Govt clears FDI proposals worth Rs. 5,240 crore
The Dollar Business Bureau The government on Friday cleared seven Foreign Direct Investment (FDI) proposals amounting to 5,240.35 crore, deferring four and rejecting five. Approval for the largest amount of FDI was given to India Advantage Fund S4 I, a SEBI registered Alternate Investment Fund, which sought permission to accept contributions up to 2,950 crore from offshore investors. The firm had sought the fund for investments in securities of the Indian companies in which FDI is permitted. It had also sought permission to distribute income realized on its investment to the offshore investors under the automatic route. The next higher FDI proposal approved was of Paragon Partners Growth Fund (Rs.985 crore), which sought acceptance for contributions amounting to 80% of ...
Talking to government to hike FPI cap in govt bonds: RBI Governor
Source: PTI Reserve Bank is in discussions with the Finance Ministry to raise the Foreign Portfolio Investment (FPI) cap in government bonds, Governor Raghuram Rajan said today. After discussions, RBI will formulate a framework to raise the investment limit for such investors in government debt securities, which will be pegged to the rupee against the current practice of linking it to the dollar, he said. "The overall goal of this medium-term framework will be to enlist FPIs in market development within prudential limits which we set even as they are attracted by the rates available in domestic bonds," Rajan told reporters at the customary post-policy press conference here today. The proposed framework, expected by next month, will include a target for what ...
RBI puts G-Sec worth Rs 10,000 crore up for auction next week
The Dollar Business Bureau In an effort to mop up liquidity from the system, the Reserve Bank of India (RBI) will sell government bonds worth Rs. 10,000 crore in the open market next week. The RBI has decided to sell government securities under Open Market Operations after “an assessment of the current and evolving liquidity conditions”. Securities with maturity dates ranging from 2018 to 2035 will be auctioned on July 14 through multi price method. “There is an overall aggregate ceiling of 10,000 crore for all the securities in the basket put together. There is no security-wise notified amount,” the central bank said in a statement issued on Friday. Securities to be auctioned will bear interest rates ranging from 7.40% to ...
I-T sleuths told to go easy on tax dues against foreign portfolio investors
The Dollar Business Bureau The Chairperson of CBDT, Anita Kapur (first on the right side) briefing the media, in New Delhi on June 16, 2015. Source: PIB, Government of India Amid concerns over outward movement of overseas funds from the Indian stock market after tax notices slapped on foreign portfolio investors (FPIs), the Income Tax department has said that it will not take coercive measures to recover tax dues from FPIs. A number of Foreign Portfolio Investors (FPIs) have challenged the tax recovery notices sent to them before April 2015. In the annual budget for the current financial year, the government has exempted FPIs from paying Minimum Alternate Tax (MAT) on their income occurred from trading in securities and stocks. According ...
