Decision on seeking review of SC order in 2-3 days: Finance ministry

Both the finance and law ministries are discussing the 4th July order of the apex court appointing a SIT, which includes two former SC judges, to monitor steps to bring back unaccounted money stashed in tax havens

New Delhi: The finance ministry today said the government will take a decision on seeking review of the Supreme Court order constituting a Special Investigation Team (SIT), in the next two-three days, reports PTI.

Both the finance and law ministries are discussing the 4th July order of the apex court appointing a SIT, which includes two former SC judges, to monitor steps to bring back unaccounted money stashed in tax havens.

"We (finance ministry) are seeking their (law ministry) views...some decision is likely in 2-3 days," chairman of Central Board Direct Taxes (CBDT) Prakash Chandra told reporters here on sidelines of a function.

The government has not yet taken a final view on seeking review of the Supreme Court order, he said adding "the order is very broad and was being studied".

On 4th July, pulling up the government for the "laggardly pace" in investigations into the issue of black money stashed abroad, the apex court appointed a SIT headed by former Supreme Court judge BP Jeevan Reddy to monitor steps taken to bring the unaccounted money back home.

Another former apex court judge MB Shah will be vice chairman of the 13-member SIT into which the director of Research and Analysis Wing (RAW) has also been inducted.

The court also directed that the high-level committee (HLC) constituted by the government to look into the issue of black money would 'forthwith' be part of the SIT.

Facing flak from civil right activists and Opposition on the issue of black money, the government has adopted a multi-pronged strategy to deal with the menace.

This includes negotiation and re-negotiation of India's double taxation avoidance agreements with other countries.

On the time-frame for re-negotiation of India-Mauritius tax treaty, Mr Chandra said no date or agenda has been finalised yet.

The ministry of external affairs is in touch with the Mauritius government to finalise dates and venue for the negotiations.


Share prices to move sideways: Friday Closing Report

Look for 5,520 on the Nifty

Yesterday we mentioned that the market move today would decide the direction, especially if the Nifty falls below 5,520. Today, after the initial volatility, the index fell below its Thursday close and was range-bound in subsequent trade. We expect the market to move sideways in the days to come until it reaches the 5,520 level.   

Global concerns about the US economy and worries that the European debt crisis could spread to other countries, together with domestic inflation pressures, kept the market in the red today.

The market opened in the positive following the Asian markets that were mostly higher in morning trade. The Nifty resumed trade three points higher at 5,603 and the Sensex added 76 points to open trade at 18,694. Realty and IT stocks were in demand in early trade. Gaining strength the market soon touched its intra-day high. At the day's high, the Nifty rose to 5,632 and the Sensex shot up to 19,620. But profit booking at higher levels led the indices into the red in subsequent trade.

The market fell to the day's low in the mid-morning session with the Nifty falling to 5,563 and the Sensex to 18,513. Trade continued to be range-bound thereafter with the indices making half-hearted attempts to venture into the green. But those attempts were marred by the key European markets opening in the red. Finally the Nifty closed 19 points lower at 5,582 and the Sensex settled 56 points down at 18,562.

Markets in Asia settled mixed after Standard & Poor's late Thursday placed its US sovereign ratings on CreditWatch with negative implications. The development follows Moody's move on Wednesday to put US debt on a possible downgrade. Fears of the Eurozone debt crisis spreading to Italy also figured in the minutes of a Bank of Japan policy meeting held in June.

The Shanghai Composite gained 0.33%, the Jakarta Composite climbed 0.64%, the Nikkei 225 advanced 0.39%, the Seoul Composite rose 0.71% and the Taiwan Weighted surged 1.10%. On the other hand, the Hang Seng fell 0.30%, the KLSE Composite declined 0.28% and the Straits Times slipped 0.14%.

Back home, institutional investors were net buyers in the equities segment on Thursday. While foreign institutional investors pumped in funds worth Rs211.46 crore, domestic institutional investors invested Rs517.82 crore.


12th Plan to focus on MSMEs

The 12th Plan will also take on board the recommendations of the Prime Minister’s Task Force on Technology and Innovation

The 12th Plan will focus on ways to improve flow of fund to the micro, small and medium enterprises (MSMEs) sector which accounts for 8% of the gross domestic product (GDP).

The 12th Plan (2012-17), sources said, would try to enhance access of MSMEs to "equity capital and alternative sources of capital like angel funds/risks capital."

The sector contributes 8% of the country's GDP, 45% of the manufactured output and 40% of our exports. The issues concerning the MSME are being discussed by the sub-groups which were formed by the Working Group to recommend steps for accelerating the growth of the sector.

Besides other things, sources said, the schemes for encouraging skill development through the public private partnership (PPP) mode could also be incorporated in the next Plan. The 12th Plan will also take on board the recommendations of the Prime Minister's Task Force on Technology and Innovation.

The Task Force report has made various suggestions which include increasing fund availability, technology upgradation and skill development.

The Working Group, which is chaired by MSME secretary Uday Kumar Verma, is likely to submit its report to the Steering Committee of the Planning Commission by the end of September.

Of the 26 million MSMEs, which employ 60 million people, only 6% are registered while the rest come under the unorganised sector.


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