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Venture
Capital-Recent Trends in the Liberalization Context
-- D Nagayya
The
paper reviews development of Venture Capital Funds (VCFs)
and Venture Capital Investment (VCI) in the country. Concept,
evolution, characteristics and scope of venture capital
as an equity mechanism is discussed in the paper. This is
also referred to as Private Equity (PE)an investment in
a company with equity securities that are generally not
publicly traded. Private Equity focuses on active private
equity investments that enable them to acquire a large or
controlling interest in a firm with solid growth potential.
As a result, PE firms can oversee, assist, and if necessary,
redirect the company's activities or its management. Indian
environment of venture capital funds, particularly through
institutional sources like Industrial Development Bank of
India (IDBI) and Small Industries Development Bank of India
(SIDBI) is presented in detail. To make the program dynamic
to meet the needs of entrepreneurial interests in the small
and medium enterprises sector, changes taking place are
covered to some extent. Role of the nodal agency and Securities
and Exchange Board of India (SEBI) in supervising and monitoring
the functioning of venture capital funds is highlighted.
Involvement of the Indian Venture Capital Association (IVCA)
in pursuing with the Government of India for revision of
guidelines for Venture Capital Funds for different periods
is recapitulated.
©
2005 IUP. All Rights Reserved.
Low
Bargaining Power of Labor Attracts FDI to India
-- B K Nayak and Surya Dev
In
the present era of economic liberalization due to disempowerment
of labor numerical decline of the organized workforce, weakening
of trade unions and the consequent decline in the bargaining
power of labor have become quite visible. The question arises
as to whether there exists any nexus between the bargaining
power of labor and the flow of FDI. Notwithstanding low
and declining capital-output ratio and high labor efficiency
as the obvious determinants of increasing FDI flow, the
Indian scenario suggests that FDI flows to the destinations
where workers have a low and declining bargaining power.
©
2005 IUP. All Rights Reserved.
A
Proposal to Bail-out the Tamil Nadu Electricity Board from
Financial Fiasco
-- N Sankaralingam
This
paper examines the Tamil Nadu Electricity Board's (TNEB)
long-term financial problems, its impact on the projects
and the action plan to circumvent the financial difficulties.
Since the State Government has retreated from dispensing
long-term loans, the Board has been bolstered by the public
and financial institutions with loans and advances. This
shift in stance of the State Government has created a short
shift in project finance. Also it landed into the high cost
of borrowings. In this condition, finding a nearest means
at the cheapest rate to tide over the financial stress of
the Board is considered imperative. With this aim, the consumers
are approached with the following maxim. This is to understand
the consumers' mind in supporting the Board. "No Payment
of Electricity Bill if you Deposit an Amount Equivalent
to 100 Times of your Bimonthly Bill to the Electricity Supplier".
Despite the survey being carried in a miniature, the response
obtained from the consumers is encouraging. It is expected
that the proposal will work well like a mascot to overcome
the financial problems of the Board if implemented earnestly.
Since the proposal embarks on the commercial principles,
the paper strongly urges the TNEB and other Boards as well
to implement this plan.
©
2005 IUP. All Rights Reserved.
Book
Review
Bubbles
and How to Survive Them First Stocks, Now House Prices
-
John P Calverley
Reviewed
by D G Prasuna
The
prolonged lull during the later part of the 20th
century gave rise to a school of thought that bubbles are
a thing of past. But the boom and bust of the technology
bubble in the US has proved beyond doubt that bubbles are
alive and kicking. The next question on the minds of investors
and regulators would be whether bubbles are predictable.
These and many more are some of the questions the book Bubbles
and How to Survive Them: First Stocks, Now House Prices
attempts to answer.
©
2004 American Express Bank. All Rights Reserved. The IUP holds the copyright for the review. |
