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Coal block allocation: Team Anna to protest at PM’s and BJP chief’s residence

Last week, the activists had threatened to file a public interest litigation (PIL) in court and carry out a referendum to ‘expose’ the UPA on coal block allocations, if the government does not constitute a special team to probe allegations

 
New Delhi: Alleging that the Congress and BJP were hand-in-glove on the coal block allocation issue, erstwhile Team Anna today announced ‘gherao’ of the residences of prime minister Manmohan Singh and Bharatiya Janata Party (BJP) chief Nitin Gadkari, on Sunday.
 
This was announced by renowned activist Arvind Kejriwal, leader of India Against Corruption (IAC), in a tweet this morning.
 
“Congress and BJP have got together to loot Rs1.86 lakh crore in coal scam. (There will be) gherao of prime minister’s and Nitin Gadkari’s residences. Let us assemble at Jantar Mantar on 26th August (at) 10am,” he tweeted.
 
The announcement that came as a CAG report said that the exchequer lost around Rs1.86 lakh crore due to coal block allocation without competitive bidding during 2005-09.
 
Earlier, the erstwhile Team Anna had decided to hold the first meeting of preparatory committee on 26 August 2012 which will chalk out the ways for formation of a political party.
 
However, now this meeting is likely to take place in the first week of September as they are yet to finalise the names.
 
Team Anna had earlier this month decided to take a political plunge.
 
Last week, the activists had threatened to file a public interest litigation (PIL) in court and carry out a referendum to ‘expose’ the United Progressive Alliance (UPA) on coal block allocations, if the government does not constitute a special team to probe allegations.
 
“We have raised it on 25th May. All our allegations have come true now. All parties are involved in it since screening committees have representatives of states also.
 
“We demand cancellation of allotments of coal blocks.
 
Lodge FIR (first information report), constitute an SIT (special investigation team), failing which we will file PIL in court and carry out referendum on the issue to expose the government,” Mr Kejriwal had said.
 

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Housing finance firms permitted to raise funds through external commercial borrowing

The high level committee on external commercial borrowings which met last evening also permitted FIIs to invest up to $5 billion in rupee bonds within the overall corporate bond limit of $45 billion 

 
New Delhi: Liberalising overseas borrowing norms, the government on Wednesday allowed housing financing companies to raise funds through external commercial borrowings (ECBs) route to finance low-cost housing projects.
 
The high level committee on external commercial borrowings which met last evening also permitted foreign institutional investors (FIIs) to invest up to $5 billion in rupee bonds within the overall corporate bond limit of $45 billion.
 
Also, the Small Industries Development Bank of India (SIDBI) has been made as “an eligible borrower” for accessing ECB route for on-lending to the micro, small and medium enterprises (MSME) sector.
 
“It has been decided that entities like National Housing Bank (NHB) and Housing Finance Companies (HFCs) will be included as eligible borrowers for financing such low-cost housing projects,” was said in a finance ministry statement.
 
The decision to allow NHB and HFCs raise the external commercial borrowings comes in the backdrop of shortage of housing for low income groups in major cities and towns.
 
ECBs are considered attractive as cost of raising the loan is lower than that of domestic borrowings. Besides, they provide an additional avenue to access large amounts of funds from global financial markets.
 
In another major decision, the committee also enhanced the limit for ECB for infrastructure and manufacturing sector companies to refinance their existing rupee loans.
 
The finance ministry further said refinancing of buyer’s credit for import of capital goods in the infrastructure sector will be placed under automatic route.
 
It has also been decided to increase the maturity of such buyer’s credit to maximum five years, it added.
 
It further said that foreign entities will be allowed to credit enhance the issue of rupee bonds by all companies. The minimum maturity period of such bonds has also been reduced from seven years to three years.
 
Finance minister P Chidambaram, on 6 August 2012, had unveiled a roadmap to boost investment and economy by fine-tuning policies to put in place a stable and non-adversarial tax regime.
 
Under a new scheme in June, the government had allowed infrastructure and manufacturing sectors companies to refinance their existing rupee loans through ECBs.
 
The committee decided to enhance the maximum permissible limit for ECB that can be availed by such companies from 50% to 75% of the average forex earnings realised during the past three financial years, or 50% of the highest forex earnings in any of the last three years.
 
“It has also been decided to include special purpose vehicles (SPVs) of companies who are in existence for at least one year under the ambit of this scheme,” the ministry added.
 
The decision to allow SIDBI raise funds through ECBs would help the MSME sector. The sector has been complaining that it does not get access to affordable credit as banks prefer to lend to large companies.
 
The ministry said SIDBI would be allowed to raise ECB subject to certain conditions which will be finalised in consultation with the Reserve Bank of India (RBI).
 
Mr Chidambaram, on 18 August 2012, had asked the Indian Bankers Association (IBA) to form a committee to advise the government on tackling the slowdown in the housing demand.
 
According to the Confederation of Real Estate Developers’ Association of India (CREDAI), an apex body of the organised real estate developers, funding gap in housing will be around $70 billion in the next five years.
 

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