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PM Dedicates Pipavav Shipyard to the Nation
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Ladakh is a land of abounding in awesome physical feature
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UN pegs India's growth at 8.3 per cent in 2010
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| 04. TRADE AND ECONOMY |
| UN pegs India's growth at 8.3 per cent in 2010 |
| Source : IBEF |
 New Delhi: According to a recently released report of the United Nations, India is estimated to post a robust economic growth of 8.3 per cent in 2010.
The report titled `Economic and Social Survey of Asia and the Pacific 2010' is an annual publication of the United Nations Economic and Social Commission for Asia and the Pacific (ESCAP). According to the report, the outlook for 2010 has improved significantly, with India projected to grow at the rate of 8.3 per cent. The report also added that the growth rate of developing economies in the Asia-Pacific region is expected to be 7 per cent in 2010.
Asia and the Pacific proved to be the fastest-growing region during the downturn on the back of fiscal stimulus packages adopted by the region's biggest economies, as per the report.
Noeleen Heyzer, UN under-secretary general and executive secretary of ESCAP said, the governments must leverage the benefits of economic rebound by investing in social programmes to directly benefit people hardest hit by the crisis.
The survey provides governments of the Asia-Pacific region—representing 62 per cent of the world's population—a roadmap towards a more inclusive and sustainable development path. It gives a number of regional policy recommendations for inclusive and sustainable growth, such as strengthening social protection and enhancing financial inclusion. |
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INDIA’S FOREIGN TRADE: APRIL, 2010
 India’s exports during April, 2010 were valued at US $ 16887 million (Rs.75147 crore) which was 36.2 per cent higher in dollar terms (21.1 per cent in Rupee terms) than the level of US $ 12397 million (Rs.62064 crore) during April, 2009.
Imports during April, 2010 were valued at US $ 27307 million (Rs.121517 crore) representing a growth of 43.3 per cent in dollar terms (27.4 per cent in Rupee terms) over the level of imports valued at US $ 19052 million ( Rs.95377 crore) in April, 2009.
Oil imports during April, 2010 were valued at US $ 8079 million which was 70.5 per cent higher than oil imports valued at US $ 4739 million in the corresponding period last year. Non-oil imports during April, 2010 were estimated at US $ 19229 million which was 34.3 per cent higher than non-oil imports of US $ 14312 million in April, 2009. The trade deficit for April 2010- April, 2011 was estimated at US $ 10420 million which was higher than the deficit of US $ 6654 million during April 2009 -April, 2010. |
| BOA GRANTS 3 FORMAL AND 3 IN PRINCIPAL APPROVAL |
 The Board of Approval of the Special Economic Zones (SEZs) met today to consider proposals for setting up of Special Economic Zones and also to approve other miscellaneous requests pertaining to SEZs.
Addressing the Board of Approval members, the Chairman informed that so far 578 formal approvals have been granted for setting up of SEZs out of which 353 have been notified. He further informed that over Rs.1,48,489 crore have been invested in the Special Economic Zones during this short span of time and direct employment of the order of 5,03,611 persons has been generated in the Special Economic Zones. During the financial year 2009-2010, total exports of Rs.2,20,711 crore has been made from SEZs.
In this meeting, the Board recommended grant of three Formal Approvals and three In-Principal Approvals. |
| Investors can now apply to new fund offers |
| Source : The Economic Times |
 Alternative Route
Mutual Fund investors can now apply to the new fund offers (NFOs) of MF schemes not only by drawing a cheque/demand draft, but also through ASBA facility. Sebi has now extended the ASBA (Applications Supported by Blocked Accounts) facility to mutual funds’ NFOs as well. This facility was earlier restricted only to the initial public offers (IPOs). Under ASBA process, investors can submit an application with their banks containing an authorisation to block the application money in the bank account. This amount will be automatically debited from the investors’ account once the MF units applied for have been allocated to the investor by the fund house.
Cut in NFO period
The period for which an NFO is open for public subscriptions (NFO period) will stand reduced from the existing 30 days to 15 days with effect from July 1, 2010. The tax-saving ELSS category of funds have, however, been exempted from this new provision by Sebi. Investors applying to the units of the new schemes shall be allotted units/dispatched statements within five business days from the date of the closure of the issue.
New Entrants
Peerless and IDBI are the latest entrants in the mutual fund business. While Peerless has started its operations by launching ultra short-term debt and liquid funds, IDBI has launched an index fund – IDBI Nifty Index to begin with. Meanwhile, another public sector bank – Union Bank of India (UBI) has signed a joint venture agreement with Belgium-based ‘KBC’ asset management to start mutual fund business in India. |
SEBI tightens guidelines for rating agencies
Source : The Economic Times
Mumbai: The Securities and Exchange Board of India (SEBI) on Monday tightened guidelines for credit rating agencies, by standardising the definition of defaults by bond issuers, and the formula for computing default rates.
Also, the capital market regulator has made it mandatory for rating agencies to publish information about the historical default rates of their rating categories and whether the default rates of these categories have changed over time. Such a move will help investors evaluate the performance of the rating agency as well as understand the historical performance of each category.
SEBI has defined default as non-payment of interest or principal amount in full on the pre-agreed date. “A CRA (credit rating agency) shall recognise default at the first instance of delay in servicing of interest or principal on the rated debt instrument,” the SEBI circular said.
Senior officials at rating firms said the new SEBI rules would make it easier for investors to compare the ratings by different firms. “There is no point if one firm keeps saying that our default rates are the lowest, and some other firm claims to be better just because their definition of default is different from ours,” said Roopa Kudva, managing director and chief executive of Crisil.
In order to improve transparency, the raters will have to maintain records of the rating committee, including voting details and notes of dissent, for a period of five years. “Overall, the SEBI proposals will boost confidence of investors in the rating process, and makes the ratings comparable,” said Naresh Thakkar, managing director, ICRA.
To avoid potential conflict of interest, a rating agency will now have to ensure that its analysts do not participate in any kind of marketing and business development, including negotiations of fees with the issuer whose securities are being rated. Also, the employees involved in the credit rating process and their dependants cannot own shares of the issuer.
The new rules make it mandatory for a rating agency to disclose the general nature of its compensation arrangements with the issuers. It will also have to disclose the details of any relationship it has with the issuer whose securities are being rated and any of its associate of such issuer and the CRA or its subsidiaries.
It will have to give the break-up of its revenues from the rating and non-rating businesses, and the names of the rated issuers who along with their associates contribute 10% or more of its total revenue.
While rating structured finance products, the rating agency or its subsidiaries have been barred from providing consultancy or advisory services regarding the design of the structured finance instrument. The rating agency will have disclose at least once in every six months, the details and the performance of the rated pool. By global standards, the structured finance market in India is very small. According to a study by ICRA, the Indian structured finance (SF) market in financial year 2009-10 was Rs 42,600 crore, down 22% from the previous year. |
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