B U S I N E S S

AirAsia to start India operations later this year with 3 aircraft
Chennai, June 29
Malaysian low-cost carrier AirAsia today said its Indian operations should begin later this year with flights for the southern region and the company would also look at setting up some ancillary businesses in the country. “We are hopeful of starting Indian operations later this year with three aircraft serving the southern region,” AirAsia Group CEO Tony Fernandes said.

Investors should enter markets via mutual funds: SEBI chief
Chandigarh, June 29
Disillusioned with the lack of regulatory mechanism in capital markets and having lost their hard-earned money in overpriced initial public offers (IPOs), investors at the depositors' awareness programme organised by the Securities and Exchange Board of India (SEBI) took up the issue with SEBI chairman UK Sinha. Investors raised concern over the poor grievance redressal system and lack of background checks of the companies that come up with IPOs.

Investor guidance
NRI or PIO can invest in any insurance plan
Can an NRI (now a US citizen) invest in Indian insurance plans since his family continues to reside in India?
— Dubey
Yes, an NRI or a PIO (an NRI with foreign citizenship) has been granted permission to invest in any insurance plan in India irrespective of whether his family resides in India or not.

HCIL to recall 42,672 units of second-generation Honda City
New Delhi, June 29
Indian subsidiary of Honda will recall over 42,000 units of second-generation Honda City cars to replace their power window switches. Honda Cars India Limited (HCIL) said it was carrying out preventive part replacement of power window switches of the second-generation Honda City cars.

AirAsia to start India operations later this year with 3 aircraft

Chennai, June 29
Malaysian low-cost carrier AirAsia today said its Indian operations should begin later this year with flights for the southern region and the company would also look at setting up some ancillary businesses in the country. “We are hopeful of starting Indian operations later this year with three aircraft serving the southern region,” AirAsia Group CEO Tony Fernandes said.

The airline would expand its services to other parts of the country in the second stage, he said. AirAsia would also look at setting up ancillary services like air travel insurance and duty free shops in the country, said Fernandes who came to Chennai this morning.

AirAsia has already put in place a strong leadership team for its India operations, which is a joint venture with Tatas and Telestra Tradeplace. Former TCS chief S Ramadorai has been appointed Chairman, while top industry leader Ratan Tata has been named as chief adviser to the board of AirAsia India. Besides, R Venkataraman (former executive assistant to Ratan Tata) and Bharat Vasani (chief legal counsel of the Tata Group), are among the directors on the board.

AirAsia India is a joint venture of Air Asia, Tata Sons and Arun Bhatia of Telestra Tradeplace with 49:30:21 holding. AirAsia will be represented by Tony Fernandes and Kamarudin Bin Meranu. Last month, Fernandes had named Mittu Chandilya as the CEO of AirAsia India.

AirAsia is expected to bring in competitive pricing in the Indian aviation market with its "nano" airfares.

These announcements had come within days after Aviation Minister Ajit Singh said all the issues regarding AirAsia's India applications had been resolved. — PTI

DGCA puts cap on preferential seats in planes

Putting a cap on the number of ‘preferred seat’ on sale on each flight, the Directorate General of Civil Aviation (DGCA) has allowed the airlines to book only 25 per cent of the total seats in the aircraft. The DGCA has also prohibited the airlines to offer middle seats, except in the first row and the emergency exit, for preferential seating. The Civil Aviation Ministry had in April allowed 'unbundling' of some services, like seat preferences or meals on board, with aim to help airlines to earn ancillary revenue. — PTI

Investors should enter markets via mutual funds: SEBI chief
Tribune News Service

Chandigarh, June 29
Disillusioned with the lack of regulatory mechanism in capital markets and having lost their hard-earned money in overpriced initial public offers (IPOs), investors at the depositors' awareness programme organised by the Securities and Exchange Board of India (SEBI) took up the issue with SEBI chairman UK Sinha.

Investors raised concern over the poor grievance redressal system and lack of background checks of the companies that come up with IPOs. Sinha was in the city for the inauguration of the local office of SEBI here, which was done by RBI deputy governor Anand Sinha.

Madan Chopra, an investor, rued that he had made several complaints to SEBI regarding a top Indian conglomerate after it launched an IPO for its power subsidiary at a high price and later share prices fell sharply, thus causing huge losses to hundreds of thousands of investors, but to no avail.

Another investor, RS Chopra, said most of the companies have stopped circulating the published financial results to the shareholders. “The results are just listed on the websites, and most investors are not net savvy. These issues continue to make capital markets less accessible to people living in smaller towns and villages,” he said. Sinha, while redressing the grievances of the investors, said the mandate of SEBI is three-fold protection of the interests of the investors in securities, regulation of the securities market and development of the securities market.

“For promoting a balanced pan-India securities market and to bring physical proximity of SEBI officers to investors and intermediaries, SEBI has decided to open its local offices in various parts of the country. But there is a huge risk involved in dealing with the primary markets. As investors, you should enter the markets through mutual funds, which are giving good returns to investors. Regarding the volatility in prices of shares, we have taken certain precautions like call options, to bring down the volatility in prices to just 20 per cent in a day,” he said.

He said SEBI cannot fix the price of the shares, which is determined by the market forces, though it can check the background of the firms.

Investor guidance
NRI or PIO can invest in any insurance plan
A. N. Shanbhag

HCIL to recall 42,672 units of second-generation Honda City

New Delhi, June 29
Indian subsidiary of Honda will recall over 42,000 units of second-generation Honda City cars to replace their power window switches. Honda Cars India Limited (HCIL) said it was carrying out preventive part replacement of power window switches of the second-generation Honda City cars.

HCIL said, 42,672 units of previous Honda City manufactured in 2007 and 2008 will be recalled to carry out the replacement. HCIL will proactively replace the power window switch which may malfunction incase water or any other liquid enters the driver side window.

HCIL is carrying out the part replacement as part of a global exercise by Honda Motor Company to ensure stringent quality standards for its product, the company said. However, the third-generation Honda City cars are not affected and do not require any part replacement. The company clarified the recall would not affect the Jazz model.

HCIL is carrying out the part update as preventive measure although no such problem has been reported from any where in India. The replacement would be carried out free of cost at HCIL dealerships and the owners will be contacted individually in a phased manner. — TNS