Wednesday, 27 November 2013

Govt to review FDI policy in pharma, housing tomorrow

The Department of Industrial Policy and Promotion (DIPP) is taking to the Cabinet on Thursday a proposal to ban complete takeovers by foreign companies of critical lifesaving drugs production facilities. The proposal is to lower the cap for foreign direct investment (FDI) from 100 per cent to 49 per cent, subject to approval of the Foreign Investment Promotion Board (FIPB).

The DIPP also wants critical pharma manufacturing to be declared a strategic sector, officials told The Hindu, just as on October 31, 2011 President Obama had through an executive order directed “the US FDA to take steps to prevent and reduce current and future disruptions in the supply of lifesaving medicines” as “last five years data indicates that the use of sterile injectable cancer treatment has increased without a corresponding increase in production capacity.”

``Our concern is that an alarming number of foreign acquirers of cancer oncology injectables and APIs manufacturing facilities over the last two years have post-takeover shut down the manufacturing units and R&D centres of the acquired companies,’’ DIPP officials said.

Even India's first indigenous manufacturer of the Hepatitis-B vaccine, Shantha Biotech, was acquired by the French pharma giant Sanofi-Aventis, and production there was suspended post-acquisition, they said adding that, Pfizer had divested one of its manufacturing facilities towards real estate.

The Hindu could not independently verify these examples.

“Since the acquirers' focus is more on marketing and distribution of their imported formulations, the acquisitions could make the domestic formulators’ oncology products dependent on imports,” officials said. Already, India had become dependent on imports for penicillin, they pointed out.

Tata Sons withdraws from new bank licence fray

Tata Sons has decided to withdraw its application for a new bank licence. . “Tata Sons Ltd. has withdrawn its application made on July 1, 2013 for a new bank licence. The company has indicated that its current financial services operating model best supports the needs of the Tata Group’s domestic and overseas strategy, and provides adequate operating flexibility to its companies, while securing the interests of the Group’s diverse stakeholder base. The Reserve Bank has accepted withdrawal of the application,” the RBI said in a statement.

Clarifying its stance, Tata Sons, in a statement, said: “The Tata group comprises over 1,000 companies engaged in multiple sectors and geographies, with a significant presence outside India. On a detailed evaluation of the ‘Guidelines for Licensing of New Banks in the Private Sector’ and analysis of clarifications thereto, Tata Sons has reached a conclusion that the group’s current financial services operating model best supports the current needs of the Tata group’s domestic and overseas strategy, and provides adequate operating flexibility to its companies, while securing the interests of the group’s diverse stakeholder base.”

The company said it remained committed to financial inclusion and believed that the group’s existing financial services footprint uniquely positioned it to provide technology excellence and access to India’s hinterland.

“The company shall continue to monitor developments in this space with great interest and looks forward to participating in the banking sector at an appropriate time,” the statement added.

As on July 1, 2013, the RBI had received 26 applications from major corporates, NBFCs, government entities and microfinance companies to open commercial banks in line with the RBI’s new guidelines for Licensing of New Banks in the Private Sector announced on February 22, 2013.

On September 6, 2013, RBI communicated that Value Industries Ltd. (Videocon) had withdrawn its application. In its place, the application of K. C. Land & Finance Ltd., which was not included in the list of applicants released orginally, was included.

Prominent players in the fray include Aditya Birla Nuvo, Bajaj Finserve, L&T Finance, IDFC, Reliance Capital, Shriram Capital, LIC Housing Finance, Department of Post, IndiaBulls and Edelweiss. The new licences are likely to be awarded early next year.

SEBI rejects five consent pleas

The Securities and Exchange Board of India (SEBI), on Wednesday, said it had turned down five consent applications, including that of G Ramakrishnan, former director, Pyramid Saimira Theatre, seeking settlement of proceedings regarding alleged violations of market regulator’s norms.

With this, the total number of rejected applications for settlement by the SEBI has touched 228, ever since the revised rules for consent framework came into effect on May 25, 2012.

The five applications included one by Pyramid Saimira’s former independent director G. Ramakrishnan, who has been charged with violation of SEBI’s ‘Prohibition of fraudulent and unfair trade practices’ regulations.

In its latest update, for the period October 22-November 25, 2013, SEBI has also rejected consent pleas of Khandwala Securities, IQMS Software, Genesis Developers & Holdings, and one Kailash S Choudhari. While Khandwala Securities is charged with fraudulent trading activities and violation of stock broker norms in matter of Shree Rama Multi Tec, IQMS Software has been accused of violating SEBI’s guidelines on ‘disclosure and investor protection’

Besides, Genesis Developers & Holdings and Kailash S Choudhari are facing proceedings for violations of takeover norms.

SEBI said that the five applications have been rejected “as they are not found to be in consonance” with its norms on consent mechanism, which were issued in May 2012. “The pending proceedings in these cases will continue in accordance with law,” it added.

In May last year, SEBI had tightened its regulations for settlement through consent framework, while the regulator has been making public the names of the rejected applications since January this year.

Under SEBI’s consent mechanism, firms and individuals can seek to settle the cases with the market regulator after the payment of certain charges, without admission or denial of any wrongdoings.

Meanwhile, the market regulator had recently proposed new norms for settlement of administrative and civil proceedings against suspected market defaulters, except in cases of serious violations such as illicit pooling of funds from investors, insider trading and fraudulent and unfair trades.

Shoma Chaudhury resigns from Tehelka

Under fire from various quarters, including the media fraternity, for the way she handled a junior colleague’s sexual harassment charge against founder-editor of Tehelka, Tarun Tejpal, managing editor Shoma Chaudhury decided to resign from the post early Thursday morning.

She announced her decision to sign out from the weekly magazine through an email to her colleagues sent at 5:52 a.m. Though no statement has been put out by Tehelka on its website regarding the resignation, her email was widely in circulation on various social networking sites within hours.

"No cover-up"

Conceding that she could have done several things differently and in a more measured way, Ms. Chaudhury rejected the allegations of a “cover-up’’ and not standing up to the “feminist positions’’ she has taken otherwise on such issues. “No way could the first actions that were taken [by me] be deemed [as] suppression of any kind. As for my feminist positions, I believe I acted in consonance with them by giving my colleague’s account precedence over everything else.’’

According to Ms. Chaudhury, since the “devastating allegation’’ was first brought to her notice on November 18, she had taken a series of actions in response to this complaint. “To my mind, I acted on instant outrage and solidarity for our colleague as a woman and co-worker.’’

Detailing her response, Ms. Chaudhury said after the first steps to immediately address the complainant’s “expressed needs, the procedures of setting up the anti-sexual harassment committee was begun. There were only two days to act on the complaint before the story broke in the press. Post this, things have been misconstrued and have snowballed exponentially in the media, based on half-facts and selective leaks.’’

Ms. Chaudhury goes on to underscore that despite the efforts taken in solidarity with the complainant, “my integrity has repeatedly been questioned by people from our fraternity’’ and, in fact, by the public at large. “I do not want questions raised about my integrity to tarnish the image of Tehelka, which it has done in the past week.’’

Stating that it was not her nature to “give up midway through a challenge’’, Ms. Chaudhury said she would have liked to continue at Tehelka to see it through “this dark time, but I am no longer sure whether my presence is harming or helping’’ the magazine.

Ministry finalising rules to curb harassment at workplace

Under severe criticism for failing to notify Rules of the Sexual Harassment of Women at Workplace (Prevention, Prohibition and Redressal) Act, 2013, even seven months after the law was enacted, the Ministry of Women and Child Development is burning the midnight oil to finalise the Rules.

The Ministry officials have, over the past two days, been finalising the draft Rules which were placed in public domain in July this year, and forwarded these to the Ministry of Legal Affairs for vetting.

The final Rules are expected to be notified shortly.

A senior official in the Ministry told The Hindu that it had removed the provision for penalising a woman for lodging a false complaint, following sharp reactions. The draft Rules mentioned imposition of a fine of Rs. 500, among other penalties, if the complaint was false.

Other provisions


The draft Rules stated:

–Where the complainant is unable to make a complaint on account of her physical incapacity, in addition to her legal heir, a complaint may also be filed by any relative or friend or co-workers of the aggrieved woman, a member of the staff of the association or union in which she was a member, the National or State Commission for Women or any non-government organisation which has no conflict of interest in the matter.

But the written consent of the woman will have to be taken prior to filing such a complaint.

–Where the complainant is unable to make a complaint on account of her mental incapacity, in addition to her legal heir, a complaint may also be filed by a special educator or a qualified psychiatrist or psychologist or the guardianunder whose care the person is receiving treatment or care.

–In case the aggrieved party requests for conciliation, the chairperson of the Internal Complaints Committee/Local Complaints Committee shall, within a period of one week of the receipt of request for conciliation from the complainant, summon her in order to ensure that she is not opting for it under any form of coercion.

–The chairperson may himself or herself carry out the conciliation or nominate one member from the Committee to carry out this process, who shall then provide detailed information to both parties regarding the conciliation process.

–The conciliator shall fix in consultation with the parties, a time schedule, the dates and the time of each conciliation session, where both the parties have to be present; hold the conciliation at the place prescribed by the committee or the place where the parties and the conciliator jointly agree; and conduct joint or separate meetings with the parties.

–The conciliation process shall be completed within a period of forty five days from the time of receiving the request for the same from the complainant.

–Once the complaint is confirmed, the Committee can obtain a written apology from the respondent or warn, reprimand or censure, withhold promotion, withhold increments of pay, terminate the respondent from service, revoke, suspend any license or registration issued under any law for the time being in force, for such period as may be specified, compel the respondent to pay a reasonable amount of compensation to the complainant.

–In case of contractual employees, the committee may recommend termination of contractual services with the respondent.

Six held in English football match-fixing case

Police have made six arrests as part of an investigation into a suspected international betting syndicate which allegedly fixed English football matches, authorities said Wednesday.
The arrests follow an undercover investigation by Britain’s Daily Telegraph newspaper, which reported that at least three of the men held this week are footballers.
The paper said the alleged fixer who was arrested on Tuesday is “internationally known” and arrived in England last week.
The paper’s website published a covertly recorded video in which it says the fixer claimed matches could be fixed for 50,000 pounds ($81,380).
It appears the games at risk were at levels no higher than the Football Conference the fifth tier of the sport in England.
Premier League matches are not reported to be under investigation, and the Football League, which runs the three professional divisions below the Premier League, said it had not been contacted by police.
The English Football Association is working with Britain’s National Crime Agency on the investigation.
“Six men have been arrested across the country as part of an NCA investigation into alleged football match fixing,” the NCA said in a statement. “The focus of the operation is a suspected international illegal betting syndicate.”
At meetings in Manchester this month, the Telegraph said one of the alleged fixers a Singaporean man correctly predicted how many goals would be scored during a match the next day, and offered to manipulate two British matches this month.
The man told the paper’s investigator in a video that he would say to a footballer- “You tell me how many goals you can give.”
“Either 3-2, 4-1 or zero,” he added in broken English. “I say I don’t need five. For me four is enough ... if more than that up to you. But my deal is four ... I don’t want less than four.”
The alleged fixer is heard claiming he has a betting website, stressing- “We can bet (on) those goals.”
The Telegraph said it was approached by an “undercover investigator with links to FIFA, who had been gathering evidence against suspected Asian match fixers offering to operate in Britain.”
The alleged fixer said he was connected with Wilson Raj Perumal, the Singaporean who was sentenced to two years in prison in Finland in 2011 for bribing players in the Finnish football league.
“He’s my boss,” the alleged fixer in the Telegraph investigation said. “Everybody in the world know him.”
Now co-operating with authorities in Hungary, Perumal has given evidence which is key to FIFA and law enforcement agencies piecing together the scope of match-fixing plots worldwide carried out by crime syndicates with Singapore connections.
Match-fixing is a growing blight in football, with investigations across the globe raising concerns about the integrity of the sport.
“Everyone really knew that match fixing is endemic in football,” Chris Eaton, the former head of security for FIFA, told The Associated Press on Thursday. “And in this (alleged) case there is nothing new in terms of the corrupting method, its internationality or in the core betting fraud purpose.
“What is new is that it shocks England, the home of the game. That shock should be used to galvanize international efforts to regulate and supervised sport betting globally, which is the real motivation for modern match-fixing.”
The scale of the corruption in football was highlighted earlier this year when Europol, the European Union police liaison agency, said it reviewed 680 suspicious recent cases of match-fixing.
One of the biggest recent alleged fixing plots was unearthed in Australia where four English players were charged in September in a criminal investigation. Before heading to Australia to play for the Melbourne club Southern Stars, the men played in England’s lower leagues.
“It was only a matter of time before the English game was caught up in this global wave of match fixing in football,” said Eaton, who is now director of sport integrity at the International Centre for Sport Security.
“International sport, especially football, is in serious trouble with corruption of its competitions.”
The last major match-rigging convictions in English football were in the 1960s. Peter Swan, David ‘Bronco’ Layne and Tony Kay, who were all in or on the fringe of the England team, were jailed for four months and banned for life for corruption.

Vietnam amends Constitution

Vietnam’s National Assembly on Thursday passed an amendment to the country’s Constitution, but critics said that despite calls for reform little has changed.
The revision retains the wording of the original constitution, adopted in 1992 that affirms the leading role of the Communist Party.
“There is no essential change [but] there are a few setbacks compared with the 1992 constitution,” economist Nguyen Quang A said.
The amendment states that land rights can be revoked for socio-economic projects and the armed forces must be loyal to the party, he said.
Quang A was among a group of intellectuals who signed a petition earlier in the year calling for changes in the constitution to include free and fair elections and private ownership of land.
The petition was posted on several popular blogs after the government launched a public consultation on a proposed draft.
The amendment passed Thursday was even “a setback in comparison with the first draft,” Quang A said, because it reaffirmed that the state must play a central role in the economy — a point the proposed draft had removed.
State companies, once the cornerstone of the socialist-oriented market economy, have fallen from grace. Riddled by mismanagement and corruption, the sector has racked up debts of 60 billion dollars, equivalent to half of annual gross domestic product.
The amendment was passed by all attending delegates at the assembly, newspaper Tuoi Tre reported.

NSA monitored porn access to discredit ‘radicalisers’

This week the U.S. National Security Agency’s counterterrorism-related justification of massive Internet spy programmes came under fire after new documents supplied by whistleblower Edward Snowden suggested that the Agency was collecting records on the “online sexual activity and evidence of visits to pornographic websites” of individuals who allegedly sought to radicalise others into terror plots.

According to a top-secret NSA document published by the Huffington Post the covert monitoring of the activities of six individuals, all said to be Muslims, took place despite none of them being accused of terrorism and at least one of them being a U.S. citizen.

While the Director of the National Security Agency is listed as the “originator” of the document, it was evidently circulated to law enforcement outside of the NSA, with listed recipients including officials with the Departments of Justice and Commerce and the Drug Enforcement Administration.

The document released by Mr. Snowden, who is a former NSA contractor and has been granted temporary asylum in Russia, suggest that the six targets radicalised people “through the expression of controversial ideas via YouTube, Facebook and other social media websites,” and India was among the list of countries where the speeches and writings of these individuals “resonated” the most.

The other countries on the list included the United Kingdom, Germany, Sweden, Kenya, Pakistan, and Saudi Arabia, and the targets of the so-called radicalisers was said to include “individuals who do not yet hold extremist views but who are susceptible to the extremist message,” according to the document.

In theory the global-scale surveillance programmes of the NSA are governed by the Foreign Intelligence Surveillance Act (FISA) Court, although under the applicable laws the surveillance of U.S. citizens not directly suspected of terror activities is generally banned.

The sections of the NSA document, dated October 3 2012, published in the report frequently referred to the value of accusing such radicalisers of hypocrisy so as to undermine them and their message.

The document explicitly argues, “A previous SIGINT [signals intelligence, the interception of communications] assessment report on radicalisation indicated that radicalisers appear to be particularly vulnerable in the area of authority when their private and public behaviours are not consistent.”

Further, the report noted the vulnerabilities that could be exploited include “viewing sexually explicit material online” and “using sexually explicit persuasive language when communicating with inexperienced young girls.”

Responding to the contents of the report Shawn Turner, Director of Public Affairs for National Intelligence, said to the Huffington Post, “It should not be surprising that the U.S. government uses all of the lawful tools at our disposal to impede the efforts of valid terrorist targets who seek to harm the nation and radicalise others to violence.”

The report however also quoted Jameel Jaffer, DeputyL director of the American Civil Liberties Union, who said that although the NSA stores “information about your political views, your medical history, your intimate relationships and your activities online [and] says this personal information won't be abused… these documents show that the NSA probably defines 'abuse' very narrowly.”

Ambiguity about China’s air defence zone fans regional tensions

In this November 26, 2013 photo, computer screens display a map showing the outline of China's new air defence zone in the East China Sea on the website of the Chinese Ministry of Defence, in Beijing.
 
Three days after China announced the setting up of an Air Defence Identification Zone (ADIZ) to bolster its claims over parts of the disputed East China Sea, a persisting lack of clarity about how Beijing plans to enforce its control over the contested area has risked fuelling regional tensions, analysts say.

While China has said that aircraft that enter the ADIZ without notifying authorities may risk facing interception from defence forces, two American B-52 bombers were, on Tuesday, allowed to pass through the region, flying within the ADIZ for close to two and a half hours without interference.

Chinese officials on Wednesday confirmed that two aircraft had flown through the eastern rim of the ADIZ. Defence Ministry spokesperson Geng Yangsheng told reporters Chinese armed forces had "monitored the entire process".

Yet it remains unclear whether "identification" by armed forces is the only action China intends to take when aircraft enter the zone.

Foreign Ministry spokesperson Qin Gang told reporters that "different and corresponding measures" would be employed for "different occasions".

Diplomats from three countries said the Saturday announcement by China came as a surprise, suggesting that Beijing may have been better served by bringing countries in the region on board first before rolling out its plan. Failure to do so, coupled with persisting ambiguity about China's plans to enforce its claims, had needlessly stirred regional anxieties, they suggested.

Mr. Qin of the Foreign Ministry said "relevant countries" had been notified before Saturday's announcement, although he declined to name them.

But sources said countries such as South Korea and Japan were told only a few hours before the formal announcement on Saturday morning.

Japan, which is involved in territorial disputes with China over the Senkaku or Diaoyu islands in the East China Sea - the islands lie within both countries' air defence zones, which are overlapping - has warned that the move could result in "unexpected" incidents. Both countries have already had run-ins between naval vessels, while Japan recently scrambled fighter jets and threatened to shoot down a Chinese Unmanned Aerial Vehicle.

The U.S., for its part, has made clear that its aircraft will not follow China's demands, and will only adhere to its own regulations which state that aircraft only need to notify countries if they are heading towards their airspace, not when they are merely transiting through such zones.

Even South Korea, which has recently enjoyed warming ties with China, has expressed "regret" and concern over the move, as the ADIZ also overlaps with its own air defence zone.

Rory Medcalf, Director of the International Security Program at the Lowy Institute for International Policy, said the move would likely make tensions over the disputed East China Sea islands "even harder to manage".

"An ADIZ is not a provocative or negative step in itself; indeed, it can be in the interests of stability and security of the nation enforcing it," he wrote in an article posted on the institute's website, pointing that the U.S., Japan and South Korea had already set up similar zones.

"If China’s new zone did not include disputed maritime territory, if its requirements for compliance applied only to aircraft heading into Chinese airspace, and if neighbours like Japan and South Korea had been consulted ahead of the announcement, then there would be little or nothing for others to object to," he added. Instead, the move was "a unilateral step, announced suddenly and apparently without consultation with two countries whose civilian and military aircraft will be most affected, the US and Japan."

On Wednesday, the question remained as to why Beijing even took the step of risking fanning regional tensions with the announcement if it planned to only "identify" aircraft and not intercept them - as it did to the two B-52s on Tuesday.

In fact, the move comes at a time when the new Chinese leadership has launched a charm offensive to bolster ties with neighbours and tone down tensions over the South China Sea, where China has, in recent years, had run-ins with vessels from Vietnam and the Philippines.

President Xi Jinping and Premier Li Keqiang recently travelled to Southeast Asia promising to expand trade and investment, and reached an agreement with Vietnam on joint exploration in the South China Sea, which is contested by more than 10 countries.

Mr. Qin said China may also consider setting up similar air defence zones to fortify its other frontiers after "completing preparations". This could, analysts suggested, include parts of the South China Sea.

Such a move would be certain to inflame tensions.

As air defence zones generally extend beyond a country's territory into international airspace, it is less likely that China will take the more provocative step of setting up such a zone across its western or northern frontiers, where it shares land borders with India, Russia and a number of Central Asian countries.

Thai premier survives no-confidence vote

 
Thailand Prime Minister Yingluck Shinawatra (right), with Foreign Minister Surapong Tovichakchaikul, gives a Thai traditional way of greeting
 
Thailand’s embattled Prime Minister has easily survived a no-confidence vote in parliament.
Lawmakers in Bangkok voted 297 to 134 Thursday against unseating Yingluck Shinawatra, who faces protests by opponents who want to bring down her government.
The motion never had a chance of succeeding because Ms. Yingluck’s party controls the House of Representatives.
Ms. Yingluck was came to power in a popular vote two and a half years ago, but she is now facing a wave of protests by opponents that mark the most sustained demonstrations the country has seen in years.