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CABINET CLEARS 49% FOREIGN INVESTMENT CAP FOR INSURANCE

New Delhi: The Union Cabinet on Thursday cleared a Bill to raise the foreign investment ceiling in private insurance companies from 26 per cent to 49 per cent, but inserted a provision that the management and control of these companies must be with Indians. This cap will be composite — both foreign direct investment (FDI) and foreign portfolio investment. Experts said this meant voting rights of foreign investors would not be capped at 26 per cent but they cannot have contractual agreements for control of insurance companies. The Cabinet Committee on Economic Affairs this morning gave its approval to changes in the Insurance Laws (Amendment) Bill, which will now be taken up in the current session of Parliament. “The Cabinet has cleared raising the for

COMMERCE DEPARTMENT REBUTS DIPP, PUSHES FOR FTAs

NEW DELHI: Rebutting the department of industrial policy and promotion’s (DIPP) contention that import surges due to bilateral free trade agreements (FTAs) harmed India’s manufacturing sector, the commerce department, part of the ministry to which the DIPP belongs, has said India needs to persist with the strategy of embracing such pacts to integrate itself more seamlessly to the world trade order.

In a letter to DIPP secretary Amitabh Kant, who has been vocal against FTAs and comprehensive economic partnership agreements (CEPAs), Rajeev Kher, his counterpart in the commerce department, said that instead of attacking (past) FTAs without any factual basis, it is better for the government to look ahead and use such partnerships for

RBI RAISES FII SUB-LIMIT IN GOVT BONDS BY $5 BN

Mumbai: The Reserve Bank of India (RBI) has raised the foreign institutional investors’ (FIIs’) sub-limit in government bonds by $5 billion, after the existing $20-billion limit was almost exhausted. The move is expected to stabilise yields, volatile in the recent past. The overall limit for FII investment in government bonds has been kept unchanged at $30 bn. As a result on the rise in the sub-limit, that for long-term investors like insurance and pension funds will be reduced to $5 bn. RBI said the incremental investment limit of $5 bn shall be required to be invested in government bonds with a minimum residual maturity of three years. Besides, all future investment against the limit vacated, when the current investment by these foreign inve

INDIAN OIL, BPCL, HPCL TO REVIVE PREMIUM PETROL BRANDS ON EXCISE CUT

MUMBAI: The state-run oil marketing companies (OMCs) plan to revive branded petrol such as IndianOil’s XtraPremium and Bharat Petroleum’s Speed, backed by aggressive marketing, to make the most of a significant excise duty cut announced in the budget.

Sales of branded petrol, which contain additives that enhance automobile’s performance, had plummeted in recent years as they became Rs 7-10 per litre more expensive than the regular fuel, forcing companies such as Hindustan Petroleum Corporation (HPCL), Indian Oil Corporation and Bharat Petroleum Corporation (BPCL) to pull out such products from most outlets. But with finance minister Arun Jaitley announcing a cut in central excise duty on branded petrol to Rs

David Cameron, Nick Clegg et al: sweeten us up and the votes are all yours

Vote winner: Thailand’s rulers attempt to ‘return happiness to the people’ in Bangkok Photo: AFP/Getty Images What to make of the Thai military junta offering free haircuts (in lieu of actual freedom) to the people? It’s an unconventional way to capture hearts and minds, but there’s a fine tradition in the corridors of power of generously providing bread and circuses and tax cuts and Qatari bank transfers to […]

GL Events exhibitions: The United Arab Emirates on the way to become THE hub for the Pool & SPA in the Middle East

United Arab Emirates, June 2014 – GL Events exhibitions, the organizer of Piscine Middle East exhibition has confirmed the attendance of  2 800 visitors during the second edition of Piscine Middle East held in Abu Dhabi from the 22-24th of April. Most part of these visitors was architects, developers and key buyers specialized in pool and spa industry. The event hosted visitors from 50 different countries. 88% […]

Etisalat bond may set record for tight pricing

An impending bond issue by Abu Dhabi-based telecommunications firm Etisalat may not only be the region’s largest deal so far this year, but also set a record for tight pricing as the Gulf becomes more of a mainstream investment destination. Etisalat’s debut bond will replace some of the debt used to fund its 4.2 billion euro ($5.7 billion) purchase of a majority stake in Morocco’s Maroc Telecom […]

Listening Post: Hamas Looms Over Latest Israel-U.S. Dispute

WASHINGTON — For allies who speak often of their unbreakable bonds and constant communication, this has been a season of static between Jerusalem and Washington. The latest eruption was over the announcement this week that the United States would work with a new Palestinian government that emerged from reconciliation talks with Hamas. Prime Minister Benjamin Netanyahu and other senior Israeli officials have condemned the Obama administration in […]

Aldar retires $1.25 billion debt

|By TAP Staff|Aldar Properties  announced it has repaid a US$1.25 billion bond that matured at the end of May 2014 as the company pushes ahead with a strategy to deleverage, reduce its cost of borrowing and build a strong platform for growth. The bond that matured in May 2014 carried an annual interest cost of 10.75% and it was repaid using cash and by drawing down on […]

Etisalat picks banks for bond issue

Etisalat has added four banks to the list of bookrunners for its potential debut bond, which could include dollar and euro-denominated paper of up to 12 years duration, banking sources said on Monday. The mainly state-owned company added Bank of Tokyo-Mitsubishi UFJ, Morgan Stanley, National Bank Of Abu Dhabi and Natixis as passive bookrunners, three sources said, speaking on condition of anonymity as the information is not […]

With BRIC on wall, it may be time to enter India

Although the world’s largest democracy has been hobbled by inflation, a declining currency and difficult business environment, the pro-business Bharatiya Janata Party that just won an epic election in India has engendered optimism that the country can turn around its sagging economic scenario. It’s time to increase your exposure to India’s stock market. The timing is good with equities in India perking up of late, something that […]

UAE set for more phone competition

Etisalat expects to conclude a long-delayed deal to allow competition in UAE fixed-line telecommunications services by the end of 2014, a company document states, which could threaten its dominant position in the lucrative sector. Etisalat and rival du have been unable to reach an agreement over so-called bitstream access, or network-sharing, in the United Arab Emirates, despite beginning talks in 2009 and the government being the largest […]

Etisalat Gets $500 Million Abu Dhabi Grant for Maroc Telecom Stake Buy

It’s every chief executive’s dream: make a potentially game-changing acquisition and your biggest shareholder gives you a massive no-strings-attached grant to help seal the deal. That’s the reality Etisalat enjoys after the Abu Dhabi government gave the telco a $500 million grant to complete the $5.65 billion purchase of Vivendi SA’s 53% stake in Maroc Telecom, according to a new bond prospectus. “In connection with the acquisition, the group […]

UAE expats hopeful new Indian government will reach out to NRIs

DUBAI // A wish list of 21 requests from Indian expatriates in the UAE was delivered to Narendra Modi’s office on Monday as the Bharatiya Janata Party leader was sworn in as prime minister. It included long-standing demands such as voting rights for non-resident Indians, encouraging investment in infrastructure, joint-venture incentives and exemption from restrictive taxes. “These issues relate to NRIs all over the world, not just […]

Rupee falls on intervention fears

India’s rupee fell the most in a month on speculation the central bank intervened to curb gains that threaten exports, while importers stepped up dollar purchases to pay month-end bills. The rupee has gained 2.8 percent this month in Asia’s best performance on optimism a new government will step up efforts to revive the economy. Narendra Modi will be sworn in as India’s prime minister today after […]

Abu Dhabi grants Etisalat $500m for Maroc deal

Abu Dhabi gave Etisalat a $500 million grant towards its 4.14 billion euro ($5.64 billion) purchase of 53 percent of Maroc Telecom, the company’s prospectus for a planned bond issue shows. The grant provides further evidence of the emirate’s support for its companies’ foreign expansion and could attract complaints from rival operators. Fellow Abu Dhabi-based company Etihad Airways benefited from a $3 billion interest-free loan from the […]

Pope Lays Wreath at Tomb of Zionism’s Founder

JERUSALEM — Making history for the second day running, Pope Francis laid a wreath Monday on the grave of the founder of Zionism, becoming the first pope to do so, a gesture of support to Israel after several symbolic signals the day before that lent a spiritual lift to Palestinian aspirations for sovereignty. At the request of Prime Minister Benjamin Netanyahu, Francis added to his marathon morning […]

Asian shares hit one-year high on Wall Street rally

Asian shares hit one-year high on Monday thanks to a strong session on Wall Street and a decisive win for billionaire Petro Poroshenko in Ukraine’s presidential election. MSCI’s broadest index of Asia-Pacific shares outside Japan rose 0.15 percent while Japan’s Nikkei share average gained 0.7 percent to hit one-month high. Investors took their cue from upbeat U.S. hosing data on Friday, with sales of new single-family homes […]

JP Morgan sees rupee @57 in 3 months

J.P.Morgan expects USD/INR to test 57 per dollar in the next three months as Narendra Modi’s sweeping electoral victory “is a more transformational outcome for India macro than most could have imagined” and will thus attract foreign inflows. The bank adds it expects Modi to fight inflation through administrative measures, and the focus on the RBI should reduce. As a result, J.P.Morgan recommends receiving 5-year OIS expecting […]

Putin’s comrade capitalism gets exposed

In the world’s biggest country, railways are still a route to riches. With nearly 1 billion passengers a year and $42 billion in annual sales, the state company Russian Railways is a giant commercial opportunity. At its head is Vladimir Yakunin, an old friend and long-standing ally of President Vladimir Putin. He oversees a company that strikes international deals, issues bonds to major investors and plans hugely […]

Complexities hold back sukuk’s global appeal

Islamic finance has been one of the fastest-growing sectors in global finance but the industry has yet to shake off perceptions about high costs and complexity that are holding back some issuers. Sukuk, or Islamic bonds that follow religious principles such as a ban on interest and speculation, are now a major funding tool for companies in the Middle East and southeast Asia, and are becoming increasingly […]

Saudi Telecom launches $1.3b sukuk programme

Saudi Telecom Co (STC), the Gulf’s largest telecommunications operator by market value, has established a 5 billion riyals ($1.33 billion) riyal denominated sukuk programme, it said in a bourse statement on Wednesday. The programme will be by way of a local private placement, STC said. The operator did not state when it planned to issue a sukuk, but Reuters reported in April that STC had picked three […]

Arvind Kejriwal arrested in Nitin Gadkari defamation case

New Delhi: Aam Aadmi Party convenor Arvind Kejriwal was on Wednesday taken into judicial custody by the Delhi Police in connection with the a criminal defamation complaint filed by senior Bharatiya Janata Party leader Nitin Gadkari. Kejriwal had alleged that Gadkari was one of the most corrupt leaders of India following which the BJP leader had moved court. Kejriwal refused to submit a personal bond of Rs […]

Storm fizzes out of a bottle

Coca-Cola’s Facebook page is supposed to have the biggest fan base for any brand. As per the latest tally, the page has over 82 million ‘likes’. A large part of this is obviously built up through paid promotion, but given that this is the highest number any single brand has managed to pull together on any social media platform, it is an achievement that the soft drink […]