In the last article I had wrote, I had promised the next article on a different subject. Apologies if I disappointed anyone, but digressing for an article to discuss a key development which as usual, the mainstream media (even business) seems to have missed.

A couple of weeks back, there was a brief snippet on CNBC TV18 about the Reserve Bank of India (RBI) treating Compulsorily Convertible Preference Shares (CCPS) with fixed exit prices as debt. (I don’t know if this is correct or not; I have not been able to locate a RBI notification or a circular to that effect; in case anybody has seen one, please pass it on). Yesterday, the RBI prevented DE Shaw from selling its stake held through CCPS in DLF Assets Limited (DAL) through the exercise of a put option at a fixed return of 27%. Surprisingly, there haven’t been a lot of discussions on this. Surprising for the following reason; for the first time, there has been an attempt to define debt and equity in terms of economics rather than accounting; which in my opinion is an important distinction. continue

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“You can’t fool all the people all the time.” Or so the saying goes. The question is can the American government swindle money from a billion people?

It probably can – China holds about $ 1.95 trillion in Forex reserves. An estimated $ 700 billion is in US government bonds. So what? continue

Given that I am not working these days, a lot of my time is spent on the internet. During my daily visit to seekingalpha.com, a question popped into my head – Has the historical preferential tax treatment for debt led (in part) to the mess we face today? continue

DLF along with Unitech should be given credit to make NCR what it is today. The vast city of Gurgaon has been built by DLF and Unitech by building skyscrapers, malls and everything else that follows. In turn these companies also grew and their promoters started coming in the list of richest people in India and the World. continue