Relaxation in the norms relating to infrastructure lending and 70 per cent loan loss coverage ratio are likely to top the agenda when bankers meet Reserve Bank of India on January 14, ahead of the quarterly policy review. “Banks will press their demand to relax the norms on infrastructure lending. They may also ask for some easing in the guidelines announced for banks to augment their loan loss coverage ratio to 70 per cent,” Indian Banks’ Association chief executive, K Ramakrishnan told PTI in Mumbai.
After a gap of more than a decade, the union Budget may be presented in the Lok Sabha on Saturday which happens to be February 27. “In view of holidays for three consecutive days from February 26 onwards, we can have it (Budget presentation) on February 27,” Parliamentary Affairs Minister Pawan Kumar Bansal told PTI.
The finance ministry, upset with the new rules for calculating foreign direct investment (FDI) in Indian companies, has sought to overhaul the entire policy to shut ‘loopholes’ that allow investors to breach sectoral FDI caps through investments via offshoots. In a fresh missive to the Department of Industrial Policy and Promotion (DIPP), the government body responsible for framing foreign investment policy, the ministry has asked for a review of the policy that has caused much confusion among investors, foreign and Indian.
The forthcoming budget may contain provisions for taxing the undistributed dividend of foreign corporations that are controlled or owned by Indian companies. Controlled Foreign Corporations (CFCs) laws enable the authorities to tax the income of a resident derived from a foreign corporation. This is irrespective of whether the profit/dividend of the foreign entity is transferred to India or not.
In line with the Orissa government’s commitment to usher a new era of e-governance, the state on Monday introduced hassle-free e-registration of sale and purchase of land through the public private partnership . Inaugurating the e-registration system here at a crowded meeting, chief minister Naveen Patnaik asserted that this move would ensure faster, simpler, accurate system of automation for all the 64 types of deeds in 177 sub-registrar offices as centers”.
The life insurance industry wants service tax on fund management charges to be withdrawn, as is the case with mutual funds. The Life Insurance Council-the representative body of life insurers-will shortly make a presentation to the finance ministry urging the introduction of a uniform taxation platform for the life insurance sector.
Himachal Pradesh chief minister Prem Kumar Dhumal on Monday said commerce and industry minister Anand Sharma has recommended extending special industrial package to the state up to 2013. Dhumal met Sharma on Monday to lobby for the extension of tax benefits enjoyed by industrial units in the state, which was to expire on March 2010.
SEBI, vide its press release dated December 10, 2009 had informed that ASBA facility shall be extended to all investors other than QIBs, in all public issues with effect from January 1, 2010. It was also informed that SEBI would be displaying names and other relevant details of banks (Self Certified Syndicate Banks (SCSBs) which will be authorized to accept ASBAs w.e.f. January 1, 2010, on the website www.sebi.gov.in .
The issue relating to the internal assignments allotted to the audit firms at the time of their appointment as statutory auditors has been examined afresh and it has been decided as under: “Audit firms should not undertake statutory audit assignment while they are associated with internal assignments in the bank during the same year. In case the firms are associated with internal assignment it should be ensured that they relinquish the internal assignment before accepting the statutory audit assignment during the year.”
The central trade unions will press for shelving of a proposal, that wants to tax withdrawals from savings schemes, including provident funds, at the pre-Budget meeting with Finance Minister Pranab Mukherjee on January 14. “(The) Finance Minister has invited trade unions for pre- budget consultations on January 14,” All India Trade Unions Congress Secretary D L Sachdev told media.
