The high level of capital inflows has forced the government to put fresh restrictions on ECBs. In August this year, the Reserve Bank of India tightened ECB rules by limiting the use of foreign loans in India at $20 million per company.
Among its suggestions to the finance ministry, RBI has also said the government should classify private equity under a separate category of foreign investment, or create sub-limits within foreign direct investment or investments by foreign institutional investors.
The finance ministry is of the view that all interests -- direct and indirect -- should be taken into account and that there should not be any threshold for calculating total effective foreign shareholding in a company.
The two groups have another JV, Wadia BSN, set up in 1996 to launch Groupe Danone's products from its global portfolio. However, nothing has been launched through the JV till date and Danone is in negotiations with the Wadias to dissolve the JV.
South India relatively insulated from the increase in prices.
Individuals may soon get to invest in overseas commodity and equity derivatives.
The Reserve Bank of India is in favour of a cautious and gradual approach to financial sector reforms rather than a big-bang approach, as advocated by the Percy Mistry Committee report on making Mumbai an international financial centre.
At a high-level coordinate committee meeting to be held by the month-end, the government and the Reserve Bank of India will take stock of the situation.
The central bank's objective is to align the regulations for such loans with the tenure and end-use norms for external commercial borrowings in a bid to check foreign currency inflows.
The ordinance will raise the eligibility limit of bonus payments to those who earn Rs 10,000 a month as basic salary and dearness allowance, from the earlier cut-off of Rs 6,000 a month.
Anticipating elections, the United Progressive Alliance government plans to introduce an ordinance to relax the rules on the payment of bonus by the private sector and the Central government ahead of the festival season.
The finance ministry had strongly opposed the hike announced by the commerce ministry.
In order to expedite the implementation of the Parekh Committee's recommendations on infrastructure financing, the finance ministry has decided to pursue a few key issues instead of taking up the whole report.
Bonds/papers of Tata Motors, Reliance, SBI, ICICI and others turn illiquid in international markets.
"It is a logical step. The information gathered through annual information returns will now be compared with the tax returns of individuals to see if taxes are paid correctly or not," said a consultant with a leading tax advisory firm.
The Central Board of Direct Taxes is considering a proposal to restrict the exemption on long-term capital gains only to companies constituting the BSE-500 index.
Liquidity is expected to remain comfortable this week, albeit the rate at which it is available may inch up rather than remaining below 1 per cent.
The Planning Commission is considering a hike in public sector investment in the farm sector to 4 per cent of agricultural gross domestic product towards the end of the 11th Plan (2007-12).
To consider open offer if price falls below Rs 2,100 a share.
The Reserve Bank of India is exploring a dedicated currency futures exchange, after taking an in-principle decision to launch rupee-denominated futures.
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