The Government is finalising a Bill to amend the Reserve Bank of India (RBI) Act, to accord the central bank comprehensive powers over non-banking financial companies (NBFCs). The proposed new powers include imposition of a moratorium on their functioning and taking them to liquidation in extreme cases. According to sources, the draft amendment Bill, pending with the Ministry of Finance, also proposes to grant the RBI the powers to frame policy and issue directives on all aspects of the working of NBFCs. It also seeks to empower the RBI to impose penalties on finance companies which do not adhere to the RBI diktat.

Regulatory commission on power mooted

A Government-industry dialogue on the privatisation of power transmission and distribution (T&D) has recommended the formation of an apolitical Power Regulatory Commission (PRC) at both the Central and State or regional levels to bring about uniformity in tariff throughout the country and also to enforce dispute settlements.

MSE planning bargain netting system

The Madras Stock Exchange plans to introduce the bargain netting system instead of the delivery netting system. Bargain netting, practised in most exchanges of the country, nets out bought and sold positions and only the net excess is delivered to the members or the exchange. In the delivery netting system, a member has the choice to deliver all the shares he has sold even though he may have bought the same number of shares. Under the new system, there will be no delivery from the member or exchange.

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