RBI prepares draft norms on ownership of company with foreign investment

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In order to bring clarity on the status of a control in a company—Indian controlled or foreign controlled, the Reserve Bank of India (RBI) has been preparing draft norms, to be issued under the Foreign Exchange Management Act (Fema), for seeking a clear definition of control in sync with that in the Companies Bill, 2012 The new norms, expected t

Recovery in Indian economy will begin from the June quarter: Credit Suisse

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Falling inflation and interest rates and improving fiscal and current account deficit condition of India has prompted Credit Suisse to hint at a June onwards recovery in the economy. In a report, the international brokerage firm said, “We are hopeful that a recovery will finally begin from the June quarter. Over the next few months we should see

Loan growth of India to fall to 15-yr low in FY14: BofA-ML

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Bank of America-Merrill Lynch (BofA-ML) has said that the loan growth of India would fall to 13 per cent in the current fiscal, a 15-year low. In a report, BofA-ML said, “We are bearish on FY14 loan growth and expect that it to fall to less than 13 per cent, a 15-year-low.” Even this tepid growth will be driven by working capital loans and

51 NSE stocks to shift to trade-to-trade segment from April 12

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The National Stock Exchange (NSE) will send as many as 51 stocks to the trade-to-trade category from April 12 so as to disallow speculative trading in those stocks and make the delivery of shares and payment of consideration amount as mandatory. Stocks that will be shifted to that category include A2Z Maintenance & Engineering Services, Bartronics

ADB pegs India’s economic growth at 6% in FY13

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The Asian Development Bank on Tuesday forecasted that the chances of the Indian government meeting the fiscal deficit target of 4.8 per cent of the GDP in the FY 2013 heavily depends on pick up in the economic growth. The bank admitted that though the government met its fiscal deficit target of 5.2 percent in the current financial year, the pattern o

India companies invest $1.88 bn overseas in March

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Indian companies invested USD 1.88 billion or around Rs 10,260 crore in foreign countries during the month of March, up from USD 1.65 billion invested during the previous month, said a data released by Reserve Bank of India (RBI). While the majority of investments were in the form of guarantees to their wholly owned subsidiaries, companies also inves

PPP policy panel for coal output to meet today

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The panel formed by the government to boost coal output in India will meet today to discuss public-private-partnership (PPP) policy as country’s biggest coal miner Coal India Ltd (CIL) continues to struggle with falling output, leaving power producers dependent upon costly imports to fulfill their requirements.

The panel was formed l

FinMin plans to offer sovereign bonds to foreign investors; RBI not enthused: Report

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The finance ministry has now mooted the idea of allowing foreign investors to buy India’s sovereign bonds to jump start the country’s foreign reserves as well as bridge the current account deficit (CAD), but the central bank is said to have expressed uneasiness over the plan which may put Indian financial system at risk to global forces i

RBI to issue Rs 10 notes carrying new rupee symbol

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The Reserve Bank of India (RBI) said it will issue Rs 10 denomination banknotes that would include the newly-created rupee symbol. The new notes would bear the inset letter 'M' in both the numbering panels of the Mahatma Gandhi series, 2005.

As per the RBI release, the note will also bear the signature of RBI Governor Dr D Subbarao

Issues of regulatory clearances to mega-projects to be resolved in 5-6 weeks: Montek Singh Ahluwalia

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Promising the investors, deputy chairman of Planning Commission, Montek Singh Ahluwalia, said that issues related to pending regulatory clearances to several mega-projects would be resolved in the coming 5-6 weeks. Blaming the delay in clearances to the amount of public scrutiny that various projects are subject to, Ahluwalia said that the only way to

CCEA to take up PSUs Exchange Traded Fund proposal this week: Report

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The Cabinet Committee on Economic Affairs (CCEA) is likely to take up the proposal of setting up of PSU Exchange Traded Fund (ETF), aimed at reducing the volatility in stock prices of the state-run companies after disinvestment, a media report said. The proposal was placed by Disinvestment Department for setting up of ETFs which would comprise 2-3 per

Efforts will continue to kick-start 341 stalled projects: FM

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Finance Minister P Chidambaram on Monday said as many as 341 projects are stalled in India currently for various reasons and also expressed his commitment to remove those hurdles which are hampering the implementation. The statement came after Chidambaram met leading bankers on Monday to discuss the reasons for various stalled projects. “We are

Foreign debt funds stop remittances back to Cyprus

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PE players and other foreign funds which invested in Indian debt instruments through Cyprus are now refraining from taking their redeemed investments back to the near-bankrupt tiny Mediterranean island, said a media report. Analysts said that these funds are wary of safety of their money following the imposition of haircuts on bank accounts, tax hike

Govt proposes to provide direct cash subsidy on LPG

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Under the direct benefit transfer scheme, the government has decided to transfer the cooking gas, liquefied petroleum gas (LPG) subsidy direct in cash, finance minister, P Chidambaram told media. Chidambaram while addressing media said that he would soon meet petroleum minister Veerappa Moily to have words on the aforesaid proposal. The proposal which

Excise duty hike weigh heavily on Govt’s revenues as it loses Rs 2,500 cr in FY’13

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As the finance ministry started battle against tax evaders, it has been revealed that excise duty evasion in the country rose up to Rs 2,500 crore in 2012-13, an increase of 120 per cent over evasion of Rs 1,139 crore in the previous fiscal, mainly due to increase in duty by 2 per cent. Reports said that sectors such as coal, iron, steel and non-ferr

India Inc. raises Rs 5,676 cr through QIP route in Feb’13

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Qualified Institutional Placements (QIPs) is increasingly becoming one of the most preferred routes for fund raising for India Incorporation. Indian companies garnered a mammoth Rs 5,676.2 crore by issue of shares to institutional investors in February 2013, the biggest amount raised through QIPs since October 2010, data from market regulator the Secu

FIIs may go on a selling spree over coming days amid cloudy domestic

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Foreign Institutional Investors (FIIs) pumped a net Rs 639 crore into the Indian stocks markets in April so far. However, market experts see the probability of FII outflows over the coming days as fears of early elections; a widening current account deficit and a deepening economic slowdown dampen sentiment. According to data from market regulator SE

6% growth just not enough given India's poverty level: Subbarao

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The Reserve Bank of India (RBI) governor D Subbarao on Saturday said it will announce its economic growth estimates for the current financial year (2013-14) on May 3, when it announces its annual monetary policy. Speaking at an event organised by the Federation of Karnataka Chambers of Commerce and Industry (FKCCI), Subbarao said, “Various inves

Close collaboration between center, state governments will create jobs: Sachin Pilot

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Corporate Affairs Minister, Sachin Pilot today said that the central government should work in close collaboration with the state governments in order to attract more investments from the private sector, a move that will create additional jobs in the country. "... We as government of India have to work very closely with state governments because

Government's $15 bn fighter jets’ buyout likely to get delayed

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One of the most sought-after Rafale deal involving 126 fighter jets is expected to face some delays. Touted as one of the most expensive agreements signed with a firm called Dassault Aviation, the two sides have been struggling to reach an agreement over the role of state-run Hindustan Aeronautics Ltd (HAL). India chose Dassault-made Rafale jet for ex

I-T department issues tax notice of nearly Rs 4000 crores to AV Birla group companies

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The Income Tax (I-T) department has recently given a major thrash to the AV Birla Group by encircling two group entities, Idea Cellular and Aditya Birla Telecom Limited (ABTL) and issuing them a tax demand of nearly Rs 4000 crores on a telecom business de-merger executed in 2009. The information has been revealed by three sources familiar with the dev

CPI (M) sends out negative vibes to ongoing BTIA negotiations

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Bengal’s CPI (M) has shown deep concern over the ongoing talks about the Bilateral Trade and Investment Agreement (BTIA), saying that it has proceeded without any due examination by Parliament. The party clearly stated that the entire negotiating process has been non-transparent sans any scope of public consultation with affected sections, parl

RBI governor presses upon need of preventing round-tripping

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The Reserve Bank of India Governor, D Subbarao has stated that there is a requirement of preventing round-tripping in order to prevent abuse of treaties. The move will aid in pitching for tighter control on inflow of funds and that too from dubious sources. "There is round-tripping and there is a need to prevent that," Subbarao quoted. &quo

Chidambaram to meet India Inc, Bankers to set free stalled projects

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Worried about the slowing economic growth, finance minister P Chidambaram will initiate a series of discussions with India Inc and bankers from next week to remove the infrastructure bottlenecks which are stalling projects worth around Rs 7 lakh crore. FM’s first meeting is scheduled on Monday in Mumbai, followed by another in Bangalore. The me

CCEA approves partial decontrol of sugar sector

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The Cabinet Committee on Economic Affairs (CCEA) on Thursday partially decontrolled the Rs 80,000 crore sugar industry of India and abolished the decades-old practice of regulating how much sugar a mill can sell in the market. In a much needed boost to the sugar industry, the CCEA also abolished the levy system in which a company is forced to sell 10