B U S I N E S S

Iraq unrest hits markets, rupee; yellow metal shines
Mumbai, June 13
Stocks and the rupee logged their biggest drop in over four months after crude oil prices surged due to the unrest in Iraq but gold provided investors some succour as the precious metal rose in the Rs 350-390 range in prominent metro cities today. The 30-share S&P BSE benchmark Sensex tanked 348.04 points, or 1.36%, to end at 25,228.17 and NSE 50-share Nifty dropped 107.80 points, or 1.41%, to 7,542.10.

Telecom Commission gives go-ahead to full MNP
New Delhi, June 13
The Telecom Commission today gave its approval for full mobile number portability (MNP) that enables subscribers to retain numbers even when they relocate to any part of the country. Among the slew of long-pending plans cleared by the Telecom Commission was also the revised strategy for National Optical Fibre Network (NOFN) under which 2.5 lakh gram panchayats will have access to broadband connectivity by March, 2017.

Industry backs govt on green clearances
New Delhi, June 13
Industry has backed the recent green clearances of the government to Sardar Sarovar Dam and radar project in Andaman and Nicobar Islands. Industry body Federation of Indian Chambers of Commerce and Industry (FICCI) said there was a need to balance environment and development.

RBI allows foreign investors to buy up to 49% stake in Idea
Mumbai, June 13
Foreign institutional investors (FIIs) can now purchase up to 49% stake in telecom operator Idea Cellular Ltd. The FII limit in the company was 24% earlier. "... FIIs, through primary market and stock exchanges, can now purchase up to 49% of the paid-up capital of Idea Cellular under the Portfolio Investment Scheme (PIS)," the RBI said today.

Telenor to buy 100% stake in Uninor
New Delhi, June 13
Looking to increase its presence in India, Norwegian telecom firm Telenor has decided to take complete control of its Indian unit Uninor by acquiring the 26% stake held by Lakshdeep Investments. The 26% share would be acquired by Telenor for Rs 780 crore.

Iraq unrest hits markets, rupee; yellow metal shines
Sensex plunges 348 points, Nifty down 107; Re slips 52 paise

Mumbai, June 13
Stocks and the rupee logged their biggest drop in over four months after crude oil prices surged due to the unrest in Iraq but gold provided investors some succour as the precious metal rose in the Rs 350-390 range in prominent metro cities today.

The 30-share S&P BSE benchmark Sensex tanked 348.04 points, or 1.36%, to end at 25,228.17 and NSE 50-share Nifty dropped 107.80 points, or 1.41%, to 7,542.10.

Today's drop in the two equity benchmarks was their biggest since January 27, 2014 when the Sensex fell by 426.11 points and the Nifty slipped by 130.90 points.

Interestingly, the Sensex and the Nifty have fallen for the fifth straight time on a Friday that falls on the 13th.

'Friday the 13th' is considered an unlucky day by some. Crude prices extended the previous day's rally to sit at nine-month highs after militants closed in on Iraq's capital Baghdad, fuelling fears over supplies from the crude producer.

US benchmark, West Texas Intermediate, advanced 73 cents to $107.26 in late-morning trade after surging $2.13 in New York yesterday to reach its highest level since September.

"Markets ended the week with a big fall on Friday. Crude price concerns caused by the geo-political concerns in Iraq marred sentiments in the markets," said Dipen Shah, Head - Private Client Group Research, Kotak Securities.

The rupee today depreciated 52 paise to end at 59.77 against dollar — logging its sharpest daily fall since January 24, 2014. when it had dipped by 73 paise. — PTI

European shares at one-week low

London: Europe's top share index headed for a weekly drop after gaining for eight straight weeks, with escalating conflict in Iraq hitting travel stocks and the prospect of an early rate hike in the UK hurting property shares on Friday. The pan-European FTSEurofirst 300 slipped to a one-week low, moving further away from this week's 6-1/2-year high. European sector index falling 2.3% after growing tensions in Iraq hit sentiment and boosted oil prices. — Reuters

Telecom Commission gives go-ahead to full MNP
Tribune News Service

New Delhi, June 13
The Telecom Commission today gave its approval for full mobile number portability (MNP) that enables subscribers to retain numbers even when they relocate to any part of the country.

Among the slew of long-pending plans cleared by the Telecom Commission was also the revised strategy for National Optical Fibre Network (NOFN) under which 2.5 lakh gram panchayats will have access to broadband connectivity by March, 2017.

The long-delayed plan to set up mobile towers to provide telephone services in nine Naxal-affected states and strengthening of telecom connectivity in the North-East region also got the approval. The two proposals will now be placed before the Cabinet for their final approval.

Reports said after the in-principle approval of full MNP, the proposal would be referred to TRAI for additional information and clarification.

Full MNP allows a user to retain number when he/she relocates to any part in the country. At present, the portability allows a user to switch to a different operator within the circle only while retaining the phone number.

While the proposal for setting up mobile towers in Naxal-hit areas has been pending, BSNL has submitted a final estimate of Rs 3,241 crore to roll out this project against Rs 3,046 crore approved by Cabinet.

The inter-ministerial panel also approved providing funds for the GUN (government user network) over NOFN project.

Under GUN project, government has plans to provide WiFi services at panchayat levels. There is an additional requirement of funds beyond around Rs 20,000 crore approved for the National Optical Fibre Network (NOFN)project.

The UPA government had approved Rs 20,000 crore for starting the NOFN project in 2011. At the conception stage, the UPA government had set a deadline of 2012 for completing the project.

What full MNP means

• It allows a subscriber to retain his/her mobile number when he/she relocates to any part in the country
• At present, the portability allows a user to switch to a different operator within the circle only while retaining the phone number.

Industry backs govt on green clearances
Says there is need to balance environment and development
Tribune News Service

New Delhi, June 13
Industry has backed the recent green clearances of the government to Sardar Sarovar Dam and radar project in Andaman and Nicobar Islands. Industry body Federation of Indian Chambers of Commerce and Industry (FICCI) said there was a need to balance environment and development.

“Imposing ecology standards relevant to advanced societies on ourselves without first accounting for our needs and demographic imperatives have negative consequences on the social front. If no jobs and livelihoods are created, we will have social chaos”, FICCI president Sidharth Birla said.

He said there is a need to create a rational balance between environment and development and any agenda disruptive to this ultimately goes against the interests of the nation and the people.

"FICCI believes that government’s decisions have shown a way of striking a balance between the needs of environment and development,” Birla said.

"We are happy to see government's swift actions in granting green clearances to important projects such as raising the height of Sardar Sarovar Dam, and the radar project in Andaman & Nicobar Islands. The government’s commitment in cleaning and rejuvenating the Ganga is also welcome", he added.

RBI allows foreign investors to buy up to 49% stake in Idea

Mumbai, June 13
Foreign institutional investors (FIIs) can now purchase up to 49% stake in telecom operator Idea Cellular Ltd. The FII limit in the company was 24% earlier. "... FIIs, through primary market and stock exchanges, can now purchase up to 49% of the paid-up capital of Idea Cellular under the Portfolio Investment Scheme (PIS)," the RBI said today.

The decision to increase the FII limit in the company has come after passage of resolution at the Board of Directors' level and a special resolution by the shareholders for enhancing the limit from 24% to 49%.

As per the data available on the BSE, FIIs held 19.51% share in the company as of quarter ended March 2014.

Having agreed to increase the FIIs shareholding limit to 49%, the downstream investment in the company would continue to remain on Idea Cellular, in compliance with FDI (foreign direct investment) policy and FEMA (Foreign Exchange Management Act) regulations.

FIIs, NRIs and PIOs (Persons of Indian Origins) can invest in primary and secondary capital markets in India through Portfolio Investment Scheme (PIS).

RBI monitors the ceilings on FII/NRI/PIO investments in Indian companies on a daily basis.

Shares of Idea slumped 4.32 per cent to close at Rs 135.10 apiece on BSE today. — PTI

Telenor to buy 100% stake in Uninor
Tribune News Service

New Delhi, June 13
Looking to increase its presence in India, Norwegian telecom firm Telenor has decided to take complete control of its Indian unit Uninor by acquiring the 26% stake held by Lakshdeep Investments. The 26% share would be acquired by Telenor for Rs 780 crore.

The company, which currently owns 74% stake in Uninior, has filed an application with the Foreign Investment Promotion Board (FIPB) seeking to raise its ownership to 100%.

In a statement issued here today, Telenor said, "An application has been filed with the FIPB of the Government of India, seeking approval for an additional investment of Rs 780 crore to raise ownership in Uninor to 100%".

It added that the investments will be utilised to acquire the remaining stake held by Lakshdeep Investments as a financial investor.

Having faced the axe for its licences earlier due to the Supreme Court order, the Norwegian telecom giant through its Indian unit had participated in two separate spectrum auctions to acquire radiowaves in the range of 5Mhz to 7.2 Mhz in seven circles, which the company said together represent more than half of India's population.

Uninor, which has over 30 million customers, currently offers services in Andhra Pradesh, Bihar, Gujarat, Maharashtra, UP East and UP West and is planning to launch services in Assam this year.