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Showing posts from August 17, 2017

RBI minutes show MPC members flagged upside risks to inflation

RBI minutes show MPC members flagged upside risks to inflation Concerns about economic growth and easing inflation prompted five of the six monetary policy committee (MPC) members to call for a cut in the repo rate, but most warned that prices could start accelerating, show the minutes of the panel’s last meeting, released on Wednesday. The comments reflected a tone of caution and flagged upside risks to inflation from farm loan waivers, rise in food prices, especially vegetables, price revisions withheld ahead of the goods and services tax, implementation of house rent allowance under the 7th pay commission and fading of favourable base effect, among others. On 2 August, the panel chose to cut the repurchase rate—the rate at which the central bank infuses liquidity in the banking system—by 25 basis points to 6%. One basis point is one-hundredth of a percentage point. Pami Dua, professor at the Delhi School of Economics, wrote that her analysis showed “a fading economic growth outlook, as …

BSE, NSE likely to begin audit of 100 suspected shell companies

BSE, NSE likely to begin audit of 100 suspected shell companies Stock exchanges BSE and NSE are likely to initiate audit on 100 out of 331 suspected shell companies in the first batch in coordination with SEBI, sources told ET Now.  A panel of auditors will soon be appointed for first stage of audit of select 100 companies, sources said.  All except a handful of 331 suspected companies are either non-operational or already barred from trading on exchanges.  Sources said that freezing of promoters’ shares is being considered till probe concludes. Trading data of all suspect shell companies being examined by bourses.  Out of total 331 firms, 162 are listed on BSE. Data available for 154 of these firms show one-third of them, or 50 to be precise, have been reporting losses for four consecutive years now. Over two dozens of them reported zero sales for last financial year. Yet, retail and high net worth individuals hold up to 95 per cent stake in these companies. Since banks hold margins on beh…

Sebi eases rules for lenders buying stake in distressed companies

Sebi eases rules for lenders buying stake in distressed companies The relaxation will be subject to certain conditions, including shareholders' approval of the stake acquisition by way of special resolution. Markets regulator Sebi has notified relaxed norms for stake purchase in distressed listed companies by lenders, exempting them from making open offers for shareholders. The relaxation will be subject to certain conditions, including shareholders' approval of the stake acquisition by way of special resolution. The Sebi decision comes against the backdrop of the government and the Reserve Bank of India stepping up efforts to tackle the menace of bad loans, amounting to over Rs 8 lakh crore. The regulator has eased the norms for restructuring in stressed companies that are listed on exchanges as well as resolution plans approved under the Insolvency and Bankruptcy Code, Sebi said in a notification dated August 14. The move is aimed at facilitating turnaround of listed companies in …

CBEC to build information repository on imports

CBEC to build information repository on imports Can a specific type of meat be exported to India? What procedures need to be followed?  Global suppliers eyeing India's growing economy will soon be able to get such basic queries on exports answered through a single window, freeing them from the maze of multiple complex notifications scattered across various websites of ministries or departments that’s fiendishly difficult to access.  The Central Board of Excise and Customs (CBEC) is undertaking a mammoth exercise to build a central repository to provide a supplier all the information required about norms governing product imports in simple language. This will be available on one site or via a mobile app. “The idea is to make it simple for traders to access information,” a government official told ET.  “Any information about any regulation would be available at the click of mouse or a tap on the mobile.” Though all the information is available, traders need to plough through various min…

Cabinet approves CGST refund scheme

Cabinet approves CGST refund scheme  The government has approved a new metro rail policy, a scheme to refund central goods and services tax ( CGST) to industrial units in Himachal Pradesh, Uttarakhand, Jammu & Kashmir and the North-East ctill 2027, and changes to strategic disinvestment policy to speed up decision-making. The cabinet cleared the CGST refund scheme with a budgetary allocation of Rs 27,413 crore, which will come as a big relief to sectors like pharma, automobiles, FMCG.  These units, which hitherto enjoyed exemption from central excise for 10 years, will get a refund of 58 per cent of CGST. “Within the framework of the GST Act, each industry will be entitled to its own refund mechanism during this particular period (until March 31, 2027),” finance minister Arun Jaitley told reporters after the meeting of the cabinet that was presided over by Prime Minister Narendra Modi on Wednesday. Under the new GST regime rolled out on July 1, there is no provision for exemptions.  …