“Some members of the TAC felt that the fiscal pressure would continue beyond 2011-12 as the monetary impact of entitlements such as Mahatma Gandhi National Rural Employment Guarantee Act and oil, fertiliser and food subsidies would be significant,” the minutes of the TAC released by the RBI revealed
Mumbai: A top Reserve Bank of India (RBI) advisory panel involved with the monetary policy had expressed concern that the decline in investment would impact the country’s economic growth in the next fiscal, reports PTI.
“Some (TAC) members felt that the slowdown in investment would affect the next year’s growth as well. Besides, it would also have implications for inflation, going forward,” minutes of a meeting of Technical Advisory Committee released by the RBI Friday said.
RBI will put out a formal projection on India's economic growth for 2012-13 in the Annual Policy Statement in April.
However, RBI’s baseline scenario is that the economy will exhibit a modest recovery next year, with growth being slightly higher than during this fiscal year.
India’s economic growth rate, as per government data, is likely to be 6.9% this fiscal, as against 8.4% in 2010-11.
The members of TAC headed by RBI governor D Subbarao, which met on 18th January ahead of the third quarter monetary policy, felt that the economy was clearly slowing down.
“While high interest rates had impacted investment, the overall investment sentiment was also subdued because of the structural and confidence issues that had not been addressed,” the RBI added.
Amid high interest rate regime, credit to industry increased by only 19.8% in December 2011 as compared to 31.6% in the same month of the previous year.
Inflation has started moderating but it is nowhere near the comfort zone of about 5%. TAC members expressed hope that inflation would moderate to around 7% by March-end.
They also expressed concern over the widening fiscal deficit and felt the government will “slip significantly” on the target of keeping it at 4.6% of the gross domestic product (GDP) in the current fiscal.
“Some members felt that the fiscal pressure would continue beyond 2011-12 as the monetary impact of entitlements such as Mahatma Gandhi National Rural Employment Guarantee Act (MNREGA) and oil, fertiliser and food subsidies would be significant,” the minutes revealed.
Concerns were also expressed over the high and widening current account deficit (CAD) due to slowdown in exports and inelastic imports.
“Given the fragility of the global situation and slowdown in capital flows, there was a need to remain extremely watchful insofar as the external sector was concerned,” they opined.
Exports grew only by 6.7% in December, year-on-year, while imports were up 19.8% during the period.
The amendment in the FCRA would allow the bourse to expand its product range by offering trading in real estate indices and futures and options on rainfall based-products, MCX MD and CEO Lamon Rutten said on Friday
Ahmedabad: Multi Commodity Exchange of India (MCX) on Friday said it hopes that the proposed amendments in Forward Contract Regulation Act (FCRA) for allowing trading of options and indices in commodities will be soon passed by Parliament, reports PTI.
A Parliamentary Standing Committee, reviewing amendments to the FCRA, has already submitted its report, permitting index derivatives (futures and options) and options in individual commodities.
It has also recommended independence and power to the regulator—Forward Markets Commission (FMC).
“We hope that Parliament will approve recommendations of the standing committee that allows trading of options and indices in commodities,” MCX MD and CEO Lamon Rutten told reporters here while announcing that its initial public offer (IPO) that will hit the market on 22nd February and close on 24th February.
The amendment in the FCRA would allow “us to expand our product range by offering trading in real estate indices and futures and options on rainfall based-products”, he added.
Mr Rutten said MCX has tie-ups with firms providing weather and real estate related data.
MCX plans to expand network by providing innovative products and introducing new revenue lines such as data vending, he added.
MCX, which aims to raise Rs663 crore, has set a price band of Rs860 to Rs1,032 a share for the IPO.
The offer would comprise of sale of about 64.27 lakh shares, accounting for a 12.6% stake in the company.
This would include 2.5 lakh shares reserved for employees.
Besides the promoter, Financial Technologies (India), shares would also be sold by other shareholders like State Bank of India, Corporation Bank, Bank of Baroda, ICICI Lombard General Insurance, GLG Financials Fund and Alexandra Mauritius in the IPO.
MCX is the largest commodity bourse in the country, with more than 80% market share.
It is the fifth largest commodity exchange globally and figures among the top two positions in gold and silver segments.
It would be the first exchange in India to go public, putting it on par with global markets like the US, the UK, Japan, Australia, Singapore and Hong Kong.
MCX had recorded Rs447.5 crore income and Rs176.2 crore of net profit in the fiscal year ended 31 March 2011.
In the current fiscal, the company has posted a net profit of Rs218 crore and total income of Rs474 crore for the nine-month period ended 31st December.
There is a new insurance product using the iProtect brand name in the market. ICICI Pru Life has one and now Bharti AXA Life has used the very same product name. The premium is cheapest offered so rar, which means that price war between insurers is still hot. The Bharti product is a good deal for non-smokers, but a little expensive for smokers
The Insurance Regulatory and Development Authority (IRDA) has allowed the same product name for new a term life insurance plan. iProtect is a product from ICICI Pru Life and now Bharti AXA Life has launched a product with exactly same name for its online term life insurance. IRDA has done this in the past, too, but it is rare to have the same product name from different insurers. Is it intentional copying of the product name? We don’t know.
Bharti AXA Life iProtect is now the cheapest online term life insurance plan for non-smokers. There is a wide difference in the premium between smokers and non-smokers. The premium for Rs50 lakh Sum Assured (SA) for a 27-year old non-smoker male based in Mumbai for a policy term of 25 years is Rs3,700 (excluding taxes). On the other hand, the premium for a smoker in the same case will be Rs6,150 (excluding taxes).
Recent entrants DLF Pramerica U-Protect and Edelweiss Tokio Life Protection have premiums which are the lowest in offline term plan space. Their premium are Rs5,956 and Rs5,984 respectively for similar parameters. Both the products are offline as of now.
Aviva i-Life was the cheapest term life insurance till now with the revamped Aegon Religare iTerm closing the gap. HDFC Life Click2Protect was recently launched to compete in the online term market. The much-awaited online term plan this year will be from LIC, which is is expected to hit the market soon.
Advantages of Bharti AXA iProtect
Disadvantages of Bharti AXA iProtect