Current Affairs For Bank, IBPS Exams - 30 January, 2014

Current Affairs For Bank, IBPS Exams

In a major boost for overseas entities, the government has said that foreign portfolio investors (FPIs) will attract uniform tax rate across categories.
FPIs bring together all the three investment categories — foreign institutional investors (FIIs), their sub-accounts and qualified foreign investors (QFIs).
Besides, the tax rate for FPIs would be the same as that extended to FIIs. The new system would be especially beneficial for QFIs, who were subjected to higher tax rate earlier.
The Central Board of Direct Taxes has notified that the new class of investors, FPIs, would be treated as FIIs under the Income Tax Act, 1961.
Besides, the new class would be given a permanent registration, as against the current practice of granting approvals for one year or five years to the overseas entities seeking to invest in Indian markets.
Such registration would be permanent unless suspended or cancelled by SEBI or surrendered by the FPI.
Category I FPIs, classified as entities with lowest risk, would include foreign governments and government related foreign investors.
Category II would cover appropriately regulated broad based funds, appropriately regulated entities, broad-based funds whose investment manager is appropriately regulated, university funds and pension funds, among others. Those who are not eligible to be in the first and second set of classifications would be considered under Category III.

Mauritius, which is the single biggest source of foreign direct investment into India, does not encourage round tripping
When funds flow from one country and through several other countries, it is very difficult for anybody to identify the original source of the money; but the original fault would be with a system that allows money to get out without controls.
India and Mauritius had agreed on the contours of a ‘framework’ that would allow the ‘exchange of information’ between tax authorities in the two countries. Till a few years ago, investments to India accounted for about half of outbound investments from that country, but now it was only about 24 per cent. Meanwhile, investments flowing into the African continent had risen to about one-third of the investments from Mauritius.

India's FDI ranking has slipped by one notch to 16th position in 2013 among the top 20 global economies receiving foreign direct investment.
The foreign direct investment (FDI) into India grew by 17 per cent last year to USD 28 billion despite unexpected capital outflows in the middle of the year, according to a United Nations report.
In 2012, the country was positioned 15th in the list.
It said that foreign inflows across the world rose to levels not seen since the start of the global economic crisis in 2008.
However, uneven levels of growth, fragility and unpredictability in a number of economies and risks related to the tapering of quantitative easing could dampen the FDI recovery.
FDI flows to developing economies reached a new high of 759 billion dollars, accounting for 52 per cent, during the year.
Developed countries, however, remained at an historical low (39 per cent) for the second consecutive year.
FDI inflows to developed countries increased by 12 per cent to USD 576 billion, with such investment to the European Union increasing, while flows to the United States continued their decline. The US received USD 159 billion in FDI flows last year.
The BRICS Brazil, Russian Federation, India, China and South Africa continued to be strong performers in attracting FDI. Their current share of global FDI flows at 22 per cent is twice that of their pre-crisis level.

Virender Sehwag and Yuvraj Singh have retained their highest base price bracket of Rs.2 crore for the upcoming IPL auctions.
There are 46 capped Indian players on the list of 208 international players who have enrolled for the auction.
Kiwi sensation Corey Anderson’s base price is a relatively modest Rs.1 crore.While Michael Clarke has pulled out of the auction, Ashes hero Mitchell Johnson’s base price is Rs.2 crore.
Like Sehwag and Yuvraj, Ashish Nehra is also expected to fetch atleast Rs.2 crore or more at the auction, going by his highest bracket base price.
Dinesh Karthik, who was widely tipped to be retained by Mumbai Indians, also has a base price of Rs. 2 crore.
Yusuf Pathan is in the highest bracket too despite three poor seasons with Kolkata Knight Riders.
Praveen Kumar, Amit Mishra, Pragyan Ojha, M. Vijay, Manoj Tiwary and Robin Uthappa are the other capped Indian players in the highest bracket.

Rs.2 crore: Virender Sehwag, Yuvraj Singh, Yusuf Pathan, Dinesh Karthik, Praveen Kumar, Ashish Nehra, Pragyan Ojha, Robin Uthappa, Amit Mishra, Murali Vijay, Manoj Tiwary. Rs.1.5 crore:Zaheer Khan, Bhuvneshwar Kumar, Cheteshwar Pujara, Irfan Pathan, Ishant Sharma. Rs. 1 crore:Parthiv Patel, Mohit Sharma, Ashoke Dinda, Wriddhiman Saha.

Confident Top-ranked golfer Anirban Lahiri made his intentions clear by gaining a two-shot lead at the end of the first round of the PGTI Ahmedabad Masters
The Bangalorean’s round one exploits helped him set the KBG course record which is staging its first ever professional event. Angad Cheema, who was part of group comprising Lahiri and Rashid Khan, posted a creditable six-under-66 to lie second.