RBI Credit Policy: interest rate hikes end

The Reserve Bank of India held benchmark interest rates constant and left liquidity untouched, and did not cut the cash reserve ratios, as was being speculated. But that was not the big takeaway from the credit policy announcements.

The central bank has indicated that it is done with interest rate hikes, given signs of moderating inflation and slowing growth, and will now shift to using interest rate cuts to jumpstart growth again.

Axis Bank-Enam deal gets RBI nod; Shikha Sharma’s first major win

In the Indian banking scene, regulation can often trip up intermediaries. Axis Bank’s acquisition of Enam’s investment banking business appeared to be stuck in a regulatory quagmire, first announced in November 2010.
 

RBI hikes repo rate, growth comes second to price stability

The Reserve Bank of India's credit policy announcements met expectations, except of those people who thought today will signal the end of the rate hike juggernaut. The few who feared the RBI may hike the repo rate by 50 basis points were off the mark, however. The majority were expecting a 25 basis point hike, which is what the central bank has done.

DLF fined Rs 630 crore by Competition Commission of India

The Competition Commission of India has imposed a penalty of Rs 630 crore on real estate developer DLF, for abusing its dominant position.

The commission said that DLF had a dominant position in the market for high-end residential properties in Gurgaon, and it imposed unfair conditions on consumers who had booked flats in these properties.

Oh bother, food prices on the move again!

Is this a blip or something more? India’s primary inflation data –includes food and non-food articles or basic inputs- shows inflation for the week ended July 30 at 12.22%, marking a sharp upturn from 10.99% in the previous week.

Sebi’s NSDL orders: why the fuss?

Summary: Sebi has released two orders which will ask the National Securities Depository Ltd (NSDL) to conduct internal inquiries into systemic and procedural lapses that led to the IPO scam reaching such large proportions without being detected. Though the committee has clarified that its action is not punitive in nature, which might make one wonder what the fuss was all about, the issue is how individual responsibility –as asked by the committee- will be determined.

EU may relax generics drug transit shipment regulations

India’s dispute with the European Union over the passage of generics drugs through EU territory is close to a resolution, or so it appears. The dispute dates back to 2008 when the EU began seizing drug shipments, of generic drugs being shipped to countries via the EU. India’s position as a leading supplier of generic drugs saw it being one of the worst affected.

Sebi opens backdoor for entry loads

Entry load in the guise of transaction charge for subscription

Sebi has said that distributors will now be allowed to charge Rs 100 per subscription for investments below Rs 10,000. A first-time mutual fund investor will have to pay Rs 150.

Impact:

Sebi hikes open offer threshold to 25% from 15%

The Securities and Exchange Board of India, the capital market regulator, has made key changes to the existing takeover regulations. Sebi was acting upon the report of the Takeover Regulations Advisory Committee, which had submitted its recommendations in July 2010. In the interim, there was a change of guard at Sebi, which may have delayed the decision-making process.

Here are the main changes and impact:

Sebi’s bar on IDR redemption irks Standard Chartered’s IDR-holders

Standard Chartered Plc’s Indian Depositary Receipt fell by as much as by 20% on Monday on the BSE, on news that capital market regulator Sebi will not allow redemption of IDRs, except if they were illiquid.

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