The Sebi board met today and took decisions on some key changes to the takeover regulations. The notifications about the changes will be made in due course.
Economy+Policy
Recent Posts
New Income Tax Code: lower rates, fewer exemptions
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Finance Minister Pranab Mukherjee stuck to his promise made in his Budget speech and has put the draft Direct Tax Code in the public domain. The government is asking for comments, before it is introduced in parliament. Over the years, the Income Tax Act, 1961, has been supplemented by several amendments, interpretations and rules. Continue Reading →
Filed under: Economy+Policy, Top News, Direct Tax Code, Government, Income Tax
India’s factory output grows by 7.3% in June 2009
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Industrial output for June 2009 is a bright spot amidst the gloom, caused by a near certain drought and a swine flu outbreak in the country. The index of industrial production (IIP) for June 2009 has increased by 7.8% over the same period last year. There was a partial base effect, as mining grew by 15% compared to a 0.1% growth in June 2008 and electricity grew by 8% compared to 2.6%.
Filed under: Economy+Policy, Top News, Economy Number Speak, IIP, industrial growth
Indian government to issue C-bills
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Short term borrowings are a part of any company’s life. These are needed to tide over temporary cash shortages or even to meet normal working capital needs. Since the needs are temporary, companies do not mind paying a slightly higher rate of interest. But when governments start dipping into the till to meet short term requirements, the consequences can be interesting, if not disruptive.
Filed under: Economy+Policy, Top News, Bonds, Government, Policy From the Government, RBI
Sebi bans differential exit loads
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Sebi has issued a new circular to all mutual funds, barely a week after its rule banning entry loads came into effect. The capital market regulator has told mutual funds to charge exit loads uniformly to all investors. The move plugs any possibility of mutual funds compensating for the lack of entry loads by recovering expenses from retail investors, when they exit a scheme.
Filed under: Economy+Policy, Top News, Entry Loads, Exit Loads, Markets Stock Markets, Mutual Funds
Cross border mergers, coming soon in India
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Bharti Airtel and MTN have extended their negotiations for a cross-border M&A transaction, a first in India’s telecom industry. Even as the two sides thrash out terms, the Indian government is considering making two-way cross-border mergers and amalgamations a reality.
Filed under: Economy+Policy, News Analysis, Companies Act, Companies Bill 2009, Cross Border, M&A, Policy Corporate Law
Monsoon turns weak again
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Even as the government talks about a recovery in the kharif sowing pattern, the monsoon is moving in a volatile fashion. Last week (July 23-July 29), the actual rainfall was 18% less than the average seen in this period. In the previous week, actual rainfall was 15% higher.
Filed under: Economy+Policy, Quick News, Monsoon
RBI leaves rates unchanged but talks down expectations
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The Reserve Bank of India left benchmark interest rates untouched in its quarterly credit policy statement, released today. That was as expected. But RBI Governor D. Subbarao, has made it clear that once clear signs of a recovery are evident, and if prices are ruling higher, the RBI will move swiftly to hike rates. At present, it is holding back pre-emptive action, to give room for consumers to borrow and buy and thereby generate demand for industries to grow. Continue Reading →
Filed under: Economy+Policy, News Analysis, Credit Policy, D Subbarao, Inflation, Interest Rates, Policy From the Regulators, RBI
Mini-Budget 2009-10 for the real estate industry
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The Finance Minister Pranab Mukherjee has proposed amendments to the Budget. It is customary for the FM to take in suggestions from various sides and introduce any necessary amendments. The FM has said that the priority was to provide a stimulus to economic activity.
Filed under: Economy+Policy, Infrastructure & Construction, Real Estate, Top News, 2009-10, Economy Outlook, Food Processing, Pranab Mukherjee
Sebi kills shares with differential voting rights?
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Sebi has introduced a new rule that will effectively kill the desire of companies to issue shares with differential voting rights. The capital market regulator has made a small amendment to the listing agreement that has a wider impact. It has said that a company shall not issue shares that have either superior voting rights or higher dividend entitlements, compared to the ordinary shares listed on the exchange. The rule is effective from July 21, 2009.