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Showing posts from July 17, 2015

RBI clarifies on foreign institutional investments in security receipts

The Reserve Bank of India ( RBI) has clarified that the restriction on investments with less than three years residual maturity shall not be applicable to investment by foreign portfolio investors (FPIs) in security receipts issued by asset reconstruction companies ( ARCs). However, investment in security receipts shall be within the overall limit prescribed for corporate debt from time to time, RBI said. Earlier, the regulator had received enquiries about the applicability of the aforesaid directions on investment by FPIs in the security receipts. RBI also said operational guidelines, if any, would be issued by the Securities
and Exchange Board of India. Business Standard, New Delhi, 17th July 2015

Transfer your home loan with a top up

But tax exemption will depend on the purpose Balance transfer of home loans has become very common after the removal of penalty on pre- payment. Many banks are offering borrowers the option to avail of a top- up loan while doing the transfer. The advantage is the possibility to shift to a lower interest rate loan and getting a higher amount at the same time. The additional amount can be used for any purpose as long, as it is not speculative in nature. Today, banks are willing to offer top- up home loans at the same rate as a home loan, as a strategy to entice borrowers to do a balance transfer, says Gaurav Gupta, of Myloancare. in, a home loan advisory. “Most banks tend to price top- up loans closer to rates on loan against property ( LAP). But to make balance transfers attractive, many are offering discounts on top- ups as an incentive,” Gupta says. As compared to an LAP, the advantage of a top- up home loan is a lower interest rate and longer repayment period. Processing is also faster …

Maharashtra eyes own land Act

The Maharashtra government is exploring options to bring in its own Act on land acquisition or to amend the Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act. The government wanted to continue using Maharashtra Industrial Development Act, 1961, for industrial projects but adhere to the provisions of the higher compensation proposed in the present Act ( LAAR Act). The government had assured higher compensation to landowners through negotiations and consent route when land was being acquired for industrial purpose. Maharashtra Chief Minister Devendra Fadnavis had at the NITI Aayog meeting on Wednesday said the Centre had retained the right to exempt social- impact assessment ( SIA) and the consent clause for acquisition under the LARR Act, 2013, while states had not been given this flexibility. A state revenue official said the government would in its new Act give more clarity to contentious issues relating to compensation, social impact …