| Professional
News |
| INCOME
TAX |
| Mauritius for automatic exchange of
tax info with India |
|
Delhi : Visiting Mauritius
PM Navin Ramgoolam on Tuesday offered support to India's
efforts to curb unaccounted wealth of some Indians returning
in the guise of legitimate investment, by ensuring that
investing entities in Mauritius are not fronts for tax
evaders.“We gave additional proposals to reassure India that
we will not allow anyone to abuse or misuse provisions of the
treaty (Double Tax Avoidance Convention signed between the two
countries in 1983),” Ramgoolam said at a media
briefing.
|
| SEBI |
| Sebi finds large-scale violation of
norms in some MF schemes |
|
Delhi : Market regulator
Sebi has found large-scale violation in several schemes of
select mutual fund houses where norms regarding minimum 20
investors and maximum 25% single investor exposure have been
breached repeatedly. These fund houses have been asked by Sebi
to immediately take redressal measures, failing which penal
actions can be taken, a senior official said.
|
| Diageo gets Sebi nod on Rs 11,449-cr
open offer for United Spirits |
|
Maharashtra : Global liquor
giant Diageo Plc has received market regulator Sebi’s
clearance for an open offer to acquire additional 26 per cent
stake in United Spirits Ltd for Rs 11,448.91 crore. This is
the second open offer made by Diageo to gain majority control
in India’s number one liquor firm.As part of the deal to buy
53.4 per cent stake in Vijay Mallya-led UB group’s USL, Diageo
has made a Rs 11,448.91 crore open offer for purchase of 26
per cent stake in the company from non-promoter
shareholders.
|
| After private companies, Sebi wants
PSUs to have 25% public float |
|
Maharashtra : Having
successfully implemented the 25 per cent free-float norm for
private companies, the Securities and Exchange Board of India
(Sebi) now wants the government to pare its holdings in
public-sector undertakings (PSUs) to below 75 per
cent.According to sources familiar with the developments, the
securities market regulator has already written to the finance
ministry proposing the minimum public shareholding (MPS) be
raised from 10 per cent to 25 per cent, to level the playing
field. The regulator is likely to set a three-year timeframe
for PSUs to meet the 25 per cent MPS requirement to avoid
crowding out.
|
| FDI
Policy |
| No FDI in multi-brand retail, says
Sitharaman |
|
Delhi : Reiterating BJP's
stand in its election manifesto that FDI will be allowed in
all sectors barring multi-brand retail, the new minister of
state (Independent charge) for commerce and industry Nirmala
Sitharaman on Tuesday said it is best not to open up
floodgates of FDI "now" in the retail sector as it will affect
small traders and farmers.The new minister also said boosting
exports through a new Foreign Trade Policy for the period
2014-19, enhancing economic and trade ties with all the
countries as well as creating more jobs will be priority areas
for the new government.
|
| Private life insurers pitch for
raising FDI limit to 49% |
|
Delhi : As the Narendra
Modi-led Government hits the ground running, private life
insurers are quite confident that the new dispensation would
get the FDI limit in insurance sector hiked to 49 per cent
from 26 per cent.They see foreign direct investment (FDI)
limit hike as a low-hanging fruit that the new dispensation
would be inclined to pick to bring back some energy in the
insurance sector.The main hurdle is getting the pending
insurance Bill — which would pave the way for hike in FDI
limit to 49 per cent — passed in Parliament.
|
| Finance & Money
Markets |
| Infra, realty and power stocks see
highest volumes in last one month |
|
Maharashtra : With the new
government fuelling hopes of an economic recovery, stocks of
realty, infrastructure and power companies within the BSE 500
universe have seen the highest average daily volumes over the
last one-month period.Real estate developer Unitech tops the
list as the counter has seen daily average volumes of 9.2
crore shares over the last one month, which is 69% higher than
daily average volumes seen on the counter in CY14. Within the
infrastructure space, GMR Infrastructure’s one-month average
daily volumes are 78.63% higher than the average volumes seen
in CY14.
|
| Run up to monetary policy: Hawkish
stance to weaken rupee |
|
Maharashtra : It is widely
expected at its second bi-monthly policy review on June 3, the
Reserve Bank of India (RBI) will maintain status quo on the
policy rate. In case the central bank adopts a hawkish stance,
it is likely the rupee will weaken, though bond markets might
remain range-bound.Market participants say a hawkish stance
could dim any possibility of a rate cut in the near future.
This will hit inflows, a key determinant of the direction of
the domestic currency.
|
| Current market rally may give India
more MSCI weightage: Analysts |
|
Maharashtra : India's
weightage on MSCI and FTSE Emerging Market indices is expected
to increase significantly in the next revamp as more stocks
could find their way to these gauges in the wake of the recent
rally on Dalal Street. Many foreign institutional investors
(FIIs), mainly exchange traded funds (ETFs), benchmark their
Indian portfolios to these indices.
|
| RBI asks Kotak Bank to trim
promoter's stake to 40% by September |
|
Maharashtra : RBI has
directed Kotak Mahindra Bank's promoter Uday Kotak to pare
holding of promoters to 40% by September. "The RBI has
directed the bank to bring down its promoter shareholding to
40% by September 30, 2014, as per estimates provided by the
bank. The next estimate is 30% by December 31, 2016," the bank
said in a statement to the stock exchange. The promoter
holding in the bank is 43.58%; Uday Kotak directly holds
39.76%. An email query sent to the lender remained
unanswered.
|
| Commodities |
| Sugar industry body seeks hike in
import duty to 40% from 15% |
|
Delhi : Sugar industry body
ISMA expected that the new government would provide a stable
policy for the sector that supports 50 million farmers and
sought hike in import duty of the sweetener to at least 40 per
cent.Import duty currently stands at 15 per cent. Industry has
been demanding an increase in import duty to boost sales of
domestic sugar as the country has surplus production."The
sugar industry has great expectations from the new government
as it is facing financial difficulties for a long period and
needs stability.
|
| Brent Trades Near 4-Day Low After
Ukraine; WTI Is Steady |
|
Delhi : Brent crude traded
near its lowest closing level in four days amid speculation
that heightened discord between Russia and Ukraine following
weekend elections won’t impact oil supply. West Texas
Intermediate was steady before economic data.Futures were
little changed in London even as President-elect Petro
Poroshenko said there will be an increase in the efficiency of
operations against eastern separatists amid tensions with
Russia, the second-largest net oil exporter.
|
| INTERNATIONAL
BUSINESS |
| Foxconn makes 4G play with $390M
stake in Taiwan telecom |
|
Apple supplier Foxconn plans to secure
a roughly 15% stake in Asia Pacific Telecom as it expands to
4G communications.Hon Hai Precision Industry, also known as
Foxconn, plans to buy a stake in Taiwanese mobile telecoms
operator Asia Pacific Telecom in order to strengthen its
position within the 4G telecoms industry.The manufacturer,
which supplies Apple with components for its iPhone and iPad
mobile devices, is planning to shake hands on a deal with Asia
Pacific worth T$11.6 billion ($390 million).
|
| MERGER &
ACQUISITION - NATIONAL |
| Motherson Sumi buys auto wiring
business of US company Stoneridge for $66
million |
|
Delhi : Motherson Sumi
Systems (MSSL), India's largest auto component maker by
turnover, has announced the acquisition of USbased
Stoneridge's wiring harness business for $65.7 million (around
Rs 385 crore) becoming one of the largest players in the
vehicle wiring business. MSSL, the flagship company of the
$5.4-billion Samvardhana Motherson Group, has acquired
Stoneridge through a wholly-owned subsidiary.
|
| Pension/Provident
Fund |
| Provident funds stuck on beaten path,
miss investment windfall |
|
Maharashtra : Nearly 3,000
standalone provident funds have missed investment
opportunities in highyielding debt securities over the past
few months since they have been following the old investment
pattern since 2004 that is supposed to change soon. The new
pattern was expected to be notified by March-end after a bit
of dilly-dallying, but later it was further postponed due to
the Election Commission's model code of conduct that was in
place till May 16.
|
| Banking |
| Basel III: banks may raise Rs 3
trillion in non-core capital by FY17 |
|
Maharashtra : Rating agency
ICRA on Tuesday said banks would have to mop up Rs 3 trillion
(Rs 3 lakh crore) in non-equity debt over the next three years
as they migrate to the capital intensive Basel-III framework.
"Banks both public and private sector ones, are expected to
issue non-equity capital bonds of Rs 2.5-3 trillion over the
next three years till FY17," it said in a statement.
|
| Notifications
& Circulars |
| EXCISE |
| Circular No. 982 / 06 / 2014 –
CX (Delhi) 15/05/2014
|
| Regarding classification of rice par-boiling
machinery |
| SEBI |
| CIR/IMD/DF/10/2014 (Maharashtra) 22/05/2014
|
| Circular on Mutual Funds |
| CIR/MRD/DP/ 16
/2014 (Maharashtra) 16/05/2014
|
| Establishment of Connectivity with both depositories NSDL
and CDSL – Companies eligible for shifting from Trade for
Trade Settlement (TFTS) to Normal Rolling Settlement |
| CIR/MRD/DP/15/2014 (Maharashtra) 15/05/2014
|
| Risk management framework for Foreign Portfolio Investors
(FPI) under the SEBI (Foreign Portfolio Investors)
Regulations, 2014 |
| RBI |
| Notification No.
RBI/2013-14/615 (Delhi) 28/05/2014
|
| Lending to Public Sector Undertakings |
| Notification No.
RBI/2013-14/607 (Delhi) 27/05/2014
|
| Issue of Pre-paid Payment Instruments-UCBs |
| Notification No.
RBI/2013-14/608 (Delhi) 27/05/2014
|
| RRBs - Need for Bank Branches/ATMs to be made accessible
to persons with disabilities |
| Notification No.
RBI/2013-14/609 (Delhi) 27/05/2014
|
| Rounding off transactions to the Nearest Rupee by
NBFCs |
| Notification No.
RBI/2013-14/610 (Delhi) 27/05/2014
|
| RRBs - Opening of Bank Accounts in the Names of
Minors |
| Notification No.
RBI/2013-14/611 (Delhi) 27/05/2014
|
| RRBs - Levy of penal charges on non-maintenance of minimum
balances in inoperative accounts |
| Notification No.
RBI/2013-14/612 (Delhi) 27/05/2014
|
| Levy of foreclosure charges/pre-payment penalty on
Floating Rate Term Loans |
| Notification No.
RBI/2013-14/613 (Delhi) 27/05/2014
|
| Risk Management and Inter Bank Dealings |
| Notification No.
RBI/2013-14/614 (Delhi) 27/05/2014
|
| The Depositor Education and Awareness Fund Scheme, 2014
–Section 26A of Banking Regulation Act, 1949- Operational
Guidelines |
| Notification No.
RBI/2013-14/603 (Delhi) 26/05/2014
|
| Levy of foreclosure charges/pre-payment penalty on
Floating Rate Term Loans |
| Notification No.
RBI/2013-14/604 (Delhi) 26/05/2014
|
| Know Your Customer (KYC) Norms /Anti-Money Laundering
(AML) Standards/ Combating of Financing of Terrorism (CFT)/
Obligation of banks under Prevention of Money Laundering Act
(PMLA), 2002 – Harmonization of KYC norms for Foreign
Portfolio Investors (FPIs) – Primary (Urban) Cooperative Banks
(UCBs) |
| Notification No.
RBI/2013-14/605 (Delhi) 26/05/2014
|
| Deferred Payment Protocols dated April 30, 1981 and
December 23, 1985 between Government of India and erstwhile
USSR |
| Notification No.
RBI/2013-14/606 (Delhi) 26/05/2014
|
| Requirement for obtaining prior approval of RBI in cases
of acquisition/ transfer of control of NBFCs |
| Notification No.
RBI/2013-14/602 (Delhi) 23/05/2014
|
| CCTV Coverage of all cash handling operations in Currency
Chests |
| |
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