Employment News 7 September 2013

Employment News 7 September 2013 , Current , Business , Economy , World , Indian Exams

Foreign investors can up stake without RBI's nod

RBI on Friday liberalized investment norms for foreign strategic investors holding substantial stake in an Indian company to further increase their stakes in the same company without prior approval of the central bank.

The move aims to enhance dollar flows into India and reduce time taken by such investors in making investments in Indian stocks. 

Earlier, such investors had to seek prior permission from the RBI before increasing their stake in an Indian company. 

This created the risk of the news getting out early, thereby raising the stock's price, which in turn could make the acquisition more expensive for the investor.

The RBI notification also said that the payment for acquiring shares through this route could be through inward remittance through the normal banking channels, debit to the NRE/FCNR account of the investor maintained with an authorized dealer or a bank, or debit to non-interest bearing Escrow account (in Indian rupees) maintained in India with a bank. 

It could also be paid out of the "dividend payable by Indian investee company, in which the said non-resident holds control," the central bank said. 

The pricing of such acquisition should be in accordance with the pricing guidelines under FEMA

The International Olympic Committee has asked the Indian Olympic Association to drop charge-sheeted members by October 31 to enable its return to the Olympic family----

The international body wants IOA to hold fresh elections by December 15. If the IOA fails, India could face more punishment.

The IOA has been in exile since last December when the IOC's executive board suspended India after Lalit Bhanot, who is facing corruption charges linked to the scandal-hit New Delhi Commonwealth Games in 2010, was elected secretary-general of the IOA. 

In its latest directive to the IOA, the international body categorically says it will consider India's return "only after tainted members are dropped."

The IOC wants the IOA to amend its constitution so that officials facing criminal or corruption proceedings in court can be kept out of the IOA election process.

HC rejects Vodafone plea against Rs 8,500 crore tax

Vodafone, the Bombay High Court has dismissed a writ petition filed by the telecom major to set aside a directive passed by the income tax authorities in 2011, which had ordered the addition of over Rs 8,500 crore to the company's taxable income.

A high court bench, hearing the dispute, declined to intervene as it held that Vodafone had "an equal but more efficacious alternate remedy'' under the Income Tax law to go in appeal before appellate authorities including the Dispute Resolution Panel (DRP) and Income Tax Appellate Tribunal (ITAT).

The IT officer in Mumbai held the additional amount was on account of two undisclosed international transactions concerning sale of Vodafone's call centre business and ''assignment of call options'' to Hutchison Whampoa Properties (HWP) (India).

Parliament passes key Pension Bill

After a delay of nearly a decade, Parliament on Friday passed a key economic reforms legislation, the Pension Bill, that aims to create a regulator for the sector and allows at least 26 percent FDI.

The Pension Fund Regulatory and Development Authority (PFRDA) Bill, 2011, was passed in the Rajya Sabha with 115 MPs voting in favour and 25 against including members form Left parties and TMC. 

The bill was passed in the Lok Sabha on 4th September.

The bill would make the Pension Fund Regulatory and Development Authority a statutory authority, unlike its present non-statutory status.

The bill provides subscribers a wide choice to invest their funds including for assured returns by opting for Government Bonds as well as in other funds depending on their capacity to take risk, a provision that came from opponents of the legislation.

It pegs the FDI in pension sector at 26 percent or such percentage as may be approved for the insurance sector, which ever is higher.

Lok Sabha gives nod to aviation university bill

Lok Sabha on Friday passed the Rajiv Gandhi National Aviation University Bill, 2013, which aims to set up the institution as an autonomous body to train a skilled workforce for the sector's growth, aviation studies, teaching, training and research with focus on emerging areas of studies such as aviation management, aviation regulation and policy.

Which will be set up in Rae Bareli district of Uttar Pradesh, the parliamentary constituency of Congress chief Sonia Gandhi.

Civil aviation minister Ajit Singh moved the bill which was passed after a short discussion.
The university will cost around Rs 200 crore.

According to the bill, skilled and competent workforce is essential to create a safe and efficient aviation industry.

Global Competitiveness Report 2013 India slips to 60th rank

India has slipped to 60th position in terms of its competitiveness globally, while Switzerland has retained its top rank.

This is India's lowest ever rank and also 31 places below its peer emerging market China.


Releasing the annual Global Competitiveness Report 2013-2014, Geneva-based World Economic Forum (WEF) today said highly innovative countries with strong institutions continue to top the rankings.

Poisoned water kills 41 elephants in Zimbabwe

Poachers killed 41 elephants by poisoning drinking water pools in Zimbabwe’s Hwange National Park with cyanide, a media report said. 

Police have arrested six suspects and fear that their “very cruel” method of poaching in the 14,651 sq.km. National Park could threaten hundreds of animals as the poison would contaminate the entire ecological system. 

Hwange, located in northwest part of the country near Botswana, Namibia, and Zambia, is home to one of the largest population of elephants in the world. 

Officials estimated that 69 elephants were killed by poachers in the area between May and August.

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