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Ban on Raw Cotton Export Lifted

Oct 13, 2010
The Indian government in April 2010 banned raw cotton exports to control and lower the fast rising cotton prices in the domestic market. Export duty was imposed on cotton exports and export of raw cotton was regulated.

3G Spectrum to be Allotted

Oct 13, 2010
The Indian government on 25 June 2010 announced its decision to allot 3G spectrum to successful bidders on 1 September 2010. The government also rejected the criticism that the 3G auction was faulty and had resulted in high prices being paid by leading operators.

World Bank to Extend Loan for Indian Projects

Oct 12, 2010
The Indian Ministry of Finance signed two loan agreements with The World Bank on 9 July 2010. The World Bank according to the agreement would extend a loan of $407 million to India for the project on scaling up sustainable and the responsible microfinance as well as for the India statistical strengthening project.

RBI Raised Repo & Reverse Repo Rates

Oct 12, 2010
The RBI raised its main lending rate or repo rate from 5.25% to 5.5% and the reverse repo rate, at which it absorbs excess cash from the banking system from 3.75% to 4% on 2 July 2010. Earlier the apex bank had earlier changed the rates by .25% moving the repo & reverse repo rates to 5.25%.

Investment in Infrastructure Bonds Exempted from Tax

Oct 12, 2010
Under a new section- Section 80CCF of the Income Tax Act, 1961, the Indian government notified on 10 July 2010 that investment in infrastructure bonds would be applicable for tax exemptions. The exemption in these long-term infrastructure bonds under the new section would be in addition to the deduction of Rs 1 lakh already allowed under Sections 80C, 80CCC and 80CCD of the Act.

Economic Impact of the Geothermal Energy

Oct 12, 2010
International Conference on Geothermal and other Energy Resources of Ladakh: Technological and Business Viability” was organised in Leh on 5 July 2010. The focus was on developing this form of renewable energy with the help of big and small projects alike.

BWA Spectrum Allotted to Telecos

Oct 12, 2010
On 7 July 2010 the Indian Government allotted BWA (broadband wireless access) spectrum to Reliance Industries-owned Infotel, Aircel, Bharti Airtel and Tikona. The operators had won the spectrum during the recently held auction organised by the Government. The telecom companies would now offer broadband services that can facilitate high-speed wireless transmission of data.

FII pullout Resulted in Fall in Rupee

Oct 12, 2010
Sensex on 17 May 2010 recovered 300 points in intra-day trading to close 159 points lower at 16835.56. Foreign institutional investors pulled out Rs 5,856 crore in May 2010 after investing Rs 2,667 crore in the secondary market in April.

SEBI to Decide on MCX-SX Plea

Oct 12, 2010
In response to MCX-SX's writ petition, the Bombay High Court Chief Justice Mohit Shah, and Justice S.C. Dharmadhikari on 10 August 2010 ordered SEBI to decide on the MCX-SX plea by 30 September 2010. MCX-SX had filed a writ petition against SEBI for delaying permission to launch new products on its platform although it had complied to all the regulations.

RBI Asked to link MHP to Asset, Class, Tenor of loan

Oct 12, 2010
In response to the draft guidelines on securitisation issued by the RBI in April 2010, banks and non-banking finance companies recently requested RBI for the minimum holding period (period between origination of a loan and its securitisation) to be linked to the asset class and the tenor of the loan. As per the RBI regulations, the minimum holding period (MHP) for loans with less than two years maturity should be nine months whereas the mhp for loans of over two years should be 12 months.

RBI asked for Empowered Committee under FSDC

Oct 12, 2010
RBI on date asked the Indian government to empower a committee under the proposed Financial Stability and Development Council, or FSDC to deal with inter-regulatory issues and financial stability. The committee would replace High-Level Coordination Committee on Capital and Financial Markets (HLCCFM).

PSEs Spared the Public Share Holding Burden

Oct 12, 2010
Considering the comfort of Public Sector Entitites, the Indian Finance Ministry on 9 August 2010 diluted minimum public shareholding' guidelines. As per the revised guidelines, listed public sector entities would be required to keep 10% public share holding as against 25% suggested earlier.

Power Producers against Imposition of Customs Duty

Oct 12, 2010
Led by Tata Power and Reliance Power, a lobby of a dozen power companies recently protested against the government's intent to impose 14% customs duty on power equipment to check Chinese imports. The private power producers clubbed themselves under Association of Power Producers and collectively stated that their contribution to the country’s power sector would be restrained if customs duty is imposed on foreign power equipment.

Nalco to Commission Second Power Unit in Angul

Oct 12, 2010
National Aluminium Company Ltd (Nalco) decided to commission its second 120 MW power unit in Angul in August 2010. The Angul project is part of Nalco's phase-II expansion in Orissa.

GST Amendment Bill Redrafted

Oct 12, 2010
The constitutional amendments bill for the proposed Goods and Services Tax (GST) was redrafted by the Indian government who suggested that the states would also be given a veto power along with the Centre in the proposed GST. The measure was mentioned in the bill so that every decision taken by the GST council is approved only when all the states and the Centre agree to it.

Government Stake in Kribhco Not Reduced

Oct 12, 2010
With Krishak Bharati Cooperative Ltd (Kribhco) recently announcing to the Department of Fertilisers that Indian government would not reduce its stake in the company to 26%, the conflict between Kribhco & the government came to an ended. The Centre's share in Kribhco's equity had in the past fallen from 67.73 per cent to 48.35 per cent.

IIP Dipped in June 2010

Oct 11, 2010
After eight months of double-digit year-on-year increases in the official index of industrial production (IIP), India's industrial growth dropped to 7.1% in June 2010. The base effect was held responsible for the dip.

An Understanding between TRAI & RBI on Mobile Banking

Oct 11, 2010
The Telecom Regulatory Authority of India (TRAI) and the Reserve Bank of India (RBI) reached an understanding in June 2010 on the regulatory aspects of mobile banking. The objective of the bodies is to ensure a smooth rollout of mobile banking in the country.

SEBI-IRDA Conflict Resolved

Oct 11, 2010
The Indian Government on 19 June 2010 put an end to the Securities and Exchange Board of India (Sebi)- Insurance Regulatory and Development Authority (IRDA) conflict over unit-linked plans (ULIPS) maintaining that ULIPS would be regulated by IRDA. SEBI is the securities regulator and IRDA regulates insurance companies.

Relaxation in Cabotage Law Demanded

Oct 11, 2010
The Indian shipping community in June 2010 sought the relaxation of the Cabotage Law in the wake of the Kochi port preparing to commission the Vallarpadam Terminal. The terminal can develop as a trans-shipment terminal for the sub-continent only if the Cabotage Law is relaxed and foreign flag vessels permitted to carry export/import trans-shipment containers from any of the Indian ports to the ICTT or vice-versa.
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