The Tribune, Chandigarh, India

	NSE to launch MF platform today New Delhi, November 29 The country's top mutual fund houses, including UTI Mutual Fund, are keen to join National Stock Exchange's new mutual fund service system (MFSS), which will be launched tomorrow. According to market sources, UTI Mutual Fund will be the first to leverage the NSE's mutual fund platform, which would enable exchange's members to use its existing infrastructure for transaction in MF schemes. Initially, UTI will list its equity and debt schemes that are in about 30 numbers, people familiar with the matter said. Along with UTI, "all top mutual fund houses are keen to join this platform," he added. UTI spokesperson could not be reached for comment on the issue. At the end of October, UTI Mutual Fund had an average asset under management (AUM) of Rs 76,847 crore. NSE's new MFSS will commence from November 30 and it will substitute the existing MF scheme, introduced in 2000. Market regulator SEBI recently gave its approval for facilitating transactions in MF schemes through stock exchange infrastructure. "The infrastructure that already exists for the secondary market transactions through the stock exchanges with its reach to over 1,500 towns and cities, through over two lakh stock exchange terminals can be used for facilitating transactions in mutual fund schemes," SEBI had said. According to SEBI, the stock exchange mechanism would also extend the present convenience available to secondary market investors to mutual fund investors. Market participants are enthusiastic about new MF platform and a number of fund houses are expected to join this facility in the coming days. At present, 36 mutual fund houses are operating in the country. NSE's mutual fund platform will be available on all business days between 9 am to 3 pm. Later in the evening, UTI Mutual Fund chief marketing officer Jaideep Bhattacharya told PTI, "we have about 30 schemes which will be listed on the NSE mutual fund platform." "These include equity, balanced and some debt schemes," he added. — PTI
	Dubai crisis not a threat, says PMEAC New Delhi, November 29 The Prime Minister's economic panel does not expect the Dubai debt crisis to trigger another meltdown in the world and has retained its forecast of Indian economic growth rate to 6.5 per cent for the current fiscal. "I don't expect really a slip back as far as the economic recovery is concerned. Most countries in the West have shown positive growth in the third quarter of 2009 and this trend will continue. But as we all know recovery is going to be slow and modest," Prime Minister's Economic Advisory Council (PMEAC) chairman C Rangarajan told PTI here. Rangarajan said probably the West Asian countries would come to the rescue of Dubai, which may not plunge the world into another financial meltdown. Dubai's $80 billion debt woes have sent shock waves around the world, showing how fragile the economic recovery is. Asked whether the crisis in Dubai would lead his council to revise its forecast for India's economic growth this fiscal, he said, "I do not think so, because Indian economy is driven primarily by the domestic demand." The council pegged Indian economy to grow by 6.5 per cent this fiscal against 6.7 per cent a year ago. — PTI
	Price Rise: Centre asks states to check hoarding New Delhi, November 29 The Centre today asked states to supplement its efforts to curb price rise of essential items by cracking down on hoarding more effectively. "According to the Essential Commodities Act, states are responsible for acting against hoarding. So, they have to ensure imposition of stock limits on food items," Water Resources and Parliamentary Affairs Minister PK Bansal said here at a function organised by fertiliser co-operative IFFCO. Bansal is the latest to join the issue of price rise along with his other Cabinet colleagues, Finance Minister Pranab Mukherjee and Agriculture Minister Sharad Pawar, who have put the onus on states, clearly maintaining that reining in prices is not just a Central issue. "The Centre has done its bit where it has to roll out subsidies and boost PDS. There is no confrontation (with states but responsibilities are different and they have to do certain things to help check prices," Bansal added. Already, wholesale price-based food inflation touched 15.58 per cent during the second week of this month. Moreover, retail prices of items like sugar and potatoes have almost doubled in a year, while those of pulses have surged by up to 80 per cent. Though some states have imposed stocks limits on items like pulses and sugar, and clamp down on hoarding, the number of people detained for hoarding this year is a meagre 156. Asked if the Centre should call an all-party meeting to discuss price rise, Bansal said the issue has already been debated in the Lok Sabha and will soon be discussed in the Rajya Sabha as well. Delivering his lecture, Bansal said per capita availability of water has dipped to 1,650 cubic meters in 2007 from 5,300 cubic meters in 1951, putting pressure on irrigation and farm production. "The per capita supply of water is expected to dip further to less than 1,500 cubic meters by 2025," he added. — PTI
	Tatas reject £10 m loan by British govt London, November 29 Indian conglomerate Tata Group has rejected a £10 million British government loan, which was supposed to be used for developing an electric version of one of its existing models, says a media report. "The Indian conglomerate Tata has snubbed Lord Mandelson, the business secretary, rejecting a £10 million loan for a technical centre in the Midlands," the Sunday Times reported. Quoting senior motor industry sources, the report said the Tatas, owner of premium car brands Jaguar and Land Rover and steel maker Corus, has in the past few days told the government that it does not want the money. "It has decided it can get better terms from commercial lenders," the newspaper said citing sources. Mandelson had last month announced the loan (£10 million), saying that Britain was backing Tata's research into electric cars. The £10 million government loan was designed to bolster a £25 million investment by Tata Motors, in its European Technical Centre based at Warwick University. — PTI
	Yarn dealers worried over increased rates Shivani Bhakoo Tribune News Service Ludhiana, November 29 The ever-increasing rates of yarn and threads, especially of cotton, polyester/cotton (PC), and spun, have worried the dealers, exporters and manufacturers in this part of region. Due to fluctuation of rates at the International market, the prices of each yarn has gone up by approximately Rs 15 per kg in the past one month. Speculations are rife that prices were expected to increase further in the coming days. Sunil Mehra, chairman of Yarn Dealers' Association, Punjab and general secretary of Punjab Pradesh Beopar Mandal, told The Tribune that rates of yarn had reached to an all- time high. "The prices of raw material have also gone up. Besides, the rates of acrylic and polyester fibre at international market have also gone higher. The increased rates have become a cause of concern for dealers, manufacturers and exporters", said Mehra, adding that rates were fluctuating on daily basis and buyers were purchasing yarn in small quantities, expecting the rates to be slashed. Hitesh Gambhir, an exporter, said prices of dollar have come down and rates of yarn had increased. Exporters, already in the middle of orders are finding it difficult to deliver goods at same prices. "We can not ask the buyer to pay the price for increased yarn rates but as far as new orders are concerned, we are not taking it for the time-being. We are still studying the market. If we get orders at lower rates and cost of yarn increases further, we will have to bear huge losses", said Gambhir adding that rates were fluctuating on daily basis. Another dealer in yarn and threads, Ashutosh Gupta said in October end, the rates of 20 single PC (polyester/cotton) was Rs 114 per kg and 20 single cotton was Rs 116, but now same yarn was available for Rs 127 and Rs 138, respectively. Gupta said buyers were reluctant to place the orders. "But if rates continue to remain like this, buyers will have no choice but to get yarn at higher rates. The major reason for the increase in rates is that prices of raw material have gone up tremendously in recent times", said Gupta.
	No job losses due to Dubai crisis: Indian consulate Dubai, November 29 Allaying fears of an exodus of its migrant workforce and largescale job losses, India's consulate here today said the Dubai debt crisis had no direct impact on the country and there was no need to be panic. "We are confident the government of Dubai and the UAE are fully capable of handling the short-term crisis faced by Dubai World," India's Consul General Venu Rajamony told PTI. The UAE government-owned holding company Dubai World seeking extension of repayment of debt amounting $59 billion till May next year has spooked worries that it may soon lead to largescale job losses in the region and an exodus of workforce back to India. Rajamony said the decision on seeking extension of repayment is not going to lead any sudden job losses of Indians or an exodus back home. Million of workers from India are employed in realty and other sectors in Dubai and other Middle-East cities and their families are dependent on remittances. Indians form 42.3 per cent of the population of Dubai. India's Finance Minister Pranab Mukherjee also yesterday said the crisis will not have "earth shaking" impact on the economy. "The full impact of the Dubai debt crisis is yet to be assessed, but there is no need to press the panic button". On the issue of the large number of Indians working in Dubai, he had sounded confident, "I don't think it will have much effect on Indian workers in that country. Indian businessmen and analysts on the ground also said the world was overreacting to the crisis. Local Indian businessmen said it is too early to judge the impact on remittances, redundancies and other business activities. Managing director of Xpertize United and a board member of the Indian Business Professional Council (IBPC) in Dubai Navin Kapoor said there would be hardly any impact on India. "The exposure of Indian financial institutions to Dubai World is being assessed at this point in time but in my opinion it will have practically no impact on India," he said. "There is no reason to panic on this issue," he added. Indian banks on Friday said that they have an exposure of Rs 5,000-6,500 crore in the Middle-East city, but are not worried and the crisis might not have a major impact on their balance sheets. Bank of Baroda, the largest Indian lender in the United Arab Emirates, said it has an exposure of Rs 5,000 crore in Dubai. India's largest lender SBI has an exposure of around Rs 1,500 crore in United Arab Emirates, including Dubai. Dubai World has significance presence in India as its arm DP World is associated with at least six ports in the country. — PTI
	NRI can contribute capital in partnership firm Tax Advice by S.C. Vasudeva Q. I am a Canadian national living in India for the last 8 years. I have three kids and wife with me and we have been living with my parents where I also take care of the family business. Now I am going back to Canada for six months. My question is, do I need any tax exemption certificate from tax office? I also have a firm running under my name please also tell if its legal to do business in India? — VS Brar A. a) Section 230 of the Act provides that persons who are not domiciled in India and who have come to India in connection with business, profession or employment and who desire income from any source in India shall be required to obtain a “No Objection Certificate” from the department before leaving the territory of India by land, sea or air. Such persons are required to furnish an undertaking from the employer or through whom such persons are receiving such income, for the purposes of getting “No Objection Certificate”. The facts in the query do not indicate the status as to your domicile. In case you are not domiciled in India, you will have to get the “No Objection Certificate” in accordance with the aforesaid provisions of the Act. b) It seems you are a non-resident Indian i.e. your father and/or grand father were settled in India. You are allowed to contribute capital in a proprietory/partnership firm on non-repatriation basis. Bounced cheque Q. I sold my apples from my apple orchards to a agent for a total consideration of Rs 1,90,000. He gave me a cheque postdate (19 Sep, 2009) on 8 Sep, 2009 for the same amount. Now, when I presented the cheque in the bank, they said insufficient funds in account. Then we talked to him telephonically, and he assured or may be kept on gaining time till now on one pretext or other. Now he says “aapne jo karna hai kar lo. I am not paying”. After our inquiries we came to know that he is a Nepali, married to Indian wife. He has recently got a loan sanctioned from a bank for approx Rs 1 crore for setting up a cold store, but under his wife’s name, but the cheque he gave me is from his individual account. Before the loan payment was released to his wife we wrote to the bank that the credentials are not sound and the person had malafide intention of cheating us, but they didn’t take any action. I came to know from one of the employees of the bank that the staff has colluded with the person and he has greased their palms. As I have the option to proceed with criminal complaint against him, but that will take so long a time that the money after 5-10 years would not be of as much use to me as now, as I have counted on that payment for paying my plot installment. Now I want to teach that person a lesson so as to prevent him from cheating others. His partial payment has been released from the bank against the loan that he has got sanctioned for cold store. Is there anything that I can do to prevent his further payment being released from the bank so that his project does not come up. I feel that if he has a fear of his margin money being forfeited by the bank and his project not able to take off, he may get forced to give me my payment. Can the higher bank officials be forced to take any action? Is it possible to retrieve my money somehow by stopping the further release of payment to him. — Dr SK Sood A. It would be advisable to approach the Vigilance Officer of the Bank with all the details cited by you in the query. This would require an immediate action on your part so that the installment due to the person concerned is not released by the bank. A copy of the complaint should also be sent to the chairman and managing director and the executive director of the bank. I hope this would enable you to retrieve your money from the person to whom you have sold the apples. Deduction on medical expenses Q. I returned from overseas after 17 years with an intention of returning permanently. I came back in December 2005. I was informed that I do not have to pay tax for two years. I had kept by RFC A/c in which interest of $ 15,000 was earned. I have put office deposits on which interest has also been earned. The income, excluding RFC a/c interest, would be less than the tax liability. I incurred medical expenses of about Rs.5 lakh on a major surgery which I had to undergo. Please let me know the following: (a) about non-taxability for two years is correct. (b) is interest in RFC account taxable. (c) am I entitled to any deduction for medical expenses of Rs 5 lakh. — B Sharma A. a) The Act provides that in case of a person resident in India following incomes arising to him during the previous year shall be taxable: (i) Income received or deemed to be received in India (ii) Income which accrues or arises or is deemed to accrue or arises in India and (iii) Income which accrues or arises to him outside India. You would be therefore liable to pay tax on any income of the nature referred to herein above provided you satisfy the test of being a resident in India. b) The period of two years referred to in your query is applicable to a person who is not ordinarily resident in India and in such cases the income which accrues or arises to him outside India is not taxable for the said period of two years provided it is not derived from a business controlled in India or a profession set up in India. c) In view of the above provisions, the interest income arising to you in India would be taxable in case you satisfy the test of being a resident in India and your taxable income exceeds the maximum amount not chargeable to tax for the years for which interest has been earned by you. The interest earned in RFC account is no exception. d) No deduction is allowable in respect of medical expenses incurred by you on self or for your wife as no provision exists in the Act for such deduction from the total income of a person.