Wednesday, October 31, 2007

Conditions for Foreign Investment in Real Estate Sector in India

Real Estate Investing in India

Direct Investment in some of the aforesaid areas (not all) is
subject some conditions, some of which are as follows:

  • Develop a minimum
    land area of 10 hectares for serviced housing plots, and a
    minimum built-up area of 50,000 sq m in case of construction
    projects. The policy does not clearly define ‘built-up’, though
    FSI (Floor Space Index)/FAR (Floor Area Ratio) could be used as
    a basis for the same.

  • Fulfill the minimum
    capitalization norm of $10 million for a wholly-owned subsidiary
    and $5 million for JVs. The funds would have to be brought in
    within six months of commencement of business (which needs to be
    defined) of the subsidiary or JV.

  • Complete at least
    50% of the integrated project within five years from the date of
    obtaining all clearances.

  • Do not sell
    undeveloped plots (with no infrastructural backup). Provide
    infrastructure and obtain the completion certificate from the
    concerned local body before disposal. This clause needs
    amendment because certificates are sometimes not issued for
    months on end, even years, an uncertainty which tends to raise
    project cost, often beyond viability.

  • Do not repatriate
    original investment before three years from completion of
    minimum capitalization. Early exits require prior approval of
    the Foreign Investment and Promotion Board.

  • Conform with all
    applicable local and state laws, and abide by all regulations
    and norms.

Tuesday, October 30, 2007

Indian Job market for the coming years

Tier II, III cities preferrable job destinations: Assocham - livemint
New Delhi: Job opportunities within NCR including Delhi and metros will weaken by 50% in the next three to four years as huge investments are being pumped in Tier II and III cities which are turning into ideal employment destinations for educated youth.

Monday, October 29, 2007

Mukesh Ambani is world's richest man

Mukesh Ambani is world's richest man
Mukesh Ambani is world's richest man
Press Trust of India / Mumbai October 29, 2007

Billionaire Mukesh Ambani today became the richest person in the world, surpassing American software czar Bill Gates, Mexican business tycoon Carlos Slim Helu and famous investment guru Warren Buffett, courtesy the bull run in the stock market.

Following a strong share price rally on in his three group companies, India's most valued firm Reliance Industries, Reliance Petroleum and Reliance Industrial Infrastructure, the net worth of Mukesh Ambani rose to $63.2 billion (Rs 2,49,108 crore).

In comparison, the net worth of both Gates and Slim is estimated to be slightly lower at around $62.29 billion each, with Slim leading among the two by a narrow margin.

Sunday, October 28, 2007

A quiet revolution in China’s capital markets

From Mckinsey Quarterly

When China first allowed private investment in state-owned enterprises, the government created a two-tier approach that, in its initial design, would let companies raise additional capital while retaining a high degree of supervision over their assets.
Although this approach was successful at first, over time it did not facilitate a deepening of China’s capital markets and led to uncertainty about how the structure of ownership would be reformed—uncertainty that contributed to an almost five-year decline in the Shanghai stock market.
New reforms put in motion in 2005 and 2006 will reach a milestone this year, with the elimination of the two-tier structure. The reforms spurred a massive rally in the stock market over the past year and a half. In the longer term, they have profound implications for mergers and acquisitions, equity markets, and corporate governance in China.

Thursday, October 25, 2007

Steven Cohen

Steven Cohen

Fifteen years ago, options trader Steven A. Cohen left the middling Wall Street firm where he worked to start a hedge fund. Hardly anybody noticed, and Cohen appeared to like it that way. He spent the next decade quietly earning spectacular returns (average annual gain of nearly 40%, even after Cohen's hefty fee) by making trade after hair-trigger stock and options trade—and discussing them with almost no one.

Eventually, though, Cohen became so successful that he could no longer fly under the radar. Forbes last year estimated his net worth at $3 billion. The huge addition he built onto his house (plus ice rink) became the talk of Greenwich, Conn. And because of its huge trading volumes and reputation for moving stock prices, Cohen's hedge fund, SAC Capital, with 700 employees and $13 billion under management, has become perhaps the most talked-about force on Wall Street. Cohen, 50, the son of a dress manufacturer from Long Island, N.Y., has adjusted, in a fashion. His firm now holds on to stocks longer and has branched into lending and private equity. He has become a major collector of modern art. Last year he even spoke to the Wall Street Journal! A couple of things haven't changed, though: Cohen still spends weekdays glued to his trading desk, and in 2006 the firm's main fund was up an ad

How content affects the buying and selling of ad links

This article is absolutely amazing. I didnt get enough time to read through the thesis. Definitely on my weekend list.

Katona says the results are supported not just by the model that was developed, but also by empirical study. “By using Google we took web pages from different positions in a search for a particular word – from the first click through to the 800th position for example. We repeated the process for 50 different search words. For every web page we counted the number and size of banner adverts. The lower the ranking of the page, the more banners. On the first page there is almost nothing and this supports the fact that high content sites don’t sell a great deal.” He says that the more advertising there is, the greater the risk of visitors getting distracted and clicking on other links.
“For higher content sites it hurts more to sell advertising.


This article is more about discipline.

Survival of the Richest
Survival of the Richest

by Andrew W. Lo

In financial markets, as in many human endeavors, there’s a battle between reason and madness. On one side are the disciples of the efficient-markets hypothesis: the notion that markets fully, accurately, and instantaneously incorporate all relevant information into prices. These adherents assume that market participants are rational, always acting in their own interest and making mathematically optimal decisions. On the other side are the champions of behavioral economics: a younger discipline that points to bubbles, crashes, panics, manias, and other distinctly unreasonable phenomena as evidence of irrationality.

Finance markets turmoil..

Buttonwood | Paint it black |
Paint it black

Oct 18th 2007
From The Economist print edition
The stockmarket crash of 1987 has lessons for today's markets

Friday, October 19, 2007

College Football USF vs Rutgers

This is pretty interesting week. I actually took a leave for college football. My college USF has been on a winning streak for the past 6 games. While we lost the game I am sure to say that It was not a easy victory for Rutgers. After all rutgers has a 150+ years of college football to boost of. We have only 11 years. Definitely a college team to watch.

Wednesday, October 17, 2007

Wearing so many hats

I read Fred Wilsons blog very religiously and I have a chance to meet with him once during the facebook hackathon meet up.

He wrote a post today about wearing a lot of hats. Why I think he is a brilliant. A VC: Wearing A Lot Of Hats . Since I read about him every day and even the Gotham girls blog. I have a very good idea of whats happening around him.

I am wondering what are the things I am doing.

1. I have a full time job with one of the financial service firm in Wall st

2. Preparing for GMAT

3. Looking in to higher education other than GMAT

4. Follow up with financial markets ( WSJ, Economist, etc etc)

5. Keep up with technology valuation side

6. Follow with Indian markets especially my few investments in India

Definitely I dont some of these. Which is a huge problem but being an immigrant is not easy we have to play the thing just for a couple of years just to get settled and keep things moving.

May be every one goes through some thing similar. I am hoping that, I am considerably young and in the right track and miles to go. But this young this is definitely not an excuse for some. May be I should have done a better research.

May be I should find a career coach. Just waiting for this India trip in December to get over. I need to pursue some things aggressively though.

Tuesday, October 16, 2007

Interesting things about Ambani

Mukesh Ambani Profile - Executive Articles -
Everything about Ambani is over-the-top: He’s moving into the world’s most expensive house; he’s constructing the world’s largest oil-refining complex; he’s trying to remake India’s scattershot retail industry. Yet despite all of his almost absurdly big plans, Ambani is anything but a publicity-seeking social climber. In fact, he’s a semi-recluse: awkward, shy, a traditional Hindu who practices strict vegetarianism and abstains from drinking alcohol. With his mix of hubris, business savvy, and personal eccentricity, he may be a modern-day Howard Hughes.

Thursday, October 11, 2007

Future cities in India

My thoughts on Indian real estate market

Its so hard to comment on it. The only similar comparison in terms of performance is Google shares. While the bears cry for their demise reports are there in both sides. Are people buying the hype from a Wharon article and more money coming to India. I thought a stronger rupee will delay the party but alas its going guns as usual.

I think if you have any money and can afford a decent cash flow you should invest in real estate. I am happy to see bears among us. Like Fred wilson said. If every one says the party is over the contrarian in me says no.

Why should you invest. India is a growing country with higher GDP and the development is in accelerating phase. More and more money is there in the country due to young crowd and rising middle income.

India has less people in the city nearly 28% compared to 40% in China. Rising salaries and growing of IT cities are definitely key drivers.

Where we should invest in..

Tier 1, Mumbai, Chennai, Delhi, The prices are already peaked in this areas. I am not saying its going higher but these properties have a easy in and out. Since there is always takers. Definitely the prices are higher but I think the growth in this area is gonna be slow when compared to the Tier 2 cities. But definitely in the liquidity side its very easy.

Tier 2. This is where a middle class should invest in. You make a decent amount of money to pay your bills and have some money left for savings. Please do a favor for yourself and invest the money in Land rather than in deposits. I am sure that you guys can afford a decent mortgage and pay it off.

India as Eldorado or real estate

India as Eldorado or real estate from Wharton

"The most interesting opportunities are in Asia and India. Real estate developers are swarming over those areas." David Pyke, associate dean for the MBA ...

Friday, October 05, 2007

What is about the url, Domain appraisal


I have no clue what is hot in the url I have been having the url for quite some time and as my friend recommended I listed the domain in Sedo for resale. From the day 1 I have been numerous mails asking whether the domain is for sale. If so how much should I ask for.

Diggers please help in appraising the domain name

India in the view of finance minister P Chidambaram - India will be an economic power

Finance Minister P. Chidambaram: 'India Will Be an Economic Power, and Nothing Will Stop Us' - India Knowledge@Wharton
For the next 20 years, India will be an economic power, and nothing will stop us," Chidambaram stated, after noting that India will be alone among large countries in boasting of a working-age population -- compared to a population of dependents -- that will continue to grow for another generation, until roughly 2040. The resulting gains in jobs, income and investment should guarantee a steady cycle of growth "as long as we don't do anything stupid."