IIFT Compendium 2013

Supreme Court dismisses plea of Novartis for patent of cancer drug

The Supreme Court has dismissed Swiss drugmaker Novartis AG's attempt to win patent protection for its
cancer drug Glivec, a serious blow to Western pharmaceutical firms who are increasingly focusing on India
to drive sales. India's domestic drugs market is the 14th largest globally, but with annual growth of 13-14 per
cent and the world's second biggest population, it has massive potential at a time when traditional developed
markets have slowed down.
Madhya Pradesh pips Bihar to clock highest growth
Madhya Pradesh has decrowned Bihar from its number one position in terms of highest growth of gross state
domestic product. Quoting the provisional data released by the Central Statistical Organisation for 2012-13,
the paper said that Bihar registered single digit growth of 9.48% this fiscal as compared to 13.26% in 2012.
However, Madhya Pradesh has registered 10% growth in 2013.Bihars GDP growth stands at Rs 157,957
crore in the current fiscal which is up Rs 13,679 crore from its previous fiscals growth at Rs 144,278 crore.
SpiceJet pips AI to become 3rd largest domestic carrier
SpiceJets 'Big Sale' scheme of offering million tickets at Rs 2,013 across the country was a super hit. It
helped the budget carrier overtake Air India to grab the third position in domestic airlines market share in
February 2013. Indigo has retained its numer- uno position with a market share of 27.4 percent. It was
followed by Jet Airways together with JetLite in the second spot at 25.4 percent and Air India slipped at fourth
position from 20.3 percent to 18.9 percent. At third spot, Spice Jet garnered 20.4 percent market share.
Vijaya Bank gets certification from BSI
Vijaya Banks announced that its Risk Management Department has received ISO 27001 certification from
the British Standards Institute. The public sector bank claimed that the banks department is first among
Indian banks to receive such certification.
NMDC, IndusInd get into Nifty
NMDC Ltd. and IndusInd Bank were included in the CNX Nifty index of the National Stock Exchange (NSE),
replacing Wipro and Siemens. Both companies were included as part of a re-balancing exercise.
Norms set for insurance JV by CICs
The Reserve Bank of India (RBI) said that any core investment company (CIC) registered with it needs
minimum Rs.500 crore owned funds to set up a joint venture company for undertaking insurance business.
Among other norms, the RBI said that the level of net non-performing assets shall be not more than 1 per
cent of total advances. Further, it should have registered net profit continuously for three consecutive years,
and the track record of the performance of the subsidiaries, if any, of the CIC concerned should be
satisfactory. These companies are required to maintain adjusted net worth which would be not less than 30
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per cent of aggregate risk-weighted assets on balance sheet and risk adjusted value of off-balance sheet
items. The RBI said that no CIC would be allowed to conduct such business departmentally. Further, an
NBFC (in its group / outside the group) would normally not be allowed to join an insurance company on risk
participation basis, and, hence, should not provide direct or indirect financial support to the insurance
venture. The apex bank said, CICs may be permitted to invest up to 100 per cent of the equity of the
insurance company either on a solo basis or in joint venture with other non-financial entities in the group. In
case where a foreign partner contributes 26 per cent of the equity, more than one CIC may be allowed to
participate in the equity of the insurance joint venture. CICs cannot enter insurance business as agents and
companies that wish to participate in insurance business as investors or on risk participation basis will be
required to obtain prior approval of the central bank.
Suzuki Motors stake in Maruti up to 56.21 %
Japanese auto major Suzuki Motor Corporation's stake in subsidiary Maruti Suzuki (MSI) has increased to
56.21 per cent post the merger of its engine and transmission maker Suzuki Powertrain with Indias largest
car maker. Suzuki Motor Corporation (SMC) has acquired additional 4.36 per cent in MSI taking its stake to
56.21 per cent from 54.21 per cent, according to a MSI filing to the BSE. As per the merger agreement, the
swap ratio was fixed at 1:70, which meant SMC received one share of MSI of Rs.5 each for every 70 shares
of Rs.10 each it held in SPIL.
Prasad to head Dr. Reddys Lab
Dr. Reddys Laboratories announced the appointment of G. V. Prasad as its new Chairman and Satish Reddy
as Vice-Chairman.
Gold tariff value hiked
In a bid to check unbridled imports of gold and, thereby, contain the widening current account deficit (CAD),
the government, has raised the tariff value of gold to $521 per 10 grams to render its imports costlier.
According to a notification issued by the Central Board of Excise and Customs, the fortnightly tariff value of
gold the base price on which customs duty is determined to prevent under-invoicing stands increased to
$521 from $516 per 10 grams in March. The tariff value for silver, however, has been lowered to $920 from
$930 a kg.
Axis Bank launches special home loan scheme for self-employed
The third largest private sector lender Axis Bank has launched a dedicated home loan product for the selfemployed. At 1 per cent above the base rate to start with, borrowers will pay higher than the ones in the
salaried class, but lower than the going rates in the market, Axis Bank's head for consumer lending and
payments Jairam Sridharan said. The interest rate will get reduced by 0.25 per cent each in three phases at
the end of the second, third and the fifth year, at 0.25 per cent over the base rate, a self-employed person
will be at par with a salaried borrower by the fifth year.

GAIL inks 20-yr deal with US co for LNG liquefaction capacity

GAIL India Ltd said it has booked capacity at a proposed LNG production plant in at Lusby in Maryland, US
that the State-owned gas utility plans to use to convert shale gas it will produce in US into liquid (LNG) for
shipping to India. GAIL Global (USA) LNG LLC, a US affiliate of GAIL, signed a 20-year terminal service
agreement with Dominion Resources Inc to book 2.3 million tonnes per annum liquefaction capacity in the
Cove Point LNG project. Dominion plans to start construction on the 5.25 million tons per annum facility in
2014 and put the liquefaction facilities in service in 2017.
DIPP Secy to head inter-ministerial panel on MSME
The Government has set up an Inter-Ministerial Committee to look into issues faced by small units and
suggest ways to boost the manufacturing in the sector. The committee will be headed by Department of
Industrial Policy and Promotion (DIPP) Secretary Saurabh Chandra.
Farooqui takes over as DoT Secretary
MF Farooqui has replaced R Chandrashekhar at Department of Telecom (DoT). Farooqui, a 1978 batch
Indian Administrative Service officer from the Tamil Nadu Cadre, was serving as Secretary, Department of
Heavy Industry before this. Farooqui will have a 15 month tenure in DoT before he attains superannuation
age of 60 years in June 2014.
India, Singapore sign enhanced air services agreement
India and Singapore has signed an enhanced air services agreement, immediately raising airline seats by 10
percent on each way in a response to growing passenger traffic between the two countries. Under the
agreement, both sides have increased seats by 10 percent. Indian airlines would have 29,300 seats per
week and Singapore 28,600, which would mean using more flights. Currently, Singapore is linked by air
services to 12 Indian cities, with 216 flights weekly between the two countries, making it the most connected
destination in Southeast Asia.
Hassad Food buys major stake in Bush Foods
Qatar-based investment firm Hassad Food has acquired an undisclosed majority stake in New Delhi-based
basmati rice company Bush Foods Overseas Ltd., for an estimated $100 million. Hassad Food Company is a
wholly-owned subsidiary of Qatar Holding, which is part of Qatar's sovereign wealth fund Qatar Investment
Authority (QIA). It invests in agriculture and livestock sectors.
SEBI introduces common pool of arbitrators
The Securities and Exchange Board of India (SEBI) has introduced Common Pool and Automatic Process
for selection of arbitrators through stock exchanges. This process has come into effect from April 1, 2013. As
all stock exchanges are having nation-wide trading terminals, the regulator advised them to pool the list of
arbitrators, and create a common pool, instead of having exchange-wise pools of arbitrators.
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NTPC to shift Odisha project to Madhya Pradesh

NTPC, which had proposed to invest over Rs.11,000 crore in a new 1,600 MW coal-based project at
Gajmara in Odisha has decided to relocate it to Gadarwara in Madhya Pradesh, due to delay in land and
environmental clearances. NTPC, at present, operates two thermal power plants Talcher Kaniha (3,000 MW)
and Talcher (460 MW) in Odisha.
DRL launches Zoledronic acid injection in U.S.
Dr. Reddys Laboratories (DRL) has launched Zoledronic Acid injection (5 mg/100 ml), a therapeutic
equivalent generic version of Reclast injection, in the U.S. Markets. The launch follows the approval given by
the U.S. Food and Drug Administration for Dr. Reddys ANDA for Zoledronic Acid injection.
S. Gopalakrishnan is CII President
Infosys co-founder and co-Chairman S. Gopalakrishnan has taken over as President of Confederation of
Indian Industry (CII) for 2013-14, succeeding Godrej Group Chairman Adi Godrej. One of the five founders of
Infosys, Mr. Gopalakrishnan is a recipient of Padma Bhushan award and serves on the board of IIM,
Bangalore. Chairman and Senior Managing Director of DCM Shriram Consolidated Limited (DSCL) Ajay S.
Shriram has been chosen President-designate, while Vice-Chairman and Managing Director of TIL Limited
Sumit Mazumder has been elected Senior Vice-President.
Foreign tourists can use credit cards to get rupees
Tourists or visitors from abroad can now use their debit or credit cards to obtain Indian rupees. The Reserve
Bank of India has decided to let authorised money changers (AMCs) to sell Indian rupees to foreign tourists /
visitors against international credit/debit cards. This follows an RBI review of the memorandum of instructions
governing money changing activities. AMCs, however, must take prompt steps to obtain reimbursement
through normal banking channels.
India Inc second in Asia in raising funds through overseas bonds
India Inc has taken second position among Asian countries in terms of funds raised through overseas bonds
in 2013 next only to China. Indian companies in January-March 2013 period were able mop up a record 16%
of the total funds raised by Asian companies. In 2012, Indian companies raised $9.8 billion through the same
route, but it was just 7.2% of the $136 billion raised by Asian companies.
Desi card RuPay gets global access
The National Payments Corporation of India (NPCI), which plans to rival Visa and MasterCard with its own
RuPay Card, has got a leg up in its plans to provide international access to future RuPay cardholders
following a tie-up with Discover Financial Services. Discover Financial Services is a banking and payments
services company which competes with payment companies such as Visa and MasterCard and owns the
card company Discover, Diners Club cards and Pulse ATM networks. Unlike Visa and MasterCard, which
partner banks to enable them issue cards with similar features. In China, Discover has partnered UnionPay,
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the largest network in China which will become available to RuPay global cardholders. Worldwide, Discover
has a network of two crore retail outlets and 9.5 lakh ATMs which accept Discover Cards.
Krishnakumar Natarajan is new Chairman of Nasscom
Mindtrees Managing Director and CEO Krishnakumar Natarajan took over as Nasscom Chairman for the
year 2013-14. Mr. Natarajan succeeds N Chandrasekaran, MD and CEO of TCS, who served as the
Chairman for the year 2012-13.
UAE's Sharjah Islamic Bank launches $500 million sukuk
Sharjah Islamic Bank launched the sale of a $500 million sharia-compliant bond, or sukuk, at a profit rate of
2.95 percent. Abu Dhabi's Al Hilal Bank, HSBC Holdings, Kuwait's Liquidity Management House, a unit of
Kuwait Finance House , and Standard Chartered Plc are mandated lead arrangers on the sukuk.
Virgin America ranked best, United ranked worst US airline
Virgin America has been named the best airline and United Airlines the worst in a survey of airline
performance in the US. The annual Airline Quality Rating (AQR) study ranked the 14 largest U.S. airlines
based on on-time arrivals, mishandled bags, consumer complaints and passengers who bought tickets but
were turned away because flights were over booked. Runner-up was JetBlue, while Air Tran, the number one
in 2011, slipped to number three. The study concluded that at the bottom of the list were SkyWest,
ExpressJet and United, the country's largest airline since it merged with Continental Airlines in 2010.
Pact signed for Rs. 5000-crore fertilizer plant in Tripura
The Tripura government, Oil and Natural Gas Corporation (ONGC) and a private company signed a tripartite
agreement to establish a huge urea fertilizer plant in the State. The State government would have a 10 per
cent stake in the Rs. 5,000 crore project which will come up in the Kumarghat area of north Tripura by 2016.
The Tripura government had long been pursuing companies to set up a fertilizer unit in the State to take
advantage of its huge gas reserves.
TCS to buy French IT firm for Rs.530 cr
Tata Consultancy Services (TCS), has announced that it had signed definitive agreements to acquire 100 per
cent equity in Alti SA, an IT services company in France. The deal, valued at 75 million euro (around Rs.530
crore), is an all-cash transaction.
Cairn India makes new oil discovery in Rajasthan block
Cairn India, has announced that it had made the 26th oil discovery in its Rajasthan block. The block
management committee had approved the exploration work programme for the RJ-ON-90/1 block on
February 14 after which Cairn India commenced drilling of its first exploration well, Raageshwari-South-1, on
February 25 located in the southern part of the block. Technical evaluations indicate about 10 metres of
gross oil column within Dharvi Dungar formation. Oil has been discovered and tested for the first time in
Dharvi Dungar sands in Raageshwari-Tukaram area, where previous discoveries were in the shallower
Thumbli sands.
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WTO cuts 2013 global trade forecast to 3.3 %

The World Trade Organization (WTO) slashed its forecast for trade growth in 2013. It cut its forecast for
global trade growth in 2013 to 3.3 per cent from 4.5 per cent and said trade grew only 2 per cent in 2012.
That was the smallest annual rise since records began in 1981 and the second weakest figure on record
after 2009, when trade shrank. WTO Director General Pascal Lamy warned that 2013 could turn out even
weaker than expected, especially because of risks from the euro crisis, and countries might try to restrict
trade further in a desperate attempt to shore up domestic growth.
IPL tickets in Chhattisgarh to be tax free
Chhattisgarh Government has decided to exempt the tickets of two IPL season-6 matches from
entertainment tax. The matches will be played at Naya Raipur on April 28 and on May 1. The cricket fans in
the State are reportedly even attempting to manage tickets even through black-marketing as the state has
never hosted any key cricket event involving international players. While on May 1, the Delhi Daredevils will
clash with Kolkata Knight Riders at the 60,000 crowd-capacity stadium at village Parsada in Naya Raipur
which is described as the second best stadium of the country in terms of facilities and sitting capacity.
Mahindra Reva in tech tie-up with Vodafone
Mahindra Reva Electric Vehicles has entered into a strategic technology partnership with Vodafone Business
Services to provide machine-to-machine (m2m) communication services in Mahindras newly-launched
electric vehiclethe Mahindra e20. The tie-up makes the Mahindra e20 a truly connected car and among
the few in the world to support telemarketing.
Tata Steel merges two group companies with self
Tata Steel Ltd. (TSL) has announced the merger with itself of two group firms, the listed Tata Metaliks Ltd.
(TML) and the unlisted Tata Metaliks Kubota Pipes Ltd. (TMKPL), a joint venture between TML and two
Japanese companies. The proposed scheme envisages the issuance of four equity shares of Rs.10 each of
TSL for every 29 of TML. TSL, along with a subsidiary, holds 50.1 per cent of TMLs equity, a company
release said. In terms of the scheme, TML will be amalgamated with TSL, followed by the dissolution of the
company without winding up.
BHEL Ranipet ties up with Mitsubishi
Boiler Auxiliaries Plant of Bharat Heavy Electricals Limited (BHEL) in Ranipet has entered into a technical tieup with Mitsubishi Heavy Engineering Industries, Japan, for manufacturing and supplying flue gas desulpherisation (FGD) system that removes sulphur dioxide from gases emitted by power stations.
Fiat ends distribution pact with Tata Motors
The cars made by Italian automobile giant Fiat in India, through its Indian subsidiary Fiat Group Automobiles
India Private Ltd. (FGAIPL), will no longer be distributed by Tata Motors. FGAIPL announced the completion
of the dissolution of the distribution agreement with Tata Motors.
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TataComm bags $20 m deal from Mott MacDonald

Tata Communications Ltd. (TCL) said it had been selected by Mott MacDonald as its telecommunications
partner for the next five years in a $20 million deal.
SBI hits international bond market to raise $1 billion
State Bank of India hit the international bond market to raise about $1 billion (Rs.5,430 crore) in a five-year
dollar-bond sale programme.
Princeling banker to push BRICS Bank forward
An influential princeling, who has headed the powerful state-run China Development Bank (CDB) for more
than a decade, has been tasked with leading Chinas planning and strategy in taking forward the BRICS
Development Bank project. Chen Yuan (68), who, as the head of the CDB for 15 years, oversaw a massive
expansion in the banks role in helping finance an infrastructure boom at home and a surge in Chinese
investments overseas, has given up his role as Governor of Chinas fifth-largest bank.
Heliconia to pick up 2.6 % stake in Kotak Bank for Rs. 1,296 crore
Heliconia Pte Ltd., an affiliate of the Government of Singapore Investment Corporation Pte Ltd (GIC) has
entered into a deal to pick up a 2.6 per cent stake in Kotak Mahindra Bank Ltd. (KMBL) for Rs. 1,296 crore.
Heliconia will subscribe to a preferential issue of 2 crore equity shares of KMBL, and this proposed
investment will be at a price of Rs. 648 per share.
eCoins launched by RSBL
RiddiSiddhi Bullion Limited (RSBL), a Mumbai-based privately-held company has launched eCoins in the
Andhra Pradesh market. eCoins is an integrated, user-friendly, fully-electronic and over-the-counter platform
for trading in gold bars, solely aimed at jewellers. The unique selling proposition of the new product was that
it came in quantities starting from as little as one gram to 50 grams, in tamper-proof packaging. It was
launched in Maharashtra in 2011 and the company now had 355 customers, with a trading volume of 11
tonnes of gold thus far.
AP third in attracting private sector investment
Andhra Pradesh ranked No. 3 in attracting private sector investment to the tune of Rs. 7 lakh crore,
constituting 9.4 per cent of the total investments in India, after Gujarat (Rs. 10 lakh crore) and Odisha (Rs. 8
lakh crore), an analysis by Associated Chambers of Commerce and Industry of India (Assocham) said.
Andhra Pradesh is closely followed by Maharashtra and Karnataka in the list of States attracting maximum
investment proposals from private sources in India. As of December, 2012, the private sector in Andhra
Pradesh accounted for over 58 per cent of the total outstanding investments worth Rs. 12 lakh crore. Other
top States include Jharkhand, Harayana and Chattisgarh with high levels of private sector investments.

Millions in Asia face starvation by 2050 due to global warming

Millions of people in Asia and Africa may face the threat of starvation by 2050 as a result of extreme
temperature globally, scientists warn. Many could become destitute in the two continents as staple foods
more than double in price by 2050 as a result of extreme temperatures, floods and droughts. A US
government-funded study of the fertile Lower Mekong basin in Asia, which includes Vietnam, Cambodia,
Thailand and Laos, states that temperatures there could rise twice as much as previously expected,
devastating food supplies for the 100 million people expected to live there by 2050.
India First Life Insurance expects to break even by 2015-16
India First Life Insurance expects to break even in 2015-16, two years ahead of the original deadline. The
company, a joint venture between Bank of Baroda, Andhra Bank and UK's Legal & General, started its
operations in 2010. Private insurer recorded a 34 per cent growth in the new business premium by collecting
Rs 1,316 crore in 2012-13 against Rs 980 crore in the previous fiscal. The company has reduced its
operating expense ratio to 16 per cent from 19 per cent. Bank of Baroda holds a 44 per cent stake in India
First, while Andhra Bank and Legal & General hold a 30 per cent and 26 per cent stake, respectively.
Reserve Bank of India starts action against ICICI Bank, HDFC Bank, Axis
Reserve Bank of India (RBI) Deputy Governor H R Khan said the central bank is initiating action against
ICICI Bank, HDFC Bank and Axis Bank in connection with allegations of money laundering by Cobrapost.
The country's three largest private banks ICICI bank, HDFC Bank and Axis Bank were named by online
portal Cobrapost for indulging in money laundering. The sting operation conducted by the portal alleged that
some bank officials had offered to launder unaccounted money by investing in insurance schemes.
Bank of America pays Mukesh Ambani Rs 1.3 cr as director pay
Indian billionaire industrialist Mukesh Ambani has got paid USD 240,000 (about Rs 1.3 crore) as director
compensation for 2012 by global banking giant Bank of America. Ambani, who heads India's leading
business conglomerate Reliance Industries group, was paid a higher compensation of USD 276,816 by the
bank in the previous year, 2011. Ambani joined Bank of America's board as an independent director in March
2011.
Industrialist RP Goenka, country's 'takeover specialist' no more
Hailing from one of the oldest business families of Kolkata, R P Goenka came to be known as the country's
'takeover specialist' who made his mark in diverse businesses, ranging from tyre to music. Born on March 1,
1930, Rama Prasad Goenka, better known as R P Goenka, was the eldest son of Keshav Prasad Goenka
and Rukmini Devi. He set up RPG Enterprises in 1979 with a total turnover of around Rs 100 crore. The
'takeover specialist' acquired one large company after another during the 80s, expanding the group's
footprint across several businesses - tyre, carbon black, transmission, pharmaceuticals, IT, power
generation, music, etc. The major companies included in his empire are CEAT, CESC, Spencer's Retail,
Saregama, KEC International, RPG Life Sciences and ICML.
8

AAI to set up high-tech R&D and training facility in Hyderabad

In a bid to develop in-house capabilities in air navigation services, the Airports Authority of India (AAI) has
tied up with a renowned American technology provider to set up a high-tech research, development and
training facility in Hyderabad. The proposed technical centre would provide comprehensive laboratory
capabilities to support AAI's daily air traffic management operations and maintenance, besides carrying out
performance analysis and R&D. The AAI and the MITRE Corporation have signed two agreements to
establish the Hyderabad centre and for transfer of technology and knowledge. Among this would be a
sophisticated technology to train air traffic controllers (ATC), called 'Human-in-the-Loop' (HITL) computer
simulation capability.
RBI to cancel licences of 26 loss-making cooperative banks
The Reserve Bank of India will shortly cancel licences of 26 loss-making cooperative banks, including 16 in
Uttar Pradesh, Deputy Governor K C Chakrabarty said. A capital of Rs 2,000 crore is required for running 16
cooperatives banks in the state and RBI may not cancel the licenses of these banks if the state government
supports them. Such cooperatives banks are not required anymore if 90 per cent of depositors' money has
been lost.
ICICI Bank to sell 11-kg pledged gold to recover loans
Country's largest private sector lender ICICI Bank will auction this month gold jewellery weighing over 11 kg,
pledged by more than 150 borrowers, who have defaulted on their payments. The auction would be
conducted by the bank branches in Uttar Pradesh, Bihar and Uttarakhand from April 18-22 for gold jewellery
deposited by about over 150 customers as collateral for their loans. At present, gold prices have hit one-year
low at Rs 28,350 per 10 grams. It is a usual practice to take gold loans by pledging jewellery with banks. But
such ornaments can be auctioned by banks after giving sufficient notice to the borrower in case of payment
defaults.
Airtel launches special international roaming packs
Bharti Airtel said its customers travelling to the US can have up to five hours of free incoming calls and make
outgoing calls for Rs 20 per minute through special international roaming packs. Apart from USA, the
company has launched international roaming packs for countries including Singapore, Malaysia, Thailand,
Indonesia, Hong Kong, Australia, Germany, UAE and UK. Airtel's postpaid customers travelling to USA can
get 300 incoming minutes free on a fixed rental of Rs 8,500. The pack has a validity of 30 days and
customers will be charged for incoming and outgoing calls at Rs 20 per minute after the free minutes are
over. Users travelling to the US will get 60 free incoming minutes on a pack of Rs 3,500 and 10 free minutes
on a pack of Rs 1,000.
Crisil lowers current fiscal growth forecast to 6%
Ratings agency Crisil has cut its FY14 growth forecast for India to six percent from the earlier 6.4 percent
citing a variety of reasons, including the high lending rates, weaker pick-up in consumption and issues
around mining and project clearances. In the Budget, Finance Minister P Chidambaram had said the
9

government was targeting a growth of 6.1-6.7 percent for the current fiscal. International rating agencies like
Standard & Poor's (Crisil's parent company) and Fitch had threatened to downgrade the country's rating to
junk on lower growth, troubles on the policy front and the high fiscal deficit and current account deficit.
CERC allows Tata Power to raise power tariffs
The national electricity regulator has allowed Tata Power to raise power tariffs to compensate for an
unexpected increase in coal cost. The Central Electricity Regulatory Commission (CERC) has asked states
that buy electricity from Tata Powers 4,000 megawatt Mundra Plant in Gujarat to form an expert panel to
decide on compensating the firm for higher cost of coal imports from Indonesia. The ruling is similar to the
regulators April 2 order allowing Adani Power to charge more for electricity produced at its Mundra plant in
Gujarat. Indonesias move to link its coal prices to international benchmark rates has led to cost increases for
Indian power companies and rendered their contract tariffs unviable.
GAIL to sell stake in China Gas Holdings
State-owned gas utility GAIL India Ltd plans to sell part of its 4.6 per cent stake in Hong Kong-listed, city gas
distribution firm, China Gas Holdings. GAIL, which had in 2005 made a strategic investment of `137 crore by
acquiring 210 million shares of China Gas, will sell part of its holding. The GAIL Board has accorded
approval to partially divest the firm's equity stake in China Gas. China Gas has exclusive rights to set up gas
distribution projects in 42 cities in China.
Cipla launches first biosimilar of 'etanercept' for rheumatic disorders
Cipla has announced the launch of the first biosimilar of 'etanercept' in India under the brand 'Etacept' for the
treatment of rheumatic disorders . Formed through a partnership alliance, the drug is manufactured by a
China-based company Shanghai CP Guojian Pharmaceutical Co, which will be marketed by Cipla. The
introduction of Etacept now signals Cipla's entry into the biologic segment offering an option to the patients
suffering from rheumatic disorders at a lower cost. Etacept is available as a lyophilized powder to be given
by subcutaneous injection.
Bugatti Veyron is the world's fastest car
Guinness has pulled a U-turn, confirming Buggati Veyron, with a top speed of 431.072 km per hour, as the
world's fastest car. Bugatti's record set back in 2010, after having its world record for fastest production car
thrown into question by a competitor and put under review by Guinness. The world record in question was a
431.072 km/h mark that Pierre Henri Raphanel set in the 1,183-hp Bugatti Veyron 16.4 Super Sport in July
2010.
Honda launches Dream Neo
Honda Motorcycle & Scooter India (HMSI) launched its most affordable motorcycle Dream Neo, with an aim
to increase share in the Indian commuter segment, priced at Rs.43,150.

10

Haryana bars ICICI Pru

The Haryana Government has barred ICICI Prudential Life Insurance for three years from doing any further
business with it or any of its departments for intentionally delaying the process of distribution of annuity to
land owners and failure to carry out commitments.
India accounts for 33% of world poor
India accounts for one-third of the world poor, people living on less than USD 1.25 (about Rs 65) per day, a
World Bank report on poverty has said. The report said that 1.2 billion people still living in extreme poverty
across the world. This despite a 59 per cent increase in the developing world population. However, a new
analysis of extreme poverty released by the World Bank shows that there are still 1.2 billion people living in
extreme poverty, and despite recent impressive progress, Sub-Saharan Africa still accounts for more than
one-third of the world's extreme poor. India contributes another third (up from 22 per cent in 1981) and China
comes next, contributing 13 per cent (down from 43 per cent in 1981).
Apply online for PF transfer, withdrawals from July 1
Over 50 million subscribers of the retirement fund body EPFO will be able to apply online for transfer and
withdrawal of their provident fund from July 1. "We have decided to set up a central clearance house which
will be operational on July 1. This will enable subscribers to apply online for settlement of the withdrawal and
transfer of funds claims," EPFO's Central Provident Fund Commissioner Anil Swarup told. Under the new
system, the onus of verifying the details of the PF account from previous employers would be on the EPFO.
At present, employees have to get their applications verified from their employers for settlement of claims.
Poorest states have highest small savings
Poorest states, with highest BPL population, have been contributing the most in nation-building. That is what
the data on small savings through post office deposits, which form part of the scheme of financing annual
plans of states, reveals. Collections from post deposits are annually to the tune of Rs 2.5 lakh crore. Among
30 states and UTs, collection from West Bengal, at around Rs 30,000 crore a year, has been the highest.
And all these deposits are credited to the National Small Savings Fund (NSSF). The gross small savings
from all states was Rs 2.5 lakh crore in 2009-10, and it went up to Rs 2.74 lakh crore in 2010-11. The
provisional figure for 2011-12 was Rs 2.21 lakh crore. These deposits are close to 3% of the GDP at current
prices.
Cabinet nod for Rs.1,083-cr HMT revival plan
The government, has approved the Rs.1,083-crore revival package for HMT, which aimed to modernise the
company and help it turned around in five years. The Cabinet Committee on Economic Affairs (CCEA) has
approved the Rs.1,083-crore revival package of HMT. The package comprises cash infusion to the tune of
Rs.450 crore and non-cash assistance of Rs.630 crore. It also aimed to hike production to 30,000 units over
five years, from the current 4,500 units.
11

FDI in services sector dips 3.5% in Apr-Jan 2012-13

Foreign direct investment (FDI) inflows into the services sector declined by 3.5 percent to USD 4.66 billion
during the April-January period, according to the Department of Industrial Policy and Promotion (DIPP). The
financial and non-financial services sector had attracted FDI worth USD 4.83 billion during the same period
in the previous year. In 2011-12, foreign investment in the services rose to USD 5.21 billion from USD 3.29
billion in 2010-11. Service sector contributes over 60 percent to India's GDP. The other sectors which have
received FDI during April-January 2012-13 include hotel and tourism (USD 3.19 billion), metallurgy (USD
1.38 billion), construction (USD 1.2 billion) and drugs (USD 1 billion). India received maximum FDI from
Mauritius (USD 8.17 billion), followed by Japan (USD 1.69 billion), Singapore (USD 1.82 billion), the
Netherlands (USD 1.51 billion) and the UK (USD 1.04 billion).
Cabinet increases DA by 8%
The Union Cabinet has approved the increasing dearness allowance (DA) by 8 per cent from the existing 72
per cent to 80 per cent, benefiting about 50 lakh employees and 30 lakh pensioners of the central
government. The hike would be effective from January 1, 2013 and the employees and pensioners will be
entitled to arrears. The decision to raise the DA will impose an additional annual burden of Rs 8,629.20 crore
on the exchequer. Meanwhile, the Cabinet has also approved one month extension to the one man
Committee probing the media reports about Walmart bribery incident. The term of Committee headed by
Justice Mukal Mudgal, former Chief Justice of Punjab and Haryana Court, has been extended from May 1,
2013 to May 31, 2013.
Microsoft most attractive employer in India
IT and software major Microsoft has emerged as India's most attractive employer for the third straight year in
2013, according to a survey by HR service firm Randstad. The company was followed by Hewlett Packard
and Google India in the second and third positions, respectively. Others in the top 10 most attractive
employer list included IBM (4th), ONGC (5th), Sony (6th), Larsen & Toubro (7th), Steel Authority of India
(8th), SBI (9th) and Tata Consultancy Services (10th).
Reliance Jio gets numbers to test 4G
The Department of Telecommunications (DoT) has allocated 10,000 numbers to Reliance Jio Infocomm
(RJI), the telecom arm of Reliance Industries, for testing 4G services in Delhi, Mumbai and Jamnagar. RJI
has been given 4,000 numbers each for Mumbai and Delhi and 2,000 numbers for testing mobile services in
Jamnagar. DoT has told RJI that during the testing period it would not charge any fee either from consumers
or other telecom operators for providing telecom services through resources that had been allocated to it for
this purpose only. The company, in its communication to the department, has said that it developed a
technology, VoLTE, in preparation of a unified licensing regime recommended by the Telecom Regulatory
Authority of India (TRAI) under which consumers will be able to get voice, messaging and video using a
single device.
12

South African Airways ties up with Jet Airways

South African Airways (SAA) has tied up with Jet Airways to operate non-stop flights between Mumbai and
Johannesburg with the African carrier assessing the Indian market to expand its presence. Under the
agreement which is already in place, Jet would code-share on SAA flights between Mumbai and
Johannesburg and beyond to Cape Town and Durban, while SAA would code-share on Jet operations
between Mumbai and Delhi, Bangalore, Hyderabad, Chennai and Thiruvananthapuram.
AirAsia India has appointed CEO
Low-cost carrier AirAsia India has appointed its chief executive officer, AirAsia group chief Tony Fernandes.
AirAsia, which is the largest low-cost airline in Asia, has formed a joint venture with Tata Sons and Telestra
Tradeplace of Arun Bhatia to launch a low-cost carrier in the domestic market. The venture received a formal
approval from the Foreign Investment Promotion Board on April 4 to set up the company in the country.
Mukesh and Anil Ambani 20th richest in world
India's leading industrialist brothers, Mukesh and Anil Ambani, have been together listed as 20th richest in
the world in the Sunday Times Rich List 2013. The Hinduja brothers, Srichand and Gopichand Hinduja,
Chairman and Co-Chairman respectively of the Hinduja Group, are 47th richest in the world with a fortune
worth 11 billion pounds in 2013 as against 9 billion pounds in 2012.
Direct Benefit Transfer will curb wastage
Prime Minister Manmohan Singh has said the Direct Benefit Transfer (DBT) scheme would not only help curb
leakages in the system but also ensure efficient delivery of subsidies to the targeted beneficiaries.
Addressing bureaucrats at the 8th Civil Services Day function in New Delhi, Dr. Singh said the government
had taken up a major initiative in setting up the Cabinet Committee on Investment (CCI) for fast-tracking
industrial and infrastructural projects. The DBT scheme now covers 121 districts. The government has drawn
up plans to launch the LPG cylinder subsidy scheme under the DBT component from July 1 in at least 45
districts.
SEBI allows 47 alternative funds to operate in India
Market regulator SEBI has allowed 47 entities to set up AIFs - newly created class of pooled-in investment
vehicles

for

real

estate,

private

equity

and

hedge

funds,

over

period

of

ten

months.

The 47 Alternative Investment Funds (AIFs) have been registered with SEBI since July. SEBI had allowed
only 12 AIF to set up shop in the country till October, and the number increased to 47. Under SEBI
guidelines, AIFs can operate broadly in three categories. The SEBI rules apply to all AIFs, including those
operating as private equity funds, real estate funds and hedge funds, among others.
SEBI closes Sahara Prime City IPO file
Over three-and-a-half years after receiving draft papers for the proposed initial public offer (IPO) of Sahara
Prime City Ltd., the Securities and Exchange Board of India (SEBI) has formally closed the file as the
13

company failed to submit clarifications sought by the market regulator. SEBI closed file on the Rs.3,450-crore
IPO proposal without any go-ahead for the public issue, after various clarifications sought from merchant
bankers for the share sale remained pending for months together. SEBI had received the draft prospectus for
the IPO on September 30, 2009, through merchant banker, Enam Securities Pvt. Ltd.
Sunil Mittal to be ICC Vice-Chairman
Bharti Enterprises Chairman and Group CEO Sunil Bharti Mittal has been appointed as Vice-Chairman of
the International Chamber of Commerce (ICC), becoming the third person from India to be appointed to this
position in the history of ICC. The ICC is one of the world's oldest global business organisations. Founded in
1919, it represents private-sector views to national governments and intergovernmental bodies around the
world.
NTPCs Sri Lanka project set to take off
Work on the power project at Sampur in Trincomalee, Sri Lanka will commence soon. The project is to be
carried out jointly by the National Thermal Power Corporation (NTPC) of India, along with the Ceylon
Electricity Board (CEB), an agreement for which was signed in 2011. About two years after the agreement
was signed, the initiative NTPCs first overseas coal-fired power project saw little progress due to various
disagreements between the two partners. NTPC Chairman and Managing Director, Arup Roy Choudhury
said that NTPC is going ahead with the proposed 2X250 MW coal based joint venture in Trincomalee. NTPC
and CEB had signed an agreement in 2011 to set up a coal-based 500 MW plant at a cost of Rs. 4,000 crore
at Sampur.
Videocon, BPCL report gas discovery in Mozambique
Videocon Industries and Bharat Petroleum Corp Ltd. (BPCL) have reported a fourth huge natural gas
discovery in an offshore Mozambique block, where they hold 10 per cent stake each. Videocon Hydrocarbon
Holdings, a wholly-owned subsidiary of Videocon Industries, and Bharat Petro Resources, a unit of BPCL,
said a new discovery had made in the offshore Area 1 of the Rovuma basin. The Orca-1 discovery well
encountered about 190 net feet (58 meters) of natural gas pay in a Paleocene fan system. U.S. energy firm
Anadarko Petroleum Corp is the operator with 36.5 per cent stake in Mozambiques offshore Area 1, which
may hold as much as 70 Trillion cubic feet of gas resources. Videocon and BPCL hold 10 per cent stake
each in the block where Japans Mitsui & Co is the second-biggest stakeholder with a 20 per cent interest.
Cabinet nod for 13 power projects worth Rs.33,000 cr
The government, has approved 13 power projects, entailing investments worth Rs.33,000 crore, which were
pending due to various reasons. Of the 20 projects reviewed by the newly appointed Cabinet Committee on
Investment (CCI), 13 projects, involving investment of about Rs.33,000 crore, have been cleared. The
projects were identified in transmission, hydro and thermal sectors where various clearances were pending
mostly with the MoEF.

14

Govt disallows IKEA from selling food items in its brand stores
The Commerce and Industry Ministry has rejected the proposals of global furniture major IKEA and Marks &
Spencer to sell food and processed items from their brand retail outlets. IKEA had sought permission for
single brand retail trading of its products, including setting up of restaurants and cafe as well as IKEA
Swedish food market. The Foreign Investment Proposal Board (FIPB) has recommended that IKEA can have
a restaurant/cafe in accordance with their global model but cannot engage in retailing of food items.
Reliance Jio ties up with Bharti Airtel
Reliance Jio Infocomm, the broadband subsidiary of Mukesh Ambani-led Reliance Industries Ltd. (RIL)
signed an indefeasible right to use (IRU) agreement with Bharti Airtel to use the latters i2i submarine cable
for its 4G service for an unspecified amount. Bhartis i2i connects India to Singapore, and the cable consists
of eight fibre pairs using DWDM (dense wavelength division multiplexing), capable of supporting multiple
terabits of capacity per fibre pair. Its landing points are in Chennai and Tuas in Singapore.
Mini Indian rupee futures launched in Dubai
The Dubai Gold and Commodities Exchange (DGCX), in a bid to further expand the reach of its Indian rupee
product offering, has launched a mini Indian rupee futures contract (DINRM). The innovative new contract is
priced at Rs.200,000 per lot compared to Rs.20 lakh per lot for the existing regular DGCX Indian rupee
contract.
Mamata sets up Rs. 500-crore fund for chit fund losers
The West Bengal government will set up a Rs. 500-crore relief fund to help out the depositors who have
lost everything after the Saradha Groups collective investment schemes went bust. The money would be
given to those recommended by the commission of inquiry that had already been set up. Chief Minister
Mamata Banerjee announced an additional 10 per cent tax on tobacco and tobacco products to raise money
for the fund.
Archana Bhargava is new CMD of United Bank
United Bank of India (UBI), said Archana Bhargava, Executive Director, Canara Bank, has been appointed
as Chairman & Managing Director of the bank with effect from the date of her taking over the charge till
February 20, 2015, or until further orders, whichever is earlier.
New CEO for Sistema
Sistema Shyam TeleServices (SSTL), which operates under MTS brand in India, has said Dmitry Shukov
would take over as the companys new Chief Executive Officer from June 1, replacing Vsevolod Rozanov.
Tech Mahindra acquires Swedish lab
IT and telecom solutions provider Tech Mahindra has acquired a Sweden-based Type Approval Lab for
undisclosed amount which will help it strengthen lab presence in Europe, Middle East and Africa (EMEA)
15

regions. The lab was part of Sony Mobile Communications internal test function and now will help Tech
Mahindra establish its first European test lab with multi-million dollar infrastructure.
Jet Airways announces Rs 2,058 cr alliance with Etihad Airways
Jet Airways has announced a strategic alliance with Etihad Airways, saying it would sell 24 per cent stake to
the Abu Dhabi-based carrier for about Rs 2,058 crore, marking the first investment by a foreign carrier in an
Indian airline since the change in FDI policy. Jet promoter Naresh Goyal and Etihad President and CEO
James Hogan, has announced the strategic equity alliance in Abu Dhabi under which the Indian private
carrier would sell 27.26 million shares in a preferential offer to Etihad at Rs 754.74 apiece.
ED books Saradha for money laundering
The Enforcement Directorate (ED) has registered a money laundering case against scam-hit Saradha group
of Kolkata to probe allegations of financial irregularities by hapless depositors into the firm. The ED has
registered a regular case under the provisions of the Prevention of Money Laundering Act (PMLA) at its
Guwahati office. The Assam Police had earlier registered an FIR against the group after allegations were
made by investors that they were duped of their hard-earned money. The ED has re-registered the case with
charges of money laundering. The dubious group is under the scanner of a host of agencies like the Stock
and Exchange Board of India (SEBI), Income Tax department and investigation units under the Ministry of
Corporate Affairs.
United Bank plans branches in BRIC, South Africa
Listed public sector bank, United Bank of India (UBI) would apply for licences to the Reserve Bank of India
for opening overseas branches in South Africa, and BRIC countries, the banks new Chairperson and MD
Archana Bhargava said.
Russian firm shows interest to develop SEZ in Odisha
A Russian company has shown keen interest in setting up an exclusive special economic zone (SEZ) in
Odisha for producing titanium. The proposal by the Russian company, Technokhim, revolves around setting
up an Integrated Chemical and Metallurgical Complex (ICMC) at the core and other SEZ industries around it.
The project entails an investment of around $2.1 billion, and is likely to be located at Chhatrapur, Odisha.
The Ministry of External Affairs had forwarded the SEZ proposal to the Department of Industrial Policy and
Promotion (DIPP). The project would use advanced Russian technologies to produce various titanium
products.
China signs deal to buy 60 Airbus planes
China has signed a deal with Airbus to purchase 60 planes, as French President Francois Hollande began a
two-day visit to China. A large entourage of French businessmen is accompanying Hollande, who is the first
leader of a major western country to visit China since President Xi Jinping was named to his post.

16

Bharti SoftBank to invest $ 7 mn in messaging app 'hike'

Bharti SoftBank (BSB) said it will invest $ 7 million (about Rs 37 crore) in its messaging application 'hike' that
recently crossed five million users. BSB, a joint-venture between Bharti Enterprises and SoftBank
Corporation, focused on the mobile-internet.
India, China sign pact for promoting handicraft
Export Promotion Council for Handicrafts (EPCH) said it has inked a pact with China Council for the
Promotion of International Trade (CCPIT) to explore possibilities of enhancing exports of Indian handicrafts
to the neighbouring nation. A Memorandum of Understanding (MoU) was signed between EPCH and CCPIT,
which is the largest institution for the promotion of Foreign Trade in China to explore the possibilities of
enhancing for exports of handicraft from India. China is one of the largest economies in the world and due to
the increasing incomes, the Chinese people have more inclination of the handmade and hand-crafted
products as compared to the machine made Chinese handicrafts.
LPG subsidy directly in bank accounts from October 1
The government plans to provide subsidy to 14 crore LPG subscribers directly in their bank accounts from
October 1, using the Aadhaar payment platform. The government, has decided to launch "direct benefit
transfer (DBT) for LPG throughout the country tentatively from October 1". This (transfer of LPG subsidy)
would require a much larger number of beneficiaries to be covered for opening of bank accounts and linked
to Aadhaar and banks have been asked to get ready for the launch. A consumer will have to get his or her
bank account seeded with Aadhaar number for getting the LPG subsidy. The annual subsidy per consumer is
estimated at Rs 4,000. The supply of subsidised LPG cylinder has been capped at 9 cylinders per year for a
consumer. Under a pilot project for LPG subsidy transfer, 20 districts in the country will be covered by May
15. The Finance Ministry has asked the public sector banks to speed up the process of linking accounts with
Aadhaar.
e-payment made compulsory for tax of Rs.1 lakh and above
The Commercial Taxes Department of Puducherry has decided to make e-payment mandatory from May 1
for all traders and industries paying tax of Rs.1 lakh and more. Others paid tax through cheques and demand
drafts. It took at least 5 to 10 days for the realisation of cheques and demand drafts. E-payment would help
the government to collect the tax within a day and traders need not visit banks to make the payment. Its
aimed at avoiding delay in realisation of cheques, DDs.
Biocon to launch psoriasis drug novel biologic in July
Biotechnology major Biocon plans to launch in July its novel biologic drug Itolizumab branded as 'Alzumab' to
be used for the treatment of chronic plaque psoriasis in the country. Psoriasis is an inflammatory autoimmune skin disease that follows a typical relapsing and remitting course with the disease affecting two to
three per cent of the total population in the country. The company had received marketing authorisation for
Itolizumab from the Drugs Controller General of India (DCGI) in January, 2013.
17

JSW Steel puts Rs 35k cr West Bengal steel project on hold

JSW Steel has put on hold plans to set up a 10 million tonnes steel plant in West Bengal as it has not been
able to secure long-term iron ore supplies for the Rs 35,000 crore project. JSW is working with the Centre
and state government to secure iron ore mining lease, he said, adding, long-term visibility of iron ore is
required to begin construction of the plant. The West Bengal project of JSW, first announced in 2007, has
been getting delayed for various reasons. This included a land acquisition row with the state government
after Mamata Banerjee-led government took charge in 2011. The issue has now been resolved and land
acquisition has been completed.
India Inc expects RBI to cut interest rate by 0.50%
India Inc expects the Reserve Bank to cut interest rate by at least 0.5 per cent in its annual monetary policy
on May 3 to boost sagging growth which slipped to decades low of 5 per cent in 2012-13. RBI Governor D
Subbarao will announce the annual monetary policy for 2013-14 on May 3. The central bank has already
reduced key interest rate by 1 per cent (100 bps) during the course of 2012-13 and pressure is mounting on
it to further cut rates in the annual policy for the current fiscal.
Govt sets up committee to boost exports from MSMEs
Worried over widening trade gap, the government has set up a six-member inter-ministerial committee under
the chairmanship of Finance Secretary R S Gujral that will suggest measures to boost MSME exports. Micro,
Small and Medium Enterprises (MSME) sector contributes about 40 percent in the country's total exports and
over 8 percent to India's Gross Domestic Product (GDP). India's exports declined by about 2 percent to USD
300.5 billion in 2012-13, way below the USD 360 billion targeted at the beginning of the year, due to the
global demand slowdown. The other members of the committee include Commerce Secretary S R Rao,
Revenue Secretary Sumit Bose, MSME Secretary Madhav Lal, Financial Services Secretary Rajiv takru and
Chief Economic Adviser Raghuram Rajan.
Govt hikes import tariff value of gold to USD 472/10 grams
Government has raised the tariff value of gold to USD 472 per 10 grams on account of a volatile price trend
in global markets. Tariff value is the base price on which the customs duty is determined to prevent under
invoicing. It was only 10 days back that tariff value of gold was changed bringing it down to USD 449 per 10
grams due to weak global prices. However, the import tariff value of silver has been kept unchanged at USD
762 per kg. The notification in this regard was issued by the Central Board of Excise and Customs (CBEC).
In Singapore, gold prices firmed up to USD 1,462 per ounce.
Samsung pips Nokia to become largest mobile phone seller
Samsung has piped Nokia to become the largest seller of mobile phones in the country's major markets.
Samsung Electronics Co sold a record 69.4 million smartphones in the first quarter, boosting its market share
to an all-time high of 33.1 percent, data from research firm Strategy analysts have showed. Nokia's shares
briefly fell 12.7 percent to a year-low of 2.30 euros.
18

India's GDP likely to improve to 5.7% in 2013

Indicating that India's declining growth has bottomed out, International Monetary Fund (IMF) said the
country's GDP is likely to improve to 5.7 per cent in 2013 and further to 6.2 per cent a year after. For Asia as
a whole the economic growth is likely to be 5.7 per cent this calender and 6 per cent in 2013, IMF said in its
'Regional Economic Outlook: Asia and Pacific' report. As per IMF's projections, India's real economic growth
was 11.2 per cent in 2010, 7.7 per cent in 2011 and 4 per cent in the last calender. The Washington
headquartered multilateral agency said medium-term growth prospects for China, India, and other emerging
Asia economies have recently become focus of economic debates in the region.
MCX-SX to launch trading in F&O on SX40 from May 15
MCX Stock Exchange (MCX-SX) has said it will introduce trading in derivative contracts on its flagship index
'SX40'. MCX-SX will introduce trading in futures and options (F&O) on its index SX40 from May 15, 2013.
SX40, launched in February, is a free float-based index of 40 large cap and liquid stocks. Trading in F&O
contracts on SX40 would be available between 0915 hours and 1530 rpt 1530 hours from Monday to Friday.
FIPB refers Yes Banks proposal to CCEA
The Foreign Investment Promotion Board (FIPB) has referred Yes Banks Rs.2,650-crore proposal to the
Cabinet Committee on Economic Affairs (CCEA) for its consideration and approval and cleared two other
foreign direct investment (FDI) proposals envisaging a capital inflow worth Rs.89.33 crore. The Mumbaibased bank has got board approval to raise up to $500 million through GDRs or the QIP route. Yes Banks
proposal to the CCEA for consideration as it envisaged an FDI inflow of Rs.2,650 crore and was beyond the
Boards investment approval limit of Rs.1,200 crore.
$500 bn private investment must for 8% growth in 12th Plan
India will not be able to achieve the targeted 8 per cent annual average economic growth in 12th Plan (201217) if private sector does not invest half of the envisaged $ one trillion dollar in infrastructure during the
period, Plan panel Deputy Chairman Montek Singh Ahluwalia said.
Huawei to set up R&D centre in Bangalore
Telecom gear maker Huawei will set up a new research and development (R&D) centre in Bangalore with an
investment of $150 million (about Rs 813 crore) in the second half of 2013. Huawei is also evaluating to shift
its Indian global network operation centre (GNOC) to this new facility.
No wealth tax on farm land
Finance Minister P. Chidambaram has allayed apprehensions over the imposition of wealth tax on
agricultural land within urban area limits to provide a big relief to farmers, especially in Haryana and Punjab.
He relaxed the tax benefit-related residency norms for foreign investors routing funds through countries such
as Mauritius and lowered the withholding tax rate to five per cent from 20 per cent on interest payments on
investments by non-residents in long-term infrastructure bonds and corporate debts.
19

TRC will be accepted as proof of residency

Setting at rest the confusion that had been created over the taxability of investment through countries such
as Mauritius and Cyprus, Finance Minister P. Chidambaram, has asserted that the tax residency certificates
(TRCs) issued by a foreign government would be accepted as proof of residency for the purposes of availing
of benefits under tax treaties. The TRC alone would render it difficult for foreign investors routing funds
through low-tax countries such as Mauritius, Cyprus and Singapore to avail of tax benefits under the Double
Taxation Avoidance Agreements (DTAA).
China pips US to become world's biggest PC market
China has become the world's biggest market for personal computers with industry specialists saying it
received 69 million shipments of PCs in 2012. In the process, China trounced the US which was the biggest
PC market till 2011. China has already become the biggest internet market in the world with more than 500
million users.
Indian economy to grow at 6.1% FY'14
World Bank has scaled down India's growth forecast to 6.1 per cent for the current fiscal from 7 per cent
projected six months ago. The decline in the growth forecast is largely due to the decline in agriculture sector
which is expected to grow at 2 per cent during 2013-14 against the previous estimate of 2.7 per cent despite
normal monsoon projection. As per the latest India Development Update of the World Bank, Indian economy
would grow by 6.1 per cent in 2013-14 on account of robust domestic demand, strong savings and
investment rate. Growth projections for 2013-14 has been arrived at by taking into account present internal
and external factors.
Buy property over Rs 50 lakh, pay 1% of value as tax
Even if a buyer of a flat or land does not have Tax Deduction and Collection Account Number (TAN), he will
have to deduct 1% of the gross amount he pays to the seller and deposit it with the revenue department. The
onus of deducting and depositing 1% of the gross value of the property lies with the buyer. This provision will
apply for a property value of over Rs 50 lakh, with effect from June 1, 2013. The seller can claim 1% tax paid
by the buyer from the revenue department. While depositing the amount, he has to mention the Permanent
Account Number (PAN) of the seller. The seller, while filing his I-T return, can take credit for the amount.
Reliance Jio, five others join to set up under-sea cable system
Telecom carriers Vodafone Group of the U.K., Telekom Malaysia from Malaysia, Omantel from Oman,
Etisalat from the UAE, Reliance Jio Infocomm and Dialog Axiata from Sri Lanka have formed a consortium to
set up an 8,000-km-long Bay of Bengal Gateway (BBG) submarine cable system to link Malaysia and
Singapore to the Middle East, with connections reaching out to India (Mumbai and Chennai) and Sri Lanka.
The cable system is designed to provide upgradable and transmission facilities by having 100 Gbps
capability. This cable system is expected to carry commercial traffic by the end of 2014.
20

OVL raises $800 m to fund asset buys in Azerbaijan

ONGC Videsh Limited (OVL), said it had raised $800 million to part-finance its recent acquisition of interest
in an oilfield in Azerbaijan. OVL floated a five-year $300 million unsecured bond and a 10-year note for $500
million. The notes, which were unconditionally and irrevocably guaranteed by ONGC, were oversubscribed
with an order book aggregating close to $3 billion from investor accounts. The oilfield, which is located in the
South Caspian Sea, about 95 km off the coast of Azerbaijan, is the largest oil and gas field complex in
Azerbaijan and one of the largest producing oil fields in the world.
RCom in roaming tie-up with Aircel
Reliance Communications Ltd. (RCom) has tied up with Aircel for intra-circle roaming (ICR) to provide
hassle-free service to its customers. The company has also unveiled a 2G GSM network expansion plan
which would bring down the capital expenditure involved in laying telecom infrastructure. Rcom said it would
expand its pan-India network significantly through strategic 2G GSM ICR agreements with other existing
operators.
Stone laid for Jindal Steels power plant in Jharkhand
President Pranab Mukherjee, has laid the foundation for Jindal Steel and Powers (JSPL) 1,320 -MW thermal
power plant at Godda district in Jharkhand. The captive power plant, with an estimated cost of Rs.8,500
crore, will use coal from the Jitpur coal block and water from the Sunder Dam, Gumani and Jalhara river. It
will be the first mega power project in Santhal Pargana region in the states eastern region, and is expected
to provide direct and indirect employment to 20,000 people.
World Bank projects 6.1% growth for India this fiscal
The World Bank,scaled down its projection on Indias GDP (gross domestic product) growth to 6.1 per cent
for 2013-14 from 7 per cent estimated six months ago.
Hindustan Unilever deal largest Indian inbound M&A on record
Unilever Plc's USD 5.4 billion bid for a 23 per cent stake in Hindustan Unilever is the largest Asia Pacific
cross border inbound merger and acquisition (M&A) deal so far this year and is the fifth largest India Inbound
M&A transaction on record till date. According to global deal tracking firm Dealogic,Unilever is the the fifth
largest India Inbound M&A transaction on record, the largest being, Vodafone's 67 per cent stake acquisition
in the Hutchison-Essar Ltd (HEL) from Hong Kong- based Hutchison Group in 2007.
TCS beats ONGC to become most-valued company
Software major Tata Consultancy Services became the country's most valued firm with a market
capitalisation of Rs 2.77 lakh crore. Shares of TCS ended 0.72 per cent lower, while ONGC was down 1.55
per cent. ITC with a market capitalisation of Rs 2,61,353 crore was at third place, followed by RIL (Rs
2,59,245 crore) and Coal India (Rs 2,00,828 crore).
21

Cash pile of major PSUs at Rs 1.62 lakh cr

India's 17 major PSUs (public sector undertakings) including Coal India, ONGC, NMDC and OIL had over Rs
1.62 lakh crore in cash reserves during 2012-13. Among these central public sector enterprises (CPSEs),
Coal India Ltd (CIL) had the maximum cash and bank balance at Rs 43,776 crore, followed by ONGC (Rs
22,450 crore), NMDC (Rs 17,230 crore) and NTPC (Rs 16,185 crore). The 17 major CPSEs had a cash and
bank balance of Rs 1,62,338 crore. Cash and bank balance of OIL was Rs 11,770 crore while that of SAIL
was Rs 13,207 crore.
Vaishali gets Best Metro Station award
The Vaishali Metro Station on the Blue Line was adjudged the Best Metro Station at Delhi Metros 19th
Foundation Day Celebrations along with 48 employees who were awarded for their outstanding
contributions. Among the awardees were Anuranjan, the chief driving inspector of the Jahangirpuri-HUDA
City Centre Line who received the Metro person of the year award. The Metro woman of the year award
which has been instituted in 2013 went to senior station controller of Inderlok station, Shaifali Chowdhary.
Ministry of Urban Development Secretary and DMRC Chairman Dr. Sudhir Krishna presented the awards
and said the organisation has set new benchmarks in both its construction and operation related activities.
Bharti Airtel to sell 5 % stake to Qatar Foundation for $1.26 b
Bharti Airtel, said it would sell 5 per cent stake in the company to Doha-based Qatar Foundation Endowment
(QFE) for $1.26 billion to strengthen its capital structure, and fund future growth strategies. As per the
agreement, QFE will subscribe to 199,870,006 (199.87 million) new shares of Bharti at a price of Rs.340 per
share amounting to a total consideration of $1.26 billion (Rs.6,796 crore).
RBI tightens screws on gold loans
Amid a steep fall in gold prices recently and the resultant risks to the system, the Reserve Bank of India
(RBI), further tightened screws on gold loans by banks, restricting them to finance import of the precious
metal only for gold jewellery exporters. The RBI also restricted lending against gold coins up to 50 grams
only. The apex bank also said detailed guidelines on the same will be issued by the end of the month.
BHEL joins select club of companies
The Haridwar unit of BHEL has dispatched the 660 MW Super Critical LP Turbine module for Barh Power
project in Bihar. Executive Director of BHEL, Prakash Chand, said that with the manufacture of this system,
the BHEL had joined the select club of companies which had the manufacturing technology for TurbineGenerator sets based on Super Critical parameters. It may be noted that BHEL has in the recent past
manufactured and delivered other components of 660 MW Super Critical Turbine like HP and LP Pedestals
based on state of art technology for the Barh Project.

22

e-District project
The Odisha government has announced to roll out e-district project in 130 tahasils which would also be
connected with sub-registrar offices with OSWAN (Odisha State Wide Area Network). The e-District project,
copies of residence certificate, income certificate, solvency certificate, caste certificate and legal heir
certificate are provided online, was earlier piloted in Mayurbhanj and Ganjam districts.
RBI includes urban areas in lead bank scheme
Stating that there are millions of unbanked people even in urban areas, the Reserve Bank in a significant
move has asked banks to bring all districts in metropolitan areas under the lead bank scheme (LBS) fold.
The lead bank scheme, launched way back in 1969, is an integrated mechanism to extend banking services
to the doorsteps of consumers, especially the poor. The move is part of increasing the scope of its financial
inclusion drive to urban areas on one hand and helping the government realise its efforts to plug the
loopholes in subsidy deliveries by transferring all the benefits directly to the bank accounts of the target
people. Announcing the annual monetary policy, wherein it reduced the rate at which it lends to banks (repo
rate) by a token 25 basis points to 7.25 per cent, RBI Governor D Subbarao said, the purpose of the LBS
extension is to bring all the unbanked urban areas under the banking fold.
Govt aims to bring down CAD to 2.5% by 12th Plan-end
The government aims to bring down current account deficit (CAD) to about 2.5 per cent of the GDP by March
2017, Planning Commission Deputy Chairman Montek Singh Ahluwalia said. Current Account Deficit, which
from 4 per cent of GDP going down to about 2.5 per cent by the end of 12th Plan (2012-17). CAD represents
the difference between inflows and outflows of foreign currency. It had touched a record high of 6.7 per cent
in the December quarter of last fiscal year. The CAD in 2012-13 fiscal is likely to be around 5 per cent of the
GDP.
E-filing of I-T returns must for income over Rs 5 lakh
The Central Board of Direct Taxes (CBDT) has widened the scope of e-filing of income tax (I-T ) returns. And
one of the changes introduced through a recent notification impacts salaried taxpayers. E-filing of I-T returns
is now mandatory for individuals, including salaried taxpayers, earning more than Rs 5 lakh taxable income
during the financial year ended March 31, 2013. Prior to this notification, e-filing was mandatory for
individuals having a taxable income of more than Rs 10 lakh. According to sources in the ministry of finance,
nearly 18 lakh individual taxpayers fall in the Rs 5-10 lakh tax slab, all of whom will now have to file their I-T
returns online. Salaried employees have to file their I-T returns for the income earned in FY13 by July 31,
2013.
RBI panel favours differential tax regime for exporters
Seeking to boost exports and bridge the ballooning current account deficit, a Reserve Bank of India (RBI)
committee, has suggested a slew of measures such as introduction of differential tax regime, and increasing
the scope of interest subsidy scheme for exporters. The Reserve Bank had constituted a technical committee
on services/facilities for the exporters under the Chairmanship of RBI Executive Director G. Padmanabhan to
23

suggest ways for improving financial support from alternative sources. Among others, the committee has
made recommendations relating to review of Gold Card Scheme for extension of export credit to exporters,
appropriate inclusion of export finance under the priority sector lending, and raising of foreign currency loans
on pool basis for extension of export credit to exporters.
RBI includes urban areas in lead bank scheme
Stating that there are millions of unbanked people even in urban areas, the Reserve Bank in a significant
move has asked banks to bring all districts in metropolitan areas under the lead bank scheme (LBS) fold.
The lead bank scheme, launched way back in 1969, is an integrated mechanism to extend banking services
to the doorsteps of consumers, especially the poor. The move is part of increasing the scope of its financial
inclusion drive to urban areas on one hand and helping the government realise its efforts to plug the
loopholes in subsidy deliveries by transferring all the benefits directly to the bank accounts of the target
people.
Mahyco allowed to sell Bt cotton seeds
After cancelling its licence to sell 12 varieties of Bt cotton seeds in 2012, the State government has allowed
Maharashtra Hybrid Seeds Company (Mahyco) to sell the seeds in the coming kharif season, subject to
certain conditions. Mahyco had given an affidavit that the company would supply 10 lakh packets of Bt cotton
seeds of the popular MRC 7351 variety. The company would submit a detailed production programme and
ensure proper distribution of the seeds. It would also ensure that the seeds were sold at Rs. 930 per packet
for this variety.
RIL surpasses ITC to reclaim third most valued company status
Reliance Industries Ltd (RIL) overtook FMCG major ITC to become the country's third most valued company
after TCS and ONGC. At the end of the trade, RIL commanded market value of Rs 2,65,814 crore. This is
about Rs 7,978 crore more than ITC's m-cap of Rs 2,57,836 crore. Shares of RIL ended 2.53 per cent
higher at Rs 821.50, while ITC's fell by 1.35 per cent to Rs 326.30 on the BSE. TCS with a market
capitalisation of Rs 2,86,703 crore was at the top of the chart, followed by ONGC (Rs 2,72,663 crore), RIL,
ITC and Coal India (Rs 1,99,249 crore).
Replace profit-sharing by coal companies with royalty payment
A Parliamentary panel has recommended removal of the provision of 26 per cent profit sharing by coal and
lignite miners with project-affected people and replacing it with a system based on royalty payments by the
firms concerned. The amendment was proposed by the Coal Ministry to the Standing Committee, headed by
Trinamool Congress MP Kalyan Banerjee. The Standing Committee on Coal and Steel , gave its go-ahead to
other crucial proposal of the new Mines Bill of sharing an amount equivalent to royalty by non-coal and nonlignite miners with project-affected persons.

24

RBI panel moots India Bill Payment System

The Reserve Bank of India (RBI) panel has mooted India Bill Payment System (IBPS), a GIRO-based
electronic bill payment system for payment of dues of essential services, insurance premia, utility payments,
taxes, university fees, examination fees and school fees. GIRO payment is a credit push transaction initiated
by the payer and may involve the presence of three banks (collecting bank, payer bank and the payee bank).
Bill paying public/customers can access any payment channel through banks/non-bank entity under the
proposed GIRO system. The RBI has released the report of the committee set up to study the feasibility of
implementation of the GIRO-based payment system in India under the chairmanship of G. Padmanabhan.
FDI proposals worth Rs.263 crore cleared
The government, has approved 17 foreign direct investment (FDI) proposals based on the recommendations
of the Foreign Investment Promotion Board (FIPB). Of these, however, only two proposals are of any
significance and account for the lions share of the total envisaged inflow worth about Rs.262.56 crore.
Mumbai-based Sanofi-Synthelabo (India) Limited, an existing pharma company, has been permitted to
acquire another pharma company through internal accruals.
The transaction entails a foreign exchange inflow worth Rs.180 crore. The other major proposal pertains to
the telecom sector in which Augere Wireless Broadband (I) Pvt. Ltd. has received the governments nod to
capitalise the balance amount of the spectrum fee earlier paid to the Department of Telecommunications
(DoT).
Tea Board Chairman elected to International Tea Committee
The International Tea Committee (ITC), a global tea body, which held its annual general meeting (AGM) in
London on May 2, has flagged supply constraints and labour productivity as some of the emerging areas of
concern for the global tea industry. At the AGM, it also elected M. G. V. K. Bhanu, Chairman, Tea Board of
India, as its Vice-Chairman with Norman Kelly of the U.K. being elected the Chairman. It was learnt that Mr.
Bhanus name was proposed by the U.S. and supported by China and Sri Lanka.
SBI to consider merger of associates banks in July-August
State Bank of India (SBI) Countrys largest lender said it will consider merger of five associate banks in the
second quarter of the fiscal. SBI did first ever amalgamation of its associate State Bank of Saurashtra in
2008 followed by State Bank of Indore in August 2010. The country's largest lender has five associate banks
-- State Bank of Bikaner and Jaipur, State Bank of Travancore, State Bank of Patiala, State Bank of Mysore
and State Bank of Hyderabad.
Brazilian diplomat elected WTO chief
In a big boost to Brazil's global clout and a major victory for BRICS group, Roberto Azevedo was chosen as
the next director-general of the World Trade Organization (WTO). With his election, the Brazilian diplomat
becomes the first Latin American to lead the group since its creation in 1995. Azevedo will succeed Pascal
Lamy, the current head of WTO who goes out after two four-year terms.
25

Women's Bank to begin operations in November

The blueprint of the country's first Women's Bank is ready and the venture is likely to start off with six
branches across the country by November. With an initial outlay of Rs 1,000 crore, the bank will open with
six branches- one each in the four metro cities, while a fifth would be in central India and the sixth in the
north east. The expert committee that was set up to finalise the plan for the bank has submitted its report.
The proposal of a Women's Bank was mooted by Chidambaram as part of Budget 2013-14. Finance ministry
had set up a six member expert committee under former Canara Bank chairman MBN Rao to finalise the
road map for setting up the bank.
DLF Pramerica Life Insurance launches savings-cum protection plan Sahaj Suraksha
Private insurer DLF Pramerica Life Insurance (DPLI) has launched Sahaj Suraksha, a new savings cum
protection plan. Sahaj Suraksha is designed to help customers meet essential expenses and to help them
continue with their lifestyle without making any compromises by supplementing their existing retirement
savings. The policy can be bought even at the age of 55 or 60 which will mature when the policyholder turns
75, the maximum maturity age. DPLI is a joint venture between real estate company DLF and Prudential
International Insurance Holdings (PIIH), a fully owned subsidiary of Prudential Financial (PFI), a financial
services leader headquartered in the US.
Italian gas giant discovers new field in Pakistan
Italy's oil and gas company Eni said it has made a new gas discovery in southern Pakistan that should ease
the acute gas shortage for industry and transport in the South Asian country. The Sukhpur Block, located 270
km north of the port city of Karachi in Sindh province, was found by Eni in a joint-venture with Pakistan
Petroleum Ltd and Kuwait's Foreign Petroleum Exploration Company. The reservoir has "excellent" potential,
and in exploratory drilling produced gas up to a rate of 33 million standard cubic feet per day.
Axis Bank gets NPS trustee bank mandate
Private sector lender Axis Bank will replace state-run Bank of India (BoI) as the trustee bank for the National
Pension System (NPS). According to Pension Fund Regulatory and Development Authority (PFRDA), Axis
Bank has been "appointed as the new NPS Trustee Bank with effect from July 1, 2013 in place of Bank of
India (current Trustee Bank)". The government introduced the National Pension System (NPS) in 2004 and
at present it covers all new entrants to Central Government services (excluding Armed Forces) and State
Government services. PFRDA had appointed Bank of India as Trustee Bank for NPS for a period of 5 years.
It is understood that Axis Bank will be appointed for a period of two years. However, at the discretion of
PFRDA/NPS Trust, the contract may be renewed annually for another maximum tenure of three years.
Wipro invests $30 million in US data firm
IT bellwether Wipro invested USD 30 million (Rs.162 crore) for a strategic equity stake in Opera Solutions
LLC, a leading privately held US-based big data science firm. The Jersey City-headquartered Opera has the
largest group of scientists, specialised in machine learning, which is applied to generate big data flows and
create predictive patterns or signals.
26

Diageo names Indian origin Ivan Menezes as CEO

British spirits major Diageo has named Ivan Menezes, who is of Indian origin, as its new Chief Executive
Officer (CEO) with effect from July 1, 2013. Mr Menezes is currently the Chief Operating Officer (COO) at
Diageo and is largely credited with having convinced Vijay Mallya to sell a majority stake in United Spirits Ltd.
(USL) to Diageo in a deal valued at $2 billion (Rs. 11,166.5 crore). He has been with Diageo for 13 years and
will be groomed by current CEO Paul Walsh.
KVB ties up with Lulu International, GCC Exchange
Karur Vysya Bank (KVB) has entered into a tie-up with Lulu International Exchange, Abu Dhabi, and GCC
Exchange House, Dubai, for remitting money electronically to India. Under the speed remittance
arrangement, proceeds will be electronically credited to beneficiaries account with the bank on the same day
the Exchange House remits funds to their accounts with KVB. KVB has the capability to credit the proceeds
to beneficiaries accounts with other banks in India also through the NEFT mode.
RBI to launch plastic currency notes soon
Reserve Bank Governor D Subbarao said the central bank will soon introduce on a pilot basis plastic
currency notes as they have longer shelf-life. He emphasised that plastic note is environment friendly
because it has longer shelf-life than the paper notes. Australia and Singapore have introduced plastic
currencies. With a view to elongating life of bank notes, particularly of lower denominations, it was decided
by the RBI and government to introduce one billion pieces of Rs 10 notes in polymer/plastic on a trial basis in
Kochi, Mysore, Jaipur, Bhubaneswar and Shimla.
Aadhaar to help eradicate poverty
Describing Aadhaar card as one of the best example of integration of technology for social welfare use, the
World Bank President, Jim Yong Kim, believes that this massive effort by the Indian Government would help
in achieving his goal of poverty eradication by 2030. Nandan Nilekani is the Chairman of the Unique
Identification Authority of India. Aadhaar is a 12-digit number which the Unique Identification Authority of
India (UIDAI) is issuing for all residents in India. The UIDAI is storing basic demographic and biometric
information - photograph, ten fingerprints and eye scan - of each individual, being issued the number, in a
central database.
Cabinet nod for two new major ports in West Bengal, Andhra Pradesh
The Union government has approved a proposal to set up two major ports in West Bengal and Andhra
Pradesh at an investment of about Rs.15,820 crore. The new port in West Bengal, which will have a capacity
of 54 million tonnes per annum (mtpa), requires an investment of around Rs.7,820 crore. The other new port
in Andhra Pradesh, whose projected capacity is around 50 mtpa, would entail an investment of about
Rs.8,000 crore. The new ports will be notified as major ports under the Indian Ports Act, 1908. Major ports
come under the Central Government, while minor ports are operated by State governments as well as by the
private sector. There are at present 12 major ports Kolkata-Halida, Paradip, Visakhapatnam, Ennore,
Chennai, V O Chidambaranar (formerly Tuticorin), Kochi, New Mangalore, Mormugao, Mumbai, Jawaharlal
Nehru (JNPT) and Kandla.
27

DoT revives BSNL-MTNL merger plan

The Department of Telecommunications (DoT) has revived its proposal to merge loss-making MTNL and
Bharat Sanchar Nigam Ltd. (BSNL). Merger of BSNL and MTNL into a national telecommunication services
company may be considered for strategic and operational synergies, the DoT has said in a note to the
Group of Ministers (GOM), headed by Finance Minister P. Chidambaram. According to the DoT, MTNL and
BSNL face tough competition from pan-India operators as the latter is in a position to extend benefits to
enterprise and business customers, whereas BSNL and MTNL are not able to offer a similar dispensation.
Cabinet approves policy for developing aviation hubs
Government has gave its nod to a wide-ranging policy to create international and regional aviation hubs in
the country to cater to the growing passenger traffic. As creation of a hub requires establishment of facilities
like immigration, customs, provisions for visa-on-arrival and foreign exchange involving various ministries, an
inter- ministerial committee would be created to facilitate the setting up of such hubs in major cities. An
aviation hub is an airport which is used as an intermediate point to transfer air travellers from their original
destination to their final destination. In aviation parlance, this is called 'hub-and-spoke' operation.
Reliance gets nod to set up cement plant in Himachal
Himachal Pradesh government has decided to grant licence to Reliance Industries for setting up a cement
plant in the Chopal tehsil of apple-producing upper Shimla district. The cement plant would be based on
limestone, shale and quartzite and was given a massive land mass of 2500 hectares.
2.5 % import duty on select metals
The Central Government has imposed 2.5 per cent import duty on various types of scraps melting steel,
stainless steel and aluminium scraps, and has withdrawn exemption of special additional customs duty on
brass scrap. The measures were taken through two different notifications issued by the Finance Ministry. It
did not give reasons for making changes except saying that it is in public interest. In exercise of the powers
conferred by sub-section (1) of section 25 of the Customs Act, 1962, the Central Government, being satisfied
that it is necessary in the public interest so to do.
IDBI cuts retail deposit rates
IDBI Bank, has cut its fixed deposit rate offering in two maturities by up to 0.50 percentage points. The bank
cut the offering on the 91 days to less than six months deposit by 0.50 percentage points to 7.25 per cent
while the same for six months to 269 days product now goes down by 0.15 percentage points to 8.50 per
cent. The revisions are effective from May 13. The bank also rationalised the additional interest payable to
senior citizens at 0.50 percentage points over the normal for deposits of over six months to up to 20 years.
Tata Power signs pact with Clean Energy and IFC
Tata Power, through its subsidiary Tata Power International Pte Ltd., has signed an agreement with Clean
Energy Invest AS (Clean Energy) and IFC Infra Ventures (IFC) for developing hydro projects in Georgia at an
investment of $700 million for sale of power primarily to Turkey. The hydro projects will be of an aggregate
28

capacity of 400 MW, and developed in three phases. The first phase of 185 MW is expected to be completed
before mid-2016. Tata Power and Clean Energy will hold 40 per cent stake each. The power generated by
these projects is planned to be vended primarily to Turkey.
IFFCO in tie up with Brazilian firm
Indian Farmers Fertiliser Co-operative (IFFCO), said it had inked a long-term agreement with Brazilian
mining company Vale SA for supply of rock phosphate, used in manufacturing phosphatic soil nutrients.
Emission at Sterlite within permissible limit
An expert committee appointed by the National Green Tribunal (NGT) has found the emissions from all the
stacks at the Sterlites copper unit at Tuticorin to be within the permissible limit prescribed by the Central
Pollution Control Board when the plant was in normal operation. The committee is headed by Prof. P. S. T.
Sai from IIT Madras. The committee is given the brief to measure emissions, and examine the working
conditions of machinery at the copper unit of Sterlite Industries at Tuticorin.
Goldman Sachs invests Rs 110 cr in BPL Medical Technologies
Global investment banking major Goldman Sachs has invested Rs 110 crore in medical devices company
BPL Medical Technologies. The investment will be used to further expand the company's medical device
business and is subject to customary approvals. Established in 1963, BPL Ltd started manufacturing
precision electrical instrumentation and diversified into medical devices in 1967. Goldman Sachs is an active
investor in India and since 2006, the firm has deployed more than USD 2 billion in the country.
IT watchdog probing breach in ATM heist
The government's cyber watchdog is investigating how the computer systems of two companies that are part
of the India's vast IT services industry were breached in a global ATM heist that saw $45 million stolen from
two banks in the Middle East. EnStage Inc, which operates from Bangalore, and ElectraCard Services,
based in Pune, processed card payments for the two banks that were hit in the theft.
IDBI Bank set to lose battle for Stock Holding Corporation of India
IDBI Bank is set to lose the battle to take over Stock Holding Corporation of India (SHCIL), the country's top
custodial and depository service provider, amid opposition mounted by IFCI. The finance ministry, which had
to approve the bid launched in November 2012, is of the view that IDBI Bank does not have its own capital or
retained earnings to effect the merger. As a result, it would need over Rs 1,700 crore from the government.
Alternatively, a share swap arrangement proposed by the Mumbai-headquartered public sector lender would
result in a dilution of government holding from 71.7% to 62.8%, an arrangement that the finance ministry is
not comfortable with.
RINL plans to set up 3 mtpa steel plant in Jharkhand
Rashtriya Ispat Nigam Ltd (RINL) plans to set up a three million tonnes per annum (mtpa) steel plant in
Jharkhand involving an estimated Rs 16,500 crore investment. The state-run steel manufacturer's Chairman
29

and Managing Director A P Choudhary has already communicated the intention of the company for setting up
the facility to state government at a recent meeting with Jharkhand's Chief Secretary. RINL has applied for
the state's prolific Ghatkuri mine, located at the West Singhbhum district, is spread over 2,600 acres. This
mine is considered to be one of the largest iron ore mines in the country and has an estimated reserves of
600 million tonnes.
Reserve Bank places restriction on gold imports by banks
The Reserve Bank of India (RBI), has imposed restrictions on banks to import gold with immediate effect to
curb the widening current account deficit (CAD). To moderate the demand for gold for domestic use, it has
been decided to restrict the import of gold on consignment basis by banks, only to meet the genuine needs
of exporters of gold jewellery. The Working Group on Gold, under the chairmanship of K. U. B. Rao, had
recommended aligning gold import regulations with rest of the imports for creating a level-playing field
between gold imports and other imports. Nominated banks and agencies were permitted to import gold on
loan basis, suppliers credit / buyers credit basis, consignment basis as also on unfixed price basis.
Eight public sector banks ink MoU with IL&FS
IL&FS Infra Asset Management Limited (IAML), an asset management company (AMC) promoted by IL&FS
Financial Services Limited to manage the IL&FS Infrastructure Debt Fund (IIDF), has inked a memorandum
of understanding (MoU) with eight public sector banks (PSBs) for developing take-out finance to facilitate the
countrys infrastructure development. The PSBs which have joined hands with IL&FS for the purpose are:
Allahabad Bank, Bank of India, Canara Bank, Central Bank of India, Indian Bank, Indian Overseas Bank,
Oriental Bank of Commerce and UCO Bank.
Nasscom launches Product Council
The National Association of Software and Services Companies (Nasscom), has announced the launch of its
Product Council. The council will aim at increasing software product revenues from the current level of $2.2
billion to $10 billion by 2020. Earlier, in March 2013, an expert committee constituted by the industry body,
and headed by Infosys founder N. R. Narayana Murthy, had identified software products, mobility and the
domestic Indian market as thrust areas for the industry.
Punj Lloyd wins Rs 730-cr order from ONGC
Leading infrastructure firm Punj Lloyd said it has bagged an order worth Rs 730 crore from ONGC for
executing a sub-sea pipeline project at Bombay High oil field. Punj Lloyd has bagged the B-127 Cluster
Pipeline Project in Mumbai from Oil and Natural Gas Corporation Ltd (ONGC), emerging as the lowest bidder
for an amount of Rs 730 crore for the price bid which opened on April 25, 2013.
JLR opens new test centre in Dubai
Tata Motors-owned Jaguar Land Rover (JLR), said it had opened a new engineering test centre in Dubai to
conduct extreme hot weather vehicle research, development and testing.
30

RBI takes banks to laundry over money

The (RBI) Reserve Bank of India has directed banks to do away with stapling of money packets and issue
only clean currency notes to the public. The objective of the RBI's Clean Note Policy is to give the citizens
good quality currency notes and coins, while the soiled notes are withdrawn out of circulation. RBI will soon
run a trial pilot project for plastic or polymer currency notes with a view to increase the shelf-life of notes.
Indian economy to grow at 6% in current fiscal
Indian economy is projected to grow by 6 per cent in the current fiscal while growth is expected to be steady
in most of the Asia Pacific economies, global rating agency Standard & Poor's said. It, however, cautioned
that a weaker global risk appetite and a poor monsoon would pull down growth to around 5 per cent in 201314 fiscal. S&P's growth projection is lower than the government's estimate of 6.1-6.7 per cent. It is, however,
higher than RBI's projection of 5.7 per cent. For 2014-15 and 2015-16 fiscal, S&P projected the economic
growth to pick up at 6.7 per cent and 7 per cent respectively.
SEBI begins repayment process in Sahara case
In the Sahara case involving over Rs.24,000 crore raised through various illegalities, the Securities and
Exchange Board of India (SEBI) has begun the process of refund to individual investors who have been
verified by the regulator. The money is being refunded only in those cases where SEBI has not found any
multiplicity during its verification process. Refund for others will have to wait till the next direction from the
Supreme Court, which is likely to hear the case on July 17. The refunds are being made from Rs.5,120 crore
that has been deposited by the Sahara group, which claims to have already returned close to Rs.20,000
crore to the bondholders of two Sahara firms directly.
Ranbaxy fined $500 m for flawed generics
Ranbaxy, one of Indias largest pharmaceutical companies, has agreed to pay $500 million fines levied by
U.S. authorities for selling adulterated drugs and lying to federal regulators in a case that is part of an
ongoing crackdown on the quality of generic drugs flowing into the U.S.
India unveils rotavirus vaccine
In an important breakthrough, Indian scientists have successfully developed a low-cost vaccine that has
proved to be effective in preventing the deadly diarrhoea-causing rotavirus which is responsible for the
deaths of over 1.6 lakh children under the age of five in the country annually. Vaccine producer Bharat
Biotech is likely to launch the vaccine Rotavac in the first quarter of 2014 in the market for around Rs50-55
per dose much cheaper than other rotavirus vaccines. Currently, foreign pharma majors GlaxoSmithKlines
Rotarix and Mercks Rota Teq are available for around Rs2,000 per dose. Once launched commercially,
many developing countries would be able to include this affordable vaccine in their vaccination programs.
Krishna M Ella, Chairman of Bharat Biotech, said.

31

New Pension Scheme subscribers earn double digit return in 2012-13

Subscribers of National Pension System (NPS) regulated by Pension Fund Regulatory and Development
Authority (PFRDA) earned double digit returns of as much as 14.19 per cent during 2012-13. The pension
scheme for other than government employee with investment focus on corporate debt generated return of
14.19 per cent while investment in government debt earned 13.52 per cent. Besides, Swavlamban scheme
generated a return of 13.40 per cent. Pension scheme for Central Government earned a return of 2.39 per
cent while the scheme for State Government generated 13 per cent. The NPS, which was introduced by the
Central Government in January 2004 for its new entrants and subsequently extended to the private sector in
May 2009, has accumulated a corpus of Rs 33,000 crore contributed by 50 lakhs subscribers, it said.It is not
only the cheapest retirement product but also as the highest returns generating scheme.
RBI inflation bonds for attracting household savings on June 4
The Reserve Bank has announced it will launch inflation-linked bonds every month, starting June 4, to attract
household savings of up to Rs15,000 crore this fiscal so as to discourage investments in gold. RBI, in
consultation with Government of India, has decided to launch Inflation Indexed Bonds (IIBs). The first tranche
of the IIBs2013-14 for Rs1,000-2,000 crore will be issued on June 4, that the maturity period of these bonds
will be 10 years. The total issue size will be Rs12,000-15,000 crore in 2013-14.
FinMin ratifies 8.5% interest on PF deposits for 2012-13
The Finance Ministry has approved payment of 8.5 per cent rate interest for 2012-13, up from 8.25 per cent
in the previous fiscal, benefiting over 5 crore EPFO subscribers. Finance Ministry has notified 8.5 per cent
interest rate for 2012-13. It will be implemented with immediate effect, EPFO's Central Provident Fund
Commissioner Anil Swarup told. Employees Provident Fund Organisation's (EPFO) apex decision making
body, the Central Board of Trustee (CBT), on February 25 had decided to pay 8.5 per cent rate of interest to
subscribers for 2012-13.
CCEA to take up gas pricing issue
With the Cabinet Secretariat returning the proposal of the Petroleum Ministry for raising the domestic natural
gas prices from the present $4.2 per million metric British thermal unit (mmBtu) to almost double arguing that
A. K. Antony-led Empowered Group of Ministers (EGoM) was not empowered to take such a decision, the
Government, indicated that the matter would more likely to be put up for consideration of the Cabinet
Committee on Economic Affairs (CCEA). The present EGoM was different from the EGoM led by former
Finance Minister Pranab Mukherjee which had fixed the $4.2 per mmBtu price for KG-D6 gas in 2007.
Mittu Chandilya is India CEO of AirAsia
AirAsia, has named Chennai-born Mittu Chandilya as the Chief Executive Officer (CEO) of its Indian
operations. AirAsia India (Private) Ltd., a joint venture between Air Asia, Tata Sons and Telstra, will start a low
cost airline in India by the year-end with Chennai as its hub. Mr. Chandilya will assume office effective June
1, 2013.
32

Tata Comm to delist from NYSE

Loss-making Tata Communications Ltd. has decided to delist its American Depository Shares from the New
York Stock Exchange (NYSE), and terminate its American Depositary Receipts (ADR) programme, citing very
low trading volume among other reasons. The company said it would concentrate all trading of its ordinary
shares on the BSE and NSE in India. Holders of the companys ADRs will have until at least August 31, 2013
to decide whether to retain their interest in the ordinary shares of the company. At any time before August 13,
ADR holders may surrender their ADRs in exchange of the underlying ordinary shares of Tata
Communications. After August 14, the depository will sell the ordinary shares underlying any ADRs that have
not been surrendered.
Lafarge to divest 14 % stake in Indian arm
French cement major Lafarge has announced plans to raise 200 million euros (Rs. 1,400 crore) from Baring
Private Equity Asia by selling a 14 per cent stake in its Indian subsidiary. Lafarge has signed an agreement
to raise 200 million euros through capital increase subscribed by Baring Private Equity Asia, and
representing a 14 per cent minority stake in its Indian subsidiary, Lafarge India.
Eureka Forbes to acquire majority stake in Lux
Eureka Forbes, a part of the Shapoorji Pallionji group, has entered into an agreement with Switzerlandbased Lux International to acquire majority stake in Lux. Lux International is one of the worlds oldest direct
sales companies. It was founded in 1901, and was subsequently acquired from the Electrolux Group,
Sweden, by the von der Becke family in 1999. Eureka Forbes is a pioneer in direct selling in India, and one
of the largest direct sales organisations in Asia.
Oriental Bank cuts fixed deposit rates
Oriental Bank of Commerce (OBC) slashed fixed deposit rates by up to 1 percentage point on select
maturities. The announcement comes on the heels of Reserve Bank of India (RBI) cutting key policy rate by
0.25 percentage points earlier this month.
Tribunal directs cement firms to deposit Rs.630 cr
The Competition Appellate Tribunal (COMPAT) ordered 10 cement producers, including UltraTech, Ambuja
and ACC, and Cement Manufacturers Association (CMA) to deposit Rs.630 crore as it hears their appeal
against a record amount of penalty imposed by the Competition Commission of India (CCI) last year. The
amount that COMPAT asked some of the biggest cement manufacturers and their lobby group CMA to cough
up within four weeks works out to 10 per cent of the Rs.6,307 crore fine that the anti-trust body CCI had fixed
for alleged price fixing.
S&P warns of rating downgrade
Standard & Poors (S&P) again threatening to downgrade the Indias sovereign rating to junk status if the
government failed to keep pace with the global rating agencys expectation on reforms and containment of
the twin deficits. More shocking was the fact that even as the government was looking forward to an upgrade
33

following S&P representatives discussions with Finance Ministry officials last month, the rating agency not
only reaffirmed Indias sovereign rating at the lowest investment grade BBB- with a negative outlook but
also warned of at least a one-in-three likelihood of a downgrade within the next 12 months. Significantly, a
downgrade from BBB- would mean a scale-down to speculative grade or junk status which renders all
overseas borrowings by corporates and other entities costlier.
IOB crossed Rs.3.60-lakh-crore mark
Informing that the Indian Overseas Bank had crossed Rs.3.60-lakh-crore business till March 31 last, the
banks Executive Director A.D.M. Chavali asserted that the IOB would continue to strive hard for the uplift of
the disadvantaged and deserving entrepreneurs.
U.S. clears shale gas export to India
Opening up the prospects of export of shale gas to energy-starved India, the U.S. has granted conditional
authorisation to export domestically-produced liquefied natural gas (LNG) to countries that do not have a free
trade agreement (FTA) with it.
Great Eastern Energy wins 25 % stake in ONGCs CBM block
Great Eastern Energy Corporation Ltd. (GEECL) said it had won a 25 per cent stake in Oil and Natural Gas
Corporations (ONGC) Raniganj coal-bed methane (CBM) block in West Bengal.
iGATE sacks Phaneesh Murthy
iGATE Corporation, late announced the sacking of its President and CEO Phaneesh Murthy for violating
company policy by failing to report a relationship he had with a fellow employee. A statement issued by the
companys board from its headquarters at Fremont, California, said the employee had also filed a complaint
alleging sexual harassment by Mr. Murthy, who faced a similar charge a decade ago while at Infosys.
U.S. panel accuses Apple of dodging billions in taxes
Apple, the top U.S. computer and smart phone manufacturer, used a complex web of offshore entities to
avoid billions in taxes, a Senate panel has alleged. The electronics giants rootless subsidiaries had just one
purpose: to funnel much of the companys global profits and dodge billions of dollars in U.S. tax obligations,
according to the report by the Permanent Subcommittee on Investigations.
SEBI tightens algorithmic trading norms
Tightening the norms for algorithmic trading, the Securities and Exchange Board of India (SEBI) made it
mandatory for the users to have their systems audited every six months, and increased penalties on errant
stock brokers. Algorithmic trading or algo in market parlance refers to orders generated at a super-fast
speed by use of advanced mathematical models that involve automated execution of trade. It is mostly used
by large institutional investors. It has raised concerns that algo exposes small investors, and the market
itself, to possible systemic risks.
34

Oil marketing firms under CCI scanner for price fixing

The Competition Commission of India (CCI)has started investigation into alleged cartelisation by oil
marketing companies in fixing petrol prices. The Director-General, the investigation arm of the CCI, is
probing the issue. This move follows the Petroleum Ministry clarifying that it is not responsible for pricing of
petrol since it is deregulated.
Google slashes business app rates for Indian SMBs
Google India has reduced the prices of its online business applications for small and medium businesses
(SMBs), even as it looks to stem growing competition from players such as Zoho Corp, potentially sparking a
price war between Google, Salesforce and other players. The Internet search giant has effected a 45 per
cent price reduction in its Google Apps for Business, which include solutions such as Google Drive, Docs,
Sheets and Slides. This move comes a few months after the company killed its free version of the software
suite for organisations with up to 10 employees.
Immigration bill retains clause banning client site placement of H1-B workers
The killer provision of ban on client site placement for H1-B workers, which may prove to be detrimental to
the interests of major Indian IT companies, remains in place despite a last-minute deal reached between key
Senators on certain provisions of the immigration bill. Continued presence of such a problematic provision in
the bill, which was passed by a key Senate panel industry sources said, would not only badly hit Indian IT
companies, but also disrupt operational capabilities of a large number of key American companies as well.
FinMin to release Rs.1 lakh cr oil subsidy
Following the intervention of Prime Minister Manmohan Singh, the Finance Ministry has been pushed to
release nearly Rs.1 lakh crore in petroleum subsidy for 2012-13 for the three oil marketing companies
(OMCs) with a caveat that the Petroleum Ministry would shift to export parity price (EPP) for pricing of
petroleum products. This move is likely to save Rs.18,000 crore in subsidy outgo.
Gold import tariff value cut further
Taking cognizance of the high volatility in gold prices with a downward bias in global markets, the
government reduced the import tariff value of the yellow metal to $440 per 10 grams from $ 466 per 10
grams fixed a week ago.
Indian goods will also be duty-free at airports
In a bid to promote Brand India, the government allowed sale of goods manufactured in India, sans excise
duty, to incoming and outgoing international passengers and crew at duty-free shops (DFSs) at airports.
Directions have also been given to specify the procedure for removal of goods from the factory, without
payment of excise duty, to godowns or retail outlets of DFSs. Till now the DFSs located at arrival halls of
international airports have been selling duty-free imported goods. Indigenous goods are also sold but not
exempted from duty. Following representations for duty-free sale of India-made goods both during arrival and
departure, to ensure parity with imported goods as also promote Brand India, the government held
35

discussions with stakeholders and arrived at the decision. Now, a passenger arriving from abroad can buy
either duty-free imported goods or duty-free indigenous goods within his overall permissible baggage
allowance.
IOC, Ceylon Petroleum set to form JV
Indian Oil Corporation (IOC) and Ceylon Petroleum Corporation (CPC) are set to form a joint venture (JV) for
taking up various initiatives in the oil and gas sector, including supply of LNG to Sri Lanka by Petronet LNG
Limited (PLL) to feed power plants in that country.
Reliance Industries finds significant gas discovery at KG-D6 block
Reliance Industries Ltd (RIL) and its partners BP and NIKO have announced a significant gas and
condensate discovery in the KG D6 block off the eastern coast of India. The discovery, named D-55, has
been notified to the government and the management committee of the block. This discovery is expected to
add to the hydrocarbon resources in the KG D6 block. RIL is the operator of KG D6 with 60 per cent equity.
BP has a 30 per cent share and NIKO the remaining 10 per cent.
Court gives conditional nod for United Spirits share sale to Diageo
The Karnataka High Court granted conditional permission to United Breweries (Holdings) Ltd. (UBHL) to sell
1.36 crore shares of United Spirits Ltd. (USL) to Diageo Plc as part of the USL-Diageo deal.
Nissan to recall over 22,000 Micra, Sunny cars in India
Japanese car giant Nissan will recall 22,188 units of its small car Micra and sedan Sunny in the domestic
market due to faulty braking system, as part of a global exercise to rectify the problem. The companys
wholly-owned subsidiary Nissan Motor India will recall the vehicles, which were produced between June,
2012, and March, 2013.
Gamesa inks pact with China Light
Gamesa has signed two agreements for the supply of wind turbine generators with a total capacity of 130
MW to China Light & Power India and 100 MW to Greenko Wind Project. Gamesa will install 50 G97-2 MW
WTGs (100 MW in total) at two 50 MW wind farms located in Karnataka and Andhra Pradesh. Under another
contract with CLP India, Gamesa will supply, install and commission wind turbine generators with a total
capacity of 130 MW at the Jath wind farm being developed by Gamesa in the Sangli district, Maharashtra.
Toyota to recall 1,000 Corolla Altis cars in India
Japanese car major Toyota said it had initiated a recall campaign in India for the diesel variant of its sedan,
the Corolla Altis, due to a faulty driveshaft. The company, in an emailed response, said about 1,000 units
would be inspected in this campaign.

36

Gulf Oil to de-merge lubricants division into separate listed entity

Hinduja Group company, Gulf Oil Corporation has decided, in principle, to de-merge its lubricants division
into a separate listed entity. The decision comes in the light of a recommendation made by a committee of
directors constituted to look into various options for de-risking and restructuring the operations.
OECD lowers India growth estimate to 5.3 % for 2013
The Organisation for Economic Co-operation and Development (OECD) scaled down Indias growth estimate
to 5.3 per cent for 2013 from 5.9 per cent, and cautioned that structural bottlenecks could further constrain
investment and growth potential. The latest report said the growth should gradually recover in 2013 as efforts
to speed up the approval of large investment projects and the partial deregulation of foreign direct investment
took effect. It further said that with inflation projected to decline, the Reserve Bank of India could ease
monetary policy provided the government stuck to its fiscal consolidation plans. Talking about Indias
neighbour China, the OECD forecast that its economy would grow 7.8 per cent this year, down from a
previous estimate of 8.5 per cent. It also noted that until around 2020, China is set to have the highest
growth rate among major countries, but could be then surpassed by India. China, the OECD report said,
would likely go past the United States as the worlds largest economy in the next few years, and India had
probably recently surpassed Japan to become the third largest. Looking ahead, it said India was likely to
improve growth to 6.7 per cent next year, after having logged a decades low of 3.8 per cent in 2012. It said
the global economy would grow at 3.1 per cent in 2013, and accelerate further to 4 per cent in 2014. The
U.S. is projected to expand 1.9 per cent this year, and then accelerate to 2.8 per cent in 2014.
TCS lands Rs.1,100-cr India Post deal
Tata Consultancy Services (TCS) said it had bagged a six-year contract from the Department of Posts (DoP)
worth over Rs.1,100 crore. The end-to-end IT modernisation programme will equip India Post with modern
technologies and systems to enable it to provide services to customers in an effective manner. The scope of
the project, dubbed India Post 2012, includes developing and supporting mail, finance and accounts, HR,
and customer interaction management solutions for all channels, including Rural ICT platform. Under the
deal, Tata Consultancy Services will also manage data migration, infrastructure, service level agreement
(SLA), call centre and centralised 24x7 service desk operation for DoP.
U.S. fines Total $398 m
French oil giant Total has been fined $398.2 million under U.S. foreign corruption laws to resolve charges it
bribed officials in Iran to secure oil and gas concessions. The French oil giant was fined $245.2 million by the
Department of Justice for violations of the Foreign Corrupt Practices Act (FCPA), while the Securities and
Exchange Commission penalised it another $153 million in disgorgement and interest in the case.
RBI tightens loan restructuring norms
Worried over rising non-performing assets (NPAs), the Reserve Bank of India has tightened rules for
restructuring of most types of loans in line with global practices. As per the latest RBI notification,
provisioning on the newly restructured account has been raised to 5 per cent from June 1 from 2 per cent
37

now. However, for the old restructured account it will be done in a phased manner. The RBI also said that
existing regulatory forbearance would no longer be available from April 1, 2015. As per existing guidelines,
an account after restructuring is not classified as NPA. However, as per the new norms, restructured account
would be treated as NPA.
Tata Steel, SAIL better positions in world steel rankings
Tata Steel and SAIL have bettered their rankings in list of top 25 global producers of the metal in 2012 to
stand at 11th and 24th positions, respectively, according to data prepared by World Steel Association (WSA).
With 23 MT production, Tata Steel positioned itself in the 11th rank along with Chinese steel maker
Shandong Group in 2012. In 2011, Tata Steel had secured the 12th rank with a production of 23.8 MT.
Meanwhile, world's steel production rose to 1,547 MT in 2012 from 1,536 MT in 2011. NRI billionaire L N
Mittal-led ArcelorMittal was the largest producer of the metal at 93.6 MT in 2012, down from 97.2 MT. Nippon
Steel and Sumitomo Metal Coporation, the entity which was merged between the two Japanese majors in
October 2012, grabbed the second position replacing Hebei Group. Baosteel and Posco retained their fourth
and fifth positions, respectively.
India's fiscal deficit down at 4.89% on higher revenues
Helped by higher revenue mop up, India's fiscal deficit for 2012-13 worked out to be at 4.89 per cent of GDP,
down from revised estimate of 5.2 per cent. The government had budgeted revenue realisation for 2012-13
fiscal at Rs 10.38 lakh crore. Committed to fiscal prudence, the government in the Budget had proposed to
lower fiscal deficit to 4.8 per cent of GDP in 2013-14 and reduce it gradually to 3 per cent by 2016-17.
ICVL shortlists five overseas properties for acquisition
SAIL Chairman C. S. Verma addressing apress conference in Kolkata. International Coal Ventures Pvt. Ltd.
(ICVL), the joint venture of five public sector companies, has shortlisted five properties for a possible
acquisition, ICVL chief C. S. Verma said. ICVL was a special purpose vehicle formed with contribution from
Steel Authority of India, Coal India, NTPC, Rashtriya Ispat Nigam and NMDC with the objective of pooling the
resources of the companies for acquiring coal assets abroad.
$1.78 billion rise in foreign exchange reserves
Indias foreign exchange reserves rose by $1.78 billion to $289.67 billion during the week ended June 7 on
account of a healthy increase in currency assets. Total reserves had slid by $4.18 billion to $287.9 billion in
the previous week, the Reserve Bank of India said.
IndiGo introduces daily non-stop flights between Mumbai and Muscat
IndiGo airlines has introduced new daily non-stop flights connecting Oman's capital Muscat to Mumbai. The
service that started is expected to strengthen the airline's presence in the Gulf, where it caters to a large
number of Indians. At present, IndiGo operates over 17 flights between India and the Gulf.

38

Sebi finalizing new anti-money laundering guidelines

Regulator Sebi is finalising new anti-money laundering guidelines covering entities such as brokers and
mutual funds to put in place stronger checks against possible cleansing of funds through capital markets.
The guidelines, expected to be ready within a few weeks, will replace Sebi's existing AML/CFT (Anti Money
Laundering and Combating the Financing of Terrorism) standards, which first came into effect about 10 years
ago and saw the last major amendments in late 2010.
List of Indians in tax havens
There are 612 Indians on the list exposed by the International Consortium of Investigative Journalists for
offshore investments and secret financial transactions. The ICIJ has now developed a global database of
such companies and individuals. These databases were parts of two larger separated databases that had
been fed for nearly30 years by two companies: Singapore-based Portcullis TrustNet (PTN), and
Commonwealth Trust Limited (CTL), based in the British Virgin Islands (BVI). The data were obtained by the
International Consortium of Investigative Journalists, which chose The Investigative Unit at La Nacion to
process it and to develop the interactive application of the most ambitious cross-border investigative project
in history.
Cabinet nod for 5 % stake sale in NLC
The Cabinet Committee on Economic Affairs (CCEA), has approved disinvestment of 5 per cent of the
Centres equity stake in Neyveli Lignite Corporation (NLC) through the OFS (Offer For Sale) route in
accordance with Securities and Exchange Board of India (SEBI) regulations. The Department of
Disinvestment (DoD) had moved the CCEA seeking to offload over 7.8 crore shares, or 5 per cent of the
Centres holding in the Tamil Nadu-based integrated mining-cum-power generating company through OFS.
At current market prices, the stake sale in NLC is expected to fetch about Rs.466 crore to the exchequer and
also enable compliance of SEBIs norm stipulating 10 per cent minimum public holding in public sector
undertakings (PSUs).
FIIs put in bids worth Rs.39,000 cr to buy bonds
Foreign institutional investors (FIIs) put in bids worth over Rs.39,000 crore ($6.7 billion) to buy government
bonds, with a 93 per cent subscription in the largest-ever Securities and Exchange Board of India (SEBI)conducted auction for such securities. FIIs had made a net outflow of over Rs.21,000 crore from the debt
securities, after a net inflow of close to Rs.25,000 crore in the first five months of 2013. As against the grant
of investment limits to FIIs in government debt securities at Rs.42,022 crore ($7.15 billion), the bids received
from FIIs totalled Rs.39,171 crore ($6.7 billion).
Centre to offer open cast mines to boost coal output
The Government, has proposed to offer seven open cast mines of about 25 million tonnes capacity to mine
developer-cum-operators (MDOs) this year-end to increase coal production. Bedsides this, 14 blocks for
power, and three for mining had been put on offer recently under the government dispensation route, and
allocation of these blocks would be completed shortly. The development followed the governments repeated
39

announcements to make policy for mines allotment transparent. A draft Bill Coal Regulatory Authority was
ready, and would be put up for Cabinets consideration soon. A Group of Ministers (GoM) had discussed the
draft Bill and had forwarded the final draft to the Cabinet for approval. The Coal Regulatory Authority would
ensure transparency in pricing, quality and supply of coal.
Reliance Capital suspends sale of gold
Reliance Capital, said it had decided to suspend sale of gold in physical form, including supply of gold coins
for sale through India Post, and also as an investment product, across all its businesses and subsidiaries.
Reliance Gold Fund is having an assets under management (AUM) of around Rs.3,000 crore. Reliance
Money is the largest distributor of gold coins through its tie-up with India Post. In addition, it said, Reliance
Capitals Commercial Finance Division had decided to suspend financing against gold as a security. Further,
Reliance Capital Asset Management (RCAM), a part of Reliance Capital, had decided to suspend new
subscriptions in Reliance Gold Savings Fund.
Morgan Stanley gets OK to buy remaining joint venture stake
Morgan Stanley is getting regulatory approval to buy the 35 percent stake of a joint venture with Citigroup
that it doesn't already own for $ 4.7 billion. The bank said that gaining full ownership of Morgan Stanley
Smith Barney Holdings LLC, which operates under the name Morgan Stanley Wealth Management, is one of
its key strategic priorities. Morgan Stanley's Wealth Management Group and Citigroup Inc.'s Smith Barney
merged in 2009 during the recession.
GDP growth likely to be between 6-6.5% in FY14
The country's economic growth is expected to be in the 6-6.5 per cent range in 2013-14, while wholesale
price index inflation may be above 7 per cent, according to CII survey. The government had projected that
the GDP growth in the current fiscal would improve to 6.1-6.7 per cent from 5 per cent in 2012-13. While the
wholesale price (WPI) based inflation fell to over three-year low of 4.89 per cent in April, retail inflation was
still high at 9.39 per cent in April 2013.
British Indian businessman buys Austrian bank
British Indian businessman and investor Sanjeev Kanoria has acquired the domestic banking unit of Austrian
bank Hypo Alpe Adria for around USD 85.5 million. The nationalised bank agreed to sell Hypo Alpe Adria
Bank AG, the unit which operates in the southern Austrian province of Carinthia, to Anadi Financial Holdings,
the Klagenfurt-based lender said. London-based Kanoria, 49, is the brother of Hemant Kanoria, chairman of
Indian group SREI Infrastructure Finance Limited, which had been named by the Austrian media as a
potential buyer of the bank.
China gets its first Boeing Dreamliner
China Southern Airlines has become the first Chinese passenger carrier to induct a Boeing 787 Dreamliner a

move

aimed

at

improving

the

loading

capacity

on

the

company's

international

routes.

The first Dreamliner landed at Baiyun International Airport in the south China city of Guangzhou. The 22840

seat aircraft will help improve the loading capacity on the company's international routes as well as the
service quality. Chinese airlines have ordered eight Dreamliners and signed deals to buy a total of 100 Airbus
320-series planes for USD 8.85 billion. China Southern is the only airline operating the long-haul aircraft
Boeing 787 and Airbus 380 models.
RBI warns about high return investments
The Reserve Bank of India has warned retail investors against investing in instruments and schemes of
companies including deposits with non-banking finance companies (NBFCs) that offer high interest rates.
According to the RBI, the maximum interest rate that an NBFC can pay to a depositor should not exceed
12.5 per cent. The central bank alters the interest rates from time to time taking into account the prevailing
macroeconomic environment.
All decks cleared for Leo Puri to head UTI AMC
Domestic financial institutions, shareholders of UTI Asset Management Company (AMC) who earlier
opposed the candidature of McKinsey veteran Leo Puri as the new chief of the AMC have agreed to his
selection after the revised advertisement for the position dropped the requirement of MBA degree or
chartered accountant as a qualification. The first advertisement issued by executive search firm Egon
Zehnder had stipulated that the candidate should be an MBA or a chartered accountant. However, Leo Puri
who was shortlisted earlier did not have these qualifications. State Bank of India, LIC, Punjab National Bank
and Bank of Baroda hold 18.5 per cent stake each in UTI AMC. The remaining 26 per cent is held by US
investment management firm T-Rowe Price.
Govt hikes import tariff value of gold
The Government has raised the import tariff value of gold to $459 per 10 grams, while it has been slashed at
$737 per kg for silver imports. Tariff value is the base price on which the customs duty is determined to
prevent under-invoicing.In May 2013, the tariff value of gold was at $440 per 10 grams and silver at $761 per
kg. The notification in this regard has been issued by the Central Board of Excise and Customs (CBEC).
Indias gold import in April-June period is expected to touch a record level at 300-400 tonnes, as against 153
tonnes in the year-ago period, according to the World Gold Council (WGC) estimate.
IndiGo allowed to import 28 A320 aircraft
IndiGo, India's biggest airline by local market share, said the country's civil aviation ministry has allowed it to
import 28 Airbus A320 aircraft in 2013 and 2014. Unlisted IndiGo has placed orders for aircraft worth more
than $15 billion with Airbus.
India's share in global investment to double by 2030
India's share in global investments expected to almost double by 2030. No other country except China will be
investing more than India globally," says the latest edition of World Banks Global Development Horizons
(GDH) report. Among the developing countries, China and India are expected to be the largest global
investors. By the mid-2020, India will be one of the economies with the highest ratios of working to non41

working population. This, jointly with its large population and growing incomes, are the key explanations of
why India will become a powerhouse in global savings and investment.
RBI gives more time to set up banks
Issuing a fresh set of clarifications on new banking licences, the Reserve Bank has announced that inprinciple approval for setting up of new banks will now be valid for 18 months, an increase from earlier
proposed one year. The RBI said the companies which would be eligible to apply must have a public
shareholding of at least 51 per cent.The Reserve Bank of India (RBI), said that it had decided to extend the
validity period of the in-principle approval for setting up of the Non-Operative Financial Holding Company
(NOFHC) from one year to 18 months. The RBI had released guidelines for licensing of new banks in the
private sector in February 2013.
State Bank cuts interest rate on bulk fixed deposits
State Bank of India, has announced reduction in interest rate on fixed deposits of maturity up to one year by
0.25 percentage point to 7.25 per cent. It has been decided to revise downwards by 25 basis points the
interest rate on bulk deposits above Rs.1 crore for tenors seven days to less than one year, the bank said.
ChrysCapital invests Rs.250 cr in CavinKare
FMCG (fast moving consumer goods) company CavinKare has said it has received a private equity (PE)
investment of Rs. 250 crore from ChrysCapital, a Mauritius-based firm, in a structured deal. This investment
will be used to strengthen and expand its existing brand portfolio. JM Financial acted as the sole financial
advisor to CavinKare.
Dr Reddy's Labs, Fujifilm terminate Japan generic drugs JV plan
Dr. Reddy's Laboratories and Japan's Fujifilm Corp have terminated their plan for a generic drugs joint
venture in Japan. The two companies will continue to explore partnership and alliance opportunities in other
areas such as active pharmaceutical ingredients and contract research and manufacturing.
GVKs second coal mine in Australia gets green signal
Hyderabad based infrastructure major, GVKs second coal mine project in Australia at Kevins Corner in the
Galilee Basin in western Queensland, has received environmental approval. The $ 4.2 billion project
proposes a 30 million tonne per annum (MTPA) underground and open-cut coal mine and other associated
infrastructure 65 kilometres north-west of the Alpha township. The project would rely on the railway
infrastructure of the adjacent Alpha Coal project to transport coal to the Port of Abbot Point, Bowen. The first
one, GVKs Alpha Coal project had already received environmental approval from the local government in
May 2012 and from the federal government in August 2012.
India among riskiest countries to open data centres
Indonesia, India and Brazil have been ranked as the riskiest countries to open a data centre, a new study
has found. The research by Cushman & Wakefield, Hurleypalmerflatt and Source8 measured risks related to
42

physical, economic and social issues in various countries around the world. The study revealed that the
United States is the least risky country to open a data centre, followed by the United Kingdom, Sweden and
Germany in a list of 30 countries. It revealed that issues such as poor connectivity, government rules and
supply-chain problems remain barriers to establishing data centres in Asia, despite the region's growing
economies. The study ranked Qatar 10th and was rated as the lowest-risk country in Asia to open a data
center.
ED slaps Rs.8,600-cr penalty notice on Emaar MGF
The Enforcement Directorate has issued a show-cause notice to construction major Emaar MGF Land
Limited for alleged violation of the Foreign Exchange Management Act (FEMA) worth about Rs.8,600 crore
by false representation on utilisation of foreign direct investment (FDI). The ED, during an investigation into
allegations of forex rule violations, noticed that the funds in question were received by the company and its
four subsidiaries from Dubai, Cyprus, Mauritius and other foreign countries under the FDI scheme of the
Reserve Bank of India since April 2005. Emaar MGF Land is a joint venture between Emaar Properties of
Dubai and MGF Development Limited of India.
RBI extends gold import restrictions to agencies
The Reserve Bank of India (RBI) has extended the restrictions on gold import to other agencies in addition to
banks, a moved aimed at curtailing demand for the precious metal for domestic use amid widening current
account deficit. On May 13,2013, such restrictions were put on banks. RBI also said all Letters of Credit (LC)
to be opened by nominated banks and agencies for import of gold under all categories will be only on 100
per cent cash margin basis. The import of the yellow metal during the first two months of the current fiscal
are estimated at $15 billion. Gold imports by India, the worlds largest consumer, stood at 860 tonnes in
2012. The Financial Stability Development Council (FSDC), chaired by Finance Minister P Chidambaram,
had discussed the issue of high import of gold.
BoB announces single rate of interest for home loans
State-run Bank of Baroda has announced a single rate of interest 10.25 percent for all its home loans. The
rate revision, which will be effective June 1, will be available to borrowers irrespective of tenor or quantum of
the loan. Banks typically charge lower interest rate for an amount of up to Rs 30 lakh, after which it goes up.
They also differentiate the interest rate offering according to the tenor of the loan. The country's largest
lender State Bank of India has the most aggressive interest rate offering at 9.95 percent for loans under Rs
30 lakh at present.
SBI MF to acquire funds of Daiwa MF
SBI Mutual Fund (SBI MF) has agreed to acquire the existing India-domiciled fund schemes of Daiwa Mutual
Fund (Daiwa MF). However, the value of the transaction was not available, and SBI MF declined to reveal it.
After the transaction is completed, all existing schemes of Daiwa MF will become schemes of SBI MF and all
existing unit holders of schemes of Daiwa MF will become unit holders of SBI Mutual Fund.
43

Import duty on gold hiked to 8 %

With spiralling gold imports putting huge pressure on the current account deficit, the government has hiked
the import duty on gold to 8 per cent, up by 2 percentage points, in a bid to rein in demand. The import duty
on gold has been increased from 6 per cent to 8 per cent, Revenue Secretary Sumit Bose told. This is the
second hike in the duty in six months as gold imports touched an alarming 162 tonnes in May 2013. The
imports touched a staggering $15 billion in the last two months.
Sebi penalises 105 companies for missing shareholding rule deadline
Securities and Exchange Board of India (SEBI) has penalised promoters of 105 companies, including Adani
Ports and Special Economic Zone Ltd and Tata Teleservices Maharashtra Ltd, for failing to comply with its
minimum public shareholding rule. The SEBI had asked all listed private companies in India to cut the stake
held by promoters, or key shareholders, in their companies to a maximum of 75 percent by June 3.
Nestle Group alone can use Maggi trademark
The Intellectual Property Appellate Board has ruled that Nestle Group alone can use the trademark Maggi
for its culinary products, while rejecting a Mumbai-based companys claim for the trademark to its domestic
appliances. Swaraj Industrial and Domestic Appliances Pvt. Ltd, Mumbai, filed applications for registration of
the trademark Maggi for its electrical products such as fans, heaters, geysers, bulbs and tube lights. Nestle
said its trademark was derived from the surname of Julius Maggi, founder of Nestle Group and the word
Maggi was not one derived from the dictionary. The word Maggi, therefore, connotes and denotes Nestles
products exclusively.
Tata Power JV ties up funds for South African wind farm project
Tata Power, through its equal joint venture company with Exxaro, Cennergi (Pty.) Ltd., has achieved financial
closure for its 134 MW Amakhala Emoyeni wind farm project in South Africa. The company was selected as
the preferred bidder for the Amakhala wind farm project, and the 95 MW Tsitsikamma wind farm project by
the Department of Energy, Government of South Africa, in 2012.
Latvia gets go-ahead to become 18th euro member
Latvia has won approval to become the 18th country to join the troubled euro currency union despite doubts
among many Latvians and international concerns about the country's banking system. The current 17-strong
group of EU countries that use the euro is struggling with a crisis over too much government debt, a
stubborn recession, and 12.2 per cent unemployment.
Larsen & Toubro wins Aramco gas project in Saudi Arabia
Larsen & Toubro won a contract to build facilities, including a gas processing plant, for state-run Saudi
Aramco at its Midyan gas field. L&T, India's largest construction and engineering firm, will build a plant with a
processing capacity of 75 million standard cubic feet per day (scfd) of non-associated gas and 4,500 barrels
of condensate per day.
44

Cognizant Technology ranked 12th on Forbes fastest tech cos in America list
US-headquartered IT services major Cognizant has been ranked at 12th place on a Forbes list of America's
25 fastest growing tech companies, which has been topped by business networking site LinkedIn. Social
networking giant Facebook is ranked second, followed by global IT major Apple at the third place. Nasdaqlisted Cognizant, which recently pipped Infosys as the second-largest IT services firm in India, is the only
company on the list with large exposure to India. Cognizant is a US-listed, American company, although
nearly 75 per cent of the company's global headcount is in India.
Swarup panel will help 215 large stalled projects restart
A committee headed by Anil Swarup was appointed to re-start 215 large projects worth over Rs 7 lakh crore
that have been stalled for various reasons, said Finance Minister P Chidambaram. Chidambaram is hoping
to accelerate economic growth by getting stalled projects off the ground. His brainchild, the Cabinet
Committee on Investment (CCI) has already cleared several thousand crores worth of projects in oil and gas,
power and road sector. Each of these projects that would be restarted on recommendation of the Swarup
panel, will be tracked and get implemented on a time-bound manner.
PNB chief Kamath re-elected IBA Chairman for 2013-14
K R Kamath, chairman and managing director (CMD) of Punjab National Bank was re-elected as Indian
Banks' Association Chairman for 2013-14. The association at its 66th Annual General Meeting also elected
HDFC Bank's Managing Director and Chief Executive Officer Aditya Puri as Deputy Chairman. State Bank of
India's Chairman Pratip Chaudhuri was named as the honorary secretary.
GAIL, SCI sign MoU to ship LNG from U.S.
GAIL (India) has announced that it had signed a memorandum of understanding (MoU) with Shipping of
Corporation India (SCI) for transporting LNG sourced by GAIL from the U.S. The MoU was signed in the
presence of B. C. Tripathi, Chairman and Managing Director, GAIL (India), and B. K. Mandal, Chairman and
Managing Director, SCI. Under the MoU, both entities would join hands for transportation of 5.8 million
tonnes per annum of LNG being sourced by GAIL from Sabine Pass and Cove Point terminals in the U.S.
Gujarat has over 50% of PPP projects in ports sector
Gujarat accounts for the lion's share of over 50 per cent in value terms of the total number of completed
projects in the ports sector under the public-private partnership (PPP) model, industry body Associated
Chambers of Commerce and Industry of India ( Assocham) said. Of the total 31 PPP port projects worth over
Rs 24,700 crore under operation in India as of April 30, 2013, Gujarat accounts for 12 completed PPP
projects worth over Rs 12,400 crore. Besides, Gujarat ranks sixth with four PPP-based port projects worth
over Rs 1,650 crore under construction. With a share of over 53 per cent, Gujarat also tops the list of nine
maritime states as it could create almost double the capacity at the minor ports than was envisaged in the
11th plan. Odisha ranks second with a share of about 17 per cent followed by Maharashtra where five
projects worth over Rs 3,700 crore are under operation. Andhra Pradesh and Tamil Nadu each with three
projects under operation and have garnered a share between 5-6 per cent followed by Kerala at 2.8 per cent.
45

Sebi shifts focus to PSUs on minimum holding norms

After cracking its whip on 105 private sector companies that failed to meet minimum public holding norms,
market regulator Sebi has turned its focus to about a dozen PSUs that need to comply with these regulations
in next 60 days with sale of shares worth about Rs 3,600 crore.
MoEF rejects HPCL's Vizag refinery expansion plan
In a setback to the state-owned Hindustan Petroleum Corp Ltd (HPCL), the Ministry of Environment and
Forests has rejected 'green' clearance for the petroleum major's expansion of Vishakh Refinery. The MoEF
has rejected the clearance as there is a moratorium on industrial expansions in some parts of
Visakhapatnam, where the company proposed expansion. HPCL had approached the Environment Ministry
seeking clearance for the expansion of its refinery from 8.33 MMTPA to 15.00 MMTPA at Visakhapatnam
District in Andhra Pradesh. The project which was scheduled to take off in 2013 could not move forward for
several reasons like environmental issues and partnership with others. HPCL currently operates 2 major
refineries producing a wide variety of petroleum fuels and specialities, one in Mumbai (West Coast) of 6.5
million metric tonne per annum (MMTPA) capacity and the other in Vishakhapatnam, (East Coast) with a
capacity of 8.3 MMTPA.
E-tailing to touch $76 billion by 2021 in India
The total size of the business of selling retail goods on the Internet, commonly known as e-tailing, is set to
touch USD 76 billion mark by 2021 in the country, according to a study by Technopak. E-tailing, which is
around 6 percent of the total e- commerce, is estimated to be around USD 0.6 billion in 2012. The total ecommerce business in India, including other products and services such as travel and financial services, is
estimated to be USD 10 billion in 2012. The study estimates that by 2020, 150 million users will have either a
laptop or a personal computer.
Reserve Bank slaps fine on three banks
The Reserve Bank of India (RBI) has imposed fine on three private sector banks Axis Bank, HDFC Bank and
ICICI Bank for violation of KYC (know your customer) norms. The RBI, after investigation into the matter, has
imposed monetary penalty of Rs.5 crore on Axis Bank, Rs.4.5 crore on HDFC Bank and Rs.1 crore on ICICI
Bank for violating its instructions on KYC norms. The RBI had carried out a scrutiny of books of accounts,
internal control, compliance systems, and processes of these three banks at their corporate offices and some
branches during March and April 2013 to investigate into the allegations of contravention of KYC/AML
guidelines against them. The banks had also violated RBIs norms by not-obtaining of permanent account
number card details or form 60/61 as required, non-verification of source of funds credited to a few nonresident ordinary accounts, and failure to re-designate a few accounts as NRO accounts though required,
non-submission of proper information called for by the RBI.

46

Oriental Bank cuts deposits rates by 25 basis points

Oriental Bank of Commerce, has reduced the interest rates on term deposits of less than Rs.1 crore across
various maturities by 0.25 percentage point. The changed rate of interests will come to immediate effect.
India to provide $150 million to set up SEZ in Myanmar
India has offered USD 150 million of credit for project exports to set up a SEZ in Myanmar and has
expressed hope that the neighbouring country would permit Indian banks to set up branches there.
The issues came up for discussion during the three-day visit of Commerce and Industry Minister Anand
Sharma to Nay Pyi Taw and Yangon. For the SEZ project, Myanmar government will provide suitable land for
the purpose. India has offered USD 150 million of credit for project exports for establishing a SEZ at Sittwe in
Myanmar.
Coal Ministry serves show cause notices on 12 firms
The Coal Ministry, has slapped show cause notices on 12 companies, asking them to explain their failure to
develop the coal blocks allocated to them by June 30, failing which their coal assets would face deallocation. The companies, which were issued show cause notices, are: NTPC. SAIL, TVNL, Damodar Valley
Corporation, Bhushan Steel and Power, West Bengal Power Development Corporation and Madhya Pradesh
State Mining Corporation, Maharashtra State Mining Corporations, Abhijit Infrastructure, Rungta Mines, OCL
India and Ocean Ispat.
ITC topples ONGC to become second most valued company
FMCG major ITC has surpassed state-run energy giant ONGC to become the county's second most valued
firm in terms of market valuation, with TCS at the top of chart. ONGC came behind ITC in the ranking of top10 companies. ITC commanded a market capitalisation of Rs 2,64,908 crore, which is about Rs 972 crore
more than ONGC's Rs 2,63,936 crore value. IT major TCS with Rs 2,93,318 crore market cap is the most
valued Indian firm. RIL with Rs 2,54,444 crore market value was at fourth position, followed by Coal India (Rs
1,96,881 crore).
Western Union ties up with IndusInd bank for SME services
Western Union has tied up with private sector lender IndusInd Bank for helping small businesses pay their
overseas vendors. Customers will need to have a current account with IndusInd Bank to avail of the facility.
The importing SME will pay a fee to IndusInd, which will be arrived at after calculating for money wire
charges and foreign exchange spread, for sending the money to the vendor. At present, traders pay their
vendors using their banks itself. An average ticket size of an SME transaction through WUBS is about
$17,000 globally. The service will be available in 22 cities in the country where IndusInd has branches.
Govt bans sale of painkiller
The government has banned the sale of widely-used pain-relieving medicine, dextropropoxyphene, in a
move that is expected to impact pharma companies' bottom lines. The drug was under the government
scanner for the last couple of years, with its sale already banned in the US, UK and other countries earlier.
47

Wockhardt markets dextropropoxyphene as Proxyvon. Wockhardt, already reeling under the import alert on
its Waluj plant imposed by the US Food and Drug Administration (FDA) recently, will take a hit of around Rs
30-40 crore due to the ban of the painkiller drug.
Adani Ports meets SEBI norm
The promoter of Adani Ports and Special Economic Zone, Adani Enterprises, has sold 2.5 per cent of its
holding to qualified investors for about Rs.1,000 crore to meet the Securities and Exchange Board of Indias
guidelines on minimum public shareholding for listed companies. Shares were sold through the institutional
placement programme (IPP). The IPP was subscribed 2.26 times of the issue size and had received
applications worth Rs.2,260 crore. The issue price was decided at Rs.150 per equity share. The company
has already issued 66.7 million equity shares of the face value of Rs.2 each, at a premium of Rs.148 a
share.
India to import 20 mt of LNG
Petroleum and Natural Gas Minister Veerappa Moily, said various state-run companies in the oil and gas
sectors had initiated talks with international players to buy as much as 20 million tonnes (mt) a year of LNG.
India has now become fifth largest importer of LNG after Japan, South Korea, the U.K. and Spain, and
accounts for 5.5 per cent of the total trade. The nation at present has three operational LNG import facilities
10 million tonne terminal at Dahej and 3.6 million tonne plant at Hazira in Gujarat and 5 million tonne
terminal at Dabhol in Maharashtra. A 5 mt capacity terminal is to be commissioned in Kochi in Kerala in
2013.
SEBI panel moots single class for foreign investors
A Securities and Exchange Board of India (SEBI)-appointed panel, has recommended merging of existing
foreign institutional investors (FIIs), sub-accounts and qualified foreign investors (QFIs) into a new investor
class, Foreign Portfolio Investor (FPI). The K. M. Chandrasekhar Committee on Rationalisation of Investment
Routes and Monitoring of Foreign Portfolio Investments, in its draft guidelines, suggested that the aggregate
investment limit for FPIs should be 24 per cent, being the present default aggregate limit for FIIs, which could
be raised by the company up to the sectoral cap.
Indian Bank, UIIC to offer online insurance product
T M Bhasin, Chairman and Managing Director, Indian Bank, and Milind A Kharat, CMD, United India
Insurance (UIIC), launched a web portal for Arogya Raksha mediclaim group insurance policies. Indian
Bank has been offering a co-branded group mediclaim insurance policy named Arogya Raksha Group
Mediclaim Insurance Policy to its customers since 2006. Indian Bank and UIIC have developed this web
portal which will offer online entry / renewal besides providing the identity card from the TPA and Tax
exemption certificate.

48

Madhusudan to be next CMD of RINL

Rashtriya Ispat Nigam Limited (RINL) Director (Finance) P. Madhusudan emerged successful in the
selections conducted by the Public Sector Enterprises Board (PESB) for the post of Chairman-cumManaging Director of the Navratna company. He is expected to succeed A.P. Choudhary, whose term is
scheduled to end on December 31, 2013. The PESB, after conducting the interviews for eight applicants in
New Delhi, recommended the name of Mr. Madhusudan to the government. He will have a term for five
years.
Jet Airways gets new CEO
Jet Airways (India) has appointed Australian national Gary Kenneth Toomey (58) as its new Chief Executive
Officer (CEO) a week after its previous CEO Nikos Kardassis quit the airline, believed to be a pre-condition
in the Jet-Etihad deal. Mr. Toomey has earlier served as President and Chief Executive Officer of the Air New
Zealand Group and as CEO of Airlines PNG in Papua New Guinea during their periods of major expansion.
World Bank sees 6.7% GDP growth for India by FY2014-15
The World Bank forecast a 6.7 per cent growth rate for India by next fiscal as exports and private investment
are projected to strengthen and provide a boost to growth. In its latest 'Global Economic Prospects' report,
the IMF said South Asia's regional growth will be driven mainly by a projected pick up in India, whose GDP in
factor cost terms is projected to grow 5.7 per cent in the 2013 fiscal year (ending in March 2014), and then
accelerate to 6.5 per cent and 6.7 per cent in FY2013-14 and FY2014-15, respectively.
Zydus arm recalls blood thinner drug in U.S.
Zydus Pharmaceuticals Inc., a subsidiary of Zydus Cadila, has started recalling a single lot of a blood thinner
drug in the U.S. after receiving a complaint that some of the tablets were oversized. The company is
voluntarily recalling one lot of Warfarin 2 mg tablets, which is widely used to prevent blood clots.Ingestion of
a greater than intended dose of Warfarin could lead to bleeding as an adverse reaction, which, in certain
cases, could be fatal.
Fitch upgrades outlook on SBI, ICICI Bank, 8 other lenders to stable
Rating agency Fitch has upgraded outlook of 10 financial institutions, including SBI, ICICI Bank and EXIM
Bank of India to 'stable' from 'negative' earlier following revision in the country's outlook. Fitch Ratings has
revised 10 India-based financial institutions' outlook to Stable from Negative, while affirming their respective
ratings, including their 'BBB-' Long-Term (Issuer Default Ratings (IDRs). The change in the outlook on the
IDRs follows the revision of the outlook on India's long-term foreign- and local-currency IDRs to 'stable' from
'negative'. Among other lenders are: Punjab National Bank, Bank of Baroda, Bank of Baroda (New Zealand)
Ltd (BOBNZ), Canara Bank, IDBI Bank, Axis Bank, Export-Import Bank of India and Housing and Urban
Development Corporation (HUDCO).

49

SK Roy new LIC chief

The Government is understood to have appointed S K Roy as the Chairman of Life Insurance Corporation of
India (LIC). Roy, who is presently a Managing Director in the organisation, would be succeeding D K
Mehrotra, whose term as LIC chief ended on May 31. The other candidates who were in fray for this top job
were Managing Director Sushobhan Sarkar and executive director S B Mainak. Roy joined the largest
insurance company in the country in 1981. On May 31, 2013, he assumed charge as Managing Director of
LIC along with Thomas Mathew and Sarkar.
Axis Bank accounts hacked, money withdrawn in Greece
Around 29 accounts of Axis Bank, including 12 of Mumbai policemen, have been hacked causing a loss of
Rs.13 lakh to these customers. The money has been withdrawn from ATMs in Greece using duplicate debit
cards. The crime came to light after several policemen received messages claiming money has been
withdrawn from their salary accounts. After verifying the account status they came to know that the money
had been withdrawn from Greece using debit cards.
BFSI firms make higher advance tax
The banking, financial services and insurance (BFSI) sector, led by the Life Insurance Corporation of India,
has reported a healthy rise in advance tax outgo in the first quarter of the current fiscal. The advance tax
outgo of LIC went up to Rs.679 crore from Rs.638 crore in the year ago period, while that of ICICI Bank
moved up to Rs.600 crore from Rs.500 crore. Deposit Insurance and Credit Guarantee Corporation paid
Rs.611 crore (Rs.440 crore). Advance tax payment is generally considered as a barometer of a companys
performance. Corporates pay about 15-18 per cent of their tax liability in the June quarter.
World Bank forecasts 2.2% global growth in 2013
Although risks from advanced economies have eased and growth is firming, despite ongoing contraction in
the Euro Area, the pick-up in developing countries will be modest because of capacity constraints in several
middle income countries. In its latest Global Economic Prospects (GEP) report, the World Bank said the
Global GDP is expected to expand to about 2.2 percent this year and strengthen to 3 percent and 3.3
percent in 2014 and 2015 respectively. Developing country GDP is now projected to be around 5.1 percent in
2013, strengthening to 5.6 percent and 5. 7 percent in 2014 and 2015, respectively. Growth in Brazil, India,
Russia, South Africa and Turkey has been held back by supply bottlenecks.
Shah Commission on illegal mining may get one year extension
The Mines Ministry is likely to give another one year extension to the Justice M B Shah Commission, which
is currently probing illegal mining issues in seven mineral-rich states, as it is yet to cover four states of
Jharkhand, Chhattisgarh, Madhya Pradesh and Maharashtra even though its current tenure is coming to end
on July 16, 2013. Once accepted by the Cabinet, this would be the second extension for the Commission,
which had been given a 12-month extension last year also. Till a year back, it had only visited Karnataka and
Goa, while a comprehensive tour of Odisha was yet to be conducted by it.
50

May not be mandatory to post paper copy of I-T e-filings

Millions of taxpayers filing electronic I-T returns will soon get relief from sending by post the mandatory paper
verification form as the CBDT has decided to soon stop this practice. The Central Board of Direct Taxes
(CBDT), administrative authority of the Income Tax department, will now instead introduce electronic
verification of these online returns. The new measure, expected to be operational within this financial year,
will save the taxpayer from the hassle of sending the paper document (called ITR V) by post and tracking its
acknowledgement. E-filing is meant to help the taxpayer (by making it easier to pay taxes). But compulsory
dispatch of paper documents by post to the Bangalore based central processing centre of the department or
procuring a digital signature was undoing this. Hence, the department has decided to end this soon.
China's Shenzhen SE is world's top bourse
China's Shenzhen SE has overtaken US-based NYSE Euronext as the world's largest bourse in terms of
number of equity trades, while India's NSE has retained its second spot for two consecutive months. In the
first three months of 2013, NSE had continuously maintained its top rank among the 51 bourses listed with
World Federation of Exchanges (WFE), for equity trading volumes. However, the bourse slipped to second
rank after been overtaken by NYSE Euronext (US), in April, 2013. Shenzhen SE and NSE were followed by
NYSE Euronext (US), China's Shanghai SE and Nasdaq OMX in the top five. NYSE Euronext (US) recorded
10.69 crore equity trades followed closely by Shanghai SE with 10.42 trades.
India's Exim Bank approves $300 million loan to Ethiopia
The Export-Import Bank of India has approved a $300 million worth of line of credit to Ethiopia, paving the
way for construction of a railway line linking this landlocked country in the Horn of Africa to a port city in
neighbouring Djibouti. An agreement in this regard was signed between T.C.A. Ranganathan, chairman and
managing director of Exim Bank, and Ahmed Shide Mehamed, Ethiopian State Minister of Finance and
Economic Development (MoFED), in New Delhi.
Ratan Tata is chief adviser to AirAsia
The low-cost carrier AirAsia announced that industry leader Ratan Tata would serve as chief adviser to the
board of its Indian venture and promised Nano airfares once it started operating flights in the country.
Punjab to get 250 MW solar power projects
The Punjab Energy Development Agency (PEDA) has finalised the setting up of solar photovoltaic (PV)
power projects by world-renowned companies and young entrepreneurs. These projects will generate 250
MW of electricity and contribute 375 million units of green energy to the State grid, at a combined investment
of Rs. 2,000 crore. They are estimated to be completed and commissioned by the end of 2014.
Current taxpayers number too small, says CBDT chief
Newly appointed chief of the Central Board of Direct Taxes (CBDT) Sudha Sharma said that while the
department will focus on people who don't file their income tax returns, efforts at the same time would also
be made to enhance revenue collection as the current tax payers base is too small for a country of India's
51

size. Only 42,800 people in the country have an annual income of more than Rs one crore. The Government
plans to collect over Rs 6.68 lakh crore in direct taxes during 2013-14, up from Rs 5.65 lakh crore in the
previous fiscal.
Ramadorai is AirAsia India chairman
AirAsia India, has moved closer to getting off the ground by appointing S. Ramadorai as its Chairman. A day
after getting Tata Group patriarch Ratan Tata as the chief advisor, AirAsia Group chief executive officer Tony
Fernandes announced the name of Tata Consultancy Services (TCS) Vice-Chairman S. Ramadorai as the
Chairman of the proposed low-cost airline venture. Mr. Ramadorai is the fourth person from the Tatas to hold
a position in airline joint venture after Ratan Tata as chief advisor, and R. Venkataraman and Bharat Vasani,
who are directors on the board. AirAsia India is a joint venture of Air Asia, Tata Sons and Arun Bhatia of
Telestra Tradeplace with 49:30:21 holding.
New Rs 5 coins on 150th birth anniversary of Motilal Nehru
The Reserve Bank will soon put into circulation new five rupee coins to commemorate 150th birth
anniversary of Motilal Nehru. The obverse of the coin will bear the Lion Capital of Ashoka Pillar in the centre
with the legend "Satyamev Jayate" inscribed below. It will be flanked on the left periphery with the word
"Bharat" in Devnagri script and on the right periphery with the word "INDIA" in English.
In India, copycat drug firms get off lightly compared with US
Indian drug major Sun Pharmaceutical Industries has agreed to pay $550 million to New York-based Pfizer
as part of an out-of-court settlement of the Protonix patent infringement lawsuit. Indian laws too have similar
provisions for calculating and charging damages from generic drug makers, in the event a firm loses the
patent infringement case. But there is no concept of triple damages. Also, compensation is limited to the
revenues earned by the copycat drug maker and does not extend to the sales lost due to the generic eating
into the branded firm's market share.
Mayaram panel bats for FDI hike in defence, telecom, retail
Proposing a comprehensive overhaul of the country's foreign direct investment (FDI) regime, a key panel led
by economic affairs secretary Arvind Mayaram has called for hiking the foreign investment caps across
nearly all sectors, including defence and telecom, and permitting automatic approval to proposals entailing
49 per cent foreign equity infusion. The high-powered committee has also called for permitting up to 49 per
cent FDI in single brand retail under the automatic route as well as hiking foreign investment cap in telecom
to 100 per cent from the existing limit of 74 per cent. The panel has proposed raising the foreign investment
limit in sectors that are currently limited to 26 per cent to 49 per cent. This proposal would largely impact
sectors such as defence production, public sector banks and FM broadcasting, where FDI is currently limited
up to 26 per cent.

52

First infrastructure debt fund launched

With an eye on the long-term horizon of insurance and pension funds, Finance Minister P. Chidambaram,
has maintained that infrastructure debt funds (IDFs) should try to mobilise resources from these sectors. He
has launched the maiden $1 billion IDF scheme of IIFCL Mutual Fund in New Delhi. For launching the
maiden IDF, IAMCL, a mutual fund promoted by India Infrastructure Finance Company Limited (IIFCL),
signed a memorandum of understanding (MoU) with three public sector banks and two financial institutions
HUDCO and its parent company IIFCL. While Canara Bank and HUDCO are the strategic investors of the
IDF, Corporation Bank, Oriental Bank of Commerce and IIFCL are the other investors.
Taiwan's EVA Air joins world's biggest air alliance
Taiwan's EVA Airways has joined Star Alliance, the world's biggest airline grouping, in a move that could give
it an edge over regional rivals like China Airlines. "EVA Air has successfully completed all joining
requirements and I can confirm that our chief executive board has now unanimously accepted EVA Air into
our alliance," Star Alliance CEO Mark Schwab told. EVA, Taiwan's second largest airline, becomes the 28th
member of the Star Alliance, which also includes carriers such as Lufthansa, Thai Airways International,
United Airlines and Air Canada.
Boeing launches Dreamliner 787-10, bigger version of 787
Boeing launched a bigger version of its next-generation 787 Dreamliner at the Paris Air Show with more
than 100 orders from airlines and leasing groups around the world. The 787-10 is bigger than its two brothers
in the Dreamliner family, and Singapore Airlines and ALC were its two biggest customers, with 30 orders
each. United has committed to buying 20 planes while British Airways will get 12.
Vodafone slashes 2G internet charges
Vodafone India, has cut internet charges by 80 per cent. The new rate would be applicable for all pre-paid
and post-paid Vodafone customers using 2G network on a pay as you go basis, says a release from the
company. The rate cut to 2 paise from 10 paise per 10 KB will make internet access affordable for customers
who use mobile internet in a limited way. The reduced rates are now applicable in Karnataka, Uttar Pradesh
West, Madhya Pradesh and Chhattisgarh circles.
NALCO's second wind power plant on stream
As part of its diversification plans, the National Aluminium Company Limited (NALCO) has set up its second
wind power plant at Ludarva in Jaisalmer district of Rajasthan with a capacity of 47.6 MW. A part of the
project has been commissioned successfully and power production has commenced from 18 wind energy
generators.
FDI dips by 6% to $ 5.47 bn in Jan-March 2013
Foreign direct investment (FDI) in India has declined by six per cent to $5.47 billion during January-March
quarter of the current calender year even as government is making efforts to promote the country as an
investment destination. FDI inflows were worth $5.84 billion in January-March 2012. During the quarter,
53

highest FDI of $2.15 billion was received in January followed by $1.79 billion in February and $1.52 billion in
March, according to the department of industrial policy and promotion (DIPP) data. India received maximum
FDI from Mauritius, followed by the UK, Singapore, Japan and United States during the period.
Exim Bank gets licence to open representative office in Myanmar
Export-Import Bank of India (Exim Bank) has received a banking licence to open a representative office at
Yangon in Myanmar. Exim Bank has extended seven lines of credit (LoCs) worth $247.43 million to the
Myanmar Foreign Trade Bank for projects or contracts such as upgradation of the railway system, setting up
refinery projects, a manufacturing plant for assembly and manufacture of Tata vehicles in Myanmar and
setting up of three transmission lines in Myanmar, among others. A memorandum of understanding (MOU)
for LoCs worth $500 million was signed between Exim Bank and Myanmar Foreign Trade Bank. Under the
MoU, 16 ongoing irrigation schemes, two irrigation projects, a project for procurement of rolling stock,
equipment and upgradation of three major railway workshops in Myanmar are covered.
RBI eases rules for forex option premium payment
The Reserve Bank has relaxed premium payment rules for banks on some forex options by allowing the
buyer of such instruments to spread the payment over the maturity of the contract. This facility will be
available for cost reduction forex option structures in which the liability of the buyer will not exceed the net
premium payable to the bank. Banks should carry out necessary due diligence with regard to the ability of
users to adhere to the premium payment schedule, in accordance with their board approved policy in this
regard, before extending this facility to the users. Payment of premium for option structure with maturity of
more than one-year may be deferred, provided the premium payment period does not extend beyond the
maturity date of the contract.The premium payment should be made at least once a quarter.
Bharti ties up with J&K Bank to offer airtel money services
Airtel M Commerce Services Ltd (AMSL), a subsidiary of Bharti Airtel, has announced a tie-up with Jammu
and Kashmir Bank (J&K Bank) to offer airtel money services through the banks 800 Khidmat Centres
across the state. Through airtel money, the users can load cash on their mobile devices and spend it to pay
utility bills, recharge mobile phones, shop at merchant outlets and transact online. J&K Bank has taken the
Khidmat Centres e-governance project to make information and knowledge reach all corners of the state as
well as to ensure growth for both urban and rural sections of the society.
TCS joins US2020 as founding leadership partner
Countrys largest software services firm Tata Consultancy Services (TCS) said it has joined US2020 as a
founding leadership partner. US2020 is a national STEM Education initiative that aims to engage one million
science, technology, engineering and math (STEM) professionals in mentorship opportunities by the year
2020. Tata Consultancy Services is joining as a Founding Leadership Partner of US2020, providing more
than $5,00,000 in cash and in kind support. Through the online matching platform that TCS will develop,
US2020 will help place STEM volunteers into high impact mentoring opportunities with top non-profit
organisations working across different grades, settings, and delivery models.
54

Amex card for the middle-income youth

American Express is aiming to woo the upwardly mobile and socially connected Indian consumers with a
tailor-made credit card. For this, the global services company has launched a co-branded credit card with
PAYBACK, a multi-brand loyalty programme. Targeted at consumers in the 25-35 year age group, the
American Express PAYBACK card will be offered to those with an annual income of Rs 4-7 lakh. The interest
rate for outstanding amounts will come at 1.25 per cent a month for the first six months. The power of
PAYBACK stems from pooling loyalty benefits from many partners. By using one single card, members now
earn loyalty points when they shop at a wide range of different merchants and brands offline and online.
Card-members will get an assured three PAYBACK points for every Rs 100 spent.
Karvy Capital launches first hedge fund
Karvy Capital, the asset management arm of financial services provider Karvy Group, has launched first
hedge fund named Systematic Edge Fund. This fund is an open-ended categoryIII AIF (alternate
investment fund), under the AIF guidelines issued by market regulator SEBI. The systematic edge fund is a
multi-strategy absolute-returns hedge fund and targets delivering positive returns across all equity market
scenarios. However, after these norms, many domestic asset management companies have applied for
launching hedge funds.
EC fines Ranbaxy
The European Commission has imposed 146 million in fine on nine pharmaceutical companies, including
Ranbaxy Laboratories, for delaying market entry of the generic versions of Lundbecks branded citalopram,
an antidepressant. Ranbaxy Laboratories has been fined euro 10.32 million (over Rs.80 crore).
Aircel offers special prepaid services for Amarnath Yatris
Telecom operator Aircel has announced the launch of special short-term prepaid SIM cards for Amarnath
Yatris. Aircel will also set up special counters in Jammu, Pahalgam, Baltal and many more locations in J&K
to make these special SIM cards available to the yatris. To avail the services, yartis will be required to
produce at the counter, original Yatra registration slip while purchasing the SIM card and have to submit a
photocopy of the same, besides a self-certified copy of valid ID proof and address proof as prescribed by
DoT.
Glenmark gets US FDA nod for sclerosis treatment drug
Drug firm Glenmark Pharmaceuticals said it has received US health regulators approval to market Riluzole
tablets, used in treating nervous system disorder, in the American market. Glenmark Generics Inc, the USbased subsidiary of Glenmark Generics Ltd (GGL) has received final approval from the US Food and Drug
Administration (USFDA) for Riluzole tablets in 50 mg strength. Riluzole is indicated for the treatment of
amyotrophic lateral sclerosis. As per the IMS Health sales data for the 12 month period ended March 2013,
Riluzole had garnered sales of $64 million in the US market.

55

Airtel cuts data usage rates in Punjab, Haryana

Bharti Airtel, has slashed data usage charges by 90 per cent for pre-paid subscribers in Punjab and Haryana,
a day after Vodafone lowered data charges by 80 per cent for its pre-paid and post-paid customers in three
circles. The volume based charges (VBC) on its recharge vouchers for 2G data usage of three
denominations had been reduced to 1 paisa from 10 paise per 10 KB. The recharge vouchers of Rs.22,
Rs.25 and Rs.125 carry a free download limit of 125 MB for five days, 150 MB for seven days and 1 GB for
28 days.
Commodity transaction tax to be levied from July 1
Commodity Transaction Tax (CTT) will come into effect from July 1 with a levy of 0.01 per cent of the
transactional value being applicable on the seller in futures trading of a host of items such as gold, sugar and
edible oils. Apart from gold, other commodities such as silver, crude oil and base metals and processed farm
items such as sugar, soya oil, mentha oil and guar gum will also come under CTT. According to a Finance
Ministry notification, 23 pure agricultural commodities such as wheat, barley, chana (gram), cotton and
potatoes would be exempted from the levy. Also in the exempted category are some other farm produces
such as coriander, cardamom and guar seeds. Out of the 22 commodity bourses in the country, only six of
them operate at the national level.
Sebi extends new fund offer period to 30-day for RGESS
Market regulator Sebi has notified regulations that allowed mutual funds to accept investor money in new
plans under the Rajiv Gandhi Equity Savings Scheme (RGESS) for 30 days, as against a 15-day
subscription period allowed for other schemes. The relaxation has been made only for mutual fund schemes
under RGESS, a government initiative aimed at attracting small investors into the capital market. In a circular
dated June 19,2013, Sebi that the subscription period or the window for which a new fund offer (NFO) of a
mutual fund scheme remains open has been extended to 30 days. Generally, an NFO remains open for a
period of 15 days.
Non-food bills overtake food spend
Families are spending more than half of their monthly spend on non-food items on an average, data from the
National Sample Survey for 2011-12 show. This is true for rural as well as urban households; families bought
over 51 per cent of non-food items in their monthly bills worth Rs.1,430 in rural areas and about 62 per cent
out of an urban monthly spend of Rs.2,630. Back in 1993-94, Indian families non-food bill was almost 37 per
cent in rural areas and about 45 per cent in urban areas. Non-food categories span tobacco/cigarettes and
pan, fuel, light, clothing, bedding, footwear, education, medical bills, entertainment and durable goods.
Air India ties up with India Post
Air India has tied up with India Post for carriage of Logistics Post which is different from regular post office
mail. This service is available from a total of 15 airports at present, including the six metros and Agartala,
Ahmedabad, Guwahati, Imphal, Lucknow, Nagpur, Patna, Pune, and Thiruvananthapuram.
56

Idea cuts 2G tariff by 90% in 8 circles from July 1

Idea Cellular has revised its data tariff for prepaid and postpaid 2G plans in eight circles across the country.
Idea users can now access data for just 2 paise/10 KB which is a 90% reduction in the existing tariff of 2
paise/KB. Idea's new data tariff will be applicable starting July 1st, 2013 and the offer will be valid for 90
days. Idea users in the eight circles of - Tamil Nadu & Chennai, Karnataka, Kolkata, West Bengal, Assam,
North East, Bihar, and Orissa - will benefit from the revised data tariff on both, prepaid and postpaid 2G
plans.
British, Chinese central banks agree currency swap line
The Bank of England and the People's Bank of China have signed an agreement to establish a reciprocal,
three-year sterling-yuan currency swap line, Britain's central bank announced. The deal was agreed between
BoE governor Mervyn King, who steps down at the end of the month, and his counterpart Zhou Xiaochuan of
the central People's Bank of China. The maximum value of the swap is USD 32.6 billion. The swap line may
be used to promote bilateral trade between the two countries and to support domestic financial stability
should market conditions warrant.
IRDA may allow banks sell products from multiple insurers
Despite the Reserve Bank of India's apprehensions, insurance regulator Irda is set to issue guidelines
allowing banks to sell products of many insurance companies as against those of only one life and one nonlife insurer at present. These guidelines will, however, come with some stringent provisions against misselling of such products by banks. The guidelines will bring into effect this year's Budget proposal to permit
banks to act as insurance brokers. The new norms will help banks in using their entire network of branches
to increase penetration of not only banking but also insurance product.
Insurance industry to grow below 5% in FY'14
The growth rate of Indian insurance industry is likely to be less than 5 per cent in the current fiscal, according
to industry chamber CII. The growth of the Indian insurance industry is projected to remain below 5 per cent
in the current fiscal (FY 2013-14). The survey found that 60 per cent of non-life insurance companies would
record an average growth of more than 10 per cent. However, 50 per cent of surveyed life insurance
companies are projected to clock negative growth in the current fiscal.
Companies paying over Rs 10 cr advance tax may be asked to join LTU
Government is considering making it mandatory for companies paying advance tax of over Rs 10 crore
annually to register with the LTU (Large Taxpayers Unit), a move likely to augment and streamline tax
collection. A four-member committee has been set up to look into the various aspects of LTU, a single
window clearance for all matters relating to central excise, income tax/ corporate tax and service tax. At
present, it is voluntary for large tax payers to register under LTU. The first LTU was set up at Bangalore in
2006 followed by Chennai, Mumbai and Delhi. A LTU is headed by a Chief Commissioner, either from Central
Board of Direct Taxes (CBDT) or Central Board of Excise and Customs (CBEC).
57

BSNL signs four international roaming agreements

State-run telecom operator BSNL has signed four international roaming agreements in May with service
providers in Bahrain, Guinea and Saudi Arabia. The company provides international roaming service to its
post-paid service users. Under the new agreement, BSNL has partnered with Orange in Guinea for GSM
roaming services. The company has extended agreement with Viva in Bahrain, Orange in Guinea (for mobile
Internet services) and Mobily (Etisalat) in Saudi Arabia for mobile Internet services. In Bahrain, BSNL has
agreement with Batelco and Zain for international roaming services. In Guinea Republic, the company has
partnered with Cellcom and Areeba apart from Orange and with Saudi Telecom and MTC in Saudi Arabia.
Govt allows RIL to surrender SEZ in Haryana
The government has allowed MukeshAmbani owned Reliance Industries to surrender its special economic
zone in Haryana. The decision to denotify Reliance Haryana SEZ Ltd, a unit of RIL, was taken by Board of
Approval, headed by Commerce Secretary S R Rao. The BoA is a 19-member inter-ministerial body that
deals with SEZs and the issues related to them. Reliance Haryana SEZ Ltd, a sector specific SEZ for multi
services at villages Mohammadpur Jharsa, Gharauli Khurd, Khandsa and Harasru, District Gurgaon,
Haryana was notified over an area of 440.71 hectares. It was notified on November 14, 2007. The SEZ was
given in-principle approval on August 8, 2006. As per SEZ Rules, the validity of the approval was up to
August, 7, 2007. The developer has already been granted six extensions, the validity of which was going to
expire on August, 7, 2013.
Govt aims to build world's largest transmission grid by 2017
Power Ministry has set an ambitious target of building the world's largest transmission network spanning
across 1,40,000 circuit kilometres by 2017. At present, the southern grid is not connected to the national grid.
Its connectivity with the rest of the grids would help in overcoming the acute electricity shortage in southern
states. He said Bihar, Andra Pradesh, Kerala, Karnataka, Haryana and Uttar Pradesh have come on board.
Tamil Nadu has almost completed its bond offer.
RBI gives banks more time to implement card security features
The Reserve Bank of India, has extended the deadline for introduction of additional security features for
payment through debit and credit cards as banks and related entities had yet to put in place the requisite
infrastructure. With a view to providing uninterrupted services to customers, it has been decided to grant an
extension of time. The new deadline for banks to comply with all security features such as EVM chip on
cards, real time fraud monitoring system, use of PIN, limit on transactions and the like is November 30,2013.
The RBI had in September, 2011, issued the guidelines for additional security features with a view to
guarding cardholders against cyber frauds and other misuse. Increased usage of credit and debit cards has
led to rise in frauds, especially in the case of lost or stolen cards. Also, there have been reports of data on
cards being compromised and cards skimmed/counterfeited.

58

RBI eases overseas loan rules for low-cost builders

The Reserve Bank of India (RBI) has made it easier for property developers to access foreign money in an
effort to spur low-cost housing projects, such as slum rehabilitation. The RBI has extended the limit of $1
billion that can be borrowed through the external commercial borrowing (ECB) scheme to the 2014-2015
financial year from this year. It will also allow companies to hedge the entire borrowing, protect them from
any sharp depreciation of the rupee against the dollar. The central bank also reduced the minimum
experience companies have to have to undertake these projects to 3 years from 5 years. The Reserve Bank
also scrapped the minimum paid-up capital of 500 million rupees for property developers.
West Bengals entry tax struck down
The Calcutta High Court struck down the West Bengal Tax on Entry of Goods into Local Areas Act, 2012,
meant to levy one per cent tax on the entry of certain goods into the State.
Vodafone agrees $10 bn Kabel Deutschland deal
Vodafone has agreed to buy Germany's largest cable operator Kabel Deutschland for 7.7 billion euros ($10
billion), betting on TV and fixed-line services in its biggest deal since 2007. Vodafone said it would pay 87
euros ($110) per share for the group to enable it to offer more competitive packages with TV, fixed-line and
broadband services to its mobile customers.
Airtel cuts base plan package for 4G services by 31%
Bharti Airtel customers can now avail its 4G data plans starting from Rs 450, down 31 percent from Rs 650
earlier in Bengaluru, Kolkata, Pune and Chandigarh circles. The company, which recently reduced 2G data
tariffs by 90 percent in Punjab and Haryana, is trying to boost up data usage and increase adoption for its 4G
service for improving revenues. Airtel had won spectrum for high-speed broadband service in four telecom
services areas of Kolkata, Maharashtra, Punjab and Karnataka in 2010, paying Rs 3,314.36 crore for it.
M&M Financial drops plan to enter banking
Mahindra & Mahindra Financial Services, has dropped plans to enter mainstream banking, suggesting that
new rules intended to make bank branches more widely available might be proving too hard for businesses
to implement. Only about half of the countrys population has access to banking services. The Reserve Bank
of India issued guidelines in February, allowing any type of company to set up a bank. Mahindra & Mahindra
Financial is one of many non-bank finance companies (NBFCs), which are not allowed to raise low-cost
savings deposits.
SEBI tightens buyback norms
The Securities and Exchange Board of India (SEBI) has simplified rules for foreign investors and tightened
the norms for buyback of shares by the companies. It has also stipulated norms for Angel Funds, proposed
in the Union Budget 2013.While tightening the norms for companies to buy back shares, the SEBI has said
that 50 per cent of the earmarked funds for a buyback have to be utilised by the corporates as against the
existing stipulation of 25 per cent. Further, the market regulator has reduced the maximum buy-back period
59

to six months from one year. The SEBI has also permitted listing of start-ups and SMEs (small and medium
enterprises) in institutional trading platform (ITP) without making an initial public offering (IPO).
Bajaj auto launches mid-size sports bike KTM390 Duke at Rs 1.8 lakh
Bajaj Auto has launched its premium bike from the KTM platform at a price of Rs 1.8 lakh and said it expects
to clock higher sales from the premium segment. The KTM 390 Duke is the second offering from the KTM
portfolio as Bajaj Auto had launched the first KTM offering, KTM 200 Duke, in January 2012. The Duke is the
first mid-size sports bike from the Bajaj stable. However, it is expected that the Duke will face competition
from Yamaha R15, Honda CBR 250 and Ninja 350.
OVL-OIL to buy Videocon's stake in Mozambique field for $2.5 billion
Oil and Natural Gas Corp (ONGC) along with Oil India Ltd (OIL) will buy Videocon Industries' 10 per cent
stake in a giant Mozambique gas field for $2.5 billion and may pay a similar amount to buy a further 10 per
cent stake from Anadarko of US. ONGC Videsh Ltd, the overseas arm of Oil and Natural Gas Corp (ONGC),
sewed India's second biggest energy acquisition ever when it along with OIL agreed to pay $2.475 billion for
Videocon's 10 per cent stake in the Rovuma-1 field. The Rovuma field may hold as much as 65 Trillion cubic
feet (Tcf) of inplace gas reserves, more than 10 times the reserves in Reliance Industries' eastern offshore
KG-D6 fields, and has the potential to become one of the world's largest liquefied natural gas (LNG)
producing hubs by 2018.
M Satyam merges with Tech Mahindra, becomes 5th biggest IT firm
IT services firm Tech Mahindra has announced completion of Mahindra Satyam's merger with itself to create
nation's fifth largest software services company with a turnover of $2.7 billion. The merged entity will be
called Tech Mahindra which will aim to almost double the turnover to $5 billion by 2015 with focus on
telecom, manufacturing, BFSI among others. Anand Mahindra will be the chairman of the combined entity.
Deutsche Bank files for India's first inflation-linked bond fund
Deutsche Asset Management, part of Deutsche Bank AG, is set to launch India's first inflation-linked bond
mutual fund, according to registration documents filed with market regulators. The DWS Inflation Indexed
Bond Fund expects to allocate 70 percent to 100 percent of its portfolio to India's inflation-linked bonds, with
the rest for other debt securities. It did not mention how much the fund would raise. India re-launched
inflation-linked government bonds earlier this month selling 10 billion rupees ($176.06 million) of 10-year
bonds, while Larsen and Toubro Ltd became the first corporate to issue such debt.
State nod for FDI in multi-brand retail
Karnataka has joined the 11 other States and Union Territories that have agreed to allow foreign direct
investment (FDI) in multi-brand retail. There was a change in Karnatakas stand following the change of
government there after the recent Assembly polls. The previous BJP-led government was against the
implementation of FDI in multi-brand retail in the State.
60

FDI inflows to India down 29 % in 2012

Foreign direct investment (FDI) inflows to India declined by 29 per cent to $26 billion in 2012 due to slow
economic growth and high inflation, the United Nations Conference on Trade and Development (UNCTAD)
has said. The Indian economy experienced its slowest growth in a decade in 2012, and also struggled with
risks related to high inflation. As per UNCTAD forecast, FDI in 2013 will remain close to the level of 2012,
with an upper range of $1.45 trillion.
Bharti Airtel, Google join hands to provide free Internet
Bharti Airtel and Google has announced the launch of Free Zone powered by Google, which will give Airtel
mobile customers access to mobile web search and feature-phone-friendly versions of Gmail and Google+ in
India. The first page of a website linked from search results is provided at no data cost. Free Zone aims to
put the web in the hands of more people and empower first time Internet users with several useful services
of the Internet.
iGate bags $100 million deal from MetLife
Outsourcing company iGate Corporation said it has bagged a major five-year contract worth over $100
million (about Rs 598 crore) for providing global infrastructure services for insurance major MetLife, Inc. The
US-based IT solutions firm has been providing services to the global insurance giant for the last 10 years
across North America, EMEA and Asia-Pacific. The present deal includes providing complex and mission
critical services.
Tablets launched
Dr. Reddys Laboratories announced launch of Lamotrigine Extended Release Tablets, a therapeutic
equivalent generic version of Lamictal XR in the US market. The Lamictal XR brand and generic had
combined US sales of approximately $300.5 million MAT for the most recent 12 months ending in April, 2013.
Indians among top five foreigners buying properties in the US
Indian are among the top five foreign nationals buying real estate in United States, even as there has been a
decline in foreigners acquiring properties in the US. According to the "2013 Profile of International Home
Buying Activity" for the 12 months period ending March 2013, realtors reported purchases from 68 countries,
but five have historically accounted for the bulk of purchases; Canada (23 per cent), China (12 per cent),
Mexico (8 per cent), India (5 per cent) and the United Kingdom (5 per cent).
RBI allows use of ECB fund for import of services
Amid declining value of rupee, the Reserve Bank has relaxed ECB norms and allowed companies to use the
overseas debt to pay for import of services, technical know-how and licence fee as part of capital goods
imports. Currently, eligible entities can raise ECB (external commercial borrowing) for investment such as
import of capital goods, new projects, modernisation/expansion of existing production units in industrial
sector, infrastructure sector and entities in the service sector.
61

Muthoot Finance gets RBI nod to set-up White Label ATMs

Gold loan company Muthoot Finance said it has got in-principle approval from the Reserve Bank to set up
White-Label ATMs in the country. White-Label ATMs are to be set up by non-banking entities on behalf of
'sponsor banks' but they would not carry the brand label of any bank, and would be accessible to cardholders of all the banks for a fee. Earlier June 2013, private sector lender Federal Bank said it has tied up
with Tata Communications to install 15,000 White-Label ATMs (WLAs) across the country.
Tatas roll out first white label ATMs
Tata Communications Payment Solutions Ltd. (TCPSL), a subsidiary of Tata Communications, has rolled out
the first-ever white label Automated Teller Machines (ATMs) network under the brand Indicash. In 2012, the
Reserve Bank of India , had allowed corporates to set up white label ATMs to increase the penetration of
ATMs in several areas of the country. TCPSL, among others, had bagged a licence for the same. The first
Indicash ATM was inaugurated at Chandrapada, a rural village in Thane district of Maharashtra. TCPSL will
deploy 15,000 Indicash ATMs in three years. Like most other bank ATMs, Indicash offers a host of cash and
non-cash services such as cash withdrawals, balance enquiries, mini-statements and PIN change. The
Indicash ATMs have been designed to eliminate several concerns of cardholders. The Indicash machines are
Dip machines, which cannot swallow cards.
Cabinet nod for 7.64 % NFL stake sale
The Central Government has cleared the proposal for 7.64 per cent stake sale in National Fertilisers Ltd.
(NFL), which is expected to fetch around Rs.125 crore to the exchequer. The CCEA has approved
disinvestment of NFL though the offer for sale (OFS) route. The government plans to disinvest 7.64 per cent
stake, or over 3.74 crore shares of NFL in the domestic market. At present, the government holds 97.64 per
cent stake in NFL. The paid-up equity capital of the company, as on March 31, 2012, was Rs.490.58 crore.
Dept. of Posts applies for banking licence
The Department of Posts, has submitted an application before the Reserve Bank of India (RBI) for a licence
to offer full-fledged banking services. The RBI is in the process of granting fresh banking licences and has
set July 1 as the deadline for applying. The Department of Posts has plans to start 50 bank branches in the
first year and scale it to a total of 150 branched in five years. The total amount includes Rs.500 crore paid-up
capital required under new banking licence guidelines.
IFCI, India Info, Bajaj Finserv new bank licence applicants
State-owned IFCI and financial services provider India Infoline said their boards have given approval to
applying to RBI for bank licences. Also, in a filing to the BSE, Bajaj Finserv said it has submitted application
to RBI on June 26, 2013, for a licence to commence banking business. IFCI, Bajaj Finserv, India Infoline
would join a host of other entities like Religare Enterprises, Aditya Birla group, JM Financial and Srei.

62

Telenor, Qatar Telecom win telecom licences in Myanmar

Norwegian firm Telenor and Qatar Telecommunications won telecom licences in Myanmar, one of the last
untapped mobile phone markets globally, pipping India's Bharti Airtel and nine others. Telenor and Qatar
Telecom will be first set of private operators to provide telecom services in Myanmar. The Government
committee in charge of licence bids is pleased to announce that Telenor Mobile Communications and
Ooredoo (Qatar Telecom) have been selected as the two successful applicants. The expression of interest
floated by Myanmar for two telecom licences received application from 91 entities and 12 including
Vodafone, SingTel, Telecom-Orange and Marubeni Corporation were shortlisted.
Cabinet nod for Yes Bank to hike foreign equity
The Cabinet Committee on Economic Affairs (CCEA) has approved the proposal of Yes Bank to increase
foreign equity through the qualified institutional placement (QIP) route envisaging an inflow of about
Rs.2,650 crore in foreign exchange. The CCEA, chaired by Prime Minister Manmohan Singh, said approval
to the private sector lenders proposal on the recommendation of the Foreign Investment Promotion Board
(FIPB) would result in foreign investment amounting to about Rs.2,650 crore being received in the country.
As per the CCEA approval, Yes Bank proposes to increase foreign equity participation up to 60 per cent
through a QIP of its equity shares to eligible non-residents and/or issue of GDRs (global depository receipts)
to eligible non-resident investors.
RBI notifies telecom as infrastructure sector
Telecommunications and telecom services has been included as infrastructure sub-sector, thus making it
eligible for easy bank financing in addition to overseas fund raising. Further, capital dredging, under the subsector Ports, and slurry pipelines have been included in infrastructure sub-sectors, RBI also said in a
notification. At present there are five sectors, transport, energy, communication, water and sanitation, and
social and commercial infrastructure, which are broadly classified as infrastructure. On June 25, RBI
extended the scheme for telecom companies to refinance their rupee loans taken for funding 3G spectrum
with long-term overseas borrowing till March 31, 2014.
India has to repay $172 billion debt by March 2014
The U.S. Federal Reserves hint that it could roll back its cumulative easy money policy seems to have
suddenly increased Indias vulnerability to slowing capital flows in the near future. In this context, Indias
short-term debt maturing within a year would seem to be a matter of concern against the current backdrop of
the declining rupee and the U.S. Feds possible change of stance on easy liquidity in future. Short-term debt
maturing within a year is considered by experts as a real index of a countrys vulnerability on the debtservicing front. It is the sum of actual short-term debt with one-year maturity and longer-term debt maturing
within the same year. Indias short-term debt maturing within a year stood at $172 billion end-March 2013.
This means the country will have to pay back $172 billion by March 31, 2014. India has accumulated a huge
short-term debt with residual maturity of one year after 2008.

63

Lulu Group boss tops Forbes list of Indian leaders in UAE

Lulu Group boss Yusuff Ali MA has topped the inaugural Forbes 100 top Indian leaders in the United Arab
Emirates. Mr. Ali, who heads the Abu Dhabi-based Lulu Group, also is featured in the latest Forbes
Billionaire list at a net worth of $1.5 billion. The ranking criteria for choosing the top business leaders
includes the history of the company, international reach, and international recognition among others.
Landmark Group Chairman Micky Jagtiani came in the second position, while BR Shetty of NMC group stood
in the third position.
Aurobindo Pharma gets USFDA nod for HIV infection tablets
Drug firm Aurobindo Pharma said it has received tentative approval from the US health regulator to
manufacture and market efavirenz, lamivudine and tenofovir disoproxil fumarate tablets used for treating a
type of HIV infection. The company has received the tentative approval from the US Food & Drug
Administration (USFDA) to manufacture and market these combination tablets in strengths of 600mg/300mg/
300mg.
CBDT rescinds profit-split method for computing tax liability
The Income Tax Department, has announced withdrawal of a controversial circular, and modification of
another one relating to taxation of R&D centres, which play a key role in software development. While the
circular relating to adoption of profit-split method (PSM) as a preferred mode for computation of tax liability
has been rescinded, another one relating to development centres will suitably be modified, said the Central
Board of Direct Taxes (CBDT). The circulars were based on a report of N. Rangachary Committee on
Taxation of development centres and IT sector.
Sanjiv Mehta to be new MD
Hindustan Unilever (HUL), has announced that Nitin Paranjpe, who is currently the companys Managing
Director and Chief Executive Officer, will move to the parent company and join Unilever Leadership
Executive (ULE) as President, Home Care. Mr. Paranjpe would take over at his new position from October 1,
2013. Mr. Paranjpe will be replaced by Sanjiv Mehta, who is currently Chairman, North Africa & Middle East
(NAME).
Mahindras, StanChart form housing JV
Mahindra Lifespace Developers, has entered into a joint venture arrangement with SCM Real Estate
(Singapore) Pvt. Ltd., an investment arm of Standard Chartered Bank, for developing housing projects in
India.
Hindustan Aeronautics Limited delivers 'Lakshya-1' aircraft to Bharat Dynamics Limited
Defence PSU Hindustan Aeronautics Limited said it has delivered the Pilotless Target Aircraft Lakshya-1 to
Hyderabad based Bharat Dynamics Limited (BDL). The aircraft was delivered on July 26 by HAL which is the
only company in the country producing UAVs (Unmanned aerial vehicles) like Lakshya-1. HAL has so far
produced 39 Lakshya-1 aircraft in its aircraft division situated at Bangalore that are currently under use by
Indian Air Force, Indian Navy and DRDO.
64

Tata Power arm to set up 28.8 MW solar plant

Tata Powers wholly-owned subsidiary Tata Power Renewable Energy Ltd. (TPREL) has announced plans to
develop a large photovoltaic-based solar power plant with an installed capacity of 28.8 MW in Satara district
of Maharashtra. The plant will be spread over 130 acres.Tata Power Distribution, the distribution arm of Tata
Power, has signed a power purchase agreement for 25 years to buy power from the solar plant.
Zuari shelves urea plant plan in Karnataka
Zuari Fertiliser and Chemicals has shelved a proposed Rs.5,000-crore urea plant in Karnataka over land
acquisition delays.Adventz Group firm Zuari had signed an agreement with the Karnataka government for
setting up the urea plant near Belgaum in north Karnataka. The agreement was signed during the tenure of
former Chief Minister B. S. Yeddyurappa.The company was planning to set up a 1.15 million tonne per
annum (mtpa) gas-based urea project, but from the beginning there were issues with the land acquisition for
the project.
Abdul Rahim Rather is new GST panel chief
Jammu & Kashmir Finance Minister Abdul Rahim Rather has been elected as the new Chairman of the
Empowered Committee of State Finance Ministers on GST.The post of Chairman of the FMs committee on
Goods and Services Tax (GST) has been lying vacant since June 17 when Bihar Finance Minister Sushil
Kumar Modi resigned following the JD(U)-BJP split in the eastern State.The new chief will have a formidable
task of pursuing the proposed new indirect tax regime (GST), which will subsume excise, service tax and
local levies.
Sebi allows preference to Tamil Nadu government in Neyveli stake sale
Sebi in a communication to the Disinvestment Department has said other states in which Neyveli's
generating units are located should also be given preference in allotment of shares."It has been decided...to
treat QIBs belonging to government of Tamil Nadu as separate QIBs...for the purpose of allotment in
IPP.Tamil Nadu government insisted that it would buy the entire central government stake that is being
divested in the state lignite mining and power producing company
US welcomes India's FDI decisions
The US has welcomed India's decision to increase foreign direct investment in key sectors like defence,
telecom and insurance.the point that international firms can play a very important constructive role in
developing the Indian retail sector, in a way that benefits Indian farmers and consumers as well as American
business.
RBI to maintain a status quo on policy rates: Dun & Bradstreet
The Reserve Bank is likely to maintain a status quo on policy rates in its monetary policy review later this
month amid sharp depreciation in rupee and inflationary pressure, says a report by global research firm Dun
& Bradstreet.According to the report, once the inflationary pressure abates and the rupee stabilizes, the
Central Bank's focus may shift towards promoting growth by easing policy rates.
65

RBI to compensate banks 25% of losses for reporting fake notes

The Reserve Bank will compensate banks 25 per cent of the losses for reporting of counterfeit bank notes of
Rs 100 and above to it and other authorities. It has been decided to compensate the banks 25 per cent of
the loss incurred in respect of counterfeit notes of Rs 100 and above detected by them and reported to RBI
and Police authorities. RBI further said that these instructions have become effective from July 1, 2013 and
the banks should commence reporting to RBI from August 2013.
SBI to charge customers Rs 60 per year for SMS alerts
State Bank of India (SBI) customers will have to pay Rs 60 per year for getting SMS alerts, a move which is
likely to be followed by other public sector lenders. The country's largest bank, which has about 18.5 crore
customers, did not specify whether the charges are for special alerts only or even debit or credit card
transaction alerts sent as per regulatory guidelines will also come under this. Private sector banks ICICI and
HDFC are already charging Rs 60 per year, excluding service tax, for sending special SMSes other than
withdrawal and deposit alerts to its customers. At present, service tax rate is 12 percent and education cess
is 3 percent of the service tax amount. Kotak Mahindra Bank charges Rs 25 per quarter for SMS alerts and
updates.
Hero MotoCorp to buy 49.2% stake in Erik Buell
India's two-wheeler maker Hero MotoCorp Ltd said its wholly owned unit in the United States has agreed to
buy a 49.2% stake in superbike company Erik Buell Racing for $25 million. As part of the agreement, Hero
MotoCorp's US unit has invested $15 million in Erik Buell on June 28, and the remaining $10 million will be
paid within nine months, the Indian company said in a statement to the Bombay Stock Exchange.
Tata, Ambani in race for bank licence
The Reserve Bank of India, said it had received 26 applications for new bank licences, with Tata Sons
among those seeking the right to set up the first new Indian banks since 2004. Other applicants include
Reliance Capital, controlled by Anil Ambani, and Aditya Birla Nuvo, part of the diversified Birla conglomerate.
. Licence winners are expected to be announced by the first quarter of 2014. The accompanying chart is the
list of companies that had applied for a licence.
EY names Mark Weinberger as global chairman
Mark Weinberger has become the global chairman and CEO of Ernst & Young, the professional services
organization, which has also announced the adoption of 'EY' as its global brand name. Weinberger sees
huge growth potential for EY in India, with an increasing number of organizations requiring its services.
Weinberger was the assistant secretary of the US treasury (tax policy) under president George W Bush and
he was appointed to the US social security advisory board by president Clinton.

66

Bharathi Cement gets rising star award

French firm Vicat Groups Bharathi Cement received Power Brands Rising Star-2013 award at a function
held recently in Las Vegas. The award was presented to M.Ravinder Reddy, Director, marketing of Bharathi
Cement and Head of Marketing-Vicat India. The Vicat Group operates in 11 countries and has three core
lines of businesscement, ready-mixed concrete and aggregates as well as elated activities.
India Ranks 66th
India ranked 66th in the Global Innovation Index 2013, published by Cornell University, INSEAD, World
Intellectual Property Organization (WIPO) and Confederation of Indian Industry (CII) as a knowledge partner.
The study ranked 142 economies across the world on their innovation capacity and efficiency. India ranked 1
in the Central and South Asia region followed by Kazakhstan and Sri Lanka, and 11th overall in Innovation
efficiency ratio. (Innovation efficiency reflects the Innovation output per unit of Innovation input in the
economy). The strength areas for India has been its Gross Capital formation (% of GDP) (Rank: 9),
Investment in new business (Rank: 20), Industrial Cluster Development (Rank: 29), Growth rate % of PPP
GDP/Worker (Rank:14), Computer & Info. Services exports (Rank:1), Creative goods exports (%) (Rank:11).
India ranked poor in the reas such as political stability (Rank:123), Ease of starting business (Rank: 128),
School life expectancy (Rank: 109), Pupil-teacher ratio (Rank:108), Knowledge absorption (Ran:122) and
others.
Telecom Commission approves hike in FDI to 100 per cent
The Telecom Commission has approved the enhancement of the foreign direct investment (FDI) limit in the
telecom sector from 74 per cent to 100 per cent. The cumulative FDI between 2000 and 2012 was Rs.57,079
crore or nearly $10 billion. The Telecom Commissions decision will now be submitted to the Union Cabinet
for its approval. The move comes on the eve of Finance Minister P. Chidambarams visit to the U.S. on July
11, followed by Telecom Minister Kapil Sibals week-long visit to the U.S. starting July 15. The announcement
also comes on the heels of new balance of payment challenges, with the rupee at an all-time low of nearly 60
per dollar. The National Telecom Policy 1994 allowed up to 49 per cent FDI in telecom services. Former
Telecom Minister Dayanidhi Maran increased the FDI limit to 74 per cent in 2005.
Service tax refund norms eased for SEZs
The Revenue Department said special economic zone (SEZ) developers and units will not be required to pay
tax on certain services for which they had to seek refund. The SEZs have been exempted from service tax.
However, the developers and unit owners have to first pay the tax and then claim refund. Approval
Committee of SEZs will specify such services. The government had decided to exempt the services on which
service tax was leviable (under Section 66B of the said SEZ Act), received by a SEZ unit or developer and
used for the authorised operation from the whole of the service tax, education cess, and secondary and
higher education cess.

67

Tata Power ties up funds for wind project in S.Africa

Tata Power has tied up funds for the 95 MW Tsitsikamma wind energy project in South Africa, which is
estimated to cost about Rs.1,750 crore. The project is being implemented by Cennergi, an equal joint
venture between Tata Power and South Africas Exxaro Resources.
ONGC loses race for Kashagan oil field
Oil and Natural Gas Corp (ONGC) has lost the giant Kashagan oilfield to the Chinese after Kazakhstan
blocked its $5-billion deal to buy U.S. energy major ConocoPhillips stake in the Caspian Sea oilfield. ONGC
Videsh, the overseas investment arm of ONGC, had struck a deal to buy ConocoPhillips 8.4 per cent stake
in Kazakhstans biggest oilfield, Kashagan for $5 billion.
Chidambaram asks banks to reduce Base Rate
In a bid to induce consumer demand through availability of cheaper funds, Finance Minister P.
Chidambaram, has exhorted public sector banks to review their minimum (base) lending rates and pass on
the benefits of rate cuts by the Reserve Bank of India (RBI) to borrowers to boost investment and spur
growth. RBI has gradually cut its short-term lending (repo) rate to the extent of 125 basis points since
January 2012, banks have largely been stingy in passing on the benefit and eased their own lending rates by
paltry 30 basis points to consumers. The Base Rate of the countrys largest lender State Bank of India (SBI)
was 9.7 per cent while the average lending rate of others PSBs was 10.2 or 10.25 per cent. Bank of India
announced a reduction in rates by 25 basis points to 10 per cent with effect from July 8. All PSBs are in
compliance of Basel capital requirement norms. Except four banks IDBI Bank, Indian Overseas Bank,
Bank of Maharashtra and Dena Bank all others have a CAR (Capital Adequacy Ratio) of eight per cent
and more.
SAT rejects Gillette India appeal
Gillette India will have to comply with the minimum 25 per cent public shareholding norms, as the Securities
Appellate Tribunal (SAT), has rejected an appeal by the company against Securities and Exchange Board of
Indias decision in this regard. Upholding SEBIs decision to reject a plan that involved an earlier promoter
entity of Gillette India being re-classified as a public shareholder, SAT also vacated an interim stay given to
the company on May 30.
RBI puts on hold new NCD norms for NBFCs
In a relief to non-banking lenders, the Reserve Bank of India, said the proposal to have a minimum gap of six
months for private placement of non-convertible debentures had been kept in abeyance for now. The apex
bank had issued a circular stating private placement of debt should not have more than 49 investors, and the
minimum subscription from single investor should be Rs.25 lakh. It had also stipulated the time frame
between two NCD issuances.

68

One out of 5 associate banks can be merged in FY14

State Bank of India (SBI) said it is in a position to merge one of the five associate banks in the current fiscal.
SBI has formed a a high-powered committee headed by SBI Managing Director S Vishwanathan to prepare
a report on merger of associate banks. The panel is expected to submit its report by the end of July 2013.
SBI did first ever amalgamation of its associate State Bank of Saurashtra in 2008, followed by State Bank of
Indore in August 2010. The countrys largest lender has five associate banks -- State Bank of Bikaner and
Jaipur, State Bank of Travancore, State Bank of Patiala, State Bank of Mysore and State Bank of Hyderabad.
Among these, the State Banks of Bikaner and Jaipur, State Bank of Mysore and State Bank of Travancore
are listed companies.
After 28 months, UTI finally gets MD in Leo Puri
Leo Puri has became the first non-IAS officer to lead UTI Mutual Fund, which has been headless since
February 2011 after then chief U K Sinha moved out to head Sebi. Puri's appointment also marks a break
from the convention as the board and the shareholders of the fifth largest fund house, in which the
government is the largest shareholder, agreed to split the post of chairman and managing director. The
Government holds its stake in UTI through State Bank of India, Punjab National Bank, Bank of Baroda and
Life Insurance Corporation which hold 18.5 per cent each, while US investment manager T Rowe Price owns
26 per cent.
Govt clears 8 FDI proposals worth over Rs 1,311 crore
Eight FDI proposals worth Rs 1,311.54 crore, including that of Norwegian telecom firm Telenor, have been
cleared by the government on the basis of FIPB approvals. The Foreign Investment Promotion Board (FIPB)
had approved these proposals on June 14, when it deferred a decision on Jet Airways' application to make a
preferential allotment of 24 per cent of equity shares to Etihad Airways. The FIPB, headed by Economic
Affairs Secretary Arvind Mayaram. Besides, the proposal of Multi Commodity Exchange ( MCX) to bring in
foreign investment was rejected by the board.
Canara Bank cuts lending, FD rates
Canara Bank has slashed base rate or the minimum lending rate by 0.3 percentage pointfrom 10.25 per cent
to 9.95 per cent for all loans and advances. It has also reduced the interest rate by up to 0.5 percentage
point on fixed deposits with select maturities. The new rates would be effective from July 8.
RBI notifies FDI norms, defines term control
The Reserve Bank of India, has notified foreign direct investment (FDI) guidelines, defining control of a
company. The notification of Press Note 2 and 3 of the Department of Industrial Policy and Promotion
(DIPP), which has been pending for the last four years, will be used to ensure that foreign direct investments
comply with FDI ceilings and other norms. A company is considered as controlled by resident Indian citizens
if the power to appoint a majority of the directors on its board is held by Indian companies and citizens.

69

Chandrasekhar set to head Nasscom

Former telecom secretary R Chandrasekhar will succeed Som Mittal as president of the $100-billion IT
industry's apex body Nasscom. Chandrasekhar, an IAS officer who joined the government in 1975, retired as
telecom secretary in March 2013.
I-T dept may make date of birth proof mandatory for PAN card
As part of its drive against fake Permanent Account Number, the Income Tax department is considering
making proof of date-of-birth mandatory for issuance of PAN card. The department might ask for proof of
date-of-birth for issuing a PAN card. Ration cards and rent receipts might no longer be accepted as proofs of
identity and address for issuance of a PAN card. In most cases of fraud, people have furnished fake ration
cards and rent receipts to get PAN card. Recently, the I-T department has found a number of individuals
possessing fake PAN cards as identity proof, 170 million people in India have PAN cards, while only 30
million of them file income tax returns.
MRPL keen to renew pact with STC Mauritius
Mangalore Refinery and Petrochemicals (MRPL), a subsidiary of Oil and Natural Gas Corporation (ONGC)
and a mini Ratna, is in negotiations for exporting a higher quantity of its products to Mauritius. MRPL had
signed the current agreement with STC of Mauritius in 2010 to export petrol, diesel and aviation turbine fuel
(ATF) to the island for three years. The quantity of all three exported products put together is 1.1 million
tonnes per year.
Welspun bags 32-MW solar projects in Punjab
Welspun Energy, India's biggest developer of solar projects, said it has been awarded 32 MW of solar
projects by Punjab. The projects, awarded by Punjab Energy Development Agency (PEDA) through a single
stage competitive bidding, are to be commissioned during the second quarter of 2014. At present, Punjab
has an installed solar capacity of 9 MW. With this project, Welspun Energy will be annually feeding 56 million
units of clean emission free energy into the Punjab state grid, for subsequent 25 years. About 53,261 tonnes
of CO2 emissions will be mitigated by this project on a yearly basis.
Videocon Mobile Services slashes GPRS rates by 90%
Videocon Mobile Services has slashed its GPRS rates by 90% across the telecom circles of Punjab,
Haryana, Gujarat, Madhya Pradesh and Chhattisgarh. The telecom firm is now offering data usage at a
reduced rate of 1paisa per 10kb from the earlier 10paisa per 10kb. The move enables consumer across the
four telecom circles to enjoy greater internet benefits. According to the new tariff, once the subscribers
exhaust their free 2G Data Pack quota, they can continue to access high speed mobile internet by just
paying 1paise per 10kb. Videocon said that its 2.75G EDGE network should provide better services than 2G
and closer to 3G.

70

Singapore set to replace Switzerland as top fin hub

Singapore will dethrone Switzerland in the next two years as the world's top centre for managing
international funds, as a global tax crackdown and tighter regulation weaken the Alpine nation's appeal to
investors. Switzerland, still the world's biggest offshore financial centre with $2 trillion in assets, came ahead
of rivals Singapore, London, Hong Kong and New York in the 2013 ranking, compiled by
PricewaterhouseCoopers as part of its Global Private Banking and Wealth Management Survey.
Vodafone offers free incoming calls on roaming at `5 per day
Country's second largest telecom player Vodafone has launched Rs 5 per day scheme offering free incoming
calls, cheaper outgoing calls and SMS rates during national roaming. The announcement by Vodafone
follows the launch of similar schemes by rivals Bharti Airtel and Idea Cellular.
7 pharma FDI proposals cleared
The Foreign Investment Promotion Board (FIPB) has cleared seven foreign direct investment (FDI)
proposals in pharmaceutical companies, while deferring three cases on concerns of ownership control. The
FIPB, headed by Department of Economic Affairs Secretary Arvind Mayaram, discussed 30 FDI proposals,
including 10 from the pharma sector. At present, 100 per cent FDI is allowed in the pharma sector through
the automatic approval route in the new projects but the foreign investment in the existing pharma
companies are allowed only after FIPBs approval.
NSE launches LIX 15 index
National Stock Exchange (NSE) has launched LIX 15 index, which will be available in the derivatives
segment. The index would be disseminated online, from July 8. The index includes 15 stocks, which are
available in the Future & Option segment. The weight of single stock in the index is capped at 15 per cent.
Raghavan takes over as CMD of IDBI Bank
IDBI Bank said M. S. Raghavan has taken charge as its chairman and managing director. Mr. Raghavan,
who joins the bank from Bank of India where he was an executive director, succeeds R. M. Malla, who
retired earlier. Mr. Raghavan is now a member of Working Group on Model e-governance Plan for Indian
Banks Association, among other committees.
Hero MotoCorp enters Africa
Hero MotoCorp has announced its entry into the African market with the launch of its products in Kenya.
Hero MotoCorp (HMC) has set up an assembly unit in Kenya and has also partnered Ryce East Africa to sell
products in the country. Under the alliance, Sameer Group, a part of Ryce East Africa, will be the authorised
distributor of HMCs range of two-wheelers in Kenya. The company will also be commencing operations in
Burkina Faso and Ivory Coast.

71

Sebi freezes voting rights of Gillette India promoters

Market regulator Sebi took strong action against promoters of Gillette India for non-compliance to minimum
public holding norms and ordered freezing of all corporate benefits arising out of their stake in the company.
Besides, Sebi also prohibited the promoters and directors of the company, which is part of global consumer
goods giant P&G, from dealings in the shares of Gillette India, except for meeting the minimum 25 per cent
public shareholding limit, till the time of their compliance to this requirement. Gillette India is jointly promoted
by The Procter and Gamble Co and Poddar Group. Promoters hold 88.76 per cent in Gillette.
Taxpayers to get unique number for complaints
Taxpayers having grievances regarding their I-T refunds and tax computations will now get a unique
acknowledgement number with an assurance that their complaint will be resolved within two months time.
The newly introduced number will not add to confusion and will be different from the existing unique numbers
issued by the Income Tax department to taxpayers, like the PAN, TAN and Unique Transaction Number
(UTN), authorities said.
United India gets claims from 4 hydro projects in Uttarakhand
United India Insurance has received 37 claims for settlement so far for loss and damage to properties in the
Uttarakhand flash floods. Chairman-cum-Managing Director of United India Insurance Milind Kharat told that
four of the claims were related to hydel power projects and the rest were related to loss of property such as
buildings, machinery, and vehicles. The estimated claim settlement amount for these is about Rs.500 crore.
The company plans to revise the health insurance premium. It is yet to decide the rate of increase and
whether it would be a revision across the board for all its health insurance products.
New Pension System top of the charts on subscribers, returns
The New Pension System (NPS), which was introduced by the Centre with a view to develop the pension
sector, has shown a sharp growth in the subscriber base and corpus over the last three years, buoyed
largely by the more impressive return of the scheme as compared to peers. The Pension Fund Regulatory
and Development Authority (PFRDA), has already billed the NPS as the cheapest retirement product and
also the highest returns generating scheme, especially as the weighted average return as on March 31, 2013
calculated on the basis of Net Asset Value of the NPS Schemes ranged between 8.4 per cent and 14.2 per
cent.
India to meet poverty reduction goal by 2015
Despite widespread poverty in the country, India is on track to meet the United Nations' Millennium
Development Goal (MDG) of poverty reduction by 2015. The UN Millennium Summit in 2000 had agreed
upon achieving eight goals with sub-targets covering poverty, hunger, health, gender equality, education and
environmental indicators by 2015. The report found that South-Eastern Asia reached hunger reduction target
ahead of 2015 deadline. However, Southern Asia is lagging behind.

72

18% of single working women make own investment decisions

Only 18 percent of single working women make their own investment decisions and 77 percent of the fairer
sex depends on spouse or parents for their investment decisions. Only a minuscule 23 percent of the
surveyed working women claim to be sole decision makers, when it comes to making their own investments.
According to the study, while 92 percent of working women claim to be involved in the investment decisionmaking process, 70 percent of these women are actually joint decision makers and a majority of these (52
percent) are only informed about the investment decisions which have already been made.
Asset financing NBFCs allowed to access ECB market
Non-banking finance companies (NBFCs) involved in asset financing have been allowed to access the
external commercial borrowing (ECB) market. The access is subject to certain conditions, including availing
of ECB under the automatic route with minimum average maturity of five years to finance import of
infrastructure equipment for leasing to infrastructure projects. Among others, NBFC-AFCs availing of ECB
through foreign currency bonds (FCB) will be allowed to raise capital only from markets, subject to
regulations by the host country complaint with Financial Action Task Force (FATF) guidelines. Such ECBs
can be availed up to 75 per cent of owned funds of NBFC-AFCs, subject to a maximum of $200 million or its
equivalent per financial year.
Union Bank cuts Base Rate
Union Bank of India has reduced its minimum lending rate or Base Rate by 0.25 percentage points to 10 per
cent effective July 8. The card rate for home loans has come down to 10 per cent, while the same for auto
loans would be 10.45 per cent.
Novartis, BioE join hands for typhoid, paratyphoid vaccines
Switzerland-based drug major Novartis said it has entered into a development and licensing agreement with
Biological E (BioE) for two vaccines against typhoid and paratyphoid fevers. Under the licence, Novartis
Vaccines Institute for Global Health (NVGH) will transfer technology to Hyderabad-based BioE, which will
have financial and operational responsibility for manufacturing, further clinical development, approval and
distribution in the developing world. The typhoid vaccine (Vi-CRM197) has achieved 'Proof of Concept' and
has successful Phase 2 results. It will be transferred to BioE.
Ganesha coins minted in Germany
Dubbed as the first "currency coin" on Lord Ganesha, a limited collectors' edition minted in Germany is being
issued by the government of the Ivory Coast in West Africa. The coins from Germany's Mayer mint are made
of pure silver with a coloured image of Lord Ganesha on 'peepal' leaves inscribed with the Sanskrit 'sloka'
'Vakratunda Mahakaya'. Weighing 25 gm, the SWAROVSKI crystal studded FRANCS CFA 1001 coin is
available for booking at Rs 8,001 and will be delivered on the auspicious occasion of Ganesh Chaturthi on
September 9. The Ganesha coins have not been issued by any government and are therefore treated as
bullion unlike commemorative currency coins which have a much higher value.
73

India, Albania sign taxation pact

India and Albania have signed the double taxation avoidance agreement (DTAA) to facilitate the exchange of
banking information and help check tax evasion. The pact incorporates provisions for effective exchange of
information between tax authorities of the two counties in line with latest international standards, including
exchange of banking information and supply of information without recourse to domestic interest. Besides, it
said, business profits will be taxable in the source state if the activities of an enterprise constitute a
Permanent Establishment (PE) there. The agreement provides for fixed place PE, building site, construction
and installation PE, service PE and agency PE.
To recover bad loans, banks will now shame the guarantors too
With bad loans or non-performing assets (NPAs) rising sharply, banks have hit upon a new strategy to force
borrowers to pay their dues besides publishing photographs of defaulters in newspapers, they have also
decided to put alongside pictures of those who stood guarantee for those loans. Public sector banks have
been publishing photographs with names and addresses of wilful loan defaulters in newspapers and on
notice boards of their branches. The move comes on the heels of 39 listed banks reporting a 36 per cent rise
in gross NPAs to Rs 1,79,431 crore as on March 31, 2013. Allahabad Bank became the first of the banks to
take this unusual step.
RBI tells oil firms to buy dollar from single PSU bank
With the rupee depreciating sharply against the dollar, the Reserve Bank of India, has ordered state-owned
oil companies to purchase their dollar requirement from a single public sector bank for every daily transaction
so as to curb volatility in the currency. The RBI issued orders to Indian Oil Corporation, Hindustan Petroleum
Corporation, Bharat Petroleum Corporation and Mangalore Refinery to stop seeking quotes from several
banks for their $8-8.5 billion of monthly U.S. dollar requirement. IOC, the nations largest refiner, will buy their
monthly requirement of $3.8-4 billion from State Bank of India.
MRPL upgraded to Schedule A
Mangalore Refinery & Petrochemicals Ltd. (MRPL), a subsidiary of Oil and Natural Gas Corporation
(ONGC), and a Mini Ratna Category 1 public sector undertaking (PSU), has been upgraded by the
Department of Public Enterprises (DPE) from Schedule B to A. The DPE categorises Central PSUs into four
schedules namely A, B, C and D, based on laid down norms and criteria. As on March 31, 2012, there
were 61 Schedule A PSUs across all sectors. In the oil and gas sector, MRPL will be the eighth company to
be in the list.
Import duty on sugar hiked to 15 per cent
The Union government has hiked the import duty on sugar to 15 per cent from 10 per cent to help the
industry clear Rs.9,000 crore cane arrears to farmers. In a notification issued by the Central Board of Excise
and Customs (CBEC), the duty on raw and white (refined) sugar has been raised to 15 per cent.

74

Sebi tightens currency derivative rules to tame volatile domestic currency

Sebi has tightened the exposure norms for currency derivatives to check any large scale speculative activity
in the forex trade. The decision, came after consultations with banking regulator RBI. Securities and
Exchange Board of India (Sebi) keeps a tab on capital market, including trading in currency derivatives.
Currency derivative trading allows traders and investors to take forward views on various currency pairs,
including rupee-dollar. In recent times, there have been apprehensions that large-scale speculations on
currency pairs is adding to the downward pressure on the rupee, which fell to a new low of 61.21 against the
US dollar.
IMF lowers India's growth projection to 6.3%
Lowering India's growth projections a notch to 6.3 percent in 2014, the International Monetary Fund (IMF)
has forecast that emerging market and developing economies are now expected to grow at a more moderate
pace. India's growth projections at 6.3 percent for 2014 and 5.6 percent for 2013 in the July update of IMF's
World Economic Outlook are, respectively, 0.1 and 0.2 percentage points lower than forecast in the April
2013 WEO. At 5 percent in 2013 and about 5.5 percent in 2014, growth in emerging market and developing
economies as a whole would be some 0.25 percentage point slower.
Idaho gets $420,000 from Ranbaxy
The U.S. State of Idaho has said that it has received almost $420,000 from drug major Ranbaxy as part of a
$500 million settlement that the Indian firm had signed with U.S. authorities. Idaho has recovered nearly
$420,000 in a legal settlement with pharmaceutical manufacturer Ranbaxy.
Oriental Bank cuts lending rate
Oriental Bank of Commerce, has announced a cut of 0.25 percentage point in the minimum lending rate to
10 per cent. The new rate would be effective from July 22.
Cabinet clears STC, ITDC disinvestment
The Cabinet Committee on Economic Affairs, has approved disinvestment of government stake in State
Trading Corporation (STC) and India Tourism Development Corporation (ITDC), which would fetch around
Rs.30 crore to the exchequer. The Disinvestment Department had sought Cabinet nod to offload 5 per cent
stake in ITDC, and 1.02 per cent in STC through the offer for sale route. The Centre at present holds 92.11
per cent stake in ITDC and 91.02 per cent stake in STC.
Govt approves DGCA replacement
The Government has cleared a proposal to replace DGCA with a new aviation regulator with full operational
and financial autonomy. The new regulatory body would be called the Civil Aviation Authority (CAA) and
would replace the Directorate General of Civil Aviation (DGCA). It will administer and regulate civil aviation
safety and manage safety oversight over air transport operators, air service navigation operators and
operators of other civil aviation facilities. CAA is being established to meet the standards set by UN's
International Civil Aviation Organisation (ICAO) and in line with aviation regulators in other countries like the
Federal Aviation Administration of the US and the UK's CAA.
75

Govt approves modified industrial infra upgradation scheme

The Government has approved the Modified Industrial Infrastructure Upgradation Scheme (MIIUS) with an
outlay of Rs1,030 crore during the 12th Five Year Plan period ending March 2017. Of the total outlay, Rs450
crore will be used for committed liability and the remainder for taking up 14 to 16 new infrastructure
upgradation projects in existing or greenfield industrial clusters. The decision was taken by the Cabinet
Committee on Economic Affairs headed by Prime Minister Manmohan Singh. In 2003, an Industrial
Infrastructure Upgradation Scheme (IIUS) was launched to enhance the industry's competitiveness by
providing infrastructure through the public-private partnership model in selected functional clusters.
Axis Bank to open branch in UK
Axis Bank, India's third-biggest privately owned lender, has been granted a banking licence in Britain and will
open its first branch in the London. Axis Bank UK's chief executive Cyril Anand said it would pursue
corporate and retail banking opportunities in Britain and Europe having already expanded outside of India
into Singapore, Hong Kong and Sri Lanka.
Lenovo becomes world's top PC supplier
Chinese computer maker Lenovo said it has pipped US-based Hewlett-Packard (HP) to become the world's
number one personal computer supplier. Lenovo, has pipped HP to acquire the global No 1 position in PC
shipments, as per latest reports released by IDC and Gartner.
U.K. regulator recalls 16 Wockhardt drugs
The U.K. drug regulator Medicines and Healthcare products Regulatory Agency (MHRA), said it had issued a
precautionary recall for 16 medicines made by Wockhardt at its Waluj unit due to manufacturing
shortcomings. The 16 prescription only medicines include those used for the treatment of infections, high
blood pressure, diabetes, epilepsy, depression, schizophrenia, Parkinsons disease, dementia in Alzheimers
patients and thyroid conditions. The Waluj facility makes injectables and solid dosages.
HPCL to set up petrochemical complex at Barmer
The Rajasthan Government and Hindustan Petroleum Corporation Limited (HPCL) have signed a joint
venture agreement to set up a refinery-cum-petrochemical complex in Barmer district. The State Government
and HPCL in the joint venture company would be 26 per cent and 74 per cent, respectively. The refinery will
source crude from the oil fields in western Rajasthan, and also import crude and manufacture various
petroleum and petrochemical products.
DRL unveils Detabine for injection
Dr. Reddys Labs has unveiled Decitabine for injection, a generic equivalent of Dacogen in the US market.
The Dacogen brand, approved by the US FDA, has US sales of about $260 million MAT for the 12-month
period ending July 2013.

76

Glenmarks generic anti-epilepsy drug in patent row

Glenmark Generics has confirmed that it filed Abbreviated New Drug Applications (ANDAs) for Lacosamide
tablets and oral solutions with the U.S. Food and Drug Administration (US FDA) with a paragraph IV
certification for the Orange-book listed patent. Glenmark said that its ANDA products are generic versions of
Vipmat, which are used in the treatment of partial-onset seizures in adults with epilepsy. Pharmaceutical
companies list their patents in the Orange Book which is managed by the US FDA, and a generic pharma
company is required by law to notify the patent owner about its plans to sell a product that infringes the
patent. Glenmark Generics is a subsidiary of Glenmark Pharmaceuticals, and is a generic and active
pharmaceutical ingredient (API) player. It has a presence in North America, and is developing its presence in
the EU. It sells its free dosage forms (FDF) products in the U.S. and EU and FDF oncology products in South
America.
DLF sells 11.2 MW wind mills in Karnataka
DLF, has announced sale of its 11.2-MW wind turbines in Karnataka for nearly Rs.30 crore as part of the
companys strategy to exit non-core businesses. The company has entered into an agreement with Delhibased private firm Goyal MG Gases to sell Karnataka wind mills, and the deal is expected to get completed
by end of 2013.
Sustainbility code launched for tea
The Indian tea industry would develop the Trustea code for production of safe and hygienic teas as part of a
sustainability initiative programme.It involves the introduction of a country-specific sustainability code, which
has been tailor-made for the Indian tea industry. It encompasses all aspects of tea production and seeks to
embrace sustainability principles to boost productivity, safety and quality. The code which will be first
launched on a pilot scale and later scaled up to bring within its fold 500 million kg of tea from 600 factories
within five years. India produces about 1100 million kg of tea annually.
Chinese firm to build pilot training centre in Singapore
A private Chinese company, the Sichuan Haite High-Tech Co. Ltd., will invest 95.3 million Singapore dollars
to set up an aviation training centre in the country. The Haite High-tech Singapore Aviation Training Center is
expected to be operational by early 2015, making it the largest pilot training centre in Singapore. Sichuan
Haite High-Tech Co. Ltd. is currently the only company in the business of aviation maintenance listed on the
country's stock exchange. Its total asset value stands at 40 billion yuan (USD 6.5 billion).
India promises continued credit lines to Ethiopia
The Exim Bank of India's line of credit (LoC) to African countries is growing in proportion to the Indian
companies' interest in investing in the continent, says T.C.A. Ranganathan, its chairman and managing
director. EXIM Bank has been extending credit in Africa for the past 15 years and in Ethiopia for about eight
years. Till date, a more than USD 1 billion LoC has been provided for the development of three sugar
companies in Ethiopia. Exim Bank has partnered in setting up the Global Network of Exim Banks and
Development Finance Institutions (G-NEXID) under the auspices of the United Nations Conference on Trade
and Development (UNCTAD).
77

RBI imposes fine of Rs 49.5 crore on 22 banks

The RBI has imposed fines totalling Rs 49.5 crore on 22 private and public sector banks including SBI, PNB
and Yes Bank for violating know your customer/anti-money laundering norms. It also gave cautionary letters
to seven including Citibank and Stanchart following an expose made by an online portal. A penalty of Rs 3
crore each has been imposed on State Bank of India (SBI), Bank of India, Canara Bank, Bank of Baroda,
Central Bank of India, Indian Overseas Bank and Federal Bank. United Bank of India, Lakshmi Vilas Bank,
Punjab National Bank, Jammu & Kashmir Bank and Andhra Bank were slapped a penalty of Rs 2.5 crore
each.
DGH refuses to approve RIL's $3.5 bn plan for NEC-25
The Directorate General of Hydrocarbons (DGH) has refused to approve Reliance Industries' USD 3.5 billion
plan for developing gas discoveries in block NEC-25, off the Odisha coast, as the company had not done the
prescribed tests to confirm the finds. RIL had in March-end submitted a USD 3.5 billion Integrated Field
Development Plan for producing 10 million standard cubic meters per day of gas from the discoveries D-32,
D-40, D-9 and D-10 in the Block NEC-OSN-97/2 (NEC-25) by mid-2019.
Women bankers may get leg-up with Mahila Bank
Women bankers looking for better career prospects, while also boosting financial access for the fairer sex,
will soon have the option to move to the Bharatiya Mahila Bank (BMB) that will be ready to commence
operations by November 2013. While the government is yet to finalize the chairperson for the all-women
bank. Punjab National Bank executive director Usha Ananthasubramanian is the frontrunner for the job. The
finance ministry has written to public sector banks to allow women employees on deputation - a tough ask
given that most state-run lenders are already complaining of staff shortage. But with a new bank in place,
bankers expect not just better work conditions for women employees but even faster promotions.
Iran agrees to take all oil payments from India in rupees
Iran has agreed to take payments for oil it sells to India entirely in rupees after US and western sanctions
blocked all other payment routes. India has been, since July 2011, paying in euros to clear 55 per cent of its
purchases of Iranian oil through Ankara- based Halkbank. The remaining 45 per cent due amount was
remitted in rupees in accounts Iranian oil company opened in Kolkata-based Uco Bank. Payments in euro
through Turkey ceased from February 6, 2013 but the rupee payments for 45 per cent of the purchases
continued through Uco Bank.
Vaz panel warns against UK immigration backlog
A House of Commons committee headed by Indian-origin British MP Keith Vaz has issued a stern warning
against the mounting immigration backlog in the UK. The all-party Home Affairs Select Committee has found
that the number of pending cases involving foreigners coming into the country had jumped to 502,000 at the
end of 2012, which could take until the year 2050 to clear.

78

India tops list of Dubai's food import partners

India has been ranked the first among Dubai's food import partners with a share of 14 percent, amounting to
over Rs 95 billion. Dubai's food foreign trade increased over the past two years from Rs 782.7 billion in 2010
to Rs 929.4 billion in 2011. Brazil had an 11 percent share of Dubai's food imports, representing a value of
Rs 71.4 billion (4.38 billion dirhams), while the United States had 9 percent at a value of Rs 63.5 billion (3.9
billion dirhams). Rice topped the list of Dubai re-exports with a share of 12 percent representing (963 million
dirhams), followed by nuts with a share of 11 percent accounting for 867 million dirhams then sugar with a
share of 6 percent equivalent to 527 million.
ONGC Videsh most internationalised Indian company
ONGC Videsh has emerged as the Indian company having the most international exposure, replacing Tata
Steel. ONGC Videsh has topped the list of 15 most internationalised Indian companies, prepared by Indian
School of Business (ISB) along with Brazil's Fundao Dom Cabral. The company is the only public sector
enterprise in the league, which features six Tata group companies. Besides, Tata Steel at the second spot,
which was on top in year 2012, others are Tata Global Beverages (3), Tata Communications (6), Tata Motors
(9), Tata Consultancy Services (12) and Tata Chemicals (15). The methodology is based on the
Transnationality Index (TNI) developed by the United Nations Conference on Trade and Development
(UNCTAD).
OBC cuts interest rates on select maturities by 0.25%
State-owned lender Oriental Bank of Commerce has slashed interest rates on term deposits of Rs 5 crore
and above on select maturities by 0.25 percent. The bank has slashed interest rates on maturities of 180269 days to 8 percent from 8.25 percent earlier.
RIL gets licence to lay pipeline to transport CBM gas from Shogapur
Reliance Industries Limited (RIL) has won the licence to lay a 312-km pipeline to transport coal bed methane
(CBM) gas produced from the companys Shogapur block in Madhya Pradesh to Phulpur in Uttar Pradesh.
The Petroleum and Natural Gas Regulatory Board (PNGRB) issued the necessary authorisation on July 11
to Reliance Gas Transportation Infrastructure Ltd. (RGPL), an arm of RIL, to lay the pipeline, which will have
a capacity to transport 4.3 million metric standard cubic metres per day (mmscmd) of gas, including 0.875
mmscmd which will be available for any third-party for open access on non-discriminatory basis.
REpower sets up wind farm in Belgium
Suzlon Energy said its arm REpower Systems SE has installed turbines with a capacity of 325 MW at a wind
farm in Belgium.
Santosh Nayar new CEO & MD of IFCI
IFCI, said Santosh B. Nayar had been appointed as the Chief Executive Officer and Managing Director of the
company. Ashok Kumar Jain had been inducted as additional director of IFCI.
79

Government allows 100% FDI in telecom, hikes insurance to 49%

The Government has announced second round of big ticket reforms by liberalising various sectors including
100 per cent in telecom and higher caps in insurance and defence sectors inviting instant reaction from
industry bodies that the move will bring fresh investments into the country and boost economic growth. It was
decided to allow 49 per cent FDI in single brand retail under the automatic route and beyond through the
Foreign Investment Promotion Board (FIPB) route.
Slow progress of reforms to pull down GDP to 5.8% in 2013
Slow progress of economic reforms is expected to pull down India's growth to 5.8 per cent in the 2013
calender year from 6 per cent projected earlier, an Asian Development Bank (ADB) report. India's growth fell
to a decade's low of 5 per cent in fiscal 2012-13. ADB in April had projected a growth rate of 6 per cent for
India in 2013.
Christie's to become first international house to hold auction in India in December 2013
Christie's, one of the two best known global auction houses, will become the first international name to hold
an auction in India when it puts Indian art under the hammer in Mumbai in December 2013. The decision to
hold an auction of Indian art on Indian soil comes nearly two decades since the 247-year-old auction house
opened its office in the country, in Mumbai, in 1994. The development comes close on the heels of another
important move by Christie's in the region, it recently announced that in September 2013, it will become the
first international auction house to operate independently in mainland China with a sale in Shanghai.
HPCL to partner Shapoorji Pallonji Group for LNG terminal
Hindustan Petroleum Corporation Ltd (HPCL) and Mumbai-based infrastructure major Shapoorji Pallonji will
sign a joint venture pact to set up a terminal for import of liquid gas (LNG) on Gujarat coast at a cost of about
Rs 5,000 crore. The state-owned firm and SP Ports Pvt Ltd, a unit of Shapoorji Pallonji Group, plan to set up
the liquefied natural gas (LNG) import terminal at Chhara in Gujarat's Junagadh district through a 50:50 joint
venture, HPCL Chairman and Managing Director S Roy Choudhury said. Gujarat already has two functional
ports at Dahej and Hazira. A third one is under planning by Gujarat State Petroleum Corp (GSPC) and
Larsen & Toubro (L&T) at Mundra. The Chhara terminal would be the fourth in the state.
RBI opens Rs 25,000 cr window to help MFs
The Reserve Bank has opened a special borrowing window of Rs 25,000 crore to help the crisis-ridden
mutual funds tide over liquidity problems. As a contingency measure, RBI has decided to conduct a special
3-day repo auction under which banks would be encouraged to raise funds totalling Rs 25,000 crore at 10.25
per cent for onlending to the mutual funds. In 2008 financial crisis also the RBI came out with similar facility
to support mutual funds.
Sebi rejigs its advisory committee on mutual fund
Sebi has revamped its committee that advices the market regulator on matters related to regulation and
development of mutual fund industry. The 15-member advisory committee on mutual funds is headed by
80

Janki Ballabh, former Chairman of SBI. The advisory committee is mandated to advise Securities and
Exchange Board of India (Sebi) on issues related to regulation and development of mutual fund industry.
Besides, it can advice the regulator on disclosure requirements and measures required for change in the
legal framework to introduce simplification and transparency in the mutual fund regulations.
L&T wins Rs 2,085 crore contract for building expressway in Oman
Engineering and construction major Larsen & Toubro (L&T) said it has won a Rs 2,085 crore overseas order
from Oman government for construction of Al Batinah Expressway. The project is scheduled to be completed
in 36 months and involves building a 50-km four-lane dual carriage expressway, two grade separated
interchanges, seven overpass, five bridges and cross drainage work, as per international standards.
All-women bank plans 39 units in first year
The country's first all-women bank, Bharatiya Mahila Bank is eyeing to open a modest 33,400 customer
accounts through 39 branches across the country in its first year. However, it hopes to set up 778 branches
with 55 lakh customer accounts over the next seven years. The bank, which is set to be launched by
November 2013, is also expected to set up 127 ATMs in the country in the first year of its operations. To be
set up with an initial outlay of Rs 1,000 crore, the bank will open with six branches one each in the four
metro cities, the fifth one in central India and the sixth in the north east. The bank is likely to be
headquartered at New Delhi. Usha Ananthasubramanian, executive director, Punjab National Bank is one of
the top contenders for the post of chairperson.
ArcelorMittal scraps Odisha steel project
In the biggest foreign investment pullout, the worlds largest steelmaker ArcelorMittal scrapped its $12billion(Rs 50,000 crore) steel plant in Odisha over inordinate delays, problems in acquiring land and securing
iron ore linkages. The development comes just after South Korean steel major Posco pulled out of its Rs
30,000-crore steel mill in Karnataka and the government widened its doors to foreign direct investment for a
dozen sectors. ArcelorMittals proposed plant was among the biggest foreign direct investments India has
attracted.
Dual -use remittance card launched
A global money transfer firm has launched a new remittance card in India in partnership with the State Bank
of India, which can be used for both receiving remittances from abroad and making withdrawals at ATMs.
The State Bank Xpress Money Card, which will initially be available in Kerala and eventually cover other
States, is a product of partnership between Xpress Money, State Bank of India and UAE Exchange and
Financial Services Ltd. The card is a prepaid product which combines features of both debit and remit as it
allows users to receive remittances from abroad and can also be used at ATMs and for e-commerce
transactions.

81

Panel set up to frame draft policy on extension of PSCs

The Petroleum and Natural Gas Ministry has constituted a committee to frame a draft policy on granting
extension to production sharing contracts (PSCs) awarded to private joint ventures where the economic life
of the field is not yet over when the PSCs get due for expiry. The panel will be headed by Additional
Secretary and Financial Advisor to Petroleum Ministry S.C. Khuntia, and comprise the Director-General of
the Directorate General of Hydrocarbons (DGH), Joint Secretary (Exploration), Joint Secretary (P-II) Ministry
of Finance, Advisor (Energy), and Deputy Legal Advisor, Ministry of Law and Justice.
EGoM to finalise fresh bidding norms for UMPPs
The Empowered Group of Ministers (EGoM,), headed by Defence Minister A.K. Antony, will meet on July 25
to take a call on fresh bidding norms for ultra mega power projects (UMPPs). For the UMPPs, the
government has made a provision for making fuel source available in advance. UMPPs are coal-based
projects with an average capacity of 4,000 MW. The new bidding norms will apply to Case-I and II projects.
The government has so far allotted four UMPPs, of which three have been bagged by Reliance PowerSasan (Madhya Pradesh), Krishnapatnam (Andhra Pradesh) and Tilaiya (Jharkhand). Tata Power has
already commissioned the Mundra UMPP in Gujarat.
FDI in defence may be capped at 49 per cent
The government has decided to fix 49 per cent as the upper limit for foreign direct investment (FDI) in
defence manufacturing, subject to approval by Cabinet Committee on Security (CCS). A note, approved and
circulated by the Prime Ministers Office (PMO) after chaired by the Prime Minister, states that FDI up to 26
per cent in defence manufacturing would be through the Foreign Investment Promotion Board (FIPB).
Exim Bank extends $19.5 million credit to Vietnam
Export-Import Bank of India (Exim) has extended an additional line of credit of dollar 19.50 million to the
Vietnam government for financing two projects. Exim Bank, till date, has extended three lines of credit
(including the latest one) to Vietnam valued at dollar 91.50 million. Currently, Exim Bank has in place 173
LOCs covering over 75 countries in Africa, Asia, Latin America, Europe and the CIS, with credit commitments
of over USD 9.13 billion available for financing exports from India.
ONGC bags safety award
Oil and Natural Gas Corporations Rajahmundry Asset has bagged the Oil Industry Safety Directorates Best
Overall Safety Performance of Oil and Gas Onshore Assets-2011-12. It also won the Most consistent safety
performer award for the year 2011-12. P.Krishna Rao, Group General Manager-Asset Manager of
Rajahmundry Asset, received the award from Union Minister for Petroleum and Natural Gas Veerappa Moily
in New Delhi.

82

India second largest investor in London

India has emerged as the second largest investor in the city of London with Indian companies led by
software major Infosys wooed by the investment fervour generated by the 2012 Olympic Games in the British
capital. Software services firm Infosys leads the charge of inward foreign direct investment (FDI) made by a
total of 28 Indian companies, which generated 429 additional jobs for the British economy in 2012 alone.
The US remains the biggest investor into London, bringing in 1,694 jobs, with China coming in third with 365
jobs.
Ambassador, the worlds best taxi
Indias virtually indestructible Hindustan Ambassador car has won the crown for the worlds best taxi at the
Beaulieus World of Top Gear motorsport show. In the second instalment of the show, now in its 20th series,
Top Gears executive director Professor Richard Hammond organised a world taxi shootout to find which car
could claim the crown as the worlds best taxi. And, the winner was Indias Hindustan Ambassador.
Aircel launches 'Fuccha Pack' for Delhi college students
Telecom company Aircel has launched a value for money product for college students in Delhi. Called
'Fuccha Pack', the product will provide students with discounted voice calls, data and text services. The
Fuccha Pack is available at first recharge of Rs 149. The first recharge of Rs 149 will offer benefits of 333
local and STD calls, Aircel to Aircel (local) at 10p/min, Aircel to other (local and STD calls) at 50p/min, free
1500 local and national SMS, 1GB of 2G data and an FTT in the next recharge of Rs 51 and above.
Recently, Aircel had launched STD at 25p/min in Delhi and full talktime on Rs 100 and above.
UK bans Coca-Cola ad
Authorities in the United Kingdom have banned a Coca-Cola television ad because they say it can mislead
viewers about how easy it is to burn off the calories in a Coke.
Anoop Singh to quit as IMFs A-Pac director
International Monetary Fund (IMF) said its Asia Pacific Director Anoop Singh has decided to quit. An IMF
veteran Mr. Singh had earlier served as special advisor to the Governor of the Reserve Bank of India (RBI).
Mr. Singh, Director of the Asia and Pacific Department at the IMF, has notified Managing Director Christine
Lagarde of his intention to retire from the Fund.
ONGC inks pact with RIL
Oil and Natural Gas Corporation (ONGC) said it had signed an agreement with Reliance Industries Ltd. (RIL)
to explore possibility of hiring the latters infrastructure facilities on the east coast.
Natco Pharma gets favourable ruling
Natco Pharma, said it had obtained a favourable ruling from a U.S. Court that paved way for launch of
generic Copaxone used for treating multiple sclerosis through its marketing partner Mylan Inc, during May,
2014. Copaxone (Glatiramer Acetate) is used in the treatment of relapsing-remitting multiple sclerosis.
83

DRL launches Alzheimers drug in U.S.

Dr. Reddys Laboratories Ltd. (DRL) said it had launched generic Donepezil Hydrochloride tablets, used to
treat Alzheimers disease, in the U.S. Market. The company introduced Donepezil Hydrochloride tablets of 23
mg strength on July 26, following approval from the U.S. Food and Drug Administration for its abbreviated
new drug application.
All bank branches to have one ATM before March, 2014
Public sector banks have been asked set up ATMs in all branches by March, 2014 to enable customers in
rural pockets to do banking round-the-clock, Finance Minister P Chidambaram has said. The Finance
Minister has also asked banks to take steps to set up 8,000 branches in the country, especially in rural areas.
Tata Steel eyes UK firms Indian assets
Indias largest steelmaker, Tata Steel, has set its sights on the Indian iron ore assets of one of Britains
largest independent steel trading companies Stemcor. The British firm has run into trouble as a result of a
global slowdown in the steel industry and is in rescue talks with banks after de-faulting on more than $1
billion of loans. The cash crunch has forced the company to offload some of its physical assets, including its
iron ore mine in Orissa which could fetch an estimated $800 million. Iron ore is a key ingredient to produce
steel and India is a main supplier of spot cargoes to China, the worlds largest buyer of the metal.
RBI eases curbs on payment gateways
The stand-off between electronic payment gateway PayPal and the Reserve Bank of India (RBI) appears to
be winding down, with the central bank allowing all such gateway service providers to substantially increase
their export-related transaction value limits. Indian merchants that use PayPal will now be able to receive up
to $10,000 per transaction, with the company increasing the receiving limit from the earlier $3,000. The RBI
had earlier effectively grounded service providers like PayPal when it issued a circular that mandated that
the value of transactions should not exceed $500. This was later increased to $3,000 nearly two years ago.
Sebi tightens disclosure norms for hedge funds
Sebi has tightened disclosure norms for hedge funds and other Alternative Investment Funds using complex
trading strategies, especially for those leveraging investments for higher returns or borrowings. Such funds
have been asked to have a comprehensive risk management framework and a strong compliance function
as per their size, complexity and risk profile. They have also been asked to maintain appropriate records of
their trades and provide full disclosure of their trade management practises and any conflict of interest to
Sebi.
Direct plans form 25 pct of total AUM of Mutual Fund industry
Direct plans in the mutual fund industry now constitute 25 per cent of total assets under management (AUM),
up from 15 per cent in the previous quarter, a report by Crisil Research said. Direct plan, launched in
January 2013 as per Sebi direction, provides an option to investors to subscribe to various mutual fund
schemes directly without the help of any distributor or agent. The direct plan route is increasingly attracting
84

large investors, especially to debt fund schemes. As per the report, within debt category, liquid and ultra
short-term debt funds were the highest contributors to the AUM of direct plans.
IMF approves $2.29 billion payment for Greece
The International Monetary Fund has approved a further $2.29 billion payment to Greece as the latest
installment of a bailout programme. The latest payout brings the IMF's total disbursements in the Greek
rescue programme to $10.94 billion.
Easun Reyrolle buys stake in Australian co
Easun Reyrolle Limited, through its wholly owned subsidiary and overseas investment organ, ERL
International Pte Limited, bought 82 per cent equity and ownership control in Electrical Distribution Solutions
Pty Limited, (EDS) based in Australia. Recently, ERL India obtained order from EDS to supply medium
voltage switchgear products to Australian Utility, Energex in the State of Queensland. The total value of this
order is $ 84 million.
JPMorgan to pay $410 mn in power trading settlement
Banking giant JPMorgan Chase has agreed to pay a USD 410 million settlement to resolve US charges that
it manipulated power prices in California and the Midwest. JPMorgan will pay a civil penalty of USD 285
million to the US Treasury and disgorge USD 125 million in unjust profits, the Federal Energy Regulatory
Commissioner Tony Clark said. The settlement is among the largest on record for FERC.
Oil companies decline to sign PSC for Egypt blocks
The Petroleum and Natural Gas Ministry has conveyed to the Ministry of External Affairs (MEA) that the
Indian consortium comprising Gujarat State Petroleum Corporation (GSPC), Hindustan Petroleum
Corporation Limited (HPCL) and Oil India Limited (OIL) has unanimously decided not to sign the concession
agreement for the two offshore oil exploration blocks of South Quseir and South Sinai located in the Gulf of
Suez and Red Sea in Egypt.
TVS sets up assembly line in Kenya
Chennai headquartered two and three wheeler manufacturer, TVS Motor Company has announced its plans
to launch two new motorcycle models in the Kenyan market. These motorcycles will be specific to the
Kenyan markets in terms of usability, reliability and durability. TVS has a decade long presence in Kenya and
is currently partnered with Car &General, Nairobi, a public limited organization with 75 years of business
presence in East Africa for distribution of its range of two wheelers and with Abson Motors, Mombasa for
distribution of its range of three wheelers. TVS has an Indonesian presence as does rival Bajaj Auto.
BPCL barred from operating three pipelines
The Central Pollution Control Board (CPCB) has directed Bharat Petroleum Corporation Limited to stop
operating three pipelines from the companys Tondiarpet terminal, a move that may impact the supply of
petrol and diesel in the city. The order issued also covers the pipeline from which a suspected leak had
households near the terminal complaining of oil in their borewells recently.
85

G20 finance ministers aim for more growth

The Group of 20s finance ministers said that their countries consider strengthening economic growth and
creating jobs to be top priorities. In a communique at the end of their meeting in Moscow, the ministers noted
that although there are signs of stronger economies in the United States and Japan, the group of 17
European Union countries that use the euro continues to suffer from recession and that economic growth in
emerging markets is comparatively slow.
Mohanty is President of ICAI
The Institute of Cost Accountants of India said Suresh Chandra Mohanty had been elected as the new
President. Mr. Mohanty, who replaces Rakesh Singh, has been elected for 2013-14. A. S. Durga Prasad
would be the new Vice-President
Kumar Mangalam Birla quits RBI Board
Weeks after his group firm applied for a bank licence Kumar Magalam Birla Resigned from RBI board To
avoid any conflict in future . Mr. Birla was a nominated as a member of the directors of the Central Board of
the RBI in 2006. His group firm Aditya Birla Nuvo is among 26 entities, which have applied for a bank
licence.
UBS Fund partners Tech Mahindra
Tech Mahindra, had signed a five-year deal with UBS Fund Services (Luxembourg) as the first client for its
managed data services new platform. No financial details were disclosed. Under the agreement, Tech
Mahindra will provide UBS Fund with a fully managed service across four major areas of data management,
namely securities reference data, pricing, corporate actions and tax data. MDS will support the complete
data life cycle of sourcing, cleansing, enrichment and distribution to multiple locations, it added. It will also
support multiple pricing points across all time zones, markets and asset types.
TCS completes acquisition of French firm
Tata Consultancy Services (TCS),

announced that it completed the acquisition of French IT services

company Alti. The deal, valued at 75 million euro (around Rs.530 crore) was an all-cash transaction and the
announcement was made in early April 2013. Alti is a privately-held company with revenues of 126 million
euro in 2012 and is regarded as one of the top five system integrators of SAP solutions in France. Its
customers include several top French corporations in the banking, financial services, luxury, manufacturing
and utilities sectors.
India, Israel negotiating FTA
Israel is negotiating with India the contours of a Free Trade Agreement (FTA), said Eli Belotsercovsky,
Director of Economic Relations with India and China in the Israeli Ministry of Foreign Affairs .Israels trade
with China is about $8 billion, compared to $5 billion with India. Mr. Belotsercovsky said diamonds accounted
for about 30-40 per cent of the two-way trade between the two countries. Nearly two-thirds of Israeli exports
are hi-tech products, .
86

APNPDCL bags eINDIA award

Andhra Pradesh Northern Power Distribution Company Limited has bagged Electronic India (eINDIA) award
for 2013 for extending IT-enabled value added services to its consumers through Mee Seva.The award,
instituted by eINDIA in association with the Union Ministry of Public Enterprises, was presented to the utilitys
CMD Kartikeya Misra, by Information Technology Minister Ponnala Lakshmaiah at a function . Web-based
services were launched in the discom in March 2013 to receive applications, release new connections, clear
monthly bills, register complaints, etc.
Reserve Bank concedes higher yields on short-term debt
The Reserve Bank of India (RBI) conceded double-digit yields for selling short-term debt.It sold short-term
debt totalling Rs.5,195 crore for double-digit yields.Sale of 28-day debt worth Rs.2,195 crore (against the
planned sale of Rs.3,000 crore) was done at an yield of 11.17 per cent. The RBI, however, sold its entire
planned 56-day debt worth Rs.3,000 crore, conceding an yield of 11.20 per cent.The 91-day treasury bill
auction for Rs.7,000 crore saw the central bank selling debt worth Rs.6,363.91 crore, allowing an yield of 11
per cent.By conceding higher yields on short-term debt, the RBI has reiterated its determination to squeeze
the liquidity in the system, and drain out the speculative fizz in the foreign exchange market.
Manu Anand to head Mondelez in India
Global snacks major Mondelez International, had appointed Manu Anand, former PepsiCo India Chairman,
and CEO PepsiCo, as President of Indian and South Asian division and also as Managing Director of its
subsidiary, Cadbury. He will also be part of the Asia Pacific Leadership Team and sit on the Mondelez
International Leadership Council the company, formerly known as Kraft Foods. Manu replaces Anand
Kripalu.
Zydus, IDRI to develop Kala-Azar vaccine
Cadila Healthcare stated in a filing to the BSE that Zydus and U.S.-based Infectious Disease Research
Institute (IDRI) were collaborating to conduct clinical development activities in India with the goal of
developing, registering and marketing vaccine candidate for the prevention of Visceral Leishmaniasis (KalaAzar).
Duty-free import of flat TVs banned
The government banned duty-free import of high-end flat screen plasma television, which will now attract a
levy of 36.05 per cent.The Revenue Department issued a notification that amended rules to disallow import
of flat panel [LCD/LED/Plasma] television as part of free baggage allowance with effect from August 26
Indiabulls buys out Farallon Capital in JV
Indiabulls Real Estate, had bought back 49 per cent stake each held by U.S.-based private equity firm
Farallon Capital Management in its seven realty projects for Rs.1,172 crore.

87

SEBI nod for Diageos open offer for Pioneer

Market regulator Securities and Exchange Board of India (SEBI) has cleared U.K.-based Diageo plcs open
offer for acquiring shares worth Rs.15.78 crore of Vijay Mallya group firm Pioneer Distilleries. The proposed
open offer is part of the United Spirits- Diageo deal, whereby the U.K. firm has become a significant
shareholder in United Spirits Ltd (USL).
India raises trade imbalance issue with China
India, raised the issue of heavy trade imbalance with China and sought immediate steps to facilitate Indian
exports of pharmaceutical and agricultural products, buffalo meat and information technology (IT)
services.Raising the issue with Chinese Minister of Commerce, Gao Hucheng, during his meeting in Brunei,
Commerce and Industry Minister Anand Sharma drew the attention of the Chinese Minister to Indias pending
request for facilitating Indian exports of IT services, buffalo meat, pharma and agricultural products.
Portfolio investment scheme for NRIs relaxed
The Reserve Bank of India, simplified rules governing portfolio investments such as equity and debt by nonresident Indians (NRIs) to attract inflow of foreign currency.Under the portfolio investment scheme (PIS) for
NRIs, banks were given a unique code for each branch, making it cumbersome for them to administer the
scheme.The RBI has now dispensed with the unique code for branches, and said banks shall be free to
permit their branches to administer the PIS scheme for NRI.The designated branch of the bank will grant a
one-time permission to the NRI applicant for the purchase and sale of shares or convertible debentures of an
Indian company, the RBI said in a notification.
SEBI clamps down on SMS scam, phoney stock advisers
In a crackdown on entities offering unsolicited and ill-informed stock tips to investors through short message
services (SMSs) via mobile phones, the Securities and Exchange Board of India (SEBI) has debarred
Imtiyaz Hanif Khanda and Vali Mamad Habib Ghaniwala from accessing the market and directed them to
stop acting as investment advisors and portfolio managers with immediate effect.They have been asked to
immediately withdraw and remove all advertisements, representations, literatures, brochures, materials,
publications, documents and websites in relation to their investment advisory and portfolio management
activities or any unregistered activity in the securities market.
FMC nod for NSEL settlement plan
Commodity markets regulator Forward Markets Commission (FMC) has asked crisis-ridden National Spot
Exchange Ltd. (NSEL) to go ahead for the time being with its plan to settle Rs.5,600 crore of dues to
investors and questioned the credibility of the accounts and information provided by the exchange. The
NSEL had submitted the plan to the FMC to clear dues to 13,000 investors over a period of seven months.
The FMC came down heavily on the NSEL for not taking guarantees for the financial settlement and
providing different sets of information at different times.

88

German Finance Ministry recognises bitcoin as currency

Key aspects of the bitcoin, a popular online currency, have been recognised for legal and tax purposes by
Germany. Currently, 1 bitcoin is valued at about $110.
Uncertainty looms over Vedanta plan
With the verdict in the first-ever environmental referendum being conducted on bauxite mining in Niyamgiri
hills on the directive of the Supreme Court written on the wall, uncertainty clouds the future of Vedanta
Aluminium Limited (VAL)s Rs.40,000-crore investment plan in Odisha. Dongria Kondhs, the primitive tribal
group who live on top of the lush-green Niyamgiri hills spread over backward Kalahandi and Rayagada
districts of Odisha, have voted against mining in the hills which they consider the abode of their ista
debata (presiding deity), Niyamraja.
RBI to consider bond sales to drain liquidity
RBI's liquidity squeezing measures will continue and they will be reversed only once the rupee is stabilised,
Governor D Subbarao said hinting at more tightening through bond sales. He said the central bank will
continue with sale of government bonds through open market operations to maintain tightness in liquidity.
Earlier in July, the rupee fell to record low of 61.21 against the dollar, which prompted RBI to take steps to
curb speculation in forex market by way of draining out liquidity from the system. The Reserve Bank had
steeply raised the marginal standing facility rate and the bank rate, restricted access to borrowing under
liquidity adjustment facility, stipulated higher daily maintenance of cash reserve ratio and undertook open
market sales of government securities.
Three-point rise in Consumer Price Index
Retail inflation for industrial workers rose to 11.06 per cent in June 2013 from 10.68 per cent in May 2013
due to rise in prices of food items, cigarette, electricity charges, doctors fee, medicines and petrol. According
to a labour Ministry, the all India Consumer Price Index for Industrial Workers (CPI-IW) for June rose by three
points, and pegged at 231.
Yes Bank raises lending, deposit rates
Within a day of RBIs status-quo policy, private sector Yes Bank, has raised the lending and deposit rates.
The bank revised upwards its base rate by 0.25 per cent to 10.75 per cent effective August 1, 2013. It also
revised its fixed deposit rates by 0.25 per cent to 0.5 per cent in select tenors. The bank was the first to raise
lending rate after RBI kept key policy rates unchanged.
New norms to determine tariffs at major ports
The long wait to permit competitive market forces to have a larger role in determining tariffs at major ports in
India ended. The new guidelines for determining Tariff for Projects at Major Ports (TAMP) comes into force
with immediate effect, and will apply prospectively i.e. for all new projects cleared. TAMP is only required for
major ports, while non-major ports can charge market-based tariffs. While TAMP was established in 1997,
major ports today account for 58 per cent of the countrys traffic while non-major ports account for the rest.
89

Sebi imposes Rs 4 lakh fine on 2 entities in Sanjay Dangi case

Capital market regulator Sebi has imposed Rs 4 lakh penalty on two entities for failing to comply with the
summons during an investigation into share price manipulation by Sanjay Dangi and associates. In two
separate orders issued, Securities and Exchange Board of India (Sebi) slapped Rs 2 lakh each on Lotus
Capital Financial Services and Ganga Jamuna Financial Advisors for failure to provide necessary information
to the regulator's Investigation Authority (IA).
Louis Vuitton tops 2013 global luxury brand list
Louis Vuitton, Hermes and Gucci were the top three global luxury brands of 2013, with Fendi and Coach
entering the top 10 for the first time. The 2013 BrandZ Top 100, a ranking of the most valuable global brands
compiled by research firm MillwardBrown, found luxury firms struggling with the need to balance exclusivity
with attracting new customers through use of social media.
FDI cap in defence retained at 26%
FDI cap in defence sector will remain at 26 percent and proposals beyond that will be considered by the
Cabinet Committee on Security (CCS) on case to case basis. The Union Cabinet has decided that FDI
proposals in defence sector upto 26 per cent will continue to go through the Foreign Investment Promotion
Board (FIPB) route. Any proposal beyond Rs 1200 crore, even if less than 26 per cent, will have to be
cleared by the Cabinet.
Cabinet clears disinvestment of 10 % in IOC
The Cabinet Committee on Economic Affairs,has approved the proposal for sale of 10 per cent government
stake in Indian Oil Corporation (IOC), which is likely to fetch around Rs.3,840 crore to the exchequer at the
current market price. The Disinvestment Department has already selected five merchant bankers Citibank,
HSBC, UBS Securities, SBI Capital and J M Financial to manage the stake sale of the countrys largest
refiner. At present, the government holds 78.92 per cent stake in IOC. IOC has a market capitalisation of
Rs.54,519 crore.
Rajeev Rishi is new CMD of Central Bank
Rajeev Rishi, has took over as the Chairman and Managing Director of Central Bank of India. Prior to the
new assignment, Mr. Rishi was the Executive Director of Indian Bank. Before joining Indian Bank, he was the
General Manager of Oriental Bank of Commerce.
HDFC Bank, Axis Bank raise fixed deposit rates by up to 4%
Faced with a tight liquidity condition, two leading private sector banks HDFC Bank and Axis Bank have
raised fixed deposit rates by up to 4 per cent. Country's second largest private sector lender HDFC Bankhas
raised fixed deposit rates by 1 per cent for maturities between 15 days to 6 months one day effective July 27.
The bank has increased the interest rate by 0.75 per cent for maturity buckets less than 1 year but over 6
months one day. Axis Bank has raised interest rate on term deposits with maturity between 14-29 days by 4
per cent to 8 per cent, while in case of 7-14 days the increase is by 3.5 per cent to 7.5 per cent on bulk
deposits above Rs 1 crore.
90

Cabinet approves 100% FDI in telecom

In a major reform push, government has approved 100 percent foreign direct investment (FDI) in the telecom
sector. It has been decided to increase FDI cap in telecom to 100 percent from 74, up to 49 through
automatic route and beyond that FIPB.
India ranked lowest in basic money mgmt skills
India has been ranked lowest in basic money management skills among Asia-Pacific countries, according to
MasterCard's latest Index of Financial Literacy. India with 59 index points was ranked at the 15th place
among the 16 countries surveyed ahead of Japan which was at the bottom with 57 index points.In overall
financial literacy, New Zealand continued to rank number one with a score of 74 index points, ahead of
Singapore (72 index points) and Taiwan (71 index points). The survey was conducted between April 2013
and May 2013 with 7,756 respondents aged between 18 and 64 in 16 Asia- Pacific countries.
Govt clears interest subvention scheme for farmers
To ensure availability of loans at affordable rates for farmers, the government has approved a scheme for
providing short-term crop loans at concessional rate of 7 percent. This scheme has already been extended to
crop loans borrowed from private sector scheduled commercial banks in respect of loans given within the
service area of the branch concerned. An additional subvention of 3 percent is being provided to those
farmers who repay their loans on time, he said, adding, the effective rate of interest for such farmers, thus,
will be 4 percent per annum.
ISRO, Tata Motors begin trial run of fuel cell bus
In a significant step for automobile research & development (R&D) in the country, the Indian Space Research
Organization (ISRO) and automobile major Tata Motors have developed a hydrogen-powered bus. The bus
is currently in trial stages as the company looks to reach a viable market proposition. The Tata Starbus Fuel
Cell is a compressed natural gas (CNG) type of bus using hydrogen bottles as fuel. These are stored on top
of the bus. Tata Motors had entered into a memorandum of understanding (MoU) in 2006 with ISRO to
design and develop such a product. Accordingly, Tata Motors had set up a fuel cell power system test
laboratory in Bangalore and later at ISROs Liquid Propulsion Systems Centre (LPSC) in Mahendragiri, Tamil
Nadu.
GSK loses patent claim on breast cancer drug Tykerb
The Intellectual Property Appellate Board (IPAB) has revoked the patent granted to the British drug major
GlaxoSmithKline Pharma for its breast cancer drug Tykerb. However, the Board has upheld the patent for
Lapatinib compound, which is the active ingredient in Tykerb, citing innovative merit. Tykerb is the salt form
of Lapatinib compound that is sold in the country. Tykerb has been providing significant benefit to Indian
women with HER-2 positive breast cancer for over four years it has been available in India. The Supreme
Court in April 2013 had rejected a patent plea from Novartis AG's cancer drug Glivec, saying it was an
amended version of a known molecule called Imatinib.
91

Royal Bank of Scotland picks new head, returns to profit

State-rescued Royal Bank of Scotland promoted New Zealander Ross McEwan, its head of retail business,
to be the new chief executive when it also announced a return to profit. RBS, 81-percent owned by the
British taxpayer, said that McEwan would take charge from October 2013, replacing Stephen Hester who
recently announced he would step down before the bank returned to the private sector.
Govt approves Rs 740 cr for Food Processing Min scheme
The Cabinet Committee on Economic Affairs (CCEA) has approved the proposal of the Ministry of Food
Processing Industries for continuing the scheme of technology upgradation /establishment of Food
Processing Industries during the 12th Plan (2012-17) for an amount of Rs 740 crore.
EPFO wants default on PF remittance under economic offences
Retirement fund body EPFO wants defaults on PF remittance by companies to come under economic
offences. EPFO is planning to clear 90 percent of claims within 15 days of filing, instead of the present 3-day
period. Employees Provident Fund Organisation (EPFO) is aiming to achieve in November 30, 2013. EPFO
had proposed an amendment to the EPF Act for having multiple tribunals as a few members had complained
about having one EPF tribunal only.
Emirates offers 'Street View' of A380 aircraft
Gulf carrier Emirates said it has partnered with global search engine Google to launch the world's first 'Street
View' of the double decker A380, the world's largest commercial jet aircraft. 'Street View' is a technology
featured in Google apps and Google Earth that provides panoramic views from positions along many streets
in the world. The Gulf-based airline is the world's largest operator of A380 with 35 aircraft in its fleet.
National award for BHEL
The Bharat Heavy Electricals Limited, Electronics Division, has won the Champion progress through
participation award from the Indian National Suggestion Scheme Association (INSSAN). The award,
according to a BHEL release, was conferred on the company for its outstanding participation.
World Bank debars Indian firm
The World Bank has debarred Consulting Engineering Services (India) (CES) for five years on charges of
fraud and corruption in an National Highways project in India. The decision follows a World Bank
investigation and review of poorly performing road construction contracts under the bank-financed project, for
which CES was the supervision consultant. CES will not qualify for any contract financed by the World Bank
Group during the five-year debarment.
State Bank gets new Managing Director
State Bank of India (SBI), said the government had appointed Arundhati Bhattacharya as Managing Director
of the bank. Prior to this, Ms. Bhattacharya was the Managing Director of SBI Capital, the merchant banking
arm of the bank. With over three decades of experience at SBI, Ms. Bhattacharya has undertaken various
assignments spanning credit, forex, treasury and retail operations.
92

Foreign exchange reserves up by $960 million

Indias foreign exchange (forex) reserves increased by $960.2 million to $280.16 billion for the week ended
July 26, according to data released by the Reserve Bank of India.
HP shuts photo sharing service biz in India
Hewlett-Packards digital photo-sharing and printing service, Snapfish, is discontinuing business in India marking an end to one part of its retail photo printing gamble. The PC maker had made a big splash during
its initial entry into the Indian retail photo printing market in 2007. The company had planned to establish a
footprint of 3,000 retail photo outlets across the country, and had launched Snapfish in India to facilitate doorto-door delivery of printed photos through HP outlets. Snapfish was launched in 1999 by three U.S-based
Indians, who later sold it to HP for nearly $300 million.
Investors based in tax havens may have to share info with CBDT
Companies routing investments through tax havens will find it difficult to evade taxes with the introduction of
norms requiring them to sign an agreement to share banking and other information with the CBDT. The
Central Board of Direct Taxes (CBDT) recently notified rules under which an entity based in a notified
jurisdictional area will have to give an undertaking to share information in a prescribed format. The CBDT,
however, is yet to specify the jurisdictions in which the provisions are applicable. As per Form 10 FC, which
was notified in pursuance of anti-avoidance measures introduced in the Finance Bill 2011, the tax authorities
will be able to get more information and records relating to the transactions entered into.
Shell-ONGC tie-up may take roots in KG basin
The recently-announced strategic alliance between state-run Oil and Natural Gas Corporation and global
energy major Royal Dutch Shell could go much beyond the retail oil marketing space and see the
Netherlands-headquartered multinational pumping in billions of dollars and technology to tap into the Indian
PSU's promising deep-water gas blocks in the Krishna-Godavari Basin off the east coast. ONGC has offered
Shell an equity stake in its KG Basin block that lies adjacent to Reliance Industries' struggling D6 block. The
company has pinned its hopes on the KG DWN-98/2 block to salvage its falling gas production.
India partly revokes Roche cancer drug patent
India has partly revoked patents granted to Roche Holding AG for its breast cancer drug Herceptin. India
revoked a patent granted to GlaxoSmithKline's for breast cancer drug Tykerb, following on from a landmark
court ruling in April 2013 disallowing patents for incremental innovations. Roche has already adapted its
business model in India to increase affordable access to drugs and try to stave off trouble from India's patent
authorities. In August 2012, it introduced cut-price versions of Herceptin and another cancer drug MabThera,
under an alliance with Indian generics firm Emcure Pharmaceutics. In 2012, India revoked patents granted to
Roche's hepatitis C drug Pegasys, Pfizer Inc's cancer drug Sutent, and Merck & Co's asthma treatment
aerosol suspension formulation. All were revoked on grounds that included lack of innovation.

93

HAL inks MoU with Transparency International India

Hindustan Aeronautics Ltd. has said it has signed a memorandum of understanding with the Transparency
International India (TII), the coalitions against corruption, to promote corruption-free, fair and transparent
business practices in the company. The country chapter of the Berlin-based not-for-profit organisation will
advise HAL and support it in implementing its integrity pact programme. HAL said it was the first defence
public enterprise to sign the MoU.
U.S. emerging as a major market for black tea
The United States has emerged as a major market for black tea and is now the third largest importer of tea.
The present market size of U.S. is about 126 million kg of which 84.4 per cent is black tea. The Commerce
and Industry Ministry has chosen five countries - the U.S., Russia, Kazakhstan, Iran and Egypt, for extensive
and intensive promotional intervention through five specific activities over five years. These five countries
account for 42 per cent of the total tea exported from India. Indian tea exports average 200 million kg. India
is the worlds second largest producer after China and second largest consumer of tea, accounting for nearly
25-27 per cent of world tea production. India accounts for around 10-12 per cent of world tea exports.
SAT quashes SEBI order against NSDL
The Securities Appellate Tribunal (SAT) has quashed a regulatory order against National Securities
Depository Limited (NSDL), which was passed by Securities and Exchange Board of India (SEBI) in
December 2008, but implemented about two-and-a-half years later in July 2011, after initially being
dismissed, as null and void.
World Bank & ADB to give $ 400m
The World Bank and the Asian Development Bank (ADB) has agreed to provide $ 400 million for
reconstruction and rehabilitation in the disaster-hit areas in Uttarakhand. the money would be spent in works
in sectors including the housing, tourism, irrigation, agriculture, education, and health sector. Ninety percent
of the $ 400 million will be paid back by the Central government and 10 percent will be paid by the State
government.
Vodafone, ICICI launch M-Pesa money transfer service in Bihar
Telecommunication major Vodafone India in association with ICICI Bank has started the unique money
transfer and payment service "M-Pesa" in Bihar and Jharkhand where banking network and financial
penetration is inadequate, particularly, in rural areas. The 'M-Pesa' service launched in December 2012 is
available across 32 districts and 250 tehsils in Bihar at present.
Using their M-Pesa account, customers can at their convenience avail facilities of deposit and withdraw cash
from designated outlets, transfer money to any mobile phone in the country, make payment to recharge
mobile, clear utility bills and for DTH service subscription and shop at select shops among others.

94

SC asks Australian firm to pay Rs 940 cr as damages to SAIL

The Steel Authority of India (SAIL) received a shot in the arm with the Supreme Court (SC) refusing to
interfere with the foreign arbitration award that asked two Australian coal firms to pay damages of $159
million (Rs 940 crore) to the PSU.
India out of trillion-dollar club
India has slipped out of the elite global league of stock markets with a trillion-dollar valuation, as total value
of all its listed companies fell to USD 989 billion amid huge selling pressure on the bourses. Indian stock
market has been holding to the trillion- dollar level by a wafer-thin margin for last few days. With India out of
this league, only 13 stock markets across the world now enjoy a trillion-dollar status, led by the US (an
estimated USD 20 trillion). Others in this club are UK, Japan, China, Canada, Hong Kong, Germany, France,
Switzerland, Australia, South Korea, Nordic region and Brazil. India had first entered the trillion-dollar club in
June 2007.
World Bank sets $ 340mn for Africa Great Lakes project
The World Bank has given final approval of a USD 340 million financing package for a crucial hydroelectric
power plant in Africa's Great Lakes region long delayed by ethnic conflict. The World Bank Board of
executive directors signed off, on the financing for the nearly USD 470 million Regional Rusumo Falls
Hydroelectric Project, which will provide 80 megawatts of power to people in Burundi, Rwanda and Tanzania.
RBI imposes penalty on SBI
The Reserve Bank of India (RBI) has imposed a penalty of Rs.5,62,555 on State Bank of India for violating
the norms for opening and maintaining currency chests. The penalty has been levied in connection with the
deficiencies / lapses observed in the operation and maintenance of the currency chest at SBI, Secunderabad
branch.
Net direct tax collections up 10 % in four months
Net direct tax collections went up by 10.37 per cent to Rs.1.17 lakh crore during the April-July period of the
current fiscal year as against Rs.1.06 lakh crore mopped up during the same four months of 2012-13. The
growth in gross direct tax collections, however, was higher with a rise of 13.27 per cent to Rs.1.57 lakh crore
during April-July this fiscal, up from Rs.1.38 lakh crore garnered in the same period of the previous fiscal.
According to a Finance Ministry, gross collection of corporate taxes during the four months of 2013-14 was
9.75 per cent higher at Rs.92,115 crore as compared to Rs.83,932 crore mopped up in the like period a year
earlier.
DGH fines RIL $1.78 bn for gas shortfall
Oil regulator DGH has recommended an additional penalty of $781 million on Reliance Industries, taking the
total fine on the company for producing less than projected natural gas from KG-D6 fields to $1.786 billion.
The Directorate General of Hydrocarbons (DGH) recommended to the Oil Ministry that $781 million of the
cost RIL has incurred in KG-D6 fields be disallowed for producing only an average of 26.07 million cubic
meters per day of gas as against the target of 86.73 mmcmd in 2012-13.
95

Indian business stories find voice in global B-Schools

The Indian School of Business (ISB), has announced the results of the fourth ISB-Ivey Global Case
Competition aimed at expanding the pool of cases on Indian organisations. The competition received a total
of 98 entries from India and other countries. A team from the SP Jain Institute of Management and Research,
Mumbai bagged the first place with the case study, EVOE Spring Spa: A Positioning Dilemma.
SAP unveils new solutions to help Govt enhance services
Enterprise solutions provider SAP, has announced three new applications targeted at helping government
agencies to deliver citizen services in a more effective and faster manner. The three new applications
Rakshak , TracOHealth and The 'Milk Co-operative' Experience, which have been conceived, designed and
developed by SAP Labs India.
Hero Moto to set up factories in US, Latin America
Hero MotoCorp is set to open factories in North and Latin America, the first instance of the Indian twowheeler major looking at starting full-fledged manufacturing abroad. The company, controlled by the Munjal
family, was earlier prohibited from making overseas investments as part of the joint venture agreement with
erstwhile partner Honda.
Cadbury to invest Rs.1,000 cr
Chocolate maker Cadbury India, said it would invest Rs.1,000 crore to set up the first phase of its largest
manufacturing plant in Asia Pacific that would come up in southern India. Cadbury India, a part of Mondelez
International Inc., has signed an agreement with Sri City in Andhra Pradesh to take on lease 134 acres for
the proposed facility. Sri City, is the largest private sector multi-product special economic zone (SEZ) in
South India. The city is home to over 85 industries from 24 countries.
RBI steps in again to drain liquidity
With rupee consistently breaching the 60-mark against dollar of late, the Reserve Bank of India (RBI) has
unveiled fresh liquidity-sucking measures to shore up the Indian currency. The central bank said it would
auction Government of India cash management bills for a notified amount of Rs. 22,000 crore once every
week on Mondays. Cash management bills are auctioned to help smoothen the temporary liquidity
mismatches of the Central Government. These are flexible short-duration instruments, and tend to pay
higher yields than bills with fixed maturity.
Rajan to be Officer on Special Duty at RBI
Reserve Bank of India Governor-designate Raghuram Rajan will work as Officer on Special Duty (OSD) in
the central bank for three weeks before taking over as head of the institution.

96

Companies Bill passed

Rajya Sabha, has ratified The Companies Bill, 2012, as passed by the Lok Sabha about eight months ago.
As and when consented to by President Pranab Mukherjee, the new legislation will replace the 57-year-old
Companies Act, 1956. In 1956, there were just about a few thousand companies in the country. The number
had now grown to more than a million now.
BHEL Haridwar starts producing stator bars
BHEL Haridwar became the first unit to introduce manufacturing of 800 MW supercritical generator stator
bars with the inauguration of the hi-tech CNC Roebel machining centre. With the installation of this
machining centre, BHEL has become Indias first company capable of making stator bars of 800 MW
supercritical generators. It is noteworthy that for the first time in Indian history, bar manufacturing is being
done by using steel conductors in place of copper.
Sterlite gets nod from National Green Tribunal to operate Tuticorin plant
The National Green Tribunal has permitted Sterlite Industries to carry on its activities in its copper smelting
plant at Tuticorin, subject to certain directions. The Tribunal comprising Justice Swatanter Kumar,
Chairperson and Expert Members, Dr. D. K. Agrawal, Dr. G. K. Pandey and Dr. R. C. Trivedi allowing a
petition from Sterlite challenging the order of closure passed by the Tamil Nadu Pollution Control Board.
NTPC arm to supply 250 MW of power to Bangladesh
Supply of 250 MW of power to Dhaka will commence. State-owned NTPC Vidyut Vyapar Nigam (NVVN), a
subsidiary of NTPC, is expected to start supplying power to Bangladesh from September. NVVN has been
nominated as the nodal agency for supply of power to Bangladesh. The energy agreement with Bangladesh
is on similar lines with other neighbours like Bhutan, Nepal and Sri Lanka.
LIC Housing launches deposit scheme
LIC Housing Finance has launched public deposit scheme SANCHAY at interest rates ranging from 8.75
per cent to 9.5 per cent. The deposits are accepted from individuals, HUFs, companies, NRIs, cooperative
societies and association of persons from one to five years with a minimum amount of Rs.10,000. For senior
citizens, additional 0.10 per cent is offered for deposits up to Rs.50,000 and 0.25 per cent for deposits of
Rs.51,000 and above.
Higher import duty for non-essentials mooted
An inter-ministerial panel has suggested higher taxes for non-essential imports with a view to curbing inward
shipments and containing the current account deficit.
The committee has also suggested a list of non-essential items the import of which could be compressed,
with a view to bridge the trade gap. The committee has already submitted its report to Chidambaram.

97

Mutual fund AUMs fall 6 % in July

Assets under management (AUM) of the mutual fund (MF) industry declined by over six per cent to stand at
Rs. 7.61 lakh crore in July due to heavy redemption from liquid funds. As per the rating agency, CRISIL
report, AUMs of liquid funds dipped 21 per cent to Rs. 1.29 lakh crore, primarily due to outflows of Rs. 45,300
crore after the recent liquidity tightening measures announced by the Reserve Bank of India.
Allergan loses patents for two drugs
In line with the revocation of patents granted to western drug manufacturers on the ground of lack of
invention, the Intellectual Property Appellate Board (IPAB) has cancelled the patents of two ophthalmic drugs
manufactured by Allergan Inc., a pharmaceutical major of the U.S. The two drugs are Combigan and Ganfort.
The IPAB had revoked Glaxo Groups patent for its breast cancer drug, Tykerb following a series of
revocations such as Pfizer's cancer drug Sutent and Roche Holding AG's hepatitis C drug Pegasys on the
ground of lack of invention. The Board, comprising its chairman Prabha Sridevan and technical member
D.P.S.Parmar, gave the order to the Controller of Patents and Designs, Kolkata.
NZ dairy giant recalls milk powder from SL
ew Zealand (NZ) dairy giant Fonterra, already under pressure over a global botulism scare, has recalled two
batches of milk powder under Sri Lankan governments orders. This was because of allegations it contained
traces of Dicyandiamide (DCD), a farm chemical, which it denied. The Sri Lankan action is unrelated to the
global safety recall announced by Fonterra earlier after tests turned up a type of bacteria that could cause
botulism. Fonteras brands are the market leader in Sri Lanka.
Apple gets import of select Samsung products banned
Apple won a partial victory in its long-running patent dispute with Samsung when a U.S. administrative panel
found Samsung in violation of two Apple patents and blocked imports of some Samsung devices. But the
U.S. International Trade Commission cleared Samsung on four other patents in dispute. Samsung
Electronics Co. and Apple Inc. are in a global legal battle over smartphones. Apple argues Samsungs
Android phones copy vital iPhone features. Samsung is fighting back with its own complaints.
Biocon launches drug for treating psoriasis
Indian biotech major Biocon announced that it had launched its first biologic drug for psoriasis, which affects
about 10-20 million Indians. The drug against the disease, which attacks the immune system, will be about
half the price of similar drugs offered by multi-nationals in the country. ALZUMAb, which took the company
10 years to develop, is available in India at Rs.7,950 a vial. The drug was the worlds first novel anti-CD6
antibody to treat psoriasis.
TCS to invest Rs. 500 cr in Indore campus
Tata Consultancy Services (TCS) has announced plans to set up a software development campus in Indore,
Madhya Pradesh, with an investment of Rs. 500 crore in two phases.
98

China probes Sanofi for alleged bribery

Chinese authorities have launched an investigation against French drugmaker Sanofi following a news report
that accused the company of bribing hundreds of Chinese doctors in 2007. An unnamed whistle blower told
the Guangzhou-based, state-owned 21st Century Business Herald that the French company had paid 503
doctors a total of $274,000 to prescribe Sanofi products, disguising the payments as grants for research
programs.
RBI to set up expert panel to screen bank licence applications
The Reserve Bank will soon set up a high-level panel of eminent experts from the banking and financial
sector to screen applications of 26 aspirants for new banking licences. The High Level Advisory Committee
(HLAC) will not have any members from the RBI but will comprise of eminent persons with experience in
banking, financial sector and other relevant areas. It is expected that the member of this panel would be
drawn from the other financial regulators like Irda, SEBI, PFRDA. In the 2001 round of guidelines for the new
licences, the then-HLAC members were C G Somiah former CAG, I G Patel, former RBI Governor and
Dipankar Basu former head of State Bank of India.
Only 1% of active companies need to follow CSR spending norms
India might be among the first in the world to make social welfare spending by companies part of the law but
new norms would be applicable only on about 1 per cent of total active companies in the country. The new
Companies Bill, which was approved by Parliament, requires companies to shell out two per cent of threeyear average annual profit towards Corporate Social Responsibility (CSR) activities. The CSR norms, that
would come into effect once the President gives his assent, would be applicable to companies having either
net worth of Rs 500 crore or more; turnover of Rs 1,000 crore or more; or net profit of Rs 5 crore or more.
India's largest blast furnace starts operating at SAIL plant
Country's largest blast furnace 'Durga' became operational at the Rourkela Steel Plant (RSP) of Steel
Authority of India Ltd (SAIL). With the start of the new state-of-the-art furnace, hot metal capacity at RSP will
increase to 4.5 million tonnes per annum (MTPA) from its present capacity of 2 MTPA. Durga, the largest
blast furnace of the country, has become operational. Built at an approximate expenditure of Rs 1,600 crore,
the furnace has a useful volume of 4,060 cubic metres.
Exports in July up 11.64 %
Exports clocked 11.64 per cent growth in July, the highest recorded in nearly two years. Imports dipped by
6.2 per cent. However, the trade deficit stood unchanged at the $12.2 billion level that was witnessed in
June. While exports soared to $25.83 billion in July, imports declined to $38.1 billion. Gold and silver imports,
which dipped by 34 per cent to $2.9 billion in July from $4.4 billion in the same period in 2012, helped to
maintain the trade deficit at the June level.

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Kotak Mahindra Bank raises benchmark lending rate by 0.25%

Kotak Mahindra Bank has raised benchmark lending rate by 0.25 percent to 10 percent making costlier the
home, auto, corporate and other loans linked with base rate or the minimum lending rate. The bank has
revised the base rate upwards from 9.75 percent to 10 percent with effect from August 13. It has also revised
its Benchmark Prime Lending Rate (BPLR) upwards by 0.25 percent. Earlier, the country's second largest
private sector lender HDFC Bank had raised to 9.80 percent from 9.60 percent.
Credit Suisse cuts India's growth forecast to 6 pct for FY14
Global financial services firm Credit Suisse has lowered India's growth forecast for this fiscal year to 6 per
cent from 6.5 per cent, and for financial year 2014-15 to 7 per cent from 7.5 per cent earlier. The country's
economic growth hit a decade low of 5 per cent in the last fiscal on account of poor performance in the farm,
manufacturing and mining sectors.
RBI takes steps to remove currency shortage
The Reserve Bank came out with incentive scheme for banks to ensure distribution of notes and coins to the
public, a step which will help in removing shortage of currency in circulation. As per the incentive scheme,
banks would get Rs 2 against earlier provision of Rs 1 per packet for exchange of soiled notes in
denominations up to Rs 50. The incentives would be paid on the basis of net-withdrawal from currency chest,
without waiting for claims from banks. Penalty on account of detection of counterfeit notes by RBI from soiled
note remittance of banks and in currency chest balances will be three times the notional value of counterfeit
notes.
China set to become world's biggest net oil importer
China is set to overtake the United States to become the world's largest net oil importer from October. Next
year, China's net oil imports will exceed those of the United States on an annual basis and the gap between
them will continue to widen, the US Energy Information Administration (EIA) said. China is already the
biggest energy user in the world and the second-largest oil consumer after the United States.
Bharti Airtel ties up with IRCTC for railway bookings
Bharti Airtel has tied up with Indian Railways Catering and Tourism Corporation (IRCTC) to offer railway
bookings through airtel Money in Upper North comprising Punjab, Haryana, Himachal Pradesh and Jammu
& Kashmir. IRCTC mobile bookings through airtel Money service works across all mobile devices, does not
involve any data or SMS charges. It uses a simple USSD (Unstructured Supplementary Service Data)
technology that prompts users with interactive and guided menu options towards booking tickets.
RBI clamps down on outflows to defend rupee
With the rupee staying stubbornly below 61 to a dollar and headline inflation measured in terms of Whole
Price Index (WPI) rebounding to 5.79 per cent in July, the Reserve Bank of India (RBI), stepped in with
capital controls to check demand for the American currency. The fresh initiative on the dollar demand front
comes even as the 10-year bond yields surged to a year new high of 8.55 per cent. The rupee closed at
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61.43/44 a dollar compared with 61.19/20. Resident individuals will, henceforth, be able to send out only
$75,000 a year under the liberalised remittance scheme (LRS). Hitherto, they were allowed to send out
$100,000 a year under the scheme.
China probing imports of optical fibres from India
China said it had launched anti-dumping investigations into optical fibres imported from India following
complaints from the domestic industry. The Ministry said the investigation was launched following a petition
filed by the domestic industry. Optic fibres are crucial in enabling long-distance and high-speed transmission
and communication. The investigation will last at least one year and could run until February 2015.
PMO plans special team to look into NSEL issue
With a payment crisis engulfing the National Spot Exchange Ltd (NSEL), the Prime Ministers Office is
planning to set up a special team headed by the Economic Affairs Secretary to look into the issue. Besides
Economic Affairs Secretary Arvind Mayaram, the team would comprise secretaries of the Department of
Consumer Affairs and the Ministry of Corporate Affairs. It would also comprise officials of the RBI, SEBI, the
Directorate of Revenue Intelligence and the Enforcement Directorate.
Leo Puri takes charge of UTI Mutual Fund
Asset management firm UTI Mutual Fund said Leo Puri has assumed office as managing director. His
appointment was cleared by the company's board on July 3 this year. Puri was earlier associated with
McKinsey as director and senior advisor and Warburg Pincus as managing director.
IDBI, OBC raise deposit rates
IDBI Bank and Oriental Bank of Commerce, has hiked the deposit rates by up to 1.50 percentage points in
select maturities. IDBI Bank, which also modified its maturity offering, will now pay 8.50 per cent for a deposit
of 46 days to 200 days, which is higher than the earlier rate of 7 per cent for the 46-90 days basket and 7.25
per cent for the 91 days to less than six months basket. IDBI Banks interest rate revision is effective August
16, while the same for OBC is from August 12.
Ahmedabad airport ranks first in customer satisfaction
Sardar Vallabhbhai Patel International Airport (SVPIA) at Ahmedabad ranked first in terms of customer
satisfaction. In a recently conducted survey by the Airport Council International, SVPIA stood first amongst
the 11 AAI airports, with a satisfaction index of 4.13 on the scale of 5. It was closely followed by the airports
of Guwahati, Lucknow and Srinagar. The survey covered the airports at Chennai, Kolkata, Jaipur, Goa,
Ahmedabad, Pune, Lucknow, Srinagar, Calicut, Guwahati and Thiruvananthapuram.
Indias gold consumption, highest in 10 yrs
Countrys consumption of gold rose to 310 tonnes in the second quarter ended June, highest in the last 10
years, despite government curbs to restrict imports to rein in burgeoning current account deficit. Much of the
demand was met by stocks that had been built up to healthy levels following the April price drop. Imports
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more than doubled to 338 tonnes in April-June of this calendar year. Gold consumption stood at 181.1
tonnes in the same quarter in 2012.
SingTel to raise effective stake in Airtel to 32.34%
Singapore-based SingTel said it will acquire 788,538 shares of a promoter company of Indias largest private
telecom operator Bharti Airtel in an all-cash deal worth $301 million (about Rs 1,859 crore). Following the
investment, expected to conclude by August 28, SingTels (Singapore Telecommunications Ltd) effective
stake in Bharti Airtel will increase from 30.76 per cent to 32.34 per cent.
Orange County in California drags TCS to court
Countrys largest software services exporter, Tata Consultancy Services (TCS), has been slapped with a
lawsuit by Orange County in California for making a series of false promises and intentional
misrepresentations during the bidding process for a contract. TCS declined to comment on the issue, citing
it as a legal matter. The issue relates to a contract for development of a tax collection and management
system for Orange County in 2007-2008. TCS won the bid for the job for an amount of about $8 million.
According to the contract, Tata America International Corporation (TCS America) was to develop and
implement the Property Tax Management System Project for Orange County.
Iraq rules out special pricing of crude for India
Iraq, the second-largest supplier of oil to India, has ruled out offering any special price to the country
because its laws don't allow it to do so. India imports about 20 million tonnes of crude oil from Iraq annually
and the government is keen to increase this to meet demand from new refineries. Iraq is the second-largest
oil supplier to the country, after Saudi Arabia.
Andhra Bank raises Base Rate by 25 bps
Andhra Bank has announced an increase of 0.25 percentage point in its Base Rate effective from August 19,
2013. The Base Rate has been increased to 10.25 per cent from 10 per cent, while the BPLR has been
raised to 14.50 per cent from 14.25 per cent.
PNB raises NRI deposits rates
Punjab National Bank (PNB), has raised the interest rates on NRI deposits of over three years by one
percentage point after the Reserve Bank of India deregulated interest rates on such deposits. The new rates
would be applicable from close of the business on August 14. The fixed deposits between three and four
years in U.S. dollar would now attract 4.78 per cent as compared to 3.78 per cent. Similarly, 4-5 year term
deposit would earn 5.17 per cent against 4.17 per cent.
First ever penalty against foreign Govt entity by CCI
Competition Commission of India (CCI) has fined Singapore government investment arm, Temasek Rs 50
lakh in the fair trade regulators first ever penalty against a foreign government entity for late filing of
application seeking anti-trust approval for an M&A deal. The fine has been imposed on Temasek Holdings
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and its two units for delay in submitting a mandatory notice to CCI with regard to proposed acquisition of
shares from banking major DBS Group.
Roche not to pursue patent for breast cancer drug in India
Swiss pharma major Roche Holding AG said it won't pursue the secondary patent for its breast cancer drug
'Herceptin' in India. Regular reviews of our patent portfolio are a routine business practice. In this connection,
Roche has come to the conclusion not to pursue Indian Patent No 205534 (the secondary patent for
Trastuzumab) and the related divisional applications. Herceptin, used to treat a particularly aggressive form
of breast cancer, is Roche's third-biggest seller and notched up global revenues of 3.08 billion Swiss francs
in the first half of the year.
Tata Docomo launches broadband plans with free tablets
In a bid to promote high-speed wired broadband service, Tata Docomo has launched plans with speed of up
to 100 Mbps wherein the company is offering free tablet PCs ranging from Rs 5,000 to Rs 40,000 for all
annual subscription plans starting from Rs 1,099 per month.
India presses U.S. for renewal of GSP scheme
India has taken up with United States the issue of immediate renewal of the US Generalised System of
Preferences (GSP) programme, which expired on July 31. Any delay or failure to renew the programme will
result in an adverse impact on trade exchanges between the two countries. The GSP programme helps
developing countries expand their economies by increasing exports to the U.S. It also aids U.S. businesses
by lowering the cost of imported goods that are used as inputs in value-added US production.
IDBI Mutual launches tax saving fund
IDBI Mutual Fund has come out with IDBI Tax Saving Fund, an open-ended equity-linked savings scheme
(ELSS). The product is designed for investors seeking capital appreciation as well as saving income tax
through their investments. The tax saving fund would invest at least 80 per cent of its corpus in equity and
equity-related instruments. The new fund offer (NFO) is open for subscription from August 20, and will close
on September 3. The units will be available at par (Rs. 10 face value) during the NFO period and at NAVrelated prices thereafter. The scheme will re-open for continuous sale from September 17.
Federal Bank hikes deposit rates
Federal Bank has revised the interest rates on deposits of resident and non-resident Indians (NRIs) with
immediate effect. For NRE term deposits, for three years and above, the bank has increased the interest rate
to 9 per cent from 8.75 per cent.
ICICI Bank raises fixed deposit rates
ICICI Bank has raised the fixed deposit rates by up to 0.75 percentage point across select maturities. The
private sector bank has raised the interest rate on term deposits with 46-60 day maturity by 0.75 percentage
point to 7 per cent. For 61-289 days as well, the increase is by similar percentage point to 7.75 per cent.
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IRDA slaps fine of Rs 3.10 crore on Bajaj Allianz Life

Insurance regulator IRDA has imposed a hefty penalty of Rs 3.10 crore on Bajaj Allianz Life Insurance for
violation of various norms, including those related to early-death claims and group insurance. The fine has to
be paid within 15 days. The regulator imposed a fine of Rs 78 lakh for rejecting certain early-death claims as
un-concluded contracts. These relate to cases where insured persons died after the date of commencement
of risk but before receiving the policy document.
Vodafone launches M-Pesa in Delhi
Vodafone India along with ICICI bank has launched its mobile money transfer and payment service 'M-Pesa'
in Delhi, expanding the footprint in the Capital. The company plans to roll-out the service in Mumbai and
Lucknow in the next couple of days, in a bid to tap the migrant population. The service allows customers to
transfer money to any mobile phone, remit money to a bank account, make payments for utility bills and
deposit and withdraw cash from designated outlets. The users need to deposit Rs 200 to register for the
service and the company charges Rs 10 per transaction as convenience fee for payment of utilities. Apart
from that, there are various slabs for transaction charges for transferring money. Apart from Delhi, the
service, which was launched in December 2012, is currently available in Kolkata, West Bengal, Bihar,
Jharkhand and Rajasthan and will be rolled out across the country in 12-18 months.
BSE launches free mobile application
BSE Ltd has launched a mobile application that allows investors to keep a track on markets on a real time
basis. The new application allows investors a direct access to all 26 BSE indices. Investors will be able to
download free application on Android smart phone, Windows 8 desktop and Windows 8 mobile. This
application also allows investors to keep track of the stock price movement at any given time of the day
along with information on the top gainers, losers and turnover.
Afghanistan allows SAIL-led team to develop Hajigak assets in phases
Afghanistan has conveyed to the SAIL-led consortium that it did not have any objections to the $10.8 billion
iron ore and steel plant project being developed in phases. The Afghan Iron and Steel Consortium (AIFSCO),
which consists of state-owned SAIL, RINL and NMDC, is holding a combined 56 per cent stake. The balance
is held by private players such as JSW, JSPL and Monnet Ispat & Energy.
RINL gets award for cost management
RINL has bagged second position in the 10th National Award for Excellence in Cost Management 2012
conducted by the Institute of Cost Accountants of India (ICAI). RINL Director (Finance) P. Madhusudan
received the prestigious Cost Management Excellence Award in New Delhi. For the first time the Institute of
Cost Accountants of India has included external professionals ICRA for the evolution of the performance of
organisations for presenting these prestigious awards.

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Bajaj Corp acquires Ozone's Nomarks brand

Bajaj Corp, has announced the acquisition of Ozone Ayurvedics Nomarks brands for an undisclosed
amount. Bajaj has acquired the entire intangible assets of Nomarks, including trademarks. Nomarks product
range includes face wash, facial cream, facial scrub and lotion.
DRL recalls anti-gas drug from U.S. market
Dr Reddys Laboratories has initiated recalling of total five lots of bottles of Ranitidine Hydrochloride tablets,
USP, of 150 mg strength, which is used in gastric problems, from the U.S. market due to microbial
contamination of non-sterile products.
RIL, BP make new gas discovery in Cauvery basin
Reliance Industries Ltd (RIL) and its partner BP plc has announced a new gas condensate discovery off the
east coast in the Cauvery basin. The discovery, in the deepwater block CY-DWN-2001/2 (CYD5), is situated
62 kilometers from the coast in the Cauvery Basin and is the second gas discovery in the block. RIL is the
operator of the block with 70 per cent interest and BP has a 30 per cent share.
Indiabulls MF launches short term fund
Indiabulls Mutual Fund has come out with a short term fund, an open-ended debt scheme. The new fund
offer (NFO) is open for subscription from August 22 and will close on September 5, 2013.
Nine NSEL members declared defaulters
Two days after the Forward Markets Commission (FMC) directed the National Spot Exchange Ltd. (NSEL) to
take punitive action against those who have defaulted payment for claim settlement, the exchange declared
nine members as defaulters. They are ARK Imports Pvt Ltd., Loil Overseas Foods Ltd., Lotus Refineries Pvt
Ltd., N K Proteins Ltd., NCS Sugars Ltd., Spin Cot Textiles Pvt Ltd., Tavishi Enterprises Pvt Ltd., Vimladevi
Agrotech Ltd. and Yathuri Associates. These members had failed to meet their financial commitment for the
first settlement dated August 20, 2013.
CRISIL predicts rupee to settle at 60 by March
In a sharp departure from current speculation, rating agency CRISIL, said that it expects the rupee to recover
from its current level and end at 60 against the dollar by March 2014. The two factors that will lead to this
result, according to a report put out by the agency, are a lower current account deficit (CAD) and a pick-up in
foreign capital inflows in the second-half of the current financial year. The forecast of 60 per dollar, however,
is still a significant downward revision from the agencys earlier forecast of 56 a dollar.
RIL-BP find gas condensate in Cauvery basin
Reliance Industries Ltd. (RIL) and its partner BP have said that they have discovered a new gas condensate
off the east coast in the Cauvery basin. The discovery has been named D-56. RIL is the operator with 70 per
cent equity and BP has a 30 per cent share. Well CYIII-D5-S1 was drilled in a water depth of 1,743 meters,
to a total depth of 5,731 meters, with the primary objective of exploring Mesozoic-aged reservoirs.
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Laxmi Vilas Bank raises Base Rate

Laxmi Vilas Bank, has increased its minimum rate of lending by 0.25 percentage point to 11.25 per cent. The
lender said the new rate would be effective August 26.
Penalty on 6 banks for violating KYC norms
The Reserve Bank of India, has imposed a fine of Rs.6.50 crore on six public sector banks, including IDBI
Bank, Dena Bank and Indian Bank, for violating customer identification or KYC norms and anti-money
laundering guidelines. The other three banks found to be violating KYC norms are: Allahabad Bank, Bank of
Maharashtra and Corporation Bank.
Banks offer higher rates on NRI deposits
Non-resident Indians are being wooed with higher rates of interest by several banks after the Reserve Bank
of India allowed lenders to offer NRIs a better return than local depositors and relaxed reserve requirements
on these deposits. The freedom to price deposits is available only on those with tenures above three years.
On its part, Federal Bank has hiked its non-resident external (NRE) term deposit rates in the three-year and
above bucket to 9%, which is higher than the 8.75% offered on identical domestic deposits. The bank has
seen a 50% growth in its NRE deposits in the first quarter of FY14 when compared to the same period in
2012.
ONGC Videsh Ltd to buy Anadarko's 10% stake in Mozambique field for $2.6 bn
ONGC Videsh Ltd (OVL) is likely to buy US energy major Anadarko Corp's 10 per cent stake in a giant
Mozambique gas field for USD 2.6 billion this week, the fourth acquisition by the state-owned firm in a year.
OVL, which under DK Sarraf has transformed from a timid firm into an aggressor that stitched over USD 11
billion worth of deals since September 2012, is likely to announce in a day or two the deal to buy Anadarko's
10 per cent stake in Mozambique's offshore Rovuma Area 1.
Government sets up TARC under Shome
The Government has set up a high level panel under chairmanship of Parthasarathi Shome to review tax
laws and suggest ways for a stable and non-adversarial tax administration. The seven member Tax
Administration Reform Commission (TARC) will have 18 months tenure to suggest various measures.
NSE sells over 2 % stake in MCX
NSE has sold over 2 per cent stake in MCX (Multi Commodity Exchange) in small tranches over the past few
weeks, even as speculations are rife about a potential buyout of the countrys largest commodity bourse by
some rival entity or private investors. As per MCXs latest shareholding disclosure, National Stock Exchange
(NSE) held 12.5 lakh shares or 2.45 per cent stake in the commodity exchange as on June 30, 2012.

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Bharat Biotech launches typhoid conjugate vaccine

Bharat Biotech, has launched a fourth-generation conjugate vaccine for immunisation of children and adults
from typhoid fever. The vaccine, Typbar-TCV, was launched by Director-General of the International Vaccine
Institute (IVI) Christian Locqu in Hyderabad in the presence of Bharat Biotech Chairman and Managing
Director Krishna M. Ella.
Amgen to buy rival Onyx for $10.4 b
The worlds top biotech firm, Amgen, has struck a deal to buy Onyx Pharmaceuticals for $10.4 billion, the two
companies announced, joining a trend toward consolidation in the drug making industry. The deal will allow
Amgen to get its hands on Kyprolis, a promising treatment for blood cancer developed by Onyx and
approved by U.S. authorities in 2012.
Videocon slashes call rates to U.S., Canada
Videocon, said it had lowered its ISD call rates to the U.S. and Canada by a staggering 98 per cent to 10.5
paise per minute for existing customers and 13.5 paise per minute for new customers under a special plan.
36 projects worth Rs.1.83 lakh crore cleared
The Cabinet Committee on Investment (CCI) has approved 36 projects in the road, railways, power and oil
and gas sectors worth Rs.1.83 lakh crore stalled on account of various issues, including regulatory hurdles.
Finance Minister P. Chidambaram said 18 major projects in the power sector entailing an investment of
Rs.83,773 crore were cleared by the CCI. Similarly, 18 others in sectors such as road, railways, petroleum
and gas were also given the green signal.
RBI to open forex swap window for OMCs
he Reserve Bank of India (RBI) has decided to open a forex swap window to meet the entire daily dollar
requirements of three public sector oil marketing companies IOC, HPCL and BPCL. The RBI said that this
decision had been taken on the basis of assessment of current market conditions. Under the swap facility,
RBI will undertake sell/buy U.S. dollar-Indian rupee forex swaps for fixed tenor with the oil marketing
companies through a designated bank.
BNP cuts India's GDP forecast to 3.7%
Financial services major BNP Paribas cut India's GDP growth forecast for the current fiscal to 3.7 per cent
from 5.2 per cent earlier, saying the country's 'macro muddle' is fast approaching crisis proportions.
Samsung tops list of 25 major supply chain cos in Asia pacific
Samsung has been ranked at the top in IT research firm Gartner's list of 25 major performing supply chain
organisations in Asia Pacific region. Chinese PC and mobile devices maker Lenovo bagged the second
position, backed by impressive revenue growth and inventory turns, Gartner said. Homegrown auto major
Tata Motors has been placed at the fifth place in list of top performing supply chain organisations
headquartered in Asia Pacific. Besides, five new companies Haier, Flextronics, Honda Motor, Canon and LG
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Electronics entered the top 10 in 2013. Electronics company Haier was placed at the third position while
Korean auto maker Hyundai was at fourth place in the list.
Holcim, Cemex to swap assets in Europe
Holcim, the worlds largest cement maker by market value, said that it would swap some assets with Mexican
peer Cemex in Europe, with the aim of boosting operating profit by at least 20 million euro ($26.8 million).
Holcim will acquire Cemexs operations in Western Germany, while Cemex will take over Holcims operations
in the Czech Republic. The two companies will also combine their operations in Spain, with Holcim taking a
25 per cent stake in the combined entity.
FIPB clears US pharma major Mylan's Rs 5,168 cr FDI proposal
US-based Mylan Inc's Rs 5,168 crore proposal to acquire Agila Specialties Pvt Ltd, a subsidiary of pharma
firm Strides Arcolab, was cleared by the Foreign Investment Promotion Board (FIPB).
Toyota launches Camry Hybrid
Japanese auto giant Toyota, has launched the all-new Camry Hybrid in India, which is the first-ever hybrid
car to be manufactured locally, priced at Rs.29.75 lakh. Globally, India is the 9th country to manufacture
Toyota hybrid vehicles, Toyota Kirloskar Motors (TKM) said. The Camry Hybrid combines a newly developed
hybrid exclusive 2.5 petrol engine with an electric motor and runs on Hybrid Synergy Drive, which senses
when to switch between the two power sources petrol engine and electric motor. The Camry Hybrid is
Indias first locally manufactured hybrid vehicle
Britannias claim for Snax registration rejected by IPAB
Holding that Snax is phonetically similar to the word snacks, the Intellectual Property Appellate Board
(IPAB) has rejected a claim of Britannia Industries Ltd. for registration of the trademark Snax for its biscuit
product. Following opposition from PepsiCo, the Deputy Registrar of Trade Marks, Kolkata, refused to
register Britannias trade mark Snax in 2006.
Cabinet approves TUFS for XII Plan
The Cabinet Committee on Economic Affairs has gave its approval for implementation and continuation of
Technology Upgradation Fund Scheme (TUFS) during the XII Plan period with a major focus on powerlooms
with a total outlay of Rs.11,900 crore. The scheme is aimed to promote indigenous manufacturing of textile
machinery. Interest reimbursement (IR) on second hand imported shuttleless looms shall be reduced from 5
per cent to 2 per cent.
SBI raises interest rates on bulk deposits
Faced with tight liquidity condition, State Bank of India, has raised the interest rates by up to 1.5 percentage
points on bulk deposits of over Rs.1 crore. The interest rate for bulk deposits for the tenors 7-60 days will be
9 per cent. Fixed deposits between 61 days and less than one year will be 8.25 per cent. The new rates
would be effective from August 31.
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G Mohan Kumar to be new Steel Secretary

Special Secretary in the Ministry for Water Resources, G Mohan Kumar, a 1979 batch Orissa cadre IAS
officer, would be the new Secretary in the Ministry of Steel. Kumar will succeed D R S Chaudhary, who is to
superannuate on August 31. He incidentally beat S Machendranathan to the post.
Narayana Murthy quits as chairman of NPCI
N R NarayanaMurthy has stepped down as chairman of the National Payments Corporation of India (NPCI)
after taking charge as executive chairman of Infosys. NPCI has been promoted under the aegis of Reserve
Bank of India by various banks as a not-for-profit organization. It is known for providing the IT backbone that
connects ATMs of all banks. NPCI is also the promoter of Rupay the Indian alternative to Visa and
MasterCard.
Singapore has record number of billionaires
Singapore has a record number of 21 billionaires, according to the latest Forbes rich list. The number was 16
in 2012. Robert and Philip Ng, sons of the late Far East Organisation founder Ng Teng Fong, retained their
top position on the list, with their estimated net wealth at $10.6 billion, up from $9.2 billion in 2012. Kwek
Leng Beng, chairman of City Developments, saw the biggest rise in his net wealth. His ranking also jumped
to the second spot from number six. He has a net worth of $7.1 billion, up from $2.4 billion. The Khoo family
kept its number three spot, with a net worth of $6.7 billion.
Govt selects seven merchant bankers for CIL stake sale
Goldman Sachs, Credit Suisse, Deutsche Bank and SBI Capital Markets are among seven merchant
bankers selected to manage the governments disinvestment of 5 per cent stake in Coal India (CIL). Kotak
Mahindra Capital, JM Financial and Merrill Lynch are the other bankers chosen. As many as 18 merchant
bankers had made presentations to the Disinvestment Department.
Essar Energy names Sushil Maroo as CEO
London-listed Essar Energy plc. has announced the appointment of Sushil Maroo as its Chief Executive
Officer in place of Naresh Nayyar, who was largely instrumental in shaping of the company. Mr. Nayyar, who
led Essar Energys much touted $350 million acquisition of U.K.s Stanlow refinery, has decided to step down
after more than three years at the helm.
Premature closure of savings bonds allowed
The Reserve Bank of India has permitted premature encashment of 8 per cent savings (taxable) bonds for
individual investors who are 60 years and above. This facility is after a minimum lock-in period of three years
from the date of issue. An investor, desiring to avail himself of the facility of premature encashment, will have
to submit documentary evidence in support of his/her date of birth to satisfaction of the agency bank. In case
of joint holders or more than two holders of savings (taxable) bonds, 2003, any one of the holders should
fulfil the above conditions of eligibility.
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Slowest growth in 4 yrs

Countrys first quarter Gross Domestic Product (GDP) data released by the Government reported a fall in
economic growth for the April-June quarter of FY14 at 4.4 per cent as against 5.4 per cent in the same
quarter in the previous fiscal.
Saraf set to be new boss at ONGC
Dinesh K. Sarraf, Managing Director, ONGC Videsh Ltd. (OVL), has been selected by the Public Enterprise
Selection Board (PESB) for Oil and Natural Gas Corporation (ONGC) Chairman and Managing Director. Mr.
Sarraf will replace present incumbent Sudhir Vasudeva, whose tenure ends in February 2014.
Indian Bank hikes FCNR (B) deposit rates
Indian Bank has hiked interest rates on FCNR (B) term deposits with effect from September 1. For deposits
of two years and above but less than 3 years in U.S. dollar, the revised rate will be 2.57 per cent (2.48 per
cent); for deposits of three years and above but less than 4 years 4.95 per cent (4.78 per cent) and for
deposits of four years and above but less than 5 years 5.38 per cent (5.17 per cent).
Crisis drives India to turn to Iran for oil
As its current account deficit widens and the value of the rupee dwindles, India plans to increase crude oil
imports from Iran so as to save $8.5 billion in foreign exchange. Yielding to sanctions imposed on Tehran by
the U.S. and the European Union so as to force it to roll back its nuclear programme, India slashed crude
imports from Iran by 26.5 per cent during 2012-13, buying just 13.1 million tonnes, against 18.1 million
tonnes the previous year. Because of the sanctions, India pays Iran in rupee through a UCO Bank branch in
Kolkata. Since July 2011, India had been paying Iran through the Ankara-based Halkbank in euro for 55 per
cent of its oil purchases. The rest was remitted in rupee in the accounts of the National Iranian Oil Company
in UCO Bank. Iran was Indias second biggest supplier after Saudi Arabia in 2010-11.
India receives highest FDI worth $1 bn in pharma in Apr-Jun
India's pharmaceuticals sector has received FDI of USD 1 billion, the highest among the top 10 segments,
during the April-June period this year amid concerns over increasing acquisitions of domestic firms by
multinationals.Foreign Direct Investment (FDI) in drugs and pharmaceuticals during April-June 2012 stood at
USD 465 million, according to the latest data of Department of Industrial Policy and Promotion (DIPP).
During the first quarter of the fiscal, the country attracted highest FDI from Singapore (USD 1.85 billion),
followed by Mauritius (USD 1.09 billion), Germany (USD 510 million) and the Netherlands (USD 408 million).
HSBC cuts FY14 growth forecast to 4% from 5.5%
HSBC has lowered India's GDP forecast for the current financial year to 4 percent from 5.5 percent earlier
saying economic uncertainty is likely to weigh on the growth forecast. According to the global financial
services major, growth is likely to slow in the near term due to tighter financial conditions and higher
macroeconomic uncertainty.
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Nomura cuts GDP growth estimates to 4.2% for 2013-14

Nomura India has cut the real GDP (gross domestic product) growth estimates to 4.2% from 5% for 2013-14.
The brokerage house has also retained its negative view on India's macroeconomic outlook for the next 3-6
months.
Govt cuts import tariff value of gold
The government, has reduced the import tariff value of gold to $458 per 10 grams due to fall in global prices
of the metal. It also cut the import tariff value of silver to $783 a kg. Earlier, tariff value the base price on
which the customs duty is determined to prevent under-invoicing of gold and silver stood at $461 per 10
grams and $803 a kg, respectively.
RBI zeroes in on 5 for panel to screen applications for new banking licence
The Reserve Bank is understood to have zeroed in on five names for setting up a high-level panel of experts
from the banking and financial sector to screen applications of the 26 aspirants for new banking licences.
The final decisions on the names of the members of High Level Advisory Committee (HLAC) would be taken
by new Governor Raghuram G Rajan, who would assume charge on September 5. In the last 20 years, the
RBI licensed 12 banks in the private sector. This happened in two phases. Ten banks were licensed on the
basis of guidelines issued in January 1993. The guidelines were revised in January 2001 based on the
experience gained from the functioning of these banks, and fresh applications were invited. Kotak Mahindra
Bank and Yes Bank were the last two entities to get banking licenses from RBI in 2003-04.
Core sector growth slows down to 3.1 % in July
The growth rate of the core sector, comprising eight infrastructure industries, decelerated to 3.1 per cent in
July when compared to a healthier 4.5 per cent in posted for the same month in 2012. The two sectors
primarily responsible for the slowdown were crude oil and natural gas, both of which experienced a
significant contraction in output. With the eight core industries coal, crude oil, natural gas, petroleum refinery
products, fertilisers, steel, cement and electricity accounting for a share of 38 per cent in the overall basket of
industrial production, the northward movement in growth may be seen as an indication of the slowdown
bottoming out on a sequential basis.
Novo Nordisk to launch Tresiba insulin injection
Danish pharmaceutical major Novo Nordisk, said it would soon launch its insulin injection Tresiba (insulin
degludec) in India. Novo Nordisk is the leading manufacturer of insulin in the world, and Tresiba, the new
basal insulin, is used for the treatment of Type 1 and Type 2 diabetes. Novo Nordisk India has 15 per cent
share in the diabetes care market with a significant share in insulin. India has 65 million diabetes patients
and 130 million pre-diabetes patients.
Verizon to buy Vodafones 45% in JV for $130bn
Verizon Communications said it has agreed to buy out Vodafone Group's 45% stake in Verizon Wireless for
$130 billion, capping its decade long effort to win full control of the most profitable mobile service provider in
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the United States. The deal marks the third largest announced acquisition in corporate history, after
Vodafone's 1999 buyout of Germany's Mannesmann for $203 billion and AOL's $165 billion takeover of Time
Warner in 2000.
Airtel revises select post-paid mobile rates
Some post-paid customers of Bharti Airtel will have to pay up to 50 per cent more for making calls from
September 8. In a message to post-paid customers registered under Advantage 199, one of its per-minute
billing plans. Local and STD rates of 50 paise per minute to Airtel mobiles will be increased to 60 paise, while
calls to landlines will go up to 90 paise per minute from 60 paise.
RBI diktat to banks on housing loan disbursal
Banks will no longer be allowed lump-sum disbursal of sanctioned housing loans. The Reserve Bank of India
has told the banks that disbursal of sanctioned loan will have to be closely linked to the stages of
construction of the housing projects/houses. And, the RBI has also made it clear to them that no upfront
disbursal should be made in cases of incomplete/under-construction/green field housing projects. The RBI
diktat comes in view of the higher risks associated with such lump-sum disbursal of sanctioned housing
loans.
RBI revises gold import norms
The Reserve Bank of India has revised the gold import norms to say that supplies of the metal to special
economic zones (SEZs) would not be counted as exports to qualify for further purchases from overseas. As
per the existing norms, 20 per cent of every lot of imported gold has to be made exclusively available for the
purpose of exports.
Karnataka Bank hikes interest rates on select NR(E) rupee deposits
Karnataka Bank, has raised the interest rates by 50 basis points on non-resident (external) rupee deposit
accounts for select maturities, the bank said in a regulatory filing to the Bombay Stock Exchange.
TCS bags multi-million euro deal from DNB
Tata Consultancy Services (TCS) said it had bagged a multi-million euro deal from Norwegian firm DNB.
Under the six-year managed services contract, TCS would handle delivery of application maintenance and
development services across DNBs IT portfolio, spanning channels, core-banking and master data areas.
NSEL issues notice to 14 defaulters
While National Spot Exchange Ltd. (NSEL) has declared its third pay-out amounting to Rs. 15.37 crore, it
issued notice to 14 defaulters for bouncing of cheques for settlement. As 19 out of the 24 members have
been declared defaulters, the recovery from these defaulting members would now be through recover
proceedings by way of sale of commodities lying in the warehouses, sale of assets offered by these
members or by payments made by the defaulting members through their own resources.
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Cabinet approves India-Abu Dhabi air services agreement

The Cabinet has approved the India-Abu Dhabi bilateral air services agreement which will enable their
airlines to fly more than 50,000 seats each week, up from the current 13,700. The agreement will allow the
designated carriers of India and Abu Dhabi to have 50,000-seat capacity each week. This increase of seats
would be carried out in a phased manner spread over a three-year period.
Hyundai Motor launches new compact car 'Grand i10'
Hyundai Motor India (HMIL) has launched its new compact car 'Grand i10' priced between Rs 4.29 lakh and
Rs 6.41 lakh (ex showroom Delhi) as it looks to enhance its position in the country. The Grand i10 comes in
two engine variants 1.1 litre diesel and 1.2 litre petrol. While the petrol variant is priced from Rs 4.29 lakh to
Rs 5.47 lakh, the diesel version is priced between Rs 5.23 lakh and Rs 6.41 lakh (ex Showroom Delhi).
Microsoft swallows Nokias handset business for $7.2 b
The once mighty Nokia mobile handsets and device business has fallen into the lap of American giant
Microsoft at a price tag of $7.17 billion. The announcement, made from Nokias headquarters in Helsinki,
said that under the deal, Microsoft will pay Euro 3.79 billion to purchase substantially all of Nokias device
and service business and Euro 1.65 billion to license Nokias patents for a total transaction price of Euro 5.44
billion in cash.
Rajan takes over as new RBI Gov
D Subbaraos 5- year stint came to an end as Raghuram Rajan took over as the 23rd Governor of the
Reserve Bank of India (RBI).With Rajans taking over, domestic currency wiped out initial losses and made a
smart recovery, rising 56 paise to 67.07 against the dollar, while Sensex surged 333 points and closed at
18,567.55. Among the youngest Governors, Rajan is 50 years old and previously has served as chief
economist at the International Monetary Fund and was most famous for predicting the 2008 global financial
crisis. Before taking the up the post of Governor RBI, he held the post of Chief Economic Advisor to the
Prime Minister.
Special window for swapping foreign currency deposit
The Reserve Bank of India has allowed banks to swap funds mobilised through foreign currency deposits to
attract overseas funds. It has been decided accordingly to offer such a window to the banks to swap the
fresh foreign currency non-resident (banks) FCNR(B) dollar funds, mobilised for a minimum tenor of three
years and over at a fixed rate of 3.5 per cent per annum for the tenor of the deposit. The RBI has been
receiving requests from banks to consider a special concessional window for swapping FCNR(B) deposits
that will be mobilised as per the recent relaxations permitted by the central bank.
India slips to lowest ever rank on global competitiveness
India has slipped to 60th position in terms of its competitiveness globally, while Switzerland has retained its
top rank. This is India's lowest ever rank and also 31 places below its peer emerging market China.
Releasing the annual Global Competitiveness Report 2013-2014, Geneva-based World Economic Forum
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(WEF) said highly innovative countries with strong institutions continue to top the rankings. While Switzerland
is on top for fifth year in a row, United States has reversed its four-year downward trend to occupy 5th
position and Japan has risen to ninth place. Singapore and Finland remain in second and third positions
respectively, while Germany moves up two places (4th). Two other Asian economies, Hong Kong SAR (7th)
and Japan (9th), also feature in the top ten of the rankings of 148 economies.
Toyota recalls 369,000 vehicles worldwide
Toyota is recalling 200,000 vehicles worldwide for a hybrid-system problem and another 169,000 vehicles for
an engine bolt defect. The first recall is over an inverter in the hybrid system for the Lexus RX400 and the
Highlander models overseas, and the Harrier and Kluger hybrids in Japan. Some 141,000 vehicles are being
recalled in the US, and 15,000 in Japan.
TCS wins multi-year project from Macau telecom firm
IT services major TCS has bagged a multi-million dollar project from Macau's leading telecom service
provider CTM for deploying rating and billing system. The company said that it has been selected by CTM for
a multi-year multi-million agreement for an IT and business transformation project.
Dassault Systemes acquires UK-based Safe Technology
Design software company Dassault Systemes said it has acquired UK-based Safe Technology, which
designs softwares for predicting product durability. France-based Dassault Systemes, a provider of 3D
design software, 3D Digital Mock Up and product lifecycle management solutions, has centres at six cities,
including Bangalore, Gurgaon and Pune.
Banks allowed to issue guarantee to non-residents
The Reserve Bank of India has allowed banks to issue bank guarantee on behalf of person resident outside
India for foreign direct investment transactions. This is expected to attract foreign capital to the country.
However, it said that the transaction would be in compliance with the provisions of the Securities and
Exchange Board of India (Substantial Acquisition of Shares and Takeover) Regulations.
Moodys downgrades subdebt ratings of 11 banks
Moodys Investors Service has downgraded subordinated debt ratings of 11 Indian banks, including SBI,
ICICI Bank and HDFC Bank. The subordinated debt and junior subordinated debt ratings of eight public
sector banks and three private lenders were lowered following a review that started on June 3. The senior
obligation ratings of the banks and their standalone baseline credit assessments were not affected. The other
banks affected are: Axis Bank, Bank of Baroda, Bank of India, Canara Bank, IDBI Bank, Indian Overseas
Bank, Syndicate Bank and Union Bank of India.

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Cash withdrawal of up to Rs.1,000 allowed via prepaid cards

The Reserve Bank of India has allowed cash withdrawals of up to Rs.1,000 a day through pre-paid cards,
including gift cards, issued by banks from point of sale terminals, a move aimed at enhancing customer
convenience in using plastic money. As of now, this facility was available only to debit cards issued by banks.
Disclosing financial aid must for pharma firms
For the first time, the Drug Controller General of India (DCGI) has made it mandatory for pharma companies
and sponsors to disclose the financial support or payments made to the clinical investigators for conducting
clinical trials. The much-awaited move by the top drug regulator, which is under fire from various quarters
including Supreme Court and a Parliamentary panel for allowing patients to be used as guinea pigs in the
conduct of drug trials, aims to make the process more transparent. It would minimise bias as well as keep a
tab if there is any conflict of interest between the sponsor and the clinical investigator.
ICICI Bank launches 'branch on wheels'
As part of its financial inclusion initiative, ICICI Bank claimed to have become the first private sector lender to
launch a 'branch-on-wheels' drive and will have five more such facilities in three states this year.
Maharashtra Chief Minister Prithviraj Chavan launched the branch-on-wheel in sugar hub of Kolhapur.
MRPL commissions single point mooring system
Mangalore Refinery and Petrochemicals Ltd. (MRPL) has successfully commissioned its single point mooring
(SPM) system off the Tannirbavi coast. MRPL set up the Rs.1,044 crore SPM, providing 30-meter draft that
can handle very large crude carriers (VLCC) and set up a booster pumping station within the Mangalore port.
An SPM is built when a port cannot take a VLCC due to lack of depth (draft) in the water. It is a buoy
located in the sea at a distance from the coast and it allows large vessels to load or unload cargo. Tugs are
smaller vessels that allow access to the VLCC. They also guide large vessels into the port.
Overseas travellers allowed to carry up to Rs.10,000
Providing greater flexibility to individuals travelling abroad, the Reserve Bank of India, has allowed them to
carry Indian currency of up to Rs.10,000 per person. The limit has been increased from the existing Rs.7,500
per person. Also, it allowed any person on a temporary visit outside India to bring into India at the time of his
return from any place (other than Nepal and Bhutan) currency notes up to an amount not exceeding
Rs.10,000 per person.
Union Bank hikes base rate, NRE deposit rates
Union Bank of India, has increased its lending rate by 25 basis points to 10.25 per cent. The rate hike is
effective from September 6. The bank has also revised its NRE (non-resident external) term deposit rates by
up to 0.75 percentage points in the three to five year maturity.

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PF online launched
The Employees Provident Fund Organisation (EPFO) has launched an online facility to enable its over five
crore subscribers to view details of transactions, including interest accrued in their account, on a real time
basis, instead of waiting for slips from the PF office. The EPFO also announced that it was planning to
introduce PF account transfer claims online from next month instead of the present practice.
Forex reserves dip by $2.2 billion
Indias foreign exchange reserves declined by a huge $2.23 billion to $275.49 billion during the week ended
August 30, on a sharp dip in the foreign currency assets, the Reserve Bank of India said. Total reserves had
dipped $1.09 billion to $277.72 billion in the previous reporting week. Foreign currency assets (FCA), a major
component of the forex reserves, dropped by $3.08 billion to $.40 billion. Special drawing rights (SDRs) were
down by $14.9 million at $4.374 billion.
L.H. Hiranandani passes away
L.H. Hiranandani, 96, Chairman of Hiranandani Group of Companies, passed away on September 5, 2013.
He was a recipient of Padmabhushan, and doctor by profession.
M&M Financial, Woori Financials to form JV
Mahindra & Mahindra Financial Services (Mahindra Finance) has signed a memorandum of understanding
(MoU) with Woori Financials to set up a joint venture for financing Ssangyong Motor vehicles in Korea.
India, Japan to expand bilateral currency swap arrangement
India and Japan have decided to expand their currency swap agreement, a financial tool to help cushion
volatility in foreign exchange markets, to $50 billion from $15 billion to strengthen bilateral financial
cooperation and stabilise the global financial markets.
Nitin Nohria joins board of Tata Sons
Nitin Nohria, the Dean of Harvard Business School, has been appointed as a non-executive Director of Tata
Sons with effect from September 6, 2013. Dr. Nohria has been the Dean of Harvard Business School since
July 1, 2010. He previously served as co-chair of the HBS Leadership Initiative, Senior Associate Dean of
Faculty Development and Head of the Organisational Behaviour Unit of Harvard Business School.
Microsoft wins another patent battle against Motorola
Microsoft has reportedly won another victory in its long-standing patent dispute with search giant Google.
The recent victory is related to Google-owned Motorolas claim that it licensed the technologies used in the
Xbox console and Windows software on fair terms. A U.S. judge announced that Motorola had breached
agreements to licence its patent products at a reasonable rate and in return Microsoft had been awarded
around $15million in damages.

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FDI up 6% to $10.87 billion in January -June 2013

Foreign direct investment (FDI) into India increased by 6 per cent year-on-year to $10.87 billion during the
first six months of 2013. According to data from the department of industrial policy and promotion (DIPP), the
country had received $10.27 billion of FDI in January-June, 2012. Sectors that received large FDI inflows
include hotels and tourism, pharmaceuticals, services, chemicals and construction. Most of the inflows came
from Singapore, Mauritius, the Netherlands and the US.
DHS Hotels ties up with ITC arm
DHS Hotels Private Limited, has formally entered into an operational and marketing agreement with Fortune
Park Hotels Limited, a wholly-owned subsidiary of ITC, for its Hotel Grand Ridge, a premier property in
Tirupati. After the tie-up, the hotel functions in the name of Fortune Select Grand Ridge.
Par panel suggests SteelMin to either ban iron-ore export or hike duty
Taking cognizance of Planning Commissions observation that despite the fact that current reserves of ironore in the country may not be sufficient to meet the domestic industrys demands beyond the next 25 years,
India exported 486 million tonnes of raw material worth Rs 1.85 lakh crore during the 11th Plan period. The
Parliamentary Standing Committee on Coal and Steel has recommended that Government should either
completely ban iron-ore exports or further reduce the existing 30 per cent export duty on it, as doing so
would save the valuable raw material for future use of the domestic iron and steel industry. The
Parliamentary panel which is led by Trinamool Congress MP Kalyan Banerjee, has made these observations
in its review report on the countrys iron-ore export policy.
China buys into giant Kazakh oilfield for $5 bn
President Xi Jinping will oversee China's entry into Kashagan, a vast oilfield in Kazakhstan, as he tours postSoviet Central Asia to secure hydrocarbons for the world's largest energy consumer. The $5 billion deal
futher increases China's rising clout in Central Asia, once Russia's imperial backyard, and blocks an attempt
by global rival India to get a stake in the oilfield, the world's largest oil discovery in five decades. Kazakhstan
will sell 8.33 per cent of the offshore oilfield to China for about $5 billion in a deal to be signed during Xi's
visit to the capital Astana.
Airtel Bangladesh wins 5 Mhz of 3G spectrum for $105 mn
Bharti Airtel's subsidiary in Bangladesh won 5 Mhz of third generation (3G) spectrum for USD 105 million in
an auction. The Bangladesh Telecommunication Regulatory Commission sold 25 megahertz (MHz) of 3G
airwaves for USD 525 million to four telecom operators which include Grameenphone, Robi Axiata, Airtel
Bangladesh and Banglalink Digital Communications. The country's largest mobile operator Grameenphone
secured 10 Mhz of spectrum for USD 210 million while the remaining three acquired 5 Mhz each at a price of
USD 105 million.

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FMC comes under Finance Ministry

The Forward Markets Commission (FMC), chief regulator of forwards and futures commodity markets in
India, will, henceforth, be overseen by the Ministry of Finance instead of the Department of Consumer Affairs
under the Ministry of Food. This decision was taken at the highest level, and notified in the wake of alleged
scam in National Spot Exchange Limited (NSEL). The decision has since got the approval of President
Pranab Mukherjee. The FMC is a statutory body set up under the Forward Contracts (Regulation) Act, 1952.
Till March 2009, it had regulated Rs. 52 trillion worth of commodity trade.
Tata Motors ties up with DRB-HICOM of Malaysia
Tata Motors said it had entered into a partnership with DRB-HICOM of Malaysia for import, distribution and
assembly of its commercial vehicles in the country as part of ongoing global footprint expansion. As part of
the pact, the company has signed a distribution and technology licence agreement with USF-HICOM
(Malaysia) Sdn. Bhd., a subsidiary of DRB-HICOM Berhad.
Russia lifts ban on non-basmati rice imports from India
Russia has lifted the ban on import of non-basmati rice and oilseeds from India, a move likely to give boost to
exports of rice to that country following the intervention of Commerce and Industry Minister Anand Sharma
during his visit to ASEAN Ministerial meeting in Brunei in August 2013. About eight months ago, Russia had
imposed the ban on import of Indian non-basmati rice due to the presence of khapra beetles pest in rice and
aflatoxin contamination of peanuts.
Canara Bank to charge for sending SMS alerts
Canara Bank, said it would charge Rs.60 a year to customers for SMS alerts beginning October. Canara
bank is compelled to charge Rs.15 per quarter per customer with effect from October 1, for SMS services
and those who have opted for SMS alerts. However, the bank said senior citizens, small savings account
holders, basic bank accounts holders, and financial inclusion savings account holders would not be charged
any such fee.
RBI relaxes KYC norms for UCBs to cater to foreign students
To help foreign students studying in the country to open bank accounts, the Reserve Bank has extended
relaxation in mandatory know-your-customer norms to urban cooperative banks (UCBs) for this purpose.
UCBs may open a non-resident ordinary (NRO) bank account of a foreign student on the basis of his/her
passport (with appropriate visa and immigration) which contains proof of identity and address in the home
country along with a photograph and a letter offering admission from the educational institution. However, it
limited the inward transaction in the first 30 days at USD 1,000 only and withdrawal at Rs 50,000, pending
verification of address. Pakistani students will need prior approval of the Reserve Bank to open a bank
account.

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Gold imports fall 95% in August

India's gold imports crashed 95% in August to just 2.5 tonne from month before. Gold imports slumped from
47.5 tonne in July, 31.5 tonne in June, 162 tonne in May and 142.50 tonne in April. The government aims to
reduce the CAD from $88 billion, or 4.8% of the gross domestic product (GDP), last fiscal to $70 billion, or
3.7% of the GDP, in 2013-14, and is desperately attempting to curb non-essential imports, including those of
gold, to achieve the target.
Jindal Group to set up power plant in Liberia
Liberia's president and Nobel peace prize winner Ellen Johnson Sirleaf, during her one-day visit to
Chhattisgarh, signed a Memorandum of Understanding (MOU) with Jindal Group for setting up a 350 MW
power plant in the west African nation.
Changes in FDI policy notified
The government has notified changes in the foreign direct investment (FDI) policy, paving the way for larger
overseas investments in sectors such as multi-brand retail and telecom. It also widened the definition of the
term control for mergers and acquisitions involving overseas companies, a move that will provide more
clarity to foreign investors.
Market regulator puts MCX-SX on watch list
Market regulator Securities and Exchange Board of India put MCX-SX stock exchange on watch, noting its
recognition could be withdrawn if there is "adverse findings by any other regulator" about it. MCX-SX and the
troubled commodity market entity NSEL have been promoted by the same Financial Technologies led by
Jignesh Shah.
Crisil lowers India's growth estimate to 4.8%
Rating agency Crisil has revised its growth estimate for the current fiscal to a decade low of 4.8% even as it
raised agriculture growth to 4.5% which is more than double of last year 1.9%. Growth is expected to be
dragged down by services the bulwark of the economy for years which is expected to grow at just 6.5% this
fiscal compared with the nearly 10% through the last decade.
Govt all set to close down Petronet India Ltd
Government is all set to clear the closure proposal of Petronet India Ltd (PIL), which has virtually become
defunct as the objective for which it was set up in 1997 - to lay oil pipelines across the country - is now being
fulfilled by the three oil marketing companies (OMCs) namely Indian Oil Corp (IOC), Bharat Petroleum Corp
Ltd (BPCL) and Hindustan Petroleum Corp Ltd (HPCL). The state-owned oil companies are incidentally
stakeholders in PIL.

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ArcelorMittal loses arbitration case against Senegal

The Senegalese Government has won an initial ruling in an international arbitration case concerning an iron
mining project in the southeast of the country. The world's top steel company said it concluded an agreement
with Senegal in 2007 to develop the Faleme project in the Tambacounda region to mine iron ore, a key
component of steel. The envisaged investment of $ 2.2 billion (1.7 billion euros) was the biggest industrial
project in the west African country, and was due to have started operations in 2011 and produce 25 million
tonnes of iron ore per year.
PMEAC lowers GDP estimate to 5.3 per cent for FY14
India's economy is expected to grow at 5.3 per cent in the current fiscal year, the Prime Minister's Economic
Advisory Council (PMEAC) said, sharply lower than an estimate of 6.4 per cent it made earlier this year.
PMEAC also said containing the fiscal deficit within the budgeted target of 4.8 per cent of GDP could be a
challenge. The new growth estimates are in line with projections of the central bank and many private
economists, who expect Asia's third-largest economy to grow at around 5 per cent. The panel said the
Current Account Deficit (CAD) will moderate to 3.8 per cent of GDP in 2013-14 from 4.8 per cent a year ago.
The inflation for the current fiscal year is expected to be 5.5 per cent, lower than 6 percent in 2012.
RBI to invest $4.3 bn in World Bank bonds
The government has permitted Reserve Bank of India (RBI) to invest $4.3 billion in special bonds of the
World Bank, which would raise the agency's lending limit to India by a similar amount to $21.8 billion for
infrastructure investment. The decision to allow Reserve Bank of India to enter into a special private
placement bond agreement with the International Bank for Reconstruction and Development (IBRD) was
approved by the Union Cabinet, headed by Prime Minister Manmohan Singh. Currently the limit for a single
borrower of the World Bank is USD 17.5 billion.
India's growth likely to be at 5.2 per cent in 2013
The Indian economy is likely to grow at 5.2 per cent in 2013 calendar year on the back of rising domestic
demand. In its release of Trade and Development Report 2013, the United Nations Conference on Trade and
Development (UNCTAD) said the Indian economy is expected grow at 5.2 per cent in calendar year 2013 as
against 3.8 per cent in 2012. UNCTAD's India growth forecast at 5.2 per cent for 2013 is however lower than
the International Monetary Fund's projection of 5.6 per cent for the year.
ICICI Bank launches security features loaded credit card
ICICI Bank has launched a credit card with multiple security features to check fraudulent transactions. The
private lender claimed it was Asia's first 'carbon credit card' with Visa CodeSure technology and comes with
some of the best possible security features. Called the ICICI Bank Carbon card, it comes with EMV chip
technology, apart from an alpha-numeric LCD screen, a 12- button touch keypad and an in-built battery. The
bank wants to sell the card primarily to its existing customers. The chip enables a card user to generate
secure one- time pass codes for online transactions instantly on the card itself.
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KYC norms for foreign investors eased

Making Indian capital markets an easier place to invest, the Securities and Exchange Board of India (SEBI),
has relaxed registration and disclosure norms for low-risk foreign investors and exempted low-risk overseas
entities from tedious paper work. SEBI also classified foreign investors eligible to make portfolio investments
in the country under three broad segments as per their risk profile, while putting the government and other
sovereign entities in the lowest-risk Category I. Well-regulated entities such as mutual funds, insurers,
investment trusts, banks, university funds and pension funds have been put in the medium-risk Category II,
while others such as corporate bodies, individuals and family offices have been classified in the Category III.
GoM clears refund to BSNL, MTNL for giving up spectrum
The Group of Ministers (GoM), headed by Finance Minister P. Chidambaram, has decided to refund over
Rs.11,000 crore to BSNL and MTNL, the two state-run players, for returning broadband wireless access
(BWA) spectrum. High wage costs had been a major reason for these companies running into losses. The
employee cost as a percentage of revenue is over 103 per cent for MTNL and 49 per cent for BSNL
compared to the industry average of about 5 per cent.
India Infoline Finance to raise Rs 1,050 cr via NCDs
India Infoline Ltds non banking financial company (NBFC), India Infoline Finance Ltd has announced the
launch of secured redeemable non-convertible debentures (NCD). The NCDs will be of three or five years
investment modes and the issue will open on September 17 and close on October 4. Face value of the
NCDs will be Rs 1,000 each with the basic issue size of Rs 525 crore with an option to retain
oversubscription up to Rs 525 crore. The NCDs have an option of monthly and annual interest payment and
the yield works out to 12.68 per cent p.a. for the monthly interest option and 12 per cent p.a. for the annual
interest option.
Inflation rises to 6-month high of 6.1% in August
The Government has announced the wholesale price index (WPI) rose to 6.17 per cent for the month of
August. This has been the third month in the row when inflation has risen and this time it happened on the
back of vegetables becoming costlier. Inflation numbers rose for 5.79 per cent in July to a six month high as
the prices of most of the vegetables jumped multifold. As compared to July numbers, during August inflation
in primary articles rose by 3.8 per cent. The index for food articles rose by 5.3 per cent and that of fruits and
vegetables jumped by 13 per cent. The mineral index rose by 0.7 per cent in August on sequential basis.
Asia Index set up
Premier stock exchanges BSE and S&P Dow Jones has announced a joint venture company, Asia Index, to
provide an array of indices enabling global and domestic investors to participate in South Asias vibrant
economies. The 50:50 partnership would bring together BSEs closely-watched India index suite, which
includes the Sensex, with S&P Dow Jones Indices 115 years of experience in publishing transparent and
independent global benchmarks.
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New banking platform

Polaris Financial Technology, has launched a global transaction banking platform, iGTB, at Sibos, Dubai.
Building on a worldwide customer base, the third generation platform with a built-in corporate business
exchange, enables transaction banks to position themselves as the principal banks for their corporate
customers. iGTB is a platform to seize the tremendous global transaction banking opportunity, estimated by
the Boston Consulting Group at $ 509 billion by 2021.
Govt plans sovereign wealth fund
The Union government is setting up a company India 'Overseas Investment Corporation (INOIC)' under the
finance ministry on the lines of a sovereign wealth fund to lend financial muscle for securing access to
overseas natural resources. A concept note prepared by the ministry goes beyond the conventional reasons
of acquiring energy assets to justify the need for INOIC. With INOIC, India will join a select group of
economies such as US, Russia, China, South Korea, Singapore, Malaysia, Brunei, Qatar and UAE that have
pushed overseas acquisitions and business through such funds. INOIC will not borrow from RBI and will
purchase or swap its rupee funds with foreign currency from the central bank at market rates. This will
ensure a market-oriented mechanism and avoid management of temporary surplus forex funds.
Banks told to enforce ban on card use for online forex trade
The Reserve Bank of India, has asked banks to close the accounts of customers using credit or debit card
for online forex trading transactions, which are prohibited. As and when any the bank comes across any
prohibited transaction undertaken by its credit card or online banking customer, the bank will immediately
close the card or account of the defaulting customer. If it is observed that the bank concerned has failed to
carry out the measures as outlined above, the RBI may proceed against the defaulting bank.
Forex tradings through portals are mostly done on a margining basis with huge leverage or on an investment
basis, where the returns are based on forex trading. The public is being asked to make the margin payments
for such online forex trading transactions through credit cards or deposits in various accounts maintained
with banks in India.
FMC panel to look into tech-based trading
The Forward Markets Commission (FMC) has constituted an Advisory Committee to look into issues arising
out of technology-enabled trading facilities such as algorithmic offered on the national commodity bourses. At
present, there are 21 commodity bourses in the country, of which six are national level commodity bourses.
Govt hikes import duty on gold jewellery to 15%
The finance ministry has increased the import duty on gold jewellery to 15 per cent from the earlier rate of 10
per cent in order to provide a level playing field for domestic manufacturers. India is the world's largest buyer
of gold, jewellery imports amount to less than 5 per cent of the total gold imports into the country. Most of the
jewellery that is imported into India comes from Italy, Turkey, Dubai, Thailand, Hong Kong and the United
States.
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Saji Cherian new CEO& MD of NSEL

National Spot Exchange has appointed Saji Cherian as new CEO and Managing Director of the bourse,
nearly a month after sacking its previous chief Anjani Sinha. Sinha was sacked on August 20 following
payment crisis of about Rs5,500 crore in the exchange after it shut down the operation in the wake of
government order. The board of NSEL appointed of Saji Cherian as the Managing Director and Chief
Executive Officer of the company with effect from September 16, 2013.
Yes Bank ties up loan
Yes Bank said it had tied up a loan facility equivalent to $255 million in dual currency from international
lenders. The syndicated loan facility comprises $180 million and Euro 58 million. The loans will be utilised for
corporate purposes and for trade finance. The commitments, which have a maturity of 1 and 2 years, have
come from 11 banks in eight countries across the U.S., Europe, Middle East and Australia.
Rise in direct tax
Net direct tax collection rose by 12.5 per cent to Rs.2.38 lakh crore in the first six months of the current fiscal
mainly on account of growth in personal income tax collection. Net direct tax collection between April 1 and
September 17 in the previous fiscal was Rs.2.11 lakh crore. Advance Tax collection in the September quarter
grew by 9.14 per cent to over Rs.1.14 lakh crore.
J&K Bank chief gets extension
Jammu & Kashmir Bank, said its Chairman and Chief Executive Mushtaq Ahmad had been reappointed for a
three-year period after the Reserve Bank of India cleared the proposal.
NRIs, foreigners cant leave with rupee
A new directive from the Reserve Bank of India (RBI), from now on every non-resident Indian (NRI) and
foreigner leaving the country will have to compulsorily change Indian rupees in their possession into a
foreign currency before they board the flight. It's a common practice among NRIs to carry some amount of
Indian currency with them when they leave the country, mainly for the convenience of not having to
exchange forex into rupee when they return the next time. But from now on, they will not be allowed to carry
any Indian notes with them. RBI has allowed NRIs to carry up to Rs 10,000 beyond the immigration and
customs desks, and to the duty-free shopping and security checking areas in the departure hall in
international airports to meet miscellaneous expenses.
Amendments to SEBI Act gets Presidential assent
The bill amending the SEBI Act to widen the pool of eligible candidates for the post of presiding officer at the
Securities Appellate Tribunal (SAT) has received the Presidential assent. Earlier, Parliament had approved
the Securities and Exchange Board of India (Amendment) Bill, 2013.The government in July 2013 had
appointed JP Devadhar, a former Justice at Bombay High Court, as the SAT presiding officer. The post was
vacant since November, 2011. Since suitable candidates could not be immediately found.
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OVL blocks Chinese bid, to buy stake in Brazilian oilfield

In a first by an Indian firm, ONGC Videsh Ltd (OVL) has exercised its pre-emption rights to block China's
Sinochem Group from buying 35 per cent interest in a Brazilian oilfield for $1.54 billion. OVL, the overseas
arm of state-owned Oil and Natural Gas Corp (ONGC), in collaboration with Royal Dutch Shell will buy the 35
per cent stake in block BC-10, known as Parque das Conchas, that Brazil's Petrobras had planned to sell to
Sinochem. While the Indian firm will pick up 12.08 per cent stake, the remaining 23 per cent will go to Shell.
OVL currently has a 15 per cent stake in the block which is entitled for an extra 8 per cent taken from the 35
per cent stake being sold by Petrobras. Shell is the operator with 50 per cent share.
VAT amnesty scheme announced
The Delhi Government has announced a comprehensive VAT Amnesty Scheme which will encourage
registered as well as unregistered dealers to voluntarily disclose their outstanding tax dues for the period
ending March 31, 2013. The scheme will cover all outstanding tax dues even for the erstwhile sales tax
regime. The dealers will need to self-declare and pay 50 per cent of admitted tax by January 31, 2014, and
the balance by March 21, 2014. The works contractors and builders can also settle their tax dues by paying a
turnover tax at 3 per cent (1 per cent in case the value of land is included in total cost).
46 drugs to be sold only on doctor's prescription from March 1
Habit-forming antibiotics, anti-TB and other such drugs like sleeping pills will not be freely available at
chemists from March 1, 2014, following a government notification that regulates the use of 46 such
medicines. These drugs won't be available over-the-counter (OTC), and will be sold only through a doctor's
prescription. Chemists will have to record the names and addresses of prescriber and buyer of all such drugs
in a separate register. As per the notification, such records will have to be maintained for three years and
they will be open for inspection by the regulatory authority, the Drug and Controller General of India ( DCGI).
Such drug formulations in Schedule H1 will also carry a symbol "Rx" printed in red colour on the top left-hand
corner of the label.
RBI sets up panel to study financial services for small businesses
The Reserve Bank of India has set up a committee on comprehensive financial services for small businesses
and low-income households. The committee will be headed by Nachiket Mor, member on the Central Board
of Directors, Reserve Bank of India. The committee has been asked to come out with a set of design
principles that will guide the development of institutional frameworks, and regulation for achieving financial
inclusion and financial deepening. The committee has also been asked to develop a comprehensive
monitoring framework to track progress of the financial inclusion and deepening efforts on a nationwide
basis. Besides Dr. Mor, the committee will have 12 members from diverse fields.
Indias first CSR index on its way
In an effort to facilitate greater corporate participation in corporate social responsibility (CSR) areas, BSE
(formerly Bombay Stock Exchange Ltd.),has signed a memorandum of understanding (MoU) with Indian
Institute of Corporate Affairs (IICA) to collaborate and develop a CSR index and increase awareness about
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CSR. The new Companies Act 2013 has mandated eligible companies to spend 2 per cent of their profits on
CSR activities.
Federal Bank MD
The Reserve Bank of India has approved a three-year extension for Shyam Srinivasan, Managing Director &
CEO of Kerala- headquartered Federal Bank. The extension would be with effect from September 23, 2013.
Mr. Srinivasan first took charge as MD and CEO on September 23, 2010.
Panel on NSEL submits report
The high-level panel on alleged irregularities at NSEL has submitted to the Finance Minister its report which
is believed to have pointed out certain minor systemic failures in the functioning of the exchange. The report
details long term measures, Economic Affairs Secretary Arvind Mayaram, who headed the Panel, told
reporters. Meanwhile, the NSEL report has found minor systematic failures in the functioning of the
exchange.
CCEA approves auction norms for coal blocks
The Union Cabinet has approved the methodology for auctioning coal blocks, enabling the government to
allot coal mining licences through competitive bidding for the first time. The move comes nearly three years
after Parliament vetted changes in allocation procedure. Coal blocks, since 1993, used to be allocated on
recommendations of an empowered inter-ministerial panel. The Cabinet Committee on Economic Affairs
(CCEA) approved the production-linked payment on rupee per tonne basis, plus a basic upfront payment of
10 per cent of the intrinsic value of the coal block. The intrinsic value of coal block will be calculated on the
basis of net present value of the block arrived through Discounted Cash Flow (DCF) method.
RBI fixes cut-off price at Rs. 82 for inflation indexed bonds
The Reserve Bank of India set the cut-off price at Rs. 82 on inflation-indexed bonds (yield-to maturity 3.6624
per cent) for a notified amount of Rs. 1,000 crore at the bond auction held. The RBI received 83 competitive
bids for an amount of Rs. 2,102 crore. It accepted 46 bids for an amount of Rs. 960 crore, and the
devolvement on primary dealers amounted to Rs. 40 crore. At the special repo auction held for purchase of
securities by the RBI with a fixed rate of 10.25 per cent. Under the liquidity adjustment facility, the RBI
conducted one-day reverse repo auction for sale of securities at a fixed rate of 6.50 per cent.
Seventh Pay Commission for central govt employees announced
The government has decided to finally announce the Seventh Pay Commission for central government
employees. The Commission may submit its report in two years and the recommendations made by it will be
implemented by 1 January, 2016. This move will benefit about 50 lakh central govt employees and 30 lakh
pensioners. Previously the government had admitted that demands were made for setting up of 7th Pay
Commission, but no such proposal was under consideration for such exercise. The increase in DA to 90
percent would result in additional annual expenditure of Rs 10,879 crore.
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LVB hikes deposit rates

Lakshmi Vilas Bank has revised the interest rates on domestic term deposits of one year to 10 per cent from
the existing 9.50 per cent. For deposits of above one year and less than two years, the bank will be offering
9.50 per cent (9.25 per cent). For two years and up to five years, the rate will be 9.25 per cent (9 per cent).
All-female BPO in Saudi Arabia
Tata Consultancy Services (TCS) has tied up with Saudi Aramco and General Electric (GE) to set up the first
all-female business process outsourcing (BPO) centre in Saudi Arabia, creating job opportunities for 3,000
women. TCS and GE will own 76 per cent and 24 per cent, respectively, of the equity in the new venture.
The centre in Riyadh will be staffed by Saudi females, and will start by catering to Saudi Aramco and GE as
anchor clients.
RBI relaxes trade credit norms
Relaxing norms to raise funds from abroad, the Reserve Bank of India, said all types of companies can now
avail themselves of trade credit facility from overseas for import of capital goods. Earlier, only companies in
the infrastructure sector were allowed to raise such trade credits.
The RBI further said that the ab-initio contract period of 15 months for all trade credits has been relaxed to 6
months.
CCEA approves shale gas and oil exploration programme
The Cabinet Committee on Economic Affairs (CCEA) has approved the long-awaited shale gas and oil
exploration programme to boost domestic output. In the first phase, state-owned Oil and Natural Gas Corp
(ONGC) and Oil India Ltd (OIL) have been permitted to explore for and produce shale oil and gas from
onland blocks that were allotted on a nomination basis before advent of the New Exploration Licensing
Policy in 1999. They will be permitted three assessment phases of a maximum period of three years each.
Royalty, cess and taxes would be payable at par with conventional oil/gas being produced from the
respective areas. As per available data, six basins -- Cambay (in Gujarat), Assam-Arakan (in the North-East),
Gondawana (in central India), KG onshore (in Andhra Pradesh), Cauvery onshore and Indo-Gangetic basins,
hold shale gas potential.
World Bank approves funding for Myanmar power project
The World Bank Group (WBG) has announced that its board of executive directors has approved USD 140
million of interest-free credit to fund the installation of a modern power plant in Myanmar's Mon state. The
funding comes from the International Development Association (IDA), the WBG's fund for the poorest
developing countries. The project will replace aging gas turbines with new units, which will produce 250
percent more electricity with the same amount of gas and reduce emissions. It is the first step to bringing
more and cleaner electricity to the people of Myanmar.

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Banks told to end zero interest EMI schemes

With the festival season fast approaching and banks and merchant establishments falling head over heals to
woo clients, the Reserve Bank of India dealt a severe blow to them. The Central Bank has instructed banks
to stop offering zero interest EMI (equated monthly instalment) schemes for the purchase of consumer goods
in a move to discourage them from offering such schemes or products. It has instead told banks to offer
uniform interest rates and processing fee on EMI-based credit card schemes for retail products. The RBI also
asked banks to terminate their relationships with merchant establishments which levied a fee on customers
who make payments for goods and services through debit cards.
TRAI for pan-India number portability in six months
The Telecom Regulatory Authority of India (TRAI), has recommended implementation of mobile number
portability across the country within six months. When implemented, this will allow users to retain their mobile
numbers even when they shift their service area. Presently, mobile number portability (MNP) is available
within the same service area. The regulator suggested that service providers be given six months time to
implement full MNP in the country.
Indirect tax collections up 4.1 %
Indirect tax collections grew at 4.1 per cent in the April-August period of this fiscal. Total collections of indirect
taxes - excise, customs and service tax, stood at about Rs.167,000 crore during the first five months of the
2012-13 fiscal. Excise collections for April-August period stood at Rs.62,000 crore, whereas customs mop up
was Rs.71,000 crore during the period. Service tax collections, which have become a new focus area for
revenue officials, stood at Rs.34,000 crore during the period.
WGC new Chairman
The World Gold Council (WGC), said it had elected Randall Oliphant as its new Chairman, succeeding Ian
Telfer, who steps down from the board. The U.K.-based WGC is the market development organisation for the
gold industry working within the investment, jewellery and technology sectors, as well as engaging in
government affairs, whilst stimulating and sustaining demand for gold.
RBI governor Raghuram Rajan receives Deutsche Bank Prize
Reserve Bank of India governor Raghuram G Rajan has been awarded the Fifth Deutsche Bank Prize for
Financial Economics 2013, in recognition of his ground-breaking research work which influenced financial
and macro-economic policies around the world. The academic prize is sponsored by the Deutsche Bank
Donation Fund and carries an endowment of euro 50,000. The Centre for Financial Studies (CFS) awards
the prize bi-annually in partnership with Goethe University Frankfurt. Presenting the prize to Rajan, Deutsche
Bank co-chairman Juergen Fitschen said that it would have been hard to find a more deserving winner for
this year's award.

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GAAR rules notified

The government has notified the controversial anti-avoidance tax rules, which will be implemented from April,
2016, and apply to business arrangements with a tax benefit exceeding Rs.3 crore. The General Anti
Avoidance Rules (GAAR) provisions will come into force from April 1, 2016, the Central Board of Direct.
Taxes (CBDT) said in a notification dated September 23.
Bangladesh begins import of power from India
Bangladesh, has began importing electricity from India on an experimental basis, adding 50 MW to the
national grid. The import, which took roughly three years to materialise after it was decided in 2010, was part
of the countrys plan to help ease the crisis. The test-supply of 50 MW electricity was transmitted through an
electrical grid inter-connection point in Bheramara, Kushtia, opposite to West Bengal of India. A 125-km
transmission line has been constructed between Baharampur of India and Bheramara in Bangladesh. Of
this, 40 km fell inside Bangladesh. The two countries signed a memorandum of understanding (MoU) in 2010
regarding import of 500 MW of power from India.
House panel opposes bank licence for corporates
A Parliamentary panel has opposed giving new bank licences to corporate houses and voiced concerns over
the discretionary power vested with RBI for applying fit and proper criteria for deciding on applications. The
Parliamentary Standing Committee on Finance, headed by former finance minister Yashwant Sinha, finalised
its report on the new bank licences. As per the guidelines for grant of new bank licences, RBI can reject or
accept an application on the basis of fit and proper criteria. The members want that there should be clarity on
the issue and there should be ambiguity with regard to the applicability of the fit and proper criteria. As many
as 26 applications had been received for bank licences on the close on July 1, 2013.
Unlisted companies can now directly list abroad
In a conscious bid to shore up dollar inflows in the wake of a widening current account deficit (CAD), the
government has permitted unlisted companies to directly list on stock exchanges abroad without prior or
simultaneous listing on Indian bourses. Hitherto, unlisted companies incorporated in India were not allowed
to directly list in overseas markets without prior or simultaneous listing in Indian markets, either for raising
funds for acquisitions or for retiring debts.
U.S court reverses patent order on Dr. Reddys
The United States Court of Appeals for the Federal Circuit has ruled that Dr. Reddys Laboratories Ltd. will
infringe on the patent of Sunovion Pharmaceuticals blockbuster drug Lunesta. Lunesta (eszopiclone) is the
prescription brand to treat insomnia. Sunovin is a wholly-owned subsidiary of Dainippon Sumitomo Pharma
Co. Ltd (DSP).
Foreign exchange reserves jump by $2 billion
Foreign exchange reserves jumped by $2.03 billion to $277.38 billion for the week ended September 20, the
biggest weekly gain in nearly two years, on the back of concessional swap facilities offered to banks by the
Reserve Bank of India.
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U.S. fines Japanese auto-parts firms over price fixing

Nine Japan-based companies and two executives have agreed to plead guilty for their role in conspiracies to
fix price of parts sold to U.S. automakers, while agreeing to pay over $740 million as fine.
Government notifies Schedule H1 drugs
With the Union Health and Family Welfare Ministry notifying amendments to the Drugs and Cosmetics Act
1940, antibiotics and anti-Tuberculosis drugs will not be sold over the counter from March 1, 2014. The
government had included a new provision, Schedule H1 to the Drugs and Cosmetics Act to check the
indiscriminate use of antibiotics, anti-TB and some other drugs in the country. As many as 46 drugs have
been placed under this restricted category which mainly comprises third and fourth generation antibiotics,
anti-TB and some other drugs. The packaging of these drugs will have mandatory warning printed on them in
a box with a red border on the label and will be sold by chemists on production of a prescription. The chemist
will retain a copy of the prescription and maintain a separate register for these 46 drugs where the name of
the patient and the details of the doctor who prescribed the drugs will be noted. This register will have to be
kept for three years before being destroyed.
Canara Bank to take over Amanath bank
In a development that promises to end the long wait of thousands of customers of Amanath Cooperative
Bank for return of their deposited money, Canara Bank has agreed take over the crisis-hit bank. Canara
Banks decision to take over 36-year-old cooperative bank has been communicated to Reserve Bank of
India.
Revised Rajiv Rinn Yojana set to roll out
With banks and housing finance companies agreeing to disburse more funds as loans under the subsidised
loan scheme, the Rajiv Rinn Yojana (RRY), the Housing and Urban Poverty Alleviation Ministry (HUPA) will
soon write to States to determine their targets for the schemes implementation. Under the RRY, loans are
offered to the economically weaker sections (EWS) on subsidised interest rates for a 15-year tenure for
buying houses. The scheme will offer an interest subsidy on Rs. 5 lakh for an EWS individual for a house
spread over at least 21 square metres. In the LIG category, the subsidy on interest will be up to Rs. 5 lakh.
China launches first FTZ in Shanghai to start wave of reforms
China has launched a major free trade zone in its commercial hub Shanghai as the the world's secondbiggest economy braces for the boldest reform move to liberalise regulations on finance, investment and
trade. The Shanghai FTZ, which covers an area of 29 sqaure km in the gleaming metropolis, is seen as a
testing ground for the Communist giant's ability to make structural changes and realign its economic model in
the face of slowing growth that currently stabilised around 7.5 per cent GDP.

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