CURRENT FINANCIAL EVENTS - 5.3.2013
Financial Events
·
GOVT.
MOVE TO CRACK DOWN TAX EVADERS: The
Finance Ministry has decided
to take help from the Financial Intelligence Unit India (FIU-Ind) in tracking evasion of Central Excise Duty and Service Tax,
mainly in cases, where defaulters are not traceable. The database of the
FTU-Ind may be helpful in locating
the .financial transactions or assets of defaulters of central
excise duty and service tax and realising the arrears.
·
BANKING
BILL—FOREIGN MONEY INFLOW &
RBI POWERS: The Banking Bill
has increased the cap in voting rights, which was long desired by the foreign investors as increase in minority shareholding is
expected to improve the Corporate Governance
Standards. This may increase flow of foreign money in Indian Banks. Further,
the RBI has been accorded greater regulatory control including the ability to overrule bank Boards and oversight, over
acquisition of a substantial stake in banks. RBI was demanding these
enhanced regulatory powers before inviting applications for new banking
licences.
·
SUPREME
COURT RULING ON COMPOSITE DEED: When
a person speaks his mind on, the way,
his properties must be disposed through a composite document, his intentions
must be culled from the document as to which of the properties are gifts, taking effect immediately, and which are
testamentary disposals, taking effect on his
death. .
·
GOVT.
MEASURES FOR WOMEN JOBS: The
Government has suggested a series of measures
including fast tracking job cards for widowed and destitute women in villages
and providing worksite facilities such as crèches, as part of measures to
improve women's participation in the Mahatma Gandhi National
Rural
Employment Guarantee Scheme.
· PLANNING
COMMISSION TO CONTINUE SONSORED SCHEMES: The Planning Commission has favoured that
all centrally sponsored schemes with allocation of less than Rs.300 Crore may
be continued instead of discontinuation from
next fiscal year, as suggested by the Finance Ministry. A Plan Panel appointed committee headed by Mr. BK Chaturvedi had
suggested rationalization of schemes
to bring them down to 59 as against 147 now, which is expected to
enhance their flexibility, scale and efficiency.
·
PLANNING
COMMISSION ON ANNUAL GROWTH TARGET: The economy in the first half of
the current fiscal grew at 5.4% lower than 7.3% recorded in the corresponding period last year. For 2012-13 as
a whole, growth rate is estimated at 5.7-5.9% which would be the lowest
in the decade. After initially estimating
the growth rate at 9% in the Approach Paper, the Commission lowered the 12t" Plan target to
8.2% in September. Now the Planning Commission will seek the nod of the National Development Council to lower the
average annual growth rate for the 12th Plan period to 8%
from 8.2%. In the 11th Plan, the average annual growth rate was
7.9%.
· GOVT.
ANNOUNCES MORE SOPS TO LIFT EXPORTS: The Government had set
the export target of $360 billion for 2012-13 but up to November 2012, the exports has been at $189.2 billion only. Worried
by dwindling exports and the rising
trade account deficit, the Government announced a number of measures to
boost exports. The sops include extension of 2% interest subsidy for another
year till March 2014 and additional incentives on incremental exports.
· RBI PANEL
RECOMMENDATIONS AFFECT NBFC BUSINESS: The RBI constituted Panel,
headed by its former Deputy Governor Usha Thorat, to tighten rules
for NBFCs has proposed that these companies should have minimum Rs.25 Crore. She
has also suggested that their minimum equity capital be raised to 10% of
the risk-weighted assets from 7.5%. There are 12, 371 registered NBFCs as of November 2012.
There are 12,104 non-deposit taking NBFCs
while 265 take deposits from retail investors. More than 2/3rds of NBFCs
face closure if the Usha Thorat Panel recommendations on minimum asset size is
implemented by RBI, shutting a vital source of funding in many parts of the
country.
· RBI
CENSURED NABARD FOR WAREHOUSING REFINANCE: NABARD was censured by RBI for (1) charging
higher interest rate than prescribed (2) converting RIDF-XVII into a
refinancing scheme for warehousing infrastructure lending. NABARD had charged
an interest rate of 8% against the prescribed 6.5% for 2011-12. RBI told NABARD
to refund the amount refinanced with interest at applicable rates to
contributing banks in proportion to their contribution to the warehousing fund.
· COURT
RULING ON
DISHONOURING ACANCELLED DRAFT:
Delhi High Court has ruled that a payee can not haul a bank under Section 138
of the Negotiable Instruments Act for not honouring a demand draft that is
cancelled by the person who got the draft made, before being presented to it.
· CAG
REPORT ON ECGC:
According to the report of Comptroller and Auditor General of India , ECGC
should insist on a certificate from the banker that due diligence had been
carried out on the creditworthiness of the buyers. Further, out of 29 banks to
whom the whole turnover post- shipment (VVTPS) cover was issued, the claim
premium ratio of 13 banks was more than 200% and resulted in a loss of Rs.309
Crore during 2008- 09 and 2010-11. It is needed to introduce an effective
system of incentivising the banks with lesser claim ratio and dis-incentivise
banks with higher claim ratio in WTPS.
· CBDT
CLERIFICATION ON
WITHHOLDING TAX ON QFI: The Central Board of Direct Taxes (CBDT) has
clarified that withholding tax on Qualified Foreign Investor (QFI) income will
be computed on settlement basis and not on transaction basis, as stock broker
would credit the net proceeds of all transactions to QFIs on settlement basis
for one settlement period.
·
MARKET-LINKED FOCUS PRODUCT SCHEME: The Centre has added 60 new products and 3
new countries to the market-linked focus product scheme (MLFPS) as part of its
efforts to boost merchandise exports. The three new countries are Thailand , Taiwan
and the Czech Republic . The MLFPS seeks to incentivise
export of products that have high employment intensity in rural and semi-urban
areas.
· SUPREME
COURT RULING ON GRATUITY:




·
SEBI LAUNCHES SCORES
SYSTEM: SEBI has launched a new multi-media
campaign with a tagline "SEBI-Har Investor Ki Taaciat"-(SEBI -the
strength of every investor). The campaign focuses on a new mechanism called
SCORES (SEBI complaints Redress System) that displays a statement: "This
complaint window does not have a lunch break,
tea break or a closing time). SCORES, a
web-based centralized System was launched by SEBI in 2011. All the complaints are saved in a central database which
would generate relevant MIS reports to enable SEBI to take appropriate
policy decisions or remedial actions, if any.
·
RBI EXTENDS TIME FOR BASEL-III NORMS: RBI has extended the date for implementation of BASEL-III, the global capital norms
for banks, by 3 months to April 1, 013 from January 01, 2013. As per new global
norms, banks will have to hold
core capital of at least 7% of risk-weighted assets by 2018. According to RBI Governor, Indian banks will require
an additional capital of Rs.5 Lakh Crore to meet the
new global banking norms.
·
RETAIL
SECTOR TO FOLLOW FTP GROUP DEFINITION: The Government has decided to apply the foreign trade policy's (FTP)
definition of "Group Company" for
sourcing norms in the retail sector that prevent foreign cash- and-carry companies from selling more than
a fourth of their goods to affiliated entities
the Foreign Trade Policy defines a "Group Company" as an entity that directly or indirectly can exercise 26% or
more of voting rights in the other enterprise or appoint more than 50%
of board members.
·
DIRECT CASH TRANSFER
SCHEME ROLL OUT: The government has
said that the scheme will be rolled out in 20 districts initially and not 43 as
declared earlier. The scheme will take place only for 7 schemes, mainly
scholarships or women welfare-oriented ones, not in 34 schemes, as announced
earlier. The Government is not giving any
timeline for using this scheme for food, fertilizer or fuel, the most
critical segments for subsidy management.
·
RBI ROADMAP FOR CTS
IMPLEMENTATION: The Cheques
Truncation System (CTS) is all set to replace the age-old clearing system in India , where physical cheques were exchanged between banks. RBI
in collaboration with the National
Payments Corporation of India
has worked out a roadmap for CTS
implementation across the country. Just as power grids serve a geographical
spread, a CTS Grid spans geographies, in the sense that various clearing
centres across the country would be linked to a Nodal Centre for settlement.
·
GOVERNMENT
EMPOWERS RBI BUT KEEPS VETO: The
Central government empowered the RBI to deal with
Bank's top management, through a recent
Ministry of Corporate Affairs (MCA) notification but it reserved its veto on key powers. The move would take effect
once the notification is published in the official gazette.
·
EXTERNAL
DEBT OF INDIA RISES: India 's external debt increased by 5.8%
in April-September 12 to $365.3 billion due to increase in non-resident deposits, short term debt and commercial borrowings
by companies. The long term debt was
$280.8 billion, at end-Sept, an increase of 5.1% over the end March 2012 level, while short term debt
increased by 8.1% to $84.5 billion.
·
GOVT. ALLOWED IDRs
FOR MERGER: The Government has
allowed Indian companies to merge with firms
overseas through the issue of Indian Depository
Receipts (IDR) and RBI has been asked to issue detailed guidelines on the process. The shareholders of the merging
company can be paid in cash or in IDRs or partly in cash or partly in
IDRs.
·
US DEAL SAVES IT FROM
'FISCAL CLIFF' : The US Senate passed
the bill that saves the US from the so-called
'Fiscal-Cliff' to avert huge new Year tax hikes and postpone automatic spending cuts that had threatened to send the
US economy into recession.
·
SEBI SETS NEW NORMS
FOR SHAREHOLDING: The new rule set by
SEBI stipulating
stipulating 25% public shareholding is expected to infuse Rs.30,000 Core worth
of shares into the market. SEBI stated that the money coming to the capital
market has declined by 30-50% across the world over the past few years. In India alone, a total of Rs.60, 000 Core which was
expected to come through the capital market has been shelved.
·
GOVT. NEW PSU NORMS
FOR INDEPENDENT DIRECTORS: The government has
come out with a set of guidelines for independent directors on Boards of PSUs, defining their roles and responsibilities
aimed at improving corporate governance in state-owned companies.
Earlier the norms were not defined for non-official
directors who are being appointed on board of Central Public Sector
Enterprises (CPSEs) This is the First time that the role and responsibilities
have been defined.
·
14TH FINANCE
COMMISSION SET UP: The
14th Finance Commission will be headed by former
RBI Governor Sh.Y.V.Reddy. Besides the
tax-sharing formula between the
Centre and the States, the Panel has been mandated to look into the pricing
of public utility services such as drinking water, irrigation and power and
public transport, so as insulate them from policy fluctuations through
statutory provisions. The 13th
Panel was headed by Vijay Kelkar. The report of the 14th
finance commission will have to be made available by October 31, 2014.
· SEBI
PROPOSED FRAMEWORK FOR SHARE BUYBACK: "Tender Offer" and "Open Market" are the two routes through which share buybacks are allowed. However almost 99% of these in India happen
through the latter route. Under the proposed framework,
a firm would have to buy at least 50% of the quantity proposed by it. Currently, there is no such quantity restriction. SEBI has, however asked the Investment Bankers to ensure that companies buy
at least 25%. Companies would have to complete their buyback offering within 3 months. At present, most buybacks are open for a year. In another significant change proposed, 15% or more of paid up capital and free reserves must be by way of a Tender
Offer method.
·
SEBI ASKS BANKS ON
ASBA FACILITY: SEBI has asked banks
providing ASBA (Application Supported by Blocked Amount) facility for public
offers to use accounts in other registered banks while making their own
applications. SEBI has clarified that for making applications by banks on own
account using ASBA facility, Self Certified banks should have a separate
account in own name with any other SEBI registered SSB/s.
·
NO
TDS ON SOME FINANCIAL SERVICES BY BANKS:
The Central Board of Direct Taxes (CBDT) has
granted exemption from tax deduction at source (TDS) on certain payments made by businesses towards financial
services offered by banks. This has been done to mitigate the compliance burden
on businesses held by individuals, firms, and corporates. Payment towards bank
guarantee commission, cash management service
charges, depositary charges on demat accounts, charges for warehousing
services and underwriting services charges (Excluding foreign banks) can now be
made without TDS.
· CBDT
SETS UP COMMITTEE FOR FOREIGN TAX CREDIT: At present, there are no set rules for foreign tax credit (FTC) that makes it difficult for assessees to decide on the credit claims and leads to either undue
harassment for the tax payers or litigations. The
guiding principle to decide on FTC is the Double Tax Avoidance Tax Agreements
and the Income Tax provisions. CBDT has set up a committee for drafting the
rules which has to give its report by February 28. The committee is studying
the system of FTC in India
and the best international practices.
·
NATIONAL
CONSUMER COMMISSION DIRECTION ON DELAY: The National Consumer Commission
directed the Tamil Nadu Industrial Investment Corporation limited to pay Rs.26 lakh for delay in disbursement
of a loan. The delay resulted in
losses to the firm which was setting up a marine products processing unit. Even after two and a half years, the sanctioned
loan was not fully provided. Therefore, there was deficiency in service
as defined in the Consumer Protection Act.
·
BASEL LIQUIDITY RULE EASED: The Basel Committee has agreed to ease a new rule forcing banks to build cash buffers to protect
against any month-long market squeeze. The
Liquidity Coverage Ratio Rule is one of the World's main regulatory responses
to the financial crisis. Instead of full compliance in January 2015, banks will have to hold only 60% of their
buffer by then, rising 10% annually thereafter, to full compliance by
January 2019.
· EXIM
BANK RAISES $750 MILLION: The Export Import
Bank of India has raised $750 million by
issuing 10 year bonds to fund it operations including extending Lines of Credit to the governments of
other countries, export finance and support Indian companies' overseas
investments. The resources were raised at a
fixed coupon of 4% (or 10 years US Treasury plus 220 basis points). Exim bank's inaugural 10 year US dollar bond marks the
"First Such Issuance" from India this year.
·
PSBs
GIVING I PADS TO SENIORS TO BECOME TECH SAVVY: Most Public Sector Banks are
becoming tech savvy. Many have started distributing I Pads to senior officials in the hope that they would be
better positioned to relate with young
customers. SBI has given I Pads to all officers who are DGM rank and above.
Bank of India and Indian Overseas Bank have given it to all their GMs and
above.
·
FITCH
RETAINS NEGATIVE OUTLOOK ON
INDIA : The Rating Agency, FITCH has reiterated its "Negative" outlook on India 's
Sovereign Credit Rating, which it gave 6 months
earlier. The warning comes in the backdrop of bleak balance of payments data for July-Sept 2012. The current
account deficit for this quarter, the second of this financial year,
shot up to 5.4% of GDP from 3.9% in QR-1.
·
CABINET
OKAYS CAPITAL
INFUSION IN BANKS: The
Cabinet has approved capital infusion to
the extent of Rs.12, 517 Crore into about 10 banks during the current fiscal.
An in-principle approval of the cabinet has also been accorded for need-based additional capital infusion in public
sector banks from 2013-14 to 2018-19
so as to help them conform to the Basel-III capital rules. It implies that further capital infusion can be allowed without
obtaining the Cabinet's nod. In 2011-12 and 2010-11, the Centre had
infused Rs.12, 000 Crore and Rs.20, 117 Crore respectively.
·
CABINET CLEARS MORE FUNDS FOR INDIRA AWAS YOJANA: Keeping in view the steep rise in the cost of
materials, the Union Cabinet has cleared raising the unit cost under Indira
Awas Yojana. In plain areas, unit assistance under the scheme has been raised from Rs.45, 000 to Rs.70, 000 and from Rs.48, 500
to Rs.75, 000 in hilly and difficult
areas. Further for BPL households, who have neither agricultural land nor a house site, amount has been hiked from
Rs10,000 to Rs.20,000.
·
IRDA
FOR INSURANCE POLICIES IN ELECTRONIC FORM: IRDA licensed the National
Securities Depository Limited (NSDL), Central Depository Services Limited (CDSL), Stock Holding Corporation of
India, Karvi Group and Computer Age Management Repository Services
(CAMS) to act as repositories for insurance policies. This move will enable
policyholders to maintain insurance policies in electronic form and make changes, modifications and revisions to them.
Policyholders will not be levied any charges for using such facilities as the
repositories will be paid directly by the insurance companies.
·
COURT
VERSION ON
SEIZING MORTGAGE ASSET:
Under the Securitisation
Act, it is the Chief Manager of a
Public Sector Bank and his counterparts in Private Sector Banks who are authorised to take a decision on the need for seizing the mortgage asset and issue notice accordingly. According to the Andhra Pradesh High
Court, this duty can not be delegated to the Advocate, who can issue the
notice.
·
RELAX CRITERIA FOR
APPELLATE TRIBUNAL'S TOP POST: The Centre has decided to expand the eligibility criteria for selection of the
Presiding Officer of the Securities Appellate Tribunal
(SAT). A Retired or a Sitting Judge of a High Court with a minimum of 7 years of service– as a judge of a High Court- can now
be appointed as Presiding Officer. According
to the Union Finance Minister, an Ordinance will be issued to amend the SEBI Act to expand the eligibility criteria.
·
NSE
TO LAUNCH NIFTY FUTURES ON OSAKA EXCHANGE: The
National Stock Exchange (NSE) and Japan Exchange
Group, one of the leading exchange groups in
the world, signed a letter of intent for launching Nifty Futures, a
representative stock price index of India ,
on Osaka
securities Exchange. This is the first time that retail and institutional investors in Japan will be
able to take a view on Indian
markets, in addition to current ETFs, in their own currency and in their
own time zone. Investors in Japan will,
therefore not face any currency risk as they will not have to invest in
dollar-or-rupee denominated contracts.
·
RDA
APPROVES INSURANCE PRODUCTS NORMS: IRDA
Board approved the product guidelines. These are expected to be published in the gazette very soon. The guidelines for traditional products of life insurers will have a deadline of April 1 for refilling of group products
and July 1 for refilling other traditional products. Further policy
holders would get back as much as 50% of
their premiums, if a policy is active for three years.
SUPREME COURT RULING
ON PENALTY: The Supreme
Court has ruled that the Commissioner of
Income Tax is empowered to impose penalty under Section 271(1) of the Income
Tax Act even where the assessed income is in the negative. 

The
law authorizes the Commissioner to impose penalty ranging from 100% to 300% of the tax attempted to be evaded, using the discretion on the basis of the severity
of the crime..



m GOVT.-URBAN
POOR TO BE IDENTIFIED ON VULNERABILITIES: The
Housing and Poverty Alleviation Ministry
has decided to junk the Planning Commission's income benchmark. The Urban poor will now be identified on
the basis of social, economic and
occupational vulnerabilities. As of
now, families earning below Rs.4824 a month are put in the bracket of
urban poor. Once the census is complete,
the
city-specific urban poor basket will be ready.
·
BIG INDUSTRIES TO
FILE WATER RETURNS: The
Government
plans to introduce a system under which big industries
will have to file "Water Returns" on the lines of "Income
Tax Return" in a move to curb the unbridled use of water and check
pollution. The 12'h plan (2012-17) document, which has been approved by the National Development Council (NDC)
and is the broad policy for the five year period, emphasizes that the filing of
water returns be made
mandatory
for big industries and businesses.
·
GOVERNMENT
PUT OFF TAX AVOIDANCE REGIME: In
a
bid to allay fears of
foreign investors and boost sagging FDI inflows,
the government has once again put off the implementation of the unpopular General Anti-Avoidance Rules
(GAAR) by two more years till 2016. It also announced that the Rules will not be invoked against Non-resident Indians who invest in registered Foreign
Institutional Investors (FIIs).
·
FITCH WARNS US RATING ON DEBT LIMIT: FITCH Ratings
Agency warned that it might revise down its notation for the US
from its current top "AAA" level, if Congress did not reach agreement
on raising the ceiling for the national debt. The Agency also said that failure to raise the limit in time would lead to a formal revision by Fitch of
its ratings of US debt instruments,
but also said that the risk of a US default was extremely
low.
·
SUPREME
COURT VERSION ON CHARGESHEET: To
be sure, an employee who is dismissed for various
acts of misdemeanour needs to be provided an
opportunity being heard and given access to documents and witnesses
relied upon before he is fired but, the
Supreme Court has ruled that the Charge Sheet itself need not be burdened with
a list of all the documents and witnesses.
·
SEBI ASKS BANKS ON
GOLD ETF FUNDS: SEBI has proposed
allowing Gold Exchange—Traded-Funds (ETF) to park up to 20% of their gold
holdings with commercial banks.. This is in line with a similar proposal made
by RBI to put the gold corpus of ETFs to
productive use and therefore, curb India 's huge gold imports. As of now, gold ETFs need to
maintain 100% of their gold reserves.
·
AMFI
WAIVES FEE FOR MF AGENTS: The
Association of Mutual
Funds in India (AMFI) has decided to waive off Rs.3000 registration fees for 6 months for the first time
for Mutual fund Distributors
and independent financial advisors to
ramp up distribution network threefold to 1.5 Lakh from 49,
000 at present. This would be a landmark on the part of AMFI, aimed at expanding the distributor network and developing
the industry.
·
FINMIN
NOD FOR DCT THROUGH POST OFFICES: The Finance
Ministry has issued a directive to allow cash subsidies under
various Government Schemes to be deposited (Direct Cash Transfer-DCT) in the
beneficiaries accounts in Post Offices, that had been opened for transferring
wages earned under the Mahatma Gandhi National Rural Employment Guarantee Act.
·
SEBI
RELAXES MARGIN REQUIREMENT UNDER QFS: SEBI has said that the
institutional investors can now bid without making full upfront payments and
will also be allowed to place orders without depositing the margin amounts.
However, such investors will not be allowed
to cancel or revise downwards their price quantity. Further the
investors who bid with 100% margin amount will be allowed to modify or cancel their orders and their trades will
be settled the next day.
·
SUPREME
COURT RULING ON DEPARTMENTAL INQUIRY: Supreme Court has ruled that in a departmental' inquiry,
the disciplinary authority is
expected to prove the charges on "preponderance
of probability" and not on proof beyond reasonable doubt as in criminal
case. Hence the Supreme Court has upheld the dismissal of a manager of State
Bank of India .
·
GOVERNMENT
MEASURES ON GOLD TO
CURB DEMAND: The government
has raised the import duty on gold & platinum from 4% to 6%. Minimum tenure
of Gold Deposit Scheme has been reduced to
6 months from 3 years.. Mutual Fund AMC can deposit underlying gold with banks'
gold deposit schemes. Banks can use such gold to meet the requirements of gems
and jewellery trade.
·
MOODY'S
BANKING OUTLOOK —NEGATIVE: Global
Ratings Agency Moody's has a
"Negative Outlook" on India 's
Banking System due to concerns over
loan quality and high interest rates. In India , impaired loans are yet to peak among public sector banks. The Agency
further said that though the Government is likely to remain supportive, options for RBI to slash lending rates
are limited due to high inflation and the "modest fiscal
capacity".
·
SWISS GOVT. TO ACCEPT
REQUEST FOR BANKING INFORMATION: A new Tax Administrative Assistance Act will come into force on February 1, 2013 and a resolution to this
effect has been passed by the Switzerland 's
Federal Council. Accordingly, the Government will be able to provide banking
and other details sought by other countries,
including India ,
about a "Group of persons" even
without their individual identification, provided the information has
not been requested as part of some "fishing expedition".
·
SUPREME
COURT RULING ON ADVANCE TAX PAYMENTS: The advance tax is paid
on the estimated income and not on the actual income of the relevant year. The
Supreme Court has ruled that it is "Mandatory"
for an assessee to file return, even if it turns out that the actual income and the estimated income, in
accordance with which advance tax has been paid, square.
·
RBI
PUSHES FOR FIXED-RATE LONG-TERM LOANS: According to
RBI Panel, banks could introduce and popularize fixed rate long term loans with a provision to reset rates periodically
(say, every 7- 10
years). The loan product will be in addition to the plain-vanilla fixed
rate loans for long tenure. While executing the original loan agreement, the lender could fix a cap and floor
(say, 2 or 3 percentage points) at the time of reset in relation to the
interest rate originally charged.
·
RBI
RAISES FOREIGN INVESTMENT LIMIT IN DEBT MARKET: RBI
has notified enhancement in the debt investment limit for foreign institutional investors (FIIs) and long term
investors from $65 billion to $75
billion. The RBI has done away the condition whereby FIIs and long term investors were required to invest in
government securities (G-secs) of 3 years residual maturity at the time
of first purchase. RBI has also dispensed/reduced the residual maturity
requirements for investment in corporate bonds.
·
SEBI
CLEARS BENEFICIAL OWNERSHIP: SEBI
has said that all intermediaries
registered with it will have to identify the person exercising
controlling ownership interest in a company. If a person, whether acting alone or together, with one or more
judicial person, owns more than 25% of shares or capital or profits in a
company, he will be identified as a
beneficial owner. In case of partnership and HUF, the threshold limit is
15%.
·
The Centre has
granted Service Tax Exemption on the services of Life insurance Business
provided under the Aam Aadmi Bima Yojana (AABY) and Janshree Bima Yojana.
·
The Government wants
companies to disclose the remuneration paid to promoters and CEOs in
perspective of their median staff salary. The Regulations cap remuneration at
5% of the net profit per director. While
the cap has been maintained, changes are being made in the disclosures to be
made at the end of the year.
·
The Government has told the Employees Provident fund
Organisation (EPFO) to switch to
the Aadhar system to remit employees dues under its three schemes —provident
fund, monthly pension and life insurance- into their savings bank account.
·
According to the
Banker Magazine for July, State Bank of India (Total Assets with Rs.13.36
Lakh Crore) has been ranked 60m in the list of World's top 1000
banks. Bank of America, which topped the
list, had assets of $2.16 trillion.
· After a gap of 10
years, the US
became the Largest Importer of Indian Seafood Items in rupee value terms during
April-September period during the current
financial year, pushing the European Union to the Second spot.
· At an
estimated Rs. 2000 Crore, India has
become the Sixth Largest Market for contraband cigarettes, causing huge revenue
losses to the Government and affecting
the livelihoods of some 5 million tobacco farmers.
· According
to a list compiled by Assurance, Tax and Advisory Firm Grant Thornton, "India
has been ranked at a low position of 40 among 50 economies in the world in
terms of "dynamism", which was topped by Singapore .
·
Consumers in rural areas could get access to online
services. The Government is making a blueprint
to make the services available to villages through the Rs.20, 000 Cr National
Optical Fibre Cable Network.
·
According to the Census data on "Female- headed
Households" released by the Ministry of Home Affairs, "11% households
in India.have a Female Head.
The Highest number of female-headed households are in Lakshadweep
at 43.7% and in Kerala at 23%.
·
In 2012, despite FlIs pouring $24 billion
into the Indian Equity Market, the rupee still lost 3.1% against the dollar.
· A
90 year old British lady Candy Miller has been officially declared the Oldest Darts Player in the World by the
Guinness World Records.
·
India
exports to the US
cover 155.1% of its imports from the world's largest Economy. In contrast, the
World's Largest Economy's earnings from exports to India can only service 52.3% of the
goods and services it imports from the World's Largest Democracy.
·
According to the 12th
Five Year plan (2012-13 to 2016-17) document, employment in manufacturing
reduced by five million during 2005-06 to 2009-10), after adding almost million jobs in the first five years of this century.
·
State
run banks are set to ring in the 2013 by opening 5000 ATMs across 51 districts,
following the government's directive to
make available
this facility in the districts selected for
the launch of the Direct Cash Transfer programme.
·
The Haryana state
Agricultural Marketing Board (HSAMB) has acquired 500
acres for the development of an International Market at Gannaur in the National Capital region. Mapping of the market has been assigned to the French
Firm Semmaris Rungis.
·
A steeper decline in
exports relative to imports and lower net income flows aggrevated a key
indicator of India's external vulnerability
—the current account deficit (CAD)
—in the second quarter. The CAD rose
$22.3 billion (5.4% of GDP) in July-October
2012 from $18.9billion (4.2% of GDP ) in the year ago period.
·
The
authorities have decided to allow soft display of Air Tickets on laptops, tablets and
smart phones instead of carrying a printout of the ticket for entering an
airport.
·
The consumer price
index for industrial workers for November 2012 came in at 9,55%. This was higher than the 9,34% annual increase seen in November 2011.
·
According to a
Government Survey, the number of jobs in
industries increased by 7.8% while
wages rose by 18.1% in real terms in 2010-11.
·
Economic
output in Europe is shrinking in 9 out of the 17 nations that use the Euro.
·
Oriental Bank of
Commerce has waived penalty on premature
withdrawal of fixed deposit schemes
for all maturities across all slabs.
·
Mr.
Ashwani Kumar has taken over as CMD of
Dena Bank Prior to this he has been the
ED of
Corporation Bank since December 1, 2010.
·
According to the
Planning Commission study, overall
allocation for the 12th Plan on all 16 flagship schemes has been raised from Rs.6, 93, 347
Crore in the 11" Plan to Rs.15, 46,
648 Crore.
·
The
Department of Posts is likely to finalise plans for setting up the "Post Bank of India "
soon to provide full banking services
primarily to the rural poor, who will depend on informal credit sources.
· According to the study by Economist Intelligence Unit (EIU), Switzerland is the Best Place to be born in 2013 as per a list of nations with the Best Quality of life. India occupies a lowly 66" spot while
Sri Lanka, Pakistan and Bangladesh are at numbers 63, 75 and 77.
·
According to the Bloomberg Billionaires Index, Carlos Slim of US, the Telecommunications Magnate is the Richest Person
($134 billion) in the World followed by
Microsoft Co-Founder Bill.
Gates.
·
According
to the Research Firm Gartner, Global IT
spending is projected to reach $3.73 trillion in 2013, a 4,2% increase from $3.58 trillion in 2012,
·
Fair Trade Regulator Competition Commission of India (CCI) has approved 30% stake purchase by Punjab National Bank in
MetLife Insurance Company.
·
SEBI
has asked listed companies to disclose their monthly sales turnover and production figures to
stock exchanges before sharing these
with trade bodies and industry associations.
·
The Insurance Act of
1999 stipulates that an insurance company
can invest only 10% of the funds or have 10% of a company's stake,
whichever is lower, in an entity.
·
SEBI has put out a
consultative paper on corporate governance norms to enable listed companies
adopt better global practices.
·
Turkey has removed penal duties "Wrongfully" imposed
on cotton yarn from India
in line with the agreement
reached between the two countries earlier
this year.
·
The government had no outstanding loans from the RBI as on December 28.
·
RBI has set up a
working group to review and make improvements in the grievance redress mechanism for bank customers to review, update and
revise the banking Ombudsman Scheme 2006.
·
According to a report
by Global Financial Integrity, since independence till 2010, the total outflow
of black money from India
was $232 billion, primarily in the form of
corruption, bribery and kickbacks. During the same period the value of illegal
assets held by Indians is expected to be $487 billion.
· LIC Housing
Finance, promoted by the insurance
co. [IC is planning to raise Rs.700- 1000 Crore through External Commercial Borrowings (ECB). Last month, RBI had allowed real estate developers and housing finance
companies to raise up to $1 billion through
ECB in the current fiscal to promote low cost housing projects.
·
According to RBI,
Rs.25 Crore-balance sheet criteria is only required to be adhered to by Deposit-taking NBFCs. Other NBFCs will not be regulated if their balance sheet size is Rs.500
Crore or less.
·
The
Finance Ministry has made it mandatory for India
Inc to pay taxes even if a stay plea was pending before Appellate Body.
·
The Government's "You Tube" Channel not
only has 2/3 minutes news clippings from DD news updated twice a day, but also
short films, documentaries, live events and classical music, The government will be using its online
presence to reach out to the young population of the country as well as to
spread information about its policies.
·
BRICS Nations- Brazil ,
Russia , India , China
and South Africa- are likely
to finalise the structure of a Development Bank that will fund infrastructure in the associate nations at the BRICS
summit in Durban
in March.
·
Appointments Committee of the Cabinet has
appointed Rajiv Takru, a 1979 batch IAS officer of Gujarat
cadre, as Secretary in the Department of Financial Services.
·
According to the
Supreme Court, a post-dated cheque that confers no benefit to the recipient or
to the donor need not be viewed with suspicion.
·
The International
Labour Organisation (ILO) has urged countries to adopt new standards to ensure
decent working conditions and pay for the world’s 53 million domestic
workers-mainly women. The ILO report shines a spotlight on a group of workers
often neglected by policymakers and largely excluded from national Labour Laws.
·
Gujarat Chief
minister has inaugurated the Tallest
Building of the state at
the Gujarat Intentional Finance Tec-City (GIFT).
·
According to the ILO
Report, there are 52.6 million domestic workers worldwide, of whom 83% are women,
accounting for 7.5% of women’s global wage employment.
·
MD Mallya, who
retired from Bank of Baroda as Chairman in November last year is the Business
Standard Banker of the Year 2011-12.
·
The European Central Bank (ECB) kept the interest rates
on hold. Benchmark rate left at record low of
0.75%, deposit and marginal lending rates were also untouched at 0% and 1.5%
respectively.
·
London ’s
Tube, the World’s First Underground Railway, which was opened on January 10,
1863, celebrated the 150th Birth Anniversary. It is considered a remarkable example of public transport as well as
private enterprises.
·
Mr.Urjit Patel took over as the Deputy Governor of RBI
for a period of 3 years from January 11, 2013. Patel, 49 years old is the 4th
Deputy Governor. He comes in place of Mr.Subir Gokaran, whose term ended on
January 11, 2013.
·
The Comptroller and
Auditor General (CAG) has asked banks to recover money from ineligible
ineligible beneficiaries under the Agricultural Debt Waiver and Debt Relief
Scheme of 2008.
·
India
will host the First ever Global Ministerial Meet on Elephants in the capital
from November 14 to 19.
·
Indian & Vietnam
signed an MOU aimed at building capacity for developing institutional framework
& identifying thrust areas and opportunities for micro, small and medium
enterprises in the country.
·
RBI, in consultation
with bankers, is thinking of renaming the “Banking Ombudsman” to another name
which is simple and appeals to the common man.
·
SEBI has prohibited
listed entities from framing any employees benefit schemes involving
acquisition of its own shares from the secondary market.
·
SBI and its
Associates plan to set up “By invitation only” branches under the “Kohinoor”
Brand in 20 cities across India
to serve “Urban - Rice” clients and NRIs.
·
According to the data
released by the National Bureau of
Statistics, the Chinese
Economy grew at its Slowest Pace in 13 years posting
7.8% year-on-year growth in 2012 which showed the growth rate down from 9.3%
in 2011 and 10.4% in 2010.
·
According to an
Analysis, between April 2009 and November 2012, the Wholesale Price Index (WPI) rose 35%
in absolute terms. Manufactured products
accounted for 44% of this rise.
· State Bank of India 's
Central Board approved the capital infusion of Rs.3004 Crore by the Government. The Bank will receive
the additional capital in exchange of preferential allotment of equity shares to
the Government before the end of March.
· Global Rating Agency Moody's Investor Service has retained its "Stable"
outlook on India 's
Sovereign Rating, citing potential for
growth , robust domestic savings rate and a dynamic private sector.
·
According to a new
study done by the EC, Indian Companies have come on the top globally
when it comes to growth in their R&D
investments, leaving their counterparts in the US and Europe
far behind.
· The Government
has set a target of bringing 2900
apparel units in the 12th Plan under "DISHA-a Programme" aimed at encouraging
better social practices to meet global
standards on issues like Child Labour.
·
CBDT
has notified a scheme for centralized processing of statements of tax deducted at source (TDS). Central Processing Cell (CPC) of the income tax department is the Repository of
all the information relating to TDS.
·
According to a new
regulation by SEBI, registration
is must for all investment advisors- both individual and
corporate. SEBI has mandated a minimum net-worth requirement of
Rs.25 Lakh for corporate and Rs.1 Lakh for individuals.
·
In a step to check
instances of bogus registration and
misleading addresses, the corporate Affairs Ministry has asked companies seeking incorporation to get their registered
office verified by a professional.
· According to the
Global Open Budget Survey 2012, India enjoys a high rating when it comes to
budget transparency practices. It ranks 14th among the 100 countries. Its open budget index score of 68 out of 100 is much higher than the average score
of 43 for all countries covered in the survey.
·
According to
International Labour Organisation's Report, about
42% of workers, or nearly 1.1 billion are now
"Middle Class" living with
families on over Rs.225 a person a day.
·
SEBI
has directed banks to name at least one branch
in the location of broker centres of stock
exchanges where all brokers can submit ASBA (Application supported by
Blocked Amount) forms, by March 1, 2013.
·
The cloned buffalo Garima-II gave birth to a calf at the Karnal-based
National Diary Institute. The calf was born through "Hand-guided cloning
technique". It is the First Calf born from a cloned buffalo
in the World.
please send some English comprehension paper on my mail....
ReplyDeletethanks
you are doing good job for students..