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The Reserve Bank of India (RBI) Tuesday said it would inject Rs 10,000 crore into the system through purchase of government securities on December 6 to increase liquidity. The purchase will be made through open market operations (OMOs).  "Based on an assessment of prevailing liquidity conditions and also of the durable liquidity needs going forward, the Reserve Bank has decided to conduct purchase of ... government securities under open market operations for an aggregate amount of Rs 100 billion on December 6, 2018 (Thursday)," the central bank said. The OMO operation will help ease tight liquidity situation triggered by a series of defaults by group companies of IL&FS.  The eligible participants should submit their offers in electronic format on the RBI Core Banking Solution (E-Kuber) system on December 6.  The result of the auction will be announced on the same day and payment to successful participants will be made on the following day  The RBI also announced aucti

An expert committee set up by the Securities and Exchange Board of India (SEBI) on Tuesday recommended that the market regulator allow listing of Indian companies on foreign exchanges even without getting listed in India.  Such a framework would help Indian companies to access foreign capital at lower cost, said the report.  Under the current regulations, any company incorporated in India but not listed on an Indian exchange is not permitted to list its shares on a foreign stock exchange. Similarly, companies incorporated outside India cannot directly list their equity shares on Indian stock exchanges.  The committee in its 29-page report also advised the security markets regulator to allow foreign companies to get directly listed in Indian stock exchanges. SEBI has sought comments on the report by December 24  "Listing may be allowed only on specified stock exchanges in 'permissible jurisdictions'," read the report submitted to SEBI.  A "permissible jurisdic

The Securities and Exchange Board of India (Sebi) has initiated an inquiry into the affairs of pharma major Sun Pharmaceutical Industries on the basis of a whistle-blower complaint, said regulatory sources.  The sources said the market regulator was in receipt of a 150-page letter in which the whistle-blower accused the company of committing corporate governance and tax-related lapses, besides other securities market-related violations.  When contacted, a Sun Pharma spokesperson said, “We have not been contacted by Sebi in this regard.” Sebi, according to sources, also plans to reopen an insider trading case against the company and its promoters that was settled through the consent mechanism.  Sun Pharma, its Managing Director Dilip Shanghvi, and nine others had settled the insider trading probe, paying Rs 1.8 million against the settlement charges in 2017.  While Sebi had not disclosed details of the case, it was probably linked to the acquisition of Ranbaxy by Sun Pharma from Jap

It is in the interest of the government and the nation to respect RBI’s functional autonomy, as happened at the last RBI board meeting. RBI autonomy came up when RBI governor Urjit Patel testified before Parliament’s standing committee on finance. It is important for all stakeholders to view and appreciate institutional autonomy in the right spirit. When the financial crisis struck in 2008, central bank autonomy, whether statutory or traditional, did not come in the way of governments, central banks and regulators of companies, insurance and stock markets working together to bail out banks, insurers and large companies, in several mature economies. Even when crisis is absent, the interconnected global economy, with its ability to send trillions of dollars of liquidity sloshing this unpredictable way or that, makes constant consultation and cooperation among the multiple nodes of fiscal and regulatory decision-making essential.  India has a partially open capital account, and large

The government is considering a databank for all medicine brands to prevent pharmaceutical companies from using the same or similar looking and sounding brand names for drugs, especially those used to treat different conditions, senior officials close to the development said.  The Drugs Technical Advisory Board (DTAB), the country’s highest drug advisory body, will discuss a mechanism to this effect at its meeting on Thursday because the problem is extensive and spread across the country, they told ET. A 2013 study published in the Indian Journal of Clinical Practice had found that more than 10,000 medicine brands in India were either similar looking or similar sounding.  What is even more alarming, an industry insider said, is that in some instances, the same brand name has even been used to market formulations used to treat different conditions altogether. For instance, the brand ‘Medzole’ has been used to market at least four different kinds of medications, including an antifung

India ’s economic growth will slow down somewhat but remain robust, at close to 7.50% in 2019 and 2020, the Organisation for Economic Cooperation and Development (OECD) has said. India’s gross domestic product (GDP) grew 6.7% in 2017-18. OECD projects GDP at market prices to grow 7.3% in 2019 and 7.4% in 2020 from 7.5% in 2018. “Economic growth will slow somewhat but remain robust, at close to 7.5% in 2019 and 2020,” the Paris-based organisation said for India in its 2018 Economic Outlook. Tighter financial conditions, higher oil prices, adverse terms of trade, lower growth in partner countries, and rising political uncertainties in India and abroad will tend to reduce growth, it said. The Reserve Bank of India expects FY19 growth at 7.4%. Global credit rating agency Moody's Investors Service has projected India’s economic growth to moderate to 7.3% in 2019 and 2020 as higher oil prices combined with rupee depreciation and monetary tightening dampen domestic demand. OECD said t

Bats for development of multi-disciplinary practice firms; law firms oppose proposal An expert panel constituted by the ministry of corporate affairs (MCA) has recommended that Advocates Act be amended to allow audit firms to offer legal services, a proposal which is being opposed by law firms.The MCA panel, which was set up to look into the regulation of audit firms and their networks, is of the view that development of multi-disciplinary practice (MDP) firms should be facilitated in the country, and to meet this goal, auditors should be allowed to expand their portfolio of services. “For Indian firms to evolve into global leaders in auditing, legal, consultancy, and ancillary services, it is necessary to rationalise the Advocate Act 1961 to facilitate development of Indian audit firms as well as legal firms,” stated the panel’s report. The report states that in 2015, the Society of Indian Law Firms had complained to the Delhi Bar Council against the ‘Big 4’ — PwC, Deloitte, KPM