Is some one safe???????

The financial crisis in US has hit every one across the globe, though the impact has been non-uniform depending upon the exposure to the outside world. Japan's largest insurance company going bankrupt, is a recent example of such impact.
Although regulated to a good extent, the Indian bourses are having a bear phase with markets dipping down at a great pace. No expert will suggest anyone to invest in the share-markets. With ICICI Bank being in the news for all the bad reasons, people have started withdrawing their deposits from the bank putting huge pressure on the liquidity condition of India's 2nd largest Bank. Withdrawal of mass deposits is also coupled with the slowing of loan repayments, thereby putting more pressure on the bank. The share-price of ICICI has gone down from Rs. 1300/- to some 300s in no time. The best option that a common man can think of these days is to keep his money under the pillow as it may be the safest place. The so-called 'balanced portfolio' is losing its existence. All the financial laws & theories are being put to test in the prevailing scenario and any good news is something to cheer for, provided it is not accompanied by any unwanted news.

The Rescue Operation

With the whole world being dicey about investing in financial markets owing to crisis at the Wall Street, there is one man who can make all the difference and he is Mr. Warren Buffet. He is a man who has the reputation of turning the tables at any point of time. His investment of $5 Billion in Goldman Sachs has provided the much needed support for he financial markets to stabilize. Rated as the undisputed number-one investor, he is likely to be the opinion leader for rest of the world to follow and the trust in the markets will be revived. It is not only going to benefit Goldman but the entire financial community with the revival of trust of the so-called common investors. What the proposed Federal bailout of $700 billion might not do, can be done by $5 billion of the 'Omaha Oracle'. So it is not only the amount but the source of the amount that can make the difference and if the source is the top-shot Mr. Buffet unexpected is bound to happen.

Lehman-A shock for even a layman

Lehman Brothers has become the buzzword these days. The shocks of the crises of one of the largest investment banks are being felt globally. It is just the intensity of the shocks that can vary across organisations and across countries depending on their exposure to the big daddy. You name any problem or tension these days, whether it be fall in share markets or volatility in currency exchange rates and even B-School placements, the cause is being related to Lehman. The reason for such an impact is not only the direct exposure to Lehman but also the indirect linkages associated with it. The buying of Merill Lynch by BOA has to some extent saved the world from further dire consequences. Now all eyes are on the fate of American International Group (AIG) as it is also sailing in a similar sinking boat as Lehman was sailing which led to its eventual bankruptsy.

Judiciary under Scanner

After 'Independence of Judiciary' and 'Judicial Activism', the buzzword has changed to 'Judiciary under scanner' or 'Judicial Impeachment'. The most respected institution in the country is under threat these days with allegations of corruption being levelled against the Judges. The proceedings of impeachment against a High Court Judge came as a shock in the legal fraternity. Such proceedings are launched very rarely and has been only the second time in the history of Independent India. The weed of corruption has not even left the Judiciary which is characterised as being unbiased and neutral. The Chief Justice is actively trying to remove this weed by taking all possible steps to curb corruption at various level of Judiciary. Granting permission to CBI, for inquiry involving two judges of Punjab & Haryana High Court, is an example of his pro-activeness. If such instances continue over a period of time, the whole institution of judiciary with come under threat of loosing the respect of the general public. However, while taking such steps, a balance has to be maintained so that both the purposes, of curbing corruption as well as protecting the Judiciary from being exploited by the other two organs, viz. executive and legislature, are solved. The mechanisms involved in checking Mal-practices need to be revised and a summary procedure needs to be introduced whereby judicial panels should decide such cases. These panels can consist of Judges of other high courts, retired judges, etc. This procedure can be similar to the cort-martial proceedings in the army which is totally internal . It will protect the Judicial institution as a whole and also keep a check on the judges. Despite having the chances of being called the court of the courts, such a system can be very efficient.

123 India go

The waiver given by the Nuclear Supplier Group (NSG) is indeed a landmark decision breaking the conventions. As discussed in my previous blog, India's statements were to make a lot of difference and it happened so with Austria stating that the last day statements issued by Delhi were decisive enough for it to support the waiver. The impact, that such statements can have, is more than one can imagine.

Now that the waiver has been granted, India is all set to emerge as a major player in Global Nuclear trade after the US Congress gives its assent. However, it remains to be seen that which of the NSG nations actually come forward to trade with India as there may be some nations who did'nt oppose the waiver of not signing he NPT or CTBT but may have their own resevations in actually trade with India.

Crossing Nuclear Hurdles

After having passed many obstructions and being in the news for a long time, the Indian nuclear ship is still not having a smooth sail. With countries like Austria, Ireland, etc. standing in the way it is doubtful that it will reach the shore comfortably.
Having parted with its old allies and joining new ones, the Government has to be very careful in maintaining a balance between its domestic and International positions. With many of NSGs demanding amendments and the fears of opposition, each statement by New Delhi is being carefully observed. Till now, India has taken the right approach of maintaining its stand of not signing any NPT on one hand and issuing statements of being a peace-lover on the other. It has highlighted its policy of not being the first to use weapons. The extent to which we are able to convince the world of our policies and also the benefits of prospective nuclear trade to NSGs, will determine the support provided to India.....

Tatas threatening to tata Singur

The problems in Singur over the Tata project has already had its spillover effects with the production of home brand 'Ambassdor' being hit due to the delay in delivery of spares to the production unit. This delay was caused due to the roads blocked by protests. The annoncement of warning, to move out of West Bengal despite incurring a huge loss, was quick enough the stimulate other States to open their big gates fo Tata. This has made West Bengal CM to intervene and retain their mighty friends. The movement of the current facts is in line wih the story of the movie, 'Sarkar Raj'.
To maintain its Raj in Bengal, the chief minister must call both the Tatas & Mamta Banergee on a common platform, else Bengal may find itsef at the loosing end.

Maa Tujhe Salaam.....

The call by Bombay High Court to the lawyers of the Ambani brothers to approach their mother for resolving the gas issue came as a surprise. Usually the disputes, which are not resolved by mothers or other family mediators, enter the courts while it has been the other way round in this case. Though our CPC also provides for concilliation and mediation among the conflicting paries, but such an advice by the court is definitely a novel thing. If this tussel over gas between RIL and RNRL is resloved by the mother we may find repitition of this act for involvement of elder family members. This is in-fact a healthy trend as there are less chances of having hard-feelings among the disputing parties but the side-effects involve the difficulty in implimentation of such negotiation outcomes which may not have any legal bindings. So, the legal kinngs of both the parties need to be on their toes so as to make the negotiations binding.

Caught on the Wrong foot

The debarring of two high-profile lawyers by the Delhi High Court, in BMW Case, from appearing before it and its subordinate courts for criminal contempt rocked the Indian legal system. The District Bar Council protested against it by announcing a one-day srike. This suo-moto action of the Delhi High Court had many impications. It not only raised the issue of corruption in the legal fratenity which swears by the legal and the professional ethics. Further, the issue of judiciary exceeding its powers again cropped up. There has always been a thin line of distinction between judicial-activism and agressiveness. Though the high court has the the power of punishing for contemp of court under our civil as well as criminal procedures but the matters relating to practice y advocates are handled by the Bar-Councils only. Also the possibility of collusion with the witnesses to make them turn hostile and the role played by the advocates in analysing thevalue of the possible statement of witness and negotiating with them accordingly cropped up. The office of Bar-Councils is challenged if the courts start adjudicating with issues like this. The courts should avoid such decisions as this impacts the bar-bench relationships. There are other modes of punishing for contempt like this. Even if such a controvertial decision is to be taken, the consultation or the advice must be taken from the concerned Bar_Councils to maintain the dignity of the councils ehich have contributed alot in our legal system.

Who wins, who looses

The consideration by the oil ministry of the recommendation of BK Chaturvedi committee to have dual pricing for diesel is a step to lessen the pressure on the oil-companies who are incurring huge losses owing to price rises at the global level. The extra-burden of 46% on the Industrial consumers may be too much for them to bear and they may consider passing the same to their customers. However, since most of the industrial consumers are engaged in power-production and their customers are the large grid corporations, the immediate impact is unlikely.
The major gainers of the dual-pricing are going to be the organisations engaged in producing electricity using renewable sources of energy. This decision will be an icing on their cake as they already enjoy huge financial benefits in the form of tax-holidays and the depriciations. The demand for their products is likely to go northward with the increase in fuel costs for the thermal plants. It remains to be seen how the Industrial consumers of diesel - mostly the big guns react to the situation. Who knows, we may find them entering the green world to exploit the available opportunities.

Apple of Discord????????????

The resignation of Mr. Musharaff did'nt come as a surprise to any one as it was on the cards looking at the existing political situation in the neighbourhood. However the impact of the restoration of new democracy on Indo-Pak relationship needs to be seen. It is doubtful that the democratic government will be able to take bold steps as taken by the ex-Prez. During his tenure of nine years Indo-Pak relations witnessed all the vibrations of a healthy relationship ranging from conflicts to co-operation. Despite the failure of both the governmens to arrive a a consensus at the Agra-Summit, efforts were constantly made to have a smooth relationship. The release of POWs, the changing of the name of the birth-place of our PM, etc. were among the friendly gestures shown across the border. Further itwas during his tenure only, that issues other than the Kashmir-Issue were highlighted while earlier this was the only issue to find mention in Indo-Pak talks. 'Kashmir is the apple of discord between India and Pakistan', was the sentence taught to us in school while making us understand the meaning of apple of discord. Although he was the chief architecht of the Kargil war against India, but as a leader he knew his responsibilities and managed them well. Actually he was not accountable to any one and the decisions he took, were not backed by the fears that a democratic government carries. Now at the time of his resignation, the Kashmir issue is burning again and hopefully the same sentence does'nt figure again in the books of the kids..........

Investments in India, a hit on the mind of an American

This is with reference to the speech of our PM, Mr. Manmohan Singh, that more investments will create more jobs in India. This had been realised at the right time during the liberalisation of the 90s when the regulations were reduced to a large extent and also the FERA was replaced by FEMA. With the advent and rapid development of technology, our service sector has recieved a jack especially the BPO and the KPO sector. The rapid growth of technology and globalisation has threatened the people living the so-called American Dream. A person sitting in a US classroom has to compete with his Indian counterpart whose opportunity cost is very less comparitively. There used to be a famous saying earlier that an American Mom asks her kids to finish their food else it'll be taken by an Indian kid and now the saying has been modified to the mom asking her kids to do thier homework well else their job may be taken by an Indian. This fear has been created by the shortening of the bounderies due to technology. The out-sourcing industry has been successful not only due to the availability of the cheap labour but also a talented work-force. The adaptable nature of Indians is also a factor for the success of the out-sourcing industry.
An average Indian is more adaptable to the changing circumstances than his American counterpart. The possible reason for this is that our system exposes us to more difficulties than the Americans who live a smooth life without having to suffer much. Now that the US is fearing the much hyped recession starting with the buzzword 'Subprime', the Americans appear to have exagerated the situation. The drastic fall in the property prices is likely due to the tendency of an American to over-react to a situation. This tendency of the Americans to over-react can observed at all places across the US, be it be a pub, a sub-way or a simple public street. They react so much to the numbers that even a small rise in the tempeature can cause a huge debate among unknown persons. The price of gas is a much bigger issue and a rise of a few cents can reduce the traffic on an American street substantially. This is not a case with with Indians, though they pay much higher and have a much low earning capacity. An average Indian will react only when provoked by people having political considerations.
But the reaction of the Indians does'nt make as much difference as that of an American does. This can be observed by the reaction of our stock markets which fluctuate rapidly at the actions or perhaps the reactions across seas. Now, that the Americans have reacted and left an impact on our economy, we are likely to recover at a faster pace as the problems for US are huge which include the existing problems as well as the behavioural problems. Now that prices of oil are receeding after touching sky-highs most-likely owing to speculation, the Americans appear to have heaved a sigh of relief. But at the threat of oil being traded in euros at the global level, the reaction of the Americans is something to be observed.

Miscarriage of Foetus or Justice??????????

The miscarriage of foetus of Niketa Mehta, who was recently refused permission by Bombay High Court, has raised the eye-brows of various critics. The discussions about amending the existing Medical Termination of Pregnancy Act (MTPA) had started after an application was filed for the abortion of the foetus whose healthy life was doubtful. Various views had been published while the matter was still sub-judice. The court had to be very careful as it would have set up a precedent which could have been abused by our male dominated society due to the hype given to this case. The opinions of various high profile doctors, working with reputed hospitals, were sought and it was decided that the reports had not ruled out a normal life with medical aid for the foetus. The decision of the court was legally right but the practicalities of the case should have been considered. After the denial of the required permission, the couple stated that they could have gone to a quack rather than opting for a legal route. This statement was rightly highlighted by the media as it reflected the highly prevalent mal-practices of female foeticide and even infanticide in India. After the mis-carriage at a local Kandivali clinic it was stated by the husband that the court could'nt permit them but 'Bhagwan ne Theek Kiya'. The provisions of MTPA prohibit abortion after a period of 20 weeks. After this period, it is dangerous for the life of a woman to abort and also the reason for this prohibition is the practice of female foeticide after determing the sex of he child. This miscarriage which has come naturally by 'Bhagwan' has raised many questions in our existing legal and social system. Any law which is formed to curb certain mal-practices has its side-effects as well. The sufferings of the couple can be quoted as an example of this. It is doubtful whether the principle, that ninety-nine guilty should be allowed to go rather than punishing one innocent, holds good in this case.........

Logic behind the title

The name'BiLawg' has been taken by clubbing the words business, law and blog. Further, even if we look at the literal meaning, a 'by-law' is a rule made by some local authority to regulate its own affairs and has to be in confirmity with the statutory laws. The replacement of the suffix 'y' with 'i' is due to the fact that rather than the local bodies which are primarily governmet lagislative bodies, we shall focus on the rules or the policies of the corporate houses for regulating their respectie businesses. Like by-laws, the formulation of rules & policies has to be in confirmity with the statutory laws. An informal name has been given so that views can be presented freely and all feedbacks and suggesstions are welcome.