Rafael's Feed
Sep 2, 2015

Foreign investors welcome India’s retreat in MAT tax row

MUMBAI, Sept 2 (Reuters) – Foreign portfolio investors on
Wednesday welcomed India’s decision to scrap efforts to make
foreign funds pay tax on past profits, but they remained wary of
the country’s unpredictable tax regime.

A high-profile row with foreign investors had erupted late
last year following the retrospective imposition of the minimum
alternative tax (MAT) on funds, including Aberdeen Asset
Management.

Sep 1, 2015

Indian consumers offer a ray of hope after glum economic data

MUMBAI (Reuters) – The rescue of India’s economy may come down to the spending power of people like 26-year-old Avni Rambhiya.

A financial analyst, she recently received a pay rise, is eating out more often and has stopped bringing home-cooked meals to the office in a tiffin, the traditional Indian lunchbox.

Aug 4, 2015

RBI holds rates, leaves door open for more easing

MUMBAI (Reuters) – The Reserve Bank of India (RBI) kept its policy rate on hold at 7.25 percent on Tuesday, as widely expected, while leaving the door open to ease further depending on the inflation outlook and how swiftly banks lower their lending rates.

Read what experts are saying about the RBI’s decision to hold rates, click here

Aug 4, 2015

India central bank holds rates, leaves door open for more easing

MUMBAI, Aug 4 (Reuters) – India’s central bank kept its
policy rate on hold at 7.25 percent on Tuesday, as widely
expected, while leaving the door open to ease further depending
on the inflation outlook and how swiftly banks lower their
lending rates.

The Reserve Bank of India (RBI) also said government
economic reforms and the timing of any increase in U.S. interest
rates would be key factors that will determine whether the
central bank cuts rates for a fourth time this year.

Aug 3, 2015

As RBI holds rates steady, companies’ debt burdens weigh heavily

MUMBAI (Reuters) – When Hindustan Construction Ltd (HCC) was building a bridge in 2008 to transform the congested commute in Mumbai, its stock was at a record high as low interest rates had sparked a construction boom.

Today, like many small- and mid-sized Indian firms, Hindustan Construction is struggling, after a borrowing binge that saw its debt surge from $674 million in fiscal year 2007/2008 to $1.6 billion in 2014/15, according to Thomson Reuters data.

Aug 2, 2015

As India c.bank holds rates steady, companies’ debt burdens weigh heavily

MUMBAI, Aug 3 (Reuters) – When India’s Hindustan
Construction Ltd (HCC) was building a bridge in 2008
to transform the congested commute in Mumbai, its stock was at a
record high as low interest rates had sparked a construction
boom.

Today, like many small- and mid-sized Indian firms,
Hindustan Construction is struggling, after a borrowing binge
that saw its debt surge from $674 million in fiscal year
2007/2008 to $1.6 billion in 2014/15, according to Thomson
Reuters data.

Jul 15, 2015

In shadow of Chinese rout, India fights illegal “dabba” market

MUMBAI, July 16 (Reuters) – A crack team of regulators and
specially trained state police are spearheading India’s efforts
to stamp out the country’s “shadow” market in shares and
commodities, turning up the heat on backstreet traders who
threaten the broader financial system.

So-called “dabba” trading has been a headache for regulators
for years, but a government push to crack down on the black
economy and clean up the Indian market for retail investors has
given a fresh boost to efforts to stamp out the
multi-billion-dollar parallel system, which bypasses market
rules and taxes.

Jul 8, 2015

India’s two-speed inflation strains country’s indebted companies

MUMBAI (Reuters) – Indian firms battling towering debts are calling for more interest rate cuts as they worry the central bank is tying monetary policy too much to consumer inflation and ignoring the longest streak of wholesale price falls on record.

Reserve Bank of India (RBI) Governor Raghuram Rajan in 2014 started using consumer prices as the bank’s key inflation measure to focus policy on ordinary Indians. This year, the link between consumer prices and monetary policy became even stronger as the RBI formally adopted an inflation-targeting regime.

Jun 23, 2015

SEBI approves trading platform for start-ups

MUMBAI (Reuters) – The capital market regulator plans to set up an alternative trading platform for internet startups, relaxing some of its requirements in an effort to encourage these companies to list at home instead of overseas.

The Securities and Exchange Board of India (SEBI) said the Institutional Trading Platform will be open to a broad range of technology companies, according to a statement released after its quarterly board meeting.

Jun 21, 2015

Food price surge puts Rajan on the back foot

AURANGABAD, India (Reuters) – Prices of many foodstuffs are surging in India, despite a good start to monsoon rains – an unexpected boon for wholesalers, but a major headache for the central bank and a government hoping for its help to reboot the economy.

Reserve Bank of India (RBI) Governor Raghuram Rajan has cut interest rates three times this year to boost growth, but he has since warned he will not cut again if poor rains drive up prices and threaten his inflation target.

    • About Rafael

      "Rafael Nam is the Chief Monetary Policy and Markets Correspondent for India, overseeing coverage of the central bank, all domestic markets, and private equity. He was previously posted in Hong Kong and Seoul."
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