Government to issue Special Bonds worth Rs7,000 crore

The investment in the bond -- Postal Life Insurance Government of India Special Floating Rate Security 2022 -- by banks and insurance companies, however will not be reckoned as an eligible investment in government bonds for their statutory requirements

New Delhi: The government announced issue of Special Floating Rate Bond worth Rs7,000 crore.

 “The Special Bonds are being issued at par to Department of Post as of 30 March 2012, as part conversion of the frozen corpus of Post Office Life Insurance Fund (POLIF) and Rural Post Life Insurance Fund (RPOLIF),” the Finance Ministry said in a statement.

The investment in the bond -- Postal Life Insurance Government of India Special Floating Rate Security 2022 -- by the banks and insurance companies will not be reckoned as an eligible investment in government bonds for their statutory requirements, it added.

However, such investment by the insurance companies will be eligible to be reckoned as investment under 'other Approved Bonds'.

Further, the investment by the Provident Funds, Gratuity Funds, Superannuation Funds, in the bonds will be treated as an eligible investment, the ministry said.

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Karur Vysya partners with M&M for providing auto loan

KVB’s specialised rates for bus operators, educational institutions and medium and small enterprises will help Mahindra BOP and CV product range customers

Mumbai: Private sector lender, Karur Vysya Bank (KVB) has signed a preferred financier agreement with automotive major Mahindra and Mahindra (M&M) for providing auto loans to its customers, reports PTI. In return, customers of the bank would get privileged access to certain specialised services from M&M.

“Under the agreement, M&M customers will be able to avail of vehicle finance from any of the 450-plus branches of KVB,” a bank release said.

Chief executive officer and managing director of Karur Vysya Bank, K Venkataraman, said, “KVB is expanding its operations in commercial and passenger vehicle financing. Customers of KVB will be benefited out of this tie-up since they will have privileged access to the specialised services of M&M along with provision of loans for purchase of vehicles at a comparatively low EMI.”

 M&M said that they expect good response from dealers and customers post this arrangement.  “KVB’s specialised rates for bus operators, educational institutions and medium and small enterprises will help Mahindra BOP and CV product range customers. With highly competitive schemes for car loans and commercial vehicles, we are hopeful of a good response from our dealers and customers,” Arun Malhotra, senior vice president, sales and customer care (automotive division) of M&M, said.

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2G: Government moves to SC with Presidential reference on issues arising from license cancellation order

The government has moved to the apex court for its opinion on issues arising out of its 2G spectrum judgement including whether auctioning of natural resources across all sectors is mandatory under all circumstances

New Delhi: The Indian government on Thursday moved the Supreme Court with a Presidential Reference for its opinion on issues arising out of its 2G spectrum judgement including whether auctioning of natural resources across all sectors is mandatory under all circumstances, reports PTI.

It placed before the apex court the reference signed by President Pratibha Patil in which around eight questions have been raised, including whether there could be judicial interference in the policy matters, vis-a-vis allocation of natural resources.

The Union Cabinet, chaired by Prime Minister Manmohan Singh, had on 10th April cleared the Telecom Ministry's proposal to seek Supreme Court's opinion on various issues arising out of the 2nd February judgement by which allocation of 122 licences of 2G on first-come-first-served policy was cancelled.

The court had also observed that auction was best suited route for allocating natural resources like telecom spectrum because the policy of first-come-first-serve was flawed.

In the reference, the Centre has sought apex court's view on the verdict which is likely to have implication on FDI, if a policy decision of the government is cancelled by judicial order.

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