update yourself for weekly news..

1. WEEKLY NEWS
from 15th Nov. to 21st Nov.
By: Amandeep Sharma

2. RCOM set to raise $500m abroad
 Flag Telecom, a part of its international
network arm Reliance Globalcom, could
raise at least $500 million by selling bonds
to European investors, said a number of
investment banking sources.
 RCOM has appointed Deutsche Bank’s
investment banking arm to spearhead the
latest fund-raising effort. If successful, the
funds will be used to meet debt obligations,
including $200 million worth of convertible
bonds held by overseas investors, due May
2011

3.  The company has another $900 million of
foreign currency convertible bonds, or
FCCBs, maturing February 2012. The
company has a current net outstanding
debt—which rose over 700 crore between
July and September this year—exceeding
30,000 crore. Failed attempts to sell
assets
 The company reported a 40% plunge in
profits in the second quarter of this fiscal to
Rs 446 crore—its fifth-straight quarter of
profit fall.
 Reliance Communications acquired Flag
Telecom, the undersea cable business, in
2003 for about $207 million. After a recent

4. Dabur buys US hair care co for
$100 m
 (Pramugdha Mamgain NEW DELHI,
SECOND FOREIGN BUY IN 3 MTHS)
 DABUR India has bought US-based
haircare company Namaste Laboratories
and its three subsidiaries for $100 million (
446 crore) in an all-cash deal as Indian
consumer product companies continue their
global acquisition spree.
 Its second overseas acquisition in less
than three months will help Dabur enter the
fastgrowing $1.5-billion ethnic haircare
product market in Africa, besides serving as
a gateway to the US market for its
products.

5. Dabur India chairman Anand
Burman said as following:-
 “Namaste’s hair straightening lotions and
hair oils are hugely popular with African
Americans in the US and sell well in Africa
and Nigeria too,”
 “The acquisition of Hobi Kozmetick and
Namaste Laboratories along with our
existing businesses overseas will contribute
nearly 25% to Dabur’s consolidated
revenue in 2010-11,” Dabur India group
director PD Narang said. Dabur recorded a
revenue of Rs 3,400 crore in 2009-10 of
which 20% came from sales in international
markets.

6. CAG calls Raja’s bluff on 2G licence
allocation
 CAG says telecom ministry had 'flouted every
canon of financial propriety, rules and
procedures' .ARaja disregarded advice of PM,
who had stressed need for 'fair and transparent
allocation policy'
 He did not follow Trai recommendations, ignored
law ministry's advice & turned down finmin's
demand that EGoM decide spectrum price. He did
not take the approval of Telecom Commission Pan-
Indian licences were awarded at Rs 1,651 crore
each, a price fixed in 2001, causing a loss of 1.40
lakh crore to exchequer.
 Raja issued licences to ineligible applicants: 85 of
122 licences issued in 2008 were illegal as these
cos had disclosed incomplete information,

7. •Raja's ministry doled out additional
airwaves to existing telcos such as Bharti
Airtel, Vodafone Essar, BSNL, among
others, beyond what they were entitled to,
causing an additional loss of nearly Rs
37,000 crore to the exchequer
• DoT arbitrarily changed cut-off date for
mobile permits to Sept 25, 2007, resulting
in select Indian companies such as Swan,
Unitech, Loop, Datacom and Shyam getting
licences Losses pegged at Rs 1,76,645
crore•A Raja in 2G spectrum allocation scam. The Prime
Minister referred the first two complaints of Swamy for
examination to the concerned official within two days,
third complaint within four days, the fourth one in a day
from the date of its receiving, said PMO in its 11-page
affidavit filed by its director, V Vidyavati. According to the
PMO, it had received two more communications from

8. Axis wins Enam, buys its best for
2,067 cr
 Enam exits with handsome gains while deal
will pay off for Axis in long term given
strengths & profitability of investment
banking & institutional broking units Snaps
Up Investment Banking, Institutional &
Retail Broking Our Bureau MUMBAI
 Axis, led by CEO Shikha Sharma, a former
ICICI Bank director, will acquire Enam
Securities’ key businesses such as
investment banking, institutional and retail
broking, and distribution of financial
products in an allstock deal worth 2,067
crore.

9.  Enam is expected to have a profit after tax
of Rs 100 crore for the full year. So, 2,000-
odd crore for the full stake looks all right,”
For the seven months between April 1 and
October 20, the Enam arm recorded a pre-
tax profit of 77 crore against a turnover of
182 crore.
 “With Axis bank’s distribution platform of
almost 1,100 branches and Enam’s retail
network, the combined entity will have an
opportunity to build a dominant retail
franchise as well,”

10. The Bellwether Of Scams
 (Bells palsy:Trai annuls 62 licences for
rollout delays)
 The government to cancel 62 of the 122
licences issued by former telecom minister A
Raja under controversial circumstances in
2008 to new companies, including joint
ventures of international operators such as
Telenor ASA, Emirates Telecommunications
Corp and Sistema JSFC, because they had not
been able to launch services in time.
 Telecom Regulatory Authority of India—which
claims that its views were ignored by Mr Raja—
strengthen the possibility of several licences
issued in 2008 being revoked.
 CAG had slammed the telecom ministry for
not recovering Rs 679 crore as penalty.

11. “If there are some consequences on our licences, then
the Indian regulatory environment will be questioned by
all foreign investors. Because, here comes Telenor, a
well-known operator with a presence in Asia for 15 years,
and it would be very strange if the government were to
now set aside investments from our side after they have
already been made,” Telenor Group president & CEO
Jon Fredrik Baksaas had told ETlast week.

12.  Under new minister Kapil Sibal, decided to seek
legal opinion on the validity of the telecom
licences dished out by Mr Raja after the country’s
national auditor said 70% of these mobile permits
were obtained through fraudulent means, an
official aware of the development told ET.
 Comptroller and Auditor General of India, or
CAG, in its report on Tuesday said 85 of the 122
licences given to six companies, notably Uninor,
Videocon, Loop Telecom, S Tel, Etisalat and
Allianz Infratech, were illegal as these firms were
not eligible to obtain them.
 DoT can fine companies Rs 5 lakh a week per
circle for the first 13 weeks of delay. The fine
goes up to Rs 10 lakh each for the next 13
weeks, and to Rs 20 lakh for delays up to 26
weeks.

13. Mkts tank on political cloud,
China caution
 Rumours of PM’s resignation, 2G tangle and
China hiking reserve ratio precipitate slide
 “Sentiment turned nervous because of
fears about political instability in addition to
fears about the impact of events in China,”-
“Sentiment turned nervous because of fears
about political instability in addition to fears
about the impact of events in China,”
 China raises reserve bar for banks Li
Yanping BEIJING MONEY TALK: RESERVE
RATIO INCREASED TO 50 BPS TO TAME
INFLATION
 ‘Rate hike may prove insufficient’

14.  The 30-share Sensex dropped 345.20 points, or
1.7%, to 19,585.44. NSE’s 50-share Nifty shed
108.50 points, or 1.8%, to 5890.30. Losers
outnumbered gainers 2289: 695 on BSE. Foreign
investors bought Indian shares worth 367.91 crore on
Friday, extending their purchases to 1.30 lakh crore
($28 billion) so far this year. Both indices have fallen
6.7% in the last two weeks.

15. PREVENTIVE MEASURES:
•China aims to step up liquidity management and
“appropriately control” credit and loans