Reserve Bank of India, in its Annual Monetary Policy, allowed four more credit information companies (CIC) to start operations. This will strengthen the credit appraisal system. Bankers felt that soon electricity bill, telephone bill and other payments would become part of the credit appraisal system that banks use before sanctioning a loan to the customer.
(i) All banks should obtain RBI approval for IPOs. After listing on the stock exchanges, banks are free to price their subsequent issues. (ii) Issue price should be based on merchant banker’s recommendation. There need be no reference to the CCI formula for deciding on the pricing of such issues.
The Reserve Bank today said it will come out with a discussion paper on new norms for granting banking licenses to private sector companies and Non-Banking Financial Companies by July end. The discussion on new banking licences will be posted on the website of the central bank for public comments, RBI governor D Subbarao said while unveiling the monetary policy for 2010-11.
Monetary Policy Measures Complement Finance Ministry’s Policies Aimed at Controlling Inflation and Promoting Sustainable Growth: FM. Finance Minister, Shri Pranab Mukherjee has welcomed the Monetary Policy 2010-11 announced today by the Reserve Bank of India. Finance Minister’s observations on Monetary Policy are as under:
Core Investment Companies :-Reserve Bank of India [RBI] has announced on 20 April 2010 a proposal to introduce a new regulatory framework for Non-Banking Financial Companies [NBFC] which are “Core Investment Companies” [CIC]. The announcement was made as part of Annual Monetary Policy for the year 2010-11.
Appellant is engaged in the manufacture of motorcycle, auto rickshaw, etc. and are availing Cenvat credit on the inputs received in its factory. The inputs are supplied by various independent suppliers under contracts backed by the purchase orders for agreed prices. Appellant availed credit on these inputs based on proper duty paying documents.
The Monetary Policy for 2010-11 is set against a rather complex economic backdrop. Although the situation is more reassuring than it was a quarter ago, uncertainty about the shape and pace of global recovery persists. Private spending in advanced economies continues to be constrained and inflation remains generally subdued making it likely that fiscal and monetary stimuli in these economies will continue for an extended period.
The family of the late G Chandrasekaran, a long-time Doha resident, has instituted an endowment fund under the management of the Institute of Chartered Accountants of India (ICAI). The G Chandrasekaran Memorial Endowment Fund will finance the foundation course of ICAI curriculum for an economically backward student from India and chosen by ICAI.
Investors spend time on their investments, mostly on the selection of options for their portfolio. However, little attention is paid to another area of equal importance, the paperwork related to the investment. Inadequate attention to this area can lead to a situation where the entire investment is stalled. The several details that need completing can range from just completing the nomination form in the investment to ensuring the bank account details are given to the investing institution.
Tightening the noose around the audit companies having arrangements with global firms, the accounting regulator ICAI has sought details of their tie-ups with MNCs to check surrogate practices. The decision to seek tie-up details from CA firms, especially those associated with the Big 4– PWC, Ernst & Young, KPMG and Deloitte–follows a report by an Institute of Chartered Accountants of India (ICAI) committee on the multi-crore Satyam scam.
