• Center, states may agree on 16% GST
• Promoters must disclose pledged shares: SEBI
• Mortgage guarantors may be allowed only 49% FDI
• Air India is seeking to off-load stake to foreign airlines
• According to sources, Center and states may reach an agreement to have 16 % rate for goods and services tax (GST), which will be implemented from April 2010. GST, which will replace almost all central and state taxes, could have two components of 8 % each — one will go to the Center and the other to the states. However, it will not cover tax on petroleum products and Customs duty. (BS)
• Securities and Exchange Board of India (SEBI) has made it mandatory for promoters to disclose details of shares pledged by them in their listed entities. SEBI has mandated two kinds of disclosures — event-based disclosures, which must be made as and when the shares are pledged, and periodic disclosures, which must be made when companies report their quarterly statements to the stock exchanges. For event-based disclosures, SEBI will change the regulations and for periodic disclosures it will amend the listing agreement. (BS)
• According to sources, govt may bring down FDI limit in mortgage guarantee companies (MGCs) from the existing 100% to 49%, retrospectively. Foreign MGCs operating in the country may be asked to dilute at least 51% stake in its Indian subsidiaries in favour of potential domestic JV partners. (ET)
• National Aviation Corporation of India Ltd (Nacil), the entity created following the merger of state-owned Air India and Indian Airlines, is learnt to be looking to foreign carriers for investment in its airline and has started sending feelers regarding a possible stake sale to carriers like Singapore Airlines and German airline Lufthansa. The move follows a recent proposal in the Cabinet by civil aviation minister to allow FDI of up to 25% in Indian carriers. (BL)
