut Back on Spending

At first it may seem difficult to limit spending and stick to a budget however there are a

few practical changes that you can make every day that will cut your spending more than you

expect Firstly alter credit car behaviour Start to pay cash whenever possible This will help you

avoid making a purchase unless you actually have the money available If you decide to make a

credit card purchase be prepared to pay the balance off monthly This will save a lot of money

through avoiding interest charges If you already have a credit card balance then transfer to a

card with a low interest rate Also find a card that does not charge an annual fee Another tip is

to pack your lunch every day All of those lunch hours spent at restaurants will add up Bringing

your own lunch can save you several dollars every day which will add up over time

Start Saving So you are loaded down with bills to pay each month and are wondering how you

can begin a savings account for emergencies and other high-expense endeavors In other words

where can you find that extra cash to put away for later Firstly when configuring

your budge plan for your savings first You will grow richer each month if you begin to pay your-

self first Before paying any bills decide on a set amount that you will pay yourself first or maybe

five or ten percent or whatever you decide of your pay check Then deposit the amount into a

savings account before paying any bills When you do this at the beginning of the month your

entire pay check will not suddenly slip through your fingers Once a person makes a budget they

often fail to adjust it when necessary A budget is created using a set of expenses and income fig-

ures that are liable to change As these figures do change it is important that the budget changes

to reflect the adjustments There could be some major deficits if this is not done appropriate-

ly and promptly Of course nobody forgets about Christmas or Hanukkah

However many people do not consider budgeting for holidays when creating a budget

Therefore adequate funds have not been set aside for presents food parties etc are double or

triple what you would normally pay With a little planning you will be on your way to saving

more money than you ever thought possible

BY

MAYANK PRASSANNO

I MBA B

12

1) Aunt Millie A slang term for an uneducated or unsophisticated investor The term is considered a

derogatory remark in the financial sector often used to refer to poor investment choices

2) Acquisition Indigestion A slang term describing an acquisition or merger in which the

companies involved have trouble integrating with one another Acquisition indigestion may also

describe a situation in which the purchasing company has difficulty making the most of a

takeover

3) Angelina Jolie Stock Index An index made up of a selection of stocks from companies associated

with actress Angela Jolie

4) Bandwagon Effect A psychological phenomenon whereby people do something primarily

because other people are doing it regardless of their own beliefs which they may ignore or over-

ride The bandwagon effect has wide implications but is commonly seen in politics and consumer

behavior

5) Groupon A special type of coupon website that is offers group deals to a group of consumers

Groupons attempt to tap into the power of collective purchasing by offering a substantial discount

such as half off to a group of people if they will buy a particular product or service

6) In The Penalty Box When a companys stock price is in the doldrums and has yet to rebound

because of poor earnings government regulation or another reason

7) Index Hugger A managed mutual fund that tends to perform much like a benchmark index such

as the SampP 500 which gives it the reputation of being a closet index fund The majority of active-

ly managed funds are expected to outperform the so-called average performance produced by

passively managed index funds Also known as a closet tracker or pseudo tracker

BY

CHANDANA D

II MBA C

FINANCE BUZZ

13

PHOTO FIND The given below are the celebrities in the corporate world Find out

who they are

1) _______________________ 2) _____________________

3)_______________________ 4) _____________________

5) _____________________

14

1) Market regulator SEBI passed a consent order against which merchant bankers for fail-

ing to exercise due diligence while conducting its business

2) What is Indiarsquos rank in Global Peace Index 2011 (GPI 2011) out of 153 countries

3) Central Govt Increased interest rate for post office deposit what is current interest

rate

4) Private power producers moved Central Electricity Regulatory Commission (CERC)

against which company accusing it of going on a power purchase agreement (PPA)-

signing spree to escape regulatory oversight in selling its costlier power

5) What is introduced by centre on July an ambitious project will facilitate robust

information sharing among law enforcement agencies such as CBI RAW IB etc

6) According to planning commission Deputy Chairman Rangarajan report released in

July what is expected GDP for this year-end

7) World Investment Report 2011 was released by UNCTAD on 26 July 2011 According to

the report what is Indiarsquos position among the top 20 FDI recipients

8) The Central Department of Telecommunications (DoT) on 22 July 2011 approved

Rs 30000-crore National Optical Fibre Network (NOFN) for broadband connectivity to

2500 Panchayats in India How will be the project funded

9) The Union government on 9 August permitted a new category of QFIs to invest up to

what sum of money in equity and debt schemes of mutual funds (MFs)

10) Fixed exchange rate is also known as __________rate

11) Cabinet Committee on Economic Affairs (CCEA) on 5 August 2011 approved which

PSUrsquos proposal for revival of the Sindri unit of Fertiliser Corporation of India at an in-

vestment of nearly Rs 35000 crore

12) According to government data released on 8 August 2011 Foreign Direct Investment

into India grew by what per cent to 565 billion US dollar in June 2011

FINANCE QUIZ

By

SHILPI KUMARI

II MBA B

15

CROSS WORD

3 A member of a stock exchange who was lsquohammeredrsquo and expelled from the membership for being

unable to meet financial or contractual obligation

4 The behaviour of a company that chooses to focus only on high-end high-margin products even if

customers show an inclination towards value-oriented products

9 Who was the chairman of Union Carbide when Bhopal tragedy occurred on 3 December 1984

10 Goods that are perceived to be exclusive as long as prices remain high or increase

1 The bank which has joined the United Stock Exhange shareholder base by acquiring a 133 percent

stake 2 What term became popular after the newspaper report of Watergate Scandal in the year 1973 5 The state leading in the implementation of projects related to the Delhi-Mumbai Industrial Corridor 6 A bond denominated in Canadian dollars that is sold in Canada by foreign financial institutions and

companies 7 Temporary reduction in the selling price of an item to stimulate demand or to drive a competitor

out of the market 8 An increase in price and trading volume in a particular sector of the economy that occurs as a result

of a recent takeover which initiates a change in sentiment towards the sector

BY SKANDAN YN

II MBA A

Across

Down

16

Q1)

As per the survey

Out of 104 respondents 80 (769) have an opinion that other banks will follow the suit But

18 (173) disagree with the statement whereas 6 (57)people are not sure about it

Best Response

Following suit many PSU banks have come out with offers where they are offering low attrac-

tive fixed rates for the first 3-5 years (8-85) with rates reverting to the standard floating rate

after that period is over These kind of loans are popularly referred to as Teaser loans where

rate in the initial years is fixed as well as low Private players HDFC and ICICI have recently

joined the bandwagon They announced a similar teaser loan product early December 2009

Thus presenting clearly a good option for the consumers who want to stay away from tracking

home loan rates at least for a certain period of time

NISHKA CAMPUS POLL

17

Q2)

As per the survey-

Out of 104 respondents 10 (96) have an opinion that Anna is meddling with the parlia-

mentary system But 86 (827) say that he is fighting for our birthright ie democracy

whereas 10 (77) people are not sure about it

Best Response

The war against corruption led by Anna Hazare is giving Prime Minister Manmohan

Singh and his counsels sleepless nights Their retort is that Hazare wants to kill the Indian

democracy

BY

NEIZELM SOUZA

II MBA A

18

VERIFY YOURSELF

Photo Find

1Deven Sharma President of SampP (resigning on 12 th Sep)

2Nandan M Nilekani Chairman of UIDAI

3Subir Gokarn Deputy Governor of RBI

4Tim Cook CEO Apple Inc

5SD Shibulal CEO Infosys

ANSWERS FOR FINANCE QUIZZ

1 Edelweiss Capital

2 135

3 4

4 NTPC

5 NATGRID (NOTIONAL GRID)

6 82

7 14th

8 Universal Service Obligation [USO] Fund

9 $13 billion

10 Pegged exchange

11 SAIL

12 310

ldquoLiterature

was formerly

an art and

finance a

trade today it

is the reverserdquo

9

Who Drive the Market Technical Fundamental or Sentiment

Today there is lots of fluctuation in Global Economy and Stock Markets Why it happen

who drives the ups and downs in Global Stock Market Sometime people donrsquot understand the

exact reason behind it some people tell because of economic growth good fundamental of

companies technical reasons or may be because of sentiment

Fundamental Speaks about how strong the base and foundation of any organization When

we talk about fundamental let us take a example of Dow Jones Index the worldrsquos largest stock

exchange is trading at 14 PE ratio were as all the emerging markets are way ahead of Dow

The fundamental of Dow is very strong still it is moving in a narrow range The yearly return of

Dow Jones is less than a fixed deposit interest rate (798)

Many of the company like J P Morgan Citi Group Wal-Mart and GE have very strong

management and balance sheet but still they are not enough to drive the market of United

States We talk about Earnings per Share Price to earnings ratio Book value Market Value

ROE Good Cash Reserve less debt of company but they are not making any difference to the

fundamentals

Technical Used to forecast the direction of prices through past data current price and vol-

ume We talk about technical swings ups and downs because of the technical analysis but some

time it wonrsquot work After going down more than 80 technical cannot help to rebound the

markets more than 20-40 There are different technical indicators like RSI Moving Aver-

ages MACD Dow Theory but will they help market and or they are just of losing money We

can say that the market is oversold or trading above moving average so it will go up but it will

not happen with every stock or market or these are useful for a short term purpose

Sentiments Today most of the markets are driven by Sentiment of people What investor

believes about any particular countryrsquos economy they will reflect the same in their investment

pattern Sentiment plays an important role in stock market if the sentiment is negative across

the street the markets cannot move whether the Fundamental or Technical are favorable If we

look at the real estate sector of any market even though some companies are doing good

business but because of negative sentiment about the sector the share price are not moving

there is no buyer even though they are trading at 5or 6 PE ratio There is no reason for stock

market to down when RBI raises the key interest rate it does not affect the economy in one

day but investor will create negative and market fall

10

Nifty is not able to break the resistances strongly from past 8 months even though

there were good technical and fundamental indicators this all of because of Senti-

ment of people Today I think most of the market are driven by sentiment rather

than other think and may not be good of any economy and markets for long run

BY

RITESH KEJRIWAL

I MBA B

HOW TO MAINTAIN AND CREATE A BUDGET

Staying financially fit during an economic downturn is vital--especially for recent

college graduates or anyone else just entering the work world Here are some tips to create

and maintain a budget The first step to avoiding the troubles of financial debt is to create

and maintain a budget It is not as intimidating as it sounds donrsquot worry

First off create a list of all your monthly income and also a list of your monthly expenses

When determining income list all sources including alimony child support side jobs etc In

calculating expenses be sure to include housing food transportation utilities entertainment

etc To gain an accurate reflection of actual expenses sit down each night and write down

expenses just make sure to save receipts Determine if your income covers all of your expenses

If the answer is no then some expenses need to be reduced

Adjust expenses If it is a small discrepancy it may mean reducing some minor expenses

like entertainment or cell phone plan If the deficit is larger you may need to downsize your

vehicle or living arrangements If your income covers all of your expenses you still may want to

trim some of the excess fat off your spending habits This can free up extra money for things

such as vacations or college funds for your children Additionally consider if you need to add

new categories Some areas that are often overlooked are debt reduction emergency savings

funds and retirement savings An emergency fund ensures there is an adequate amount

available to cover unforeseen events (car emergency etc) should it arise This will eliminate the

need for using credit which can quickly damage your budget There are several advantages to

sticking to your budget Firstly most people have set financial goals that they would like to

reach in the future Sometimes it may be a trip a brand new car or a college education A budget

can help people save money to make these goals a reality Additionally many people are crushed

under heavy consumer debt

11

Without a disciplined pattern of spending it is virtually impossible to make much headway

in reducing debt A personal budget will provide the necessary framework to begin eliminating

these inflated account balances If executed properly a budget will allow a person to

simultaneously meet their expenses place money into savings and pay back outstanding debts

Therefore it is best interest to create and implement a budget

Cut Back on Spending

At first it may seem difficult to limit spending and stick to a budget however there are a

few practical changes that you can make every day that will cut your spending more than you

expect Firstly alter credit car behaviour Start to pay cash whenever possible This will help you

avoid making a purchase unless you actually have the money available If you decide to make a

credit card purchase be prepared to pay the balance off monthly This will save a lot of money

through avoiding interest charges If you already have a credit card balance then transfer to a

card with a low interest rate Also find a card that does not charge an annual fee Another tip is

to pack your lunch every day All of those lunch hours spent at restaurants will add up Bringing

your own lunch can save you several dollars every day which will add up over time

Start Saving So you are loaded down with bills to pay each month and are wondering how you

can begin a savings account for emergencies and other high-expense endeavors In other words

where can you find that extra cash to put away for later Firstly when configuring

your budge plan for your savings first You will grow richer each month if you begin to pay your-

self first Before paying any bills decide on a set amount that you will pay yourself first or maybe

five or ten percent or whatever you decide of your pay check Then deposit the amount into a

savings account before paying any bills When you do this at the beginning of the month your

entire pay check will not suddenly slip through your fingers Once a person makes a budget they

often fail to adjust it when necessary A budget is created using a set of expenses and income fig-

ures that are liable to change As these figures do change it is important that the budget changes

to reflect the adjustments There could be some major deficits if this is not done appropriate-

ly and promptly Of course nobody forgets about Christmas or Hanukkah

However many people do not consider budgeting for holidays when creating a budget

Therefore adequate funds have not been set aside for presents food parties etc are double or

triple what you would normally pay With a little planning you will be on your way to saving

more money than you ever thought possible

BY

MAYANK PRASSANNO

I MBA B

12

1) Aunt Millie A slang term for an uneducated or unsophisticated investor The term is considered a

derogatory remark in the financial sector often used to refer to poor investment choices

2) Acquisition Indigestion A slang term describing an acquisition or merger in which the

companies involved have trouble integrating with one another Acquisition indigestion may also

describe a situation in which the purchasing company has difficulty making the most of a

takeover

3) Angelina Jolie Stock Index An index made up of a selection of stocks from companies associated

with actress Angela Jolie

4) Bandwagon Effect A psychological phenomenon whereby people do something primarily

because other people are doing it regardless of their own beliefs which they may ignore or over-

ride The bandwagon effect has wide implications but is commonly seen in politics and consumer

behavior

5) Groupon A special type of coupon website that is offers group deals to a group of consumers

Groupons attempt to tap into the power of collective purchasing by offering a substantial discount

such as half off to a group of people if they will buy a particular product or service

6) In The Penalty Box When a companys stock price is in the doldrums and has yet to rebound

because of poor earnings government regulation or another reason

7) Index Hugger A managed mutual fund that tends to perform much like a benchmark index such

as the SampP 500 which gives it the reputation of being a closet index fund The majority of active-

ly managed funds are expected to outperform the so-called average performance produced by

passively managed index funds Also known as a closet tracker or pseudo tracker

BY

CHANDANA D

II MBA C

FINANCE BUZZ

13

PHOTO FIND The given below are the celebrities in the corporate world Find out

who they are

1) _______________________ 2) _____________________

3)_______________________ 4) _____________________

5) _____________________

14

1) Market regulator SEBI passed a consent order against which merchant bankers for fail-

ing to exercise due diligence while conducting its business

2) What is Indiarsquos rank in Global Peace Index 2011 (GPI 2011) out of 153 countries

3) Central Govt Increased interest rate for post office deposit what is current interest

rate

4) Private power producers moved Central Electricity Regulatory Commission (CERC)

against which company accusing it of going on a power purchase agreement (PPA)-

signing spree to escape regulatory oversight in selling its costlier power

5) What is introduced by centre on July an ambitious project will facilitate robust

information sharing among law enforcement agencies such as CBI RAW IB etc

6) According to planning commission Deputy Chairman Rangarajan report released in

July what is expected GDP for this year-end

7) World Investment Report 2011 was released by UNCTAD on 26 July 2011 According to

the report what is Indiarsquos position among the top 20 FDI recipients

8) The Central Department of Telecommunications (DoT) on 22 July 2011 approved

Rs 30000-crore National Optical Fibre Network (NOFN) for broadband connectivity to

2500 Panchayats in India How will be the project funded

9) The Union government on 9 August permitted a new category of QFIs to invest up to

what sum of money in equity and debt schemes of mutual funds (MFs)

10) Fixed exchange rate is also known as __________rate

11) Cabinet Committee on Economic Affairs (CCEA) on 5 August 2011 approved which

PSUrsquos proposal for revival of the Sindri unit of Fertiliser Corporation of India at an in-

vestment of nearly Rs 35000 crore

12) According to government data released on 8 August 2011 Foreign Direct Investment

into India grew by what per cent to 565 billion US dollar in June 2011

FINANCE QUIZ

By

SHILPI KUMARI

II MBA B

15

CROSS WORD

3 A member of a stock exchange who was lsquohammeredrsquo and expelled from the membership for being

unable to meet financial or contractual obligation

4 The behaviour of a company that chooses to focus only on high-end high-margin products even if

customers show an inclination towards value-oriented products

9 Who was the chairman of Union Carbide when Bhopal tragedy occurred on 3 December 1984

10 Goods that are perceived to be exclusive as long as prices remain high or increase

1 The bank which has joined the United Stock Exhange shareholder base by acquiring a 133 percent

stake 2 What term became popular after the newspaper report of Watergate Scandal in the year 1973 5 The state leading in the implementation of projects related to the Delhi-Mumbai Industrial Corridor 6 A bond denominated in Canadian dollars that is sold in Canada by foreign financial institutions and

companies 7 Temporary reduction in the selling price of an item to stimulate demand or to drive a competitor

out of the market 8 An increase in price and trading volume in a particular sector of the economy that occurs as a result

of a recent takeover which initiates a change in sentiment towards the sector

BY SKANDAN YN

II MBA A

Across

Down

16

Q1)

As per the survey

Out of 104 respondents 80 (769) have an opinion that other banks will follow the suit But

18 (173) disagree with the statement whereas 6 (57)people are not sure about it

Best Response

Following suit many PSU banks have come out with offers where they are offering low attrac-

tive fixed rates for the first 3-5 years (8-85) with rates reverting to the standard floating rate

after that period is over These kind of loans are popularly referred to as Teaser loans where

rate in the initial years is fixed as well as low Private players HDFC and ICICI have recently

joined the bandwagon They announced a similar teaser loan product early December 2009

Thus presenting clearly a good option for the consumers who want to stay away from tracking

home loan rates at least for a certain period of time

NISHKA CAMPUS POLL

17

Q2)

As per the survey-

Out of 104 respondents 10 (96) have an opinion that Anna is meddling with the parlia-

mentary system But 86 (827) say that he is fighting for our birthright ie democracy

whereas 10 (77) people are not sure about it

Best Response

The war against corruption led by Anna Hazare is giving Prime Minister Manmohan

Singh and his counsels sleepless nights Their retort is that Hazare wants to kill the Indian

democracy

BY

NEIZELM SOUZA

II MBA A

18

VERIFY YOURSELF

Photo Find

1Deven Sharma President of SampP (resigning on 12 th Sep)

2Nandan M Nilekani Chairman of UIDAI

3Subir Gokarn Deputy Governor of RBI

4Tim Cook CEO Apple Inc

5SD Shibulal CEO Infosys

ANSWERS FOR FINANCE QUIZZ

1 Edelweiss Capital

2 135

3 4

4 NTPC

5 NATGRID (NOTIONAL GRID)

6 82

7 14th

8 Universal Service Obligation [USO] Fund

9 $13 billion

10 Pegged exchange

11 SAIL

12 310

ldquoLiterature

was formerly

an art and

finance a

trade today it

is the reverserdquo

10

Nifty is not able to break the resistances strongly from past 8 months even though

there were good technical and fundamental indicators this all of because of Senti-

ment of people Today I think most of the market are driven by sentiment rather

than other think and may not be good of any economy and markets for long run

BY

RITESH KEJRIWAL

I MBA B

HOW TO MAINTAIN AND CREATE A BUDGET

Staying financially fit during an economic downturn is vital--especially for recent

college graduates or anyone else just entering the work world Here are some tips to create

and maintain a budget The first step to avoiding the troubles of financial debt is to create

and maintain a budget It is not as intimidating as it sounds donrsquot worry

First off create a list of all your monthly income and also a list of your monthly expenses

When determining income list all sources including alimony child support side jobs etc In

calculating expenses be sure to include housing food transportation utilities entertainment

etc To gain an accurate reflection of actual expenses sit down each night and write down

expenses just make sure to save receipts Determine if your income covers all of your expenses

If the answer is no then some expenses need to be reduced

Adjust expenses If it is a small discrepancy it may mean reducing some minor expenses

like entertainment or cell phone plan If the deficit is larger you may need to downsize your

vehicle or living arrangements If your income covers all of your expenses you still may want to

trim some of the excess fat off your spending habits This can free up extra money for things

such as vacations or college funds for your children Additionally consider if you need to add

new categories Some areas that are often overlooked are debt reduction emergency savings

funds and retirement savings An emergency fund ensures there is an adequate amount

available to cover unforeseen events (car emergency etc) should it arise This will eliminate the

need for using credit which can quickly damage your budget There are several advantages to

sticking to your budget Firstly most people have set financial goals that they would like to

reach in the future Sometimes it may be a trip a brand new car or a college education A budget

can help people save money to make these goals a reality Additionally many people are crushed

under heavy consumer debt

11

Without a disciplined pattern of spending it is virtually impossible to make much headway

in reducing debt A personal budget will provide the necessary framework to begin eliminating

these inflated account balances If executed properly a budget will allow a person to

simultaneously meet their expenses place money into savings and pay back outstanding debts

Therefore it is best interest to create and implement a budget

Cut Back on Spending

At first it may seem difficult to limit spending and stick to a budget however there are a

few practical changes that you can make every day that will cut your spending more than you

expect Firstly alter credit car behaviour Start to pay cash whenever possible This will help you

avoid making a purchase unless you actually have the money available If you decide to make a

credit card purchase be prepared to pay the balance off monthly This will save a lot of money

through avoiding interest charges If you already have a credit card balance then transfer to a

card with a low interest rate Also find a card that does not charge an annual fee Another tip is

to pack your lunch every day All of those lunch hours spent at restaurants will add up Bringing

your own lunch can save you several dollars every day which will add up over time

Start Saving So you are loaded down with bills to pay each month and are wondering how you

can begin a savings account for emergencies and other high-expense endeavors In other words

where can you find that extra cash to put away for later Firstly when configuring

your budge plan for your savings first You will grow richer each month if you begin to pay your-

self first Before paying any bills decide on a set amount that you will pay yourself first or maybe

five or ten percent or whatever you decide of your pay check Then deposit the amount into a

savings account before paying any bills When you do this at the beginning of the month your

entire pay check will not suddenly slip through your fingers Once a person makes a budget they

often fail to adjust it when necessary A budget is created using a set of expenses and income fig-

ures that are liable to change As these figures do change it is important that the budget changes

to reflect the adjustments There could be some major deficits if this is not done appropriate-

ly and promptly Of course nobody forgets about Christmas or Hanukkah

However many people do not consider budgeting for holidays when creating a budget

Therefore adequate funds have not been set aside for presents food parties etc are double or

triple what you would normally pay With a little planning you will be on your way to saving

more money than you ever thought possible

BY

MAYANK PRASSANNO

I MBA B

12

1) Aunt Millie A slang term for an uneducated or unsophisticated investor The term is considered a

derogatory remark in the financial sector often used to refer to poor investment choices

2) Acquisition Indigestion A slang term describing an acquisition or merger in which the

companies involved have trouble integrating with one another Acquisition indigestion may also

describe a situation in which the purchasing company has difficulty making the most of a

takeover

3) Angelina Jolie Stock Index An index made up of a selection of stocks from companies associated

with actress Angela Jolie

4) Bandwagon Effect A psychological phenomenon whereby people do something primarily

because other people are doing it regardless of their own beliefs which they may ignore or over-

ride The bandwagon effect has wide implications but is commonly seen in politics and consumer

behavior

5) Groupon A special type of coupon website that is offers group deals to a group of consumers

Groupons attempt to tap into the power of collective purchasing by offering a substantial discount

such as half off to a group of people if they will buy a particular product or service

6) In The Penalty Box When a companys stock price is in the doldrums and has yet to rebound

because of poor earnings government regulation or another reason

7) Index Hugger A managed mutual fund that tends to perform much like a benchmark index such

as the SampP 500 which gives it the reputation of being a closet index fund The majority of active-

ly managed funds are expected to outperform the so-called average performance produced by

passively managed index funds Also known as a closet tracker or pseudo tracker

BY

CHANDANA D

II MBA C

FINANCE BUZZ

13

PHOTO FIND The given below are the celebrities in the corporate world Find out

who they are

1) _______________________ 2) _____________________

3)_______________________ 4) _____________________

5) _____________________

14

1) Market regulator SEBI passed a consent order against which merchant bankers for fail-

ing to exercise due diligence while conducting its business

2) What is Indiarsquos rank in Global Peace Index 2011 (GPI 2011) out of 153 countries

3) Central Govt Increased interest rate for post office deposit what is current interest

rate

4) Private power producers moved Central Electricity Regulatory Commission (CERC)

against which company accusing it of going on a power purchase agreement (PPA)-

signing spree to escape regulatory oversight in selling its costlier power

5) What is introduced by centre on July an ambitious project will facilitate robust

information sharing among law enforcement agencies such as CBI RAW IB etc

6) According to planning commission Deputy Chairman Rangarajan report released in

July what is expected GDP for this year-end

7) World Investment Report 2011 was released by UNCTAD on 26 July 2011 According to

the report what is Indiarsquos position among the top 20 FDI recipients

8) The Central Department of Telecommunications (DoT) on 22 July 2011 approved

Rs 30000-crore National Optical Fibre Network (NOFN) for broadband connectivity to

2500 Panchayats in India How will be the project funded

9) The Union government on 9 August permitted a new category of QFIs to invest up to

what sum of money in equity and debt schemes of mutual funds (MFs)

10) Fixed exchange rate is also known as __________rate

11) Cabinet Committee on Economic Affairs (CCEA) on 5 August 2011 approved which

PSUrsquos proposal for revival of the Sindri unit of Fertiliser Corporation of India at an in-

vestment of nearly Rs 35000 crore

12) According to government data released on 8 August 2011 Foreign Direct Investment

into India grew by what per cent to 565 billion US dollar in June 2011

FINANCE QUIZ

By

SHILPI KUMARI

II MBA B

15

CROSS WORD

3 A member of a stock exchange who was lsquohammeredrsquo and expelled from the membership for being

unable to meet financial or contractual obligation

4 The behaviour of a company that chooses to focus only on high-end high-margin products even if

customers show an inclination towards value-oriented products

9 Who was the chairman of Union Carbide when Bhopal tragedy occurred on 3 December 1984

10 Goods that are perceived to be exclusive as long as prices remain high or increase

1 The bank which has joined the United Stock Exhange shareholder base by acquiring a 133 percent

stake 2 What term became popular after the newspaper report of Watergate Scandal in the year 1973 5 The state leading in the implementation of projects related to the Delhi-Mumbai Industrial Corridor 6 A bond denominated in Canadian dollars that is sold in Canada by foreign financial institutions and

companies 7 Temporary reduction in the selling price of an item to stimulate demand or to drive a competitor

out of the market 8 An increase in price and trading volume in a particular sector of the economy that occurs as a result

of a recent takeover which initiates a change in sentiment towards the sector

BY SKANDAN YN

II MBA A

Across

Down

16

Q1)

As per the survey

Out of 104 respondents 80 (769) have an opinion that other banks will follow the suit But

18 (173) disagree with the statement whereas 6 (57)people are not sure about it

Best Response

Following suit many PSU banks have come out with offers where they are offering low attrac-

tive fixed rates for the first 3-5 years (8-85) with rates reverting to the standard floating rate

after that period is over These kind of loans are popularly referred to as Teaser loans where

rate in the initial years is fixed as well as low Private players HDFC and ICICI have recently

joined the bandwagon They announced a similar teaser loan product early December 2009

Thus presenting clearly a good option for the consumers who want to stay away from tracking

home loan rates at least for a certain period of time

NISHKA CAMPUS POLL

17

Q2)

As per the survey-

Out of 104 respondents 10 (96) have an opinion that Anna is meddling with the parlia-

mentary system But 86 (827) say that he is fighting for our birthright ie democracy

whereas 10 (77) people are not sure about it

Best Response

The war against corruption led by Anna Hazare is giving Prime Minister Manmohan

Singh and his counsels sleepless nights Their retort is that Hazare wants to kill the Indian

democracy

BY

NEIZELM SOUZA

II MBA A

18

VERIFY YOURSELF

Photo Find

1Deven Sharma President of SampP (resigning on 12 th Sep)

2Nandan M Nilekani Chairman of UIDAI

3Subir Gokarn Deputy Governor of RBI

4Tim Cook CEO Apple Inc

5SD Shibulal CEO Infosys

ANSWERS FOR FINANCE QUIZZ

1 Edelweiss Capital

2 135

3 4

4 NTPC

5 NATGRID (NOTIONAL GRID)

6 82

7 14th

8 Universal Service Obligation [USO] Fund

9 $13 billion

10 Pegged exchange

11 SAIL

12 310

ldquoLiterature

was formerly

an art and

finance a

trade today it

is the reverserdquo

11

Without a disciplined pattern of spending it is virtually impossible to make much headway

in reducing debt A personal budget will provide the necessary framework to begin eliminating

these inflated account balances If executed properly a budget will allow a person to

simultaneously meet their expenses place money into savings and pay back outstanding debts

Therefore it is best interest to create and implement a budget

Cut Back on Spending

At first it may seem difficult to limit spending and stick to a budget however there are a

few practical changes that you can make every day that will cut your spending more than you

expect Firstly alter credit car behaviour Start to pay cash whenever possible This will help you

avoid making a purchase unless you actually have the money available If you decide to make a

credit card purchase be prepared to pay the balance off monthly This will save a lot of money

through avoiding interest charges If you already have a credit card balance then transfer to a

card with a low interest rate Also find a card that does not charge an annual fee Another tip is

to pack your lunch every day All of those lunch hours spent at restaurants will add up Bringing

your own lunch can save you several dollars every day which will add up over time

Start Saving So you are loaded down with bills to pay each month and are wondering how you

can begin a savings account for emergencies and other high-expense endeavors In other words

where can you find that extra cash to put away for later Firstly when configuring

your budge plan for your savings first You will grow richer each month if you begin to pay your-

self first Before paying any bills decide on a set amount that you will pay yourself first or maybe

five or ten percent or whatever you decide of your pay check Then deposit the amount into a

savings account before paying any bills When you do this at the beginning of the month your

entire pay check will not suddenly slip through your fingers Once a person makes a budget they

often fail to adjust it when necessary A budget is created using a set of expenses and income fig-

ures that are liable to change As these figures do change it is important that the budget changes

to reflect the adjustments There could be some major deficits if this is not done appropriate-

ly and promptly Of course nobody forgets about Christmas or Hanukkah

However many people do not consider budgeting for holidays when creating a budget

Therefore adequate funds have not been set aside for presents food parties etc are double or

triple what you would normally pay With a little planning you will be on your way to saving

more money than you ever thought possible

BY

MAYANK PRASSANNO

I MBA B

12

1) Aunt Millie A slang term for an uneducated or unsophisticated investor The term is considered a

derogatory remark in the financial sector often used to refer to poor investment choices

2) Acquisition Indigestion A slang term describing an acquisition or merger in which the

companies involved have trouble integrating with one another Acquisition indigestion may also

describe a situation in which the purchasing company has difficulty making the most of a

takeover

3) Angelina Jolie Stock Index An index made up of a selection of stocks from companies associated

with actress Angela Jolie

4) Bandwagon Effect A psychological phenomenon whereby people do something primarily

because other people are doing it regardless of their own beliefs which they may ignore or over-

ride The bandwagon effect has wide implications but is commonly seen in politics and consumer

behavior

5) Groupon A special type of coupon website that is offers group deals to a group of consumers

Groupons attempt to tap into the power of collective purchasing by offering a substantial discount

such as half off to a group of people if they will buy a particular product or service

6) In The Penalty Box When a companys stock price is in the doldrums and has yet to rebound

because of poor earnings government regulation or another reason

7) Index Hugger A managed mutual fund that tends to perform much like a benchmark index such

as the SampP 500 which gives it the reputation of being a closet index fund The majority of active-

ly managed funds are expected to outperform the so-called average performance produced by

passively managed index funds Also known as a closet tracker or pseudo tracker

BY

CHANDANA D

II MBA C

FINANCE BUZZ

13

PHOTO FIND The given below are the celebrities in the corporate world Find out

who they are

1) _______________________ 2) _____________________

3)_______________________ 4) _____________________

5) _____________________

14

1) Market regulator SEBI passed a consent order against which merchant bankers for fail-

ing to exercise due diligence while conducting its business

2) What is Indiarsquos rank in Global Peace Index 2011 (GPI 2011) out of 153 countries

3) Central Govt Increased interest rate for post office deposit what is current interest

rate

4) Private power producers moved Central Electricity Regulatory Commission (CERC)

against which company accusing it of going on a power purchase agreement (PPA)-

signing spree to escape regulatory oversight in selling its costlier power

5) What is introduced by centre on July an ambitious project will facilitate robust

information sharing among law enforcement agencies such as CBI RAW IB etc

6) According to planning commission Deputy Chairman Rangarajan report released in

July what is expected GDP for this year-end

7) World Investment Report 2011 was released by UNCTAD on 26 July 2011 According to

the report what is Indiarsquos position among the top 20 FDI recipients

8) The Central Department of Telecommunications (DoT) on 22 July 2011 approved

Rs 30000-crore National Optical Fibre Network (NOFN) for broadband connectivity to

2500 Panchayats in India How will be the project funded

9) The Union government on 9 August permitted a new category of QFIs to invest up to

what sum of money in equity and debt schemes of mutual funds (MFs)

10) Fixed exchange rate is also known as __________rate

11) Cabinet Committee on Economic Affairs (CCEA) on 5 August 2011 approved which

PSUrsquos proposal for revival of the Sindri unit of Fertiliser Corporation of India at an in-

vestment of nearly Rs 35000 crore

12) According to government data released on 8 August 2011 Foreign Direct Investment

into India grew by what per cent to 565 billion US dollar in June 2011

FINANCE QUIZ

By

SHILPI KUMARI

II MBA B

15

CROSS WORD

3 A member of a stock exchange who was lsquohammeredrsquo and expelled from the membership for being

unable to meet financial or contractual obligation

4 The behaviour of a company that chooses to focus only on high-end high-margin products even if

customers show an inclination towards value-oriented products

9 Who was the chairman of Union Carbide when Bhopal tragedy occurred on 3 December 1984

10 Goods that are perceived to be exclusive as long as prices remain high or increase

1 The bank which has joined the United Stock Exhange shareholder base by acquiring a 133 percent

stake 2 What term became popular after the newspaper report of Watergate Scandal in the year 1973 5 The state leading in the implementation of projects related to the Delhi-Mumbai Industrial Corridor 6 A bond denominated in Canadian dollars that is sold in Canada by foreign financial institutions and

companies 7 Temporary reduction in the selling price of an item to stimulate demand or to drive a competitor

out of the market 8 An increase in price and trading volume in a particular sector of the economy that occurs as a result

of a recent takeover which initiates a change in sentiment towards the sector

BY SKANDAN YN

II MBA A

Across

Down

16

Q1)

As per the survey

Out of 104 respondents 80 (769) have an opinion that other banks will follow the suit But

18 (173) disagree with the statement whereas 6 (57)people are not sure about it

Best Response

Following suit many PSU banks have come out with offers where they are offering low attrac-

tive fixed rates for the first 3-5 years (8-85) with rates reverting to the standard floating rate

after that period is over These kind of loans are popularly referred to as Teaser loans where

rate in the initial years is fixed as well as low Private players HDFC and ICICI have recently

joined the bandwagon They announced a similar teaser loan product early December 2009

Thus presenting clearly a good option for the consumers who want to stay away from tracking

home loan rates at least for a certain period of time

NISHKA CAMPUS POLL

17

Q2)

As per the survey-

Out of 104 respondents 10 (96) have an opinion that Anna is meddling with the parlia-

mentary system But 86 (827) say that he is fighting for our birthright ie democracy

whereas 10 (77) people are not sure about it

Best Response

The war against corruption led by Anna Hazare is giving Prime Minister Manmohan

Singh and his counsels sleepless nights Their retort is that Hazare wants to kill the Indian

democracy

BY

NEIZELM SOUZA

II MBA A

18

VERIFY YOURSELF

Photo Find

1Deven Sharma President of SampP (resigning on 12 th Sep)

2Nandan M Nilekani Chairman of UIDAI

3Subir Gokarn Deputy Governor of RBI

4Tim Cook CEO Apple Inc

5SD Shibulal CEO Infosys

ANSWERS FOR FINANCE QUIZZ

1 Edelweiss Capital

2 135

3 4

4 NTPC

5 NATGRID (NOTIONAL GRID)

6 82

7 14th

8 Universal Service Obligation [USO] Fund

9 $13 billion

10 Pegged exchange

11 SAIL

12 310

ldquoLiterature

was formerly

an art and

finance a

trade today it

is the reverserdquo

12

1) Aunt Millie A slang term for an uneducated or unsophisticated investor The term is considered a

derogatory remark in the financial sector often used to refer to poor investment choices

2) Acquisition Indigestion A slang term describing an acquisition or merger in which the

companies involved have trouble integrating with one another Acquisition indigestion may also

describe a situation in which the purchasing company has difficulty making the most of a

takeover

3) Angelina Jolie Stock Index An index made up of a selection of stocks from companies associated

with actress Angela Jolie

4) Bandwagon Effect A psychological phenomenon whereby people do something primarily

because other people are doing it regardless of their own beliefs which they may ignore or over-

ride The bandwagon effect has wide implications but is commonly seen in politics and consumer

behavior

5) Groupon A special type of coupon website that is offers group deals to a group of consumers

Groupons attempt to tap into the power of collective purchasing by offering a substantial discount

such as half off to a group of people if they will buy a particular product or service

6) In The Penalty Box When a companys stock price is in the doldrums and has yet to rebound

because of poor earnings government regulation or another reason

7) Index Hugger A managed mutual fund that tends to perform much like a benchmark index such

as the SampP 500 which gives it the reputation of being a closet index fund The majority of active-

ly managed funds are expected to outperform the so-called average performance produced by

passively managed index funds Also known as a closet tracker or pseudo tracker

BY

CHANDANA D

II MBA C

FINANCE BUZZ

13

PHOTO FIND The given below are the celebrities in the corporate world Find out

who they are

1) _______________________ 2) _____________________

3)_______________________ 4) _____________________

5) _____________________

14

1) Market regulator SEBI passed a consent order against which merchant bankers for fail-

ing to exercise due diligence while conducting its business

2) What is Indiarsquos rank in Global Peace Index 2011 (GPI 2011) out of 153 countries

3) Central Govt Increased interest rate for post office deposit what is current interest

rate

4) Private power producers moved Central Electricity Regulatory Commission (CERC)

against which company accusing it of going on a power purchase agreement (PPA)-

signing spree to escape regulatory oversight in selling its costlier power

5) What is introduced by centre on July an ambitious project will facilitate robust

information sharing among law enforcement agencies such as CBI RAW IB etc

6) According to planning commission Deputy Chairman Rangarajan report released in

July what is expected GDP for this year-end

7) World Investment Report 2011 was released by UNCTAD on 26 July 2011 According to

the report what is Indiarsquos position among the top 20 FDI recipients

8) The Central Department of Telecommunications (DoT) on 22 July 2011 approved

Rs 30000-crore National Optical Fibre Network (NOFN) for broadband connectivity to

2500 Panchayats in India How will be the project funded

9) The Union government on 9 August permitted a new category of QFIs to invest up to

what sum of money in equity and debt schemes of mutual funds (MFs)

10) Fixed exchange rate is also known as __________rate

11) Cabinet Committee on Economic Affairs (CCEA) on 5 August 2011 approved which

PSUrsquos proposal for revival of the Sindri unit of Fertiliser Corporation of India at an in-

vestment of nearly Rs 35000 crore

12) According to government data released on 8 August 2011 Foreign Direct Investment

into India grew by what per cent to 565 billion US dollar in June 2011

FINANCE QUIZ

By

SHILPI KUMARI

II MBA B

15

CROSS WORD

3 A member of a stock exchange who was lsquohammeredrsquo and expelled from the membership for being

unable to meet financial or contractual obligation

4 The behaviour of a company that chooses to focus only on high-end high-margin products even if

customers show an inclination towards value-oriented products

9 Who was the chairman of Union Carbide when Bhopal tragedy occurred on 3 December 1984

10 Goods that are perceived to be exclusive as long as prices remain high or increase

1 The bank which has joined the United Stock Exhange shareholder base by acquiring a 133 percent

stake 2 What term became popular after the newspaper report of Watergate Scandal in the year 1973 5 The state leading in the implementation of projects related to the Delhi-Mumbai Industrial Corridor 6 A bond denominated in Canadian dollars that is sold in Canada by foreign financial institutions and

companies 7 Temporary reduction in the selling price of an item to stimulate demand or to drive a competitor

out of the market 8 An increase in price and trading volume in a particular sector of the economy that occurs as a result

of a recent takeover which initiates a change in sentiment towards the sector

BY SKANDAN YN

II MBA A

Across

Down

16

Q1)

As per the survey

Out of 104 respondents 80 (769) have an opinion that other banks will follow the suit But

18 (173) disagree with the statement whereas 6 (57)people are not sure about it

Best Response

Following suit many PSU banks have come out with offers where they are offering low attrac-

tive fixed rates for the first 3-5 years (8-85) with rates reverting to the standard floating rate

after that period is over These kind of loans are popularly referred to as Teaser loans where

rate in the initial years is fixed as well as low Private players HDFC and ICICI have recently

joined the bandwagon They announced a similar teaser loan product early December 2009

Thus presenting clearly a good option for the consumers who want to stay away from tracking

home loan rates at least for a certain period of time

NISHKA CAMPUS POLL

17

Q2)

As per the survey-

Out of 104 respondents 10 (96) have an opinion that Anna is meddling with the parlia-

mentary system But 86 (827) say that he is fighting for our birthright ie democracy

whereas 10 (77) people are not sure about it

Best Response

The war against corruption led by Anna Hazare is giving Prime Minister Manmohan

Singh and his counsels sleepless nights Their retort is that Hazare wants to kill the Indian

democracy

BY

NEIZELM SOUZA

II MBA A

18

VERIFY YOURSELF

Photo Find

1Deven Sharma President of SampP (resigning on 12 th Sep)

2Nandan M Nilekani Chairman of UIDAI

3Subir Gokarn Deputy Governor of RBI

4Tim Cook CEO Apple Inc

5SD Shibulal CEO Infosys

ANSWERS FOR FINANCE QUIZZ

1 Edelweiss Capital

2 135

3 4

4 NTPC

5 NATGRID (NOTIONAL GRID)

6 82

7 14th

8 Universal Service Obligation [USO] Fund

9 $13 billion

10 Pegged exchange

11 SAIL

12 310

ldquoLiterature

was formerly

an art and

finance a

trade today it

is the reverserdquo

13

PHOTO FIND The given below are the celebrities in the corporate world Find out

who they are

1) _______________________ 2) _____________________

3)_______________________ 4) _____________________

5) _____________________

14

1) Market regulator SEBI passed a consent order against which merchant bankers for fail-

ing to exercise due diligence while conducting its business

2) What is Indiarsquos rank in Global Peace Index 2011 (GPI 2011) out of 153 countries

3) Central Govt Increased interest rate for post office deposit what is current interest

rate

4) Private power producers moved Central Electricity Regulatory Commission (CERC)

against which company accusing it of going on a power purchase agreement (PPA)-

signing spree to escape regulatory oversight in selling its costlier power

5) What is introduced by centre on July an ambitious project will facilitate robust

information sharing among law enforcement agencies such as CBI RAW IB etc

6) According to planning commission Deputy Chairman Rangarajan report released in

July what is expected GDP for this year-end

7) World Investment Report 2011 was released by UNCTAD on 26 July 2011 According to

the report what is Indiarsquos position among the top 20 FDI recipients

8) The Central Department of Telecommunications (DoT) on 22 July 2011 approved

Rs 30000-crore National Optical Fibre Network (NOFN) for broadband connectivity to

2500 Panchayats in India How will be the project funded

9) The Union government on 9 August permitted a new category of QFIs to invest up to

what sum of money in equity and debt schemes of mutual funds (MFs)

10) Fixed exchange rate is also known as __________rate

11) Cabinet Committee on Economic Affairs (CCEA) on 5 August 2011 approved which

PSUrsquos proposal for revival of the Sindri unit of Fertiliser Corporation of India at an in-

vestment of nearly Rs 35000 crore

12) According to government data released on 8 August 2011 Foreign Direct Investment

into India grew by what per cent to 565 billion US dollar in June 2011

FINANCE QUIZ

By

SHILPI KUMARI

II MBA B

15

CROSS WORD

3 A member of a stock exchange who was lsquohammeredrsquo and expelled from the membership for being

unable to meet financial or contractual obligation

4 The behaviour of a company that chooses to focus only on high-end high-margin products even if

customers show an inclination towards value-oriented products

9 Who was the chairman of Union Carbide when Bhopal tragedy occurred on 3 December 1984

10 Goods that are perceived to be exclusive as long as prices remain high or increase

1 The bank which has joined the United Stock Exhange shareholder base by acquiring a 133 percent

stake 2 What term became popular after the newspaper report of Watergate Scandal in the year 1973 5 The state leading in the implementation of projects related to the Delhi-Mumbai Industrial Corridor 6 A bond denominated in Canadian dollars that is sold in Canada by foreign financial institutions and

companies 7 Temporary reduction in the selling price of an item to stimulate demand or to drive a competitor

out of the market 8 An increase in price and trading volume in a particular sector of the economy that occurs as a result

of a recent takeover which initiates a change in sentiment towards the sector

BY SKANDAN YN

II MBA A

Across

Down

16

Q1)

As per the survey

Out of 104 respondents 80 (769) have an opinion that other banks will follow the suit But

18 (173) disagree with the statement whereas 6 (57)people are not sure about it

Best Response

Following suit many PSU banks have come out with offers where they are offering low attrac-

tive fixed rates for the first 3-5 years (8-85) with rates reverting to the standard floating rate

after that period is over These kind of loans are popularly referred to as Teaser loans where

rate in the initial years is fixed as well as low Private players HDFC and ICICI have recently

joined the bandwagon They announced a similar teaser loan product early December 2009

Thus presenting clearly a good option for the consumers who want to stay away from tracking

home loan rates at least for a certain period of time

NISHKA CAMPUS POLL

17

Q2)

As per the survey-

Out of 104 respondents 10 (96) have an opinion that Anna is meddling with the parlia-

mentary system But 86 (827) say that he is fighting for our birthright ie democracy

whereas 10 (77) people are not sure about it

Best Response

The war against corruption led by Anna Hazare is giving Prime Minister Manmohan

Singh and his counsels sleepless nights Their retort is that Hazare wants to kill the Indian

democracy

BY

NEIZELM SOUZA

II MBA A

18

VERIFY YOURSELF

Photo Find

1Deven Sharma President of SampP (resigning on 12 th Sep)

2Nandan M Nilekani Chairman of UIDAI

3Subir Gokarn Deputy Governor of RBI

4Tim Cook CEO Apple Inc

5SD Shibulal CEO Infosys

ANSWERS FOR FINANCE QUIZZ

1 Edelweiss Capital

2 135

3 4

4 NTPC

5 NATGRID (NOTIONAL GRID)

6 82

7 14th

8 Universal Service Obligation [USO] Fund

9 $13 billion

10 Pegged exchange

11 SAIL

12 310

ldquoLiterature

was formerly

an art and

finance a

trade today it

is the reverserdquo

14

1) Market regulator SEBI passed a consent order against which merchant bankers for fail-

ing to exercise due diligence while conducting its business

2) What is Indiarsquos rank in Global Peace Index 2011 (GPI 2011) out of 153 countries

3) Central Govt Increased interest rate for post office deposit what is current interest

rate

4) Private power producers moved Central Electricity Regulatory Commission (CERC)

against which company accusing it of going on a power purchase agreement (PPA)-

signing spree to escape regulatory oversight in selling its costlier power

5) What is introduced by centre on July an ambitious project will facilitate robust

information sharing among law enforcement agencies such as CBI RAW IB etc

6) According to planning commission Deputy Chairman Rangarajan report released in

July what is expected GDP for this year-end

7) World Investment Report 2011 was released by UNCTAD on 26 July 2011 According to

the report what is Indiarsquos position among the top 20 FDI recipients

8) The Central Department of Telecommunications (DoT) on 22 July 2011 approved

Rs 30000-crore National Optical Fibre Network (NOFN) for broadband connectivity to

2500 Panchayats in India How will be the project funded

9) The Union government on 9 August permitted a new category of QFIs to invest up to

what sum of money in equity and debt schemes of mutual funds (MFs)

10) Fixed exchange rate is also known as __________rate

11) Cabinet Committee on Economic Affairs (CCEA) on 5 August 2011 approved which

PSUrsquos proposal for revival of the Sindri unit of Fertiliser Corporation of India at an in-

vestment of nearly Rs 35000 crore

12) According to government data released on 8 August 2011 Foreign Direct Investment

into India grew by what per cent to 565 billion US dollar in June 2011

FINANCE QUIZ

By

SHILPI KUMARI

II MBA B

15

CROSS WORD

3 A member of a stock exchange who was lsquohammeredrsquo and expelled from the membership for being

unable to meet financial or contractual obligation

4 The behaviour of a company that chooses to focus only on high-end high-margin products even if

customers show an inclination towards value-oriented products

9 Who was the chairman of Union Carbide when Bhopal tragedy occurred on 3 December 1984

10 Goods that are perceived to be exclusive as long as prices remain high or increase

1 The bank which has joined the United Stock Exhange shareholder base by acquiring a 133 percent

stake 2 What term became popular after the newspaper report of Watergate Scandal in the year 1973 5 The state leading in the implementation of projects related to the Delhi-Mumbai Industrial Corridor 6 A bond denominated in Canadian dollars that is sold in Canada by foreign financial institutions and

companies 7 Temporary reduction in the selling price of an item to stimulate demand or to drive a competitor

out of the market 8 An increase in price and trading volume in a particular sector of the economy that occurs as a result

of a recent takeover which initiates a change in sentiment towards the sector

BY SKANDAN YN

II MBA A

Across

Down

16

Q1)

As per the survey

Out of 104 respondents 80 (769) have an opinion that other banks will follow the suit But

18 (173) disagree with the statement whereas 6 (57)people are not sure about it

Best Response

Following suit many PSU banks have come out with offers where they are offering low attrac-

tive fixed rates for the first 3-5 years (8-85) with rates reverting to the standard floating rate

after that period is over These kind of loans are popularly referred to as Teaser loans where

rate in the initial years is fixed as well as low Private players HDFC and ICICI have recently

joined the bandwagon They announced a similar teaser loan product early December 2009

Thus presenting clearly a good option for the consumers who want to stay away from tracking

home loan rates at least for a certain period of time

NISHKA CAMPUS POLL

17

Q2)

As per the survey-

Out of 104 respondents 10 (96) have an opinion that Anna is meddling with the parlia-

mentary system But 86 (827) say that he is fighting for our birthright ie democracy

whereas 10 (77) people are not sure about it

Best Response

The war against corruption led by Anna Hazare is giving Prime Minister Manmohan

Singh and his counsels sleepless nights Their retort is that Hazare wants to kill the Indian

democracy

BY

NEIZELM SOUZA

II MBA A

18

VERIFY YOURSELF

Photo Find

1Deven Sharma President of SampP (resigning on 12 th Sep)

2Nandan M Nilekani Chairman of UIDAI

3Subir Gokarn Deputy Governor of RBI

4Tim Cook CEO Apple Inc

5SD Shibulal CEO Infosys

ANSWERS FOR FINANCE QUIZZ

1 Edelweiss Capital

2 135

3 4

4 NTPC

5 NATGRID (NOTIONAL GRID)

6 82

7 14th

8 Universal Service Obligation [USO] Fund

9 $13 billion

10 Pegged exchange

11 SAIL

12 310

ldquoLiterature

was formerly

an art and

finance a

trade today it

is the reverserdquo

15

CROSS WORD

3 A member of a stock exchange who was lsquohammeredrsquo and expelled from the membership for being

unable to meet financial or contractual obligation

4 The behaviour of a company that chooses to focus only on high-end high-margin products even if

customers show an inclination towards value-oriented products

9 Who was the chairman of Union Carbide when Bhopal tragedy occurred on 3 December 1984

10 Goods that are perceived to be exclusive as long as prices remain high or increase

1 The bank which has joined the United Stock Exhange shareholder base by acquiring a 133 percent

stake 2 What term became popular after the newspaper report of Watergate Scandal in the year 1973 5 The state leading in the implementation of projects related to the Delhi-Mumbai Industrial Corridor 6 A bond denominated in Canadian dollars that is sold in Canada by foreign financial institutions and

companies 7 Temporary reduction in the selling price of an item to stimulate demand or to drive a competitor

out of the market 8 An increase in price and trading volume in a particular sector of the economy that occurs as a result

of a recent takeover which initiates a change in sentiment towards the sector

BY SKANDAN YN

II MBA A

Across

Down

16

Q1)

As per the survey

Out of 104 respondents 80 (769) have an opinion that other banks will follow the suit But

18 (173) disagree with the statement whereas 6 (57)people are not sure about it

Best Response

Following suit many PSU banks have come out with offers where they are offering low attrac-

tive fixed rates for the first 3-5 years (8-85) with rates reverting to the standard floating rate

after that period is over These kind of loans are popularly referred to as Teaser loans where

rate in the initial years is fixed as well as low Private players HDFC and ICICI have recently

joined the bandwagon They announced a similar teaser loan product early December 2009

Thus presenting clearly a good option for the consumers who want to stay away from tracking

home loan rates at least for a certain period of time

NISHKA CAMPUS POLL

17

Q2)

As per the survey-

Out of 104 respondents 10 (96) have an opinion that Anna is meddling with the parlia-

mentary system But 86 (827) say that he is fighting for our birthright ie democracy

whereas 10 (77) people are not sure about it

Best Response

The war against corruption led by Anna Hazare is giving Prime Minister Manmohan

Singh and his counsels sleepless nights Their retort is that Hazare wants to kill the Indian

democracy

BY

NEIZELM SOUZA

II MBA A

18

VERIFY YOURSELF

Photo Find

1Deven Sharma President of SampP (resigning on 12 th Sep)

2Nandan M Nilekani Chairman of UIDAI

3Subir Gokarn Deputy Governor of RBI

4Tim Cook CEO Apple Inc

5SD Shibulal CEO Infosys

ANSWERS FOR FINANCE QUIZZ

1 Edelweiss Capital

2 135

3 4

4 NTPC

5 NATGRID (NOTIONAL GRID)

6 82

7 14th

8 Universal Service Obligation [USO] Fund

9 $13 billion

10 Pegged exchange

11 SAIL

12 310

ldquoLiterature

was formerly

an art and

finance a

trade today it

is the reverserdquo

16

Q1)

As per the survey

Out of 104 respondents 80 (769) have an opinion that other banks will follow the suit But

18 (173) disagree with the statement whereas 6 (57)people are not sure about it

Best Response

Following suit many PSU banks have come out with offers where they are offering low attrac-

tive fixed rates for the first 3-5 years (8-85) with rates reverting to the standard floating rate

after that period is over These kind of loans are popularly referred to as Teaser loans where

rate in the initial years is fixed as well as low Private players HDFC and ICICI have recently

joined the bandwagon They announced a similar teaser loan product early December 2009

Thus presenting clearly a good option for the consumers who want to stay away from tracking

home loan rates at least for a certain period of time

NISHKA CAMPUS POLL

17

Q2)

As per the survey-

Out of 104 respondents 10 (96) have an opinion that Anna is meddling with the parlia-

mentary system But 86 (827) say that he is fighting for our birthright ie democracy

whereas 10 (77) people are not sure about it

Best Response

The war against corruption led by Anna Hazare is giving Prime Minister Manmohan

Singh and his counsels sleepless nights Their retort is that Hazare wants to kill the Indian

democracy

BY

NEIZELM SOUZA

II MBA A

18

VERIFY YOURSELF

Photo Find

1Deven Sharma President of SampP (resigning on 12 th Sep)

2Nandan M Nilekani Chairman of UIDAI

3Subir Gokarn Deputy Governor of RBI

4Tim Cook CEO Apple Inc

5SD Shibulal CEO Infosys

ANSWERS FOR FINANCE QUIZZ

1 Edelweiss Capital

2 135

3 4

4 NTPC

5 NATGRID (NOTIONAL GRID)

6 82

7 14th

8 Universal Service Obligation [USO] Fund

9 $13 billion

10 Pegged exchange

11 SAIL

12 310

ldquoLiterature

was formerly

an art and

finance a

trade today it

is the reverserdquo

17

Q2)

As per the survey-

Out of 104 respondents 10 (96) have an opinion that Anna is meddling with the parlia-

mentary system But 86 (827) say that he is fighting for our birthright ie democracy

whereas 10 (77) people are not sure about it

Best Response

The war against corruption led by Anna Hazare is giving Prime Minister Manmohan

Singh and his counsels sleepless nights Their retort is that Hazare wants to kill the Indian

democracy

BY

NEIZELM SOUZA

II MBA A

18

VERIFY YOURSELF

Photo Find

1Deven Sharma President of SampP (resigning on 12 th Sep)

2Nandan M Nilekani Chairman of UIDAI

3Subir Gokarn Deputy Governor of RBI

4Tim Cook CEO Apple Inc

5SD Shibulal CEO Infosys

ANSWERS FOR FINANCE QUIZZ

1 Edelweiss Capital

2 135

3 4

4 NTPC

5 NATGRID (NOTIONAL GRID)

6 82

7 14th

8 Universal Service Obligation [USO] Fund

9 $13 billion

10 Pegged exchange

11 SAIL

12 310

ldquoLiterature

was formerly

an art and

finance a

trade today it

is the reverserdquo

18

VERIFY YOURSELF

Photo Find

1Deven Sharma President of SampP (resigning on 12 th Sep)

2Nandan M Nilekani Chairman of UIDAI

3Subir Gokarn Deputy Governor of RBI

4Tim Cook CEO Apple Inc

5SD Shibulal CEO Infosys

ANSWERS FOR FINANCE QUIZZ

1 Edelweiss Capital

2 135

3 4

4 NTPC

5 NATGRID (NOTIONAL GRID)

6 82

7 14th

8 Universal Service Obligation [USO] Fund

9 $13 billion

10 Pegged exchange

11 SAIL

12 310

ldquoLiterature

was formerly

an art and

finance a

trade today it

is the reverserdquo

19

CROSS WORD

3 LAMEDUCKmdashA member of a stock exchange who was lsquohammeredrsquo and expelled from

the membership for being unable to meet financial or contractual obligation 4 MARGINCREEPmdashThe behaviour of a company that chooses to focus only on

high-end high-margin products even if customers show an inclination towards value-oriented products

9 WARRENANDERSONmdashWho was the chairman of Union Carbide when Bhopal tragedy occurred on 3 December 1984

10 VEBLENGOODmdashGoods that are perceived to be exclusive as long as prices remain high or increase

1 ICICIBANKmdashThe bank which has joined the United Stock Exhange shareholder base by

acquiring a 133 percent stake 2 MONEYLAUNDERINGmdashWhat term became popular after the newspaper report of

Watergate Scandal in the year 1973 5 GUJRATmdashThe state leading in the implementation of projects related to the Delhi-

Mumbai Industrial Corridor 6 MAPLEBONDmdashA bond denominated in Canadian dollars that is sold in Canada by

foreign financial institutions and companies 7 MARKDOWNmdashTemporary reduction in the selling price of an item to stimulate demand

or to drive a competitor out of the market 8 GARBATRAGEmdashAn increase in price and trading volume in a particular sector of the

economy that occurs as a result of a recent takeover which initiates a change in sentiment towards the sector

Across

Down

ldquo Owning a home is a

keystone of wealth both

financial affluence and

emotional security ldquo

20

ABOUT ldquoNISHKArdquo

NISHKA is a monthly finance magazine brought by the students of the finance club

of CHRIST UNIVERSITY Institute of Management Kengeri Campus The Idea behind

coining the issue of this magazine is to establish a learning among the students

which helps them to gain an insight about the world of finance

- TEAM NISHKA

FACULTY CO-ORDINATORS

Prof Anirban Ghatak

Dr Jeevananda CAMPUS POLL

CO-ORDINATORS Neizel M Souza

Flavia Deepika Tellis Praveen Kumar CH

Azhagumathivanan R

ARTICLES

EDITORS Anish Kumar Singh

Divyashree R Aarthi K

Madhav B Neha Singh

CREATIVE amp DESIGNING RETROSPECTION

Gowthaman N Manish Santani

ECONOMIC ROLLERS CROSS WORD

Prateek Lakhmani Skandan Y N

STOCK ANALYSIS QUIZ

Lalit Goel Shilipi Kumari

20

ABOUT ldquoNISHKArdquo

NISHKA is a monthly finance magazine brought by the students of the finance club

of CHRIST UNIVERSITY Institute of Management Kengeri Campus The Idea behind

coining the issue of this magazine is to establish a learning among the students

which helps them to gain an insight about the world of finance

- TEAM NISHKA

FACULTY CO-ORDINATORS

Prof Anirban Ghatak

Dr Jeevananda CAMPUS POLL

CO-ORDINATORS Neizel M Souza

Flavia Deepika Tellis Praveen Kumar CH

Azhagumathivanan R

ARTICLES

EDITORS Anish Kumar Singh

Divyashree R Aarthi K

Madhav B Neha Singh

CREATIVE amp DESIGNING RETROSPECTION

Gowthaman N Manish Santani

ECONOMIC ROLLERS CROSS WORD

Prateek Lakhmani Skandan Y N

STOCK ANALYSIS QUIZ

Lalit Goel Shilipi Kumari