Banking and Financial News – 18 June 2014

Arun Jaitley unveils anti-inflationary measures to contain price rise (Mint)

• State governments asked to crack down on hoarders and fixing minimum export prices for onions and potatoes to discourage exports and increase local supply.

• The wholesale price inflation (WPI) accelerated in May at the quickest pace since December.

• States have been asked to delist certain items, which are usually procured through agriculture produce marketing committees (APMC), so that they come into the open market.

Former Chief Justice RC Lahoti chosen arbitrator in Vodafone tax dispute (Mint) - India has named former Supreme Court chief justice R.C. Lahoti as the arbitrator in the Rs.20,000-crore tax dispute with Vodafone Group Plc. The tax dispute between the Indian government and Vodafone arose over the capital-gains tax related to the telecom company’s 2007 acquisition of Hutchison Whampoa Ltd’s Indian telecom assets.

SEBI floats ‘crowdfunding’ rules. (The Hindu)

‘Crowdfunding’ is collection funds through web-based platforms and social networking sites. Crowdfunding is emerging as an innovative way of raising funds by pooling money from people through Internet, but lack of regulations for such activities has given rise to concerns of possible defrauding of investors. Among others, social and professional networking websites like Facebook, LinkedIn and Twitter have been used for such fund-raising exercises, while money-pooling also takes place on some dedicated websites for such activities.

• Crowdfunding platforms can be provided only by Sebi-registered entities.

• Companies can raise up to Rs 10 crore in a year through this route.

• Only ‘Accredited investors’ be allowed to participate in crowdfunding activities.

• Only those entities would be allowed to raise funds through crowdfunding which are not associated with a business group having turnover of more than Rs 25 crore. Entities with an established business, already listed on an exchange or being in existence for four years or more would be barred too.

• Those engaged in real estate and financial sector businesses would also be barred from tapping this route.

Beliefs have the power to create and the power to destroy. ~ Tony Robbins

Courtesy : Mint , The Hindu