RBI Wants ARCs To Be Allowed To Buy Mutual Fund Debt; Masala Firms Inspected, Told To Make Changes

RBI Wants To Allow Asset Reconstruction Companies To Buy Mutual Fund Debt

The Reserve Bank of India is in discussions with the Securities and Exchange Board of India to allow mutual funds to sell their debt to asset reconstruction companies (ARCs), the banking regulator has informed debt recast firms, the Business Standard reported.

At present, ARCs cannot purchase debts from mutual funds. Last week, the RBI’s deputy governors along with executive directors and other officials, met the chief executives of ARCs. This development follows the recommendations of an RBI committee, led by Sudarshan Sen, which was formed to review the functioning of ARCs. The committee submitted its report in November 2021. Among its key recommendations was allowing mutual funds to sell debts to ARCs. Read more

Premium UK EVs In Exchange For Indian Professionals 

UK, India Make India and the UK are inching closer to sealing a free trade agreement after negotiations finally made some breakthroughs, Livemint reported. The discussions have been on since January 2022.

Two points of disagreement are on the verge of being resolved. These are that the UK may allow Indian professionals to work there under certain conditions. In exchange, India may allow the import of premium-category electric vehicles, subject to a fixed cap. The Union commerce ministry has placed the finalisation of the FTA at the top of its 100-day post-poll agenda.  
If negotiations proceed smoothly, the FTA is expected to be signed before the UK elections next January. More here

Telecom Dept To Notify Rules On Call Interception, Biometric Data

The Department of Telecommunications aims to notify the rules under the Telecommunications Act, 2023 within 100 days of the new government taking charge, the Economic Times reported.
 
The rules will streamline the regulatory framework and ensure compliance, and relate to spectrum allotment, including satellite communications, interception of calls and messages as well as collection of biometric data, for which processes need to be defined. A key aspect is biometric identification of a user, which has been made mandatory under the Act. As per experts, the rules should clearly specify details so that customer data is not misused as multiple intermediaries may be involved in collection and processing of such sensitive information. More here 

Everest, MDH Masala Facilities Inspected, Changes Recommended

Indian authorities have reached out to Everest and MDH Masalas, inspected their manufacturing units and suggested corrective measures, the Economic Times reported. The two brands have been banned in Singapore and Hong Kong over the presence of ethylene oxide.

The report quoted an official as saying the industry has taken the matter very seriously and is ensuring they are fully compliant with the maximum residue limit. The official said upon testing, some export samples violated norms in the two countries, based on which corrective measures were suggested. The Spices Board of India, the nodal agency for spices exports, had made testing for ETO mandatory for all spices being exported to Hong Kong and Singapore. More here 

SEBI Amends Takeover Regulations, Cracks Down On Measures To Disrupt Stock Price

The Securities and Exchange Board of India has made significant amendments to the takeover regulations that could potentially lower the cost of mergers and acquisitions for India Inc, the Business Standard reported.

The market regulator has said the disruption in stock prices following news reports or leaks of sensitive information will be excluded while computing the open offer price. This amendment is part of Sebi’s new rumour verification framework that comes into effect on June 1. Industry players are still awaiting a relatively detailed framework in this regard. Legal experts believe that these changes will reassure companies that premature leaks will not affect stock prices and jeopardise deals. More here

Gadkari Pitches For Flex Fuel Hybrids Instead Of EV Mantra

Union Road Transport and Highways Minister Nitin Gadkari has made a strong pitch to cut goods and services tax on ethanol-powered cars, pitching 2-3 per cent lower tax than gasoline-powered vehicles for flex fuel cars, and 13-14 per cent lower tax for flex fuel hybrids, Livemint reported.

In a letter to Finance Minister Nirmala Sitharaman in October, Gadkari said flex fuel hybrids that use 100 per cent ethanol pollute even less than battery EVs. Gadkari's letter compares battery EVs and ethanol hybrids on 'well-to-wheel' emissions, or the total emissions from extracting fuel to using it in a vehicle. This is in contrast to tailpipe emissions, where EVs score ahead of others.  Currently, hybrid cars attract GST of 28 per cent. More here