Steel min plans to increase iron ore export duty by 10%

The government proposes to tighten its control on the mining sector through fiscal measures aimed at checking exports of iron ore to the lucrative Chinese market. The steel ministry is working on a proposal to increase the export duty on iron ore from the present 20% to 30% to enhance export deterrence. While the ministry maintains that the rationale behind such a hike is to ensure sufficient supply of raw material for the domestic steel industry, the move also aims to check illegal mining as it continues to flourish in China. “We are looking at another 10% hike across the board in iron ore export duty. The draft of the proposal is being worked out and would be discussed with the commerce and finance ministries,” a steel ministry official said.

Source : http://www.financialexpress.com/news/Steel-min-plans-to-increase-iron-ore-export-duty-by-10-/844251/

Competition Council to act as a forum to resolve turf wars among regulators

The government has said a proposed competition council will act as a forum to resolve turf wars among regulators as it fears a possible rise in disputes once the Competition Commission of India, or CCI, begins to enforce antitrust laws. As inter-regulatory conflicts will eventually hurt consumers and pose investment risks, the "NCPC (National Competition Policy Council) will help avoid overlap of mandate and interpretation of competition, jurisdiction and legislation between CCI and the other regulators," a corporate affairs ministry official said requesting anonymity. The corporate affairs ministry had come out with a draft National Competition Policy in July that seeks to assess existing public policies and ensure that these do not restrict or harm competition. Under this draft policy, it was proposed to set up an NCP Council to facilitate and assist central and state departments in reviewing rules necessary to ensure competition in various sectors.

Source : http://economictimes.indiatimes.com/news/economy/indicators/competition-council-to-act-as-a-forum-to-resolve-turf-wars-among-regulators/articleshow/9929698.cms

This Elephant is Losing FDI Race

Do we in India have enough domestic savings to generate the mammoth capital we need to develop our infrastructure, to educate and create enough jobs for the masses, and to develop in-house technologies? The answer is a clear no and, hence, foreign direct investment (FDI) is needed to capitalise various sectors, as well as to bring in up-to-date technologies, networks, markets, process innovations and other best practices that enhance productivity of both foreign and domestic capital. As per Unctad’s World Investment Report, 2011, FDI into India has declined to $25 billion, a 31% slide, resulting in the country slipping six notches to the 14th spot in global ranking of countries that attracted highest foreign investment. While China has maintained its second spot with increase in FDI to $106 billion, i.e., 400% more than what India could manage, Brazil has raced ahead to the fifth position with $48 billion from its last 15th position and Belgium to the fourth position with $62 billion from its last 17th position, managing almost 160% FDI growth. FDI flows to Bangladesh have increased by 30% and, as some have already pointed out, in percentage terms, even Pakistan has performed better than India.

Source : http://epaper.timesofindia.com/Default/Scripting/ArticleWin.asp?From=Archive&Source=Page&Skin=ETNEW&BaseHref=ETD/2011/09/10&PageLabel=11&EntityId=Ar01102&ViewMode=HTML

RBI clears Enam-Axis Bank deal

The Reserve Bank of India has approved Axis Bank’s revised plan to acquire the broking and investment banking businesses of Enam Securities. This ends nearly 10 months of uncertainty over the deal. The terms of the earlier proposal were revised following the central bank’s discomfort with the structure of the deal that entailed Axis Bank offering shares to Enam, while the acquisition was done by a subsidiary. Sources familiar with the developments said the clearance came a few days earlier. While the details of the revised structure were not known, the sources said it would remain an all-stock deal. The deal would still require approval from other regulators. According to sources, while Axis Bank would acquire Enam’s businesses through shares, the bank’s subsidiary, Axis Securities and Sales, may pay cash to the bank before merging the businesses with itself. The bank’s board will soon meet to take stock.

Source : http://www.business-standard.com/india/news/rbi-clears-enam-axis-bank-deal/448681/

Can RBI move ahead of the curve?

There is now increasing apprehension that, for the 12th time in succession (since February 2010), RBI will resort to monetary tightening in September. For the statistically minded, there is also a contrarian view within RBI against rate hikes (RBI minutes of monetary policy meeting). Before attempting a rationale of such an action, we must state in the interests of full disclosure that we are linked inextricably with an apex business organisation. But we would like you to read on to know and judge the policy action based on plain speak. Plain speak 1: Since July 2011, when RBI increased the rates, the news from the global economy confirmed the worst fears of an impending recession.

Source : http://www.financialexpress.com/news/can-rbi-move-ahead-of-the-curve/844295/

We can regulate unlisted companies if they raise public funds, says SEBI

Market watchdog SEBI on Thursday claimed before the Securities Appellate tribunal (SAT) that the Companies Act gives it enough powers to regulate unlisted companies if such entities have raised funds from the public. “Does SEBI have powers under Section 55A of the Companies Act? My answer is yes. If OFCD is a security under the Securities Act, then it comes under the SEBI Act. And if it comes under the SEBI Act, then SEBI has jurisdiction. SEBI can (therefore) pass a special order to regulate unlisted companies,” SEBI's Counsel, Mr Arvind P. Datar, claimed before SAT. Mr Datar was contesting Sahara Group's claim that its OFCD (optionally fully convertible debentures) were not a public issue and, therefore, cannot be regulated by SEBI.

Source : http://www.thehindubusinessline.com/markets/article2440015.ece

Bombay HC adjourns MCX-SX case to Sept 16

The Bombay high court have adjourned the hearing on the MCX-SX versus Securities and Exchange Board of India (Sebi) case to September 16. Friday’s hearing could have been important, as the date for MCX-SX’s licence renewal to operate as a currency exchange is on September 15. The court had heard both sides but MCX had asked for a few more minutes to argue their case before the judge delivers his verdict. MCX had approached the HC challenging a Sebi order rejecting its application seeking permission to launch equity trading. Sebi had said MCX- SX was not a “fit and proper person”. Last year, Sebi had renewed MCX’s licence on currency derivatives, citing that the matter was in court. The outcome of the case will have a direct bearing on MCX-SX’s curency trading operations. Currently, it is the leading exchange in currency derivative volumes. The other two exchanges are National Stock Exchange (NSE) and United Stock Exchange (USE).

Source : http://www.business-standard.com/india/news/bombay-hc-adjourns-mcx-sx-case-to-sept-16/448664/