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Stock exchanges try to assuage concerns after MSCI warning

Stock exchanges try to assuage concerns after MSCI warning Say will engage with various stakeholders to address any fears of the move to end data-feed tie-up with foreign exchanges Domestic stock exchanges on Wednesday tried to assuage concerns over the fallout of the move to snap with their foreign counterparts. “This is to reassure all stakeholders that the Indian exchanges will work with them to facilitate an orderly transition that is not disruptive to the markets and stakeholders. This engagement with various stakeholders will continue in the coming weeks to address any concerns,” said the exchanges in a joint statement. On February 9, the National Stock Exchange, BSE and Metropolitan Stock Exchange announced termination of data-feed and licensing agreements with overseas bourses to put an end to offshore trading of domestic securities and indices. The move was slammed by global index provider MSCI and also the Futures Industry Association (FIA), a trade association of e

EPFO cuts interest rate to 8.55% for 2017-18 from 8.65% for 2016-17

EPFO cuts interest rate to 8.55% for 2017-18 from 8.65% for 2016-17 Retirement fund body Employees’ Provident Fund Organisation (EPFO) has reduced interest rate on deposits to 8.55% for 2017-18 following a general decline in interest rates. The decision was taken by EPFO’s central board of trustees at its 220th board meeting on Wednesday, labour minister Santosh Kumar Gangwar said. EPFO had announced an interest rate of 8.65% for 2016-17 and 8.8% in 2015-16.The move will affect around 6 crore subscribers and leave EPFO with a surplus of Rs 586 crore against Rs 695 crore in the previous financial year. The interest rate decided by the central board of trustees will have to be vetted by the finance ministry, following which it would be notified.EPFO had earlier this year sold Rs 3,700-crore equity shares in the market, earning a profit of Rs 1,100 crore as a result of which it was felt that the retirement fund body could retain the interest rate for the current financial year at

Panel to discuss GST return simplification

Panel to discuss GST return simplification Ahead of the goods and services tax(GST) council meeting on march 10, a ministerial panel under bihar deputy cheif minister sushil modi will meet in the capital on saturday to firm up the simplified "single-stage" return filing process. The  Group of Ministers under sushil modi lok at finalising the simplified return filing system on February 24, which will be then taken up by the GST council on March 10. The Business Standard, New Delhi, 22nd February 2018

RBI acts, FM speaks up

RBI acts, FM speaks up The Reserve Bank of India (RBI) on Tuesday constituted an expert panel that will look at the divergence in asset classification and provisions reported by banks visàvis those interpreted by the central bank´s auditors, and also to examine the rising incidence of fraud in the banking system. The panel will be headed by former RBI board member YH Malegam, who had also earlier led several RBI committees on important reform measures.The panel will explore “factors leading to an increasing incidence of fraud in banks and the measures (including IT interventions) needed to curb and prevent it; and the role and effectiveness of various types of audits conducted in banks in mitigating the incidence of such divergence and fraud,” the RBI said in a statement on its website. The other members of the committee will be Bharat Doshi, member of the RBI board;SRaman, former chairman and managing director of Canara Bank and former whole time member of the Securities and E

GST woes likely to hurt handicraft exports in 2017-18

GST woes likely to hurt handicraft exports in 2017-18 Problems related to refund of goods and services tax (GST) and slow demand in global markets would impact export of handicrafts and could lead to decline in shipment by about 3.5 per cent in the current fiscal year, the Export Promotion Council for Handicrafts (EPCH) said.EPCH Chairman O P Prahladka on Tuesday.He urged the government to immediately start refunds due to liquidity crunch faced by exporters.“About Rs 35 billion is stuck and it is impacting handicraft exporters, which are mainly in MSME sector. The Business Standard, New Delhi, 21th February 2018

Mismatch in govt GST export refund numbers

Mismatch in govt GST export refund numbers The latest figures from the government on claims filed by exporters for refunds under the goods and services tax (GST) grossly contradicts its earlier statement of facts in this regard. At the end of November 2017, the finance ministry had said the cumulative total of GST refund claims from shippers from July 1 rollout of the new tax till endOctober was Rs 65 billion. And, inamidJanuary letter to the Federation of Indian Export Organisations (FIEO), the ministry has stated the total of such refund claims from July 1 till December 31 was Rs 55 billion —of which Rs 19.23 billion had been paid. The communication has been reviewed by Business Standard. Asked to explain how a cumulative figure could melt in this manner, despite the addition of claims for November and December,asenior Finance Ministry official said, “At this juncture, it cannot be commented on.” Ajay Sahai, director general of FIEO, said: “There is no consistency in the fi

NBFCs amy grab larger share of corporate lending

NBFCs amy grab larger share of corporate lending The share for non-bank finance companies (NBFCs) in corporate lending might increase as the revised stressed asset framework predicts higher non-performing assets (NPAs) for banks. “Pressure on asset quality could mean that banks would not be as aggressive about lending as before, because they would focus on resolving NPAs," said Karthik Srinivasan, Group Head, Financial Sector Ratings, Investment Information and Credit Rating Agency. NBFCs have seen a strong growth rate in retail, but corporate lending is a new space for them. A CRISIL report said the share of wholesale credit in the NBFC credit pie was expected to increase to 19 per cent by 2020 from 12 per cent in 2014. It signals the shift of NBFCs towards corporate lending. “While NBFCs would continue to do well in their traditional stronghold of retail finance, they are growing fastest in the wholesale finance segment," said the CRISIL report.Pricing pressure fo