Daily Sector News Today – 03.01.2018
* AUTOMOBILE: Ford India has sold 29,795 units in December, up 27% on year. The Centre on Tuesday informed the Madras High Court that it intended to object to the jurisdiction of the international tribunal in the Nissan Motor case, as the Japanese automaker has already approached an Indian court about the matter.
* BANKING: The Reserve Bank of India wants the government to make a diplomatic push to enter into more bilateral and multilateral foreign exchange swap lines. It is unlikely that a situation will arise where the bail-in provisions in the proposed Financial Resolution and Deposit Insurance Bill will be needed to be used for public sector banks, the government said.
- The Rajya Sabha has passed the National Bank for Agriculture and Rural Development (Amendment) Bill, 2017, allowing the government to raise the authorised capital of NABARD six times to 300 bln rupees. Lenders such as ICICI BANK, AXIS BANK, and HDFC BANK may follow STATE BANK OF INDIA in cutting rates for borrowers as competition intensifies among the country's biggest lenders.
- The government assured bank depositors that their money will remain insured under the financial resolution and deposit insurance bill and the resolution corporation can raise the deposit insurance amount. The government said there have been complaints against banks that they do not accept coins for transactions at their branches.
* COMMODITIES: The Multi Commodity Exchange of India is well equipped to enter equity and currency segments when universal exchange becomes a reality from Oct 1, Managing director and Chief Executive Officer Mrugank Paranjape said.
* CORPORATE: The Insolvency and Bankruptcy Board of India has amended the regulations to provide for this confidentiality. "As per the Amendments, it is not necessary to disclose 'liquidation value' in the information memorandum," the government said in a statement.
* E-COMMERCE: Future Group is said to be in talks to buy online retail platform Snapdeal's logistics arm Vulcan Express for about 500 mln rupees in an all-cash deal.
* ECONOMY: The Indian government spent 2.061 trln rupees on major subsidies in Apr-Nov, accounting for 85.7% of the Budget target for the financial year ending March. The government has announced higher borrowing, the upcoming Union Budget is expected to be populist, and the current account deficit has widened - all these would usually weigh heavily on the Indian currency.
* EXCHANGES: The BSE today will auction investment limits, enabling foreign investors to purchase corporate bond securities worth 137 bln rupees.
* FINANCE: Finance Minister Arun Jaitley introduced the Negotiable Instruments (Amendment) Bill in the Lok Sabha with a view to address the delay in resolution of cheque dishonour cases and provide interim relief to the complainant.
* INSURANCE: Life Insurance Corp, will stop fresh investments in Tata Sons, along with all other insurance companies, as the Tata group holding company turns private.
* OIL AND GAS: The government plans to finish the first round of oilfield auction by March and award blocks by June. The auction is slated to be launched on Jan 16 under the new hydrocarbon exploration licensing policy.
* PHARMACEUTICALS: The National Pharmaceutical Pricing Authority has fixed retail prices of 14 formulations, including those used in the treatment of high cholesterol and high blood pressure.
* POWER: The estimated rise in tariff due to retrofitting of power stations to meet new emission norms is likely to be 62-93 paise per unit for the first year after the adoption of the regulations, Power Minister R. K. Singh said. CDC Group Plc, the UK government's development finance institution, on Tuesday announced the launch of Ayana Renewable Power, a renewable energy platform for India and eighbouring countries.
* REAL ESTATE: The Maharashtra Cabinet has approved the proposal to use vacant industrial land across the state for construction of affordable housing.
* REGULATORY: The Securities and Exchange Board of India has proposed separating distribution and advisory services provided by banks and non-banking finance companies for financial products.
* TAXATION: The government has notified a lower 1% goods and services tax rates for manufacturers who have opted for composition scheme as well as easier norms for traders opting for it.
* TELECOMMUNICATION: The Telecom Regulatory Authority of India on Tuesday released a detailed set of regulations for interconnection pacts between operators and mandated a daily penalty of 100,000 rupees per circle for noncompliance of these norms.
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* BANKING: The Reserve Bank of India wants the government to make a diplomatic push to enter into more bilateral and multilateral foreign exchange swap lines. It is unlikely that a situation will arise where the bail-in provisions in the proposed Financial Resolution and Deposit Insurance Bill will be needed to be used for public sector banks, the government said.
- The Rajya Sabha has passed the National Bank for Agriculture and Rural Development (Amendment) Bill, 2017, allowing the government to raise the authorised capital of NABARD six times to 300 bln rupees. Lenders such as ICICI BANK, AXIS BANK, and HDFC BANK may follow STATE BANK OF INDIA in cutting rates for borrowers as competition intensifies among the country's biggest lenders.
- The government assured bank depositors that their money will remain insured under the financial resolution and deposit insurance bill and the resolution corporation can raise the deposit insurance amount. The government said there have been complaints against banks that they do not accept coins for transactions at their branches.
* COMMODITIES: The Multi Commodity Exchange of India is well equipped to enter equity and currency segments when universal exchange becomes a reality from Oct 1, Managing director and Chief Executive Officer Mrugank Paranjape said.
* CORPORATE: The Insolvency and Bankruptcy Board of India has amended the regulations to provide for this confidentiality. "As per the Amendments, it is not necessary to disclose 'liquidation value' in the information memorandum," the government said in a statement.
* E-COMMERCE: Future Group is said to be in talks to buy online retail platform Snapdeal's logistics arm Vulcan Express for about 500 mln rupees in an all-cash deal.
* ECONOMY: The Indian government spent 2.061 trln rupees on major subsidies in Apr-Nov, accounting for 85.7% of the Budget target for the financial year ending March. The government has announced higher borrowing, the upcoming Union Budget is expected to be populist, and the current account deficit has widened - all these would usually weigh heavily on the Indian currency.
* EXCHANGES: The BSE today will auction investment limits, enabling foreign investors to purchase corporate bond securities worth 137 bln rupees.
* FINANCE: Finance Minister Arun Jaitley introduced the Negotiable Instruments (Amendment) Bill in the Lok Sabha with a view to address the delay in resolution of cheque dishonour cases and provide interim relief to the complainant.
* INSURANCE: Life Insurance Corp, will stop fresh investments in Tata Sons, along with all other insurance companies, as the Tata group holding company turns private.
* OIL AND GAS: The government plans to finish the first round of oilfield auction by March and award blocks by June. The auction is slated to be launched on Jan 16 under the new hydrocarbon exploration licensing policy.
* PHARMACEUTICALS: The National Pharmaceutical Pricing Authority has fixed retail prices of 14 formulations, including those used in the treatment of high cholesterol and high blood pressure.
* POWER: The estimated rise in tariff due to retrofitting of power stations to meet new emission norms is likely to be 62-93 paise per unit for the first year after the adoption of the regulations, Power Minister R. K. Singh said. CDC Group Plc, the UK government's development finance institution, on Tuesday announced the launch of Ayana Renewable Power, a renewable energy platform for India and eighbouring countries.
* REAL ESTATE: The Maharashtra Cabinet has approved the proposal to use vacant industrial land across the state for construction of affordable housing.
* REGULATORY: The Securities and Exchange Board of India has proposed separating distribution and advisory services provided by banks and non-banking finance companies for financial products.
* TAXATION: The government has notified a lower 1% goods and services tax rates for manufacturers who have opted for composition scheme as well as easier norms for traders opting for it.
* TELECOMMUNICATION: The Telecom Regulatory Authority of India on Tuesday released a detailed set of regulations for interconnection pacts between operators and mandated a daily penalty of 100,000 rupees per circle for noncompliance of these norms.
