It wasn't a buzzing week at the markets, as news flow reduced to a trickle. Even so, there was action from several regulatory bodies, both here and abroad, that provided some sound bytes for the studio to chew on. Here's a piece of the conversation:

Prarthana: The TDSAT (telecom disputes settlement and appellate tribunal) has come to the rescue of Idea Cellular by restraining the department of telecom (DoT) from demanding Rs 250 crore fine.

Vedant: Yeah true! The contentious issue of overlapping licenses of Idea and Spice seems to be running endless laps on the legal ground. Idea contends that it would get nothing in return for the Rs 843 crore it paid as entry fee.

Prarthana : And the DoT for its part is stating that it is a case of violation of 10 per cent cross holding norms. Spice was taken over by Idea in June 2008 and this saga has been continuing with a merger approval yet to come from the DoT. But the stock itself remains cool to these developments!

Vedant : Anyway… the US drug regulator has once again pulled up Indian pharma companies… this time it was Cadila Healthcare and Dr Reddy's. While the former had violated certain manufacturing practices at its Gujarat facility, Dr Reddy's Mexican facility has been put on import alert.

Prarthana : Analysts though say not much should be read into these developments as even multi-national pharma companies get rapped periodically by the US FDA. Besides, with increase in drug fillings, warnings and import watches can be expected to rise, they say.

Vedant : There's action in the political space too! The week saw Dayanidhi Maran resign and Murali Deora offer to resign!

Prarthana : Given the backgrounds to their resignation, one can only hope that at the end of this entire political churn, there will be more light than heat!

Vedant : And then there are some like Nandan Nilekani that go about their business, unfazed about political happenings, with a lion's heart and a steely determination.

Prarthana : Hmm… let me reserve my comments on that… but yes, it is certainly welcome that the task force he headed has recommended the cash mode to direct subsidy transfer to potential beneficiaries, especially for fertilisers and kerosene.

Vedant : What do you think of RBI's proposal, which seeks to cap banks' investments in non-subsidiary companies engaged in non-financial services to 10 per cent?

Prarthana : The point to note is that, it cannot exceed 10 per cent of the investee company's paid-up capital or 10 per cent of the bank's paid-up capital and reserves, whichever is lower. By doing this, the RBI would prevent banks from engaging in activities not permitted under the Banking Regulation Act.

Vedant : Hope the drought of news flow gives way to a steady stream of sound bytes next week… with the results season starting next week, I am sure we'll have plenty to talk about… Wonder what the new board at Infy is thinking?

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