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The Government of India has made several changes in its Annual Financial Statement, commonly referred to as budget. Some of these changes are:

<ul>
	<li>Omission of plan and non-plan expenditure</li>
	<li>No separate Railway budget</li>
	<li>The budget in the Indian Parliament may be tabled earlier than before</li>
</ul>

What does each one of them mean? 
 
The budget is represented under two accounts: revenue account and capital account. The revenue account means day to day running of the various government departments and services, interest payments etc. 
 
<img alt="" class="img-responsive" src="http://s.wionews.com/photos/budget_slide_1-20160922112651.jpg" />

<div class="media-description">
 
Capital account involves long-term investments such as machinery, plants, etc.
</div>

 
<img alt="" class="img-responsive" src="http://s.wionews.com/photos/budget_slide_3-20160922113120.jpg" />

<div class="media-description">
&nbsp;
</div>

Till this year&rsquo;s budget, revenue expenditure and capital expenditure were further divided into plan expenditure and non-plan expenditure. 
 
Plan expenditure: means the expenditure done under the five year plans, that is decided beforehand during the planning process. 
 
Non-plan expenditure: means expenditure that lies outside the plan and for which no provision can be made as it is largely unforeseen, unpredictable and contingent on circumstances.&nbsp; E.g. expenditure on repairs and maintenance of assets, unfinished schemes, defence, law and order, etc. 
 
From next year, the expenditure under both the accounts will not be divided into plan and non-plan as the premier economic planning institution, Planning Commission of India, no longer exists. It has been replaced by NITI Aayog, a think tank. 
 
<img alt="" class="img-responsive" src="http://s.wionews.com/photos/budget_slide_2-20160922112918.jpg" />

<div class="media-description">
 
From next year, the expenditure under revenue account and capital account will not be divided into plan and non-plan.
</div>

The 12th five year plan will end in 2017 and after that, there will be no five year plans, thus redefining the Indian Economy textbooks. 
&nbsp; 
If not five year plans, then what? &nbsp; 
 
The NITI Aayog will be preparing a 15-year vision document aligned with the country&rsquo;s social goals and sustainable development targets. The first 15-year vision document will start from 2017-18. Aayog will also prepare a seven-year National Development Agenda which will lay down the schemes, programmes and strategies to be reviewed after every three years. 
 
The vision document is similar to the Directive Principles of the State Policy of the Constitution, guiding where India should be heading but not enforceable by law. &nbsp; 
&nbsp;At the same time, one should be looking at the documents laid before Parliament under the Fiscal Responsibility and Budget Management (FRBM) Act, 2003:

<ul>
	<li>Medium term fiscal policy statement: It sets out three-year rolling targets for four specific fiscal&nbsp;indicators in relation to GDP, namely (i) revenue deficit, (ii) fiscal deficit, (iii) tax to GDP&nbsp;ratio and (iv) total outstanding debt at the end of the year.</li>
	<li>Fiscal policy strategy statement: It outlines the strategic priorities of the government in the fiscal area for the&nbsp;ensuing financial year relating to taxation, expenditure, lending and investments, administered pricing,&nbsp;borrowings and guarantees. The statement explains how the current policies are in conformity with sound&nbsp;fiscal management principles and gives the rationale for any major deviation in key fiscal measures.</li>
	<li>Macro-economic framework statement: It contains assessment regarding&nbsp;the GDP growth rate, fiscal balance of the Indian government and the external sector balance of the economy.</li>
</ul>

&nbsp;Concerns with merger of railway budget with general budget 
 
The proposal to merge the two budgets was given by the Bibek Debroy Committee at NITI Aayog. It is said that after the merger, Indian Railways will save around $1.5 billion every year by not paying the dividend it has to pay for gross budgetary support from the Indian government. 
 
Indian economist Bibek Debroy, in an interview, has raised four concerns regarding this merger that still need to be addressed by the railway ministry and finance ministry:

<ul>
	<li>What happens to dividends? Dividends i.e. corporate dividends is actually a repayment of debt that the Indian government extends to the railways in perpetuity and only the interest gets repaid, the principal is never extinguished.&nbsp;</li>
	<li>What happens to the existing debt? Does that continue or not?&nbsp;</li>
	<li>What happens to the gross budgetary support? In what form will it be extended now?</li>
	<li>What happens to the windows that the railways has for borrowing? Right now, the railways borrows through Indian Railway Finance Corporation (IRFC).</li>
</ul>

&nbsp; 
Why does the budget needs to be presented earlier than usual? 
 
At present, the budget is presented on 28th February every year. The budget session of Parliament is divided into two parts: the first is held between last week of February to middle of March and the second session is held from last week of April to middle of May. 
 
Usually, the budget gets passed in the second part of the session. After that, the country experiences monsoon season for 3 to 4 months hampering the infrastructure spending. 
 
Also, unlike India, most countries around the world have their fiscal year as the calendar year. 
 
With the Goods and Services tax scheduled to be rolled out next year, it is not certain whether the Indian government would table its Annual Financial Statement on a different date.&nbsp; 
&nbsp;

The Government of India has made several changes in its Annual Financial Statement, commonly referred to as budget

The Government of India has made several changes in its Annual Financial Statement, commonly referred to as budget. Some of these changes are: Omission of plan and non-plan expenditure No separate Railway budget The budget in the Indian Parliament may be tabled earlier than before What does each one of them mean? The budget is represented under two accounts: revenue account and capital account. The revenue account means day to day running of the various government departments and services, interest payments etc. Capital account involves long-term investments such as machinery, plants, etc. Till this year’s budget, revenue expenditure and capital expenditure were further divided into plan expenditure and non-plan expenditure. Plan expenditure: means the expenditure done under the five year plans, that is decided beforehand during the planning process. Non-plan expenditure: means expenditure that lies outside the plan and for which no provision can be made as it is largely unforeseen, unpredictable and contingent on circumstances. E.g. expenditure on repairs and maintenance of assets, unfinished schemes, defence, law and order, etc. From next year, the expenditure under both the accounts will not be divided into plan and non-plan as the premier economic planning institution, Planning Commission of India, no longer exists. It has been replaced by NITI Aayog, a think tank. From next year, the expenditure under revenue account and capital account will not be divided into plan and non-plan. The 12th five year plan will end in 2017 and after that, there will be no five year plans, thus redefining the Indian Economy textbooks. If not five year plans, then what? The NITI Aayog will be preparing a 15-year vision document aligned with the country’s social goals and sustainable development targets. The first 15-year vision document will start from 2017-18. Aayog will also prepare a seven-year National Development Agenda which will lay down the schemes, programmes and strategies to be reviewed after every three years. The vision document is similar to the Directive Principles of the State Policy of the Constitution, guiding where India should be heading but not enforceable by law. At the same time, one should be looking at the documents laid before Parliament under the Fiscal Responsibility and Budget Management (FRBM) Act, 2003: Medium term fiscal policy statement: It sets out three-year rolling targets for four specific fiscal indicators in relation to GDP, namely (i) revenue deficit, (ii) fiscal deficit, (iii) tax to GDP ratio and (iv) total outstanding debt at the end of the year. Fiscal policy strategy statement: It outlines the strategic priorities of the government in the fiscal area for the ensuing financial year relating to taxation, expenditure, lending and investments, administered pricing, borrowings and guarantees. The statement explains how the current policies are in conformity with sound fiscal management principles and gives the rationale for any major deviation in key fiscal measures. Macro-economic framework statement: It contains assessment regarding the GDP growth rate, fiscal balance of the Indian government and the external sector balance of the economy. Concerns with merger of railway budget with general budget The proposal to merge the two budgets was given by the Bibek Debroy Committee at NITI Aayog. It is said that after the merger, Indian Railways will save around $1.5 billion every year by not paying the dividend it has to pay for gross budgetary support from the Indian government. Indian economist Bibek Debroy, in an interview, has raised four concerns regarding this merger that still need to be addressed by the railway ministry and finance ministry: What happens to dividends? Dividends i.e. corporate dividends is actually a repayment of debt that the Indian government extends to the railways in perpetuity and only the interest gets repaid, the principal is never extinguished. What happens to the existing debt? Does that continue or not? What happens to the gross budgetary support? In what form will it be extended now? What happens to the windows that the railways has for borrowing? Right now, the railways borrows through Indian Railway Finance Corporation (IRFC). Why does the budget needs to be presented earlier than usual? At present, the budget is presented on 28th February every year. The budget session of Parliament is divided into two parts: the first is held between last week of February to middle of March and the second session is held from last week of April to middle of May. Usually, the budget gets passed in the second part of the session. After that, the country experiences monsoon season for 3 to 4 months hampering the infrastructure spending. Also, unlike India, most countries around the world have their fiscal year as the calendar year. With the Goods and Services tax scheduled to be rolled out next year, it is not certain whether the Indian government would table its Annual Financial Statement on a different date.

Merger of Rail Budget with Union Budget and more: What it means for India

By Yoshita Rao

A possible increase in short-term capital gains (STCG) tax could be on the agenda in the Budget for 2017 along with higher levy on dividends earned, a report by Business Standard said on Tuesday.

The federal government has already started gathering feedback from key market participants like Securities and Exchange Board of India (SEBI) and the stock exchanges, the report added.

The STCG, which is profits on sale of shares held for less than a period of 12 months, is presently taxed at 15 per cent.

On Saturday, Prime Minister Narendra Modi in his speech said that tax collection from capital markets players is low majorly because of illegal activities.

&ldquo;Those who profit from financial markets must make a fair contribution to nation-building through taxes. For various reasons, the contributions of tax from those who make money on the markets has been low...Low or zero tax rates are given to certain types of financial income. I call upon you to think about the contribution of market participants to the exchequer,&rdquo; PM Modi said.

Shortly after, finance minister, Arun Jaitley, clarified that changes to the long-term capital gains (LTCG), which are currently tax free, will not be made.

However, regarding the consultation of the government with the market regulators, the report said that an announcement regarding the tax on STCG could be expected on February 1, 2017.

The markets on Monday reacted negatively to PM Modi&#39;s announcement.

The report says that currently, besides the dividend distribution tax (DDT) paid by companies, an additional 10 per cent is levied on individuals earning dividend income in excess of Rs 10 lakh annually. The move could increase the effective tax on dividends to 30 per cent&nbsp;for those in the high-income bracket.

Business Standard quoted market players who said that increasing the STCG would be a double whammy for investors as they are currently paying securities transaction tax (STT) on all trades.

The government collects nearly Rs 7,400 crore annually through STT, the report added.

The government has also asked stock exchanges to suggest measures to crack down on tax evasion through penny stocks and the report said that the exchanges have submitted their recommendations to the finance ministry.

The income tax department has unearthed Rs 38,000 crore involving around 1,000 entities who deal in penny stocks, the report said.

(WION)

The federal government has already started gathering feedback from key market participants like Securities and Exchange Board of India

By Yoshita Rao A possible increase in short-term capital gains (STCG) tax could be on the agenda in the Budget for 2017 along with higher levy on dividends earned, a report by Business Standard said on Tuesday. The federal government has already started gathering feedback from key market participants like Securities and Exchange Board of India (SEBI) and the stock exchanges, the report added. The STCG, which is profits on sale of shares held for less than a period of 12 months, is presently taxed at 15 per cent. On Saturday, Prime Minister Narendra Modi in his speech said that tax collection from capital markets players is low majorly because of illegal activities. “Those who profit from financial markets must make a fair contribution to nation-building through taxes. For various reasons, the contributions of tax from those who make money on the markets has been low...Low or zero tax rates are given to certain types of financial income. I call upon you to think about the contribution of market participants to the exchequer,” PM Modi said. Shortly after, finance minister, Arun Jaitley, clarified that changes to the long-term capital gains (LTCG), which are currently tax free, will not be made. However, regarding the consultation of the government with the market regulators, the report said that an announcement regarding the tax on STCG could be expected on February 1, 2017. The markets on Monday reacted negatively to PM Modi's announcement. The report says that currently, besides the dividend distribution tax (DDT) paid by companies, an additional 10 per cent is levied on individuals earning dividend income in excess of Rs 10 lakh annually. The move could increase the effective tax on dividends to 30 per cent for those in the high-income bracket. Business Standard quoted market players who said that increasing the STCG would be a double whammy for investors as they are currently paying securities transaction tax (STT) on all trades. The government collects nearly Rs 7,400 crore annually through STT, the report added. The government has also asked stock exchanges to suggest measures to crack down on tax evasion through penny stocks and the report said that the exchanges have submitted their recommendations to the finance ministry. The income tax department has unearthed Rs 38,000 crore involving around 1,000 entities who deal in penny stocks, the report said. (WION)

Short-term capital gains tax may increase to 20% in India's 2017 Budget

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&nbsp;

Take this WION Wallet quiz as you prepare for the Indian union budget this year

#OneWithTheWorld: How well do you know the budget?

Indian shares edged lower on Monday after four straight sessions of gains on caution ahead of the federal budget, while broader sentiment was also hit by fears about the impact of US&nbsp;President Donald Trump&#39;s immigration curbs.

India&#39;s government is due to present its 2017/18 budget on Wednesday, with shares last week posting their biggest weekly gains in eight months on hopes the government will announce incentives to ease the impact from a bold and risky gamble to outlaw high-value old currency bills.

But further caution set in on Monday, especially as Asian shares fell on worries that Trump&#39;s ban on the entry of refugees into the US&nbsp;would prove destabilising for the rest of the world.

&quot;Markets are a little wary of what lies in the budget and have probably have rallied too far on the assumption that some good is in the offing,&quot; said Saurabh Jain, assistant vice-president of research at SMC Global Securities.

The broader NSE Nifty was down 0.14 per cent at 8,629.05 by 0546 GMT, while the benchmark BSE Sensex was 0.06 per cent lower at 27,866.14.

Both indexes had risen more than 3 per cent last week in their biggest weekly gains since late May.

IT stocks contributed to a majority of the losses on the NSE index. The Nifty IT index fell 1.15 per cent, dragged down by Infosys Ltd and Tata Consultancy Services Ltd, which lost over 1.40 per cent each.

Investors also booked profits in recent outperformers: the Nifty bank index, which led gains last week, fell 0.40 per cent, dragged down by HDFC Bank Ltd and Kotak Mahindra Bank Ltd. The index had gained 4.72 per cent last week.

(Reuters)

India's government is due to present its 2017/18 budget on Wednesday

Indian shares edged lower on Monday after four straight sessions of gains on caution ahead of the federal budget, while broader sentiment was also hit by fears about the impact of US President Donald Trump's immigration curbs. India's government is due to present its 2017/18 budget on Wednesday, with shares last week posting their biggest weekly gains in eight months on hopes the government will announce incentives to ease the impact from a bold and risky gamble to outlaw high-value old currency bills. But further caution set in on Monday, especially as Asian shares fell on worries that Trump's ban on the entry of refugees into the US would prove destabilising for the rest of the world. "Markets are a little wary of what lies in the budget and have probably have rallied too far on the assumption that some good is in the offing," said Saurabh Jain, assistant vice-president of research at SMC Global Securities. The broader NSE Nifty was down 0.14 per cent at 8,629.05 by 0546 GMT, while the benchmark BSE Sensex was 0.06 per cent lower at 27,866.14. Both indexes had risen more than 3 per cent last week in their biggest weekly gains since late May. IT stocks contributed to a majority of the losses on the NSE index. The Nifty IT index fell 1.15 per cent, dragged down by Infosys Ltd and Tata Consultancy Services Ltd, which lost over 1.40 per cent each. Investors also booked profits in recent outperformers: the Nifty bank index, which led gains last week, fell 0.40 per cent, dragged down by HDFC Bank Ltd and Kotak Mahindra Bank Ltd. The index had gained 4.72 per cent last week. (Reuters)

Sensex edges lower on caution ahead of budget

Initiating a stringent action against black money holders post notes ban, India&#39;s Income Tax department said it has issued 87 notices and has frozen bank deposits worth crores in 42 cases nationwide under the newly enforced Benami Transactions Act which attracts a heavy penalty and rigorous jail term of a maximum seven&nbsp;years.

Post the demonetisation order of the government on November 8 last year, the department had carried out public advertisements and had warned people against depositing their unaccounted old currency in someone else&#39;s bank account saying such an act would attract criminal charges under the Benami Property Transactions Act, 1988, applicable on both movable and immovable property, that has been enforced from November 1, 2016.

&quot;After in-depth investigations, the I-T department has issued 87 notices under section 24 of the said Act (notice and attachment of property involved in benami transaction). A total of 42 properties, largely money worth crores in bank accounts and an immovable property&nbsp;of benamidars have been attached,&quot; officials said citing an analysis report.

The I-T department is the nodal department to enforce the said act in India. They said the taxman has issued numerous summons under the Benami Transactions Act and is in the process of issuing more.

The decision, they said, to slap the stringent provisions of the Benami Transactions Act was taken after analysing serious cases where the illegalities were blatant and suspect cash was deposited in either benami accounts or Jan Dhan or dormant accounts.

The taxman had initiated a nationwide operation to identify suspect bank accounts where huge cash deposits have been made post-November 8 when the government demonetised the Rs 500 and Rs 1000 currency notes.

Officials said the act empowers the taxman to confiscate and prosecute both the depositor and the person whose illegal money he or she has &quot;adjusted&quot; in their account.

&quot;Such an arrangement where a person deposits old currency of Rs 500 and Rs 1000 in the bank account of another person with an understanding that the account holder shall return his money in new currency, the transaction shall be regarded as benami transaction under the said act.

&quot;The person who deposits old currency in the bank account shall be treated as beneficial owner and the person in whose bank account the old currency has been deposited shall be categorised under this law as a benamidar,&quot; a senior official had explained earlier.&nbsp;

(PTI)

The taxman had initiated a nationwide operation to identify suspect bank accounts where huge cash deposits were made after November 8.

Initiating a stringent action against black money holders post notes ban, India's Income Tax department said it has issued 87 notices and has frozen bank deposits worth crores in 42 cases nationwide under the newly enforced Benami Transactions Act which attracts a heavy penalty and rigorous jail term of a maximum seven years. Post the demonetisation order of the government on November 8 last year, the department had carried out public advertisements and had warned people against depositing their unaccounted old currency in someone else's bank account saying such an act would attract criminal charges under the Benami Property Transactions Act, 1988, applicable on both movable and immovable property, that has been enforced from November 1, 2016. "After in-depth investigations, the I-T department has issued 87 notices under section 24 of the said Act (notice and attachment of property involved in benami transaction). A total of 42 properties, largely money worth crores in bank accounts and an immovable property of benamidars have been attached," officials said citing an analysis report. The I-T department is the nodal department to enforce the said act in India. They said the taxman has issued numerous summons under the Benami Transactions Act and is in the process of issuing more. The decision, they said, to slap the stringent provisions of the Benami Transactions Act was taken after analysing serious cases where the illegalities were blatant and suspect cash was deposited in either benami accounts or Jan Dhan or dormant accounts. The taxman had initiated a nationwide operation to identify suspect bank accounts where huge cash deposits have been made post-November 8 when the government demonetised the Rs 500 and Rs 1000 currency notes. Officials said the act empowers the taxman to confiscate and prosecute both the depositor and the person whose illegal money he or she has "adjusted" in their account. "Such an arrangement where a person deposits old currency of Rs 500 and Rs 1000 in the bank account of another person with an understanding that the account holder shall return his money in new currency, the transaction shall be regarded as benami transaction under the said act. "The person who deposits old currency in the bank account shall be treated as beneficial owner and the person in whose bank account the old currency has been deposited shall be categorised under this law as a benamidar," a senior official had explained earlier. (PTI)

Post-demonetisation, IT department issues 87 notices, freezes bank accounts

Indian Prime Minister launched his ambitious start-up India scheme. But what exactly are the benefits of this scheme to our young entrepreneurs?

WION Budget: One year of Startup India

The agriculture sector is pictured synonymous with poverty in India. Every year, the government allocates billions of dollars to the sector and yet the Indian farmers have a little relief. What are the problems faced by the farmers?

WION Budget: Government initiatives for promotion of Agriculture

India may have high enrolment ratios in primary school, but the quality of education is highly questionable. The lack of optimal utilisation of resources allocated during budget has a direct bearing on the household expenses of people.

WION Budget: Expectations from education sector

More than half of the Indian population is excluded from the financial system. In this digital day and age, the Indian economy should aim to take a double leap. WION's correspondent, Snigdh brings you this story.

WION Budget: Can Indian banking go digital?

Compared with other countries, India has a very skewed tax structure. Most of our tax collection comes from just two states, while most of our tax revenue comes from Indirect taxes which makes it a regressive tax structure. Here's more to this story.

WION Budget: Reducing the income tax burden

In a bid to shore up the domestic steel industry, the European Union, on Friday,&nbsp;slapped anti-dumping duties on steel products from China and Taiwan.

The move comes in response to Chinese steel products allegedly flooding&nbsp;global markets in violation of international trade agreements.

&quot;The European Commission&#39;s investigation confirmed that Chinese and Taiwanese stainless steel tube and pipe butt-welding fittings had been sold in Europe at dumped prices,&quot; the EU&#39;s executive arm said in a statement.

The development comes in the wake of the United States under its President, Donald Trump, talking about protectionist measures to protect American jobs. The Chinese President, Xi Jinping, speaking at the World Economic Forum in Davos last week, had praised globalisation.

The European Union is China&#39;s second largest trading partner. It has a host of trade disputes with Beijing and the stand-off over steel is being resolved through the&nbsp;Organisation for Economic Co-operation and Development, or OECD, a group&nbsp;of highly-developed economies based in Paris.&nbsp;

(WION with inputs from AFP)

The move comes in response to Chinese steel products allegedly flooding the global markets in violation of international trade agreements

In a bid to shore up the domestic steel industry, the European Union, on Friday, slapped anti-dumping duties on steel products from China and Taiwan. The move comes in response to Chinese steel products allegedly flooding global markets in violation of international trade agreements. "The European Commission's investigation confirmed that Chinese and Taiwanese stainless steel tube and pipe butt-welding fittings had been sold in Europe at dumped prices," the EU's executive arm said in a statement. The development comes in the wake of the United States under its President, Donald Trump, talking about protectionist measures to protect American jobs. The Chinese President, Xi Jinping, speaking at the World Economic Forum in Davos last week, had praised globalisation. The European Union is China's second largest trading partner. It has a host of trade disputes with Beijing and the stand-off over steel is being resolved through the Organisation for Economic Co-operation and Development, or OECD, a group of highly-developed economies based in Paris. (WION with inputs from AFP)

European Union slaps anti-dumping duty on steel imports from China

UK Steel workers&#39; unions have given their backing to Indian conglomerate Tata Steel UK&#39;s pension plan in a bid to rescue thousands of jobs and allow a merger with German major ThyssenKrupp to go ahead.

Union representatives held a meeting yesterday to discuss the changes announced, which would see the British Steel Pension Scheme (BSPS) close to future accrual and replaced with a defined contribution scheme.

&quot;We do not make this recommendation lightly. Nobody is saying that the proposal on the table is without issues. We fully understand the concerns of members, particularly around the British Steel Pension Scheme (BSPS),&quot; said a joint- statement from the three workers&#39; unions, Unite, GMB and Community which have come together as the National Trade Union Steel Coordinating Committee (NTUSCC).

&quot;But as we have said before what you are voting on is the best outcome that could be achieved through negotiation. It is our collective view, supported by our independent experts, that this is the only credible and viable way to secure the future,&quot; the statement added.

An agreement on Tata Steel&#39;s proposed changes to pensions are essential to future investment, including 1 billion pounds at the Port Talbot plant in Wales over 10 years.

A ballot on the offer is now expected to go ahead on Monday.

The move came as ThyssenKrupp CEO Heinrich Hiesinger warned today that a deal with the Indian giant was possible only if the pensions liability is separated from its UK units.

&quot;Tata needs to separate its pension liabilities from the plants in Ijmuiden and Port Talbot, then we can talk,&quot; Hiesinger told German newspaper &#39;Handelsbatt&#39; in an interview.

&quot;We too would like a speedy solution, but it has to be a good solution. A solution that secures the future of steel production in Germany and Europe -- and that takes time,&quot; he added.

His comments came as trustees of the 15-billion-pound BSPS warned its 130,000 members that the funding gap can rise from 300 million pounds to as much as 2 billion pounds unless more funds are injected.

In a letter to BSPS members, Allan Johnston, chair of the scheme&#39;s trustees, said that closing the scheme was a &quot;necessary step&quot; for it to be separated from the company.

The letter reads: &quot;Tata Steel has told the trustee that despite recent improvements in the performance of the Tata Steel UK business, [it] remains dependent on financial support form the wider Tata Steel group and that continuing support will be conditional on a separation of the BSPS from Tata Steel.&quot;&nbsp;

&quot;If Tata Steel UK is no longer able to access additional capital from the wider Tata Steel Group for continuation of business, the Trustee would have to adopt more risk-averse investment policies that are expected to produce lower investment returns.

&quot;This means that the next actuarial valuation, as at 31 March 2017, is expected to report a deficit of between 1 billion pounds and 2 billion pounds,&quot; it said.

Once the unions have voted on a new agreement, the pension scheme would be uncoupled from Tata&#39;s UK steel business, which currently makes large payments into it to make up funding shortfalls.

The scheme is then expected to become self-sufficient.

The pension fund and its deficit were the reason that attempts by Tata to sell its UK steel business failed last year.

It has since been pursuing a merger with ThyssenKrupp.

Tata Steel has declined to comment on the latest developments.

Koushik Chatterjee, Group Executive Director Tata Steel and Executive Director for Tata Steel&#39;s European business, had said earlier this month: &quot;The proposed changes to future pension provision and other employment terms are necessary to de-risk the company and help achieve long-term sustainability.

&quot;We are also working separately on a necessary structural solution for the British Steel Pension Scheme fund.&quot;&nbsp;

(PTI)

ThyssenKrupp has warned Tata Steel that a merger was possible only if the pensions liability is separated from its UK unit

UK Steel workers' unions have given their backing to Indian conglomerate Tata Steel UK's pension plan in a bid to rescue thousands of jobs and allow a merger with German major ThyssenKrupp to go ahead. Union representatives held a meeting yesterday to discuss the changes announced, which would see the British Steel Pension Scheme (BSPS) close to future accrual and replaced with a defined contribution scheme. "We do not make this recommendation lightly. Nobody is saying that the proposal on the table is without issues. We fully understand the concerns of members, particularly around the British Steel Pension Scheme (BSPS)," said a joint- statement from the three workers' unions, Unite, GMB and Community which have come together as the National Trade Union Steel Coordinating Committee (NTUSCC). "But as we have said before what you are voting on is the best outcome that could be achieved through negotiation. It is our collective view, supported by our independent experts, that this is the only credible and viable way to secure the future," the statement added. An agreement on Tata Steel's proposed changes to pensions are essential to future investment, including 1 billion pounds at the Port Talbot plant in Wales over 10 years. A ballot on the offer is now expected to go ahead on Monday. The move came as ThyssenKrupp CEO Heinrich Hiesinger warned today that a deal with the Indian giant was possible only if the pensions liability is separated from its UK units. "Tata needs to separate its pension liabilities from the plants in Ijmuiden and Port Talbot, then we can talk," Hiesinger told German newspaper 'Handelsbatt' in an interview. "We too would like a speedy solution, but it has to be a good solution. A solution that secures the future of steel production in Germany and Europe -- and that takes time," he added. His comments came as trustees of the 15-billion-pound BSPS warned its 130,000 members that the funding gap can rise from 300 million pounds to as much as 2 billion pounds unless more funds are injected. In a letter to BSPS members, Allan Johnston, chair of the scheme's trustees, said that closing the scheme was a "necessary step" for it to be separated from the company. The letter reads: "Tata Steel has told the trustee that despite recent improvements in the performance of the Tata Steel UK business, [it] remains dependent on financial support form the wider Tata Steel group and that continuing support will be conditional on a separation of the BSPS from Tata Steel." "If Tata Steel UK is no longer able to access additional capital from the wider Tata Steel Group for continuation of business, the Trustee would have to adopt more risk-averse investment policies that are expected to produce lower investment returns. "This means that the next actuarial valuation, as at 31 March 2017, is expected to report a deficit of between 1 billion pounds and 2 billion pounds," it said. Once the unions have voted on a new agreement, the pension scheme would be uncoupled from Tata's UK steel business, which currently makes large payments into it to make up funding shortfalls. The scheme is then expected to become self-sufficient. The pension fund and its deficit were the reason that attempts by Tata to sell its UK steel business failed last year. It has since been pursuing a merger with ThyssenKrupp. Tata Steel has declined to comment on the latest developments. Koushik Chatterjee, Group Executive Director Tata Steel and Executive Director for Tata Steel's European business, had said earlier this month: "The proposed changes to future pension provision and other employment terms are necessary to de-risk the company and help achieve long-term sustainability. "We are also working separately on a necessary structural solution for the British Steel Pension Scheme fund." (PTI)

Unions back Tata Steel UK's pension plan

World stocks hit a 19-month high on Wednesday, lifted by strong Japanese trade data, stellar European company earnings and hope that US&nbsp;President Donald Trump will press ahead with a large fiscal spending package.

Spanish bank Santander was among the big gainers in Europe, its 4 per cent rise in 2016 net profit giving its share price a similar boost and leading the continent-wide rally in bank stocks.

MSCI&#39;s global share index rose 0.2 per cent to 433.59 points, its highest since June 2015, after two of Wall Street&#39;s main indices reached fresh peaks overnight.

Europe&#39;s index of 300 leading shares and Germany&#39;s DAX both rose 1 per cent and Britain&#39;s FTSE 100 was up 0.7 per cent.

Japan&#39;s Nikkei advanced 1.4 per cent, buoyed by data showing the country&#39;s exports rose for the first time in 15 months in December, a positive sign for the economy even as talk of US&nbsp;protectionism looms over the outlook.

US&nbsp;futures pointed to a higher open on Wall Street. On Tuesday the S&amp;P 500 and Nasdaq both rose to fresh record highs and the Dow Jones Industrials came within 51 points of the elusive 20,000 mark.

&quot;US&nbsp;stocks have shown renewed signs of life this week, as the market toyed with the idea of reigniting the &#39;Trump rally&#39; that we saw in the aftermath of the presidential election,&quot; said Kathleen Brooks, research director at City Index.

Trump signed two executive orders on Tuesday to move forward with construction of the Keystone XL and Dakota Access oil pipelines, rolling back key Obama administration environmental actions in favour of expanding energy infrastructure.

He also met chief executives of the Big Three US&nbsp;automakers to push for more cars to be built in the United States.

&quot;Wednesday&#39;s key theme is the return of the &#39;Trump trade&#39;,&quot; Brooks said.

Bond yields up

The dollar snapped its recent losing streak and Treasury yields firmed overnight as Trump shifted his focus back to growth initiatives including promising corporate tax breaks to fuel US&nbsp;investment, after focusing on protectionism in his first few days in office.

The 10-year yield inched up to 2.48 per cent, recovering from its dip below 2.40 per cent earlier in the week, while the two-year yield held firm at 1.23 per cent. It was as low as 1.14 per cent on Monday.

While the greenback moved in tandem with the snap back in US&nbsp;Treasury yields overnight, it struggled to make much headway in Asian and European trading.

Lingering concerns about growing protectionism from the Trump administration&nbsp;and the potential negative effects on global trade and growth remained close to the surface.

&quot;It has kept dollar/yen flat despite the S&amp;P 500 hitting new highs and Treasury yields edging up,&quot; Kit Juckes, head of FX research at Societe Generale in London, wrote in a note on Wednesday.

&quot;There&#39;s no doubt that a major bout of protectionism-induced risk aversion would be yen-supportive, as well as negative for a bunch of currencies that depend on US&nbsp;trade,&quot; he said.

The dollar slipped 0.1 per cent to 113.65 Yen, and 0.1 per cent against a basket of currencies. The Euro was unchanged at $1.0725, little moved by a surprise fall in German business morale this month.

Germany&#39;s 10-year Bund yield rose to a six-week high of 0.38 per cent and France&#39;s benchmark 10-year yield hit a one-year high of 0.95 per cent, with bond prices weighed down by the rally in stocks and new debt supply.

Sterling was steady at $1.2524 after Britain&#39;s Supreme Court ruled that the government would need approval from parliament before formally triggering the country&#39;s departure from the European Union.

The decision overall was seen as clearing the way for Prime Minister Theresa May to get on with launching Brexit talks. Sterling has bounced 4 per cent over the last week.

Oil prices gave back much of their overnight gains. Brent futures dipped 0.5 per cent to $55.13 per barrel, after rising 0.4 per cent overnight.

Renewed optimism over Trump&#39;s growth policies took the wind out of a recent rally in safe-haven gold, which fell 0.6 per cent to $1,201 per ounce.

(Reuters)

Europe's index of 300 leading shares and Germany's DAX both rose 1 per cent and Britain's FTSE 100 was up 0.7 per cent

World stocks hit a 19-month high on Wednesday, lifted by strong Japanese trade data, stellar European company earnings and hope that US President Donald Trump will press ahead with a large fiscal spending package. Spanish bank Santander was among the big gainers in Europe, its 4 per cent rise in 2016 net profit giving its share price a similar boost and leading the continent-wide rally in bank stocks. MSCI's global share index rose 0.2 per cent to 433.59 points, its highest since June 2015, after two of Wall Street's main indices reached fresh peaks overnight. Europe's index of 300 leading shares and Germany's DAX both rose 1 per cent and Britain's FTSE 100 was up 0.7 per cent. Japan's Nikkei advanced 1.4 per cent, buoyed by data showing the country's exports rose for the first time in 15 months in December, a positive sign for the economy even as talk of US protectionism looms over the outlook. US futures pointed to a higher open on Wall Street. On Tuesday the S&P 500 and Nasdaq both rose to fresh record highs and the Dow Jones Industrials came within 51 points of the elusive 20,000 mark. "US stocks have shown renewed signs of life this week, as the market toyed with the idea of reigniting the 'Trump rally' that we saw in the aftermath of the presidential election," said Kathleen Brooks, research director at City Index. Trump signed two executive orders on Tuesday to move forward with construction of the Keystone XL and Dakota Access oil pipelines, rolling back key Obama administration environmental actions in favour of expanding energy infrastructure. He also met chief executives of the Big Three US automakers to push for more cars to be built in the United States. "Wednesday's key theme is the return of the 'Trump trade'," Brooks said. Bond yields up The dollar snapped its recent losing streak and Treasury yields firmed overnight as Trump shifted his focus back to growth initiatives including promising corporate tax breaks to fuel US investment, after focusing on protectionism in his first few days in office. The 10-year yield inched up to 2.48 per cent, recovering from its dip below 2.40 per cent earlier in the week, while the two-year yield held firm at 1.23 per cent. It was as low as 1.14 per cent on Monday. While the greenback moved in tandem with the snap back in US Treasury yields overnight, it struggled to make much headway in Asian and European trading. Lingering concerns about growing protectionism from the Trump administration and the potential negative effects on global trade and growth remained close to the surface. "It has kept dollar/yen flat despite the S&P 500 hitting new highs and Treasury yields edging up," Kit Juckes, head of FX research at Societe Generale in London, wrote in a note on Wednesday. "There's no doubt that a major bout of protectionism-induced risk aversion would be yen-supportive, as well as negative for a bunch of currencies that depend on US trade," he said. The dollar slipped 0.1 per cent to 113.65 Yen, and 0.1 per cent against a basket of currencies. The Euro was unchanged at $1.0725, little moved by a surprise fall in German business morale this month. Germany's 10-year Bund yield rose to a six-week high of 0.38 per cent and France's benchmark 10-year yield hit a one-year high of 0.95 per cent, with bond prices weighed down by the rally in stocks and new debt supply. Sterling was steady at $1.2524 after Britain's Supreme Court ruled that the government would need approval from parliament before formally triggering the country's departure from the European Union. The decision overall was seen as clearing the way for Prime Minister Theresa May to get on with launching Brexit talks. Sterling has bounced 4 per cent over the last week. Oil prices gave back much of their overnight gains. Brent futures dipped 0.5 per cent to $55.13 per barrel, after rising 0.4 per cent overnight. Renewed optimism over Trump's growth policies took the wind out of a recent rally in safe-haven gold, which fell 0.6 per cent to $1,201 per ounce. (Reuters)

Reignited 'Trump trades' help world stocks hit 19-month high

The Dow Jones Industrial Average traded above 20,000 for the first time on Wednesday, resuming a rally that began in the wake of US&nbsp;President Donald Trump&#39;s surprise election victory.

The rally was reignited by Trump&#39;s signing of numerous executive orders since his inauguration on Friday. The Dow has climbed 9 per cent since Trump took over on January 20.

&nbsp;

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Great! <a href="https://twitter.com/hashtag/Dow20K?src=hash">#Dow20K</a> <a href="https://t.co/wXFhXBLgag">https://t.co/wXFhXBLgag</a>
&mdash; President Trump (@POTUS) <a href="https://twitter.com/POTUS/status/824268525862879232">January 25, 2017</a></blockquote>
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&nbsp;

The index came within a point of the historic level on January 6, as investors banked on pro-growth policies and tax cuts from the new administration.

But the venerable index had stalled recently, dropping modestly in consecutive weeks, as investors grew cautious as they looked for clarity on the administration&#39;s new policies.

&quot;A seminal moment. It is just a number but it is a big number, it is certainly a flashy number,&quot; said Tim Ghriskey, chief investment officer of Solaris Group in Bedford Hills, New York.

&quot;There is a real belief that Trump is real, he has been extremely active these first couple of days of the presidency and a change may happen faster than people had thought.&quot;

If the index remains above 20,000 by closing time, the 42-session surge from the first close above 19,000 would mark the second-shortest length of time between such milestones.

The 24 trading days between 10,000 and 11,000 from March 29 to May 3 of 1999 was the fastest.

The rise from 18,000 to 19,000 took the Dow 483 trading sessions.

The move since November 22, when the index closed above 19,000 for the first time, has been spearheaded by financial stocks - with Goldman Sachs and JPMorgan accounting for about 20 per cent of the gain.

The two banks have benefited as investors bet that Trump&#39;s expected fiscal stimulus will trigger inflation and stoke a rise in interest rates.

On Wednesday, Boeing rose 2.3 per cent after its earnings and Goldman Sachs was up 0.7 per cent, helping to push the index over the top.

At 9:33 am&nbsp;ET (1433 GMT), the Dow was up 97.59 points, or 0.49 per cent, at 20,010.3, the S&amp;P 500 was up 10.33 points, or 0.45 per cent, at 2,290.4 and the Nasdaq Composite was up 38.17 points, or 0.68 per cent, at 5,639.13.

The S&amp;P and the Nasdaq also hit record intraday highs.

Advancing issues outnumbered decliners on the NYSE by 1,883 to 736. On the Nasdaq, 1,706 issues rose and 500 fell.

The S&amp;P 500 index showed 51 new 52-week highs and no new lows, while the Nasdaq recorded 96 new highs and five new lows.

(Reuters)

The rally was reignited by Trump's signing of numerous executive orders since his inauguration on Friday

The Dow Jones Industrial Average traded above 20,000 for the first time on Wednesday, resuming a rally that began in the wake of US President Donald Trump's surprise election victory. The rally was reignited by Trump's signing of numerous executive orders since his inauguration on Friday. The Dow has climbed 9 per cent since Trump took over on January 20. Great! #Dow20K https://t.co/wXFhXBLgag — President Trump (@POTUS) January 25, 2017 × The index came within a point of the historic level on January 6, as investors banked on pro-growth policies and tax cuts from the new administration. But the venerable index had stalled recently, dropping modestly in consecutive weeks, as investors grew cautious as they looked for clarity on the administration's new policies. "A seminal moment. It is just a number but it is a big number, it is certainly a flashy number," said Tim Ghriskey, chief investment officer of Solaris Group in Bedford Hills, New York. "There is a real belief that Trump is real, he has been extremely active these first couple of days of the presidency and a change may happen faster than people had thought." If the index remains above 20,000 by closing time, the 42-session surge from the first close above 19,000 would mark the second-shortest length of time between such milestones. The 24 trading days between 10,000 and 11,000 from March 29 to May 3 of 1999 was the fastest. The rise from 18,000 to 19,000 took the Dow 483 trading sessions. The move since November 22, when the index closed above 19,000 for the first time, has been spearheaded by financial stocks - with Goldman Sachs and JPMorgan accounting for about 20 per cent of the gain. The two banks have benefited as investors bet that Trump's expected fiscal stimulus will trigger inflation and stoke a rise in interest rates. On Wednesday, Boeing rose 2.3 per cent after its earnings and Goldman Sachs was up 0.7 per cent, helping to push the index over the top. At 9:33 am ET (1433 GMT), the Dow was up 97.59 points, or 0.49 per cent, at 20,010.3, the S&P 500 was up 10.33 points, or 0.45 per cent, at 2,290.4 and the Nasdaq Composite was up 38.17 points, or 0.68 per cent, at 5,639.13. The S&P and the Nasdaq also hit record intraday highs. Advancing issues outnumbered decliners on the NYSE by 1,883 to 736. On the Nasdaq, 1,706 issues rose and 500 fell. The S&P 500 index showed 51 new 52-week highs and no new lows, while the Nasdaq recorded 96 new highs and five new lows. (Reuters)

Dow hits 20,000 mark as post-election rally resumes

US President Donald Trump met with a dozen American manufacturers at the White House on Monday, pledging to slash regulations and cut corporate taxes, but warning them he would impose taxes on imports if they move production outside the country.

Trump, who took office on Friday, promised to bring manufacturing plants back to the United States - an issue he said helped him win the November 8 election - and has not hesitated to call out by name companies that he thinks should bring outsourced production back home.

He asked the group of chief executives from companies including Ford, Dell Technologies, Tesla and others to make recommendations in 30 days to stimulate manufacturing, Dow Chemical CEO Andrew Liveris told reporters.

Trump, a Republican who took over from former Democratic President Barack Obama, was expected to sign executive orders later on Monday to renegotiate the free trade agreement between the United States, Canada and Mexico, and to formally withdraw the United States from the 12-nation Trans-Pacific Partnership.

The new president told the CEOs that he would like to cut corporate taxes to the 15 per cent to 20 per cent range, down from current statutory levels of 35 per cent - a pledge that will require cooperation from the Republican-led US Congress. But he said business leaders have told him that reducing regulations is even more important.

&quot;We think we can cut regulations by 75 per cent. Maybe more,&quot; Trump told business leaders.

&quot;When you want to expand your plant, or when Mark wants to come in and build a big massive plant, or when Dell wants to come in and do something monstrous and special &ndash; you&#39;re going to have your approvals really fast,&rdquo; Trump said, referring to Mark Fields, CEO of Ford, who sat around the boardroom-style table in the Roosevelt Room.

The meeting ran longer than expected. Trump left briefly to attend to a phone call, and then reconvened the CEOs in the Oval Office, Liveris said.

Fields said he was encouraged by the tone.

&quot;I know I come out with a lot of confidence that the president is very, very serious on making sure that the United States economy is going to be strong and have policies - tax, regulatory or trade - to drive that,&quot; he said.

Trump told the executives that companies were welcome to negotiate with governors to move production between states, but said those businesses that choose to move factories outside the country would pay a price.

&quot;We are going to be imposing a very major border tax on the product when it comes in,&quot; Trump said.

&quot;A company that wants to fire all of its people in the United States, and build some factory someplace else, and then thinks that that product is going to just flow across the border into the United States - that&rsquo;s not going to happen,&quot; he said.

Liveris said the CEOs discussed the border tax &quot;quite a bit&quot; with Trump, explaining &quot;the sorts of industry that might be helped or hurt by that.&quot;

&quot;Look: I would take the president at his word here. He&#39;s not going to do anything to harm competitiveness. He&#39;s going to actually make us all more competitive,&quot; Liveris said.

Trump was scheduled to hold a meeting later on Monday with labor leaders and US&nbsp;workers, the White House said.

Between winning the presidential election in November and taking office, Trump hosted a number of US&nbsp;CEOs in meetings in New York, including business leaders from defense, technology and other sectors. He also met with leaders of several labor unions, including the AFL-CIO.

Trump, a real estate developer who had never previously held elected office, has particularly focused on manufacturing, lamenting during his inaugural address on Friday about &quot;rusted-out factories scattered like tombstones across the landscape of our nation&quot; and vowing to boost US industries over foreign ones.

(Reuters)

Trump told CEOs that he would like to cut corporate taxes by between 15-20% and regulations by 75%, or 'maybe more'

US President Donald Trump met with a dozen American manufacturers at the White House on Monday, pledging to slash regulations and cut corporate taxes, but warning them he would impose taxes on imports if they move production outside the country. Trump, who took office on Friday, promised to bring manufacturing plants back to the United States - an issue he said helped him win the November 8 election - and has not hesitated to call out by name companies that he thinks should bring outsourced production back home. He asked the group of chief executives from companies including Ford, Dell Technologies, Tesla and others to make recommendations in 30 days to stimulate manufacturing, Dow Chemical CEO Andrew Liveris told reporters. Trump, a Republican who took over from former Democratic President Barack Obama, was expected to sign executive orders later on Monday to renegotiate the free trade agreement between the United States, Canada and Mexico, and to formally withdraw the United States from the 12-nation Trans-Pacific Partnership. The new president told the CEOs that he would like to cut corporate taxes to the 15 per cent to 20 per cent range, down from current statutory levels of 35 per cent - a pledge that will require cooperation from the Republican-led US Congress. But he said business leaders have told him that reducing regulations is even more important. "We think we can cut regulations by 75 per cent. Maybe more," Trump told business leaders. "When you want to expand your plant, or when Mark wants to come in and build a big massive plant, or when Dell wants to come in and do something monstrous and special – you're going to have your approvals really fast,” Trump said, referring to Mark Fields, CEO of Ford, who sat around the boardroom-style table in the Roosevelt Room. The meeting ran longer than expected. Trump left briefly to attend to a phone call, and then reconvened the CEOs in the Oval Office, Liveris said. Fields said he was encouraged by the tone. "I know I come out with a lot of confidence that the president is very, very serious on making sure that the United States economy is going to be strong and have policies - tax, regulatory or trade - to drive that," he said. Trump told the executives that companies were welcome to negotiate with governors to move production between states, but said those businesses that choose to move factories outside the country would pay a price. "We are going to be imposing a very major border tax on the product when it comes in," Trump said. "A company that wants to fire all of its people in the United States, and build some factory someplace else, and then thinks that that product is going to just flow across the border into the United States - that’s not going to happen," he said. Liveris said the CEOs discussed the border tax "quite a bit" with Trump, explaining "the sorts of industry that might be helped or hurt by that." "Look: I would take the president at his word here. He's not going to do anything to harm competitiveness. He's going to actually make us all more competitive," Liveris said. Trump was scheduled to hold a meeting later on Monday with labor leaders and US workers, the White House said. Between winning the presidential election in November and taking office, Trump hosted a number of US CEOs in meetings in New York, including business leaders from defense, technology and other sectors. He also met with leaders of several labor unions, including the AFL-CIO. Trump, a real estate developer who had never previously held elected office, has particularly focused on manufacturing, lamenting during his inaugural address on Friday about "rusted-out factories scattered like tombstones across the landscape of our nation" and vowing to boost US industries over foreign ones. (Reuters)

Trump ready to cut corporate tax, slash regulations

The IPO received bids for 1,08,89,568 shares against the total issue size of 1,07,99,039 shares

BSE IPO oversubscribed on Day 1

BSE&#39;s initial public offer -- the first by a domestic stock exchange in India -- to raise up to Rs 1,243 crore was fully subscribed by the afternoon trade today, the second day of the offer.

The IPO, which closes tomorrow, received bids for 1,08,89,568 shares against the total issue size of 1,07,99,039 shares, data available with the NSE till 1330 hrs showed.&nbsp;The stock exchange aims to raise up to Rs 1,243 crore from the IPO, which is priced at Rs 805-806 per share.

During the initial share sale -- which is also a first by any company this year -- shareholders will sell 15.43 million shares estimated to be around Rs 1,243.44 crore at the higher end of the price band.&nbsp;The IPO of 15,427,197 shares of face value of Rs 2 each will constitute up to 28.26 per cent of the fully-diluted post offer issued share capital of BSE.

Bids for the issue can be made for a minimum of 18 shares and in multiples of 18 thereafter.&nbsp;Last Friday BSE had raised Rs 373 crore by allotting shares to anchor investors.

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The IPO received bids for 1,08,89,568 shares against the total issue size of 1,07,99,039 shares (WION)
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BSE shares will be listed on NSE as Sebi rules do not allow self-listing for an exchange.&nbsp;Capital market regulator Sebi had given its final go- ahead to the draft prospectus for the IPO on December 30.

Meanwhile, rival NSE too filed draft papers with Sebi last month for an estimated Rs 10,000-crore IPO.&nbsp;Among the existing BSE, shareholders are Bajaj Holdings Investment, Caldwell India Holdings, Acacia Banyan Partners, Singapore Exchange, a Mauritius-based arm of American investor George Soros&#39; Quantum Fund and foreign fund Atticus.

There are an estimated 9,000 shareholders at BSE, where originally mostly brokers held shares. However, a host of foreign investors and domestic financial institutions have acquired shares over the years and the IPO will provide some of them an exit window to monetise their investments.

The issue is being managed by Edelweiss Financial Services, Axis Capital, Jefferies India, Nomura Financial Advisory and Securities (India) Pvt, Motilal Oswal Investment Advisors, SBI Capital Markets and SMC Capitals.

BSE is the world&#39;s largest exchange by the number of listed companies. It is India&#39;s largest and the world&#39;s 10th largest exchange by market capitalisation.&nbsp;The market capitalisation of BSE-listed companies stands at Rs 1,11,56,778 crore.

Multi Commodity Exchange of India is the only listed bourse in the country.&nbsp;

(PTI)

BSE's initial public offer -- the first by a domestic stock exchange in India -- to raise up to Rs 1,243 crore was fully subscribed by the afternoon trade today, the second day of the offer. The IPO, which closes tomorrow, received bids for 1,08,89,568 shares against the total issue size of 1,07,99,039 shares, data available with the NSE till 1330 hrs showed. The stock exchange aims to raise up to Rs 1,243 crore from the IPO, which is priced at Rs 805-806 per share. During the initial share sale -- which is also a first by any company this year -- shareholders will sell 15.43 million shares estimated to be around Rs 1,243.44 crore at the higher end of the price band. The IPO of 15,427,197 shares of face value of Rs 2 each will constitute up to 28.26 per cent of the fully-diluted post offer issued share capital of BSE. Bids for the issue can be made for a minimum of 18 shares and in multiples of 18 thereafter. Last Friday BSE had raised Rs 373 crore by allotting shares to anchor investors. The IPO received bids for 1,08,89,568 shares against the total issue size of 1,07,99,039 shares (WION) × BSE shares will be listed on NSE as Sebi rules do not allow self-listing for an exchange. Capital market regulator Sebi had given its final go- ahead to the draft prospectus for the IPO on December 30. Meanwhile, rival NSE too filed draft papers with Sebi last month for an estimated Rs 10,000-crore IPO. Among the existing BSE, shareholders are Bajaj Holdings Investment, Caldwell India Holdings, Acacia Banyan Partners, Singapore Exchange, a Mauritius-based arm of American investor George Soros' Quantum Fund and foreign fund Atticus. There are an estimated 9,000 shareholders at BSE, where originally mostly brokers held shares. However, a host of foreign investors and domestic financial institutions have acquired shares over the years and the IPO will provide some of them an exit window to monetise their investments. The issue is being managed by Edelweiss Financial Services, Axis Capital, Jefferies India, Nomura Financial Advisory and Securities (India) Pvt, Motilal Oswal Investment Advisors, SBI Capital Markets and SMC Capitals. BSE is the world's largest exchange by the number of listed companies. It is India's largest and the world's 10th largest exchange by market capitalisation. The market capitalisation of BSE-listed companies stands at Rs 1,11,56,778 crore. Multi Commodity Exchange of India is the only listed bourse in the country. (PTI)

India: BSE's Rs 1,243 crore IPO fully subscribed

Chaiti Narula meets Grp Capt. Bali on Jaypee Greens Golf Course in Greater Noida. Capt Bali talks about Aviation Industry and Business Aviation Sector in India, the challenges, the opportunities and the technological developments.

Watch Chaiti Narula Tee off with Grp Capt. Bali, Managing Director of BAOA

Wall Street stocks finished slightly lower Monday as the new US President Donald&nbsp;Trump&nbsp;signaled he would take a tough line on&nbsp;international trade.&nbsp;

Trump&#39;s first order of business Monday was to sign an executive order officially withdrawing from the 12-nation Trans-Pacific Partnership.&nbsp;Trump&nbsp;also has also announced plans to renegotiate the North American Free Trade Agreement and his chief spokesman said the new president would not hesitate to confront China over the South China Sea.&nbsp;

US stocks rallied hard after&nbsp;Trump&#39;s surprise election win in the hopes he would lower taxes and reduce regulation, a promise he renewed on Monday. But markets have been worried the tough talk could lead to a trade war.

The Dow Jones Industrial Average&nbsp;lost 0.1 percent to close at 19,799.85.

The broad-based S&amp;P 500 dropped 0.3 percent to 2,265.20, while the tech-rich Nasdaq Composite Index&nbsp;slipped less than 0.1 percent to 5,552.94.

Qualcomm plunged 12.7&nbsp;percent following news it was sued by Apple for&nbsp;abusing its market power to demand unfair royalties, echoing charges filed days earlier by US antitrust regulators.&nbsp;Qualcomm rejected the claims and said Apple was mischaracterizing its practices.

Aetna dropped 2.7 percent and Humana gained 2.2 percent after a US judge blocked Aetna&#39;s proposed $37 billion takeover of its rival on antitrust grounds. Aetna would be forced to pay Humana $1 billion if the deal dies.

McDonald&#39;s shed 0.7 percent after reporting a slight dip in fourth-quarter earnings following 1.3 percent drop in US comparable sales. Sales in China, Japan and some other overseas markets offset the decline.

Energy shares were generally in retreat with lower oil prices, along with most pharmaceutical&nbsp;stocks. But some technology stocks pushed higher, including Google parent Alphabet, Facebook and Tesla Motors.

(AFP)

Trump signed an executive order officially withdrawing from the 12-nation Trans-Pacific Partnership on Monday

Wall Street stocks finished slightly lower Monday as the new US President Donald Trump signaled he would take a tough line on international trade. Trump's first order of business Monday was to sign an executive order officially withdrawing from the 12-nation Trans-Pacific Partnership. Trump also has also announced plans to renegotiate the North American Free Trade Agreement and his chief spokesman said the new president would not hesitate to confront China over the South China Sea. US stocks rallied hard after Trump's surprise election win in the hopes he would lower taxes and reduce regulation, a promise he renewed on Monday. But markets have been worried the tough talk could lead to a trade war. The Dow Jones Industrial Average lost 0.1 percent to close at 19,799.85. The broad-based S&P 500 dropped 0.3 percent to 2,265.20, while the tech-rich Nasdaq Composite Index slipped less than 0.1 percent to 5,552.94. Qualcomm plunged 12.7 percent following news it was sued by Apple for abusing its market power to demand unfair royalties, echoing charges filed days earlier by US antitrust regulators. Qualcomm rejected the claims and said Apple was mischaracterizing its practices. Aetna dropped 2.7 percent and Humana gained 2.2 percent after a US judge blocked Aetna's proposed $37 billion takeover of its rival on antitrust grounds. Aetna would be forced to pay Humana $1 billion if the deal dies. McDonald's shed 0.7 percent after reporting a slight dip in fourth-quarter earnings following 1.3 percent drop in US comparable sales. Sales in China, Japan and some other overseas markets offset the decline. Energy shares were generally in retreat with lower oil prices, along with most pharmaceutical stocks. But some technology stocks pushed higher, including Google parent Alphabet, Facebook and Tesla Motors. (AFP)

Wall Street stocks dip amid Trump's tough talk on trade

The world&#39;s biggest smartphone maker Samsung blamed faulty batteries on Monday for the fires that led to last year&#39;s humiliating recall of its flagship Galaxy Note 7 device.

Samsung Electronics was forced to discontinue the smartphone, originally intended to compete with Apple&#39;s iPhone, after a chaotic recall that saw replacement devices also catching fire.

The debacle cost the South Korean company billions in lost profit and reputational damage, in a torrid period which has also seen it embroiled in the corruption scandal that has resulted in President Park Geun-Hye&#39;s impeachment.

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<h5>Samsung did not identify the battery makers, but independent investigators UL and Exponent agreed with the findings</h5>
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Internal and independent investigations &quot;concluded that batteries were found to be the cause of the Note 7 incidents&quot;, Samsung said in a statement.

&quot;We sincerely apologise for the discomfort and concern we have caused to our customers,&quot; Koh Dong-Jin, the head of its mobile business, told reporters in Seoul.

Samsung Electronics is the most prominent unit of the giant Samsung group, South Korea&#39;s largest conglomerate with a revenue equivalent to about a fifth of the country&#39;s GDP.

It announced a recall of 2.5 million units of the oversized Galaxy Note 7 in September 2016 after several devices exploded or caught fire, with the company blaming batteries from a supplier, widely believed to be its sister firm Samsung SDI.

When replacement phones -- with batteries from another firm, largely thought to be Chinese manufacturer ATL -- also started to combust, the company eventually decided to kill off the Note 7 for good.

As many as 1.9 million of the phones were sold in the United States, where authorities banned the device from use on planes and even from being placed in checked luggage. Aviation authorities around the world issued similar prohibitions.

The firm has since embarked on a campaign to restore its battered reputation, issuing repeating apologies and putting full-page advertisements in prominent US newspapers including the Wall Street Journal, New York Times and Washington Post admitting that it &quot;fell short&quot; on its promises.

The next model in the series, the Galaxy Note 8, had been expected to be unveiled at next month&#39;s Mobile World Congress in Barcelona, but Koh said it would be delayed to ensure that it had no safety issues.

No legal action&nbsp;

Samsung deployed around 700 researchers and engineers on its investigation, testing more than 200,000 fully-assembled devices and more than 30,000 batteries, it said.

It did not identify the battery makers on Monday, but independent investigators UL and Exponent agreed with the findings.

Battery A had a design issue that pushed down the right corner of the battery, while Battery B had defective internal welds, said Kevin White, principal scientist at Exponent.

But Koh dismissed the possibility of suing the manufacturers. &quot;Whatever parts we use, the overall responsibility falls to us for failing to verify its safety and quality,&quot; he said. &quot;At this point, I don&#39;t think it&#39;s right to seek legal action.

Around 1,000 different parts from some 450 suppliers were needed for each Galaxy Note 7.

Samsung acknowledged that it provided the specifications for the batteries, adding in its statement: &quot;We have taken several corrective actions to ensure this never happens again. The lessons of the past several months are now deeply reflected in our processes and in our culture.&quot;

The fiasco took a major toll on the reputation of the firm, which is set to announce fourth-quarter and full-year results on Tuesday. It has estimated the cost of the recall at $5.3 billion, according to South Korea&#39;s Yonhap news agency.

Samsung Electronics shares were up 0.5 per cent at 1.87 million won in Seoul on Monday morning after the announcement.

The firm has separately been caught up in South Korea&#39;s wide-ranging political corruption scandal, with prosecutors last week seeking the arrest of its vice-chairman Lee Jae-Yong on charges of bribery, embezzlement and perjury.

Lee, who became Samsung&#39;s de facto head after his father suffered a heart attack in 2014, is accused of bribing Choi Soon-Sil, Park&#39;s secret confidante at the centre of the scandal, and receiving policy favours from Park in return.

Samsung is the single biggest contributor to two non-profit foundations controlled by Choi, but a court rejected the arrest request on grounds of insufficient evidence.

(AFP)

The company will not be suing the battery makers. 'The overall responsibility falls to us,' the company said

The world's biggest smartphone maker Samsung blamed faulty batteries on Monday for the fires that led to last year's humiliating recall of its flagship Galaxy Note 7 device. Samsung Electronics was forced to discontinue the smartphone, originally intended to compete with Apple's iPhone, after a chaotic recall that saw replacement devices also catching fire. The debacle cost the South Korean company billions in lost profit and reputational damage, in a torrid period which has also seen it embroiled in the corruption scandal that has resulted in President Park Geun-Hye's impeachment. Samsung did not identify the battery makers, but independent investigators UL and Exponent agreed with the findings × Internal and independent investigations "concluded that batteries were found to be the cause of the Note 7 incidents", Samsung said in a statement. "We sincerely apologise for the discomfort and concern we have caused to our customers," Koh Dong-Jin, the head of its mobile business, told reporters in Seoul. Samsung Electronics is the most prominent unit of the giant Samsung group, South Korea's largest conglomerate with a revenue equivalent to about a fifth of the country's GDP. It announced a recall of 2.5 million units of the oversized Galaxy Note 7 in September 2016 after several devices exploded or caught fire, with the company blaming batteries from a supplier, widely believed to be its sister firm Samsung SDI. When replacement phones -- with batteries from another firm, largely thought to be Chinese manufacturer ATL -- also started to combust, the company eventually decided to kill off the Note 7 for good. As many as 1.9 million of the phones were sold in the United States, where authorities banned the device from use on planes and even from being placed in checked luggage. Aviation authorities around the world issued similar prohibitions. The firm has since embarked on a campaign to restore its battered reputation, issuing repeating apologies and putting full-page advertisements in prominent US newspapers including the Wall Street Journal, New York Times and Washington Post admitting that it "fell short" on its promises. The next model in the series, the Galaxy Note 8, had been expected to be unveiled at next month's Mobile World Congress in Barcelona, but Koh said it would be delayed to ensure that it had no safety issues. No legal action Samsung deployed around 700 researchers and engineers on its investigation, testing more than 200,000 fully-assembled devices and more than 30,000 batteries, it said. It did not identify the battery makers on Monday, but independent investigators UL and Exponent agreed with the findings. Battery A had a design issue that pushed down the right corner of the battery, while Battery B had defective internal welds, said Kevin White, principal scientist at Exponent. But Koh dismissed the possibility of suing the manufacturers. "Whatever parts we use, the overall responsibility falls to us for failing to verify its safety and quality," he said. "At this point, I don't think it's right to seek legal action. Around 1,000 different parts from some 450 suppliers were needed for each Galaxy Note 7. Samsung acknowledged that it provided the specifications for the batteries, adding in its statement: "We have taken several corrective actions to ensure this never happens again. The lessons of the past several months are now deeply reflected in our processes and in our culture." The fiasco took a major toll on the reputation of the firm, which is set to announce fourth-quarter and full-year results on Tuesday. It has estimated the cost of the recall at $5.3 billion, according to South Korea's Yonhap news agency. Samsung Electronics shares were up 0.5 per cent at 1.87 million won in Seoul on Monday morning after the announcement. The firm has separately been caught up in South Korea's wide-ranging political corruption scandal, with prosecutors last week seeking the arrest of its vice-chairman Lee Jae-Yong on charges of bribery, embezzlement and perjury. Lee, who became Samsung's de facto head after his father suffered a heart attack in 2014, is accused of bribing Choi Soon-Sil, Park's secret confidante at the centre of the scandal, and receiving policy favours from Park in return. Samsung is the single biggest contributor to two non-profit foundations controlled by Choi, but a court rejected the arrest request on grounds of insufficient evidence. (AFP)

Samsung blames phone fires on batteries

India's education system is facing a real crisis, which is entirely of our own making. On WION Budget, we probe the issues concerning education in India and much more

WION Budget: Issues plaguing India's education sector

US&nbsp;stocks opened lower on Monday as investors around the world sought safe-haven assets such as gold and US&nbsp;Treasuries in response to the protectionist sentiments expressed by President Donald Trump in his inauguration speech.

The Dow Jones industrial average was down 27.99 points, or 0.14 per cent, at 19,799.26, the S&amp;P 500 was down 3.94 points, or 0.173468 per cent, at 2,267.37 and the Nasdaq composite was down 7.63 points, or 0.14 per cent, at 5,547.70.

The dollar slid broadly on Monday after US&nbsp;President Donald Trump struck a protectionist tone in his inauguration speech, undermining optimism over the US&nbsp;economy spurred by his promises of tax cuts and other stimulus.

Japan&#39;s Nikkei dropped 1.1 per cent while shares in Australia dropped 0.8 per cent after the Trump administration, on its first day in office, declared its intention to withdraw from the Trans-Pacific Partnership (TPP), a 12-nation trade pact that Japan and Australia also have signed up for.

US&nbsp;stock futures dipped 0.3 per cent, erasing gains made on Friday.

European shares were expected to fall, too, with spread-betters looking to a drop of 0.4 per cent in Britain&#39;s FTSE and 0.3 per cent in Germany&#39;s DAX.

Other Asian shares were more resilient, however, in part due to the dollar&#39;s weakness and a relief that there was no negative surprises, with Trump refraining from labelling China as a currency manipulator, for now, an accusation he made while campaigning.

&quot;At least, there was no negative news this weekend, like a border tax or the currency manipulator, even though they could come up in the future,&quot; said Yukino Yamada, senior strategist at Daiwa Securities.

MSCI&#39;s broadest index of Asia-Pacific shares outside Japan rose 0.3 per cent, with Taiwan shares leading the gains and coming just shy of 1-1/2-year highs.

In his inaugural address, Trump pledged to end what he called an &quot;American carnage&quot; of rusted factories and vowed to put &quot;America first&quot;, laying out two simple rules - buy American and hire American.

Trump also said on Sunday he plans talks soon with the leaders of Canada and Mexico to begin renegotiating the North American Free Trade Agreement (NAFTA).

&quot;The market is getting nervous about the possibility that the world&#39;s trade might shrink,&quot; said Koichi Yoshikawa, executive director of financial markets at Standard Chartered Bank in Tokyo.

&quot;Many of his policies, including tax cuts and infrastructure spending, need approval from the Senate and that (may not be) easy,&quot; he said. &quot;The markets that had been led by expectations on his policy since the election are now the dragged down by the reality.&quot;

The dollar had soared late last year on expectations that Trump&#39;s pledges to cut taxes and hike infrastructure spending would boost the US&nbsp;economy, spurring inflation and higher interest rates.

But optimism is starting to fade as details of his tax policies remained sketchy. It is not clear if the Congress will agree to any plan that could drastically increase budget deficits.

&quot;If all of Trump&#39;s tax proposals would be implemented, that alone would increase the deficit by more than two percentage points of GDP. It&#39;s questionable if the Republicans will agree to that. Any fiscal stimulus will be a mild one,&quot; said Hiroko Iwaki, senior strategist at Mizuho Securities.

The dollar fell as much as 1.2 per cent against the yen to 113.26 Yen, edging towards its seven-week low of 112.57 Yen touched on Wednesday.

The Euro gained 0.5 per cent to $1.0754, its highest level since December 8.

Emerging market currencies gained, with South African rand gaining 0.8 per cent.

The Mexican peso, which has weakened the most on Trump&#39;s protectionist and anti-immigration stance, rose 0.8 per cent to a two-week high of 21.415 per dollar.

The rise came after its 1.7 per cent gains on Friday, its biggest in two months.

Gold hit a two-month high of $1,219.3 per ounce.

The 10-year US&nbsp;Treasuries yield fell to 2.435 per cent, after having risen briefly on Friday to 2.513 per cent, its highest since January 3.

The two-year yield, which is more sensitive to the Fed&#39;s policy outlook, dropped sharply to 1.180 per cent from Thursday&#39;s three-week high of 1.250 per cent, giving back much of gains made after Wednesday&#39;s upbeat comments from Federal Reserve Chair Janet Yellen.

Oil steadied after Friday&#39;s gains, as support from statements over the weekend from OPEC and other producers that they have been successfully in implementing output cuts were offset by a surge in US&nbsp;drilling.

International benchmark Brent crude futures stood at $55.47 per barrel, little changed after Friday&#39;s 2.5 per cent gains.

(Reuters)

The Dow Jones industrial average was down 27.99 points at 19,799.26 and the S&P 500 was down 3.94 points at 2,267.37

US stocks opened lower on Monday as investors around the world sought safe-haven assets such as gold and US Treasuries in response to the protectionist sentiments expressed by President Donald Trump in his inauguration speech. The Dow Jones industrial average was down 27.99 points, or 0.14 per cent, at 19,799.26, the S&P 500 was down 3.94 points, or 0.173468 per cent, at 2,267.37 and the Nasdaq composite was down 7.63 points, or 0.14 per cent, at 5,547.70. The dollar slid broadly on Monday after US President Donald Trump struck a protectionist tone in his inauguration speech, undermining optimism over the US economy spurred by his promises of tax cuts and other stimulus. Japan's Nikkei dropped 1.1 per cent while shares in Australia dropped 0.8 per cent after the Trump administration, on its first day in office, declared its intention to withdraw from the Trans-Pacific Partnership (TPP), a 12-nation trade pact that Japan and Australia also have signed up for. US stock futures dipped 0.3 per cent, erasing gains made on Friday. European shares were expected to fall, too, with spread-betters looking to a drop of 0.4 per cent in Britain's FTSE and 0.3 per cent in Germany's DAX. Other Asian shares were more resilient, however, in part due to the dollar's weakness and a relief that there was no negative surprises, with Trump refraining from labelling China as a currency manipulator, for now, an accusation he made while campaigning. "At least, there was no negative news this weekend, like a border tax or the currency manipulator, even though they could come up in the future," said Yukino Yamada, senior strategist at Daiwa Securities. MSCI's broadest index of Asia-Pacific shares outside Japan rose 0.3 per cent, with Taiwan shares leading the gains and coming just shy of 1-1/2-year highs. In his inaugural address, Trump pledged to end what he called an "American carnage" of rusted factories and vowed to put "America first", laying out two simple rules - buy American and hire American. Trump also said on Sunday he plans talks soon with the leaders of Canada and Mexico to begin renegotiating the North American Free Trade Agreement (NAFTA). "The market is getting nervous about the possibility that the world's trade might shrink," said Koichi Yoshikawa, executive director of financial markets at Standard Chartered Bank in Tokyo. "Many of his policies, including tax cuts and infrastructure spending, need approval from the Senate and that (may not be) easy," he said. "The markets that had been led by expectations on his policy since the election are now the dragged down by the reality." The dollar had soared late last year on expectations that Trump's pledges to cut taxes and hike infrastructure spending would boost the US economy, spurring inflation and higher interest rates. But optimism is starting to fade as details of his tax policies remained sketchy. It is not clear if the Congress will agree to any plan that could drastically increase budget deficits. "If all of Trump's tax proposals would be implemented, that alone would increase the deficit by more than two percentage points of GDP. It's questionable if the Republicans will agree to that. Any fiscal stimulus will be a mild one," said Hiroko Iwaki, senior strategist at Mizuho Securities. The dollar fell as much as 1.2 per cent against the yen to 113.26 Yen, edging towards its seven-week low of 112.57 Yen touched on Wednesday. The Euro gained 0.5 per cent to $1.0754, its highest level since December 8. Emerging market currencies gained, with South African rand gaining 0.8 per cent. The Mexican peso, which has weakened the most on Trump's protectionist and anti-immigration stance, rose 0.8 per cent to a two-week high of 21.415 per dollar. The rise came after its 1.7 per cent gains on Friday, its biggest in two months. Gold hit a two-month high of $1,219.3 per ounce. The 10-year US Treasuries yield fell to 2.435 per cent, after having risen briefly on Friday to 2.513 per cent, its highest since January 3. The two-year yield, which is more sensitive to the Fed's policy outlook, dropped sharply to 1.180 per cent from Thursday's three-week high of 1.250 per cent, giving back much of gains made after Wednesday's upbeat comments from Federal Reserve Chair Janet Yellen. Oil steadied after Friday's gains, as support from statements over the weekend from OPEC and other producers that they have been successfully in implementing output cuts were offset by a surge in US drilling. International benchmark Brent crude futures stood at $55.47 per barrel, little changed after Friday's 2.5 per cent gains. (Reuters)

Wall Street opens lower, global shares wobbly after Trump's protectionist address

India pushed ahead with its decision to scrap banknotes even as the Reserve Bank of India&#39;s (RBI) own board expressed concern whether the cash could be replaced quickly enough, the central bank has said in written testimony to parliament.

The revelation comes amid growing criticism about whether the central bank and the government had sufficiently assessed the potential fallout from the November 8 ban of about 86 per cent of the cash then in circulation.

Prime Minister Narendra Modi&#39;s shock move caused a severe cash shortage that brought large parts of the economy to a virtual standstill, as the central bank struggled to print new 500-rupee and 2,000-rupee notes to replace the old currency.

A copy of the private testimony to a parliament panel, seen by Reuters, showed the central bank had also warned the government of &quot;possible inconvenience to the public for some time,&quot; among the potential consequences of the massive exercise.

Despite its own doubts, the testimony showed, the RBI board approved the plan to ban 500-rupee and 1,000-rupee notes, as it believed the move would rein in counterfeiting and reliance on cash, and pull unaccounted cash into the financial system.

&quot;It might not immediately be possible to replace these notes fully in terms of both value and volume,&quot; the board felt at a meeting ahead of Modi&#39;s November 8 announcement, according to the central bank submission.

But the RBI&#39;s board ultimately believed that &quot;corrective&quot; action could be taken and decided to recommend the move, the document showed. The RBI also believed the impact of such an exercise would be &quot;transitory&quot;, given its efforts to quickly replace the old notes, it said in the testimony.

The RBI&#39;s endorsement of the government action has drawn strong criticism from several former policymakers, including former Prime Minister Manmohan Singh, the architect of India&#39;s 1991 financial reforms and a former central bank governor.

The document also notes the proposal to ban the cash had come from the government, in a letter a day before the announcement that advised the RBI to &quot;immediately&quot; put the plan before its board for approval.

Under India&#39;s RBI Act, such a move was necessary.

The central bank did not immediately respond to Reuters` request for comments on its submission to parliament.

&quot;Painful&quot; for RBI

Since Modi declared the ban, the central bank has been forced to announce a barrage of measures to soften the impact, including several high-profile reversals, undermining confidence in it.

In a letter to RBI Governor Urjit Patel, unions of central bank employees called such criticism &quot;painful&quot;, and accused the government of steering decisions behind the replacement of the banned notes, saying that &quot;blatantly encroaches&quot; on the central bank&#39;s jurisdiction.

The government, however, has denied it was taking the decisions during the implementation, saying that it was merely cooperating with the RBI and reiterating that it fully respected the autonomy of the central bank.

Power and Coal Minister Piyush Goyal said such cooperation was necessary, since it involved an unprecedented &quot;exercise&quot; and that the flurry of action showed India`s flexibility in taking the necessary measures.&nbsp;

&quot;They never had got an experience of this kind of a war-type situation,&quot; Goyal said, referring to the RBI. &quot;So, every organization which is doing this is doing it for the first time. You will learn as you go along.&quot;

Previous banknote bans have not had such a dramatic impact as they removed only a small fraction of cash from circulation.&nbsp;

(Reuters) 
&nbsp;

The RBI clarified that it ultimately believed that 'corrective' action could be taken and decided to recommend the move

India pushed ahead with its decision to scrap banknotes even as the Reserve Bank of India's (RBI) own board expressed concern whether the cash could be replaced quickly enough, the central bank has said in written testimony to parliament. The revelation comes amid growing criticism about whether the central bank and the government had sufficiently assessed the potential fallout from the November 8 ban of about 86 per cent of the cash then in circulation. Prime Minister Narendra Modi's shock move caused a severe cash shortage that brought large parts of the economy to a virtual standstill, as the central bank struggled to print new 500-rupee and 2,000-rupee notes to replace the old currency. A copy of the private testimony to a parliament panel, seen by Reuters, showed the central bank had also warned the government of "possible inconvenience to the public for some time," among the potential consequences of the massive exercise. Despite its own doubts, the testimony showed, the RBI board approved the plan to ban 500-rupee and 1,000-rupee notes, as it believed the move would rein in counterfeiting and reliance on cash, and pull unaccounted cash into the financial system. "It might not immediately be possible to replace these notes fully in terms of both value and volume," the board felt at a meeting ahead of Modi's November 8 announcement, according to the central bank submission. But the RBI's board ultimately believed that "corrective" action could be taken and decided to recommend the move, the document showed. The RBI also believed the impact of such an exercise would be "transitory", given its efforts to quickly replace the old notes, it said in the testimony. The RBI's endorsement of the government action has drawn strong criticism from several former policymakers, including former Prime Minister Manmohan Singh, the architect of India's 1991 financial reforms and a former central bank governor. The document also notes the proposal to ban the cash had come from the government, in a letter a day before the announcement that advised the RBI to "immediately" put the plan before its board for approval. Under India's RBI Act, such a move was necessary. The central bank did not immediately respond to Reuters` request for comments on its submission to parliament. "Painful" for RBI Since Modi declared the ban, the central bank has been forced to announce a barrage of measures to soften the impact, including several high-profile reversals, undermining confidence in it. In a letter to RBI Governor Urjit Patel, unions of central bank employees called such criticism "painful", and accused the government of steering decisions behind the replacement of the banned notes, saying that "blatantly encroaches" on the central bank's jurisdiction. The government, however, has denied it was taking the decisions during the implementation, saying that it was merely cooperating with the RBI and reiterating that it fully respected the autonomy of the central bank. Power and Coal Minister Piyush Goyal said such cooperation was necessary, since it involved an unprecedented "exercise" and that the flurry of action showed India`s flexibility in taking the necessary measures. "They never had got an experience of this kind of a war-type situation," Goyal said, referring to the RBI. "So, every organization which is doing this is doing it for the first time. You will learn as you go along." Previous banknote bans have not had such a dramatic impact as they removed only a small fraction of cash from circulation. (Reuters)

Govt went ahead with demonetisation despite 'central bank concerns'

The agriculture industry is on a stuttering rut. On one hand the prices are rising and on the other hand, the Indian farmer is distressed for not able to recover even the cost of their produce

The qualms of the Indian farmer

China&#39;s economy sprang a surprise in its last quarter as the economy grew at more-than-expected 6.8 per cent on year driven by government spending and record bank lending, Reuters reported.

The economy expanded at 6.7 per cent in 2016, according to the National Bureau of Statistics, roughly in the middle of the government&#39;s 6.5-7 per cent growth target but still the slowest pace in 26 years.

But Beijing&#39;s decision to double down on spending to meet its official growth target may have come at a high price, as policymakers will have their hands full this year trying to defuse financial risks created by an explosive growth in debt.

The world&#39;s second-largest economy also faces increased uncertainties from a cooling housing market and the government&#39;s bid to push through painful structural reforms, which could help deal with the root-cause of rising debt and housing problems but weigh on near-term growth.

Economists polled by Reuters had expected China would report 6.7 per cent growth for both the fourth quarter and the full year.&nbsp;

The economy grew 6.7 per cent in the third quarter.

While China is on more solid economic footing than this time last year, it faces increasing uncertainties in 2017, with a housing frenzy showing signs of cooling and the impact of previous stimulus measures expected to fade.

China&#39;s sluggish exports also could come under fresh pressure if US President-elect Donald Trump follows through on pledges to impose tough protectionist measures.

&quot;While Chinese growth looks stable into early 2017, a more marked slowdown by the second quarter appears inevitable,&quot; Gene Frieda, global emerging markets strategist at asset management giant PIMCO, said in a note this week.

The head of economic planning said last week that conditions have been generally stable at the start of 2017, continuing the &quot;steadying and good&quot; momentum from the second half of 2016.&nbsp;

Amid those reassuring signs of stabilisation, policy sources told Reuters that China&#39;s leaders will lower their economic growth target to around 6.5 percent this year, giving them more room to push reforms to contain debt risks.

(Reuters)

China's exports could come under pressure if US President-elect Trump follows through on his pledge to impose protectionist measures

China's economy sprang a surprise in its last quarter as the economy grew at more-than-expected 6.8 per cent on year driven by government spending and record bank lending, Reuters reported. The economy expanded at 6.7 per cent in 2016, according to the National Bureau of Statistics, roughly in the middle of the government's 6.5-7 per cent growth target but still the slowest pace in 26 years. But Beijing's decision to double down on spending to meet its official growth target may have come at a high price, as policymakers will have their hands full this year trying to defuse financial risks created by an explosive growth in debt. The world's second-largest economy also faces increased uncertainties from a cooling housing market and the government's bid to push through painful structural reforms, which could help deal with the root-cause of rising debt and housing problems but weigh on near-term growth. Economists polled by Reuters had expected China would report 6.7 per cent growth for both the fourth quarter and the full year. The economy grew 6.7 per cent in the third quarter. While China is on more solid economic footing than this time last year, it faces increasing uncertainties in 2017, with a housing frenzy showing signs of cooling and the impact of previous stimulus measures expected to fade. China's sluggish exports also could come under fresh pressure if US President-elect Donald Trump follows through on pledges to impose tough protectionist measures. "While Chinese growth looks stable into early 2017, a more marked slowdown by the second quarter appears inevitable," Gene Frieda, global emerging markets strategist at asset management giant PIMCO, said in a note this week. The head of economic planning said last week that conditions have been generally stable at the start of 2017, continuing the "steadying and good" momentum from the second half of 2016. Amid those reassuring signs of stabilisation, policy sources told Reuters that China's leaders will lower their economic growth target to around 6.5 percent this year, giving them more room to push reforms to contain debt risks. (Reuters)

China's GDP grows at 6.8% in Q4 buoyed by govt spending, bank credit

The Public Accounts Committee (PAC) of the Indian Parliament headed by KV Thomas grilled the Governor of Reserve Bank of India on Friday. Highly placed sources confirmed to WION that when members asked Urjit Patel as to who took the decision for demonetisation, Urjit Patel chose to remain silent.&nbsp;

PAC also saw a&nbsp;heated debate between the opposition and ruling party members as some members said that committee meeting was on the state of the&nbsp;economy and not demonetisation per say. Sources also said that there were many questions on demonetisation on which Urjit Patel chose to remain silent or gave general answers.

The committee members also asked the RBI governor to look into cases of irregular deposits in the cooperative banks of which he took note of. Some members also requested the RBI that it must look into the issue of cess which is charged when a digital transaction takes place. The members were of the opinion that the current reprieve should continue till things normalise in the economic system.

Sources said that Patel will be called again for questioning as many questions remained answered. Both the PAC and the Standing Committee of Finance are looking into the issue of demonetisation. 
 
(WION)

Highly placed sources told WION that Urjit Patel chose to remain silent or gave generic replies to several questions

The Public Accounts Committee (PAC) of the Indian Parliament headed by KV Thomas grilled the Governor of Reserve Bank of India on Friday. Highly placed sources confirmed to WION that when members asked Urjit Patel as to who took the decision for demonetisation, Urjit Patel chose to remain silent. PAC also saw a heated debate between the opposition and ruling party members as some members said that committee meeting was on the state of the economy and not demonetisation per say. Sources also said that there were many questions on demonetisation on which Urjit Patel chose to remain silent or gave general answers. The committee members also asked the RBI governor to look into cases of irregular deposits in the cooperative banks of which he took note of. Some members also requested the RBI that it must look into the issue of cess which is charged when a digital transaction takes place. The members were of the opinion that the current reprieve should continue till things normalise in the economic system. Sources said that Patel will be called again for questioning as many questions remained answered. Both the PAC and the Standing Committee of Finance are looking into the issue of demonetisation. (WION)

India's central bank chief remains mum during demonetisation grilling