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 Monopolies and Restrictive Trade Practices Commission (MRTPC) had sent a letter to about half a dozen banks last month, seeking details on how they had determined the interest rate increases on their housing loans.
Banks had raised the interest rates on loans by as much as 350 basis points although the cost of deposits had increased by a maximum of 200 basis points. With the deposit rates having softened from the April 2007 levels, banks have decided to pass on the benefits but only to the new borrowers.
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.
According to sources, this is quite rare since most of the requirements of the banks are first met through call market borrowings and then through the repo window of RBI . Under the repo, banks borrow funds from RBI by pledging government securities.
At a recent meeting of the high level coordination committee of regulators on capital markets, the RBI clarified that no approvals for VCFs will be issued since the Finance Ministry is reviewing the policy for investment in the realty sector for both foreign direct investment (FDI) and portfolio investments by foreign institutional investors.
According to a source close to the development, the investment advisory committee of the Insurance Regulatory and Development Authority has suggested far-reaching changes to make the investment norms more flexible, while adhering to the existing prudential investment guidelines.
In a move to check wild swings in the share prices of newly listed small-cap companies, the Securities and Exchange Board of India is considering a price band (circuit filter) for the first couple of days after listing.
Some sections within the government feel that it is possible to treat them as separate entities as is done in case of World Bank and its private investment arm -- the International Finance Corporation. However, RBI is of the view that there cannot be a one-off approval and Temasek and GIC cannot be considered as separate entities as they belong to the same government -- the government of Singapore.
Irda is planning credit rating for insurance companies. Such a move will enable the regulator to grade insurance companies.
RBI has come down heavily on banks and dealers that are holding government securities portfolio.
The move follows concerns raised by the Reserve Bank of India. According to sources, the central bank is concerned that most sovereign wealth funds operate in a non-transparent manner.
The ministry of finance does not want a single entity to own more than five per cent in a CIB. This view is backed by the Reserve Bank of India.
The Reserve Bank of India has finally cleared the long-pending transfer of Thailand-based Surachan Chawla's 38 per cent stake in Catholic Syrian Bank.
Policy rates are not likely to increase in 2008 but a cut in repo rate too is uncertain.
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