2. FII limit for g-secs, corp bonds up $5b The government has raised the ceiling for investment in government and corporate bonds by foreign funds. This will ease pressure on banks to raise rates with rising demand of loans to build roads, ports and power plants. The Finance Minister revised the cap for investment by foreign portfolio investors in government securities from $ 5 billion to $10 billion, and for corporate bonds from $15 billion to $ 20 billion. The incremental limit of $5 billion can be invested only in government securities with a residual maturity of over five years.
3. RIL lifts veil of secrecy over arms, but only just Reliance Industries Limited(RIL) ,India's largest private sector company for the first time in its 33 years history .RIL made public accounts of 94 of its 96 subsidiaries ,posting their annual reports or key financial statement on its website. Attempt to become more transparent. Size-RIL annual report does not give detail about subsidiaries. SECRECY- they are secret about 12 subsidiaries INTRCACY-it is impossible to track some transaction to their end points.
4. Bank deposits in Sept see highest rise this year Bank deposits have grown fastest in the Sept after most banks revised interest rates on their term deposits. Total deposits rose by Rs33,581 crore. Deposits have risen 14.5%,credit has risen by 19%. With higher inflation and low interest rates ,saving capacity had come down. Investor were looking at alternate channels of investments. This is reason for increase in deposits.
5. Govt cuts gross borrowing by Rs10,000cr to4.47 lakhcr The government scaled down its gross borrowing for the current financial year by Rs 10,000 crore to Rs4.47 lakhcrore for the current fiscal. Trimming of the borrowing plan would leave the desired resources for the private sector. The government has already raised over Rs2.6 lakhcrore this fiscal. The government has earned over rupees one lakh from sale of 3G telecom and broadband licences. Buoyancy in the tax collection has provided further comfort to the govt.
6. Sandstone , Sequoia buy into Micromax PE players sandstone capital and Sequoia capital have picked up a minority stake in India’s largest domestic handset maker, Micromax for about Rs200 crore. Acquired less than 10% stake in the company. Rs 200 crore deal for a minority stake could be pre-IPO placement by handset maker.
