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Plans to set up a monetary policy committee (MPC) under the Reserve Bank of India (RBI), which will be empowered to set interest rates, has entered the final leg. The finance ministry on Friday said that it has moved a draft Cabinet note seeking comments from all stakeholders including other ministries. The details of the agreement are not known but indications are that the RBI would continue to have a say in decisions relating to interest rates. While the government and RBI have managed to iron out their differences on the proposed MPC, in August the finance ministry found itself amid a raging controversy when the Financial Sector Legislative Reforms Commission put up a report seeking to take away RBI governor’s overriding powers on interest rate decisions. However, the finance ministry clarified that the report was not final and it just sought comments from stakeholders. In February, the government and the RBI signed the monetary policy framework agreement with the objective ...

The Securities and Exchange Board of India ( Sebi) has proposed new regulations for public issue of core capital instruments by banks and for the public issue of Infrastructure Investment Trusts ( InviTs). The proposed norms for retail or public issuance of Additional Tier- 1 ( AT1) bonds set the minimum investment at ? 2 lakh, due to the additional risk with these as compared to other debt products. “ To ensure only well- informed retail ( individual) investors, with adequate risk tolerance level, subscribe to these," explained Sebi in the draft norms, issued on Friday. Last year, the Reserve Bank had allowed banks to issue AT1 instruments to retail investors. Sebis committee on corporate bonds had deliberated on the additional requirements for and disclosures by banks for doing so. For InviTs, Sebi has proposed that disclosures in the offer documents and draft papers be kept in the public domain for at least 21 days. The allocation in the public issue to qualified instit...

There is hope that the Rajya Sabha is likely to function smoothly for the three remaining days of the winter session of Parliament. But it might not discuss contentious legislations such as the Goods and Services Tax (GST) Constitution Amendment Bill. This has dashed any hopes of the GST being rolled out by April 2016. The tax reform would now be taken up in the Budget session in Februaryend. At an all- party meeting convened by Rajya Sabha Chairman M Hamid Ansari, the Opposition, including the Congress, agreed it would ensure the passage of at least half- a- dozen Bills and allow the House to debate issues such as price- rice, agrarian crisis, impact of floods and drought, the political crisis in Arunachal Pradesh and the intolerance issue. However, consensus eluded on the GST and real estate ( regulation and development) Bills. Ansari described the hourlong meeting as “ good”. The Bills that the meeting agreed the House should pass before its session concluded on Wednesday ar...

Mid- year economic analysis confident of meeting this year’s fiscal deficit target, but hints at deferring fiscal deficit target dates The government on Friday lowered its forecast for gross domestic product ( GDP) growth to 7- 7.5 per cent in this fiscal year, down from an earlier forecast of 8.1- 8.5 per cent. Though it stuck to the fiscal deficit target of 3.9 per cent of the GDP for the year, Chief Economic Advisor Arvind Subramanian said at a press conference that the target of 3.5 per cent looks challenging for next year. The mid- year economic analysis tabled in Parliament struck a note of caution by saying there was a case for re- assessment of the medium- term fiscal consolidation road map because of the additional expenditure due to the recommendations of the Seventh Pay Commission and the higher pension payout for defence veterans next year. “If the government sticks to the path for fiscal consolidation, that would further detract from demand. On these assumptions, a...

Updates Of the Day 1.CA certificate required in Form 15CB on payment exceeding Rs. 5 lakh w.e.f. 01.04.2016. .CBEC Notification No. 93/2015. 2.No Form 15CA & 15CB will be required to be furnished by individual for remittance which do not require RBI approval under LRS, w.e.f. 01.4.2016. Notification No. 93/2015. 3.Modified version of LLP Form 4 and Form 27 are available w.e.f 18.12.2015. 4.Modified versions of Forms GNL-1, INC-20, INC-23, MGT-15, INC-7 and ADT-3 are available w.e.f. 17.12.2015. 5.CBDT Circular No 22 dated 17.12. 2015. Allow ability of employer's contribution to funds for the welfare of employees in terms of section 43B (b) of the Income Tax Act. For more News Like us on https://www.facebook.com/caonlineofficial Or Subscribe on mail visit : www.caonline.in