Govt reins in Euro issues

The Government today announced a new “restrictive” policy for issue of foreign currency convertible bonds by companies prescribing the uses for such issues, making prior Foreign Investment Promotion Board clearance compulsory in certain cases and specifying the number of issues per company and the time limit for their use. The global depository receipts issues will be permitted only for five end-uses to be incurred within one year from the date of issue, viz; financing capital goods imports; financing domestic purchase/installation of plant, equipment and building; prepayment or scheduled repayment of external borrowing and making investments abroad where these have been approved by competent authorities.

Insurance reforms in phases

Only those portions of the Malhotra Committee recommendations on insurance sector reforms that would help enhance productivity and quality of customers service, will be implemented initially, the Finance Minister, Dr. Manmohan Singh, has said. Structural changes in the sector, recommended by the committee, will be undertaken only after consulting the diverse components of society.

Banking companies Bill approved

Parliament on Wednesday approved a Bill allowing nationalised banks to raise fresh equity from the capital market with the Government categorically assuring that the character of banks would continue and it would retain effective control over them. The approval came after the Rajya Sabha passed the legislation with 76 members voting for and 19 against.

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