An interview with author of the report on the working of stock exchanges and other market infrastructure companies
The panel will include Economic Affairs Secretary Subhash Chandra Garg and RBI Deputy Governor N S Vishwanathan.
"This year (2009-10), our WPI is low and I don't see any problem on the horizon which could destabilise us except oil prices which remain a question," said Rajya Sabha MP and former Reserve Bank Governor Bimal Jalan. On the high fiscal deficit, Jalan said he did not think stimulus packages posed a problem. On taxation, he said it would not be good for the country not to have a reasonable rate of tax on profit and dividend.
'Most crises take place because locals take their money out, not because only foreigners do'
'I think today RBI supervision is much sharper than what it was earlier.'
Perhaps because the Modi government had some differences of opinion with two of the economist governors (one of whom was appointed by the Manmohan Singh government), there is a view that its political leadership prefers a civil servant to head the RBI, notes A K Bhattacharya.
Of the eight RBI governors who have held office since the 1991 economic liberalisation, Bimal Jalan had the longest stint and S Venkitaramanan, the shortest. Current Governor Shaktikanta Das will overtake Bimal Jalan before completing his second term in December, points out Tamal Bandyopadhyay.
The Reserve Bank on Wednesday approved a Rs 2.11 lakh crore dividend payout to the central government for 2023-24, more than double the amount it paid for the previous 2022-23 financial year. The decision was taken at the 608th meeting of the Central Board of Directors of the Reserve Bank of India held under the chairmanship of Governor Shaktikanta Das.
Garg had refused to sign on the report finalised by the former Reserve Bank of India governor Bimal Jalan-led committee reviewing the central bank's economic capital framework (ECF).
The Reserve Bank (RBI) resisted a 'raid' planned by some in the government to extract Rs 2-3 lakh crore from its balance sheet in 2018 to meet populist spending in run-up to general elections, Viral Acharya, who was deputy governor at RBI at that time, has written.
The RBI raked in a massive net income gain from foreign exchange currency sales as a buffer for the rupee during tumultuous geopolitical upheavals last year owing to Russia's invasion of Ukraine.
While the fiscal year has just begun, any windfall surplus will be welcomed by the government as it bids to meet the fiscal deficit target of 5.9 per cent of GDP, amidst lack of clarity on exactly to what extent will recession in the West impact India's trade and tax collections.
The thinking at the Centre is that since the RBI has ramped up purchases of government bonds, the interest earned on them will be transferred to the exchequer as dividend.
'Only the coming years will tell whether the government finds this an easy way of relieving itself from its fiscal constraints.'
The idea of weaponization got a fillip from an unexpected quarter. In the last week of October 1985, Rajiv met US President Ronald Reagan. Reagan told Rajiv, 'Pakistan has already made a bomb.' When Rajiv started talking about disarmament, the US president cut him short, 'Don't talk theory, think of your own protection.'
The Reserve Bank on Friday set up a three-member committee under former Governor Bimal Jalan to scrutinise applications for new bank licences, which are expected to be awarded by January.
'The Jalan Committee has now provided very clear guidelines on how the (RBI's) balance sheet should be looked at, what kind of disclosures should be made, what are the principles on which the Contingency Risk Buffer should be maintained, what should be the revaluation reserves, and the market risk to the Contingency Risk Buffer.'
Tells RBI this is not the time to consider such a foray, especially given the lack of funds to spare for such a venture.
High support prices, wage inceases and RBI's assumption of an 'acceptable' rate of inflation are responsible for the continuous price rise.
Traditionally, Prime Minister picks the RBI Governor after consultation with the finance minister.
Securities & Exchange Board of India (Sebi) Chairman C B Bhave has for the first time publicly backed the Bimal Jalan committee report on the working of capital market infrastructure institutions (MIIs). The report was placed in the public domain on November 24 and received scathing criticism from industry players.
Bimal Jalan cmmittee's recommendations must be viewed in the context of the lessons learnt from the trans-Atlantic financial crisis and the impact that distortions and mis-governance in the financial sector can have on the real economy. The report's focus on stability of markets is, therefore, important.
The committee was appointed by market regulator Sebi in December 2009 to review the ownership and working of capital market infrastructure institutions.
The RBI was not party to the decision to demonetize 500 and 1,000-rupee notes, which was taken at the highest level of India's political leadership.
It is now clear that the revised takeover code and the Bimal Jalan committee report will not be implemented soon and in the same form, since the finance ministry wants to seek industry views on these two sets of recommendations this month, before the market regulator could take a decision.
The ban on listing and other roadblocks on ownership have tainted the Jalan Committee report.
Amidst a debate in the government over investment of employees' provident funds in the stock market, former RBI Governor Bimal Jalan cautioned that any such move will have to be backed by a government assurance for making up for losses, if any.
The Reserve Bank of India will maintain a soft interest rate bias, the central bank's Governor said
Last month, the Bimal Jalan panel, which scrutinised applications for new bank licences, submitted its report along with shortlisted entities to the RBI.
Reserve Bank of India will announce the Monetary and Credit Policy for 2003-04 on April 29.\n\n\n\n
At present, investors who can buy up to 15 per cent in a stock exchange include domestic banks and financial institutions, clearing corporations, depositories and stock exchanges.
The report of the committee could be taken up at the next meeting of Securities and Exchange Board of India.
Central banks should be free to decide on monetary and credit policy.
Bombay Stock Exchange (BSE) shares have lost more than a third of their value in the last six months, as a lacklustre market has hurt volumes in the exchange's cash segment and several efforts to revive its derivatives segment are yet to show results.
Ram Jethmalani, Hema Malini, Dara Singh and four other nominated members of the Rajya Sabha will complete their term on August 26, enabling the United Progressive Alliance government to get own choice of persons of eminence nominated by President Pratibha Patil.
The luncheon at his residence was attended by Planning Commission Deputy Chairman Montek Ahluwalia, Chairman of PM's Economic Advisory Council C Rangarajan, former RBI Governor Bimal Jalan, Foreign Secretary Shiv Shanker Menon and officials of the Prime Minister's Office.
In an interview with Business Standard, Jalan, who has also been a member of the Rajya Sabha, speaks on a wide range of issues concerning the markets
Getting Nandan Nilekani and Bimal Jalan to share ideas is a good beginning for North Block officials.
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