FIIs continue robust investment in stock markets amid hopes of further reforms

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Foreign Institutional Investors (FIIs) continue to pour money into the Indian stock markets amid hopes of further economic reforms by the Indian government. According to India’s capital market regulator, the Securities and Exchange Board of India (SEBI), the FIIs pumped over Rs 3600 crore in the Indian stock markets this month thus far. Gross eq

Dismal run- Indian rupee is the worst performing global currency

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After a dismal run last year, the rupee’s woes have deepened in 2012 with the Indian currency recording the biggest fall against the US dollar in the past one month when compared to other major global currencies as a worsening domestic and global economic outlook sapped the demand for the Indian currency, spurring safe haven demand for the green

India’s inflation likely to pick up by year end, Morgan Stanley warns

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The slight moderation in inflation in October is unlikely to persist, with price pressures expected to remain firm over the coming months, US investment banking giant Morgan Stanley said in a report on Sunday. India’s annual inflation is expected to accelerate by the year end and may reach 8 to 8.2 per cent in December 2012, Morgan Stanley said.

2G spectrum auction, IIP flop show may hit borrowing costs, GDP target

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The 2G telecom spectrum auction which netted the government just Rs 9,407 crore, as against the target of around Rs 40,000 crore, and the steep fall in industrial output may again force the economists to revise the GDP estimates of India, as even the bond traders fear a jump in the government borrowing. Rise in government’s borrowing, which is v

National Investment Board proposal to come up before Cabinet soon for approval: FM

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The finance minister P Chidambaram has said that Cabinet may soon take up the proposal to set up National Investment Board (NIB) aimed at expediting clearance to large projects and boost investments in the Asia’s third largest economy. The finance ministry has already finalized a cabinet note for creation of the National Investment Board (NIB) t

GAAR amendments finalized; draft will now go to PMO: Chidambaram

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After months of bullying, the government has finally completed the draft work on general anti-avoidance rules (GAAR)—the controversial law against tax avoidance through foreign investments. The finance minister P Chidambaram, realizing that there is reluctance to invest among investors, said that the ministry has finalized the amendments to the

India’s growth will pick up in second half of current fiscal: Chidambaram

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The finance minister P Chidambaram has said that India’s GDP growth was set to pick up pace during the third and fourth quarters ofcurrent fiscal and also said that government would be able to meet its fiscal deficit target for he fiscal. Chidambaram, speaking at a media briefing on the 2G-spectrum auction, suggested to the media that there was

India to be the second most competitive manufacturing economy in the next 5-yrs

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Next five years could be very exciting for India as it could soon become the second most competitive economy in the world after China in terms of manufacturing. According to the 2013 Global Manufacturing Competitiveness Index compiled by Deloitte Touche Tohmatsu and the US Council on Competitiveness, five years from now, emerging economies would move

RBI governor advises against ‘Casino Banking’

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Demanding inclusive growth to suppress the increasing disillusionment of the masses, Reserve Bank of India (RBI) governor, D Subbarao notified the dangers of casino banking that has over- financialised the real economy. “The general disenchantment with 'casino banking' in certain developed economies underscored the dangers of over-financ

Govt seeking support of political parties for important bills: Chidambaram

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Just a week ahead of the winter session of parliament, the finance minister P Chidambaram has said that government has been seeking the support of political parties for passage of important bills including amendment to the insurance bill, Banking regulation amendment bill and Direct Taxes Code (DTC). Chidambaram said the winter session, which starts o

Subbarao says inflation still running high

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The Reserve Bank of India (RBI) governor D Subbarao has said that inflation at around 7.5 per cent was not a comfortable level but then also added that the central bank was on alert to manage both growth and inflation. The statement of Subbarao came after October headline inflation unexpectedly fall in inflation to 7.45 per cent in October from 7.81 p

India probing Wal-Mart for alleged violation of foreign exchange norms

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World’s largest multi-brand retailer Wal-Mart Stores Inc has come under the scanner of Indian Enforcement Directorate (ED) for alleged violation of foreign exchange rules, said a media report. US based retail giant has been accused of ‘clandestinely and illegally’ investing USD 100 million in Bharti Retail Ltd, a 100 per cent subsidi

2G auction: Top 3 bidders not to pay anything for first three years; Govt may net only Rs 380 cr this fiscal

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The recently concluded 2G spectrum auctions, which has left various question marks on the policies of the government, may require top three bidders not to pay anything for first three years to the government, as their fee already deposited with department regarding licences acquired in 2008 which were later on quashed by Supreme Court, will offset the

Comfort level for inflation is 4-5%: K C Chakrabarty, RBI Deputy Governor

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Pointing that the reduction in key interest rate would depend upon price situation, RBI Deputy Governor K C Chakrabarty today said its comfort level for inflation is 4-5 per cent. Speaking on the sidelines of meeting of heads of public sector banks with Finance Minister P Chidambaram, Chakrabarty said, “We are looking for 4-5 per cent inflation

RBI asks banks to discontinue reporting fraud cases of above Rs 1-cr to its fraud monitoring cell

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Reserve Bank of India (RBI) has asked the banks to stop the practice of reporting attempted fraud cases involving Rs 1 crore or above to its Fraud Monitoring Cell. RBI released a notification and said, “On a review and as a part of rationalisation of process and procedures ... the practice of reporting attempted fraud cases of Rs 10 million and

FM asks RBI to expedite work on banking licence guidelines

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The finance minister P Chidambaram has asked Reserve Bank of India (RBI) to proceed with the final guidelines on licences to new banks and clear the ground for inviting applications from interested entities “in anticipation of Banking Regulation Act (BRA) being amended”. “There is a roadmap and we have written to RBI recently urging

Digital financial services market size to increase 8-times by 2020

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Increasing use of technology to access the financial services is all set to increase the market size 8 times and touch USD 70 billion by 2020, says a report from Mckinsey. The report suggested, “Consumers are using technology to rapidly change the way they access financial services, and financial institutions will have to respond even faster in

Finance Ministry to launch Rajiv Gandhi Equity Savings Scheme this week

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The Finance Ministry is likely to notify the Rajiv Gandhi Equity Savings Scheme (RGESS) this week; the scheme is aimed at attracting retail investors to equity. The scheme has already got the approval of the finance minister, P Chidambram and had indicated that the revenue department would notify the scheme shortly and the Securities and Exchange Boar

October Retail inflation jumps to 9.75%

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Retail inflation, as measured by the Consumer Price Index (CPI), rose to 9.75 per cent in October from 9.73 per cent in the previous month, showed government data released today. The consumer inflation, in rural areas, increased to 9.

Sep IIP shrinks unexpectedly by 0.4% Y-o-Y

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Just a day before the Diwali, markets and investors seem to have got the least expected shock. The index of industrial production (IIP) for the month of September contracted at a shocking 0.4 per cent versus 2.5 per cent in the same p

RBI has to strike balance between growth and inflation: PM

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It seems like Reserve Bank of India (RBI) governor D Subbarao has found an ally in Prime Minister Manmohan Singh who recognized the central bank’s efforts to curb inflation and spur growth by gradually lowering the CRR, SLR, and