Article 47 in the Directive Principles of State Policy reads: “The state shall endeavour to bring about prohibition of the use, except for medicinal purposes, of intoxicating drinks ...” On the basis of this, various Indian states have tried to implement a ban on alcohol. Incidentally, even the Lok Sabha passed a Bill prohibiting alcohol on 31 March 1956. But, over time, such bans fizzled out owing to revenue considerations. With Kerala joining the ban-wagon, here is a snapshot of various states’ tryst with prohibition.Compiled by Neeraj Thakur; Graphic by Prashant Chaudhary(This story was published in BW | Businessworld Issue Dated 22-09-2014)
Read More
India’s top trading partners, the European Union and the US, have accused it of holding the future of world trade to ransom by not signing the trade facilitation agreement protocol at the recently concluded WTO general council meeting in Geneva. But India remains an insignificant partner in their trading universe. Here is a snapshot of how India stacks up in the world trade order vis-a-vis its key trading partnersClick here to view graphicCompiled by Joe C. Mathew; Graphic by Prashant Chaudhary(This story was published in BW | Businessworld Issue Dated 22-09-2014)
Read More
The rupee falls slightly to 60.08/09 versus its previous close of 60.0650/0750, with broad gains in the dollar versus other majors hurting the Indian unit but mixed cues from other Asian currencies will keep the USD/INR pair rangebound.Traders will monitor the local share market for cues on foreign fund flows. The rupee rose to a one-month high of 59.9225 on Thursday (8 May) and is seen moving in a 59.90 to 60.20 range during the session.The index of the dollar against six major currencies up 0.12 per cent. Asian currencies trading mixed versus the dollar.Asian shares mostly slumped on Friday (9 May) as a tense situation in Ukraine made investors cautious, though a tame inflation report from China calmed some nerves.(Reuters)
Read More
An Indian-origin man is among six persons charged with carrying out a $30 million bank fraud conspiracy and faces up to 30 years in prison if convicted.Manjeet Bawa, 46, of New York and other co-defendants contracted to buy homes in Nassau and Suffolk Counties from innocent sellers at market prices.The defendants then submitted fraudulent loan applications to the warehouse lenders that nearly doubled the true sales prices of the homes.The defendants also inflated their personal assets and concealed significant liabilities to get loan approval.The six defendants face up to 30 years' imprisonment and could be ordered to forfeit 19 residential properties traced to the bank fraud or up to $30 million dollars in a money judgement.According to the indictment and other court filings, between 2003 and 2008, the main defendant Aaron Wider, 50, operated a New York State licensed mortgage bank HTFC, which issued residential mortgages to borrowers.HTFC did not possess assets to fund these loans but relied on funding from other banks and financial institutions, commonly known as "warehouse lenders".The warehouse lenders relied on Wider and HTFC to ensure that home buyers were able to pay the mortgages and that the market value of the homes fully collateralised the loans.Instead, Wider and the co-defendants allegedly engineered a complex series of same-day sham transactions, or "flips", to artificially inflate the prices of homes.They then lied to the warehouse lenders to obtain mortgage funding that was 80 per cent more than the actual value of the homes, according to court filings."The conduct charged in the indictment is a prime example of the type of corrupt mortgage-lending practices that preceded the bursting of the real estate bubble, the loss of faith in securitised mortgage obligations and the financial collapse of 2007 and 2008," US Attorney Loretta Lynch said."Instead of using their skills in banking, the law and investing to assist individuals pursuing the American Dream, the defendants cooked up a sophisticated scheme that defrauded lenders and then fed toxic debt to the investigating public at large in the secondary mortgage market," he said.(PTI)
Read More
Negative growth in crude oil, natural gas, refinery products, fertilisers and steel has pulled down the growth of the eight core industries to 2.7 per cent in July.Growth in the infrastructure sector, which has a combined weight of about 38 per cent in the Index of Industrial Production (IIP), stood at 5.3 per cent in July 2013.Crude oil, natural gas, refinery products, fertilisers and steel recorded a negative growth of 1 per cent, 9 per cent, 5.5 per cent, 4.2 per cent and 3.4 per cent, respectively in July, according to the data of the Commerce and Industry Ministry.However, coal, cement and electricity production grew by 6.2 per cent, 16.5 per cent and 11.2 per cent, respectively during the month under review.During April-July, growth in the eight core industries grew by 4.1 per cent from 4.1 per cent in the year-ago period.Led by healthy growth in cement and electricity, the eight core industries grew to a nine- month high of 7.3 per cent in June.(PTI)
Read More
Dealers in India will be allowed to trade bonds even when the RBI is making coupon payments for that debt, in a rule that is expected improve market liquidity on those days, dealers say.Under the previous rule, bonds whose coupon payments were due were placed in a one-day "shut period", meaning traders were not allowed to trade them on the day before the coupon payment so as to avoid any change in ownership of those securities during the process.However, the one-day shut period will continue to apply to bond redemption."The shut period was an operational issue for banks. The removal is not likely to be so impactful, but will still be good for liquidity," said Harish Agarwal, a fixed income dealer with First Rand Bank.(Reuters)
Read More
The rupee is trading at 60.01/02 after hitting 59.95, its highest since April 9 but still stronger than its close of 60.135/145 on Wednesday (8 May), tracking gains in the domestic share market.Dealers say good demand for dollars from oil firms seen around 60 levels.Traders expect the rupee to hold in a 59.90 to 60.20 range during the session, and domestic shares would be watched for cues on foreign fund flows.The BSE Sensex trading up 0.2 per cent.Asian shares drew a measure of comfort from dovish comments by the US Federal Reserve chief and signs of easing tensions in Ukraine after Russian President Vladimir Putin called on pro-Moscow separatists to postpone a succession vote.Traders, however, say losses in other Asian currencies and the dollar's gains versus the euro will limit a sharp fall in the USD/INR pair.(Reuters)
Read More
India's Current Account Deficit narrowed sharply to 1.7 per cent of GDP in the April-June quarter of this fiscal mainly on account of reduction in trade deficit, and a steep decline in gold imports."The lower CAD was primarily on account of a contraction in the trade deficit contributed by both a rise in exports and a decline in imports," RBI said in a statement.CAD narrowed sharply to $7.8 billion (1.7 per cent of GDP) in the first quarter of the 2014-15 fiscal, from $21.8 billion (4.8 per cent of GDP) in the year-ago period.However, it was higher than $1.2 billion (0.2 per cent of GDP) in the fourth (January-March) quarter of the previous fiscal, 2013-14.Decline in imports was primarily led by a steep 57.2 per cent fall in gold imports, which amounted to USD 7 billion - significantly lower than USD 16.5 billion in the April-June quarter of 2013-14, RBI said.Trade deficit contracted by about 31.4 per cent to $34.6 billion in Q1 2014-15, from $50.5 billion in Q1, 2013-14.Exports increased by 10.6 per cent in the first quarter of 2014-15 to $81.7 billion. Imports moderated by 6.5 per cent to $116.4 billion.The CAD, which is the difference between the inflow and outflow of foreign currency, had touched a record high of $87.8 billion (4.8 per cent) in 2012-13 fiscal mainly on account of steep increase in gold imports.It had narrowed to $32.4 billion (1.7 per cent) for the entire 2013-14 fiscal after government imposed import restrictions on the precious metal.(PTI)
Read More
