life in financial markets: when government manipulates equity markets

Its a ridiculous drama being enacted by the champions of capitalism. India's finance minister, P. Chidambaram was telling television news reporters today that the foreign institutional investors (FIIs) are being directed to reverse their short-sales positions. Such a step should be an anathema to free markets but when were the financial markers were every truly from cronyism. Even C.B.Bhave, who otherwise is calm and collected, is unable to resist pressure from above and comes down heavily on FIIs lending stock to each other through private contracts.

I would like to say this to market participants, investors, regulators as well as media editors/correspondents covering markets:

When the market shoots up rapidly, as it was during 2005-07, there was no clamour from you for a ban on long purchases or reversal of long purchase positions. But when the markets are going down rapidly, as it is this month, you want to ban short sales or ask for it to be reversed? You can't have it both ways. If that does make you a hypocrite then nothing much else will! It is also government-sponsored manipulation of the markets. Who will regulate the regulators?

Earlier it was the banks and companies in distress that were being shamelessly bailed out by governments and cronyists. Now, they want to bail out the equity markets.

life in general: india's democracy: only for a few

In a genuine democratic country the government will not wait for people to come and seek their basic rights of justice and fairness. It will hand out these rights automatically and quickly. But in India it does not work like that. Rights are automatically granted only to the moneyed, influential and crony capitalists/socialists/communists. Physically violent sections and religious fanatics also bulldoze their ways into extracting favours for themselves for no adequate justification. But the non-affluent and those staying in remote areas do not get to have their say without much effort and fight.
Here is what right so-called 'development' project-affected people are forced to do (come all the way from their far-away home to Bombay) to seek protection of their basic human and economic rights. The Bombay police force that acts meekly against violent politicians like Raj Thackeray and Bal Thackeray acts rough against the protesting villagers and their NGO-organisers.

From:
Date: 2008/10/15
Subject: [nbapresslist] HALLABOL AND INDEFINITE MASS MORCHA OFDISPLACED FROM MAHARASHTRA
To: nbapresslist@lists.riseup.net

NATIONAL ALLIANCE OF PEOPLE'S MOVEMENTS
A Wing First Floor, Haji Habi Building, Naigaon Cross Road
Dadar (E), Mumbai-400 014 Ph. No-2415 0529 E-mail: napmindia@gmail.com
--------------------------------------------------------------------------------
HALLABOL AND INDEFINITE MASS MORCHA OF
DISPLACED FROM MAHARASHTRA
Thousands of displaced and affected people of various dams and projects;adivasis, dalits, farmers, fish workers, farm labourers, unorganized and skilled workers and basti dwellers and hawkers assembled at Mumbai, rising
their demands for justice and rehabilitation and against the current paradigm of destruction and displacement in the name of development. The uprooted displaced, combating displacement, deceit and half cooked rehabilitation, if any, are agitating and raising their demands with the Govt. of Maharashtra, calling the State to provide concrete and ultimate solutions.
Yesterday morning, all the displaced marched towards and assembled peacefullyon the footpath before the Maharashtra Pradesh Congress Committee. Even as the protestors were agitating in a non-violent manner and trying to engage in a dialogue with the Congress President, the agitators were forcibly removed from there by the police, who indulged in lathi charge and taken to Azad Maidan. We strongly condemn this action of the Police and the Government. The agitators did not budge and continued to raise slogans for justice. It is also unfortunate that the Congress leadership not only did not pay a patient hearing but also allowed use of police force, which we condemn. It is a success of the struggle of the thousands that we made the same police to provide free water, lighting and other facilities at the morcha venue.
Yesterday evening, the Home Minister and Deputy Chief Minister Shri R.R. Patil met a delegation of ours, who gave us a patient hearing and promised that all the issues would be broached at deliberated upon in today’s Cabinet Meeting.
A detailed memorandum has already been sent to the Government. We also welcome the decision of the Minister to withdraw all the cases against
Gandhian activist Bhau Buskute and 47 other Satyagrahis who were unlawfully arrested and detained while agitating for the demands of the Mumbai-Ahmedabad Highway displaced, upon the consistent campaigning and demand by Medha Patkar and NAPM.
The State Rehabilitation Minister, Shri Patang Rao Kadam met a delegation of the dam affected, project affected (PAF) and SEZ affected people, along with Medha Patkar, Ulka Mahajan, Simpreet Singh, Yogini Khanolkar, Suniti S.R. Bhavar Baba, Niketan Palkar, Prasad Bagve, Sampat Kale and others including those from Maval, Mulsi, Tata, Morba, Sardar Sarovar affected, and others, today afternoon at the Mantrayala and assured that he will positively look into all the demands and issues. The following decisions were arrived at:
- A high level Committee comprising of the Secretary of the Dept. of Revenue, Mr Dangre; Additionsl Secretary, Ms. Leena Satyanarayan and Secretary, Irrigation Dept. and Directors Maharashtra Krishna Khore Valley Development Corporation, Mr. Kolavale along with the District Collectors of Pune and Western Region Divisional Commissioner would deliberations the issues of various PAFs in Pune.
- The Minister promised that all lands that were acquired in excess for the Pavna and Tata dams would be returned back to the farmers and respective dam – affected people. He assured that Mr. Kolavale has already transferred 1011 acres of land to the Revenue Dept. for the purpose of rehabilitation. It is significant to note that the Minister agreed to the fact that rehabilitation is a public purpose, and therefore excess land must be being given to the original land owners or be used for their rehabilitation.
- A detailed field visit and investigation would be made by the aboveCommittee in the first week of November in four villages of Pavna and Tata dam affected areas, along with the village community.
- The Minister also promised that he would personally visit
The State Revenue Minister, Shri Narayan Rane met a delegation of the displaced urban basti dwellers. Upon the demand of the basti people of Mandala that they should get their promised and rightful share of 50 acres land in Mandala at the rate of Rs. 40 per acre, which is infact 40 times higher the price that was paid by elite builder Hiaranadani, the Minister promised that he will go into all the details of the land deal and ensure that justice is rendered to the people of Mandala.
People are firm that they would not budge from Azad Maidan, before concrete guarantees in writing are given to them on all their demands and unless the other related Ministers such as those of the Forest, Irrigation, Agriculture and Food & Civil Supplies Departments agree to meet them. The Tribal Development Minister will meet a delegation of activists and displaced from the Narmada valley tomorrow morning.
All the displaced have resolved not to budge an inch as long as Govt., of Maharashtra does not take concrete decisions, guaranteeing their rights, but in fact to intensify the Andolan at this very place. “This is just the beginning; we have come with questions and will not go back without answers and solid promise, backed with credible action” they all say in unision.
Mukta Srivstava Suniti S.R. Lal Babu Roy
(09969530060) (9423571784) (09987272484)

Details of the various struggle groups, issues and demands
The agitators include those affected by the dams built by Tata like Bhushi, Valvan, Somwadi, Sirwada, Morba, (Rigad) Thokalwadi and Mulshi and those displaced by the Pavna, Andhre, Jadhavwadi, Pusane, Kasarsai, Narmada, Malwandi – Jhuto, and other projects over the past decade to even 100 years ago, which have left them landless and homeless, while there has not been a simple cash compensation, let alone the hollow promise of land for land! The tall promises made have no where led to realization of even the limited rights as per the existing laws and Rehabilitation Policy, including the right to obtain 4 acres of land per family and house plots, at the rehabilitation sites, with all the basis amenities.
Though the bull dozers razing the bastis of the poor in the cities like Mumbai have stopped for the time being, the is still a luring danger of evictions at various places. Thousands of families who have been staying together on the lands for years and generations together cannot be denied their right to these lands. During the previous election campaign, it was promised that the rights of those who have been living up to the year 2000 would be considered and a survey to that effect would be carried out. At least this should be implemented immediately. The right to self – development of Bastis like Mandala must be recognized at the appropriate level in the Government immediately as under the JNNURM. The Basic Services to the Urban Poor (BSUP) must also be implemented effectively. When big and fat builders like Hiranadani can be given land at 40 paise per acre, against whom a case filed in the High Court at Mumbai is coming up for hearing today, even as we fight at the Azad Maidan, we question and challenge the Govt. as to why land cannot be allotted to us as well. We had infact paid Rs. 2000/- to the Govt. towards this end.
Another key issue is that beside lands that have been submerged, excess lands have been grabbed away, for various projects, than what is actually required, even if that Project had any merit. These lands were promised to be returned to the original owners. How come then that these lands are in fact sold to the brokers in Mumbai and the elite from artists to capitalist businessmen, the Singhanias’ and Amitabh Bacchans?
Those displaced in the Narmada valley due to the Sardar Sarovar Project are not yet rehabilitated and as on today the Govt. Of Maharashtra needs at least 4,500 hectares of land which they claim is not available. About 300 PAFs are not included in the list. We demand the Govt. of Maharashtra to take a clear stand that the dam will not go ahead without proper and just rehabilitation, including land for land.
We demand that the Tata Dam affected people must either be given full compensation or their lands must be returned back to them immediately. In spite of there existing alternatives to the Sapdi dam in Hingoli and Painganga dam in Yavatmal, they have displaced thickly populated villages, which is not acceptable. These and other big dams are only continuing to destroy thousands of hectares of fertile agricultural land, and thereby thousands of livelihoods. The people at the settlement at Krantinagar in Lonavla which has been there for a few decades, must be settled in the same place with due rights. The first right of fishing in the dam reservoir waters must be that of the project affected fish workers and not the contractors.
It is an absolute injustice to divert the water from the dams to the cities and industries, catering to the unjust demands of the urban elites, as against the proposed and promised claims of providing water for irrigation and drinking water purposes. Before the water from the Pavna dam goes to Pimpri Chinchwad areas, it should be made available to the dam-affected, for drinking purpose and for agriculture. Water from Warasgaon should be given to the adivasis and the farmers instead of the monstrous Lavasa Lake city, which is not thing but loot and destruction in the name of tourism. Similarly, various Project affected should be given employment wherever water has been diverted for industries and big cities. The ruling of the High Court of Mumbai (Aurangabad Bench) must be immediately and fully implemented. The state’s water policy must clearly ensure that agriculture and other traditional livelihoods are given a clear priority before industries.
A number of land transfers in the case of Lavasa and the Sahara City are illegal. They are carried out by cheating the small and marginal farmers and land owners and the tribals, most of whom are poor and illiterate. A thorough inquiry must be made into all these deals. The contractors in Lavasa and the middlemen are harassing and intimidating the villagers and locals. This should be stopped immediately and penal action initiated against any one indulging in such acts, no matter howsoever high or influential.
The’ Special Economic Zones’ are just a tool to make the rich more richer by providing them all forms of rebates and doling out huge tracts of prime agricultural lands to them. Those who are not ready to give up their houses, lands, village communities, water, fish, farms, are looted by making false promises. We oppose this blatant grabbing, in which the consent of the Gram Sabha is seldom sought, which is a mandatory requirement as per the 73rd amendment to the Constitution and the Provisions of the Panchayats (Extension to Scheduled Areas) Act, 1996. The entire process of promoting SEZs at Karla, Raigad, Maval, Gorai etc. should be stopped forthwith.
Some of the representatives of the various groups of displaced persons form across the state include:
Niketan Palkar / Shivram Bhavar – Tata Dharangrasth Samithi
Banda Rama Akhade and Saraswati R. Biskute, Pavana Dam affected(Sahayadri Bachao Andolan)
Pandurang Ambe – Kasarsai Project affected
Madhukar Sable – Diwad, Maval SEZ
Sitabai Dangre – Pavana Dam affected
Pandarinath Virale – Adle Khurd , Maval SEZ
Leelabai, Lavasa Lake City project affected
Sitaram Atmaram Nagap, Aruna Prakalpgrast Sangarsh Samithi, Sindhudurg
Yamuna Bandu Roke, Ditara Project affected
Amravati Chowdhury, Mahatam Mourya, Simpreet Singh, Ghar Bachao Ghar
Banao Andolan
Chandrashekar, Gorai Bet Bachao Andolan
Yogini Khanolkar & Vijay Valvi, Narmada Bachao Andolan
Noorji Padvai, Sardar Sarovar Project Affected, Chimalkedhi, Maharashtra

life in general: updated to a may '07 post on criminal wastage of electricity by big consumers

Two days back, I updated a May 2007 post on criminal wastage of electricity by big consumers.
This is the stuff that I put in the update:




Two months back, on 12 August, I came across another example of mindless use of electricity. See the pic alongside. I clicked it in the men's toilet of PVR movie theatre at Oberoi Mall in Goregaon East. There are three TV screens (the ones showing orange-coloured visuals) visible here but there were 3-4 more. These screens were showing trailers of movies that were going to get released in the coming weeks.

life in general: guava (peru) - poor man's delight!

Whenever guava ('peru' in hindi) fruit is in season here in Bombay and Maharashtra, I enjoy having its juice twice or thrice a week at home. See the first pic below taken by me today morning. Since its a local fruit and its tree naturally flourishing, guava is considered as the poor man's apple with its multitude benefits. Some even call it the most nutritious fruit.
Its in season for about 3 months in a year and its currently in season here. See the second pic below taken by me today -- i am holding a guava!

life in general&financial markets: yo yo! what a 'lament'!

The other day, my colleague, Venky, asked me whether I wanted to hear mp3 songs of a group called Deep Forest. I said "Sure!" and then copied about 7 songs of this group on my computer. I heard them and liked most of them. Among the songs is one titled 'Lament' that I have taken a liking to and have been listening to a lot in the last 2-3 days (this is a typical behaviour on my part as far as music is concerned -- if i like a song too much then i go overboard in listening to it till i get sick of it!).
Anyway, the song is kind of funny, sweet, lilting, all at the same time -- 'funny' because of the repeated 'yo yo yo yo' sung by a male singer that reminded me of the currently yo-yoing financial markets and the 'lamenting' investors, sweet because because of japanese/mongolian lyrics sung by a female chorus and lilting because of the tune which the two French guys of the group took inspiration from a Mongolian composer! Well, what the heck! You too can listen to it immediately at http://in.youtube.comwatch?v=2QEYOMpsEOk.
In the meanwhile, while financial market participants lament on their falling portfolios I will lament about the distortions and hypocrisies prevailing in Indian-&-global geo-politics, business-politics and the politics of 'terrorism'.
And I leave you with the Mongolian/Japanese lyrics of 'Lament' sung by a female chorus (in-between the 'yo yo yo yo' by the male singer) that I picked up from here:
Mandaj gardaj nara shnghenee
Manataygaa hoyoulaa daa huo
Martagdashghuy gurvan jill bolsson bolochigh
Mansuurahh noyrondoo hoyoulaa daa huo

life in financial markets: bloodbath everywhere

This is unprecedented. Stocks and indices crashing by 5-15% in all the world markets. Click on the following images individually to see how the panic is playing itself out:

life in financial markets: equity derivatives open interest position on the NSE

I did an analysis from data taken from 3 October 2008 trading data file of National Stock Exchange's equity derivatives segment to see what was going on. Here is a summary (click on the image for a clear view):

* – as on 3 October; based on Open Interest outstanding multiplied by (a) settlement price for futures and (b) (settlement price+strike price) for options

life in general: it takes anti-christian violence for world to notice hindus' violent behaviour

All organised religions creates their set of fanatical followers who resort to violence and violation of human rights. But behind them are also politicians, bureaucrats and police who manipulate such violence for their own greed for power.
India's population has Hindus in majority and the religion of Hinduism has its set of fanatical groups like the Rashtriya Swayamsevak Sangh, Vishwa Hindu Parishad, Bajrang Dal and the Bharatiya Janata Party. But these receive subte or direct support from political parties such as Congress and the Nationalist Congress Party. On the other hand, political parties such as Samajwadi Party support the Muslim extremist groups in India. And in the fanaticism of so-called 'development' followers on the remote un-influential people of non-urban India ALL political parties, including all the communist parties, are the SAME.
Free India's 60 years history has seen shocking violence against Muslims many times and once (in 1984) against Sikhs. The world has, with some honorable exceptions like the European Union's 2002 express of distress at the mass murder of Muslims in Gujarat in February-March 2002, has kept silent.
In recent weeks, we have seen Christians being attacked (read here, here and here). Since most of the non-Hindu, non-Muslim, non-Jewish, non-Chinese/Korean/Japanese world is Christian, this has begun to rattle them (read here, here and here). India's Congress Party, that is notorious for manipulating every situation to its benefit, led by Sonia Gandhi and which has its people unelected member, Manmohan Singh, as India's Prime Minister, is also now beginning to take notice (read here and here), but only because of the world condemnation.

During the Nazis' rule in Germany, during the 1930s and 1940s, there was a guy called Martin Niemoller (he was an early supporter of Hitler but later changed his stance), who said this about the goings-on in Germany at that time. It applies to all Hindu Indians in connection with the Nazification of India. Here is what he wrote:

"In Germany, they came first for the Communists, And I didn’t speak up because I wasn’t a Communist;

And then they came for the trade unionists, And I didn’t speak up because I wasn’t a trade unionist;

And then they came for the Jews, And I didn’t speak up because I wasn’t a Jew;

And then . . . they came for me . . . And by that time there was no one left to speak up."

life in journalism: public relations firms in india would do a goebbels proud

There is a slyness with which India Inc and their pubic relations (PR) companies treat the media. Partly, of course, it is the media's self-imposed cowardliness but it also due to the sophistication that the public relations companies (or in some cased the companies do it directly without hiring a public relations firm) deploy to discourage/intimidate/fool the editors and journalists that dare to ask even basic tough questions about their client-companies.
As a journalist, I have seen how some PR companies directly deal with the Editor-in-chief (or other senior editors) of a publication or a news channel and try to manipulate them if they perceive a junior-level editor/reporter probing the affairs of their clients a little deeper (such a journalist, in my view, would only be carrying out his/her journalistic duties more diligently).
The PR companies that try to aggressively wield a lot of influence on the top media editors include Genesis Burson-Marsteller, Vaishnavi PR, Perfect Relations and 2-3 more.
The media dare not even write about their PR companies as a part of the regular coverage of the role of all kinds of business entities in the economy and industry. But in June this year Tehelka magazine dared and wrote a story on them (you can read it here). It was a welcome torchlight on an evasive bunch of people although I still felt the story was soft.
There is a lot more to say about the techniques used by the PR companies that would do a Goebbels proud. The readers/viewers of Indian media do not adequately know the kind of insights/news/analysis they are missing out on due to such Goebbels'.

life in financial markets&general: unhealthy judiciary-corporate nexus

There is a deadly and unhealthy nexus between industry and judiciary that is among other few aspects that makes a mockery of the claims by India that it is the largest democracy of the world. There are two things going on, with regard to the rulings by the judges of various High Courts in the country and the judges of the Supreme Court of India, since a few years now and these have got accentuated in recent weeks and months.
1) When they have passed judgements in cases filed by citizens/villagers groups or NGOs against land grab (whether for SEZs or any other so-called 'development' (that, according to me, is a myth perpetuated by industry, blindly believed by urban/semi-urban consumers and aggressively supported by all the top media editors in India), protection of property rights and equal and fair treatment of their human rights they have ruled against. Two examples are one recent (early September 2008) judgement by Supreme Court judges dismissing a petition that strove to stop the illegal grab of farmers' land by Andhra Pradesh state government for a supposedly 'infrastructure' project (see here), and the 8 year old judgement by the Supreme Court on the Narmada dam issue when the Narmada Bachao Andolan filed a petition (in that ruling, two Supreme Court openly pimped for government claims and completely overlooked the major problems and development&environment rules violations that were going on).
2) On the other hand, when they have decided on cases filed by companies or government bodies, on similar issues or issues connected with property rights of companies and rich landlords, they have ruled in favour of them. Just today there has been one (see here). The companies ridicule NGOs and activist groups for using the courts often but reveal their hypocrisy when they themselves approach the courts to protect their vested business interests. Reliance Industries, for instance, last week filed a petition against a Maharashtra district's (Raigad's) collectors decision to hold a villagers' referendum on the SEZ that Reliance wants to build there. Then, Tata Motors, is asking the Calcutta High Court that details of the pact between the company and the West Bengal government for the Singur car plant not be made public. The judiciary of India protects the property rights of the rich and the industry but denies the same to the poor or not-for-profit NGOs.
Here is something I wrote on the same matter and emailed it to 3-4 newspapers for their 'Letters to Editor' section:
In the last 10 years the Supreme Court (SC) of our country has repeatedly handed out shocking treatment to the powerless rural citizens of India as well as to our country's voiceless ecology. In the name of large or small development projects the SC judges have denied the rural people their right to property and cared two hoots about preserving the fragile ecological balance of our country's rivers, mountains, seas, rivers and forests.
The latest case of two Supreme Court judges dismissing a petition that strove to stop the illegal grab of farmers' land by Andhra Pradesh state government for an infrastructure project is yet another nail in Indian democracy's coffin. To justify such verdicts, the central government of India, state governments, the Supreme Court and the various High Courts, have often resorted to the myth of employment generation.
All these bureaucrats, politicians and judges are either lying or they are ignorant of the vast potential that rural lands have for the people residing there in generating agri-based employment. In fact, about 50 per cent of this potential is already being tapped by local people in the remote lands of India. If the politico, bureaucracy and judiciary can not assist in tapping the remaining 50 per cent potential the least they should do is to keep off from killing the existing 50 per cent tapped potential.
The latest SC judgement resorts to 'public good' argument. According to me, 'public good' is a myth. There is no objective assessment of the benefits and harms/pitfalls in any SEZ or other project. The state and bureaucracy is completely beholden to the industry lobby and oblivious to the repeated concerns expressed by ecologists and civil NGOs. The so-called 'development' benefits are, in my view, far lower than the benefits that would accrue if we were to even just leave the rural people alone and allow them to use their land and resources as per what they think is appropriate. Forcing city-centric development mindset on rural India is criminal.
The time has come for Indian civil groups and affected people to lodge a complaint against the Supreme Court of India in some relevant international courts. The Indian judiciary has lost its credibility.