Corporates feel that the forward looking measures would infuse the much-needed capital in the insurance and pension sectors
New Delhi: India Inc has termed government's second wave of reforms, including decisions to open the pension sector to foreign investment and raising the foreign direct investment (FDI) cap in insurance to 49%, as 'path-breaking and landmark', reports PTI.
"The new instalment of big bang reforms is a clear message that the government is determined to strengthen the economy," FICCI President RV Kanoria said.
He said that these forward looking measures would infuse the much-needed capital in the insurance and pension sectors.
Kanoria also urged the government to make investment guidelines more flexible so that such funds can be used to support infrastructure development.
"Today, insurance and pension funds are constrained to participate in infrastructure projects as these are required to invest a substantial portion of their funds in government securities and also not allowed to invest in projects rated below a certain level. These limitations need to somewhat relaxed," he added.
Sharing similar views, CII said the industry was anxiously waiting for the clearance of the Companies Bill for its introduction in Parliament.
"The new company law is expected to be more streamlined and facilitative than the existing 55-year-old Companies Act, it seeks to replace," CII Director General Chandrajit Banerjee said.
Banerjee said on enactment, the Companies Bill will be a boon for business, corporates, investors and stakeholders at large.
"The new law would strengthen the concept of shareholders democracy and offer protection of the rights of minority stakeholders," he said.
Poor showing by the manufacturing sector pulled down the GDP growth to 5.5% in the first quarter, the decade's worst Q1 performance.
The shareholders like IDBI Bank, Canara Bank, SBI, IL&FS, Federal Bank, IL&FS Trust would reduce their stake in the IPO of CARE
SEBI had slapped a fine of Rs14 crore on Dushyant N Dalal and Puloma Dushyant Dalal, the two chartered accountants for alleged unlawful gains made during the infamous IPO scam of 2003-05
Mumbai: The Securities Appellate Tribunal (SAT) has dismissed an appeal by two financiers--Dushyant N Dalal and Puloma Dushyant Dalal--against orders issued by Securities and Exchange Board of India (SEBI)that had imposed a penalty of Rs14 crore on them for allegedly making gains in the initial public offering (IPO) scam, reports PTI.
"The appeal (of Dushyant N Dalal and Puloma Dushyant Dalal) stands disposed of (against SEBI)...," SAT said.
SEBI had slapped a fine of Rs14 crore on the two chartered accountants in June last year for alleged unlawful gains made during the infamous IPO scam of 2003-05.
The two had been accused of making unlawful gains of over Rs 4.94 crore by cornering shares of various companies meant for retail individual investors and the penalty is three times of the amount.
Hearing an appeal against a SEBI order, SAT directed market regulator to pass orders expeditiously since the case relates to an old matter.
Besides, Tribunal asked the two individuals to fully co-operate with SEBI and "avail of the earliest opportunities for speedy finalisation of the adjudication proceedings."
The Dalals had been charged with being financiers to two key operators -- Sugandh Estates and Investments Pvt Ltd and Purshottam Budhwani.
The key operators had allegedly opened large number of demat accounts in the name of non-existent persons or name lenders and acquired shares of various companies by making applications in fictitious names.
The key operators subsequently transferred these shares through off-market deals to ultimate beneficiaries who had acted as financiers.
The Dalals were charged with being parties to such unlawful act of cornering shares and acting in connivance with others to make unlawful gains at the cost of other individual investors.
IPOs of major firms like IL&FS, IDFC, FSC Software Solutions, Gateway Distriparks, Provogue, MSP Steel, Nectar Lifesciences, Shoppers' Stop and Suzlon were alleged to be targeted by the two key operators the Dalals had allegedly connived with.