The B.M. Munjal family has retained control over the Hero Group following the division of the $4.2 billion conglomerate. Various entities from the Hero Group were divided among B.M. Munjal's family and the families of his three brothers. Currency volatility may negatively impact the profit margins of Indian IT companies in the coming quarters due to uncertainties in the global economy. The Reserve Bank of India is considering changes to regulations for foreign banks that would require their branches in India to be incorporated as subsidiaries, increasing regulatory oversight. The changes would also distinguish foreign banks from Indian lenders that are majority foreign-owned but Indian-managed.

1. Weekly news endingWeekly news ending
23.10.1023.10.10

2. B M Munjal family retains rights toB M Munjal family retains rights to
Hero GroupHero Group
 The family led by B M Munjal and his sons, owners of theThe family led by B M Munjal and his sons, owners of the
Indian promoter's stake in Hero Honda, will be officiallyIndian promoter's stake in Hero Honda, will be officially
known as the Hero Group, following the division of the $4.2known as the Hero Group, following the division of the $4.2
billion group.billion group.
 According to sources, as part of a family settlement, theAccording to sources, as part of a family settlement, the
rights of the Hero Group went to the B M Munjal family.rights of the Hero Group went to the B M Munjal family.
However, existing businesses belonging to the families ofHowever, existing businesses belonging to the families of
his three brothers would be allowed to retain the Herohis three brothers would be allowed to retain the Hero
brand.brand.
 After the settlement, Hero Honda, Hero CorporateAfter the settlement, Hero Honda, Hero Corporate
Services , Rockman Cycles Industries , Hero MindmineServices , Rockman Cycles Industries , Hero Mindmine
Institute, Easy Bill and Hero Management Service haveInstitute, Easy Bill and Hero Management Service have
gone to family of B M Munjal.gone to family of B M Munjal.
 While other entities such as Hero Cycles, Hero Motors andWhile other entities such as Hero Cycles, Hero Motors and
Munjal Sales Corporation went to O P Munjal, the membersMunjal Sales Corporation went to O P Munjal, the members
of late Dayanand Munjal, represented by his son Vijayof late Dayanand Munjal, represented by his son Vijay
Munjal are now the owners of Hero Exports, Hero Electric,Munjal are now the owners of Hero Exports, Hero Electric,
Hero Cycles (Unit II) and Sunbeam Auto.Hero Cycles (Unit II) and Sunbeam Auto.

3. Currency volatility may hit IT cos'Currency volatility may hit IT cos'
profits in coming quartersprofits in coming quarters
 Currency fluctuations are likely to dent the profit margins ofCurrency fluctuations are likely to dent the profit margins of
Indian software exporters in the coming quarters, asIndian software exporters in the coming quarters, as
uncertainties persist in the global economy, say analysts.uncertainties persist in the global economy, say analysts.
 The country's top three IT players -- Tata ConsultancyThe country's top three IT players -- Tata Consultancy
Services , Infosys Technologies and Wipro -- were affectedServices , Infosys Technologies and Wipro -- were affected
by foreign exchange volatility in the September quarter thisby foreign exchange volatility in the September quarter this
fiscal and their profit margins took a hit.fiscal and their profit margins took a hit.
 During Q2 FY11, July-September period, the rupee gainedDuring Q2 FY11, July-September period, the rupee gained
over three per cent against the US dollar, to touch about Rsover three per cent against the US dollar, to touch about Rs
Rs 45. This year, the rupee has strengthened more thanRs 45. This year, the rupee has strengthened more than
five per cent against the greenback.five per cent against the greenback.

4.  Country's top software exporter TCS, recorded Rs 47-croreCountry's top software exporter TCS, recorded Rs 47-crore
foreign exchange loss in Q2.foreign exchange loss in Q2.
 Similarly, the country's third-largest software exporterSimilarly, the country's third-largest software exporter
Wipro incurred forex loss of Rs 41.4 crore during Q2 andWipro incurred forex loss of Rs 41.4 crore during Q2 and
raised concerns about the macro-economic environment.raised concerns about the macro-economic environment.
 Although Infosys did not report a forex loss in Q2, its ChiefAlthough Infosys did not report a forex loss in Q2, its Chief
Financial Officer V Balakrishnan cautioned that the risingFinancial Officer V Balakrishnan cautioned that the rising
rupee would "kill exporters" unless the Reserve Bank ofrupee would "kill exporters" unless the Reserve Bank of
India steps into the market.India steps into the market.

5. RBI mulls changes in regulations forRBI mulls changes in regulations for
foreign banksforeign banks
 The Reserve Bank is considering changes in the rulesThe Reserve Bank is considering changes in the rules
governing the overseas players' banking operations in thegoverning the overseas players' banking operations in the
country, a move aimed at in hands oversight of thecountry, a move aimed at in hands oversight of the
overseas banks and classified domestic lenders like ICICIoverseas banks and classified domestic lenders like ICICI
bank as Indian-managed despite majority foreign holding.bank as Indian-managed despite majority foreign holding.
 As per the new regulations being mulled over by it, theAs per the new regulations being mulled over by it, the
central bank might ask the foreign banks to incorporate allcentral bank might ask the foreign banks to incorporate all
their branches as their subsidiaries in India so that all oftheir branches as their subsidiaries in India so that all of
them are required to follow the rules governing capitalthem are required to follow the rules governing capital
adequacy ratio and sector-specific exposure limits and theadequacy ratio and sector-specific exposure limits and the
Reserve Bank can have a greater regulatory oversight,Reserve Bank can have a greater regulatory oversight,
sources said.sources said.
 Sources said that local incorporation of the foreign banks'Sources said that local incorporation of the foreign banks'
branches here would also help define them as Indianbranches here would also help define them as Indian
subsidiaries of foreign institutions or banks controlled andsubsidiaries of foreign institutions or banks controlled and
managed by overseas entities.managed by overseas entities.

6.  This would, in turn, help differentiate the Indian lendersThis would, in turn, help differentiate the Indian lenders
such as ICICI Bank and HDFC Bank, where the majoritysuch as ICICI Bank and HDFC Bank, where the majority
shareholders are overseas entities, from foreign banks.shareholders are overseas entities, from foreign banks.
The new regulations would describe these Indian lenders asThe new regulations would describe these Indian lenders as
'Indian-managed' banks, despite them being foreign-owned'Indian-managed' banks, despite them being foreign-owned
in terms of their shareholding patters.in terms of their shareholding patters.
 As per the new FDI norms announced by the governmentAs per the new FDI norms announced by the government
last year, ICICI Bank and HDFC Bank have been labelled aslast year, ICICI Bank and HDFC Bank have been labelled as
'foreign-owned' despite being controlled by Indians and'foreign-owned' despite being controlled by Indians and
having their roots in the country. This is because of morehaving their roots in the country. This is because of more
than 74 per cent equity in these banks being held bythan 74 per cent equity in these banks being held by
foreigners.foreigners.

7.  This would, in turn, help differentiate the Indian lendersThis would, in turn, help differentiate the Indian lenders
such as ICICI Bank and HDFC Bank, where the majoritysuch as ICICI Bank and HDFC Bank, where the majority
shareholders are overseas entities, from foreign banks.shareholders are overseas entities, from foreign banks.
The new regulations would describe these Indian lenders asThe new regulations would describe these Indian lenders as
'Indian-managed' banks, despite them being foreign-owned'Indian-managed' banks, despite them being foreign-owned
in terms of their shareholding patters.in terms of their shareholding patters.
 As per the new FDI norms announced by the governmentAs per the new FDI norms announced by the government
last year, ICICI Bank and HDFC Bank have been labelled aslast year, ICICI Bank and HDFC Bank have been labelled as
'foreign-owned' despite being controlled by Indians and'foreign-owned' despite being controlled by Indians and
having their roots in the country. This is because of morehaving their roots in the country. This is because of more
than 74 per cent equity in these banks being held bythan 74 per cent equity in these banks being held by
foreigners.foreigners.