IPL Auction Expenditure by teams and True Value of players

Naavi had during 1999 cricket world cup promoted a concept of “Naavi’s Cricket Rating” which was designed with many innovations not otherwise available at that time. This was originally developed to assist advertising cients with a  tool to promote their brand around a public promotion scheme involving a scientific identification of the “Player of the Tournament”.  A revised version was also used during the 2007 world cup successfully.

Since the creation of IPL, the undersigned has been thinking about how to create a system of true valuation of a player based on performance as against the prices paid by different teams for different players.

Now with the completion of the recent auction for IPL 2014, the undersigned is trying to develop a new system where the performance based rating would be used along with the price of each player at the time of action to develop a “Value Index” for the players.

Apart from developing the value index for the sake of following the cost linked performance of the players, it is also envisaged that a collateral system where by the teams can develop a system of monetizing the player cost into a derivative instrument and raise finance either for  a temporary period as working capital or for a longer period.

This scheme would provide a different dimension to the player valuation in which public will provide their own perception of the value of the player. This may help teams when they need to trade the player between teams or when their contracts are to be renewed in future. Additionally, funds raised may help in optimizing the resources so that the team can reap a benefit on their investments.

The grand scheme drawn up requires complete cooperation from BCCI since there could be legal issues involved in the successful running of the scheme. However limited use of the rating system for evaluating the investments made on the players and using the information as part of the brand promotion and marketing activities of a large corporate entity would be feasible outside the BCCI regulations.

The scheme would require running of a software application and ability to invest in marketing and also harness the benefits.

The undersigned would be happy to discuss possibilities with interested companies who may contact the undersigned at naavi@vsnl.com

Naavi

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E Registration of Rent agreement

It is reported that IG Maharashtra has introduced a system of E-Registration of Rent and Lease agreements.

See Report here

“It is necessary for the people to provide their Aadhaar card. The people have to pay and stamp and registration duty through net banking. The duly fulfilled forms will be later sent to the sub-registrar and after his verification, the digitally signed leave and license agreement would be delivered to the inbox of the applicants “

It is unclear how this new procedure is viewed under ITA 2008 according to which “Any contract for the sale or conveyance of immovable property or any interest in such property” is excluded from the provisions of the Act including the legal validity under Section 4 and 5 of ITA 2008.

If “Leave and License Agreement” has the effect of transfer of interest in an immovable property and “Registration” is  mandatory for the transaction to be valid, then rendering any of these documents in electronic form may not have legal validity.

The detailed process needs to he reviewed to understand how this process works.

Naavi

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Bitcoin Development in India..

During the last one month the Bitcoin community is waiting to see how the regulatory uncertainties in India are shaping up.

RBI has come up with it’s advisory with a rider that it may  revise its view on Bitcoins any time in the future. Given the tendency in India to come up with retrospective legislations, Bitcoin community cannot make any further insvestments in India until the air is cleared.

In this connection a demand for clarification has been made with RBI and response is awaited. (See report in coindesk)

Naavi

Also Read: FM’s comments

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Why ECI is hesitant to allow E Voting for NRIs?

Way back in 2010, voting rights were granted to NRIs in India. However it is required for NRIs to physically be present in India to cast their votes. This is practically impossible and hence the so called voting rights to NRIs is a myth.

Presently e-voting has been resorted to under Company’s act and ITACT2000/8 has provided a legal base for e-voting long time back. In fact the EVMs itself is a kind of e-voting mechanism where the voter’s choice is captured in the form of an electronic document, retained and processed as electronic documents, all under the provisions of ITA 2000/8.

It is therefore not logical for ECI to refuse digital signature based voting for  NRIs. Unless ECI is facing opposition from the ruling Congress party for such a move under the fear that it may benefit the BJP, there is no reason why this system should not be introduced in the next Loksabha elections.

Probably ECI can set up a centralized digitally signed e-voting system and make it available to all voters whether in India or abroad to cast their votes through a valid digital signature issued by an Indian licensed Certifying authority.

In the least, this facility can be offered to the NRIs who have no other option.

Naavi

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Apple removes Bitcoin apps from the appstore

In a telling blow to the Bitcoin community, Apple has taken a policy stand to remove all applications from the app store stating that “they may not include content that enables, facilitates or encourages an activity that some countries deem illegal. App Store Review Guidelines require that apps be legal in all locations in which the app is available.”

Since there will always be some country in which Bitcoin may be illegal, this policy means that Bitcoin apps will go out of app store permanently.

The guideline may not be easy to follow in respect of all apps since there is no way Apple can ensure that no apps will enable illegal activity. After all the SMS application or e-mail itself can be used for illegal purpose. Similarly the Bitcoin can be used for both legal and illegal purpose. In this context the stand taken by Apple presumes that Bitcoin can be used only for illegal purpose and not for any legal purpose.

We need to observe if the popularity of Bitcoins is strong enough to make Apple change its guideline in the coming days.It would be interesting to see how the Bitcoin community responds to this challenge. If they fail to convince Apple, it is possible that in future some Governments may convince Microsoft that all Bitcoin applications must be blocked by Windows OS. This would be a back door way of banning Bitcoin.

Related Article

Naavi

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RBI’s silence on Bitcoins

A Canadian resident Venugopal Badarawada has sent a notice to RBI seeking clarifications on RBI’s stand on Bitcoins, and opened a window of opportunity for RBI to come out with a clarification on its stand on Bitcons.

The earlier press release warned the public of the possible consequences of violation of law as well as the financial risks involved in dealing with Bitcoins. The warning given to public was in order since it is the duty of RBI to keep the public warned of such risks.

However while releasing the advisory, RBI also stated that they may review the regulatory structure by saying

“The Reserve Bank has also stated that it is presently examining the issues associated with the usage, holding and trading of VCs under the extant legal and regulatory framework of the country, including Foreign Exchange and Payment Systems laws and regulations.”

It is the uncertainty that RBI has introduced through these lines that has invited the action of Mr Venugopal.

The undersigned has already clarified that at this point of time, Bitcoin is an “Electronic Document” as per Information Technology Act 2000/8 (ITA 2008) and hence carries “Legal Recognition”. If this “Legal Recognition” has to be removed, it would be necessary to amend ITA 2008. It is in this context that the undersigned has stated that RBI has no rights to ban Bitcoins.

This “Legal Recognition” of Bitcoins as per Section 4 of ITA 2008 makes it an “electronic document” which can be produced as evidence in a Court of law to whatever it represents. Whether this electronic document is a “Currency” or a “Commodity” or a “Derivative” is left to the community to decide based on their perception on its usage. For want of a better description, it is better to consider Bitcoin (as in deed any Crypto Currency) as a “Commodity in electronic form which the public may use for any legal purpose”. No other conclusion is logical.

It is true that Bitcoins can be used for money laundering and so is any other currency or commodity.  If RBI is concerned about money laundering usage of Bitcoins, it has to stop at giving such an advisory and say that Bitcoin is otherwise not illegal to mine, possess and transact.

RBI’s vagueness is detrimental to the constitutional right of an individual in India to carry on a business of his choice. If he wants to do business with Bitcoins, he has to presently live under the constant fear that RBI may at any time change the regulation and more so with retrospective effect and render him a criminal ab-initio. Hence RBI’s silence cannot be considered acceptable.

Since there is no other way that the public can force RBI into giving a clarification, Venugopal has rightly declared his intention to approach a Court to direct RBI to clarify.

In case RBI now comes up with a view that Bitcoin is illegal, it has to state the ground under which it is considered illegal. Merely the fact that the commodity is used by some as “Virtual Currency” may or may not be considered as sufficient ground to ban it. If however RBI takes such a stand the Courts can be moved to clarify if RBI is right. It is only when the Supreme Court gives its clarification on the matter that the issue would be settled.

Let’s wait for the RBI’s reply and further action that M Venugopal contemplates.

Naavi

Related Article

Updated on 3rd Feb: Reference in ET

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