 |
|
Left sees red in opening up of banking sector
India-Singapore relations move beyond trade, says minister |
|
|||||||||||||||||||||||||||||||||||||||||||||||
|
IA woos families to grab market share
Govt aims to make India a gold-trading hub Aviation Notes
Carpet scam resurfaces Investor guidance
Sip imposes artificial discipline on investors Graphics:
|
|
Left sees red in opening up of banking sector New Delhi, October 30 Expressing party’s opposition, CPI national secretary D Raja told reporters “the move would harm the national interest.” “It is a matter of serious concern. We are opposed to it and we don’t think this is a proper thing to do. It will not be in the national interest,” he said on the sidelines of the party’s National Council meeting here. He was reacting to the statement by Union Finance Minister P. Chidambaram, who had indicated greater FDI inflow including foreign banks picking up stakes in Indian banks. Mr Raja said foreign banks would “not abide by the Reserve Bank of India (RBI) rules and regulations” and their funds would not be used for developmental purposes in India. Maintaining that the matter should be seriously looked into and there was “no simple way out,” Mr Raja said the CPI National Council would deliberate on it in detail. Meanwhile, the Communist Party of India (Marxist) today asked the UPA government to bear the financial burden of welfare schemes like National Employment Guarantee Scheme. “State governments are under severe financial strain. The UPA government must generate resources on its own. Besides we will insist that the government should not mingle the Food for Work programme with the employment scheme. These are two separate projects,” CPM Politburo member Sitaram Yechury told on the sidelines of the party’s Central Committee meet here. He said the Central Committee reiterated their support to the employment guarantee scheme and similar welfare measures contained in the CMP and suggested that the financial burden of these projects must be borne by the Centre alone.
|
|
Chidambaram promises
6 lakh SHGs in 3 years New Delhi, October 30 “If the response is positive we can target a higher 6-6.5 lakh SHGs by 2006-07. I will ensure that banks perform their duties (of stepping up loans),” he said. “Only 10 per cent of bank credit goes to small borrowers, who account for 72 per cent of the bank accounts. That explains the systemic deficiency,” Mr Chidambaram said while speaking at a national conference of SHG leaders here. Presently, there are 10,79,000 SHGs in the country and a large majority of these (about 90 per cent) are specifically for women. “What gives me confidence is—a record 98 per cent of all loans given to small borrowers are promptly repaid. Even industrialists do not have this record,” Mr Chidambaram said adding the government would take steps to ensure that the volume of loans to small borrowers is increased.
|
|
India-Singapore relations move beyond Bangalore, October 30 Unveiling the fifth ‘inventor’ building at the International Technology Park Ltd (ITPL), he stressed the importance of “a free flow of goods, services, ideas and technologies” and said Singapore and India could provide many facilities and services for companies looking for comparative advantages across national borders, in a time of increasing expectations and competitive pressures. Tiny Singapore has over 7,000 companies, of which 60 per cent have made it their regional headquarters. Over 1,000 of these have their regional or global manufacturing facilities house there, he added. The ITPL is a joint venture between Tata Industries (the investment arm of the Tata Group), a Singapore consortium led by Ascendas Pte., and the Karnataka state government.
|
|
IA woos families to grab market share
Mumbai, October 30 Under the scheme, being introduced during the peak season, two children below the age of 12 can travel free with two full-fare paying adult passengers, an IA release said here today. The scheme, on till January 31, would be valid for one way or round trip travel on domestic sectors, except sectors operated by ATR42 and Dornier aircraft, in economy class only. Also, a maximum of two children between 12 to 18 years can avail a 50 per cent discount on normal published fare while accompanying two full-fare paying adults. In case one child is below 12 years and the other between 12 and 18, the former can travel free while the latter gets a 50 per cent discount, the release added. In the first five months of this fiscal, Jet Airways held its lead by flying 43.4 per cent of the total passenger traffic followed by Indian Airlines with 38.8 per cent market share.
— PTI
|
|
Govt aims to make India a gold-trading hub New Delhi, October 30 Inaugurating the International Gold Summit here on today under the aegis of The Associated Chambers of Commerce and Industry of India (Assocham), Minister for Commerce & Industry, Mr Kamal Nath said that the committee, whose constitution will be announced in the next three days, will also suggest ways and means for further liberalising the metal trade regulations so that India becomes a leading regional hub centre for gold and silver trading in the world. The Minister announced that the Committee will be asked to submit its recommendations latest by December 31, 2004, so that the Commerce & Industry Ministry forwards its suggestions to the Finance Ministry before the finalisation of the budget proposals for 2005-06 to accommodate the Ministry’s view point for further liberalization of the metal trade in the commodities market.
|
by A.N. Shanbhag
Sip imposes artificial discipline on investors
Q: In one of magazines, I read that Sip (Systematic Investment Planning) in mutual funds is the best option for an investor who does not have much time to devote to study for equity investment. I want to invest in Sip investment. Could you please suggest which SIP method is right to invest? — Pawan Mittal A: Though SIP is a popular form of investment, I do not approve of it personally. It imposes an artificial discipline on the investor. For example, sometimes, perhaps because of mitigating circumstances in a given month, investment may not be possible. Yet, Sip forces him to invest the earmarked funds. There may be a period in stock markets when the valuations are either too high or going down rapidly when a wait and watch attitude would be more prudent. Or an investor may even have the money on hand before the due date of Sip. An investor should invest the investible funds, as soon as possible and as much as possible, keeping in view the economic and political climate. He should have the freedom to decide the scheme and whether or not he should invest. The compulsory savings aspect of Sip is only of psychological value. The investor should have a self-imposed discipline and not artificial compulsions. However, if self-discipline and some amount of homework is not possible, then Sip is advisable.
UTI Master Shares
Q: I have the following query: 1) I had purchased 10,000 units of UTI Master Shares at Rs 10.80 per unit from stock market on 15-05-2003, when Master Share was listed on NSE. I redeemed them on 25-05-2004 @ Rs 17 per unit from Unit Trust of India. I could not sell it in the stock exchange because it was delisted around October 2003. Kindly inform whether 20 per cent tax would be charged on the above capital gains or 10 per cent tax would be imposed because when I purchased it the Master Share units were listed securities but when I redeemed them the units were not listed. 2) I had also purchased 10,000 units of Morgan Stanley growth fund at Rs. 8 per unit on 15-05-03 from NSE and sold the same of 25-05-04 @ Rs 14 per unit on May 25, 2004, through the same exchange. Please inform whether 10 per cent tax will be charged on the long term capital gains because the units were listed in national stock exchange. — Rajiv A: Since the Master Shares were sold before October 1, 2004, the new regime of exemption of capital gains on MF units if sold on a recognised stock exchange or repurchased from the MF directly, does not apply. The old provision of 20 per cent with indexation or 10 per cent without indexation, whichever is lower, applies, whether you have sold it on any stock exchange or repurchased from the MF directly. The same provision applies to Morgan Stanley units.
LTCG & STCG
Q: I have been a regular reader of your column. I wish to seek some clarifications so that I can take due care in time in planning my investments. Kindly spare some moments to reply to these small issues: 1. Long Term and Short Term Capital Gains on non-equity MFs. Is it correct to presume that wherever STT is not applicable, the LTCG and STCG will continue to apply at the earlier prevailing rates? Or, is it that once the STT regime has come into operation, even for the transactions in debt schemes of MFs will not attract any LTCG and the STCG rate will be 10 per cent only? 2. If the earlier prevailing rates of LTCG and STCG are going to continue on the transactions of non-equity MFs, does it also imply that set off of capital losses will also continue on the earlier prevailing basis? — Krishna Kumar A: You are right. 1. For abundant precaution, I would like to modify your statement a little. If STT is not applicable at the time of sale of equities or MF units, the LTCG and STCG will continue to apply at the old rates. In other words, if you sell equities on a recognised stock exchange, purchased before October 1, 2004 or through IPOs or right issues, either before or after the designated date, the new regime will prevail because STT is applicable to the sale transaction. However, if the sale takes place outside any recognised stock exchange, STT is not applicable and the old regime would prevail even if the purchases were made on a recognised stock exchange after October 1, 2004 and consequently, STT was paid on the purchase transaction. The same structure is applicable to units of MFs. 2. The carried forward LTCL and STCL can be setoff against the current LTCG (unless, it is exempt) and STCG. The only condition is LTCL cannot be setoff against STCG which was the provision incorporated because STCG was, in most of the cases was taxed @ 30 per cent or higher and LTCG was @20 per cent and in some cases, @10 per cent. Now that STCG for equities and equity based Schemes of MFs is slated to be taxed @10 per cent, the situation has reversed but the provisions have not.
|
|||||
|
|
|||||
|
|
bb
Forex reserves BSNL website Visit to Pak LML models |
| HOME PAGE | |
Punjab | Haryana | Jammu & Kashmir |
Himachal Pradesh | Regional Briefs |
Nation | Opinions | | Business | Sports | World | Mailbag | Chandigarh | Ludhiana | Delhi | | Calendar | Weather | Archive | Subscribe | Suggestion | E-mail | |
