Newsletter dated 7th April,2015

1. THOUGHT OF THE DAY
“The starting point of all achievement is desire…”
ECONOMIC UPDATES
 The government is likely to launch its record asset-sale plan for the current
fiscal on Wednesday, seeking to raise about Rs 3,500 crore this fortnight
from the divestment of stakes in Rural Electrification Corp. Ltd (REC) and
Power Finance Corp. Ltd (PFC).
 RBI had withdrawn the regulatory forbearance for restructured loans from
April 1, 2015. As per the rule, from April 1, all restructured loans will have
to be classified as non-performing assets (NPAs) attracting a provisioning
of 15% of the loan outstanding, from the earlier requirement of 5%. Banks
have to set aside money as buffer for all loans called provisioning in
banking parlance.
SEBI/CORPORATE UPDATES
 Regulator SEBI will soon put in place new norms for changes in
constituents of the key stock market indices, including Sensex and Nifty, as
it frames a separate mechanism for regulating the index providers. The
index operators, which include subsidiaries of stock exchanges and
independent entities such as S&P, currently do not come under SEBI's
direct regulatory purview and the new norms would also include a 'code of
conduct' for them while mandating more disclosures and greater
transparency while including or excluding a stock from the indices.
 Finance Minister Arun Jaitley today promised a "reasonable compliance
window" under the new black money law for persons with overseas funds
to come clean, even as he asserted that targetting undeclared assets cannot
be termed as 'tax terrorism'.
RBI/TAX LAW UPDATES
 Vide Notification RBI/2014-15/539 DBR.No.BP.BC.85/21.04.048/2014-15
dated April 6, 2015 notified Prudential Norms on Income Recognition,
Asset Classification and Provisioning pertaining to Advances –
Refinancing of Exposures to Borrowers.
 Vide Notification RBI/2014-15/538 DBR.No.BP.BC.84/21.04.048/2014-15
decided that in cases where, in the assessment of the banks, the
implementation of the project has been stalled primarily due to
inadequacies of the existing promoters and a subsequent change in the
ownership of the borrowing entity has been effected, banks may permit
extension of DCCO up to a further period of two years.
MARKET UPDATES
SENSEX
28,396.51 -124.15
CNX NIFTY
8,619.45 -40.45
DOLLAR/ RUPEE
62.34 0.15
MCX SILVER
38,170.00 821.00
MCX GOLD
26,964.00 -33.00
MCX CRUDE OIL
3,258.00 221.00
Dow Jones Industrial
average
17,880.85 117.61
Nasdaq Composite
4,917.32 30.38
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