General Affairs
Coal Scam: Court Grants Time To CBI To File Final Report
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A special court today granted time to CBI for filing the final report in a coal block allocation scam case against Congress leader and industrialist Naveen Jindal, ex-Minister of State for Coal Dasari Narayan Rao and others, in a proper format.
Special CBI Judge Bharat Parashar allowed the investigating officer's plea seeking time on the ground that he has finalised the report, forwarded it to senior authorities and awaiting approval.
The court directed the CBI officer to file the final report on February 6, the next date of hearing. The court had earlier rapped the CBI for not filing the final report in a proper format.
Later, the court had accepted the final report noting that sufficient time has already lapsed in the matter and asked the agency to file the documents in a "proper format" by today.
While filing the report, which contains CFSL report, list of documents, list of witnesses and their statements, the agency had told the court that the probe was complete in the case.
The court had earlier pulled up the CBI for delay in filing the report, saying it was affecting the progress of trial.
CBI had alleged that former Jharkhand Chief Minister Madhu Koda, also accused in the case, had favoured Jindal group firms -- Jindal Steel and Power Ltd (JSPL) and Gagan Sponge Iron Private Ltd (GSIPL) -- in allocation of Amarkonda Murgadangal coal block in Jharkhand.
Opposing CBI's contention, all the accused had said there was no evidence to show that there was any conspiracy during the coal block allocation process. They had also denied the allegations levelled against them by CBI in its charge sheet.
The bench said "Since the Director, CBI will undoubtedly require the assistance of somebody well conversant with the law, we request RS Cheema, who is already a special public prosecutor in coal block allocation cases, to assist the Director, CBI and his team on legal issues".
The Supreme Court also said the CBI Director would indicate on the next date of hearing about the composition of his team and the time required to complete the investigation.
"We need hardly emphasise that the matter is of considerable public importance and should be taken up with due earnestness by the Director, CBI," it said.
While referring to its May 14, 2015 order, the bench noted "we had held that it was completely inappropriate for Ranjit Sinha (then Director of the CBI) to have met persons accused in the coal block allocation cases without the investigating officer being present or without the investigating team being present."
"We were also of opinion that in view of this, it would be necessary to enquire whether any one or more such meetings that Mr Sinha had with the accused persons had any impact on the investigations and subsequent charge sheets or closure reports filed by the CBI," the bench noted in the order.
During the pendency of proceedings, the court had also appointed a committee headed by ML Sharma and former central information commissioner to look into the allegations and Mr Sharma had submitted a report on March 4 last year, it said.
The court had on July 12 last year reserved the order on the issue after Attorney General Mukul Rohatgi told the bench that the panel headed by Mr Sharma has held that Mr Sinha's meetings with some high-profile accused in the case, prima facie indicated that there was an attempt to influence the probe.
Mr Rohtagi, who had only received an initial report of the panel for perusal on condition of confidentiality, had said he had gone through the report which has found that the visitors' diary at Mr Sinha's residence was genuine.
However, he had said the correctness of entries in that diary could only be ascertained in the court through evidence.
The panel was probing the alleged scuttling of probe into coal block allocation scam cases by Mr Sinha, whose meetings with the accused persons were held as "completely inappropriate".
Earlier, the court had given the initial report of the Sharma committee to the Attorney General for his perusal, as the bench wanted his assistance after the panel had sought a direction for supply of documents relating to a preliminary enquiry into some matters in which the probe was closed.
On December 7, 2015, the court had ordered handing over the original visitors' diary of the official residence of the former CBI director to the Sharma-led panel.
Special CBI Judge Bharat Parashar allowed the investigating officer's plea seeking time on the ground that he has finalised the report, forwarded it to senior authorities and awaiting approval.
Later, the court had accepted the final report noting that sufficient time has already lapsed in the matter and asked the agency to file the documents in a "proper format" by today.
While filing the report, which contains CFSL report, list of documents, list of witnesses and their statements, the agency had told the court that the probe was complete in the case.
The court had earlier pulled up the CBI for delay in filing the report, saying it was affecting the progress of trial.
CBI had alleged that former Jharkhand Chief Minister Madhu Koda, also accused in the case, had favoured Jindal group firms -- Jindal Steel and Power Ltd (JSPL) and Gagan Sponge Iron Private Ltd (GSIPL) -- in allocation of Amarkonda Murgadangal coal block in Jharkhand.
Opposing CBI's contention, all the accused had said there was no evidence to show that there was any conspiracy during the coal block allocation process. They had also denied the allegations levelled against them by CBI in its charge sheet.
The bench said "Since the Director, CBI will undoubtedly require the assistance of somebody well conversant with the law, we request RS Cheema, who is already a special public prosecutor in coal block allocation cases, to assist the Director, CBI and his team on legal issues".
The Supreme Court also said the CBI Director would indicate on the next date of hearing about the composition of his team and the time required to complete the investigation.
"We need hardly emphasise that the matter is of considerable public importance and should be taken up with due earnestness by the Director, CBI," it said.
While referring to its May 14, 2015 order, the bench noted "we had held that it was completely inappropriate for Ranjit Sinha (then Director of the CBI) to have met persons accused in the coal block allocation cases without the investigating officer being present or without the investigating team being present."
"We were also of opinion that in view of this, it would be necessary to enquire whether any one or more such meetings that Mr Sinha had with the accused persons had any impact on the investigations and subsequent charge sheets or closure reports filed by the CBI," the bench noted in the order.
During the pendency of proceedings, the court had also appointed a committee headed by ML Sharma and former central information commissioner to look into the allegations and Mr Sharma had submitted a report on March 4 last year, it said.
The court had on July 12 last year reserved the order on the issue after Attorney General Mukul Rohatgi told the bench that the panel headed by Mr Sharma has held that Mr Sinha's meetings with some high-profile accused in the case, prima facie indicated that there was an attempt to influence the probe.
Mr Rohtagi, who had only received an initial report of the panel for perusal on condition of confidentiality, had said he had gone through the report which has found that the visitors' diary at Mr Sinha's residence was genuine.
However, he had said the correctness of entries in that diary could only be ascertained in the court through evidence.
The panel was probing the alleged scuttling of probe into coal block allocation scam cases by Mr Sinha, whose meetings with the accused persons were held as "completely inappropriate".
Earlier, the court had given the initial report of the Sharma committee to the Attorney General for his perusal, as the bench wanted his assistance after the panel had sought a direction for supply of documents relating to a preliminary enquiry into some matters in which the probe was closed.
On December 7, 2015, the court had ordered handing over the original visitors' diary of the official residence of the former CBI director to the Sharma-led panel.
Appoint Director General Of Human Rights Panel Within A Week: Supreme Court Tells Centre
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The Supreme Court has directed the Centre to appoint the Director General in the National Human Rights Commission (NHRC) within a week.
A bench headed by Chief Justice JS Khehar also asked the central government to appoint the members of the human rights body within four weeks.
"You (Centre) will be in trouble if we start hearing this matter and pass some order. We are granting you four weeks to appoint the members. We hope and expect that the process of appointment of members can be concluded in four weeks," the bench said.
At the outset of the hearing, the bench said, "Why don't you (Centre) appoint somebody? You have to do it. We are not going to grant you so much time."
"We will give you three weeks for appointing the members and you appoint the Director General in a week," the bench, also comprising Justices NV Ramana and DY Chandrachud said.
Later, the Supreme Court granted four weeks time for appointing the members of the human rights body after the Centre requested for some more time.
The Supreme Court had on December 2 last year expressed displeasure over inordinate delay in filling up vacant positions in the NHRC including that of the Director General of investigation and a member while directing the Centre to enumerate reasons for the delay.
It had asked the Centre to make these appointments as soon as possible, saying, "How long do you want to drag on? Right from March 2014, there has been vacancy in the commission."
"As regards appointment of Director General (investigation) when was the recommendation for appointment of a suitable officer made and by whom was it approved. The cause for delay in making of the selection/recommendation may also be explained," the bench had said.
The Supreme Court was hearing a plea filed by advocate Radhakanta Tripathy who had said that the "commission cannot function without its chairperson, member and director general of investigation. It has become handicapped due to inaction of the government."
He had contended that due to vacant posts in NHRC for a long time, the pendency of cases has been increasing.
Mr Tripathy had said that under the Protection of Human Rights Act, 1993, NHRC is supposed to comprise a chairperson, who has been a Chief Justice of India, one member who is or has been a judge of the Supreme Court, one member who is, or has been, the chief justice of a high court and two members from amongst persons having knowledge of, or practical experience in matters relating to human rights.
A bench headed by Chief Justice JS Khehar also asked the central government to appoint the members of the human rights body within four weeks.
"You (Centre) will be in trouble if we start hearing this matter and pass some order. We are granting you four weeks to appoint the members. We hope and expect that the process of appointment of members can be concluded in four weeks," the bench said.
At the outset of the hearing, the bench said, "Why don't you (Centre) appoint somebody? You have to do it. We are not going to grant you so much time."
"We will give you three weeks for appointing the members and you appoint the Director General in a week," the bench, also comprising Justices NV Ramana and DY Chandrachud said.
Later, the Supreme Court granted four weeks time for appointing the members of the human rights body after the Centre requested for some more time.
The Supreme Court had on December 2 last year expressed displeasure over inordinate delay in filling up vacant positions in the NHRC including that of the Director General of investigation and a member while directing the Centre to enumerate reasons for the delay.
It had asked the Centre to make these appointments as soon as possible, saying, "How long do you want to drag on? Right from March 2014, there has been vacancy in the commission."
"As regards appointment of Director General (investigation) when was the recommendation for appointment of a suitable officer made and by whom was it approved. The cause for delay in making of the selection/recommendation may also be explained," the bench had said.
The Supreme Court was hearing a plea filed by advocate Radhakanta Tripathy who had said that the "commission cannot function without its chairperson, member and director general of investigation. It has become handicapped due to inaction of the government."
He had contended that due to vacant posts in NHRC for a long time, the pendency of cases has been increasing.
Mr Tripathy had said that under the Protection of Human Rights Act, 1993, NHRC is supposed to comprise a chairperson, who has been a Chief Justice of India, one member who is or has been a judge of the Supreme Court, one member who is, or has been, the chief justice of a high court and two members from amongst persons having knowledge of, or practical experience in matters relating to human rights.
Budget On February 1, No Delay, Says Supreme Court
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The government's annual budget will not be moved from February 1 to after the elections in states like Uttar Pradesh, the Supreme Court ruled today.
The petitioner, an advocate named ML Sharma, had argued that the centre could seek to influence the outcome of the polls with populist spending promises. Election rules do not allow governments to offer giveaways or make any announcements that could skew voters towards the party in power at the centre or in states.
But the court today said that the union budget has "nothing to do with states " and stressed that elections in states are held so often that they cannot impede the work of the centre. "Throughout the year, there may be elections in different states, so should the centre not present the budget?" judges asked.
The Finance Ministry began printing the budget documents last week.
Prime Minister Narendra Modi's government announced last autumn that it would deliver its budget a month earlier than usual for the 2017/18 financial year. The budget session of parliament will start on January 31 when the government is expected to present the Economic Survey, which sets the scene for Finance Minister Arun Jaitley's fourth annual budget.
The cabinet decided last September to merge the railway budget with the annual budget, ending a nearly century-long practice. It also advanced the date of the general budget, usually the last working day in February, to ensure proposals take effect from April 1.
The five state elections begin on February 4 in Punjab and Goa on February 4, followed by Uttarakhand, Uttar Pradesh (which votes on seven days) and Manipur. Results for all will be announced on March 11.
The petitioner, an advocate named ML Sharma, had argued that the centre could seek to influence the outcome of the polls with populist spending promises. Election rules do not allow governments to offer giveaways or make any announcements that could skew voters towards the party in power at the centre or in states.
But the court today said that the union budget has "nothing to do with states " and stressed that elections in states are held so often that they cannot impede the work of the centre. "Throughout the year, there may be elections in different states, so should the centre not present the budget?" judges asked.
Prime Minister Narendra Modi's government announced last autumn that it would deliver its budget a month earlier than usual for the 2017/18 financial year. The budget session of parliament will start on January 31 when the government is expected to present the Economic Survey, which sets the scene for Finance Minister Arun Jaitley's fourth annual budget.
The cabinet decided last September to merge the railway budget with the annual budget, ending a nearly century-long practice. It also advanced the date of the general budget, usually the last working day in February, to ensure proposals take effect from April 1.
The five state elections begin on February 4 in Punjab and Goa on February 4, followed by Uttarakhand, Uttar Pradesh (which votes on seven days) and Manipur. Results for all will be announced on March 11.
Government Considering Separate Regulator For Electronic Payments
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With digital transactions gaining traction, the government is mulling setting up of a separate regulator for enabling electronic payment system in the country as well as regulate transaction charges.
While the Ratan Watal committee on digital payments suggested that the government makes regulation of payments independent from the function of central banking, sources said that the Reserve Bank of India is not very keen on giving up the regulation on Payment systems.
Official sources said that the RBI, as a banking regulator, frames policies to benefit banks and not enforcement of competition and innovation objectives in conduct of firms in the payment industry.
"So far, regulations are becoming bank focused. If there is a separate regulator, the focus would be on ease of transaction and rationalisation of cost. Hence, there is a case for setting up of an authority for enabling electronic payment system in India," an official source told news agency PTI.
The Reserve Bank, in its representation before the Watal Committee, has stated that regulation of payments should be with the central bank because regulating money supply is an integral function of a central bank and includes maintaining the confidence in money as a means of exchange.
Explaining the need for a separate regulator, the source said that electronic payment does not entail exchange of physical cash and it does not involve deposit taking or credit offtake or servicing of loans/deposits.
"Payments can happen without banking. Payment regulation is different from banking regulation. RBI is not agreeing to it," the source said, adding the proposed regulator should have majority of its membership from businesses having direct familiarity with the payment process, or allied businesses.
The Watal Committee, which submitted its report to Finance Minister Arun Jaitley last month, weighed two options on how best regulation of electronic payments can be made independent from the function of central banking.
The committee considered creation of a new payments regulator, or making the current Board for Regulation and Supervision of Payment and Settlement Systems (BPSS) within RBI more independent.
Sources said that RBI, as a regulator, is focusing more on the interest of banks rather than creation of a financial ecosystem and even after coming up with consultation paper on fixing MDR charges in March 2016, it has not been able to fix the charges.
In December, post-demonetisation, the RBI had said that Merchant Discount Rates (MDR) charges on payments made through debit cards will be capped at 0.25 per cent for transactions up to Rs. 1,000 and 0.5 per cent between Rs. 1,000 and 2,000 for the period January 1-March 31.
The RBI also did away with levies on small transactions through mobile phones till March-end.
Since September 2012, the MDR for debit card purchases had been capped at 0.75 per cent for transactions up to Rs. 2,000 and 1 per cent for above Rs. 2,000. However, there is no RBI cap on MDR on credit card payments.
MDR, or Merchant Service Fee (MSF), is the fee charged to the merchant by the financial institution/ bank which has set up the PoS or card acceptance machine at the merchant location for use of this infrastructure.
"RBI could not rationalise the MDR charges since last year despite floating a consultation paper. RBI has not been able to regulate it and it should be separated," the source said, adding that even while UPI or United Payment Interface, just entails payment transfer, the banks are charging money.
"They are taking it more as a revenue model rather than an integral part of banking. If there is a separate regulator, then the regulations will not be bank-focused," the source said.
Though the regulatory policy on MDR (issued in September 2012) had indicated a cap on it, it is generally treated as floor, with the benefit of lower MDR not really accruing to smaller merchants.
"In certain segments like mutual funds, insurance, etc., a flat fee structure of charges has also been established by the industry," the RBI had said in the concept paper.
Therefore, cash continues to be the predominant mode of payment as it appears to be 'costless' in comparison to the visible costs associated with card / electronic payments.
While the Ratan Watal committee on digital payments suggested that the government makes regulation of payments independent from the function of central banking, sources said that the Reserve Bank of India is not very keen on giving up the regulation on Payment systems.
Official sources said that the RBI, as a banking regulator, frames policies to benefit banks and not enforcement of competition and innovation objectives in conduct of firms in the payment industry.
The Reserve Bank, in its representation before the Watal Committee, has stated that regulation of payments should be with the central bank because regulating money supply is an integral function of a central bank and includes maintaining the confidence in money as a means of exchange.
Explaining the need for a separate regulator, the source said that electronic payment does not entail exchange of physical cash and it does not involve deposit taking or credit offtake or servicing of loans/deposits.
"Payments can happen without banking. Payment regulation is different from banking regulation. RBI is not agreeing to it," the source said, adding the proposed regulator should have majority of its membership from businesses having direct familiarity with the payment process, or allied businesses.
The Watal Committee, which submitted its report to Finance Minister Arun Jaitley last month, weighed two options on how best regulation of electronic payments can be made independent from the function of central banking.
The committee considered creation of a new payments regulator, or making the current Board for Regulation and Supervision of Payment and Settlement Systems (BPSS) within RBI more independent.
Sources said that RBI, as a regulator, is focusing more on the interest of banks rather than creation of a financial ecosystem and even after coming up with consultation paper on fixing MDR charges in March 2016, it has not been able to fix the charges.
The RBI also did away with levies on small transactions through mobile phones till March-end.
Since September 2012, the MDR for debit card purchases had been capped at 0.75 per cent for transactions up to Rs. 2,000 and 1 per cent for above Rs. 2,000. However, there is no RBI cap on MDR on credit card payments.
MDR, or Merchant Service Fee (MSF), is the fee charged to the merchant by the financial institution/ bank which has set up the PoS or card acceptance machine at the merchant location for use of this infrastructure.
"RBI could not rationalise the MDR charges since last year despite floating a consultation paper. RBI has not been able to regulate it and it should be separated," the source said, adding that even while UPI or United Payment Interface, just entails payment transfer, the banks are charging money.
"They are taking it more as a revenue model rather than an integral part of banking. If there is a separate regulator, then the regulations will not be bank-focused," the source said.
Though the regulatory policy on MDR (issued in September 2012) had indicated a cap on it, it is generally treated as floor, with the benefit of lower MDR not really accruing to smaller merchants.
"In certain segments like mutual funds, insurance, etc., a flat fee structure of charges has also been established by the industry," the RBI had said in the concept paper.
Therefore, cash continues to be the predominant mode of payment as it appears to be 'costless' in comparison to the visible costs associated with card / electronic payments.
Jallikattu: 'Anti-National Elements', Not Students, Causing Chennai Violence, Say Cops
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A row of charred police cars with flames still licking their chassis, a helicopter circling above, boats treading waves with black flags - by noon, it was obvious that the coda of the peaceful mass demonstration for Jallikattu, the bull-taming sport, was robbed off the spirit of youthful fervor and integrity that won it so much admiration. The violence that erupted at Chennai's Marina Beach today, the police stressed, was not the work of students, who were the engine of the powerful week-long movement. "Anti-national elements," the cops said, had crept into the area, determined to cause some wreckage as attempts are made to clear the area for Republic Day arrangements.
Several public personalities, however, blamed the police and the government for failing to engage with students, who, last Tuesday, assembled at the shoreline and then put out calls for support on social media. The response was immediate and evocative: lawyers, IT professionals, parents with young children in tow all gathered to proclaim that those who claim Jallikattu tortures bulls do not understand how it's conducted or its cultural significance, and that a ban on the sport levied in 2014 by the Supreme Court must be set aside.
"Young blood is boiling. The youngsters (on Marina Beach) are educated crowd, not an uneducated crowd. We need to speak to them and have a dialogue," said actor-politician Khushboo of the Congress. Superstar Kamal Haasan, who has expressed ardent support for the movement, tweeted, "This is a mistake. Aggressive police action on students' passive resistance will not bear good results." He also urged the students to keep calm. This morning, the police asked the Marina Beach gathering to disband because the Tamil Nadu government used an executive order on the weekend to allow Jallikattu to resume. The students said they wanted proof that a new law would be brought in that would ensure Jallikattu could withstand legal challenges by animal rights groups like PETA. Nearly 5,000 students were evicted, but anger began building over reports that the police had used lathis or batons on some of them. The police said it withstood stones and slippers being hurled at its personnel. To resist being moved out, some students walked into the water; others formed a human chain.
Political leaders were not allowed to participate in the Marina Beach campaign - students asked them to leave. Government sources who asked not to be named because of the sensitivity of the matter said it was hard to identify the leaders of such a broad-based movement. Balaji, a popular entertainer and Radio Jockey, told students that it is time to go home, tweeting that today's behaviour threatened to undo what had been accomplished. "The police have been very supportive, helpful. (It's) time we understand and behave accordingly. The ordinance and thepromise for a permanent solution is itself a huge victory for us. So you need to withdraw," he said. Jallikattu is performed with the 4-day harvest festival of Pongal. Animal rights activists say that bulls are abused, taunted with chillies in their eyes, and given fodder laced with alcohol ahead of their bouts in open fields with young men, who compete to remain mounted on a bull for at least three jumps.
But the lakhs of people who support Jallikattu say incidents of bulls being tortured are anomalies, and must be punished, but that a wholesale ban on the sport is unacceptable.
After the Supreme Court sided with animal activists in 2014, the centre, last year, allowed the sport to resume, a move that has been challenged in the top court which has agreed that it will not deliver its verdict for a week to ensure it does not provoke an outburst in response.
Several public personalities, however, blamed the police and the government for failing to engage with students, who, last Tuesday, assembled at the shoreline and then put out calls for support on social media. The response was immediate and evocative: lawyers, IT professionals, parents with young children in tow all gathered to proclaim that those who claim Jallikattu tortures bulls do not understand how it's conducted or its cultural significance, and that a ban on the sport levied in 2014 by the Supreme Court must be set aside.
"Young blood is boiling. The youngsters (on Marina Beach) are educated crowd, not an uneducated crowd. We need to speak to them and have a dialogue," said actor-politician Khushboo of the Congress. Superstar Kamal Haasan, who has expressed ardent support for the movement, tweeted, "This is a mistake. Aggressive police action on students' passive resistance will not bear good results." He also urged the students to keep calm. This morning, the police asked the Marina Beach gathering to disband because the Tamil Nadu government used an executive order on the weekend to allow Jallikattu to resume. The students said they wanted proof that a new law would be brought in that would ensure Jallikattu could withstand legal challenges by animal rights groups like PETA. Nearly 5,000 students were evicted, but anger began building over reports that the police had used lathis or batons on some of them. The police said it withstood stones and slippers being hurled at its personnel. To resist being moved out, some students walked into the water; others formed a human chain.
But the lakhs of people who support Jallikattu say incidents of bulls being tortured are anomalies, and must be punished, but that a wholesale ban on the sport is unacceptable.
After the Supreme Court sided with animal activists in 2014, the centre, last year, allowed the sport to resume, a move that has been challenged in the top court which has agreed that it will not deliver its verdict for a week to ensure it does not provoke an outburst in response.
Business Affairs
BSE share sale subscribed 50% on Day 1
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BSE's initial public offer-the first by a domestic stock exchange in India-to raise up to Rs 1,243 crore received 50 per cent subscriptions on the first day of the 3-day bidding on Monday.
The IPO, which closes on January 25, received bids for 54,30,204 shares as against the total issue size of 1,07,99,039, data available with NSE till 1700 hours showed.
The portion set aside for qualified institutional buyers (QIBs) was subscribed 17 per cent and that of non-institutional investors 12 per cent. The retail investor category got 86 per cent bids.
The stock exchange aims to raise up to Rs 1,243 crore from the IPO, which is priced at Rs 805-806 per share. During the initial share sale-which is also a first by any company this year-shareholders will sell 15.43 million shares estimated to be around Rs 1,243.44 crore at the higher end of the price band.
The IPO of 15,427,197 shares of face value of Rs 2 each will constitute up to 28.26 per cent of the fully-diluted post offer issued share capital of BSE. Bids for the issue can be made for a minimum of 18 shares and in multiples of 18 thereafter.
Meanwhile, BSE on Friday raised Rs 373 crore by allotting shares to anchor investors. BSE shares will be listed on NSE as Sebi rules do not allow self-listing for an exchange. Capital market regulator Sebi had given its final go-ahead to the draft prospectus for the IPO on December 30. Meanwhile, rival NSE too filed draft papers with Sebi last month for an estimated Rs 10,000-crore IPO.
Among the existing BSE shareholders are Bajaj Holdings Investment, Caldwell India Holdings, Acacia Banyan Partners, Singapore Exchange, Mauritius-based arm of American investor George Soros' Quantum Fund and foreign fund Atticus. There are an estimated 9,000 shareholders at BSE, where originally mostly brokers held shares.
However, a host of foreign investors and domestic financial institutions have acquired shares over the years and the IPO will provide some of them an exit window to monetise their investments. The issue is being managed by Edelweiss Financial Services, Axis Capital, Jefferies India, Nomura Financial Advisory and Securities (India) Pvt, Motilal Oswal Investment Advisors, SBI Capital Markets and SMC Capitals.
BSE is the world's largest exchange by number of listed companies. It is India's largest and the world's 10th largest exchange by market capitalisation. The market capitalisation of BSE-listed companies stands at Rs 1,10,91,223 crore. Multi Commodity Exchange of India is the only listed bourse in the country.
BSE's initial public offer-the first by a domestic stock exchange in India-to raise up to Rs 1,243 crore received 50 per cent subscriptions on the first day of the 3-day bidding on Monday.
The IPO, which closes on January 25, received bids for 54,30,204 shares as against the total issue size of 1,07,99,039, data available with NSE till 1700 hours showed.
The portion set aside for qualified institutional buyers (QIBs) was subscribed 17 per cent and that of non-institutional investors 12 per cent. The retail investor category got 86 per cent bids.
The stock exchange aims to raise up to Rs 1,243 crore from the IPO, which is priced at Rs 805-806 per share. During the initial share sale-which is also a first by any company this year-shareholders will sell 15.43 million shares estimated to be around Rs 1,243.44 crore at the higher end of the price band.
The IPO of 15,427,197 shares of face value of Rs 2 each will constitute up to 28.26 per cent of the fully-diluted post offer issued share capital of BSE. Bids for the issue can be made for a minimum of 18 shares and in multiples of 18 thereafter.
Meanwhile, BSE on Friday raised Rs 373 crore by allotting shares to anchor investors. BSE shares will be listed on NSE as Sebi rules do not allow self-listing for an exchange. Capital market regulator Sebi had given its final go-ahead to the draft prospectus for the IPO on December 30. Meanwhile, rival NSE too filed draft papers with Sebi last month for an estimated Rs 10,000-crore IPO.
Among the existing BSE shareholders are Bajaj Holdings Investment, Caldwell India Holdings, Acacia Banyan Partners, Singapore Exchange, Mauritius-based arm of American investor George Soros' Quantum Fund and foreign fund Atticus. There are an estimated 9,000 shareholders at BSE, where originally mostly brokers held shares.
However, a host of foreign investors and domestic financial institutions have acquired shares over the years and the IPO will provide some of them an exit window to monetise their investments. The issue is being managed by Edelweiss Financial Services, Axis Capital, Jefferies India, Nomura Financial Advisory and Securities (India) Pvt, Motilal Oswal Investment Advisors, SBI Capital Markets and SMC Capitals.
BSE is the world's largest exchange by number of listed companies. It is India's largest and the world's 10th largest exchange by market capitalisation. The market capitalisation of BSE-listed companies stands at Rs 1,10,91,223 crore. Multi Commodity Exchange of India is the only listed bourse in the country.
Major changes in tax structure likely in Budget: Report
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The much-awaited Union Budget for 2017-18 is expected to bring in some major changes to the tax framework for individuals and corporates following the demonetisation measure, a rating agency said today.
According to Care Ratings, the Budget on February 1 would be addressing issues with respect to "additional revenue garnered on account of the income disclosure scheme as part of the demonetisation drive and expenditure allocations based on the assessment of the economy as there appears to be a slowdown in growth post demonetisation", among others.
"The tax framework would be interesting for individuals and corporates where there are expectations of some major changes following demonetisation," it said in a report.
"The indirect tax structure will be largely on lines with the agreed principles of GST (Goods and Services Tax), which looks likely to be implemented from July 1, 2017."
Care Ratings estimates the Government to levy tax between 12 per cent and 18 per cen on services, depending on its classification based on essential and non essential services as a move towards the final GST rate.
On the direct tax front, the rating agency expects the Government to lower the corporate tax rate. Finance Minister Arun Jaitley in 2015 had laid a road map to reduce the tax rate from 30 per cent to 25 per cent over the next four years.
"This Budget is expected to take the first step in this direction and the rate may be lowered to 27.5 per cent with some checks on the exemptions which presently reside in the tax structure."
Moreover, the report said while the Government is expected to reduce the MAT (minimum alternate tax) rate to its initial level of 7.5 per cent, it would likely be brought down to 15 per cent for the next fiscal.
Observing that the current MAT rate at 18.5 per cent is quite high, the report said the high rate adversely impacts the cash flow of companies that have low taxable income or have incurred losses, among others.
The report noted that going with Prime Minister Narendra Modi's recent statement with respect to gains from financial markets to be used for nation building, there could be an "increase in the rate of tax for short term capital gains from 15 per cent to 17.5 per cent", for 2017-18.
"Long term capital gains on equity are also on the cards to be bought on par with debt with a three year lock in period."
Besides, the tax exemption slab for individuals could be raised from Rs 2.5 lakh to Rs 3 lakh even though the main objective is to expand the tax base, it noted.
On the expenditure side, the revenue expenses in the next fiscal is expected to grow by 10-15 per cent from the level of Rs. 17.31 lakh crore in the current financial year on account of increased payments towards higher borrowings, interest rate subventions and implementation of the 7th Pay Commission and OROP Scheme (One Rank One Pension).
However, the report noted this increase in the expenditure heads could be offset to an extent by the lower subsidies on the fertilisers and food.
The budgeted expenditure towards Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA) could be increased by 10 per cent for 2017-18, Care Ratings said.
The much-awaited Union Budget for 2017-18 is expected to bring in some major changes to the tax framework for individuals and corporates following the demonetisation measure, a rating agency said today.
According to Care Ratings, the Budget on February 1 would be addressing issues with respect to "additional revenue garnered on account of the income disclosure scheme as part of the demonetisation drive and expenditure allocations based on the assessment of the economy as there appears to be a slowdown in growth post demonetisation", among others.
"The tax framework would be interesting for individuals and corporates where there are expectations of some major changes following demonetisation," it said in a report.
"The indirect tax structure will be largely on lines with the agreed principles of GST (Goods and Services Tax), which looks likely to be implemented from July 1, 2017."
Care Ratings estimates the Government to levy tax between 12 per cent and 18 per cen on services, depending on its classification based on essential and non essential services as a move towards the final GST rate.
On the direct tax front, the rating agency expects the Government to lower the corporate tax rate. Finance Minister Arun Jaitley in 2015 had laid a road map to reduce the tax rate from 30 per cent to 25 per cent over the next four years.
"This Budget is expected to take the first step in this direction and the rate may be lowered to 27.5 per cent with some checks on the exemptions which presently reside in the tax structure."
Moreover, the report said while the Government is expected to reduce the MAT (minimum alternate tax) rate to its initial level of 7.5 per cent, it would likely be brought down to 15 per cent for the next fiscal.
Observing that the current MAT rate at 18.5 per cent is quite high, the report said the high rate adversely impacts the cash flow of companies that have low taxable income or have incurred losses, among others.
The report noted that going with Prime Minister Narendra Modi's recent statement with respect to gains from financial markets to be used for nation building, there could be an "increase in the rate of tax for short term capital gains from 15 per cent to 17.5 per cent", for 2017-18.
"Long term capital gains on equity are also on the cards to be bought on par with debt with a three year lock in period."
Besides, the tax exemption slab for individuals could be raised from Rs 2.5 lakh to Rs 3 lakh even though the main objective is to expand the tax base, it noted.
On the expenditure side, the revenue expenses in the next fiscal is expected to grow by 10-15 per cent from the level of Rs. 17.31 lakh crore in the current financial year on account of increased payments towards higher borrowings, interest rate subventions and implementation of the 7th Pay Commission and OROP Scheme (One Rank One Pension).
However, the report noted this increase in the expenditure heads could be offset to an extent by the lower subsidies on the fertilisers and food.
The budgeted expenditure towards Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA) could be increased by 10 per cent for 2017-18, Care Ratings said.
Swiss Re receives branch license to sell reinsurance in India
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Swiss Re has obtained regulatory approval to open a branch in India, the world's second largest reinsurer said on Monday, part of the Swiss company's growth aspirations in the world's second most populous country.
The branch, which opens operations on Feb. 1 in Mumbai, has been licensed to sell non-life, life and health reinsurance solutions directly to clients and brokers in India, the Swiss reinsurer said.
"This is a significant milestone for us," Swiss Re's head of reinsurance in Asia, Jayne Plunkett, said in a statement. "Our new India branch, together with Swiss Re Global Business Solutions centered in Bangalore, represent our commitment and investment in India's long term future, and our ambition to be part of this dynamic high growth market."
Swiss Re has obtained regulatory approval to open a branch in India, the world's second largest reinsurer said on Monday, part of the Swiss company's growth aspirations in the world's second most populous country.
The branch, which opens operations on Feb. 1 in Mumbai, has been licensed to sell non-life, life and health reinsurance solutions directly to clients and brokers in India, the Swiss reinsurer said.
"This is a significant milestone for us," Swiss Re's head of reinsurance in Asia, Jayne Plunkett, said in a statement. "Our new India branch, together with Swiss Re Global Business Solutions centered in Bangalore, represent our commitment and investment in India's long term future, and our ambition to be part of this dynamic high growth market."
Sort out 'legacy issues' of some big investments: UAE to India
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Ahead of the talks between Crown Prince of Abu Dhabi Sheikh Mohammed bin Zayed Al Nahyan and Prime Minister Narendra Modi on Wednesday, the UAE has sought "legacy issues" of some of the big investments of its companies be sorted out as well as relaxation in FDI in sectors like ports and real estate.
Al Nahyan, who is arriving here on Tuesday and will be Chief Guest at the Republic Day parade on Thursday, will hold talks with Modi on strengthening cooperation in key areas including energy, defence, security and trade after which two sides will ink Strategic Cooperation Agreement.
Asserting that the UAE wants better, stronger economic ties, UAE Ambassador Ahmed Al Banna told PTI in an interview that his country "wants to see that the legacy issues of some of the big investments of UAE companies sorted out.
"We want to open new doors for new investments. We would like to see relaxation of certain rules and regulations in FDI including ports, real estates, IT and communication".
UAE companies that are facing issues in India with regard to their investments include telecom firm Etisalat, marine terminals developer DP World, Emaar (realty) and TAQA (energy).
Following a Supreme Court order cancelling its 13 telecom licences, Etisalat exited from India operations and has sought refund of the licence fee as well as bank guarantees.
The two countries have been among each other's top trading partners with a well-balanced bilateral trade of about USD 50 billion in 2015-16.
The UAE is among the top investors in India in terms of foreign direct investments and contributes significantly to India's energy security. It was also the fifth largest supplier of crude oil to India in 2015-16.
Al Banna also noted that while thirty years ago the bilateral trade was only USD 28 million, it is now USD 50 billion and has put the trade ties and the entire partnership on a different "track".
Ahead of the talks between Crown Prince of Abu Dhabi Sheikh Mohammed bin Zayed Al Nahyan and Prime Minister Narendra Modi on Wednesday, the UAE has sought "legacy issues" of some of the big investments of its companies be sorted out as well as relaxation in FDI in sectors like ports and real estate.
Al Nahyan, who is arriving here on Tuesday and will be Chief Guest at the Republic Day parade on Thursday, will hold talks with Modi on strengthening cooperation in key areas including energy, defence, security and trade after which two sides will ink Strategic Cooperation Agreement.
Asserting that the UAE wants better, stronger economic ties, UAE Ambassador Ahmed Al Banna told PTI in an interview that his country "wants to see that the legacy issues of some of the big investments of UAE companies sorted out.
"We want to open new doors for new investments. We would like to see relaxation of certain rules and regulations in FDI including ports, real estates, IT and communication".
UAE companies that are facing issues in India with regard to their investments include telecom firm Etisalat, marine terminals developer DP World, Emaar (realty) and TAQA (energy).
Following a Supreme Court order cancelling its 13 telecom licences, Etisalat exited from India operations and has sought refund of the licence fee as well as bank guarantees.
The two countries have been among each other's top trading partners with a well-balanced bilateral trade of about USD 50 billion in 2015-16.
The UAE is among the top investors in India in terms of foreign direct investments and contributes significantly to India's energy security. It was also the fifth largest supplier of crude oil to India in 2015-16.
Al Banna also noted that while thirty years ago the bilateral trade was only USD 28 million, it is now USD 50 billion and has put the trade ties and the entire partnership on a different "track".
Trai proposes Aadhaar eKYC for existing mobile users too
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Telecom regulator Trai today suggested verification of existing mobile subscribers through Aadhaar based e-KYC and said free talk-time or data could be offered by operators as incentives to facilitate the process.
In its latest recommendation to DoT, Trai has also proposed that Aadhaar-based e-KYC should be permitted for outstation customers at any place within the service area.
"DoT may work with TSPs (telecom service providers) to evolve a framework to verify the existing mobile subscribers through Aadhaar based e-KYC services in a phased manner and within a defined timeframe. However, this process should be optional to the service providers as well as mobile subscribers," Trai said in a statement.
As per the suggestions, Subscribers may have to be given some sops in terms of free talk-time or data to encourage them to undergo the e-KYC process.
"The existing paper-based KYC is not robust enough and the possibility of significant number of working SIMs, which may have been acquired on fake/forged identity, cannot be fully ruled out. The owner of such fake identity would not even be aware that SIMs are working in his/her name," Trai said.
Stating that it has received several cases from state police where it has been found that hundreds of SIM cards have been obtained on fake documents, Trai is of the view that the existence of such SIM cards poses a real security challenge.
"It is essential that not only the new subscribers are enrolled through the e-KYC process, but the existing subscriber base should also be verified through e-KYC process in a phased manner within a defined timeframe. Further, barring e-KYC for outstation customers results in artificial restriction and avoidable inconvenience," Trai observed.
Terming Aadhaar linked e-KYC as a "robust mechanism" for verification, Trai said the system takes care of the issues relating to fake or forged identity proof and manual entry into the system, among others.
Telecom regulator Trai today suggested verification of existing mobile subscribers through Aadhaar based e-KYC and said free talk-time or data could be offered by operators as incentives to facilitate the process.
In its latest recommendation to DoT, Trai has also proposed that Aadhaar-based e-KYC should be permitted for outstation customers at any place within the service area.
"DoT may work with TSPs (telecom service providers) to evolve a framework to verify the existing mobile subscribers through Aadhaar based e-KYC services in a phased manner and within a defined timeframe. However, this process should be optional to the service providers as well as mobile subscribers," Trai said in a statement.
As per the suggestions, Subscribers may have to be given some sops in terms of free talk-time or data to encourage them to undergo the e-KYC process.
"The existing paper-based KYC is not robust enough and the possibility of significant number of working SIMs, which may have been acquired on fake/forged identity, cannot be fully ruled out. The owner of such fake identity would not even be aware that SIMs are working in his/her name," Trai said.
Stating that it has received several cases from state police where it has been found that hundreds of SIM cards have been obtained on fake documents, Trai is of the view that the existence of such SIM cards poses a real security challenge.
"It is essential that not only the new subscribers are enrolled through the e-KYC process, but the existing subscriber base should also be verified through e-KYC process in a phased manner within a defined timeframe. Further, barring e-KYC for outstation customers results in artificial restriction and avoidable inconvenience," Trai observed.
Terming Aadhaar linked e-KYC as a "robust mechanism" for verification, Trai said the system takes care of the issues relating to fake or forged identity proof and manual entry into the system, among others.
General Awareness
Himachal Pradesh Found Best State in Learning Outcomes by ASER
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According to the 2016 Annual Status of Education Report (ASER), developed by a non-governmental organisation, Pratham, Himachal Pradesh was found to be best performing state in India on the education front as compared to the rest of the states.
- Himachal Pradesh had the highest reading and mathematics learning levels, surpassing even Kerala which is regarded as the most literate state of India.
Analysis of 2016 Annual Status of Education Report (ASER)
ASER conducted the survey on 15,630 government schools in rural India. Out of this 283 schools were visited in Himachal Pradesh where 15 organisations participated in ASER-2016 across the state.
- As per the report the enrolment rate of students in the age group 6-14 in Himachal Pradesh was 99.8 percent and the state secured first rank in achieving learning outcomes in basic reading and mathematics across the country.
- In language category, government schools of Himachal Pradesh was 65.3 percent more literate as compared to the national level of 41.6 percent.
- In mathematics category, the achievement level of the state was 47.4 percent as compared to the national level of 21.1 per cent. The government schools have performed better than private schools throughout the state in mathematics.
- In learning of English language, the national level had the achievement level of 15.3 percent whereas it is 44 percent in case of Himachal Pradesh and the state ranked fifth in the country.
- Besides, Himachal Pradesh has the highest rate of children who can read a standard II level of text in the country while 47 percent can read standard III level books, a 70.5 percent for standard V and an 87.9 percent for standard VIII.
About Annual Status of Education Report (ASER)
The Annual Status of Education Report (ASER) is the largest non-governmental annual household survey undertaken in rural India and is facilitated by the Pratham Education Foundation.
- ‘ASER’ means impact in Hindi. The survey measures the enrolment status of children between 3-16 years and tests basic reading and arithmetic abilities of children through a common set of testing tools and a comprehensive sampling framework.
- A local institution carries out the survey in each rural district. The entire pan-Indian process is completed within approximately 100 days and the report is released in January each year.
- ASER reports are generally used by State and Centre Governments to help define their education programmes each year.
Pratham Education Foundation
Pratham is one of the largest non-governmental organisations in India. It was co-founded by Madhav Chavan and Farida Lambay . It works towards the provision of quality education to the underprivileged children in India.
- Founder: Madhav Chavan
- Motto: Every Child in School & Learning Well
- Headquarters: Mumbai & Delhi
- According to the 2016 Annual Status of Education Report (ASER), developed by a non-governmental organisation, Pratham, Himachal Pradesh was found to be best performing state in India on the education front as compared to the rest of the states.
- Himachal Pradesh had the highest reading and mathematics learning levels, surpassing even Kerala which is regarded as the most literate state of India.
Analysis of 2016 Annual Status of Education Report (ASER)ASER conducted the survey on 15,630 government schools in rural India. Out of this 283 schools were visited in Himachal Pradesh where 15 organisations participated in ASER-2016 across the state.- As per the report the enrolment rate of students in the age group 6-14 in Himachal Pradesh was 99.8 percent and the state secured first rank in achieving learning outcomes in basic reading and mathematics across the country.
- In language category, government schools of Himachal Pradesh was 65.3 percent more literate as compared to the national level of 41.6 percent.
- In mathematics category, the achievement level of the state was 47.4 percent as compared to the national level of 21.1 per cent. The government schools have performed better than private schools throughout the state in mathematics.
- In learning of English language, the national level had the achievement level of 15.3 percent whereas it is 44 percent in case of Himachal Pradesh and the state ranked fifth in the country.
- Besides, Himachal Pradesh has the highest rate of children who can read a standard II level of text in the country while 47 percent can read standard III level books, a 70.5 percent for standard V and an 87.9 percent for standard VIII.
About Annual Status of Education Report (ASER)The Annual Status of Education Report (ASER) is the largest non-governmental annual household survey undertaken in rural India and is facilitated by the Pratham Education Foundation.- ‘ASER’ means impact in Hindi. The survey measures the enrolment status of children between 3-16 years and tests basic reading and arithmetic abilities of children through a common set of testing tools and a comprehensive sampling framework.
- A local institution carries out the survey in each rural district. The entire pan-Indian process is completed within approximately 100 days and the report is released in January each year.
- ASER reports are generally used by State and Centre Governments to help define their education programmes each year.
Pratham Education FoundationPratham is one of the largest non-governmental organisations in India. It was co-founded by Madhav Chavan and Farida Lambay . It works towards the provision of quality education to the underprivileged children in India.- Founder: Madhav Chavan
- Motto: Every Child in School & Learning Well
- Headquarters: Mumbai & Delhi
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