Banking and Financial News – 14 May 2014

CCI Probe against Google (The Hindu) – The Fair Trade Watchdog, Competition Commission of India (CCI) has ordered a probe against Google for alleged abuse of its dominant position in the online search advertising space.

China’s anti-dumping measures on Indian optical fibres (The Hindu) – China said it would slap provisional anti-dumping measures on single-mode optical fibres imported from India, alleging that Indian companies were dumping them in the Chinese market.

RBI Panel for diluting govt stake in public sector banks to below 50% (The Hindu) – An RBI panel headed by ex-Chairman of Axis Bank, P J Nayak, said governance at the 26 public sector banks (PSBs) suffered due to several externally imposed constraints like dual regulation by RBI & Finance ministry and external vigilance like Central Vigilance Commission (CVC) and Comptroller and Auditor General (CAG). Among other, the Committee recommended:

• Reduction in Govt. stake in PSBs to below 50%

• Govt. should distance itself from several governance functions.

• Repeal of the Bank Nationalisation Acts of 1970 & 1980 along with SBI Act and SBI (Subsidiary Banks) Act.

• All Banks should be incorporated under the Companies Act.

• A Bank Investment company to be constituted where govt. holding in all the banks should be transferred.

• Category of Investors “Authorised Bank Investors (ABI)” be permitted 20% equity stake without regulatory approval or 15% if it has a seat on the Bank Board.

• All other to be permitted up to 10%

Important Financial Terms in the News explained.

Dumping - If a company exports a product at a price lower than the price it normally charges on its own home market, it is said to be “dumping” the product.

We build too many walls and not enough bridges. ~ Isaac Newton

Courtesy : The Hindu