• FDI in primary dealership of debt instruments likely via auto route
• 3G auction may be delayed
• SEBI studying proposal to extend currency futures trading hours
• New law for supervision of holding companies proposed
• RBI shelves move to allow FIIs in IDRs
• Refineries may soon be declared no-fly zones
• Unitech plans to set up two product-specific SEZs
• India faces huge manpower crunch: study
• DRDO against port near missile test range
• UTI Mutual Fund to divest 26% stake by Mar
• According to sources, FDI in primary dealership activities such as primary dealership of commercial papers, security receipts, asset and mortgage-backed securities may soon be allowed on automatic route by including such activities under the head of NBFCs. Foreign investors may also be permitted to undertake dealerships of brokerage and underwriting services in government securities and corporate bonds under automatic route. (ET)
• The much-awaited auction of 3G spectrum slated for January 16 is likely to be postponed by at least a few weeks as the Cabinet Committee on Economic Affairs (CCEA) is yet to approve the policy proposed by DoT on higher 3G spectrum charge and number of blocks to be auctioned in each circle. (BS)
• SEBI is learnt to be studying a proposal submitted by exchanges to extend trading hours of the currency futures segment in line with commodities as both are linked closely with each other. If SEBI approves the demand, trading hours of currency futures will be extended to 11.30 pm from the existing 9 am to 5.30 pm. (BS)
• According to sources, the advisory panel to the Committee on Financial Sector Assessment (CFSA) appointed by the government has suggested enactment of a new law on the lines of the Gramm-Leach-Bliley (GLB) Act of the US to empower RBI to have regulatory jurisdiction over the holding company. The proposed legislation should be more comprehensive than the GLB and should empower RBI to have regulatory reach over holding companies that do not even have a subsidiary, which is within its functional regulatory domain. Supervision of each business line must be is combined with an additional level of supervision at the holding company level. (BL)
• The RBI is learnt to have put on hold a proposal mooted by the finance ministry and SEBI seeking to allow FII investment in IDRs. Since the proposal could have foreign exchange implications, RBI wants that any decision on the issue should be taken only after the uncertainty in the global financial markets ends. (ET)
• According to sources, govt is considering a proposal by of oil ministry to declare all 20 refineries in the country as ‘no-fly’ zones to avoid terrorist attacks. The threat to vital oil installations including refineries are considered significantly high amidst growing tension with Pakistan. Petroleum ministry is in favour of declaring all refineries as no-fly zones and has also proposed similar precautionary measures for coastal oil installations. The matter is being examined by the ministry of defence. (ET)
• According to sources, Unitech is planning to set up 2 SEZs for automobiles and apparel sectors in Haryana and will approach the government for approval within the next six months. Unitech already has about 70% of the land for the proposed projects in Haryana. The sizes of the two SEZs have not been disclosed. (ET)
• According to a recent report published by the Confederation of Indian Industry (CII) and the Boston Consulting Group (BCG) titled ‘India’s demographic dilemma’ India’s fast growing services sector is likely to face huge shortage of trained manpower by 2012 despite the fact that it has more than half its population in the working age group — the highest among large developing countries. The Report has estimated India would face ‘talent gap’— the lack of right skills for the job required — of more than 5 million by 2012, as existing educational institutions do not impart employable skills.
• The defence research development organisation (DRDO) is learnt to have objected to the state government’s move to set up an all-weather port at Inchudi at the mouth of Subernarekha river on the ground that it fell within the 50-km of the test range at Chandipur. The state government was planning at least five ports in Balasore coast, but has received a green signal from DRDO for four other ports at Bahalpur, Chudamani, Chandipur and Kirtania. Only one port at Inchudi was objected to. (Mint)
• According to sources, country’s oldest fund house, UTI Asset Management Co. Pvt. Ltd, is likely to offload 26% stake to a strategic partner in the next three months. The negotiation is at the advance stage and the deal is expected to be closed by February or early March. Japan-based Shinsei, with which the fund house has a tie-up with regard to global fund management, is being considered to be the strategic partner. (Mint)
