Upload
fuser588
View
380
Download
6
Tags:
Embed Size (px)
DESCRIPTION
Citation preview
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
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
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
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
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
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
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
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
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
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
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
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
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
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
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
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
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
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
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
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
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
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
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
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
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
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
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
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
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
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
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
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
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
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
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
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
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
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
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
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
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
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