need2know: Tackling wilful defaulters, a roadmap for PSU banks and more

Will consolidation of PSU banks be the next big event for the financial markets to look out for? You might get a hint from the two-day retreat, Gyan Sangam, which is expected to outline the reform agenda for state-owned banks in the coming year. This and more macro buzz that may may have an impact on the market today

Sebi set to get tougher with wilful defaulters: The Securities and Exchange Board of India (Sebi) will make it difficult for so-called wilful defaulters from raising fresh equity or debt from the public, according to two people familiar with the agenda of the regulator’s next board meeting. The move will mark yet another effort by the Indian government, the Reserve Bank of India (RBI) and now Sebi to crack down on the problem of bad loans.'''

RBI floats draft framework for account aggregator NBFCs: RBI has come out with a draft regulatory framework for a new kind of Non-Banking Financial Company (NBFC) which would act as an account aggregator to help people view their accounts across financial institutions in a common format. Only companies registered with the RBI as NBFC - AA will be able to undertake this business which will be IT driven. The proposal said an account aggregator will not be able to undertake any other business.

Govt to Provide Clarity on GAAR Before Implementation: Anti-avoidance framework in the form of GAAR will be effective from April next year, but the government is ready to give any guidance to provide more clarity, revenue secretary Hasmukh Adhia has said. He also said that the government cannot remove minimum alternate tax till corporate tax exemptions are in place. The rules for determining place of effective management of a company have been deferred till April 2017 to give companies time to prepare accounts according to their place of residency under the new norms.

Auto Biggies Speed up Make in India Drive: Three global automobile powerhouses either have started operating their India factories round the clock or are in the process of doing so to meet increasing export demand, in a resounding endorsement of the Prime Minister's call to make in India. For the past six months, Ford Motor's manufacturing facility in Tamil Nadu is running three shifts a day, Europe's largest carmaker, Volkswagen, is set to start a third shift starting next week, while the US No. 1, General Motors, is expected to add another shift from the beginning of next year. Interestingly, these companies mostly cater to markets in Latin America, Europe and Africa.

I-T dept clarifies on capital gains for 2000-13 period: With an aim to reduce litigation and easing burden of compliance, the Income-Tax Department today said the amount received on buyback of shares between period April 1, 2000 and May 31, 2013 will be taxed as capital gains and not dividend in the hands of the recipient.

Prepare for petrol squeeze


Services PMI cools to 3-month low: Growth in India’s services firms fell to a three-month low of 51.4 in February from 54.3 in January, as output rose only marginally, according to a business survey. The seasonally adjusted Nikkei/Markit Services Purchasing Managers’ Index (PMI) had experienced a 19-month high rate of growth in January, marking a seventh month above the 50-level that separates growth from contraction.

Cabinet to take call on gas pricing for 'difficult' oilfields: The oil ministry is likely to approach the Union Cabinet soon seeking a decision on pricing for oil and gas output from undeveloped discoveries located in difficult geologies hard to exploit - deep sea, ultra-deep sea and high temperature-high pressure areas. This follows Finance Minister Arun Jaitley's statement on the proposal to link pricing for such discoveries to alternative fuels.

Pay panel bill: 25% not budgeted for : The Centre has budgeted to meet nearly three-fourths of the estimated cost of the Seventh Pay Commission award in 2016-17 with a provision of Rs 53,500 crore, as it deferred the payment of extra allowances of Rs 22,000 crore. The budgetary outlay for salaries and pensions rose by Rs 59,000 crore or 21 per cent to Rs 3.36 lakh crore in FY17, while the pay panel had pegged the annual hike in the outlay for pay, pension and allowances at Rs 73,650 crore.

Budget credit negative for PSBs: Moody's: Moody's Investors Service on Thursday said the Budget for 2016-17 is "credit negative" for PSU banks as the capital infusion road map falls short of the required Rs 1.45 lakh crore. "The Budget is credit negative for public sector banks because the government has stuck to its capital infusion road map announced in 2015, budgeting Rs 25,000 crore in injection," says Srikanth Vadlamani, Moody's Vice President and Senior Credit Officer.

Anti-dumping duty likely on a chemical imports from 6 nations: The government is expected to impose anti-dumping duty of up to $127 per tonne on a chemical, used in flavours and fragrance industry, originating from six countries, including the US and the EU. The move is aimed at protecting the domestic industry from cheap in-bound shipments from the six countries - European Union, Indonesia, Korea, Malaysia, Chinese Taipei and the US.