Current Affairs For Bank, IBPS Exams - 28 July, 2014

Current Affairs For Bank, IBPS Exams

This year’s budget has announced specific steps that provide a positive direction to the micro, small and medium enterprises (MSME) sector for growth. One such long-overdue step is the announcement of revision of the existing definition.
The threshold limits of defining MSMEs were set way back in 2006 and, while global MSMEs are a lot larger than Indian MSMEs, the definition makes it difficult to create linkages between MSMEs in India and the MSMEs worldwide.
Definition is based on investment in plant and machinery. Inflation has increased the cost of investment under plant and machinery, and this strengthens the case to expeditiously review the definition based on investment criteria.
Access to finance remains a challenge for MSMEs. Setting up a committee to examine the financial architecture of MSMEs is welcome; however, what is required is concrete recommendations for faster availability of credit at low cost.
Issues related to service tax for MSMEs are yet to be resolved. For instance, an increase in the threshold limit for levy of service tax is desirable.
The proposed entrepreneurship-friendly Bankruptcy Law is a much needed breather for the industry, and will facilitate easy exit for loss-making units.
Finally, the focus on SME development in the Northeast and Jammu & Kashmir, as announced in the budget, will lead to balanced regional development, especially through better rail connectivity in the Northeast.

Social networking giant Facebook has extended by a year the closing of its landmark $ 19 billion deal to acquire instant messaging app WhatsApp. The California-based firm will have to pay WhatsApp $ 1 billion in cash and $ 1 billion in stock options in case it fails to close the deal in the stipulated time.
Facebook said the acquisition is subject to customary closing conditions, including regulatory approvals, and is expected to close in the second half of 2014.
The firm added that at present it expects that these conditions will be satisfied and that “we will extend the date to August 19, 2015.”
The hefty transaction - which includes $ 12 billion worth of Facebook shares, $ 4 billion in cash and $ 3 billion in restricted stock units - will boost the world’s biggest social network presence by adding 450 million users of WhatsApp, including a significant number of youth.

To protect the public from fraudulent money-pooling activities, SEBI has stepped up action against entities raising funds illegally, even as it awaits Parliamentary nod for greater powers to check such frauds.
So far in the current fiscal, beginning April 1, at least 28 firms have faced SEBI’s wrath for raising funds totalling at least Rs 2,500 crore through illegal money-pooling schemes or unauthorised issuance of securities.
The Securities Laws (Amendment) Bill, 2014, which would empower SEBI to crack down on ponzi schemes and investment frauds, was approved by the Cabinet last week and the bill would now go to the Parliament.
In cases of illegal Collective Investment Schemes (CIS) also, the market watchdog has passed orders against at least 13 companies, including some with operations in West Bengal.