Friday, March 5, 1999
Select panel caps foreign stake in insurance ventures at 26%
The Standing Committee on Finance in its meeting on Thursday decided to limit foreign equity to 26% in new insurance companies in its recommendations for modifying the Insurance Regulatory Authority (IRA) Bill. The committee decided that the reservation of 14% equity for foreign institutional investors and overseas corporate bodies mentioned in the IRA Bill be scrapped.
Reserve Bank plans lower CRR on gold deposits
The Reserve Bank of India is planning to bring down cash reserve ratio (CRR) on gold deposits and exempt the yellow metal from statutory liquidity ratio (SLR). In effect, banks will be required to maintain a twin-level of CRR -- one for rupee deposits liability and another for gold deposits.
Centre revenue target may go awry as firms eye tax loophole in Sinha opus
Corporates are set to exploit a loophole in the Union budget presented by Yashwant Sinha for fiscal 1999-2000. They are set to get a tax shield from investments in mutual funds which is likely to affect the Government's revenue targets and prove to be a windfall for corporates.