Govt introduces Bill to repeal 36 obsolete laws

The Amendment Acts, which are sought to be repealed, include amendments to the Representation of the People Act, Marriage Act, Election Laws, Divorce Laws and Anand Marriage Act, and the Evidence Act


Seeking to clear the statute books of antiquated laws, the Union Government on Monday introduced a Bill in the Lok Sabha, to repeal 36 Acts, including one which amended marriage laws.


Law Minister Ravi Shankar Prasad introduced the Repealing and Amending Bill, 2014, which seeks to remove certain Amendment Acts and Principal Acts from the statute books as they have outlived their utility.


This is the first time since 2001 that such an exercise is being undertaken by the Law Ministry.


Through the Bill, the Government also seeks to amend a ‘patent error’ committed by the Law Ministry during the passage of the Whistleblowers Bill.


While the Bill became an Act in May this year, it is called the ‘Whistleblowers Protection Act, 2011’ instead of '2014’.


The Bill makes it clear that once the measure becomes an Act, it will not affect any other law in force.


The Amendment Acts, which are sought to be repealed include amendments to the Representation of the People Act, Marriage Act, Election Laws, Divorce Laws and Anand Marriage Act and the Evidence Act.


Two standalone Acts which will also be repealed through the Bill are the Foreign Jurisdiction Act, 1947, and Sugar Undertaking (Taking Over of Management) Act.


“The Bill is one of those periodical measures by which enactments which have ceased to be in force or have become obsolete or the retention whereof as separate Act is unnecessary are repealed or by which the formal defects detected in enactments are corrected,” said the Statement of Objects and Reasons of the bill.


The decision is in tune with Prime Minister Narendra Modi’s agenda to do away with archaic laws which are hindering efficient governance.


After this, the Government is likely to move another bill to repeal more such Acts in the next session of Parliament. Between 1950 and 2001, over a hundred Acts have been repealed. In one instance, 100 such Acts were repealed in one go.


Nifty, Sensex to log further gains – Monday closing report

For the uptrend to continue, Nifty has to stay above 7,590


As we had mentioned in Friday closing report that the Indian benchmark may rally on Monday, S&P BSE Sensex and NSE's CNX Nifty opened with a high opening gap. Sensex, the 30-share benchmark, opened with the highest gap up of 148 points since 4 August 2014, while NSE's 50-share index, Nifty, opened with the highest opening gap of 51 points since 26 May 2014.

Sensex opened at 25,477 while Nifty opened at 7,620. Sensex hit the low of 25,437 while Nifty hit the low of 7,599. From this level the indices moved up to the day’s high and closed near it. Sensex reached up to 25,553 and closed at 25,519 (up 190 points or 0.75%) while the Nifty hit a high of 7,636 and closed at 7,626 (up 57 points or 0.76%). The NSE recorded a volume of 58.90 crore shares. India VIX fell 4.24% to close at 13.9975.

Among the other indices on the NSE, the top five gainers were Auto (2.52%), Finance (1.17%), Nifty Midcap 50 (1.10%), Nifty Junior (0.96%) and Realty (0.96%) while the only five losers were Media (0.58%), Energy (0.34%), Pharma (0.19%), CPSE (0.18%) and FMCG (0.18%).

Of the 50 stocks on the Nifty, 28 ended in the green. The top five gainers were M&M (6.15%), Bank of Baroda (4.23%), HDFC (3.72%), Tata Motors (3.30%) and Sesa Sterlite (2.82%). The top five losers were Gail (4.60%), Dr Reddy (2.26%), Jindal Steel (1.63%), Tech Mahindra (1.32%) and NTPC (1.20%).

Of the 1,604 companies on the NSE, 931 companies closed in the green, 607 companies closed in the red while 66 companies closed flat.

The Reserve Bank of India (RBI) said on Sunday its board has approved the transfer of a surplus profit of Rs52,679 crore to the government for the year ended June 2014. This compares with a surplus transfer of Rs33,010 crore last year.

Market regulator SEBI on Sunday approved a long-pending proposal to introduce real estate investment trusts (REIT). The move will give cash-strapped developers easier access to funds.

The government will unveil on Tuesday industrial production data for June 2014 and data on inflation based on the combined consumer price index (CPI) for rural and urban India for July 2014.

Monsoon rainfall between 1 June 2014 and 9 August 2014 was 18% below average, an India Meteorological Department report dated 10 August 2014 showed.

Mahindra & Mahindra (6.45%) was among the top two gainers in the ‘A’ group on the BSE and was the top gainer in Sensex 30 pack. It has posted a net profit of Rs881.78 crore for the quarter ended June 2014 while the same was Rs937.91 crore for the quarter ended June 2013. Sales was at Rs10,261.90 crore for the quarter ended June 2014 while the same was at Rs10,022.52 crore for the quarter ended June 2013. As the results for the quarter ended and year ended March 31, 2014 includes the result of the trucks business transferred from Mahindra Trucks and Buses Limited for the full year ended March 31, 2014 (as sanctioned by Honourable High Court of Bombay), it has mentioned that results of the current quarter are therefore, not strictly comparable to the other quarters presented.

State-run GAIL (4.34%) was the top loser in the Sensex 30 stock. It posted weak June 2014 quarter result. It has a net profit of Rs621.44 crore for the quarter ended June 2014 as compared to Rs808.17 crore for the quarter ended June 2013. Sales was Rs13,372.23 crore  and Rs12,899.80 crore for the relevant period.

Aurobindo Pharma (6.94%) was the top gainer in ‘A’ group on the BSE. It recently posted a good June 2014 quarter result. Sales increased from Rs1,611.74 crore for June 2013 to Rs1,951 crore for June 2014, while the net profit for the relevant period increased from Rs143.63 crore to Rs393.40 crore.

Bhushan Steel (9.98%) which was again a major loser today hit its 52-week low today at Rs197.45 on the BSE. It has been in news recently for the bribery scandal involving Syndicate Bank. SBI which has sizeable exposure to the company is in discussion with other banks and lenders to bring in a management agency, which will look at the day-to-day running of the company.

Except for NZSE 50 (0.11%) all the other trading Asian indices closed in the positive. Nikkei 225 (2.38%) was the top gainer.

China's consumer price index rose 2.3% in July from a year earlier, the same pace as in June, data showed on Saturday. Factory-gate prices fell 0.9%, extending the longest stretch of declines since 1999. Japanese stocks jumped after a report that the nation's pension fund freed itself to buy more domestic equities.

European indices were trending higher. US Futures too were trading in the green.


RBI to transfer Rs52,679 crore surplus profit to government

The amount, Rs52,679 crore, will provide some help to the Indian government, which proposes to bring down the fiscal deficit to 4.1% of GDP this fiscal from 4.5% last year


The Reserve Bank of India (RBI) will transfer to the Centre its surplus profit of Rs52,679 crore, about 60% more than the amount given last year.


"The Central Board of Directors of the Reserve Bank of India...Approved the transfer of surplus amounting to Rs52,679 crore for the year ended 30 June 2014 to the Government of India," the central bank said in a statement adding the transfer will take place on Monday.


Last year, the RBI had transferred its Rs33,010 crore surplus profit to the Centre.


The amount will provide some help to the government, which proposes to bring down the fiscal deficit to 4.1% of GDP this fiscal from 4.5% last year.


The Reserve Bank follows the July-June accounting year.



MG Warrier

3 years ago

This year RBI has chosen to transfer almost the entire surplus to government, according to reports. It is also reported that the gesture to support GOI is pursuant to a recommendation made by a panel headed by one of its directors Y H Malegam. The pressure on RBI to reduce its reserves and pass on the proceeds to Consolidated Fund of India was not new. Immediately, one has no access to the basis on which the Malegam Panel has certified the adequacy of the central bank’s reserves for the coming three years. Long back, after internal assessment, it was decided by RBI to target maintaining reserves at 12 per cent of the size of the balance sheet and till last year that was the objective.

Practice so far has been to give residual surplus after appropriation to central bank’s reserves. Just as ‘people get the government they deserve’, GOI and RBI can get the recommendations they ‘need’ from panels. RBI is already struggling to come out of a situation created by one such report. Yes, the reference is to the report of the Financial Sector Legislative Reforms Commission authored by Justice Srikrishna. This is not just a premature, harsh response to the beginninning of the gradual weakening of a central bank’s financial strength. Lamenting on the fall of RBI’s aggregate reserves from 11.9 per cent of balance sheet size to 10.1 per cent during the five year period ending June 2013, I had observed asunder:
“To ensure that temptations of government emanating from external compulsions do not dilute the strength of RBI’s balance sheet, GOI should take measures to augment the share capital and reserves of RBI after carrying out appropriate amendment to RBI Act. Till such time RBI should be allowed to retain surplus income by transfer to reserves. Considering the size of the balance sheet and the internal and external pressures on its income generating capabilities, as also the nature of shocks the bank has to absorb from time to time, the central bank’s reserves need to be augmented on an ongoing basis.”*
*Page 47, Banking, Reforms & Corruption: Development Issues in 21st Century India By M G Warrier([email protected])
M G Warrier, Mumbai

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