The RBI left rates untouched, but did cut them as some had hoped. Industry can take comfort from its stance that interest rates will moderate assuming inflation keeps falling.
The RBI shows no indication that its job is done. It is still unhappy with inflation racing way ahead of its comfort zone. If inflation does not concede defeat, it may hike rates yet again.
The Sebi committee’s order asks NSDL to review its systems, and pinpoint people responsible for the IPO scam-related lapses. Sebi too gets a slap on the wrist, told to play a more proactive role.
The Securities and Exchange Board of India today key decisions that will affect mutual funds: a transaction charge, more transparency, a single KYC-process and distributor regulation will debut in 2011-12.
Sebi has ushered change into India’s M&A landscape. Acquirers will find the going easier, and open offers may become less frequent. Minority shareholders should fret but there is something for them too.
The Budget 2011-12 has made the NPS more attractive, by removing employer’s contribution from the Rs 1-lakh exemption limit and by allowing it as a business expense.
The CERC notified new regulations governing power trading exchanges, even existing ones. Restriction on shareholding may be a bother and so will a rule that insists on a minimum 20% market share for every exchange.
