• Inflation drops to 13-mth low of 3.92%
• Corporates can bring in FDI via partly-paid shares
• RBI to revive ‘holding company’ proposal
• Another stimulus possible: Pranab
• Ministry for easing FDI in retail
• Law soon on forfeiting frozen demat assets
• Licence fee for MVNOs capped at Rs 85 crore
• Media & entertainment sector set to grow 12.5% by 2013: Report
• Singapore co may buy 75% in Amritjal Venture
• Inflation fell to a 13-month low of 3.92% for the week ended February 7 on the back of a sharp fall in prices of edible oils and manufactured products. Inflation based on the wholesale price index has eased sharply from a 16-year peak of 12.91% in August 2008 due to a sharp fall in commodity prices and slowing demand. Finance ministry is learnt to be in consultations with the RBI over the future course of action and a number of variables other than the drop in inflation would be taken into account before adjusting policy rates. (ET)
• According to sources, companies may soon be allowed bring in foreign capital through issue of partly paid-up shares if these are converted into fully paid-up shares in 18 months. A recent ruling by the FIPB is learnt to have removed ambiguities in the rules regarding partly paid-up shares. DIPP supported the proposal and said partly paid-up equity shares should be treated the same way as warrants. The FDI policy was so far silent on this instrument. The issue came up at the last FIPB meeting, when the board took up a long-pending proposal of Indian cable company Wire & Wireless to issue partly paid-up equity shares to raise Rs 450 crore. The FIPB had rejected the proposal once at an earlier meeting. (ET)
• According to sources, Reserve Bank of India (RBI) proposes to reopen the contentious issue of holding companies for banks, as part its review of the roadmap for foreign bank operations in India. RBI had earlier proposed to defer the review, which is meant to provide guidelines for the presence of foreign banks in India from April 2009 onwards, given the current economic meltdown globally and in the domestic markets RBI will reconsider draft guidelines it issued during Governor Y V Reddy’s tenure, following proposals by ICICI Bank and State Bank of India in 2007. (BS)
• Finance Minister Pranab Mukherjee has announced that he would discuss the possibility of another set of fiscal and monetary measures to counter the economic slowdown with officials and the RBI. The Minister said that he believes that fiscal corrections and monetary policy changes go side by side, so that the impact is felt.” He also admitted that to overcome the problem of slowdown, the government has to “ensure that more jobs are generated, and more investments in the employment-oriented sectors have to be done. (FE)
• The food processing ministry is learnt to be in favour of easing FDI norms in the retail sector saying farmers would get higher returns for their produce by connecting themselves with the global trade. (FE)
• According to sources, govt proposes to amend the Depositories Act to declare the frozen accounts with the depositories as unclaimed, so as to consider forfeiture of the unclaimed securities. The new law may be in the form of an amendment to the Depositories Act and a part of the forfeited money would be utilised for investor education.(BL)
• Department of Telecommunications (DoT) has decided to peg the entry fee for Mobile Virtual Network Operators (MVNO) at a maximum of Rs 85 crore for a pan-India licence. DoT is expected to spell out the policy to give the licences soon. This will enable international companies, which had missed out on getting a telecom licence, to get a foothold in the fastest growing mobile market. It has also been decided that MVNOs will have to pay spectrum charges similar to what existing operators pay. In addition they will have to give a performance bank guarantee equivalent to 5 per cent of what the existing mobile players have paid. (BL)
• FICCI Frames 2009 in Mumbai on Tuesday, as the Rs 58,400 crore took stock of the challenges that lay ahead.
• The FICCI-KPMG annual report on the Indian media and entertainment industry has projected a 12.5 % growth for the media and entertainment industry to reach the size of Rs 1,05,200 crore by 2013. The Report further states that low media penetration and advertisement to GDP ratio were the cardinal factors that are expected to spur growth in this segment. At the same time, 2009-10 spells caution for industry players.(BL)
• According to sources, Singapore-based River Valley Hydro Ventures is close to picking 75% stake in Secunderabad-based power firm Amritjal Venture for Rs 300 crore. River Valley Ventures is looking to invest in hydro power projects in India and other countries. The deal would value Amritjal Venture at Rs 400 crore. The proceeds of the stake sale will be invested by the Indian firm in setting up hydro power projects in Sikkim. (ET)
