FIPB may be allowed to clear foreign buys in pharma companies

Source: The Economic Times, May 16, 2012

New Delhi: The Department of Pharmaceuticals has mooted a proposal to allow the country’s foreign investment approving body to continue clearing stake purchases by foreign firms in Indian drug companies, as it seeks to end the uncertainty that has stalled the investment plans of MNCs and foreign investors in the sector.

“The Department of Pharmaceuticals has sought approval from the Prime Minister’s Office. The PMO has forwarded the proposal to both the Department of Industrial Policy and Promotion (DIPP) and health ministry for their views,” said a government official familiar with the development.

Registration mandatory for investment overseas

Source: The Hindu Business Line, May 14, 2012

Mumbai: Core investment companies (CICs) making overseas investment in the financial sector will require a Certificate of Registration, said the Reserve Bank of India.

Currently, CICs with an asset size of less than Rs 100 crore are exempt from registration with the RBI. Investment in the non-financial sector by such exempted CIC, however, will not require CoR.

Call to make pharma code mandatory

Source: Business standard, May 14, 2012

Chennai: A parliamentary standing committee has asked the government to make the uniform code of conduct for pharmaceutical marketing mandatory to keep cost of medicines in check. The panel on the ministry of health and family welfare, headed by Rajya Sabha MP Brajesh Pathak, has also advised the pharmaceuticals department to ensure the involvement of the health and family welfare ministry in the implementation.

Foreign trade policy in early June to have sops for select sectors

Source: The Economic Times, May 11, 2012

NEW DELHI: The foreign trade policy for the on-going fiscal will be announced in the first week of June and is likely to have sops for sectors that need support to tide through the demand slowdown in the global market.

Commerce and industry minister Anand Sharma has said that he will carry out a stock-taking exercise with all export promotion councils on May 17 following which a decision on government intervention in specific sectors will be taken.

“After the stock taking exercise is complete, the government will intervene in sectors which require support,” Sharma said in a press statement, adding that the foreign trade policy or FTP for the year will be announced in the first week of June.

The minsiter said the uncertainty in the EU zone was making things hard for India’s exporters which was now getting reflected in the export numbers. “The slow down in export growth in April in the backdrop of the economic crisis in the Euro Zone is also a worrisome development,” Sharma said.

Reserve Bank of India further eases norms on foreign currency deposits

Source: The Economic Times, May 09, 2012

Reserve Bank of India eased restrictions on the usage of foreign currency deposits on Wednesday, just days after its move to relax the interest rate ceiling on such deposits.

The Reserve Bank of India has allowed banks to use funds from foreign currency non-resident deposits as collateral against lending to related local residents.

New procedure by DGFT to speed up cotton exports

Source: Business standard, May 09, 2012

Mumbai: To speed applications from interested cotton exporters, the Directorate General of Foreign Trade (DGFT), under the Ministry of Commerce, has modified the procedure for obtaining registration certifications (RCs).

As against the earlier procedure of personal visits to the respective departments dealing in RCs, DGFT has mandated sending of all documents and associated papers through an e-mail. The purpose is to keep queries, if any, ready by the time an exporter sends hard copy of the applications and other relevant papers.

Coal regulator to have pricing powe

Source: Business standard, May 09, 2012

New Delhi: The government plans to empower the regulator being set up for the coal sector with the authority to decide pricing. The proposal, if implemented, would deprive state-owned Coal India (CIL) the freedom it currently enjoys in fixing and revising prices of its output.

Bid to bridge widening export-import gap; exports sops may come back

Source: The Economic Times, May 09, 2012

NEW DELHI: Two months ago, with fiscal consolidation on his mind, Finance Minister Pranab Mukherjee scratched out export subsidies from his budget. Today, worried by a widening gap between imports and exports, the government is thinking of bringing back sops for exporters.

These subsidies are likely to include discounted interest rates, and product- and market-linked incentives. The government believes these could boost exports and help narrow a trade deficit which has expanded to 9% of GDP.

FM removes draconian powers on excise, customs duty cases

Source: Business standard, May 08, 2012

New Delhi: Buckling under pressure from various quarters, the government on Monday withdrew the harsh provisions relating to excise and customs duty evasion cases. In Finance Bill 2012-13, it had earlier proposed to make certain excise and customs duty evasion cases non-bailable until the court had heard the public prosecutor.

Finance Minister Pranab Mukherjee on Monday withdrew these provisions, which many members of Parliament had termed draconian and similar to those under the old Prevention of Terrorist Activities Act.

Foreign bank arms may get tax relief

Source: The Economic Times, May 08, 2012

MUMBAI: In an effort to encourage foreign banks to incorporate in the country, finance minister Pranab Mukherjee on Monday proposed to limit tax liability when they convert from branches into subsidiaries.

The Reserve Bank of India is in the process of formulating a scheme for local incorporation of Indian branches of foreign banks to ring fence local depositors from external shocks.