Other Briefings
India Allows 100% FDI in Several Key Sectors
Apr. 7 – India’s Department of Industrial Policy and Promotion has released the “Consolidated FDI Policy – Circular 1 of 2011,” that will allow 100 percent FDI in the development and production of seeds and planting material, floriculture, horticulture, and cultivation of vegetables and mushrooms under controlled conditions. Furthermore, animal husbandry (including the of breeding […]
Changes on Pricing of Convertible Instruments
Apr. 6 – Companies are now free to lay down a formula to transform convertible instruments (like debentures, partly paid shares, preferential shares and the like) into equity in accordance with the guidelines of FEMA and SEBI. India’s Department of Industrial Policy of Promotion has also relaxed the rules and regulations for convertible instruments to […]
India Experiencing Negative Real Rate of Interest
Mar. 24 – The government of India should address the fact that the nation’s nominal interest rate is lower than its rate of inflation to strengthen India’s economic fundamentals, Martin Feldstein, a professor of economics at Harvard University, told the Times of India. Economists call this situation a “negative real rate of interest.” It occurs […]
India Puts Accounting Practices in Line with International Standards
The Indian Ministry of Corporate Affairs recently said that it had aligned 35 Indian accounting practices with international standards, marking an important step to bringing International Financial Reporting Standards (IFRS) …
India to Use Part of Coal Tax to Improve Power Transmission
The Indian government is considering spending part of its estimated Rs.25 billion-coal tax revenue on new power transmission lines, to help power distribution to every state from the clean energy projects.
Indian 2011/12 Budget Good for Foreign Investment
Mar. 1 – Finance Minister Pranab Kumar Mukherjee presented the Union Budget for 2011/12 this past Monday. The budget focuses on finding a balance between controlling inflation and maintaining economic growth. Good news for foreign investors comes in the form of no drastic changes in taxation rates, no negative indications, and no major reform agenda. […]
RBI Relaxes Lending Rules for Bank Loans to Microfinance Institutions
The Reserve Bank of India temporarily relaxed lending rules for bank loans to microfinance institutions, allowing banks to continue offering loans to the ailing sector. The RBI will, for a short period of time, permit banks to classify loans that might be delinquent as standard to introduce some liquidity into the industry.
Cash Shortages Hit Indian Banks
Dec. 22 – Indian banks may recently be experiencing a cash crunch caused by the increasing borrowings of domestic companies since July this year. The shortage has increased the repo borrowings by banks as well as the interbank loan interest rates, according to a December 21 report on Times of India (TOI). On December 20, […]
