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While Mr. Pearson may not have breached a fiduciary duty to Valeant by sharing information aboutthe planned takeover bid with Mr. Ackman thats an S.E.C.rule known as 10b-5 Allergan arguesthey violated another S.E.C. rule that makes it illegal to share information before a takeover bid whenit is part of a tender offer, in which the suitor goes directly to shareholders, bypassing the board.Valeant, after being rejected by Allergans board, began a tender offer for Allergan on June 18. (Ifyoure asking why the S.E.C. prevents one kind of insider trading and not others, thats a goodquestion.)

At the time that Valeant first came forward with its bid, those observers who said the maneuver waslegal did so specifically because the company and Mr. Ackman said they did not plan to start a tenderoffer.

But Mr. Pearson recently acknowledged, in an unscripted moment during a conference call, that heanticipated pursuing a tender offer from the outset. On April 22, we announced our offer forAllergan. We suspected at the time it would ultimately have to go directly to Allergan shareholders.We were correct.

That runs counter to what the company said initially. Valeant and Pershing Square went so far as toclaim in writing that they were not contemplating a tender offer a feeble, self-serving attempt tocircumvent the insider trading rules yet then agreed in the same document on the procedures eachwould follow if a tender offer were to occur, Allergan said in its lawsuit, referring to Mr. Ackmansfund, Pershing Square Capital Management.

Of course, Valeant has long argued that it is impossible for it or for Mr. Ackman to have been involvedin insider trading because they are effectively partners in the bid for Allergan. They describedthemselves as co-bidders. (People close to Valeant also say that Mr. Pearsons unscripted words arebeing misconstrued and that he wasnt referring to making a tender offer, rather he was sayingValeant always planned to communicate with Allergan shareholders.)

But the idea that Valeant and Pershing Square are co-bidders is questionable: Mr. Ackman and theother Pershing Square entities are together offering precisely zero to Allergan stockholdersthey are

seeking to sell Allergan stock as Valeant seeks to buy it. Ackman is not going to be a board member ofValeant, will not otherwise be a control person of Valeant and is not going to receive any business orasset of Allergan as a result of the tender offer, Allergan argued in its suit.

The case will most likely rest on how a judge interprets the S.E.C.s arcane rule, known as 14e-3. Thatrule says, If any person has taken a substantial step or steps to commence, or has commenced, atender offer it will be considered a fraudulent, deceptive or manipulative act for any officer,director, partner or employee or any other person acting on behalf of the offering person or suchissuer, to purchase or sell stock.

Valeant and Mr. Ackman will inevitably argue that at the time Pershing Square purchased the stock,they had not taken steps to start a tender offer. Further, they will most likely contend that they areprotected by another arcane rule that allows purchases of stock of a target company if it is done by abroker or by another agent on behalf of an offering person. In this case, the offering person would beValeant.

At the moment, neither Valeant nor Mr. Ackman is trying to argue the merits of the case. Instead, Mr.Ackman, in a statement, simply derided Allergans lawsuit as a shameless attempt by Allergan todelay the shareholders fundamental right to call a special meeting and vote their shares. He said,


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This scorched-earth approach is further evidence of the boards and managements furtherentrenchment. In truth, Allergans litigation may be as much about the law as it is a defensive tactic.

Whatever the case, Valeant and Mr. Ackmans actions, at least from a public policy perspective, mayhave been too clever by half. When Sanford C. Bernstein wrote a note to clients at the time the offerwas first announced, it described Pershing Square as having found an opportunity for regulatoryarbitrage.

Now a judge will decide whether it was truly regulatory arbitrage or something more sinister.

Valeant and Mr. Ackman might benefit from reading a court decision about another hedge fund, theChildrens Investment Fund,which lost a 2008 case toCSXin which it had secretly amassed a largestake. The judge wrote: Some people deliberately go close to the line dividing legal from illegal if theysee a sufficient opportunity for profit in doing so. A few cross that line and, if caught, seek to justifytheir actions on the basis of formalistic arguments even when it is apparent that they have defeatedthe purpose of the law.

New norms coming soon to help banks

offload bad loansMUMBAI: Reserve Bank of India (RBI) governor Raghuram Rajan promised on Tuesday that it will soon issue new directives to enable

banks to offload bad loans quickly. Briefing the media on the third bi-monthly policy, Rajan said the RBI will announce measures on

asset reconstruction companies.

The RBI governor focused on three main issues. "If there are distressed assets can we bring in new equity? If there is a restructuring

needed, will the banks do that quickly, and if there are assets to be sold can that be done quickly?"

In recent months, banks have reposed their trust in asset reconstruction companies ( ARCs) by selling them nearly `80,000 crore of bad

loans in the last five quarters.

A steep rise in bad loans has eaten into banks' profits as they have been forced to make a higher provision against these loans. "RBI

does not want any window dressing. Since volumes have gone up, the regulator would want to ensure that the whole process is well

managed and transactions reflect the true value," said Sunil Kaushal, regional chief executive officer for India and South Asia, StandardChartered Bank.

A quick resolution would protect the value of assets and revive the economy. my. Bank analysts also said lower inflation will revive

economic growth, which the RBI is aiming at.

"The tone of the policy reaffirmed the RBI's commitment to squeeze out inflation and inflationary expectations, and that was very

reassuring," said Arvind Sethi, MD & CEO, Tata Asset Management.

"The idea is to broadly ensure the maximum value for the underlying real assets and to put the economy back on track in terms of

growth," said Rajan in his media briefing. The gross ..

In Maharashtra, stamp paper not needed for many

certificates

MUMBAI: After letting a people-friendly notification that does away with the use of stamp paper for many

common certificates and affidavits lie tangled in red tape for over a decade, the Maharashtra government

has suddenly woken up and is publicizing its existence.

Notices have already been issued and collectors have been informed to let people know of the July 2004
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notification, with what some say is an eye on Maharashtra assembly elections.

As per the notification, no affidavit to be given either to a government authority or to the court needs to be

made on stamp paper. Even candidates contesting polls in the state do not need to declare their income on

a stamp paper; this can be done on a piece of paper. Currently, unaware of the notification, candidates not

only file the declaration on a Rs 100 stamp paper but also paste a Rs 100 stamp on each page.

The department realized the unnecessary harassment to the common man following repeated complaintsof shortage of Rs 100 stamp paper. Advocates and stamp vendors invariably advise citizens to make

affidavits on a Rs 100 stamp paper to be on the safe side. "We realized the shortage was on account of the

demand for stamp paper for filing affidavits. So we decided to issue a circular on the 2004 notification,"

said Manik Gursal, additional controller of stamps for Mumbai region.

Shrikar Pardeshi, inspector general of Registration and Controller of Stamps, said any affidavit can be

filed on a simple piece of paper. The 2004 notification, he explained, was not widely publicized and so

stamp vendors continued to insist on its usage for obtaining caste, income, domicile and nationality

certificates.

"Students' parents have to unnecessarily shell out a few hundred rupees for these certificates. We have

now conducted workshops at the divisional level for officials and stamp vendors who come in direct

contact with the common man to inform them about the 2004 notification," he said.

Gursal said collectors have been told to put up the notification at all revenue offices and SETU kendras

where various certificates are issued.

Political observers, however, said it was a little too late in the day for the Congress-led Democratic Front

government to capitalize on the people-friendly move. "Democratic Front has been in power for 15 years.

It is a sad reflection on the government that it could not publicize something that was genuinely in public

interest," said an observer.

BMC warns GPs: undergo training in administering TB drugs or lose

licence

In the wake of an alarming increase of Multi-Drug Resistance Tuberculosis cases, BMC has warned general

practitioners across the city that they will have to undergo training in the proper administration of TB drugs.

The GPs will be given credit points for attending workshops which, in turn, will help in renewing their licences.

However, in the event of them avoiding training and not notifying BMC about TB cases, or prescribing unnecessaryantibiotics, they stand to lose their licences.

"GPs are responsible for the rise in drug resistance tuberculosis cases in Mumbai," Mini Khetrapal, TB control

officer, declared at a workshop organised for GPs in M-East Ward (Kurla, Chembur, Govandi) on Tuesday.

"It's high time pressure is exerted on GPs to monitor TB patients, in terms of notifying BMC, as well as in properly

treating them," she said. "Also, in majority cases, local doctors do not keep track of their patients," Dr Khetrapal


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said, warning GPs to stop prescribing unnecessary antibiotics in a bid to cure patients, which is one of the main

reasons for the increase in number of MDR cases. "By the time such patients approach civic hospitals, their

condition has usually worsened. Six patients die due to TB in the city each day, she added.

The workshop was conducted at Govandi, which has the highest number of MDR and extremely drug resistance

(XDR) cases. According to Dr Pravin Chandure, TB officer, M-East Ward, so far there are 30 XDR cases and 300

MDR cases in Govandi alone. Every year, out of the 3,000 cases that Govandi reports, 300 have to be put on second

line treatment.

Dr. Arun Bamane, public health consultant, BMC, said, "Every year the city gets around 30,000 new TB cases, of

which around 10,000 first approach GPs and later land up in BMC hospitals after being diagnosed with the

disease."

Dr Bamane further said, "The government has made it compulsory for GPs to undergo training in administering TB

drugs, as well as to notify the BMC of cases. They have also been told not to prescribe unnecessary antibiotics. If any

GP is found not adhering to the rules, action will be taken against him and he could lose his licence."

Consultant chest physician Dr Vikas Oswal of Shatabdi Hospital, who is closely associated with TB cases in Govandi,said, "There are over 200 GPs in Govandi and a majority of them unnecessarily prescribe high antibiotics to patients

even for minor illness like respiratory infections or common coughs and colds, which is not needed."

Dr Oswal further said, "I have come across cases of patients who are resistant to antibiotics such as Ofloxacin,

Moxifloxacin and Levofloxacin. These drugs were prescribed to them for minor respiratory inefections, and later

they become resistant to tuberculosis bacillus. This is the main reason for so many MDR or XDR cases."

Fast-track courts do work

The Supreme Courts rejection of a proposal to fast-track criminal cases against MPsalbeit while asking for

an alternative plan to speed up the entire criminal justice systemhas disappointed many advocates of judicial

reform, including this writer. Of course the entire judicial machinery needs speeding up, but more on that

shortly.

It is crucial to recognize that expediting the adjudication of criminal cases against MPs and MLAs is not a

favour to them, but rather to society as a whole. In fact, it would not be wrong to say that some of my

parliamentary colleagues are today relieved at the Supreme Courts response. Decriminalizing Indias polity

ought to rank high among our priorities. It would have a cascading effect for the overall good, starting with

enlarging space for the kind of politician who is more attuned to virtuous cycles and less to vicious ones.

The Supreme Courts reservations are based on the sound constitutional dictum that the law shall treat all

citizens equally. Nevertheless the court itself has interpreted that very same principle more broadly in cases that

have a widespread impact on the public. Take for instance its recent order that the incarcerated chief of a major

conglomerate, Sahara, be specially allowed the use of office and communications facilities in Tihar jail.


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This was done to enable him to sell large real estate holdings in order to make good on court-ordered payments

amounting to thousands of crores of rupees. However it is a fair bet that such special allowances are not made

for small time property dealers who might also be in jail, maybe in Tihar itself, perhaps even on somewhat

similar charges.

The court presumably felt this is one case where lakhs of citizens investments are at risk, and special

facilitation could lead to proper restitution. Exactly the same argument justifies speeding up criminal casesagainst MPs and MLAsin fact against all elected representativeswhose probity impacts hundreds of

millions of citizens.

Coming back to the desirability of speeding up the entire judicial machinery, it clearly ought to be a high

priority for the government, and not just on moral or constitutional grounds. There are very pragmatic reasons

to do so as well. It has been estimated that if the entire judiciary could be unclogged, if cases could be decided

quickly and predictably, Indias GDP growth rate would see a very significant 2% per annum increase.

One of the most startling statistics that explain the logjam is the ratio of judges to population. India has only 13

judges per million citizens, in comparison with a minimum of 50 in most developed countries51 in the UK

and 125 in the US.

As far back as 1987, the Law Commission had recommended raising Indias judges to population ratio to 50 per

million by the year 2000, but little has been done. The reasons become obvious with some quick, back of the

envelope number crunching. Without even including the initial costs of buildings, infrastructure etc, which

would be a massive figure, annual budgetary allocation needs to go up by at least Rs 32,000 crore.

Despite these mind boggling numbers, we must commit to making it happen. The resilience of the worlds

largest democracy would be compromised if its inability to deliver justice to all, swiftly, continues for much

longer. But even with iron political will, that would take some years to implement. Not just because such huge

sums would need to be allocated in phases, but also because other key policy aspectssuch as judges

selection proceduresneed to be resolved.

But good, interim solutions should not be rebuffed just because the ideal one will take time. Fast-tracking two

kinds of casescrimes against women and criminal charges against elected representativeswould be just

such a solution, with widespread positive impact on society and the integrity of our democracy.

Fast-track courts were first introduced a dozen years ago, with central funding. Despite some criticism, they had

notched up a stellar track record, disposing 85% of the cases listed by 2011. Ironically, that was when central

funding was discontinued. But some states have kept fast-track courts functional with their own funds, and a

few have even added more.


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At the same time, attempts to speed up the functioning of regular courtswitness the repeated exhortations by

chief justices to limit never ending adjournmentshave not worked. It seems far easier to create nimble new

courts than to change the long-inculcated habits of conventional ones.

Of course fast-track courts cannot function in isolation and other complementary steps need to be taken, such as

police reforms and the appointment of independent prosecutors. Some of these steps do not require any

significant funding increase. But they do need political will.

Finally, even a determined prime minister, who has publicly embraced the idea of fast-tracking criminal cases

against MPs and has reportedly asked the law ministry to devise a mechanism for this, is still only one half of

the equation. How do you square the circle and get the Supreme Court on board?

According to a legal luminary with insight into the courts thinking, one way could be for the government to

propose several new fast-track courts, with say 20% of them dedicated to MPs and MLAs criminal cases.

The writer is a BJD Lok Sabha MP.

US artist creates tree which grows 40 different fruits

WASHINGTON: An artist in the US has created a tree which grows over 40 different types of stone fruit

including peaches, plums, apricots, nectarines and cherries. The Tree of 40 Fruit, is a project by Sam Van

Aken, associate professor in Syracuse University's art department, in which a single tree is modified to

bear over 40 different types of stone fruit.

The artist had recently completed a project called Eden in which he grafted vegetables and flowers

together and was offered the opportunity to design an orchard. When funding for this orchard fell

through, Van Aken wanted to continue with the project and he decided to graft the entire orchard onto one

tree. The grafting process includes collecting scions (young shoots or cuttings) from trees. These sections

are then worked into similar sized cuts on the new tree and are bandaged. The cutting then "heals" into

tree and is able to draw water and nutrients from the tree in the same way as any other branch.

Among the fruits that Van Aken uses to create his trees are peaches, plums, apricots, nectarines and

cherries. The trees blossom in variegated tones of pink, crimson and white in spring, and in summer bear

a multitude of fruit.

Pawan elevated, succession clarity at Hero MotoCorpPawan has been leading the firm even before the Munjals separated from erstwhile Japanese partner in the now-defunct Hero Honda JV.

NEW DELHI: The Brijmohan Lall Munjal family, which controls the Hero group, on Tuesday

elevatedPawan Munjalas the vice-chairman of flagship Hero MotoCorp, lending clarity to the succession

plans within the family members.
http://timesofindia.indiatimes.com/business/india-business/Pawan-elevated-succession-clarity-at-Hero-MotoCorp/pmarticleshow/39715378.cms?prtpage=1http://timesofindia.indiatimes.com/topic/Pawan-Munjalhttp://timesofindia.indiatimes.com/topic/Pawan-Munjalhttp://timesofindia.indiatimes.com/topic/Pawan-Munjalhttp://timesofindia.indiatimes.com/topic/Pawan-Munjalhttp://timesofindia.indiatimes.com/business/india-business/Pawan-elevated-succession-clarity-at-Hero-MotoCorp/pmarticleshow/39715378.cms?prtpage=1


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Pawan (59), the third son of Hero Group chairman Brijmohan Lall Munjal, is currently the MD and CEO

of Hero MotoCorp, the country's top two-wheeler maker, running its day-to-day affairs. His younger

brother Sunil Munjal is a joint MD of the company, while being the chairman of Hero Corporate Services.

The elevation was cleared at Hero MotoCorp's board meeting, which also reviewed the first-quarter results

of the company. Company's net profit in the April-June quarter of the current fiscal was up 3% at Rs 563

crore against Rs 549 crore in the same quarter last year, while net sales were up 14% at Rs 6,999 crore. "I

am grateful to the members of the board and all stakeholders of the company for reposing their faith andconfidence in me with a larger responsibility. I take this as an acknowledgement of all the good work that

we have done as a team in building our leadership over the past several years," Pawan said.

Chairman Brijmohan Lall said Pawan will lead the company into the future.

Pawan has been leading the firm even before the Munjals separated from erstwhile Japanese partner in

the now-defunct Hero Honda JV. The other children of Brijmohan Lall are late Raman Munjal (the eldest

son) and second son Suman Munjal, who is a non-executive director atHero MotoCorpand is managing

director of Rockman Industries.

The Hero Group, which officially came into existence in 1956, had started its activities in the early 1940s

as a bicycle-maker run by the four brothers.

In 2010, an agreement to divide the Hero Group was reached based on a simple principle of ending the

numerous cross holdings between the families of B M Munjal and his three brothers - O P Munjal,

Satyanand Munjal and the late Dayanand Munjal. Hero MotoCorp separated from Honda Motor Co in

2011 and has augmented its global presence, selling products across 18 countries, including Peru,

Guatemala, Turkey and Egypt.

Reits could invest in realty stocks

Final regulations likely at Sebi's board meeting on Sunday; regulator might also change minimum

asset criteria

The Securities and Exchange Board of India (Sebi) might permit a real estate investment trust (Reit) to invest up to

20 per cent of its assets in shares and debentures of real estate companies.

The market regulator is likely to issue final regulations on Reits at its board meeting on Sunday in the capital.

According to sources, the board is likely to approve key changes to the draft regulations, issued in October last

year, to ensure attractiveness of the investment product, aimed at providing liquidity to the cash-short sector.

Among the most important changes will be the move to allow aReit to invest up to 20 per cent in under-

construction projects and in shares and debentures of a real estate firm.

FRESH LOOK
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Likely changes

Reit can invest up to 20 per cent in under-construction

projects and real estate shares and debentures

Minimum assets of Rs 500 crore

Manager needs to have net worth of Rs 10 crore

Earlier proposal

Reit was allowed to invest up to 10 per cent in under-

construction projects

Minimum assets of Rs 1,000 crore

Manager needs to have net worth of Rs 5 crore

Source: Industry officials,Sebi draft regulations

Market players said the move will particularly benefit real estate firms having a majority of completed projects.

Under the erstwhilesystem, a real estate firm had to transfer an asset into a special purpose vehicle (SPV) to

enable Reit investment. If Sebi allows investment into securities of realty companies, a Reit will directly be able toinvest in shares of compliant real estate firms, said an expert.

However, some believe a Reit should ideally target investment into a yield-generating asset, instead of shares of

realty companies, to ensure better clarity on returns.

Increasing the investment limit to 20 per cent in real estate equity doesnt come across as an investor-friendly

move, as it could increase the level of risk. A Reit should prefer investing in yield-generating assets, said Gautam

Mehra, executive director at PricewaterhouseCoopers (PwC).

Sebi might also revise downward the minimum asset criteria for a Reit to Rs 500 crore from the earlier proposed Rs

1,000 crore. This is to enable more issuers to tap this product.

The regulator could, however, double the net worth requirement for investment managers of a Reit to Rs 10 crore.

Experts say other critical issues also need ironing out to ensure success of this instrument. The requirement that a

sponsor needs to have real estate experience has to be done away with. There are a lot of entities with real estate

holdings but no real estate experience, which will be left out due to this, said Ruchir Sinha, co-head private equity

and head of private debt, Nishith Desai Associates.

Sebi in the draft regulation had prescribed a minimum experience of at least five years in property or fund

management in development of real estate. According to sources, the regulator is likely to retain the experiencecriteria for Reit managers. Sinha also said the delisting framework for a Reit has to be put in place so that a sponsor

has clarity on the exits. Right now, a delisting will have to go by what is there in the Companies Act, which is

clearly not feasible for delisting a Reit, as it requires the promoter to purchase all units as against liquidation of a

Reit, said Sinha.

A source said the Sebi board is likely to keep the investment limit for investors unchanged at Rs 2 lakh. As also the

other requirement that a sponsor will be required to mandatorily hold up to 25 per cent as initial holding for three

years and 15 per cent thereafter.
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There had been extensive consultation with market participants and the Union finance ministry, which recently

awarded pass-through status to Reits.

Experts, though, say the pass-through status given by the government isnt on the lines of what the market had

expected. The pass-through status given in the Budget is only on interest income received by a Reit. The question

is what the SPV will do with the debt, since the asset is already completed. Again, capital gains tax exemption is

given only on transferring the share of the SPV, not the actual transfer of the real estate. Such exemption might not

help much, said Sinha.

Law Commission suggests overhaul of arbitration system Key areas include

introducing an institutional model of arbitration in India, neutrality of arbitrators and

providing wide interim powers to arbitrators

associated with the Federation of Indian Chambers of Commerce and Industry. On the issue of neutrality of arbitrators,

the report hit out at the typical procedure followed in public sector undertakings, where one of their own officials is chosen

as an arbitrator to settle disputes. The proposed amendment excludes anybody who is an employee, consultant or

adviser, has or had any business with one of the parties from being an arbitrator. At present, any interim order passed by

an arbitrator does not have any statutory enforcement mechanism. The Law Commission report suggests changes that

will provide more teeth to the arbitrators interim ruling. Other important changes proposed by the report include provisions

of awarding costs against parties, especially in the case of frivolous arbitration cases, regulation of the fees payable to

arbitrators and different schemes for setting aside awards passed in different arbitrationsdomestic, international

commercial arbitrationwith seats in India and foreign awards (where the seat of arbitration is not in India). Shah called

this report a draft Bill, adding that it included all possible changes envisaged, leaving little to be done by the government,

should it choose to accept the recommendations. The government will seriously consider all these recommendations,

said law minister Ravi Shankar Prasad while receiving the report. I proposed to also have wide-scale consultation with

the stakeholders as to how to make the whole arbitration proceedings more friendly, more quicker, more expeditious,

keeping the integrity and transparency of the whole institution of arbitration. New Delhi: The Law Commission of India

on Tuesday submitted its 246th report to the ministry of law and justice, suggesting an overhaul in several areas of the

arbitration law in the country. The commission, chaired by former chief justice of Delhi high court A.P. Shah, in its most

recent report recommended bold changes to the arbitration procedure in order to achieve the objectives of fairness,


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speed and economy in resolution of disputes. Key areas that the recommendations focus on include introducing an

institutional model of arbitration in India, neutrality of arbitrators and providing wide interim powers to arbitrators. On the

institutional model of arbitration, the report said that by way of proposed change, the apex court and the high courts would

encourage parties to refer disputes to this mechanism. The report praised the efforts of the Delhi high courts international

arbitration centre, the Punjab and Haryana arbitration centre, the Nani Palkhivala arbitration centre in Chennai and the

Indian Council of Arbitration (ICA)associated with the Federation of Indian Chambers of Commerce and Industry. On the issue of

neutrality of arbitrators, the report hit out at the typical procedure followed in public sector undertakings, where one of their own officials

is chosen as an arbitrator to settle disputes. The proposed amendment excludes anybody who is an employee, consultant or adviser,

has or had any business with one of the parties from being an arbitrator. At present, any interim order passed by an arbitrator does not

have any statutory enforcement mechanism. The Law Commission report suggests changes that will provide more teeth to the

arbitrators interim ruling. Other important changes proposed by the report include provisions of awarding costs against part ies,

especially in the case of frivolous arbitration cases, regulation of the fees payable to arbitrators and different schemes for setting aside

awards passed in different arbitrationsdomestic, international commercial arbitrationwith seats in India and foreign awards (where

the seat of arbitration is not in India). Shah called this report a draft Bill, adding that it included all possible changes envisaged, leaving

little to be done by the government, should it choose to accept the recommendations. The government will seriously consider all these

recommendations, said law minister Ravi Shankar Prasad while receiving the report. I proposed to also have wide-scale consultation

with the stakeholders as to how to make the whole arbitration proceedings more friendly, more quicker, more expeditious, keeping the

integrity and transparency of the whole institution of arbitration.

4 lessons from Bill Gatess favouritebusiness bookBill Gates recently revealed that his favourite business book is Business Adventures, a 1969 collection of New Yorker articles by John

Brooks that illustrate the formation of the modern American corporation. Here are some of i ts k ey lessons that are st i l l appl icable

today

Innovators need to keep innovating

Gates writes that one of the most instructive stories in the book is the article, "Xerox Xerox Xerox Xerox." After the Xerox 914 hit the

mass market in 1960, "xeroxing" a document soon became office parlance. Five years later, Xerox brought in $500 million in revenue.

Move a few years into the future, Xerox's leadership became comfortable resting on its laurels. This attitude would eventually lead to


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huge losses in the late 1970s as competitors started releasing their own photocopiers. But because Xerox executives didn't think these

ideas fit their core business, they chose not to turn them into marketable products. Others stepped in and went to market with products

based on the research that Xerox had done. Gates says, "I'm not alone in seeing this decision as a mistake on Xerox's part."

Don't let egos trump research

Another one of Gates's favourite case studies is the story of the Ford Edsel, which remains one of the most disastrous product launches

in corporate history. Ford's executives decided that they would use research to develop the perfect car for middle-class Americans. Its

designers and marketers spent two years gathering suggestions from the public and testing on focus groups. But after all that research,

Ford's executives did what they want ..

Don't get into a situation you can't get out of

Before the car was finished or even named, Ford began promoting teasers for the 'E-Car,' which promised to revolutionise the

automobile industry. Brooks says that the executives never even considered failure an option. The stock market took a nose dive in the

summer of 1957, and people stopped buying mid-priced cars. The Edsel was set to launch in 1957. Had Ford's leadership acted more

cautiously and avoided betting so muc ..

If you fail, accept it, learn and move on

Despite the countless mistakes that Ford's leadership made with the Edsel, Brooks found that no one would take responsibility for the

failure and felt they had done everything right. Edsel marketing manager JC Doyle even tells Brooks, "People weren't in the mood for

the Edsel... What they'd been buying for several years encouraged the industry to build exactly this kind of car. We gave it to them, and

they wouldn't take it. Well ..

Worlds 10 best beersIf you downed several gallons of beer on World International Beer Day last week, here's some information straight up your street.

Homebrewwest. ie launched a new infographic on the best beers from around the world. Sadly, our home grown beer brands did not

make the ranks, but check this list:

Australia .. Coopers Extra Strong Vintage Ale This ale imparts full flavours, suitable for maturation, and is stored

under cellar conditions.

Fact: Nearly 69.7 million litres of the beer was sold in 2013.

Canada

Dieu du Ciel Peche Mortel This stout beer is bitter in order to favour preservation. It was historically brewed to support the long voyage

taken to export the beer from England to Russia.


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Fact: The word Imperial comes from the fact that the beer was brewed for the Russian tsar's court

Germany

Paulaner WeiBbier Paulaner WeiBbier gives off an aroma of wheat, with undertones of sweet and spice.

Fact: It is among the most popular beers served at the world-famous Oktoberfest.

USA

Ale Smith Speedway Stout Ale Smith Speedway Stout pours black with a dark brown head. The aroma has a strong

coffee element to it.

Fact:Ale Smith was awarded 'Small Brewing Company and Small Brewing Company Brewer of the year' at the Great American Beer

Festiva ..

Belgium

Rochefort 10 Rochefort 10 is famous in the beer world for its rich multi-layered flavours.

Fact: The recipe for this beer is almost 420 years old!

Scotland

Highland Orkney Blast Orkney Blast has an aroma that is light, sweet and malty. The taste has some strong citrus notes


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and a distinct oakiness. It is malty with fruity and herbal hops.

Fact:Beer has been produced in Scotland for approximately 5,000 yea ..

Thailand

Chang The domestic Chang has a malty, almost grassy aroma, and is light in flavour. The beer has a decent body

and a lingering finish, which hints toward the bitter side.

Fact: The two 'versions' of Chang are very different. The export is a 100% malt be ..

Russia

Nevskoe-Klassicheskoe Nevskoe has an aroma of bread, with grassy and metallic notes. The taste has a slight citrus, dry grass feel to

it, with the overall flavour reminiscent of rye and metal.

Fact: In Russia, beer is second only to vodka and is seen by m ..

Korea


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Hite Hite lager is sweet and golden, with thin body and minimal head. It is based on American rice lagers

such as Budweiser.

Fact:Hite is the top- selling beer in South Korea. Mexico Bohemia Bohemia has a significant hop flavour and is quite dense,

given its .. clarity. While it is one of the lesser known Mexican beers worldwide, Bohemia has a better reputation than

Corona. Fact: The beer is named after the Bohema region of Corona

Meet The Woman Who Cuddles With Strangers For

$60 An Hour"Let's hold hands and cuddle up on the couch, or listen to some soft music while we

curl up in your bed - I am happy to be the big spoon or the little spoon."

This is one of the first things you'll read when you visit Samantha Hess'

website,Cuddle Up To Me.

At the age of 30, Hess is a professional cuddler. For $60 an hour, she'll intimately

snuggle with strangers of all types, and bring them one-on-one cuddle time without

the complications of a relationship.

The idea came to her in 2012, when she read an article about a guy with a "Free

Hugs" sign at a local Saturday market. Another man stood next to him with a

"Deluxe hugs, $2" sign, and ended up getting more hugs than the first guy.

"That was my lightbulb moment," Hess says. "I was at a place in my life, out of a 13-

year relationship, where I needed a service that didn't exist. I was struggling and not

ready for another relationship, but still had an inherent need to be accepted and

loved."
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Hess didn't know where to turn. She wanted physical comfort that was safe and

socially acceptable to reach out to.

So in May 2013, she started Cuddle Up To Me. A month later, a local newspaper

featured her business in its annual "Best of Portland" issue, which helped the

company gain traction. From there, the story spread to over 40 TV stations across

the country, accumulating over 17 million views - and her business took off.

Currently, professional cuddling is her only job, and Hess says she is making far

more money from this business than she did in her previous jobs as a customer

service representative or personal trainer.

"It's definitely enough to make a living just doing this job, and I never need to take

more than five sessions a day," she explains. By working six days a week, Hess can

make up to $7,200 in a month.

About 90% of her clientele are men between the ages of 20 and 75, and she says

many suffer from severe traumatic diseases or disabilities that prevent them from

having frequent human contact.

"I call my service a 'massage for the mind,'" says Hess. "It's meant to rejuvenate you

and make you feel that openness and happiness in your brain by resetting your

system from top to bottom."

Within 24 hours of her first session with a client, Hess usually gets a phone call or

email about how much it meant to them. "I can't tell you how many times I've had to

turn down tips, because people are so excited about it," Hess says.

What makes her service so great? Hess loves each and every one of her clients with a

"human grace." "It's about being able to genuinely look anyone in the eye and make

them feel loved and accepted exactly as they are," she says. "My clients know that Idon't judge them at all, I just accept people." She treats everyone like her family, no

matter who they are.

Plus, Hess will go almost anywhere for a cuddle session, whether it's a love seat in a

movie theatre, local park, or their bedroom. What's most important to her is keeping


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her client comfortable. She has pre-arranged cuddle mixes and meditation music to

set the mood. Hess will even wear make-up, a certain color of clothing, or specific

hairstyle if her clients request it.


18/40


19/40

Carla Axtman

Samantha Hess, 30, is a professional cuddler.

For her clients who are less comfortable with physical contact, she also created her

own cuddling positions.

"The Tarantino," for example, is for those who want to keep their personal space.

"We sit facing each other with a good three feet between us, but our knees go over

each other's, and we're cuddling with our legs and arms," says Hess.

Although rewarding, Hess' work doesn't come without challenges. "It can be a little

tough, because my clients get extremely attached to me," she says. One gave her a

physical key to their heart. "It was the sweetest thing, but I had to remind him what

the service is, and that we weren't going to be anything romantic," she recalls.

She is quick to prevent any inappropriate actions, through her in-person vetting

process, a full-page waiver with preset rules and boundaries, and transparency with

her clients. "In our culture, the only experience someone has with this kind of

touching has been in a romantic sense," says Hess. "It's not always easy for people to

switch their brains to simply being platonic about it."

Hess emphasizes that it is only appropriate to touch her where it would be okay totouch a child. If she's uncomfortable with anything, she gives her client two taps to

signal for them to stop. "If they're looking for a replacement for sex, they're not

going to be happy with my service," she says.

This work also comes with its share of emotional burdens. "It can be very draining,"

she says. "Some people have difficult emotional issues they want to talk to me about

during our sessions." To cope with this, she meditates before every session. She also

showers and changes into different clothes afterwards, because she wants to makesure she's completely fresh in both her mind and her body before taking on her next

client.

Hess has a boyfriend who is very accepting of her service. "He knows what I do is a

form of therapy and that it really makes a difference to people," she says.


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Next month, Hess will open her first retail store and create a national cuddling

certification through a 40-hour-long training program. "This is my life's work. I

want to change the view of Western culture on platonic touch," she says. "Everybody

should have a way to reach out and feel comfortable with that."

Indian lawyers in demand: Foreign law firms queueing up to hireIndia expertsMUMBAI: Foreign law companies including UK's magic circle firms are strengthening their India desks by adding

experienced dealmakers in Singapore and London, as building investor confidence towards India is expected to drive

cross-border mergers and acquisitions.

Market experts say they see deal activity picking up with companies exploring M&A as well as fundraising opportunities,

as the economy is projected to turn around after two years of sub-5% growth.

Foreign firms are hunting for Indian lawyers with dual-qualifications - qualification to work in India and abroad. Indian

regulations prohibit foreign firms from having an office in India or advising on Indian law. They, however, can do this in

cooperation with the Indian bar and work with Indian law firms.

"We've observed a small, but encouraging trend of professionals move to magic circle firms at the junior to mid-level," said

Lee Ignatius of Vahura, a legal search, recruiting and consulting firm. "Given the change in the government and the new

budget, we hope to see these numbers rise."

The top five commercial law firms in the UK - Allen & Overy, Clifford Chance, Freshfields Bruckhaus Deringer, Linklaters

and Slaughter and May - are referred to as magic circle firms because of their global spread, the large number of lawyers

they employ and revenue.

"Vahura is receiving increasing number of queries from top US and UK firms looking to hire Indian talent for their India

practices," Ignatius said.

Nilufer von Bismarck, one of the two partners responsible for the India desk at law firm Slaughter and May, said it gets

India-related queries across a number of practice areas and industries. "We are seeing a steady increase in work coming

out of or related to India and share the optimism of clients and others in the UK that such work will continue."

The firm had advised a number of foreign clients in India-related deals, including representing liquor major Diageo in its

acquisition of United Spirits' stake. It was a key adviser in Ratnakar Bank's acquisition of a part of RBS India's businesses

and GlaxoSmithKline's buyback offer to shareholders of its Indian unit. Itg also advised US drug maker Mylan in its

acquisition of Agila Specialties.

According to a 2013 report of London-based RSG Consulting, the India's commercial legal market was worth $1.07 billion

based on the external legal expenses of the ET 500 Indian companies. The figure represented a 43% increase compared

with three years earlier, or an average 13% growth each year a modest rise compared with India's economic growthand inflation over the same period.

UK-based Clifford Chance, whose India practice stretches back to more than five decades, confirmed the trend of

increased capital market activities.

"We expect to see a continued high level of capital markets activity, as well as foreign investment flows into India over the

next six to 12 months," said Sue Warner, marketing and communications manager for Asia Pacific. "Since the elections,

we have seen a surge in capital markets activity. Indian companies are keen to raise capital to reinvigorate themselves,


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particularly in infrastructure projects, telecoms and aviation. International investors including pension funds, sovereign

wealth funds and other institutional investors are equally bullish on the prospects of Indian growth."

Recently, Clifford Chance had advised GMR Infrastructure in raising $246 million by selling shares to institutions in the

US.

A senior partner of a US-based law firm said his was looking for at least 10 Indian lawyers with 5-to-7 years of experience

and dual qualifications in India as well as in US or UK. "This new team will be spread across the geographies, but mainly

work from our Singapore and London offices," he said.

He didn't want him or his company to be named because that could jeopardise the firm's on-going hiring process.

Meanwhile, Sarosh Zaiwalla, senior partner at Zaiwalla & Co, the first law firm to have started by an Indian in the UK, said

there was a considerable increase in British companies wanting to start business in India. "Realistically, it will however

take a few months for the interest to be converted into real start of business by these British companies in India," said

Zaiwala, who's firm's India desk has five lawyers.

Zaiwala & Co is adviser to many Indian groups including Tata and Godrej and public sector companies such as Indian Oil

Corp, Oil & Natural Gas Corp and State Bank of India in the UK.

"We have seen a sharp increase in outbound work from India, given the exponential growth of Indian corporate houses,as also Indian entrepreneurs who have with the support of our practice and expertise have started working and instructing

foreign law firms," said Sameer Tapia, founder & senior partner of ALMT Legal, a firm that was started in UK which now

has offices also in Mumbai and Bangalore.

Maharashtra drops sea-links for Mumbai, opts forcoastal road.Mumbaikars can now expect a pollution free ride along the western coast as the Maharashtra government has

submitted its proposal to the Centre to construct 35 km coastal road between Nariman Point and Kandivli in the

western suburb. The project, with about 18 access points along the entire road, entails an investment of Rs 8,000

crore. The government will soon appoint the state run Maharashtra State Road Development Corporation (MSRDC)

or the BrihanMumbai Municipal Corporation (BMC) as the nodal agency for the project which will be implemented

through a joint venture route.

Chief MinisterPrithviraj Chavan admitted that thesea linkproject was not financially viable and therefore the six

lane coastal road has been proposed. The project envisages reclamation of land and construction of stilts especially

on mangrove patches. Chavan informed that he has submitted the coastal road project proposal to minister of state

for environment and forests Prakash Jawadekar during latter's recent visit in the city.

With Chavan's announcement, the government has given a silent burial to the Rs 5,000 crore Worli-Haji Ali sea link

project awarded to the Reliance Infrastructure. The concession agreement was signed betweenMSRDC and

Reliance Infrastructure in June 2010 but the project could not take off due to administrative and environmental

issues. Reliance Infrastructure will exit from the project. However, the state government has yet to formally scrap

the project which would have completed by now.

Sushil Jiwarajka, former chairman of FICCI's western region told Business Standard ''Given the acute shortage of

land for expanding mass transport system, the idea of coastal road seems to be the most viable option. Detailed
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feasibility studies be undertaken at the earliest. Precious time has already been lost on studying various options and

it it time to take action and complete the project in a time bound manner.''

However, a government official said that the costal zone regulation (CRZ) clearance is key for the project to take

off."The possibility of development of coastal road emerged in February 2011 after the modification to the Coastal

Zone Notification where-in construction of roads on stilts have been allowed as a permitted activities. Section 3 of

CRZ Notification provides land reclamation as a prohibited activity,'' the official added.

Incidentally, a section of fishing community has already voiced their opposition to the coastal road project. ''The

government will have to take the fishing community into confidence before finalizing the proposed coastal road.

There are 35 fishermen colonies with more than 1 million population on the western coast. The coastal road will

adversely impact the livelihood of those depending on fishing activity,'' said Damodar Tandel, president,

Maharashtra fishermen action forum.

Coastal Road Ride for Mumbaikars

*Project is being considered after the revised CRZ notification issued in February 2011

*Government plans to do away with sea link projects citing financial non viability

*MSRDC orBMC to be nodal agency

*Project to be developed through JV route

Parts of Parel highrise may berazedNauzer K Bharucha

Mumbai:

TNN

Parts of a new 21-storey residential tower in Parel could soon face the civic demolition squad, a

year after TOI reported about the violations.

A BMC report has confirmed that Isa Enterprises built more than what was sanctioned by the

authorities.

The developer has constructed an entire 21st floor and part of the 20th floor without permission

from this department,'' said the civic report, which was submitted to the ward office two weeks ago.
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The case was pursued by some tenants of Fitwalla and Vakil chawls, who are to be rehoused in

Royal Palace's first few floors for free. The remaining apartments in the redevelopment project near

Elphinstone Road station can be sold.

Assistant civic commissioner (G-south ward) Keshav Ubale said his office had received a report

about the violations and would issue a demolition notice to the developer. The BMC had issued a stop

work notice in April 2013 for work carried out beyond the approved plan. It found that room

measurements on the ground floor for the society office and meter rooms, and other measurements

such as staircase width, entrance lobby and lift were not as per the approved plan. The mandatory

fire refuge on the 7th floor had toilets, while the service duct on the 14th floor did not exist, said the

report. The 3rd floor parking area had unauthorized walls and the meter room was located

elsewhere.

You are requested to take further necessary action immediately under intimation to this

department,'' said the report submitted to the ward office. The builder, Irfan Qureshi, was not

available for comment.Royal Palace commands a price of over Rs 25,000 a sq ft. Last year, the

builder, dragged to court by the tenants, told a division bench of the court that it did not intend to

sell premises on the third and fourth floors; as far as the seventh and 14th floors were concerned,

and only flats sanctioned by the BMC would be sold. Parts of the two floors were marked as refuge

areas, where, the petitioners said, the builder had started constructing apartments.

It was specifically agreed by the developer at the time of obtaining an NOC from the tenants

that they would be rehoused and reaccommodated in the proposed tower up to the 13th floor. The

first three floors were meant for parking, but he illegally (made constructions on the 3rd floor) by

reducing the parking area, as required by the BMC, said the plea, which was later dismissed a fter

the builder undertook to rectify the violations.
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India Inc wants new Companies Act overhauled

NEW DELHI: Meeting the mandatory 2%corporate social responsibility(CSR) spend is proving to be a

headache for some large public sector undertakings (PSUs), given the large sums involved.

For instance, 2% of ONGC's net profit translates into close to Rs 450 crore for CSR, around Rs 350 crore

forIndian Oiland over Rs 50 crore for SAIL. "It has led to the rise of a new class of consultants, who areadvising companies on how to spend the money. Suddenly, some NGOs have cropped up," said a senior

PSU executive, referring to the stipulation in the new Companies Act.

For several large corporate houses, which have traditionally spent funds on building and running hospitals

or schools through trusts, it means a complete overhaul of the spending pattern as companies have to do it

directly. A top executive at a conglomerate, which has interests across sectors, said the group's IT

company is the only one which does not meet the 2% spending requirement but the restrictive rules are

not making life easy.

As the implementation of the new Companies Act kicks in,CSRis only a small worry for most companies

asIndia Incis now waking up to issues that threaten its day-to-day operations. Some go to the extent of

demanding a repeal of the law.

"The government needs to consider doing away with the entire law given that it has so many holes that it

will be difficult to repair it, and replace it urgently by a well-drafted law prepared in consultation with

private practitioners.

The current law has done long-term damage to India Inc though it has a few good concepts albeit badly

drafted. The new Companies Act will have a material impact on ease of doing business," said corporate

lawyer Cyril Shroff.

There are so many concerns that industry chamber CII's representation exceeds 60 pages.

The problems start with registering a new company and lawyers say that instead of a few days, it will it

take weeks to register one now. Similarly, the government wants companies to begin their accounting year

from April 1, unless they can get an exemption from the National Company Law Tribunal. But the

government is yet to constitute the tribuna l.

There are others related to fund-raising, since the new law requires companies to set aside 50% of the

money raised into a debenture redemption reserve. "This will mean that if companies need Rs 500 crore,

they actually need to raise Rs 1,000 crore as half the money is set aside. It will raise borrowings costs

significantly," said an investment banker. There are several other clauses, ranging from a more time-

consuming process for issuing debentures.

In its bid to crack down on inter-corporate loans, the government has introduced provisions that are tough

to comply with or raise the cost significantly. "There are several problems. There are issues where there is

a lack of clarity, there are those where additional time for compliance is required and there are others

where the government has tried to deal with the problems through the rules but has ended up with a

situation where the rules override the provisions of the Act," said Sai Venkateshwaran, partner and Indiahead of accounting advisory services at consulting firmKPMG.

The biggest concern is about directors, right from who can be on a company board. Then, there are issues

such restriction on independent directors being on the holding company and the subsidiary. The law also

provides that at least one director has to be in India for not less than 182 days, which can be tricky in

private and foreign companies. The new law also prescribed that an independent director should have "no

pecuniary relationship with the company", which CII has said lacks clarity as purchase of soap from

aFMCGcompany by an independent director on its board can be interpreted to mean deriving "pecuniary
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benefit".

Even the mandatory appointment of at least one woman director is seen as a problem, and companies

have sought to overcome it by appointing the promoters' family member.

"There is a huge shortage of independent directors as all companies, listed or unlisted, need them. And,

given the responsibilities thrust upon them, not everyone wants to be an independent director," said a

leading investment banker, who did not wish to be identified.

There is much more responsibility on auditors, including what Venkateshwaran describes as going past

the audit mandate and is beyond their capability. For instance, the auditor now has to look at themanagement's decision making.

Even some aspects dealing with M&As are going to be affected, said Amrish Shah, transaction leader at

Ernst & Young. For instance, the law restricts merger of companies from some foreign jurisdiction with

Indian companies.

The fear is a company in a tax haven may not be allowed to be merged with an Indian company. "The

government is yet to notify these jurisdictions but it is tough to understand why this kind of a provision is

required," he says.

Smart ways to gain from SIPs

Systematic investment plans are the best way to invest for your goals. Here are some smart strategies to

make the most.

Ask anyfinancial plannerthe mantra for creating wealth in the long term and he would advise regular,

disciplined savings in a carefully chosen basket of investments that suits your risk profile. Shorn of jargon,

what this means is a systematic investment plan (SIP) in a good mutual fund can create wealth in the long

term. SIPs are not only for the long term. You could be saving for the down payment of your house 15

months away or for your child's college education three years from now. "AnSIPis the ideal vehicle for

goal-based investing as it allows you to plan ahead and harness different asset classes," says Vidya Bala,

head of research, Fundsindia.com.

We will look at a few smart strategies that would maximize the gains from SIPs.

1. Link SIPs to financial goals:Any investment must have a purpose. I could be saving for your

retirement, your child's marriage or a foreign holiday. It will no only let you monitor the progress of the

investment for that goal, but also tell you ho much you need to save ever month. For instance, if you have

to save Rs 10 lakh for the down payment of your house in two years, even an SIP of Rs 15,000-20,000 a

month won't serve the purpose. "If the objective has not been clearly articulated, you may miss that

target," saysNeeraj ChauhanCEO, Financial Mall. Spelling out the goal lets you choose the mostappropriate asset mix for achieving it. If you have more than 10 years, the asset mix should be heavily

tilted towards equities (70:30) as the time frame allows you to take more risk. For short-term goals of, five

years or less, debt investments should form the major chunk of the portfolio.
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2. Increase SIP amount every year:Although SIPs help you invest regularly, it does not mean you

should keep the amount fixed over the entire tenure. As your income rises, your savings must also go up.

This means you can target larger goals even though your current income does not allow big investments.

For example, if you require a corpus of Rs 25 lakh after 10 years with 12% returns, you would need to

invest Rs 11,000 every month, but if you increase the contribution by 10% each year, you would only need


27/40

to invest Rs 8,000 in the first year.

The step-up SIP can have a dramatic effect on your longterm savings. As the graphic shows, even a 10%

increase in the SIP amount can give you a 45% bigger nest egg. This is why the Provident Fund, which

links the monthly contribution to the basic salary of the member, is so effective as a retirement savings

tool.

There are other benefits from the step-up approach as well. One, you reach your goal faster if the amountyou need is fixed. You may have targeted to save Rs 20 lakh for your child's education in 10 years, but

increasing the SIP amount would help you achieve it in just nine years. Besides, if you raise the SIP

amount, it will prevent you from blowing away the money if your income goes up. "It will automatically

prevent you from indulging in excessive spending," says Chauhan.

The surplus savings need not be directed to an SIP in another scheme. Instead, one can simply increase

the existing SIPs. Having separate SIPs for different goals does not mean that you invest in different

funds. For some goals, you may invest separately in the same set of equity funds. If you have 4-5 different

goals, you can plan for them using the same set of equity funds. "It is better to invest in a limited number

of funds," says Sumeet Vaid, CEO, Freedom Financial Planners.

The step-up SIP is a potent tool for new investors who don't have a high income. Many get intimidated by

the huge savings required for certain goals, such as buying a house or retirement planning. Instead of

losing heart, they should start saving small amounts and then scale up as their income goes up.

Suppose you need to invest Rs 10,000 a month for a certain financial goal. If your current income does not

permit that right now, don't junk the plan altogether. Start with Rs 5,000 now and gradually increase it by

Rs 500-1,000 a year as per your convenience. "A step-up approach can be used to gradually start moving

towards your desired goal with whatever savings you have at the time," says Bala.

3. Stagger the SIPs to avoid bunching:Fund houses have specific dates on which SIP investments

are made.

Whether you are planning an SIP through the same set of funds, or different funds for each goal, it would

be wise to stagger each investment across different dates of the month. So, if you have four active SIPs,

spread them in a way that each SIP is made on a different date of the month.

This allows you to retain some liquidity in your savings account since the money does not flow out at one

go. The bigger advantage is that you reduce the risk of market timing because the money gets invested on

different days, negating any adverse market movements in the interim. If you are adding to an existing

SIP, while giving a fresh mandate for the additional investment, you can specify any other date of themonth on which the SIP instalment has to be paid out.

Having said that, the SIP mode is supposed to make life simpler for the investor. However, some variants

of SIPs defeat the purpose. For instance, the Value Investment Plan offered by some fund houses keep

varying the SIP amount on the basis of the returns the fund has generated. If the fund does well in a

particular period, the next SIP is lower because the corpus is already bigger than planned. If it does poorly

the SIP amount goes up to account for the shortfall. Such investments only complicate things for the


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investor and should be avoided. Only extremely sophisticated investors should go for these plans.

Then there are fortnightly, weekly and daily SIPs as well.

We calculated the returns for several options in the past five years and found that there was no significant

difference. The daily SIP is very cumbersome. The monthly option is the best because it coincides with the

income flow of the salaried person. The quarterly SIP has done well, but its returns are very volatile. Also,

it will entail a lump-sum payment s equal to three monthly SIPs.

4. When to review your SIPs:Even the best laid plans can sometimes go awry. This holds true for y

SIPs as well. You may have chosen the best fund, but there s is no guarantee that it will keep performing

well. Similarly, an unexpected turn of e events could upset your calculations. "A yearly review of s your

portfolio will keep you moving in the desired direction. If you have strayed from the path, you can make

timely changes that will ensure you e get back on track," says Bala.

Here's how to go about it. First, check whether your asset allocation is in synch with your original asset

mix. If the portfolio is skewed towards a e particular asset class, you t need to rebalance it. Next, check the

corpus accumulated against each goal to see if you are on track. Compare the performance of your fundsagainst the return assumed at the time of investment. "If the, fund you invested in has generated less than

the assumed return, you might be falling short of your desired target," cautions Chauhan. If the

underperformance is because the broader market is in slump, then all you need to do is rebalance the

portfolio. If the fund itself is underperforming, then it is a red flag and you should switch to a better fund.

Ending an SIP is almost as important as starting it. Continuing the SIP perpetually may not always be the

right approach. At some point, you will have to get out. How do you decide when to stop? If you are not

investing for a specific goal, this decision won't be easy. But if you have certain target in mind, you can end

the SIP as the goal draws near. If the goal has been reached before time, it is advisable to shift the money

out to a stable option. Exposing it to the market's vagaries for the remaining tenure will not be a wise

move. "Where the money requirement is for a bullet payment like a wedding expense, you must ensure

that you set aside the amount much before the goal dead line," says Raghvendra Nath, managing director,

Ladderup Wealth Management.

On the other hand, if you have not managed to save the required amount, you may need to consider

whether you wish to continue with the same SIP. If it is not performing in line with its peers, you may have

to switch to a better alternative.


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Final ad norms on fairness creams in two monthsTheAdvertising Standards Council of India (ASCI) is likely to release the final guidelines on marketing fairness and

lightening creams in two months. The draft guidelines, for whichASCIhas sought industry feedback till June 15,

attempt to clamp down on stereotypes such portraying dark skin in a negative light. They also dissuade advertisers

from making tall and exaggerated claims about products.

The guidelines ask advertisers not to link skin colour with any particular class, community, race, religion, ethnicity orprofession.

Those in the know say this is the first time ASCI has attempted to go beyond its traditional role of monitoring ads,

as fairness creams, the market for which is estimated at about Rs 3,000 crore, have often been blamed for

promoting the notion that fair is beautiful.
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RULE BOOK

The draft guidelines attempt to clamp down on

stereotypes such portraying dark skin in a negative

light.

They also dissuade advertisers from making tall and

exaggerated claims

The guidelines ask advertisers not to link skin colour

with any particular class, community, race, religion,

ethnicity or profession

Shweta Purandare, secretary-general of ASCI, says, "A section of society felt ads pertaining to fairness products

derided people with dark skin. Therefore, there was a need to provide guidelines so that both creators and

evaluators of such ads were clear on what would be considered deriding skin colour."

A Hindustan Unilever spokesperson said, "We welcome ASCI's move to further strengthen the guidelines. This will

help promote transparency in advertising in this segment."

A Garnier (part of the Lreal Group) spokesperson said, "We strongly believe advertising should not encourage

social discrimination of people based on aspects such as skin colour. All Garnier communication focuses on the

efficacy of products and is, importantly, backed by scientific facts. Our conviction is there is no single model for

beauty; the appearance and physical features of each person is unique. We are dedicated to understanding and

serving those differences with the diversity of our products."

Mohan Goenka, director, Emami, said, "We are evaluating the draft guidelines. As responsible corporate citizens, we

do not believe in promotion of social discrimination and racism."

While experts have welcomed the move, some say it is unfair to targetfairness creams alone. "Stereotypes exist inall product categories. Almost all content we consume has some stereotype or the other. Is it right to target fairness

creams?" asks K V Sridhar, chief creative officer of digital agency SapientNitro. Earlier, Sridhar worked with Lowe

Lintas, which made advertisements for Hindustan Unilever's Fair & Lovely brand.

"Advertising comes from observation and consumer insight. It is rooted in reality. Therefore, to come up with

guidelines pertaining to advertising of these products would be incorrect. At best, you can influence social norms; I

don't think you can change these," he says.

Privately, advertisers admit the matter is being furiously debated in industry circles. A senior executive at a personal

care company says, "The draft guidelines have opened a Pandora's box. Let see where it goes."

Is EMI on credit card helpful?

While this might reduce your spending capacity for some time, it could prevent your credit score from

falling
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Every time you swipe yourcredit card for a big amount, you get a message from your bank asking if you want to

pay throughEquated Monthly Instalment (EMI). But how hassle-free and attractive is this option?

While the use of credit cards as a mode of payments has caught on well, most people don't realise the perils of

reckless use of credit cards. If you spend beyond your repaying capacity and do not pay your bill on time, most

credit cards charge prohibitively high interest rates in the range of 36 per cent and 45 per cent.

So, how does one deal with this? One way is to opt for theEMI route that comes at lower rate of interest. Let us

find out how to go about it.

It is important to know whether your card has an EMI facility. Most of the large banks that are active in the credit

card segment offer this facility. Banks permit an outstanding of up to Rs 5 lakh for EMI facility and the rate of

interest charged is in the range of 16 to 22 per cent.

TO OPT FOR EMI OR NOT

Credit limit is reduced to the extent of the principal

outstanding and is freed as you keep repaying

Keep an eye on credit limit during the entire EMI

period, which could extend up to two years

The one-time processing fee will add to your cost

Do not use EMI facility as a source of leverage

Use it only if you are on the verge of defaulting on a

payment

So, check with your card-issuing bank whether it offers the facility or not.

If your credit card does not offer the option to repay through EMI, then you can either opt for a personal loan or

transfer your balance to some other credit card to ensure timely repayment of the outstanding amount, failing

which you have to bear high interest rate on the credit card. This may pull down your credit score if you fail to

repay time.

On the other hand, if your bank does offer the facility to repay your through EMI, there are some factors you need

to be aware of.

Credit limit is reduced

The moment you opt for an EMI repayment arrangement, the credit limit is reduced to the extent of the principal

outstanding. As you keep repaying through EMI, the credit limit is freed.

To put it simply, opting for EMI can block yourspending capacity in the subsequent months. This can be a big issue

if you are dependent on your credit card either to fund your future expense or for some routine payments.

A bank may offer EMI facility for as up to two years. This means for two years the credit card holder has to bear
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with lowered credit limit. Banks do not increase credit limit of a credit card when outstanding amount on that card is

being paid through EMI. You have to be careful that you don't exceed the credit limit while using your card

throughout the tenure of the EMI facility.

Processing fee

Another factor you need to bear in mind is the one-time processing fee that banks charge to initiate EMI option.

This fee is charged upfront and adds to the costs to be paid by you. The fee is generally expressed as a percentage

of the loan availed on EMI option. Usually, it does not exceed Rs 5,000. You can negotiate this amount, and if you

are a loyal customer of the bank for a long time, the bank may even choose to waive it. In some cases, the bank

may partly waive the processing fee and ask the credit card holder to pay the remaining up-front.

Insurance option

Some banks also offer insurance option to a cardholder. For an extra charge towards premium, insurance

companies offer to pay the outstanding principal in case of an eventuality. The premium is added to the outstanding

amount and the credit card holder is intimated accordingly. The EMI amount takes care of both - the outstanding to

be paid and the premium to insure the person. This insurance arrangement helps in payment of outstanding to the

bank. It is a win-win situation for all three parties involved- the cardholder, the bank and the insurance company.Besides this, opting for an EMI option can help an individual save his/her credit score from falling.

Given these advantages of paying a credit card bill through an EMI option, a question that merits attention is: Is

this the right and profitable way of repaying your credit card bill? The answer is no. You should spend when

needed. You must remain within the limits defined by your monthly income.

Typically, it is seen that impulse purchases, during festive season or sales, lead to increase in use of EMI facility by

credit card users. Avoid such situations by preparing a list of items to be bought,with the price limits.

EMI facility is not to be seen as an enabler and a source of leverage when one is on the shopping spree.

You must think of EMI option if and only if you are on the verge of defaulting a payment. While it is useful to tide

over a temporary cash crunch and can save your credit score from going down, it can be a burden on your finances

for a prolonged period of time. Also, too many EMI arrangements also impact credit score adversely.

Beas tragedy: Be ready to compensate parents, HC tells state

The Himachal Pradesh High Court on Monday expressed its displeasure over the state government's report on the

Beas river tragedy in which 24 engineering students from Hyderabad were washed away and directed it to file a fresh

one by June 19 . It asked the HP government to be prepared to pay huge compensation to the bereaved parents.

The court, which took up the matter suo motu on June 10, asked the government to submit a status report by June

16. On Monday, it expressed its displeasure over the report submitted by the authorities. It pointed out that the

divisional commissioner had taken too much time to investigate.

Worried parents of the missing students are still camping in Mandi. On Monday, sophisticated equipment was used

to search for more bodies but yielded nothing. The Himachal government had kept six officials of the hydroelectric

project under suspension pending enquiry.


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Mandi district authorities have declared the missing 16 students dead and started issuing death certificates.

However, they issued them without the state's emblem. Later, they assured the parents of proper certificates. The

district police also handed over copies of the FIR to the parents.

Land acquisition given a makeover with case lawThe Land Acquisition Act, 1894, is a colonial law enacted by the British government which survived and continued

post-independence. This Act authorised the government to acquire the land from privately held person for public

use, at a reasonable price.

Even after independence, the Indian government continued with the 1894 Act. In many instances there have been

issues of acquiring land for private firms leading to protests over displacement and compensation. The fact remains

that land acquisition is unavoidable, infact, given that land is essential for projects, transportation, housing and the

cost of private land is exceptionally high.

Several efforts were made in the past to amend the Act in the favour of land-owners. Some provisions were

amended, but failed to provide relief to the deprived and also increased the cost of investors.

There was a unanimous opinion in the economic and political front that the 1894 Act suffered from variousshortcomings. It had become obsolete and was not able to address the Indian needs for growth and progress.

Why is the regulation of land such an important issue and difficult exercise in most jurisdictions particularly in India?

Existing occupancy and ownerships, disputed claims, multiple approvals, as also resettlement and compensation

requirements create major roadblocks in the process. Hence the right to fair compensation and transparency in

Land Acquisition, Rehabilitation and Resettlement Act, 2013, was passed by Parliament in 2013 to repeal the 1894

Act.

The new Act is an effort to address the historical injustice while speeding up procedures. It expressly provided that

no land can be acquired in scheduled areas without the consent of the gram sabhas. It ensures special enhanced

benefits for those belonging to scheduled castes and scheduled tribes and also provides that no one shall be

dispossessed until and unless all payments are made and alternative sites for the resettlement and rehabilitation

have been prepared.

The new Act redefines 'public purpose' as land acquired for defence purposes, infrastructure projects, or for any

project useful to the general public and stipulates mandatory consent of at least 70 per cent of affected people for

acquiring land for public private partnership projects and 80 per cent for acquiring land for private companies going

ahead this may create further problems than otherwise.

The new Act applies retrospectively to cases where no land acquisition award has been made. Also in cases where

the land was acquired five years

Paper Cutting 2

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