DIPP has asked the RBI to examine whether the Rs456 crore investments, first made by Wal-Mart in Cedar Services, was passed on to Bharti Retail, which runs Easyday chain of stores, in violation of FDI regulations and FEMA
New Delhi: The Commerce and Industry Ministry has referred to Reserve Bank of India (RBI) the issue of alleged violation of foreign direct investment (FDI) norms by Wal-Mart in its Rs456-crore investment made in a Bharti Group company, reports PTI.
The Department of Industrial Policy and Promotion (DIPP), which was directed by the Prime Minister's Office (PMO) to look into the matter, has written to the RBI to examine whether there was any violation of the Foreign Exchange Management Act (FEMA).
"Since the RBI is the focal point for foreign remittances, the matter has been referred for examination," a senior official in the ministry said.
When contacted a Wal-Mart spokesperson said: "We are in complete compliance with India's FDI laws. All procedures and processes have been duly followed and details filed with relevant Indian government authorities, including the RBI."
According to the ministry official, in a letter written on 10th October, DIPP has asked the RBI to examine whether the investment, first made by Wal-Mart in Cedar Services, was passed on to Bharti Retail, which runs Easyday chain of stores, in violation of FDI regulations and FEMA.
The PMO's direction came after Communist Party of India (CPI) Rajya Sabha MP from Kerala MP Achuthan wrote to Prime Minister Manmohan Singh saying the investment made by Wal-Mart in Bharti group firm Cedar Services violated FDI rules.
In September, in a written reply to the Rajya Sabha, Commerce and Industry Minister Anand Sharma has said that Wal-Mart Stores Inc had invested Rs455.8 crore in Cedar Services in 2010 via its Mauritius arm but the RBI has no FDI data of the same.
Sharma had said that on 29 March 2010 Cedar Services issued 45.58 crore compulsorily convertible debentures CCDs, with 0% yield, of face value of Rs10 each.
The CCDs are convertible into 425,965,859 equity shares of Rs10 each, at a premium of Rs0.70 per share.
At that time, FDI was not allowed in multi-brand retail in India.
Under FEMA guidelines, the recipient Bharti Group is required to inform RBI about the investment that it received from Wal-Mart but this was not allegedly followed.
According to the ratings agency, number of gold loan originators accessing the securitisation market this year increased to 25 from 21 last year
Mumbai: Ratings agency CRISIL said there is an uptick in debt securitisation by gold-loan companies in the market, which has stabilised after the initial shocks after the new norms were introduced by the central bank in May, reports PTI.
The number of gold loan originators accessing the securitisation market has increased to 25 from 21 in the previous year, it said.
CRISIL in a report also said the securitisation market is adjusting well to the revised securitisation guidelines issued by the Reserve Bank in May.
The agency's senior director Pawan Agrawal said there is a structural shift towards the PTC (pass through certificate) route since the onset of new guidelines.
"The revised guidelines inhibit credit enhancement in direct assignments, thereby diminishing the attractiveness of the scheme, leading to a shift to the PTC route," the report said.
Between May and October, 38 transactions worth Rs3,400 crore were executed as against Rs3,500 crore through an equal number of deals in the same period last year.
Transactions through the PTC route accounted for more than 85% of the total issuances since the guidelines were issued, it added.
Going ahead, Agrawal said the recovery in the numbers can be sustained if certain issues are addressed.
"Clarity on the income-tax liability of the trust set up for the PTC route will enhance confidence of investors. In addition, the guidelines for resetting of credit enhancement will bring down the overall cost of securitisation for issuers, without necessarily reducing the protection for investors. Finally, active steps to enhance liquidity will attract long-term investors to the market," he said.
'The Incredible Banker' by Ravi Subramanian has won the Economist-Crossword’s 'best popular book' award for 2011
Mumbai: 'The Incredible Banker' by Ravi Subramanian has won the 'best popular book' award for 2011, instituted by the Economist-Crossword Book Award, reports PTI.
'The Folded Earth' by Anuraddha Roy won the award in the Indian Fiction category while the Indian Non-Fiction award went to 'A Free Man' by Aman Sethi, '17' by Anita Agnihotri and 'The Araya Women' by Narayan jointly won in Indian language translation category, Crossword said in a statement.
The 11th edition of the award had shortlisted nominees like Jeet Thayil whose latest novel 'Narcopolis' was in the Man Booker list this year.
Other authors included Rahul Bhattacharya, Naresh Fernandes, M J Akbar, S Hussain Zaidi, Rashmi Bansal, Ravinder Singh, Suhel Seth, Rujuta Diwekar, Prakash Iyer, Anita Bhogle, Arshia Sattar, Ravi Subramanian, Arunava Sinha, Catherine Thackerama, R Narayan, Ayesha Kidwai, Arupa Katalia, Deepika Phukan, Aniruddha Sen Gupta and B Vinayanm.