But the veto power lies with Sonia G. (Cannot even write her full surname on this board since it is not allowed?!) Others in the cabinets are just actors waiting for `action` command from the director who is currently away. But before leaving it seems gave `cut` command. Diesel price would be raised upon director`s return as stated by one actor. Don`t understand what is the actual effective contribution by the Planning Commission except remarking about minimum income needed to live off. Feel continuance of British raj could have been better as now one has to pay tax for anything and everything and yet suffer for somebody else`s wrongdoing.
Foreign investors can up stake without RBI`s nod - - - -####
MUMBAI: Reserve Bank governor Raghuram Rajan seems to be a man on a mission. Within days of announcing a host of measures to shore up the rupee, the RBI on Friday liberalized investment norms for foreign strategic investors holding substantial stake in an Indian company to further increase their stakes in the same company without prior approval of the central bank.
The move aims to enhance dollar flows into India and reduce time taken by such investors in making investments in Indian stocks. Earlier, such investors had to seek prior permission from the RBI before increasing their stake in an Indian company. This created the risk of the news getting out early, thereby raising the stock`s price, which in turn could make the acquisition more expensive for the investor.
The move by the RBI came in the wake of the country`s efforts to bolster its foreign exchange reserves and get additional dollar flows as quickly as possible. The move is also expected to stem the weakness of the rupee,which had last week fallen to a lifetime low of 68.85 to the dollar.
"The issue of acquisition of shares under the FDI scheme by a non-resident on a recognised stock exchange has been reviewed and as a further measure of liberalization, it has been decided that a non-resident, including a non-resident Indian, may acquire shares of a listed Indian company on the stock exchange through a registered broker under the FDI scheme (given certain conditions)..." the RBI notification said.
`RBI move in right direction`
The first condition is that the non-resident investor should have already acquired and "continues to hold the control in accordance with Sebi (Substantial Acquisition of Shares and Takeover) Regulations", it said.
Market players and practitioners of regulatory issues said that the RBI move was in the right direction. "This liberalization allows strategic acquirers to make secondary investments via the stock market without prior RBI approval," said Harshal Kamdar, associate director, PwC India. "This increases the administrative facilitation for non-resident strategic investors and is indeed a welcome move," Kamdar said.
The RBI notification also said that the payment for acquiring shares through this route could be through inward remittance through the normal banking channels, debit to the NRE/FCNR account of the investor maintained with an authorized dealer or a bank, or debit to non-interest bearing Escrow account (in Indian rupees) maintained in India with a bank. It could also be paid out of the "dividend payable by Indian investee company, in which the said non-resident holds control," the central bank said. The pricing of such acquisition should be in accordance with the pricing guidelines under FEMA, it said.
Market players said that a better move would have been to allow all foreign residents to come to the Indian market through similar routes and a move like that can attract more foreign exchange into the country.
The way the Congress made the country almost bankrupt, but many people could become rich in the process, should on its own give up power. A chance could be tried with CPI-M and its allies to see how they perform on various fronts and also whether they could bring in back the economy on track.
I always believed the lack of patriotism and enthusiasm to serve the greater good is somehow linked to the culture. i.e.Too much emphasis on family life. So the average Indian somehow gives more weightage/priority to safeguarding his own family at any cost (corruption) to the Country. Look at most politicians, they are corrupt for a reason...amassing for their offsprings.
We are a weak nation , half baked and have never risen to anything. We have always laid claim to discovery of o and we have remained there since a big zero. We have allowed others to lead us - the British left and we let the Nehru family take their place. The alternative has been a bunch of dyslexic old men wearing khaki shorts and jumping around with sticks- not very encouraging. Our industrialists have thrived in the license raj and barely reached mediocrity. Our brief tryst with liberalism led by Narsimha Rao was quickly drowned by the caucus who erased all memories of the regime and credited all the good to a mediocre Sardar who followed the dictates of yeh IMF. Strange how the family destroyed any memories of Narsimaha. The political class, the administration, the crooks and the industrialist whether in the ruling or the opposition then denied we the people our right. They stole the money we gave a s tax, they stole the land owned by the country, they destroyed the institutions , the court and the police,the IAS. Very soon the press also joined the loot. Even the site where we are writing all this never took up cudgels against exploitation. We the people deserve this. Today even a khaki shorted alternative appears better than a rapacious family who have ensured that the country never does well in any field. Do not be fooled by our achievements in IT. This keeps the cream engaged in self promotion, the intelligent pursuing narrow gains- a bangalore , a gurgoan and a few other towns and a thousand engineering colleges will not stop the slide of India into the abyss of mediocracy. Look where China and east Asia has reached.
We are what we are. Nothing more but maybe a lot less than we actually think we are. Hence when the would discounts our currency, they are merely letting out air from our bloated ego