Shyamala Gopinath Committee for KVP









Shyamala Gopinath Committee for KVP


The Shyamala Gopinath Comrnittee constituted on Small Savings Schemes has submitted its report to the Government. Major recommendations of the committee were:- (i) to reduce/abolish agent`s commission except Manila Pradhan Kshetriya Bachat Yojana (MPKBY) agents to restrict management cost (ii) secondary market yields on Central Government Securities of comparable maturities should be the benchmarks for the interest on various small savings instruments and should be reset every 1s1 April (iii) Committee recommended to reduce minimum share for States from 80% to 50% against net collection and recommended that amount received on redemption of Central/State Governments securities should be reinvested between Centre and States in the ratio of 50:50.

After detailed deliberation and in light of views received from State Governments, various Departments of Central Government and Agent`s Association, most of the recommendations of the Committee are being implemented.

In view of developments observed by the Committee in 2011 on AML/CFT front the KVP was recommended to be discontinued by the Committee. KVP has been re-notified by the Government on 23-9-2014. Under the re-notified KVP the investor has to undergo the Know Your Customer (KYC) modalities at Post Office or Bank.

This was stated by Shri Jayant Sinha, Minister of State in Ministry of Finance in written reply to a question in the Lok Sabha today.

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Allowing Internationa System to Settle Bonds

The Reserve Bank of India (RBI) is working towards allowing settlement of Government bonds in the International systems like the Euroclear. International systems like Euroclear and Clearstream are international settlement platforms for global securities amongst themselves. International trading and settlement enables foreign investors to transact in Indian Securities but settle in dollars or other international currencies, thereby increasing access and flexibility in order to widen the investor base.

This was stated by Shri Jayant Sinha, Minister of State in Ministry of Finance in written reply to a question in the Lok Sabha today.

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Frauds Committed by E-Commerce
            Government have been receiving complaints regarding the frauds committed by             e-commerce companies. The number of complaints registered and number of complaints on which action has been taken during the last two years, State-wise is as under:
SI. No.

State

No. of complaints registered

No. of complaints on which action taken

1.

Maharashtra

07

07

2.

Karnataka

01

01

3.

Rajasthan

01

01
Presently there is no proposal for a separate regulatory framework for e-commerce under consideration. Directorate of Enforcement conducts investigations under Foreign Exchange Management Act, 1999 (FEMA) and Prevention of Money Laundering Act, 2002 (PMLA). Such investigations are carried out as and when any credible information, including those relating to frauds committed by e-commerce companies, is received. Action under PMLA can be initiated in appropriate cases where a case of fraud by an e-commerce company is registered by some other Law Enforcement Agency. Keeping in view the increased number of online fraud/cheating cases, the Government has also initiated steps for incorporating sufficient provisions for protection of consumers of online shopping/e-commerce under Consumer protection Act, 1986.
This was stated by Shri Jayant Sinha, Minister of State in Ministry of Finance in written reply to a question in the Lok Sabha today.
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Disinvestment
As per the Action Plan of 2014-15 on Disinvestment*, the following CPSEs have been approved for disinvestment:
SI. No.

Name of CPSE

Proposed Disinvestment

0

Steel Authority^ India (SAIL)

5%

ii)

Rashtriya Ispat Nigam Ltd (RINL)

10%

iii)

Hindustan Aeronautics Ltd (HAL)

10%

iv)

Oil and Natural Gas Corporation Ltd. (ONGC)

5%

v)

Coal India Ltd. (CIL)

10%

vi)

National Hydroelectric Power Corporation (NHPC)

11.36%**

vii)

Power Finance Corporation (PFC)

5%

viii)

Rural Electrification Corporation (REC)

5%

ix)

Container Corporation of India

-    5%

x)

SJVNL

10%


MOIL

10%

* In addition, some loss-making CPSEs may also be disinvested in 2014-15. However, they have not yet been identified.
** As per the Action Plan on Disinvestment, proposed disinvestment was 10%, which has been increased to 1 1.36% at the Cabinet Committee on Economic Affairs approval stage.
The disinvestment target and the actual receipts during the last four years is shown in the table below:
Table 1: Disinvestment Target and Actual Receipts in last four years (in Rs. crore)
.

Year

Target

Actual Receipts


i.

2010-11

40,000

22,144.21

2.

2011-12

40,000

13,894.05

3.

2012-13

30,000

23,956.81

4.

2013-14

40,000

15,819.46

Stock price movements are impacted by many factors including: (i) capital flows; (ii) global and domestic economic trends; (iii) financial performance of individual companies; (iv) industry trends and competition; and (v) management and operational changes. As a result, it is difficult to identify specific causes for stock price movements.
This was stated by Shri Jayant Sinha, Minister of State in Ministry of Finance in written reply to a question in the Lok Sabha today.
***
Fll Investment in Stock Exchanges





 Total net investments (equity and debt) made by Foreign Institutional Investors (Flls)/Foreign Portfolio Investors (FPIs) in India during the financial year 2013-14 is Rs. 51,649 crores.

 Total net investments (equity and debt) made by Flls/ FPIs in the India during the financial year 2014-15 (till November 27, 2014) is Rs.184,757 Crore

The quantum of net investments (equity and debt) made by (Flls)/ (FPIs) in.the India during the first two quarters of the financial year 2014-15 is as follows:
INR crores

Quarters

Equity

Debt

Total

First Quarter (April 2014 to June 2014)

37,600

27,302

64,902
Second Quarter (July 2014 to September 2014)

23,643

55,508

79,151

Total

61,243

82,810

144,053

As per the new SEBI FPI Regulations, 2014 the individual and aggregate investment limits for the Registered Foreign Portfolio Investors (RFPIs) shall be below 10% (per cent) or 24% (per cent) respectively of the total paid-up equity capital or 10% (per cent) or 24% (per cent) respectively of the paid-up value of each series of convertible debentures issued by an Indian company. Further, RFPI investments are subject to composite sectoral cap under the FDI policy.


This was stated by Shri Jayant Sinha, Minister of State in Ministry of Finance in written reply to a question in the Lok Sabha today.


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