• Foreign inflows in for composite ceiling
• RBI plans norms for govt banks to enter pvt equity
• GoM mandated to decide on 3G before polls
• CEOs less confident on future prospects: PwC
• Fortis buys 29% in Clinique for $3.5m
• According to sources, government may simplify its foreign investment policy by doing away with the ceiling on portfolio investments by foreign institutional investors (FIIs) and instead prescribing a composite foreign investment cap allowing Indian companies to club together foreign direct and portfolio investment inflows. The move is expected to give more flexibility to sectors like aviation, commodity and share trading. Govt also plans to allow 49% foreign equity in Indian airlines through the automatic route. (ET)
• RBI is learnt to be formulating guidelines to allow government-owned banks get into the private equity (PE) business. The guidelines are almost ready and the announcement for the same could be expected by the end of the current financial year. Presently, banks are allowed to take direct equity exposure up to 20 per cent of their net worth. (BS)
• According to sources, the panel of ministers finalising the policy and roadmap for auctions of 3G spectrum has been mandated to do so by mid-February before the code of conduct for the general elections kicks in implying that the govt plans to go ahead with the auctions in the period between March to May.
• According to a global survey by PwC, the slowdown in world economies has battered the confidence of company heads about the future prospects of their businesses as they expect a slow, gradual recovery over the next three years. The survey pints out that worldwide, just 21% of CEOs said they were very confident of revenue growth in the next 12 months, down from 50% in last year’s survey, while more than a quarter of the executives said they were pessimistic about prospects for the coming year. The survey results were released at the World Economic Forum annual meeting in Davos, Switzerland.
• Hospital chain operator Fortis Healthcare and Mauritius-based diversified Industrial Group CIEL are together buying out 58% stake in Mauritius’ private hospital Clinique Darne for $7 million, marking the international foray for Fortis. CIEL and Fortis Healthcare’s wholly-owned subsidiary Novelife have invested $3.5 million each to pick equal stake of 29% in Clinique Darne, a company listed on the Stock Exchange of Mauritius. (ET)
