The Insurance Regulatory and Development Authority (Irda) may allow up to 25 per cent investment to a single group of companies as part of the group exposure norms for unit-linked insurance plans (Ulips).While in the normal course, the regulator is likely to cap the investment of such polices at 20 per cent, the ceiling can be relaxed by another 5 per cent with prior approval of the board through what is called discretionary limits.
Exchangeable bonds are instruments that allow a holding company or the parent company of a group to raise funds from the overseas market for use by any of the group companies. The bonds will then be converted into shares of the company for which funds were raised. RBI has sent a cautionary note to the government stating that the rules for exchangeable bonds will have to be aligned with the norms for external commercial borrowings.
India will finally sign an investment treaty - the Bilateral Investment Promotion and Protection Agreement (BIPA) - with Myanmar in the first week of April. The pact is going to be of critical interest to a host of oil majors looking at investments in the resource-rich country.According to sources, the treaty will be signed with the approval of Prime Minister Manmohan Singh. The Cabinet ratification, they say, will come later.
The government has initiated a comprehensive review of external commercial borrowings (ECB) policy. While the details are yet to be thrashed out, the government and the Reserve Bank of India are set to raise the ceiling for the current financial year from $22 billion to $28-30 billion. Sources said the move was prompted due to a breach in the existing ceiling.
The income tax authorities have put banks and companies disclosing losses in their foreign exchange derivative structures under the scanner. Banks and companies have been called to explain the extent of losses and structures initiated in both Indian and overseas markets through their branches and subsidiaries. The income tax department will then ascertain whether banks and companies entered into transactions to hedge their portfolio or for purely speculative purposes.
Citing the need for a more liberal regime for the banking and financial sector, RBI has opposed bilateral trade agreements. With no multilateral pacts with the WTO, the government had entered into free trade agreements, whose scope was later expanded to services, investment and even bilateral tax treaties. RBI has urged other countries such as UK, US and Europe to show reciprocity in granting branch licenses to Indian banks as they expect a similar treatment from India.
Canadian communications major Research In Motion (RIM), owners of the BlackBerry brand of mobile phones, has assured the Department of Telecommunications (DoT) that it would sort out the BlackBerry tangle by initiating discussions between security agencies of Canada and India. The move comes in response to a government notice directing BlackBerry service providers to stop services by December 31, 2007.
Rise in euro against the dollar is benefitting exporters trading the currency. Traders book forward deals to benefit from bullish European currency.
Wants CBDT to plug loophole in the system.
The Income Tax department has suggested an amendment for taxation of bad debt to the Central Board of Direct Taxes
The Insurance Regulatory and Development Authority has clarified that only the premium collected for providing health cover in the case of unit-linked health insurance policies will be eligible for tax benefits.
Move targeted at companies with high promoter holdings.
On Tuesday, the 32-member Parliamentary Committee is understood to have met officials of the Securities and Exchange Board of India, Reserve Bank of India, stock exchanges, various brokers, Unit Trust of India, Life Insurance Corporation and State Bank of India. The committee is expected to meet officials of the finance ministry next week.
According to sources close to development, the paper proposes four new concepts for making the taxation of foreign companies in India and foreign transaction of Indian companies, especially overseas mergers and acquisitions, more transparent.
The Central Board of Direct Taxes has proposed that the sale of capital assets of a company operating in India, but registered overseas
Banks raising one-year deposits at 9.75% to meet MF, pension fund redemptions.
The Reserve Bank of India is not in favour of the government subscribing to State Bank of India's rights issue through bonds on grounds that it does not conform to good corporate governance.
The voice operations (call centres) of IT-BPO firms -- which comprise around 20-30 per cent of most firms in India -- will be the most affected since the International Private Leased Circuits are down.
Sebi has proposed to examine the margining system of stock market, in an effort to make the system easier for retail investor.
Banking industry sources said data has been sought both on the source and deployment of funds by NBFCs, both those that accept deposits and those that don't.
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