Overseas markets are already hit by an acute dollar crunch, which is why major central banks, the US Federal Reserve, the European Central Bank and the Bank of England, had to infuse funds into the market. These lines of credit are over and above the stand-by credit, which is usually maintained by foreign banks with the Indian banks.
Over 270 applications from foreign institutional investors (FIIs) are awaiting the Securities and Exchange Board of India's (Sebi) clearance as the debate on the speedy clearance of registrations by the capital market regulator rages on. In fact, during the last one year, the Sebi has cleared a total of 141 applications, an average of about 12 registrations a month.
The capital market regulator would soon write to the Reserve Bank of India to allow repos in corporate bonds, which were expected to boost the liquidity in the corporate debt market, said sources. In a repo trade, a market participant pledges a corporate paper in exchange for funds for a specific period and at a rate determined by the market.
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 NSE, along with financial institutions like IL&FS and IDBI, has proposed to set up a special exchange.
The Securities and Exchange Board of India (Sebi) is looking at reducing the fees of all mutual fund schemes - equity funds (open- and close-ended), debt funds, index funds and even funds of funds (or FoFs, mutual funds that invest in mutual funds).
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.
An interview with Sebi chief M Damodaran.
Individuals may soon get to invest in overseas commodity and equity derivatives.
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 Securities and Exchange Board of India on Tuesday approved the open offer of Vedanta Resources for Sesa Goa.
Bonds/papers of Tata Motors, Reliance, SBI, ICICI and others turn illiquid in international markets.
The Allianz Group, the German financial services powerhouse, is planning to foray into the booming asset management business in India.
"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.
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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