SECTORS ALERT – 28.05.2014
* BANKING: The Reserve Bank of India has advised non-banking financial companies that all
transactions, including payment of interest on deposits and charging of interest on advances, should be
rounded off to the nearest rupee. RBI released operational guidelines for The Depositor Education and
Awareness Fund Scheme, and asked banks to calculate balances in all accounts falling under the scheme,
along with interest accrued as on May 23, and transfer the amount to the fund on Jun 30. RBI Governor
Raghuram Rajan is expected to stay on as governor with the new government willing to work with him.
RBI has cancelled the certificate of registration of three Kolkata-based non banking financial companies.
* ECONOMY: Law Minister Ravi Shankar Prasad said that Justice Shah will head a team unearthing black
money. Finance Minister Arun Jaitley has asked his officials to identify three-four key issues on which
action can be initiated over the next few months. Akali Dal will step up its demand for a special package
for Punjab to overcome financial stress.
* FMCG: Cadbury has recalled two products--Cadbury Dairy Milk hazelnut and Cadbury Dairy Milk roast
almond--in mainly Muslim Malaysia after traces of pig DNA were found during a routine check for non- halal substances.
* GOLD: Government is expected to ease restrictions on gold imports and a decision is expected soon.
* HOSPITALITY: Restaurant chain Olive Bar & Kitchen is looking to raise 1.8-2.0 bln rupees from private
equity investors to fund expansion plans.
* IMPORTS: The RBI said importers can book forward contracts up to 50% of the eligible limit under the
past performance route.
* INSURANCE: HDFC Life has got permission to set up a subsidiary in West Asia from the Insurance
Regulatory and Development Authority.
* MONSOON: The southwest monsoon is likely to move to Kerala coast by Jun 28-30, a few days ahead of India Meteorological Department's forecast, private weather forecaster Skymet Chief Executive Officer
Jatin Singh said.
* POLITICS: A magisterial court today ordered "forthwith" release of Aam Aadmi Party Convenor Arvind
Kejriwal after he, on the Delhi High Court's advice, furnished a personal bail bond to the lower court.
* POWER: Karnataka's Energy Minister D.K. Shivakumar said Karnataka Power Transmission Corp plans
to take up 244 new works for around 51 bln rupees this year to improve the power situation in the state.
* PUBLIC SECTOR: Securities and Exchange Board of India wants the government to pare its holdings in
public sector undertakings to below 75%. Finance ministry officials have proposed divestment through
follow-on offers and open offer for sale to increase market float of state-run companies.
* RETAIL: Minister of State for Commerce Nirmala Sitharaman said the government is not in favour of
foreign direct investment in multi-brand retail at present.
* REAL ESTATE: Adani Group's real estate arm Adani Realty announced launch of luxury residential
project in Mumbai's Four Bungalows area.
* ROADS: Road transport and highways department has set the target of awarding 8,500 km of highways
and complete construction of 3,900 km in this financial year.
* STOCK EXCHANGES: Madras Stock Exchange will lose its licence to trade in stocks and shares post
May 30. The BSE has said the government should allow leading global bourses to hold up to 49% stake in
Indian bourses to enhance competitiveness of domestic capital markets. * TELECOM: Vodafone India's Chief Executive Officer Marten Pieters said he expects the new
government to reduce financial burden on the sector.
* BANKING: The Reserve Bank of India has advised non-banking financial companies that all
transactions, including payment of interest on deposits and charging of interest on advances, should be
rounded off to the nearest rupee. RBI released operational guidelines for The Depositor Education and
Awareness Fund Scheme, and asked banks to calculate balances in all accounts falling under the scheme,
along with interest accrued as on May 23, and transfer the amount to the fund on Jun 30. RBI Governor
Raghuram Rajan is expected to stay on as governor with the new government willing to work with him.
RBI has cancelled the certificate of registration of three Kolkata-based non banking financial companies.
* ECONOMY: Law Minister Ravi Shankar Prasad said that Justice Shah will head a team unearthing black
money. Finance Minister Arun Jaitley has asked his officials to identify three-four key issues on which
action can be initiated over the next few months. Akali Dal will step up its demand for a special package
for Punjab to overcome financial stress.
* FMCG: Cadbury has recalled two products--Cadbury Dairy Milk hazelnut and Cadbury Dairy Milk roast
almond--in mainly Muslim Malaysia after traces of pig DNA were found during a routine check for non- halal substances.
* GOLD: Government is expected to ease restrictions on gold imports and a decision is expected soon.
* HOSPITALITY: Restaurant chain Olive Bar & Kitchen is looking to raise 1.8-2.0 bln rupees from private
equity investors to fund expansion plans.
* IMPORTS: The RBI said importers can book forward contracts up to 50% of the eligible limit under the
past performance route.
* INSURANCE: HDFC Life has got permission to set up a subsidiary in West Asia from the Insurance
Regulatory and Development Authority.
* MONSOON: The southwest monsoon is likely to move to Kerala coast by Jun 28-30, a few days ahead of India Meteorological Department's forecast, private weather forecaster Skymet Chief Executive Officer
Jatin Singh said.
* POLITICS: A magisterial court today ordered "forthwith" release of Aam Aadmi Party Convenor Arvind
Kejriwal after he, on the Delhi High Court's advice, furnished a personal bail bond to the lower court.
* POWER: Karnataka's Energy Minister D.K. Shivakumar said Karnataka Power Transmission Corp plans
to take up 244 new works for around 51 bln rupees this year to improve the power situation in the state.
* PUBLIC SECTOR: Securities and Exchange Board of India wants the government to pare its holdings in
public sector undertakings to below 75%. Finance ministry officials have proposed divestment through
follow-on offers and open offer for sale to increase market float of state-run companies.
* RETAIL: Minister of State for Commerce Nirmala Sitharaman said the government is not in favour of
foreign direct investment in multi-brand retail at present.
* REAL ESTATE: Adani Group's real estate arm Adani Realty announced launch of luxury residential
project in Mumbai's Four Bungalows area.
* ROADS: Road transport and highways department has set the target of awarding 8,500 km of highways
and complete construction of 3,900 km in this financial year.
* STOCK EXCHANGES: Madras Stock Exchange will lose its licence to trade in stocks and shares post
May 30. The BSE has said the government should allow leading global bourses to hold up to 49% stake in
Indian bourses to enhance competitiveness of domestic capital markets. * TELECOM: Vodafone India's Chief Executive Officer Marten Pieters said he expects the new
government to reduce financial burden on the sector.
