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May 26, 2015

Low inflation gives India chance to cut rates, but window could close

MUMBAI (Reuters) – A sharp fall in inflation has provided India with a window to cut interest rates for a third time this year, as the central bank prepares for a policy review on June 2.

“We are expecting a 25 basis point rate cut in June with a cautious tone, but not too hawkish,” said Shubhada Rao, chief economist with Yes Bank, looking ahead to the policy review.

May 19, 2015

India ignored warnings on foreign investor tax row -sources

MUMBAI, May 19 (Reuters) – India’s Finance Ministry could
have sidestepped a damaging multibillion-dollar tax row with
foreign investors if it had acted on regular warning letters
that officials had been sending since as long ago as September.

The warnings went unheeded, according to senior sources in
the tax department and finance ministry, until the dispute with
overseas investors over the imposition of the minimum alternate
tax (MAT), which had not previously been applied to them,
hammered the country’s stock and bond markets and dented the
business-friendly image of Prime Minister Narendra Modi.

May 13, 2015

Foreign investor group mulls Supreme Court challenge to MAT

MUMBAI/HONG KONG (Reuters) – A Hong Kong-based lobby group representing global banks and investors is considering challenging a controversial tax in the Supreme Court, escalating a row that has eroded investor confidence in Prime Minister Narendra Modi’s government.

The Asia Securities Industry and Financial Markets Association (ASIFMA) is in discussions with financial firms, lawyers and tax consultants about applying to join an existing legal action on a tax dispute, several sources aware of the talks told Reuters.

May 13, 2015

Foreign investor group mulls Supreme Court challenge to India MAT tax

MUMBAI/HONG KONG, May 13 (Reuters) – A Hong Kong-based lobby
group representing global banks and investors is considering
challenging a controversial tax in India’s Supreme Court,
escalating a row that has eroded investor confidence in Prime
Minister Narendra Modi’s government.

The Asia Securities Industry and Financial Markets
Association (ASIFMA) is in discussions with financial firms,
lawyers and tax consultants about applying to join an existing
legal action on a tax dispute, several sources aware of the
talks told Reuters.

May 7, 2015

Falling out of love, foreign funds dump Indian shares and bonds

MUMBAI (Reuters) – Overseas funds chalked up their biggest single-day sales of Indian shares and bonds in 1-1/2 years, fuelling concerns that an emerging market darling is losing its allure over growing anger over a tax on foreign investors.

The net sales of around $630 million on Wednesday, preliminary data showed, is the biggest since foreign investors sold around $877 million on Jan. 27 last year, a time of intense worry over higher U.S. interest rates.

Apr 7, 2015

RBI keeps rates on hold, affirms “accomodative stance”

MUMBAI (Reuters) – The Reserve Bank of India (RBI) kept interest rates on hold at 7.50 percent on Tuesday, choosing to wait longer to assess inflationary pressures before making its next move, and to give banks more time to adjust lending rates to reflect previous rate cuts.

Most of the 40 economists surveyed by Reuters had expected the RBI to keep the key lending repo rate unchanged at Tuesday’s policy review.

Apr 7, 2015

India cenbank keeps rates on hold, affirms “accomodative stance”

MUMBAI, April 7 (Reuters) – India’s central bank kept
interest rates on hold at 7.50 percent on Tuesday, choosing to
wait longer to assess inflationary pressures before making its
next move, and to give banks more time to adjust lending rates
to reflect previous rate cuts.

Most of the 40 economists surveyed by Reuters had expected
the Reserve Bank of India (RBI) to keep the key lending repo
rate unchanged at Tuesday’s policy review.

Mar 30, 2015

India proposes platform to help start-ups raise cash at home

MUMBAI (Reuters) – India’s market regulator is considering an alternative investment platform targeted at the country’s booming internet start-ups, relaxing some key requirements to encourage them to list at home.

In a discussion paper published on Monday, Securities and Exchange Board of India said it would relax rules, but would also limit fundraising on the platform from institutions and wealthy investors – as opposed to retail investors, who have flocked to internet listings – given what it said were the risks involved.

Mar 4, 2015

RBI surprises with early post-budget rate cut

MUMBAI (Reuters) – The Reserve Bank of India (RBI) lowered its policy repo rate by 25 basis points to 7.5 percent on Wednesday, its second inter-meeting cut this year on the back of easing inflation and what it said was the “weak state” of parts of the economy.

Although markets had broadly expected the RBI to cut rates again after its surprise January easing, few had expected a move as early as this week, just days after the government presented its annual budget for the coming fiscal year.

Mar 4, 2015

India’s central bank surprises with early post-budget rate cut

MUMBAI (Reuters) – India’s central bank lowered its policy repo rate INREPO=ECI by 25 basis points to 7.5 percent on Wednesday, its second inter-meeting cut this year on the back of easing inflation and what it said was the “weak state” of parts of the economy.

Although markets had broadly expected the Reserve Bank of India to cut rates again after its surprise January easing, few had expected a move as early as this week, just days after the government presented its annual budget for the coming fiscal year.

    • About Rafael

      "Rafael Nam is the Chief Markets Correspondent for India, overseeing markets and chat room coverage across stocks, debt and fixed income. He has recently started tweeting at @rafaelnam"
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