The Indian Army will start training 100 women soldiers from December this year for their eventual induction into the Corps of Military Police.

The training period will be of 61 weeks, same as that for male soldiers. The Army plans to train 100 soldiers every year until it reaches a cadre strength of 1,700.

Army sources told ANI on Monday that the cadre will be maintained at 1,700 unless and until reviewed.

"Wastage, as we call it due to various reasons including medical, will be catered for during future inductions as we go along," they said.

This comes even as Colonel Commandant of the Military Police, Lt Gen Ashwani Kumar interviewed Lt Col Nandani in Srinagar for the role of instructor.

The Army has dug deep for the selection of instructors for training women soldiers in the force.

"The first batch is most important to us as it will lay down the foundation for generations to come. Another officer is Maj Julie who was an instructor to the first batch of women constables in Assam Rifles," Lt Gen Kumar, Adjutant General of the Indian Army, said.

On August 28, ANI had reported that preparations are underway for receiving and training the first-ever batch of women soldiers in the Corps of Military Police.

The decks for the induction were cleared in January this year after then Defence Minister Nirmala Sitharaman announced that the government has taken a "historic" decision to induct women in the Military Police with an aim to enhancing their representation in the three services.

Women will be inducted in a graded manner to eventually comprise 20 per cent of the total Corps of Military Police and their role would range from probing crime cases to assisting the Army in field operations wherever required.

Last year, Army Chief Gen Bipin Rawat had said the process to allow women in a combat role, currently, an exclusive domain of men was moving fast and initially, women will be recruited for positions in the Military Police.

Currently, women are allowed in select areas such as medical, legal, educational, signals and engineering wings of the Army.

The role of the Military Police includes policing cantonments and Army establishments, preventing the breach of rules and regulations by soldiers, maintaining movement of soldiers as well as logistics during peace and war, handling prisoners of war and extending aid to civil police.

As per government data, the Army has 3.80 per cent of its workforce as women, the Air Force has 13.09 per cent and the Navy 6 per cent.

The Indian Army will start training 100 women soldiers from December this year for their eventual induction into the Corps of Military Police. The training period will be of 61 weeks, same as that for male soldiers.

The Indian Army will start training 100 women soldiers from December this year for their eventual induction into the Corps of Military Police. The training period will be of 61 weeks, same as that for male soldiers. The Army plans to train 100 soldiers every year until it reaches a cadre strength of 1,700. Army sources told ANI on Monday that the cadre will be maintained at 1,700 unless and until reviewed. "Wastage, as we call it due to various reasons including medical, will be catered for during future inductions as we go along," they said. This comes even as Colonel Commandant of the Military Police, Lt Gen Ashwani Kumar interviewed Lt Col Nandani in Srinagar for the role of instructor. The Army has dug deep for the selection of instructors for training women soldiers in the force. "The first batch is most important to us as it will lay down the foundation for generations to come. Another officer is Maj Julie who was an instructor to the first batch of women constables in Assam Rifles," Lt Gen Kumar, Adjutant General of the Indian Army, said. On August 28, ANI had reported that preparations are underway for receiving and training the first-ever batch of women soldiers in the Corps of Military Police. The decks for the induction were cleared in January this year after then Defence Minister Nirmala Sitharaman announced that the government has taken a "historic" decision to induct women in the Military Police with an aim to enhancing their representation in the three services. Women will be inducted in a graded manner to eventually comprise 20 per cent of the total Corps of Military Police and their role would range from probing crime cases to assisting the Army in field operations wherever required. Last year, Army Chief Gen Bipin Rawat had said the process to allow women in a combat role, currently, an exclusive domain of men was moving fast and initially, women will be recruited for positions in the Military Police. Currently, women are allowed in select areas such as medical, legal, educational, signals and engineering wings of the Army. The role of the Military Police includes policing cantonments and Army establishments, preventing the breach of rules and regulations by soldiers, maintaining movement of soldiers as well as logistics during peace and war, handling prisoners of war and extending aid to civil police. As per government data, the Army has 3.80 per cent of its workforce as women, the Air Force has 13.09 per cent and the Navy 6 per cent.

Indian Army to start training 100 women soldiers from December

Union Finance Minister Nirmala Sitharaman on Sunday allayed the concerns of job losses in the wake of the <a href="https://www.wionews.com/business-economy/finance-minister-nirmala-sitharaman-announces-4-state-run-banks-mergers-246642">merger of public banks</a>.

"Absolutely ill-informed. I want to assure every union in each one of these banks to recall what I said last Friday. When we spoke about the amalgamation of banks, each time I have very clearly underlined the fact that not even one employee shall be removed," she said while addressing media persons here.

"We are not looking at any employee being removed. I am reiterating that. Therefore, they need not have any concern on this issue," said the Finance Minister, adding that there is no closure of any bank. "No bank is being asked to do something different from what they were doing earlier," she added.

On Friday, the Central government announced the merger of 10 public sector banks (PSBs) into four strong lenders with countrywide networks and global reach to boost credit and revive economic growth in the nation's bid to become a five trillion dollar economy in the next five years.

After this, the total number of PSBs will come down to 12 from 24 banks, Finance Minister Sitharaman had said. Apart from this, the government had also announced Rs 55,250 crore upfront as capital infusion in the PSBs.

Talking about the economy, which reported a sluggish growth of 5 per cent in the last quarter of the current financial year, Sitharaman said that her government was prepared to respond to the industry's "needs and suggestions."

When asked if the government acknowledges there is a slowdown in the economy, she said: "I am meeting industries and taking their inputs, suggestions on what they want and expect from government. I am responding to them. I have already done this twice. I will do it more number of times so that every industry which has approached me, I will respond."

"Across the board there is no one particular answer that I can give, saying this is the magic wand. Sectorally, what they want, we are responding.

Agriculture, for instance, after this monsoon hopefully, overall we feel that monsoon will meet the basic requirement of agriculture. Even for the farming sector, we have consultations going on. I am sure we will able to respond to them also," she said.

She said that the government is in consultation with sectors which wanted to speak to us about various measures they expect. "Having heard them and having spent some time on how we can respond, the first tranche of announcements were made on August 23. Last Friday, I made another set of announcements. The process of consultations is over. We have worked on how we can respond," she said.

The Finance Minister said the issues of each sector vary. "Automobile (sector) has an issue. Agriculture has a different issue. So each sector has a sectoral requirement, which we want to respond," she said.

Earlier in the day, former Prime Minister hit out at Prime Minister Narendra Modi led BJP government at the Centre, alleging that its "all-round mismanagement" is responsible for the "worrisome" state of the economy.

"The state of the economy today is deeply worrying. The last quarter's GDP growth rate of 5 per cent signals that we are in the midst of a prolonged slowdown. India has the potential to grow at a much faster rate but all-round mismanagement by the Modi government has resulted in this slowdown," said Singh in a statement.

"Our youth, farmers and farmworkers, entrepreneurs and the marginalised sections deserve better. India cannot afford to continue down this path. Therefore, I urge the government to put aside vendetta politics, and reach out to all sane voices and thinking minds, to steer our economy out of this man-made crisis," Singh added.

Union Finance Minister Nirmala Sitharaman on Sunday allayed the concerns of job losses in the wake of the merger of public banks. "Absolutely ill-informed. I want to assure every union in each one of these banks to recall what I said last Friday.

Union Finance Minister Nirmala Sitharaman on Sunday allayed the concerns of job losses in the wake of the merger of public banks. "Absolutely ill-informed. I want to assure every union in each one of these banks to recall what I said last Friday. When we spoke about the amalgamation of banks, each time I have very clearly underlined the fact that not even one employee shall be removed," she said while addressing media persons here. "We are not looking at any employee being removed. I am reiterating that. Therefore, they need not have any concern on this issue," said the Finance Minister, adding that there is no closure of any bank. "No bank is being asked to do something different from what they were doing earlier," she added. On Friday, the Central government announced the merger of 10 public sector banks (PSBs) into four strong lenders with countrywide networks and global reach to boost credit and revive economic growth in the nation's bid to become a five trillion dollar economy in the next five years. After this, the total number of PSBs will come down to 12 from 24 banks, Finance Minister Sitharaman had said. Apart from this, the government had also announced Rs 55,250 crore upfront as capital infusion in the PSBs. Talking about the economy, which reported a sluggish growth of 5 per cent in the last quarter of the current financial year, Sitharaman said that her government was prepared to respond to the industry's "needs and suggestions." When asked if the government acknowledges there is a slowdown in the economy, she said: "I am meeting industries and taking their inputs, suggestions on what they want and expect from government. I am responding to them. I have already done this twice. I will do it more number of times so that every industry which has approached me, I will respond." "Across the board there is no one particular answer that I can give, saying this is the magic wand. Sectorally, what they want, we are responding. Agriculture, for instance, after this monsoon hopefully, overall we feel that monsoon will meet the basic requirement of agriculture. Even for the farming sector, we have consultations going on. I am sure we will able to respond to them also," she said. She said that the government is in consultation with sectors which wanted to speak to us about various measures they expect. "Having heard them and having spent some time on how we can respond, the first tranche of announcements were made on August 23. Last Friday, I made another set of announcements. The process of consultations is over. We have worked on how we can respond," she said. The Finance Minister said the issues of each sector vary. "Automobile (sector) has an issue. Agriculture has a different issue. So each sector has a sectoral requirement, which we want to respond," she said. Earlier in the day, former Prime Minister hit out at Prime Minister Narendra Modi led BJP government at the Centre, alleging that its "all-round mismanagement" is responsible for the "worrisome" state of the economy. "The state of the economy today is deeply worrying. The last quarter's GDP growth rate of 5 per cent signals that we are in the midst of a prolonged slowdown. India has the potential to grow at a much faster rate but all-round mismanagement by the Modi government has resulted in this slowdown," said Singh in a statement. "Our youth, farmers and farmworkers, entrepreneurs and the marginalised sections deserve better. India cannot afford to continue down this path. Therefore, I urge the government to put aside vendetta politics, and reach out to all sane voices and thinking minds, to steer our economy out of this man-made crisis," Singh added.

Finance minister Nirmala Sitharaman allays concerns of job losses over merger of public sector banks

<a href="https://www.wionews.com/business-economy/gdp-growth-falls-to-5-per-cent-in-in-april-june-2019-246664">India's GDP growth falls to 5 per cent in April-June 2019</a>

India's GDP growth slowed down to 5 per cent in the first quarter of the financial year FY20 indicating that that slowdown in the Indian economy persists.

<a href="https://www.wionews.com/business-economy/finance-minister-nirmala-sitharaman-announces-4-state-run-banks-mergers-246642">Mega bank reforms: Finance Minister Nirmala Sitharaman announces 4 state-run banks mergers</a>

Finance Minister Nirmala Sithraman on Friday announced four state-run banks mergers. India will now have 12 Public Sector Banks from 27.

<a href="https://www.wionews.com/world/brexit-endgame-its-pm-boris-johnson-versus-parliament-in-historic-showdown-246685">Brexit endgame: It's PM Boris Johnson versus parliament in historic showdown</a>

After more than 1,000 days of political brawling, hordes of headlines and dizzying lurches in sterling, the battle of Brexit enters the endgame.

<a href="https://www.wionews.com/world/warsaw-washington-agree-on-locations-for-new-us-troops-in-poland-defence-minister-246680">Warsaw, Washington agree on locations for new US troops in Poland: Defence minister</a>

Warsaw and Washington have agreed on six locations for new US troops to be stationed in Poland, the country's Defence Minister Mariusz Blaszczak said on Friday, a day after Donald Trump cancelled a trip to the eastern European nation.

<a href="https://www.wionews.com/world/hong-kong-mass-rally-called-off-as-pro-democracy-lawmaker-arrested-in-protest-crackdown-246649">Hong Kong: Mass rally called-off as pro-democracy lawmaker arrested in protest crackdown</a>

Prominent Hong Kong democracy activists including a lawmaker were arrested Friday in a protest crackdown -- a move described by rights groups as a well-worn tactic deployed by China to suffocate dissent ahead of key political events.

&nbsp;

India's GDP growth falls to 5 per cent in April-June 2019 India's GDP growth slowed down to 5 per cent in the first quarter of the financial year FY20 indicating that that slowdown in the Indian economy persists.

India's GDP growth falls to 5 per cent in April-June 2019 India's GDP growth slowed down to 5 per cent in the first quarter of the financial year FY20 indicating that that slowdown in the Indian economy persists. Mega bank reforms: Finance Minister Nirmala Sitharaman announces 4 state-run banks mergers Finance Minister Nirmala Sithraman on Friday announced four state-run banks mergers. India will now have 12 Public Sector Banks from 27. Brexit endgame: It's PM Boris Johnson versus parliament in historic showdown After more than 1,000 days of political brawling, hordes of headlines and dizzying lurches in sterling, the battle of Brexit enters the endgame. Warsaw, Washington agree on locations for new US troops in Poland: Defence minister Warsaw and Washington have agreed on six locations for new US troops to be stationed in Poland, the country's Defence Minister Mariusz Blaszczak said on Friday, a day after Donald Trump cancelled a trip to the eastern European nation. Hong Kong: Mass rally called-off as pro-democracy lawmaker arrested in protest crackdown Prominent Hong Kong democracy activists including a lawmaker were arrested Friday in a protest crackdown -- a move described by rights groups as a well-worn tactic deployed by China to suffocate dissent ahead of key political events.

News brief: Big stories of the day

<a href="https://www.wionews.com/india-news/sitharaman-gives-mantra-of-restraint-to-tax-collectors-but-says-deadlines-are-realistic-246076">Finance Minister Nirmala Sithraman</a> on Friday announced four state-run banks mergers.&nbsp;India will now have 12 Public Sector Banks from 27.

While Punjab National Bank, Oriental Bank of Commerce and United Bank will merge, Sitharaman announced merger plans of three other PSU banks.

Canara Bank and Syndicate Bank will merge; Union Bank of India, Andhra Bank and Corporation Bank will come together while Indian bank will merge with Allahabad Bank.

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Finance Minister Nirmala Sitharaman: Punjab National Bank, Oriental Bank of Commerce and United Bank will be brought together and they shall form the second largest public sector bank with business of Rs 17.95 Lakh Crore. <a href="https://t.co/QhFCMVq2Gn">pic.twitter.com/QhFCMVq2Gn</a>
— ANI (@ANI) <a href="https://twitter.com/ANI/status/1167392602284412928?ref_src=twsrc%5Etfw">August 30, 2019</a></blockquote>
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Together, Punjab National Bank, Oriental Bank of Commerce and United Bank merger shall form the second largest public sector bank with the business of Rs 17.95 Lakh Crore, Sitharaman added.&nbsp;

The Canara Bank merger with Syndicate Bank will be the fourth largest Public Sector Bank with a business of Rs 15.20 lakh crores.

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Finance Minister Nirmala Sitharaman: Canara Bank with (merge) Syndicate Bank, they will be the fourth largest Public Sector Bank with business of Rs 15.20 lakh crores. <a href="https://t.co/nRshTrYLxS">pic.twitter.com/nRshTrYLxS</a>
— ANI (@ANI) <a href="https://twitter.com/ANI/status/1167393394982674432?ref_src=twsrc%5Etfw">August 30, 2019</a></blockquote>
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The merger between Union Bank of India, Andhra Bank and Corporation Bank shall become the fifth largest public sector bank now whereas Indian Bank amalgamation with Allahabad Bank will be the seventh-largest Public Sector Bank with a business amounting to Rs 8.08 lakh crores.

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Finance Minister Nirmala Sitharaman: Indian Bank with (merge) Allahabad Bank, they will be the seventh largest Public Sector Bank with business of Rs 8.08 lakh crores. <a href="https://t.co/4cFafOybzH">pic.twitter.com/4cFafOybzH</a>
— ANI (@ANI) <a href="https://twitter.com/ANI/status/1167393736105455618?ref_src=twsrc%5Etfw">August 30, 2019</a></blockquote>
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During her address, the finance minister stated that the Gross Non Performing Assets have come down from 8.65 lakh crores to 7.90 lakh crores.

"Specialised agencies have been set up who are monitoring every loan which is over Rs 250 crores," she said, adding that loan recoveries have hit a recover level of Rs.1,21,076 crore.

Finance secretary Rajeev Kumar said that there has been no retrenchment so far and that there is no of the same.&nbsp;

"The benefits of employment and HR will improve, with amalgamation the best combination will be taken up," he said.&nbsp;

Just yesterday, the Reserve Bank of India in its annual report revealed that&nbsp;the number of <a href="https://www.wionews.com/business-economy/bank-frauds-climb-by-74-to-rs-71543-crore-in-fy19-rbi-annual-report-246433">frauds reported by banks has shot</a> up by 15 per cent in the financial 2018-19 on a year-on-year basis.&nbsp;

The amount involved in such frauds rose by 73.8 per cent, though mostly related to occurrences in earlier years.&nbsp;The banking sector reported 6,801 frauds involving Rs 71,542.93 crore in the financial year 2018-19 as opposed to 5,916 cases involving Rs 41,167.04 crore reported in the previous financial year.

"The average lag between the date of occurrence and its detection by banks was 22 months," while the "average lag for large frauds, i.e. Rs 1 billion and above, amounting to Rs 522 billion reported during 2018-19, was 55 months," the top bank stated in its report which was uploaded on its website.&nbsp;

The bulk of frauds reported in 2018-19 come from bank groups PSBs that constitute the largest market share in bank lending, followed by private sector banks and foreign banks.&nbsp;

Finance Minister Nirmala Sithraman on Friday announced four state-run banks mergers. India will now have 12 Public Sector Banks from 27. While Punjab National Bank, Oriental Bank of Commerce and United Bank will merge, Sitharaman announced merger plans of three other PSU banks.

Finance Minister Nirmala Sithraman on Friday announced four state-run banks mergers. India will now have 12 Public Sector Banks from 27. While Punjab National Bank, Oriental Bank of Commerce and United Bank will merge, Sitharaman announced merger plans of three other PSU banks. Canara Bank and Syndicate Bank will merge; Union Bank of India, Andhra Bank and Corporation Bank will come together while Indian bank will merge with Allahabad Bank. Finance Minister Nirmala Sitharaman: Punjab National Bank, Oriental Bank of Commerce and United Bank will be brought together and they shall form the second largest public sector bank with business of Rs 17.95 Lakh Crore. pic.twitter.com/QhFCMVq2Gn — ANI (@ANI) August 30, 2019 × Together, Punjab National Bank, Oriental Bank of Commerce and United Bank merger shall form the second largest public sector bank with the business of Rs 17.95 Lakh Crore, Sitharaman added. The Canara Bank merger with Syndicate Bank will be the fourth largest Public Sector Bank with a business of Rs 15.20 lakh crores. Finance Minister Nirmala Sitharaman: Canara Bank with (merge) Syndicate Bank, they will be the fourth largest Public Sector Bank with business of Rs 15.20 lakh crores. pic.twitter.com/nRshTrYLxS — ANI (@ANI) August 30, 2019 × The merger between Union Bank of India, Andhra Bank and Corporation Bank shall become the fifth largest public sector bank now whereas Indian Bank amalgamation with Allahabad Bank will be the seventh-largest Public Sector Bank with a business amounting to Rs 8.08 lakh crores. Finance Minister Nirmala Sitharaman: Indian Bank with (merge) Allahabad Bank, they will be the seventh largest Public Sector Bank with business of Rs 8.08 lakh crores. pic.twitter.com/4cFafOybzH — ANI (@ANI) August 30, 2019 × During her address, the finance minister stated that the Gross Non Performing Assets have come down from 8.65 lakh crores to 7.90 lakh crores. "Specialised agencies have been set up who are monitoring every loan which is over Rs 250 crores," she said, adding that loan recoveries have hit a recover level of Rs.1,21,076 crore. Finance secretary Rajeev Kumar said that there has been no retrenchment so far and that there is no of the same. "The benefits of employment and HR will improve, with amalgamation the best combination will be taken up," he said. Just yesterday, the Reserve Bank of India in its annual report revealed that the number of frauds reported by banks has shot up by 15 per cent in the financial 2018-19 on a year-on-year basis. The amount involved in such frauds rose by 73.8 per cent, though mostly related to occurrences in earlier years. The banking sector reported 6,801 frauds involving Rs 71,542.93 crore in the financial year 2018-19 as opposed to 5,916 cases involving Rs 41,167.04 crore reported in the previous financial year. "The average lag between the date of occurrence and its detection by banks was 22 months," while the "average lag for large frauds, i.e. Rs 1 billion and above, amounting to Rs 522 billion reported during 2018-19, was 55 months," the top bank stated in its report which was uploaded on its website. The bulk of frauds reported in 2018-19 come from bank groups PSBs that constitute the largest market share in bank lending, followed by private sector banks and foreign banks.

Mega bank reforms: Finance Minister Nirmala Sitharaman announces 4 state-run banks mergers

In order to help entrepreneurs to carry out their business, Finance Minister Nirmala Sitharaman on Tuesday said she has directed the tax administrators to be restraint in the tax collection process and also asked them to understand the businesses.

"Deadlines regarding tax collection, which have been given in consultation with all authorities, are all not impossible but are achievable deadlines. Therefore, my request was not to overreach, not to overstate themselves in the collection process. It is achievable if they are able to go with a bit of restraint," she told reporters here.

The minister said that tax administrators should facilitate businesses, which essentially create jobs.

"Whatever be the size small, medium, micro, nano or large entrepreneurs of this country, we want them to carry out their business without a worry... So that everyone carries on with their business, which essentially creates jobs," she said.

"It is important that tax administrators do their job of tax collection and enforcement of tax rules. They also need to understand businesses and ways to facilitate these as well," she said.&nbsp; 
&nbsp;

In order to help entrepreneurs to carry out their business, Finance Minister Nirmala Sitharaman on Tuesday said she has directed the tax administrators to be restraint in the tax collection process and also asked them to understand the businesses.

In order to help entrepreneurs to carry out their business, Finance Minister Nirmala Sitharaman on Tuesday said she has directed the tax administrators to be restraint in the tax collection process and also asked them to understand the businesses. "Deadlines regarding tax collection, which have been given in consultation with all authorities, are all not impossible but are achievable deadlines. Therefore, my request was not to overreach, not to overstate themselves in the collection process. It is achievable if they are able to go with a bit of restraint," she told reporters here. The minister said that tax administrators should facilitate businesses, which essentially create jobs. "Whatever be the size small, medium, micro, nano or large entrepreneurs of this country, we want them to carry out their business without a worry... So that everyone carries on with their business, which essentially creates jobs," she said. "It is important that tax administrators do their job of tax collection and enforcement of tax rules. They also need to understand businesses and ways to facilitate these as well," she said.

Sitharaman gives mantra of restraint to tax collectors but says deadlines are realistic

1. The Reserve Bank of India (RBI) has approved the surplus transfer of Rs 1,76,051 crore to the central government. Out of the total sum, Rs 1,23,414 crore was the surplus from the year 2018-2019 and Rs 52, 637 was from the surplus reserves, identified by the committee as per the revised Economic Capital Framework (ECF).

2. The amount is more than 300 per cent of what was transferred last year. The central bank had transferred Rs 50,000 crore in 2017-18

3.&nbsp;Rs 28,000 crore has already been paid as an interim dividend in the previous financial year. Thus, Rs 95000 crore remains to be transferred this fiscal.

4. In simple terms, RBI is sharing a one-time profit with the Indian government. The RBI earns profits through various means including interest on securities held and currency swaps i.e when one nation's currency is used in place of the dollar by another country. Here the RBI provides the Indian Rupee to be used as swap against foreign currencies

5. The top bank's decision is in line with the recommendations of the Bimal Jalan Committee. The committee, in December 2018, tried to find out if the central bank has excess reserves that can be transferred to the Indian government. The committee made observation that economic capital should be between 20 to 24.5 per cent of RBI balance sheet. It was 23.3 per cent in June 2019 proving that RBI was one of the most resilient central banks when it comes to the economic capital or keeping reserves

6. According to the RBI Act, the central government may give such directions to the central bank in the public interest, after consultation with the Governor of the bank. Subject to any such directions, the general superintendence and direction of the affairs and business of the Bank shall be entrusted to a Central Board of Directors which may exercise all powers and do all acts and things which may be exercised or done by the Bank

7. The Indian government can use this surplus money in many ways including maintaining a fiscal deficit target of 3 per cent of GDP. The 'windfall' can also be used to solve the liquidity crisis behind the current slowdown. Also, the government can increase public investments on welfare schemes and infrastructure development. Government-owned banks can be recapitalised and the excess money can also compensate the government for the low GST collections this year. 
 
(With inputs from agencies)

1. The Reserve Bank of India (RBI) has approved the surplus transfer of Rs 1,76,051 crore to the central government. Out of the total sum, Rs 1,23,414 crore was the surplus from the year 2018-2019 and Rs 52, 637 was from the surplus reserves, identified by the committee as per the revised Economic Capital Framework (ECF).

1. The Reserve Bank of India (RBI) has approved the surplus transfer of Rs 1,76,051 crore to the central government. Out of the total sum, Rs 1,23,414 crore was the surplus from the year 2018-2019 and Rs 52, 637 was from the surplus reserves, identified by the committee as per the revised Economic Capital Framework (ECF). 2. The amount is more than 300 per cent of what was transferred last year. The central bank had transferred Rs 50,000 crore in 2017-18 3. Rs 28,000 crore has already been paid as an interim dividend in the previous financial year. Thus, Rs 95000 crore remains to be transferred this fiscal. 4. In simple terms, RBI is sharing a one-time profit with the Indian government. The RBI earns profits through various means including interest on securities held and currency swaps i.e when one nation's currency is used in place of the dollar by another country. Here the RBI provides the Indian Rupee to be used as swap against foreign currencies 5. The top bank's decision is in line with the recommendations of the Bimal Jalan Committee. The committee, in December 2018, tried to find out if the central bank has excess reserves that can be transferred to the Indian government. The committee made observation that economic capital should be between 20 to 24.5 per cent of RBI balance sheet. It was 23.3 per cent in June 2019 proving that RBI was one of the most resilient central banks when it comes to the economic capital or keeping reserves 6. According to the RBI Act, the central government may give such directions to the central bank in the public interest, after consultation with the Governor of the bank. Subject to any such directions, the general superintendence and direction of the affairs and business of the Bank shall be entrusted to a Central Board of Directors which may exercise all powers and do all acts and things which may be exercised or done by the Bank 7. The Indian government can use this surplus money in many ways including maintaining a fiscal deficit target of 3 per cent of GDP. The 'windfall' can also be used to solve the liquidity crisis behind the current slowdown. Also, the government can increase public investments on welfare schemes and infrastructure development. Government-owned banks can be recapitalised and the excess money can also compensate the government for the low GST collections this year. (With inputs from agencies)

Reserve Bank of India to transfer surplus of Rs 1.76 lakh crore to government: Key points

Karnataka Chief Minister BS Yediyurappa on Monday said that the inter-ministerial central team is in the state to assess the damage caused due to the floods and will submit a report to the Centre in two days.

"The Centre has sent a study team to our state. The team has come to study flood-hit areas here. They will give the report to the Centre in two days. I am sure that the central government will give sufficient funds to the state," he told reporters here.

"The central government has sent the team to our state first. They know the situation in the state. Amit Shah and Nirmala Sitharaman had come here before and did aerial surveys," he added.

The Home Ministry has constituted teams to conduct on-the-spot situation assessments of the damage and relief operations in the flood-affected states of Assam, Meghalaya, Tripura, Bihar, Uttarakhand, Himachal Pradesh, Gujarat, Rajasthan, Maharashtra, Kerala and Karnataka.

So far, at least 82 people have lost their lives in flood-related incidents in Karnataka.

In light of the ongoing crisis, Yediyurappa has directed the newly-inducted ministers in his cabinet to tour the flood-affected districts extensively for two days from Wednesday and asked them to provide relief to the flood victims on priority.

Karnataka Chief Minister BS Yediyurappa on Monday said that the inter-ministerial central team is in the state to assess the damage caused due to the floods and will submit a report to the Centre in two days.

Karnataka Chief Minister BS Yediyurappa on Monday said that the inter-ministerial central team is in the state to assess the damage caused due to the floods and will submit a report to the Centre in two days. "The Centre has sent a study team to our state. The team has come to study flood-hit areas here. They will give the report to the Centre in two days. I am sure that the central government will give sufficient funds to the state," he told reporters here. "The central government has sent the team to our state first. They know the situation in the state. Amit Shah and Nirmala Sitharaman had come here before and did aerial surveys," he added. The Home Ministry has constituted teams to conduct on-the-spot situation assessments of the damage and relief operations in the flood-affected states of Assam, Meghalaya, Tripura, Bihar, Uttarakhand, Himachal Pradesh, Gujarat, Rajasthan, Maharashtra, Kerala and Karnataka. So far, at least 82 people have lost their lives in flood-related incidents in Karnataka. In light of the ongoing crisis, Yediyurappa has directed the newly-inducted ministers in his cabinet to tour the flood-affected districts extensively for two days from Wednesday and asked them to provide relief to the flood victims on priority.

Karnataka floods: Inter-ministerial team to submit report to Centre in two days, says Yediyurappa

The Indian rupee opened the week lower and slipped by 32 paise at 71.98 per dollar in early trade on Monday against its previous close 71.66.

The Indian currency rose on Friday on hopes of revival measures from Finance Minister Nirmala Sitharaman who announced the first stimulus package for India Inc amid the domestic and global economic slowdown.

Market experts said the rupee's lower opening was largely due to weak global cues.&nbsp;

Both Asian and US markets crashed after the US-China trade war intensified.

Meanwhile, China`s yuan slumped to a fresh 11-year low against the dollar.&nbsp;

The offshore yuan fell to a record low of 7.1850, before regaining some ground to around 7.1595.

On Friday, US President Donald Trump announced an additional duty on 550 billion dollars of targeted Chinese goods after China unveiled retaliatory tariffs on 75 billion dollars worth of American goods.

The Indian rupee opened the week lower and slipped by 32 paise at 71.98 per dollar in early trade on Monday against its previous close 71.66. The Indian currency rose on Friday on hopes of revival measures from Finance Minister Nirmala Sitharaman who announced the first stimulus package for India Inc amid the domestic and global economic slowdown.

The Indian rupee opened the week lower and slipped by 32 paise at 71.98 per dollar in early trade on Monday against its previous close 71.66. The Indian currency rose on Friday on hopes of revival measures from Finance Minister Nirmala Sitharaman who announced the first stimulus package for India Inc amid the domestic and global economic slowdown. Market experts said the rupee's lower opening was largely due to weak global cues. Both Asian and US markets crashed after the US-China trade war intensified. Meanwhile, China`s yuan slumped to a fresh 11-year low against the dollar. The offshore yuan fell to a record low of 7.1850, before regaining some ground to around 7.1595. On Friday, US President Donald Trump announced an additional duty on 550 billion dollars of targeted Chinese goods after China unveiled retaliatory tariffs on 75 billion dollars worth of American goods.

Rupee starts the week lower at 71.98 for a US dollar

Domestic equity benchmark BSE Sensex up by 150 points in early trade on Monday.

The 30-share index was trading 36,885.92 at 9:30am.

Similarly, the broader NSE Nifty above 10,000.

On Friday,&nbsp;Finance minister Nirmala Sitharaman announced a big rollback on taxation asserting&nbsp;that there would be no surcharge on long and short term capital gain.

Addressing a press conference, the finance minister said GST returns will be simplified even further. Sitharaman added that there would be no&nbsp;surcharge for FPI and domestic investors in the market.

"Friday's announcement is a turning point for domestic market. It could have been better if the global factors were also accommodating," said Sunil Sharma, chief investment officer at Sanctum Wealth Management in Mumbai.

Shares of Yes Bank Ltd and Indiabulls Housing Finance Ltd were among the top gainers on the NSE Nifty, rising over 3% each.

Domestic equity benchmark BSE Sensex up by 150 points in early trade on Monday. The 30-share index was trading 36,885.92 at 9:30am. Similarly, the broader NSE Nifty above 10,000.

Domestic equity benchmark BSE Sensex up by 150 points in early trade on Monday. The 30-share index was trading 36,885.92 at 9:30am. Similarly, the broader NSE Nifty above 10,000. On Friday, Finance minister Nirmala Sitharaman announced a big rollback on taxation asserting that there would be no surcharge on long and short term capital gain. Addressing a press conference, the finance minister said GST returns will be simplified even further. Sitharaman added that there would be no surcharge for FPI and domestic investors in the market. "Friday's announcement is a turning point for domestic market. It could have been better if the global factors were also accommodating," said Sunil Sharma, chief investment officer at Sanctum Wealth Management in Mumbai. Shares of Yes Bank Ltd and Indiabulls Housing Finance Ltd were among the top gainers on the NSE Nifty, rising over 3% each.

Sensex up by 150 points in early trade; Nifty over 10,000

State Bank of India (SBI) chairman, Rajnish Kumar on Friday said that the <a href="https://www.wionews.com/business-economy/angle-tax-provisions-for-startups-and-investors-withdrawn-nirmala-sitharaman-245113">announcements made by Union Finance Minister</a> Nirmala Sitharaman will act as major enablers for continuing to support growth.

"The announcements will act as major enablers for continuing to support growth. Bank recapitalisation at one go will provide a big impetus to credit growth. Also, honest decision-making will not be questioned," said SBI chairman, Rajnish Kumar.

"The SBI has already started benchmarking its loans to the repo and now other banks are likely to follow suit. This augurs well for domestic demand. The surcharge removal on FPIs and domestic investors will soothe the markets," Kumar said.

In a bid to boost the economy, capital markets and consumption, Sitharaman today announced a slew of measures including the rollback of a controversial tax surcharge on foreign portfolio investors (FPIs) and equities of domestic investors announced in the Budget last month besides some reliefs for the beleaguered automobile sector.

Amid concerns over the economic slowdown, she also announced during a press conference that the withdrawal of 'angel' tax provision for startups and their investors.

The impact of rollback of enhanced tax surcharge will be about Rs 1,400 crore. The minister also promised a review of enhanced surcharge on high net worth individuals in 2022 when the country celebrates the 75th anniversary of Independence.

The government has decided to withdraw enhanced surcharge levied on long and short-term capital gains arising from the transfer of equity shares. "The pre-Budget position is restored. The enhanced surcharge levied by Finance Act 2019 on long and short term capital gains tax is being withdrawn," Sitharaman said.

State Bank of India (SBI) chairman, Rajnish Kumar on Friday said that the announcements made by Union Finance Minister Nirmala Sitharaman will act as major enablers for continuing to support growth.

State Bank of India (SBI) chairman, Rajnish Kumar on Friday said that the announcements made by Union Finance Minister Nirmala Sitharaman will act as major enablers for continuing to support growth. "The announcements will act as major enablers for continuing to support growth. Bank recapitalisation at one go will provide a big impetus to credit growth. Also, honest decision-making will not be questioned," said SBI chairman, Rajnish Kumar. "The SBI has already started benchmarking its loans to the repo and now other banks are likely to follow suit. This augurs well for domestic demand. The surcharge removal on FPIs and domestic investors will soothe the markets," Kumar said. In a bid to boost the economy, capital markets and consumption, Sitharaman today announced a slew of measures including the rollback of a controversial tax surcharge on foreign portfolio investors (FPIs) and equities of domestic investors announced in the Budget last month besides some reliefs for the beleaguered automobile sector. Amid concerns over the economic slowdown, she also announced during a press conference that the withdrawal of 'angel' tax provision for startups and their investors. The impact of rollback of enhanced tax surcharge will be about Rs 1,400 crore. The minister also promised a review of enhanced surcharge on high net worth individuals in 2022 when the country celebrates the 75th anniversary of Independence. The government has decided to withdraw enhanced surcharge levied on long and short-term capital gains arising from the transfer of equity shares. "The pre-Budget position is restored. The enhanced surcharge levied by Finance Act 2019 on long and short term capital gains tax is being withdrawn," Sitharaman said.

Announcements made by Nirmala Sitharaman to support economic growth: SBI chairman

<a href="https://www.wionews.com/business-economy/angle-tax-provisions-for-startups-and-investors-withdrawn-nirmala-sitharaman-245113">Angel tax provisions for startups and investors withdrawn: Nirmala Sitharaman</a>

Finance minister Nirmala Sitharaman announced a big rollback on taxation asserting that there would be no surcharge on long and short term capital gain.

<a href="https://www.wionews.com/world/will-impose-new-tariffs-on-75-billion-us-imports-china-245127">Will impose new tariffs on $75 billion US imports: China</a>

China announced Friday it will hit US imports worth $75 billion with new tariffs starting September 1 and December 15, as retaliation for Washington's planned tariff hikes in a bruising trade war.

<a href="https://www.wionews.com/world/putin-orders-russian-military-to-prepare-symmetric-response-after-us-missile-test-245052">Putin orders Russian military to prepare 'symmetric response' after US missile test</a>

Russian President Vladimir Putin on Friday said he has ordered the military to prepare a "symmetric response" after Washington announced this week it had tested a formerly banned missile.

<a href="https://www.wionews.com/world/now-ireland-may-block-eu-mercosur-deal-over-amazon-fire-245087">Now, Ireland may block EU-Mercosur deal over Amazon fire</a>

Ireland may vote to block a trade deal between the EU and South American nations if Brazil fails to curb record fires ravaging the Amazon, Prime Minister Leo Varadkar said Friday.

<a href="https://www.wionews.com/world/cathay-flight-attendant-says-fired-over-facebook-posts-on-hong-kong-protests-245058">Cathay flight attendant says fired over Facebook posts on Hong Kong protests</a>

A flight attendant on Friday accused Cathay Pacific of summarily firing her over Facebook posts linked to Hong Kong's political crisis, adding to concerns about a China-driven witch-hunt to root out pro-democracy supporters at major firms.

&nbsp;

Angel tax provisions for startups and investors withdrawn: Nirmala Sitharaman Finance minister Nirmala Sitharaman announced a big rollback on taxation asserting that there would be no surcharge on long and short term capital gain.

Angel tax provisions for startups and investors withdrawn: Nirmala Sitharaman Finance minister Nirmala Sitharaman announced a big rollback on taxation asserting that there would be no surcharge on long and short term capital gain. Will impose new tariffs on $75 billion US imports: China China announced Friday it will hit US imports worth $75 billion with new tariffs starting September 1 and December 15, as retaliation for Washington's planned tariff hikes in a bruising trade war. Putin orders Russian military to prepare 'symmetric response' after US missile test Russian President Vladimir Putin on Friday said he has ordered the military to prepare a "symmetric response" after Washington announced this week it had tested a formerly banned missile. Now, Ireland may block EU-Mercosur deal over Amazon fire Ireland may vote to block a trade deal between the EU and South American nations if Brazil fails to curb record fires ravaging the Amazon, Prime Minister Leo Varadkar said Friday. Cathay flight attendant says fired over Facebook posts on Hong Kong protests A flight attendant on Friday accused Cathay Pacific of summarily firing her over Facebook posts linked to Hong Kong's political crisis, adding to concerns about a China-driven witch-hunt to root out pro-democracy supporters at major firms.

Finance minister Nirmala Sitharaman announced a big rollback on taxation asserting&nbsp;that there would be no surcharge on long and short term capital gain.

Addressing a press conference, the finance minister said GST returns will be simplified even further. Sitharaman added that there would be no&nbsp;surcharge for FPI and domestic investors in the market.&nbsp;"All pending GST refunds due to MSMEs till now shall be paid within 30 days from today," the finance minister informed.

The minister said that Angel&nbsp;tax provisions for startups will be removed.

"Tax assessment will become faceless and random." "It is wrong to say the government is harassing taxpayers," she said. The minister said 1400 prosecutions were withdrawn and sixteen offences have been moved to "monetary penalty".

"BS4 vehicles purchased up to March 2020 will all remain operational for their entire period of registration," the finance minister added.

"Banks have now decided to pass on any rate cut through MCLR reduction to benefit all borrowers. This will result in reduced EMIs for housing loans, vehicles and other retail loans, by directly linking repo rates to the interest rates," the finance minister.

"CSR violation is not a criminal offence," the finance minister said.&nbsp;

I-T notices will be through a centralised system,&nbsp;Sitharaman added.

India's finance minister said the global growth rate is forecast at 3.2 per cent, asserting that global demand is weak at the present.

"Just to give you briefly a picture of what is happening globally. The current projected global GDP growth is of about 3.2 per cent and probably is going to be even revised downwards," the finance minister said.

Sitharaman said that surcharge on capital gains has been withdrawn.

"India is in a better position," Sitharaman said.

Sitharaman said the situation global trade was volatile while emphasising that reforms was&nbsp;a continues endeavour of the government.

"I had consultation with industry representatives, India's position is in a comfortable zone," she added. The government is responsive to the situation the ground, the finance minister assured the nation.

Finance minister Nirmala Sitharaman announced a big rollback on taxation asserting that there would be no surcharge on long and short term capital gain. Addressing a press conference, the finance minister said GST returns will be simplified even further.

Finance minister Nirmala Sitharaman announced a big rollback on taxation asserting that there would be no surcharge on long and short term capital gain. Addressing a press conference, the finance minister said GST returns will be simplified even further. Sitharaman added that there would be no surcharge for FPI and domestic investors in the market. "All pending GST refunds due to MSMEs till now shall be paid within 30 days from today," the finance minister informed. The minister said that Angel tax provisions for startups will be removed. "Tax assessment will become faceless and random." "It is wrong to say the government is harassing taxpayers," she said. The minister said 1400 prosecutions were withdrawn and sixteen offences have been moved to "monetary penalty". "BS4 vehicles purchased up to March 2020 will all remain operational for their entire period of registration," the finance minister added. "Banks have now decided to pass on any rate cut through MCLR reduction to benefit all borrowers. This will result in reduced EMIs for housing loans, vehicles and other retail loans, by directly linking repo rates to the interest rates," the finance minister. "CSR violation is not a criminal offence," the finance minister said. I-T notices will be through a centralised system, Sitharaman added. India's finance minister said the global growth rate is forecast at 3.2 per cent, asserting that global demand is weak at the present. "Just to give you briefly a picture of what is happening globally. The current projected global GDP growth is of about 3.2 per cent and probably is going to be even revised downwards," the finance minister said. Sitharaman said that surcharge on capital gains has been withdrawn. "India is in a better position," Sitharaman said. Sitharaman said the situation global trade was volatile while emphasising that reforms was a continues endeavour of the government. "I had consultation with industry representatives, India's position is in a comfortable zone," she added. The government is responsive to the situation the ground, the finance minister assured the nation.

Angel tax provisions for startups and investors withdrawn: Nirmala Sitharaman

A Group of Ministers (GOM) meeting is underway at the official residence of Defence Minister Rajnath Singh on Saturday.

Union Home Minister Amit Shah, Finance Minister Nirmala Sitharaman and Agriculture Minister Narendra Singh Tomar are expected to attend the meeting.

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Delhi: A Group of Ministers (GOM) meeting to be held at Union Defence Minister Rajnath Singh's (File pic) residence, today. Union Home Minister Amit Shah, Union Finance Minister Nirmala Sitharaman and Union Agriculture Minister Narendra Singh Tomar to attend the meeting. <a href="https://t.co/uXn1G57RtZ">pic.twitter.com/uXn1G57RtZ</a>
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Earlier on Friday, Defence Minister Rajnath Singh had said that India follows 'no first use' policy regarding nuclear weapons but said what would happen in future will depend on "circumstances".

"On the question of nuclear policy, till today, we have a policy of no-first-use. What happens in future, will depend on circumstances," Rajnath Singh told ANI after paying homage to late prime minister Atal Bihari Vajpayee at the site where the country conducted its second nuclear tests during the regime of the NDA government in 1998.&nbsp;

A Group of Ministers (GOM) meeting is underway at the official residence of Defence Minister Rajnath Singh on Saturday. Union Home Minister Amit Shah, Finance Minister Nirmala Sitharaman and Agriculture Minister Narendra Singh Tomar are expected to attend the meeting.

A Group of Ministers (GOM) meeting is underway at the official residence of Defence Minister Rajnath Singh on Saturday. Union Home Minister Amit Shah, Finance Minister Nirmala Sitharaman and Agriculture Minister Narendra Singh Tomar are expected to attend the meeting. Delhi: A Group of Ministers (GOM) meeting to be held at Union Defence Minister Rajnath Singh's (File pic) residence, today. Union Home Minister Amit Shah, Union Finance Minister Nirmala Sitharaman and Union Agriculture Minister Narendra Singh Tomar to attend the meeting. pic.twitter.com/uXn1G57RtZ — ANI (@ANI) August 17, 2019 × Earlier on Friday, Defence Minister Rajnath Singh had said that India follows 'no first use' policy regarding nuclear weapons but said what would happen in future will depend on "circumstances". "On the question of nuclear policy, till today, we have a policy of no-first-use. What happens in future, will depend on circumstances," Rajnath Singh told ANI after paying homage to late prime minister Atal Bihari Vajpayee at the site where the country conducted its second nuclear tests during the regime of the NDA government in 1998.

Group of Ministers meeting underway at Defence Minister Rajnath Singh's residence

If India opts for sovereign borrowing in foreign currency, the move should be accompanied by a well-crafted policy and special safeguard as the foreign exchange reserve is an accumulation of capital account surplus rather than a current account, according to <a href="https://www.wionews.com/business-economy/rating-agencies-knew-of-stress-at-ilfs-but-gave-good-ratings-report-237295">India Ratings and Research (Ind-Ra).</a>

In her Budget speech on July 5, Finance Minister Nirmala Sitharaman announced the intention of going for foreign currency borrowing to bridge the government deficit that has ballooned over the years due to huge spending on infrastructure and welfare schemes.

Against the backdrop of moderating household savings and easy global liquidity, sovereign borrowing in foreign currency appears to be an attractive option for meeting the government's funding requirement.

However, Ind-Ra believes one way of doing it could be to make it part of the Fiscal Responsibility and Budget Management Act where the annual limit, as well as the total quantum of sovereign borrowings in foreign currency, is defined.

India's balance of payment position is highly susceptible to any adverse domestic or global macro development.

The fickle nature of foreign portfolio investors (FPIs) can be quite destabilizing for the economy and the same has been witnessed multiple times.&nbsp;

The most recent instance was over April to October 2018 when FPIs pulled out over 16 billion dollars from the Indian market.

Until now, the government has been more comfortable with foreign portfolio investment into the Indian debt market instead of the foreign currency-denominated debt market.

Within that, the government has followed a fairly cautious approach by capping the FPI limit in government securities (G-Secs).

FPIs who were first allowed to invest in G-Secs in the financial year 2001-01 can still invest only up to six per cent of the outstanding G-Secs stock in FY 2019-20.

There are four main reasons provided by the government for this shift in stance in favor of foreign currency sovereign borrowings.&nbsp;

One: India's sovereign external debt-to-GDP level at sub-five per cent is among the lowest globally, Two: the borrowings will help government diversify resource mobilisation.

Three: the cost of borrowing is very attractive due to ample global liquidity.

And four: more funds will be available in the domestic market for the private sector to borrow.

In the existing framework, allowing FPIs in the onshore market does not carry the currency or refinance risk which is present in foreign currency-denominated debt.

In a scenario of depreciating currency, interest and debt obligations of foreign currency-denominated debts balloon and quite often make it unsustainable.&nbsp;

Hedging currency risks carry significant costs and if opted may make foreign currency-denominated debt less attractive compared with domestic debt.

Ind-Ra said that with the development of offshore foreign-currency-denominated bonds, the feedback process will get further entrenched in the Indian debt market.

This may weaken monetary policy transmission, especially during adverse conditions in global financial markets.&nbsp;

Overseas issuances will facilitate the development of the overseas credit default swap market.

While this will help in efficient price discovery, overseas issuances have been seen to hurt the domestic market.

This is because, in the overseas markets, many hedge funds and investment companies write credit default swap contracts without owning the underlying security and resort to pure speculation.

The reasons provided for foreign currency sovereign borrowing are undoubtedly cogent, but the associated risks are equally formidable, said Ind-Ra. 
&nbsp;

If India opts for sovereign borrowing in foreign currency, the move should be accompanied by a well-crafted policy and special safeguard as the foreign exchange reserve is an accumulation of capital account surplus rather than a current account, according to India Ratings and Research (Ind-Ra).

If India opts for sovereign borrowing in foreign currency, the move should be accompanied by a well-crafted policy and special safeguard as the foreign exchange reserve is an accumulation of capital account surplus rather than a current account, according to India Ratings and Research (Ind-Ra). In her Budget speech on July 5, Finance Minister Nirmala Sitharaman announced the intention of going for foreign currency borrowing to bridge the government deficit that has ballooned over the years due to huge spending on infrastructure and welfare schemes. Against the backdrop of moderating household savings and easy global liquidity, sovereign borrowing in foreign currency appears to be an attractive option for meeting the government's funding requirement. However, Ind-Ra believes one way of doing it could be to make it part of the Fiscal Responsibility and Budget Management Act where the annual limit, as well as the total quantum of sovereign borrowings in foreign currency, is defined. India's balance of payment position is highly susceptible to any adverse domestic or global macro development. The fickle nature of foreign portfolio investors (FPIs) can be quite destabilizing for the economy and the same has been witnessed multiple times. The most recent instance was over April to October 2018 when FPIs pulled out over 16 billion dollars from the Indian market. Until now, the government has been more comfortable with foreign portfolio investment into the Indian debt market instead of the foreign currency-denominated debt market. Within that, the government has followed a fairly cautious approach by capping the FPI limit in government securities (G-Secs). FPIs who were first allowed to invest in G-Secs in the financial year 2001-01 can still invest only up to six per cent of the outstanding G-Secs stock in FY 2019-20. There are four main reasons provided by the government for this shift in stance in favor of foreign currency sovereign borrowings. One: India's sovereign external debt-to-GDP level at sub-five per cent is among the lowest globally, Two: the borrowings will help government diversify resource mobilisation. Three: the cost of borrowing is very attractive due to ample global liquidity. And four: more funds will be available in the domestic market for the private sector to borrow. In the existing framework, allowing FPIs in the onshore market does not carry the currency or refinance risk which is present in foreign currency-denominated debt. In a scenario of depreciating currency, interest and debt obligations of foreign currency-denominated debts balloon and quite often make it unsustainable. Hedging currency risks carry significant costs and if opted may make foreign currency-denominated debt less attractive compared with domestic debt. Ind-Ra said that with the development of offshore foreign-currency-denominated bonds, the feedback process will get further entrenched in the Indian debt market. This may weaken monetary policy transmission, especially during adverse conditions in global financial markets. Overseas issuances will facilitate the development of the overseas credit default swap market. While this will help in efficient price discovery, overseas issuances have been seen to hurt the domestic market. This is because, in the overseas markets, many hedge funds and investment companies write credit default swap contracts without owning the underlying security and resort to pure speculation. The reasons provided for foreign currency sovereign borrowing are undoubtedly cogent, but the associated risks are equally formidable, said Ind-Ra.

Sovereign borrowing in foreign currency should be accompanied by well-crafted policy: Ind-Ra

Indian shares reversed early losses to trade higher on Tuesday, a day after the government scrapped the special status of long-disputed Kashmir, while investors awaited the central bank's monetary policy decision scheduled on Wednesday.

The broader NSE Nifty rose 0.62% to 10,930.40 as of 0409 GMT, while the benchmark BSE Sensex was up 0.57% at 36,909.50.

India on Monday revoked a constitutional provision giving Kashmir the authority to make its own laws, potentially stoking tension in the Himalayan region, which has been a flashpoint in ties with neighbouring Pakistan.

The move further raised investor uncertainty at a time when they are already grappling with slowing economic growth and a credit squeeze.

Investors were also awaiting the Reserve Bank of India's (RBI) policy decision on Wednesday. A Reuters poll last month showed the central bank was set to cut interest rates further as the country looks to stimulate growth and spending.

Finance minister Nirmala Sitharaman also said her department would hold talks with foreign portfolio investors (FPIs) about the tax surcharge on certain high-value investments, Mint reported.

"Domestically, the negative news flow may be behind us for the time being. There is hope in markets that the government may revive the economy and they are rallying on that hope," said Neeraj Dewan, a director at Quantum Securities.

"People are expecting the RBI to cut rates and the finance minister's statements about FPIs are also giving hope."

Banks and auto indexes led gains. The Nifty public sector banks index rose 1.5%, while the auto index was up 1%.

The IT index was flat in early trade as the rupee firmed after touching a five-month low on Monday.

Indiabulls Housing Finance led the gains among NSE stocks, rising 1.8%, while Yes Bank and IndusInd Bank rose about 1.5% each. Tata Motors rose 1.8%.

Among losers, IT heavyweight Tata Consultancy Services dropped 0.7%, while Zee Entertainment Enterprises was down 1.8%

Meanwhile, Asian peers languished after the Chinese yuan fell to a 11-year low in an escalating trade war between Beijing and Washington.

MSCI's broadest index of Asia-Pacific shares outside Japan fell 1.5% to its lowest level since January.

Indian shares reversed early losses to trade higher on Tuesday, a day after the government scrapped the special status of long-disputed Kashmir, while investors awaited the central bank's monetary policy decision scheduled on Wednesday.

Indian shares reversed early losses to trade higher on Tuesday, a day after the government scrapped the special status of long-disputed Kashmir, while investors awaited the central bank's monetary policy decision scheduled on Wednesday. The broader NSE Nifty rose 0.62% to 10,930.40 as of 0409 GMT, while the benchmark BSE Sensex was up 0.57% at 36,909.50. India on Monday revoked a constitutional provision giving Kashmir the authority to make its own laws, potentially stoking tension in the Himalayan region, which has been a flashpoint in ties with neighbouring Pakistan. The move further raised investor uncertainty at a time when they are already grappling with slowing economic growth and a credit squeeze. Investors were also awaiting the Reserve Bank of India's (RBI) policy decision on Wednesday. A Reuters poll last month showed the central bank was set to cut interest rates further as the country looks to stimulate growth and spending. Finance minister Nirmala Sitharaman also said her department would hold talks with foreign portfolio investors (FPIs) about the tax surcharge on certain high-value investments, Mint reported. "Domestically, the negative news flow may be behind us for the time being. There is hope in markets that the government may revive the economy and they are rallying on that hope," said Neeraj Dewan, a director at Quantum Securities. "People are expecting the RBI to cut rates and the finance minister's statements about FPIs are also giving hope." Banks and auto indexes led gains. The Nifty public sector banks index rose 1.5%, while the auto index was up 1%. The IT index was flat in early trade as the rupee firmed after touching a five-month low on Monday. Indiabulls Housing Finance led the gains among NSE stocks, rising 1.8%, while Yes Bank and IndusInd Bank rose about 1.5% each. Tata Motors rose 1.8%. Among losers, IT heavyweight Tata Consultancy Services dropped 0.7%, while Zee Entertainment Enterprises was down 1.8% Meanwhile, Asian peers languished after the Chinese yuan fell to a 11-year low in an escalating trade war between Beijing and Washington. MSCI's broadest index of Asia-Pacific shares outside Japan fell 1.5% to its lowest level since January.

Nifty, Sensex edge higher ahead of RBI's policy outcome

Finance Minister Nirmala Sitharaman on Monday lauded <a href="https://www.wionews.com/india-news/jammu-and-kashmir-now-a-union-territory-ladakh-to-be-administered-from-delhi-as-ut-240769">centre's decision of scrapping Article 370 and 35A</a> in Jammu and Kashmir and said that the move will facilitate the development of Jammu and Kashmir.&nbsp;

"No investment is happening in Jammu and Kashmir," Sitharaman said, adding that&nbsp;"with this move, the true development and integration of Jammu and Kashmir will happen".&nbsp; 
&nbsp; 
The finance minister said that the entire nation had been waiting for this for the last 70 years.&nbsp;

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FM Nirmala Sitharaman: It is something the country has been waiting for the last 70 years. Even our manifesto mentioned the need to abrogate <a href="https://twitter.com/hashtag/Article370?src=hash&amp;ref_src=twsrc%5Etfw">#Article370</a>, so it is not something we brought out suddenly like a rabbit from a magic hat. <a href="https://t.co/bcZAE3JL89">pic.twitter.com/bcZAE3JL89</a>
— ANI (@ANI) <a href="https://twitter.com/ANI/status/1158335837496651776?ref_src=twsrc%5Etfw">August 5, 2019</a></blockquote>
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"Even our manifesto mentioned the need to abrogate <a href="https://www.wionews.com/india-news/article-370-revoked-from-jammu-and-kashmir-all-you-need-to-know-240772">Article 370</a>, so it is not something we brought out suddenly like a rabbit from a magic hat," she said.&nbsp;

The government on Monday announced the bifurcation of the state of Jammu and Kashmir. While Jammu and Kashmir will be a Union Territory with a legislature, Ladakh has been converted into a separate Union Territory sans legislature. The Union Territory of Ladakh will be administered by Delhi.

Home Minister Amit Shah addressed the Upper House (Rajya Sabha) of Parliament where he announced the abrogation of Article 370 and <a href="https://www.wionews.com/india-news/what-is-article-35a-heres-all-you-need-to-know-240752">Article 35A</a> of the Constitution of India which gave special status to the state and its residents and tabled a resolution for the same.

A notification issued by the government, shortly after Shah's announcement, was signed by President Ram Nath Kovind and said that the state is being restructured.

Finance Minister Nirmala Sitharaman on Monday lauded centre's decision of scrapping Article 370 and 35A in Jammu and Kashmir and said that the move will facilitate the development of Jammu and Kashmir.

Finance Minister Nirmala Sitharaman on Monday lauded centre's decision of scrapping Article 370 and 35A in Jammu and Kashmir and said that the move will facilitate the development of Jammu and Kashmir. "No investment is happening in Jammu and Kashmir," Sitharaman said, adding that "with this move, the true development and integration of Jammu and Kashmir will happen". The finance minister said that the entire nation had been waiting for this for the last 70 years. FM Nirmala Sitharaman: It is something the country has been waiting for the last 70 years. Even our manifesto mentioned the need to abrogate #Article370, so it is not something we brought out suddenly like a rabbit from a magic hat. pic.twitter.com/bcZAE3JL89 — ANI (@ANI) August 5, 2019 × "Even our manifesto mentioned the need to abrogate Article 370, so it is not something we brought out suddenly like a rabbit from a magic hat," she said. The government on Monday announced the bifurcation of the state of Jammu and Kashmir. While Jammu and Kashmir will be a Union Territory with a legislature, Ladakh has been converted into a separate Union Territory sans legislature. The Union Territory of Ladakh will be administered by Delhi. Home Minister Amit Shah addressed the Upper House (Rajya Sabha) of Parliament where he announced the abrogation of Article 370 and Article 35A of the Constitution of India which gave special status to the state and its residents and tabled a resolution for the same. A notification issued by the government, shortly after Shah's announcement, was signed by President Ram Nath Kovind and said that the state is being restructured.

True development and integration of Jammu and Kashmir will happen now: Nirmala Sitharaman

Shares lost steam and moved lower on Monday clouded by weak corporate results, while bond yields fell after the finance minister's comments in a media interview that the government did not intend to review its overseas borrowing plan.

The broader NSE Nifty fell 0.4% at 11,236.65 as of 0507 GMT, while the benchmark BSE Sensex dropped 0.24% at 37,791.91.

Maruti Suzuki Ltd shares fell as much as 2.9%, despite reporting a profit that beat estimates, as the government lowered taxes on electric vehicles.

The government on Saturday slashed taxes on electric vehicles and chargers to encourage the use of more eco-friendly cars.

However, investors in auto stocks did not seem to be ecstatic about the move, as the Nifty Auto index fell 2.8% to a near 3-1/2-year low, with motorcycle makers TVS Motor and Hero Motocorp dropping as much as 3.5% each.

Vodafone Idea Ltd reported a worse-than-expected loss of 48.74 billion rupees on Friday, sending its shares down as much as 10% in morning trading.

"Sentiment is quite weak. Only a few companies are coming up with good numbers this earnings season," said Rusmik Oza, a vice president at Kotak Securities.

"That is not giving very strong confidence to the market."

India's benchmark 10-year bond yield was down 10 bps at 6.43% after falling to 6.42% immediately after the market opened on the back of Finance Minister Nirmala Sitharaman's comments.

Sitharaman also sought the central bank to cut interest rates "significantly", the Economic Times reported.

Shares in Indiabulls Housing Finance also fell as much as 9%, after a lawmaker alleged that it embezzled as much as 1 trillion rupees from the National Housing Bank and laundered the money.

Among gainers, India's second-biggest private bank ICICI Bank rose 3.6% on Monday after the lender swung to a first-quarter profit.

Shares lost steam and moved lower on Monday clouded by weak corporate results, while bond yields fell after the finance minister's comments in a media interview that the government did not intend to review its overseas borrowing plan.

Shares lost steam and moved lower on Monday clouded by weak corporate results, while bond yields fell after the finance minister's comments in a media interview that the government did not intend to review its overseas borrowing plan. The broader NSE Nifty fell 0.4% at 11,236.65 as of 0507 GMT, while the benchmark BSE Sensex dropped 0.24% at 37,791.91. Maruti Suzuki Ltd shares fell as much as 2.9%, despite reporting a profit that beat estimates, as the government lowered taxes on electric vehicles. The government on Saturday slashed taxes on electric vehicles and chargers to encourage the use of more eco-friendly cars. However, investors in auto stocks did not seem to be ecstatic about the move, as the Nifty Auto index fell 2.8% to a near 3-1/2-year low, with motorcycle makers TVS Motor and Hero Motocorp dropping as much as 3.5% each. Vodafone Idea Ltd reported a worse-than-expected loss of 48.74 billion rupees on Friday, sending its shares down as much as 10% in morning trading. "Sentiment is quite weak. Only a few companies are coming up with good numbers this earnings season," said Rusmik Oza, a vice president at Kotak Securities. "That is not giving very strong confidence to the market." India's benchmark 10-year bond yield was down 10 bps at 6.43% after falling to 6.42% immediately after the market opened on the back of Finance Minister Nirmala Sitharaman's comments. Sitharaman also sought the central bank to cut interest rates "significantly", the Economic Times reported. Shares in Indiabulls Housing Finance also fell as much as 9%, after a lawmaker alleged that it embezzled as much as 1 trillion rupees from the National Housing Bank and laundered the money. Among gainers, India's second-biggest private bank ICICI Bank rose 3.6% on Monday after the lender swung to a first-quarter profit.

Sensex, Nifty edge lower on weak earnings, finance minister's comments

Joint Forum, a platform of 29 tea trade unions, has sought the intervention of Union <a href="https://www.wionews.com/india-news/we-are-not-a-suitcase-carrying-government-nirmala-sitharaman-237269">Finance Minister Nirmala Sitharaman</a> and West Bengal Chief Minister Mamata Banerjee on the implementation of Minimum Wages Act for the tea garden workers.

West Bengal government had formed a Minimum Wages Advisory Committee to resolve the crisis earlier. However, the forum claims "not a single positive step has been taken by the committee in favour of the workers even after conducting 14 meetings on the issue."

With their demands not being met despite repeated pleas, the forum has now decided to step up its protest. A meeting is being organised on July 29 in Terai and Dooars and later the workers plan to take out a march.

Aloke Chakraborty, President, Darjeeling district, All India Trade Union Congress (AITUC) and senior leader of Joint Forum said, "Around 4.5 lakh tea garden workers have been facing severe distress due to the prolonged negligence. The situation has deteriorated further now. Many tea gardens have been closed down. We are surprised that no step has been taken so far by the state government or the central government to reopen the gardens."

Pratap Kujur, tea garden worker and forum leader said, "We have sent our demands to Mamata Banerjee and Nirmala Sitharaman and have requested them to call us to resolve the crisis. We are hoping for the best."

&nbsp;

Joint Forum, a platform of 29 tea trade unions, has sought the intervention of Union Finance Minister Nirmala Sitharaman and West Bengal Chief Minister Mamata Banerjee on the implementation of Minimum Wages Act for the tea garden workers.

Joint Forum, a platform of 29 tea trade unions, has sought the intervention of Union Finance Minister Nirmala Sitharaman and West Bengal Chief Minister Mamata Banerjee on the implementation of Minimum Wages Act for the tea garden workers. West Bengal government had formed a Minimum Wages Advisory Committee to resolve the crisis earlier. However, the forum claims "not a single positive step has been taken by the committee in favour of the workers even after conducting 14 meetings on the issue." With their demands not being met despite repeated pleas, the forum has now decided to step up its protest. A meeting is being organised on July 29 in Terai and Dooars and later the workers plan to take out a march. Aloke Chakraborty, President, Darjeeling district, All India Trade Union Congress (AITUC) and senior leader of Joint Forum said, "Around 4.5 lakh tea garden workers have been facing severe distress due to the prolonged negligence. The situation has deteriorated further now. Many tea gardens have been closed down. We are surprised that no step has been taken so far by the state government or the central government to reopen the gardens." Pratap Kujur, tea garden worker and forum leader said, "We have sent our demands to Mamata Banerjee and Nirmala Sitharaman and have requested them to call us to resolve the crisis. We are hoping for the best."

Joint Forum of tea trade unions seek intervention of Finance Minister Nirmala Sitharaman, Mamata Banerjee

The Lok Sabha on Friday passed the Bill to amend the Companies Act 2013 with Finance Minister Nirmala Sitharaman saying that the government has de-registered nearly four lakh inactive companies.

The Companies (Amendment) Bill 2019 was passed by a voice vote after a reply by Sitharaman. The Bill seeks to replace an ordinance promulgated earlier this year.

"Nearly four lakh inactive companies have been de-registered by us," she said, adding they were totally inactive for several years, probably for more than five years.

Referring to members talking about shell companies, she said if a company does not have a proper registered office or if the business is not declared, then it become a shell company.

She said the non-maintenance of a registered office shall be made one of the stated grounds for striking off any company.

"So, physical registration of a registered company`s address has now become absolutely necessary so that you do not run the risk of being defined as a shell company," she said.

Referring to the Act enacted by the UPA government in 2013, Sitharaman said that she was not sure how it got passed as it has required repeated amendments.

Referring to queries about Corporate Social Responsibility, Sitharman said there is nothing under the rule, which stops the use of CSR fund for local requirements.

She said the companies that start spending money on CSR projects will be given one year plus three years.

"So, within three years, after the year in which the decision is taken, they have to give us a picture of where the money has been spent, i.e., 2 per cent of their total profit. In case it does not happen, they will have to move their money into an escrow account," she said, adding that it can go to the PM Relief Fund.

She said the Act has been amended twice earlier and the amendments being brought now were driven by demands of the stakeholders and also for the ease of doing business.

"The amendments are being brought for bringing a better governance framework and also to look at the welfare of small and medium enterprises. It will reduce the burden on them. (Some) compounding offences are being reduced to non-compounding offences so that those who have done small omissions or commissions of compliance will be treated with kid gloves," she said.

The minister said the government is looking at a Companies Act, which will be "far more friendlier for companies to comply" rather than them having to worry about its implementation.

The minister said that ordinance will lapse by the end of this month and there was a need to get the bill passed.

Responding to a query about including private companies under Section 164 of the Act, she said non-filing of financial statement or annual returns should result into some kind of disqualification for becoming directors in any company including private companies for relevant five years.

"This was done so that we bring in good corporate practices," she said.

Answering a query, she said the companies, which did not file annual returns and financial statements for two years or more, or did not apply for dormant status but existed without main activities, were the ones to get struck off by the Registrar after following due process.

The Lok Sabha on Friday passed the Bill to amend the Companies Act 2013 with Finance Minister Nirmala Sitharaman saying that the government has de-registered nearly four lakh inactive companies.

The Lok Sabha on Friday passed the Bill to amend the Companies Act 2013 with Finance Minister Nirmala Sitharaman saying that the government has de-registered nearly four lakh inactive companies. The Companies (Amendment) Bill 2019 was passed by a voice vote after a reply by Sitharaman. The Bill seeks to replace an ordinance promulgated earlier this year. "Nearly four lakh inactive companies have been de-registered by us," she said, adding they were totally inactive for several years, probably for more than five years. Referring to members talking about shell companies, she said if a company does not have a proper registered office or if the business is not declared, then it become a shell company. She said the non-maintenance of a registered office shall be made one of the stated grounds for striking off any company. "So, physical registration of a registered company`s address has now become absolutely necessary so that you do not run the risk of being defined as a shell company," she said. Referring to the Act enacted by the UPA government in 2013, Sitharaman said that she was not sure how it got passed as it has required repeated amendments. Referring to queries about Corporate Social Responsibility, Sitharman said there is nothing under the rule, which stops the use of CSR fund for local requirements. She said the companies that start spending money on CSR projects will be given one year plus three years. "So, within three years, after the year in which the decision is taken, they have to give us a picture of where the money has been spent, i.e., 2 per cent of their total profit. In case it does not happen, they will have to move their money into an escrow account," she said, adding that it can go to the PM Relief Fund. She said the Act has been amended twice earlier and the amendments being brought now were driven by demands of the stakeholders and also for the ease of doing business. "The amendments are being brought for bringing a better governance framework and also to look at the welfare of small and medium enterprises. It will reduce the burden on them. (Some) compounding offences are being reduced to non-compounding offences so that those who have done small omissions or commissions of compliance will be treated with kid gloves," she said. The minister said the government is looking at a Companies Act, which will be "far more friendlier for companies to comply" rather than them having to worry about its implementation. The minister said that ordinance will lapse by the end of this month and there was a need to get the bill passed. Responding to a query about including private companies under Section 164 of the Act, she said non-filing of financial statement or annual returns should result into some kind of disqualification for becoming directors in any company including private companies for relevant five years. "This was done so that we bring in good corporate practices," she said. Answering a query, she said the companies, which did not file annual returns and financial statements for two years or more, or did not apply for dormant status but existed without main activities, were the ones to get struck off by the Registrar after following due process.

Lok Sabha passes bill to amend Companies Act; Sitharaman says 4 lakh companies de-registered

In a veiled attack on Congress, Union Finance Minister Nirmala Sitharaman connected her idea of carrying Budget documents wrapped in a red cloth instead of a briefcase with alleged corruption in the previous UPA government at the Centre.

Speaking at the International Business Conference of Nagarathar, she said, "For Budget 2019, I did not carry a suitcase. We are not a suitcase-carrying government. A suitcase also denotes something else, suitcase-taking, suitcase-giving. Modiji's government is not a suitcase government."

For the presentation Union Budget for 2019-20, Sitharaman decided to go with the swadeshi 'bahi khata'&nbsp;in line with Indian traditions, instead of the Budget briefcase which she said belonged to the British colonial era.

She flashed the 'bahi khata,'&nbsp;which is a kind of a ledger, wrapped in a red cloth containing her Budget speech and other related papers outside the North Block.

The picture went viral on social media.

In a veiled attack on Congress, Union Finance Minister Nirmala Sitharaman connected her idea of carrying Budget documents wrapped in a red cloth instead of a briefcase with alleged corruption in the previous UPA government at the Centre.

In a veiled attack on Congress, Union Finance Minister Nirmala Sitharaman connected her idea of carrying Budget documents wrapped in a red cloth instead of a briefcase with alleged corruption in the previous UPA government at the Centre. Speaking at the International Business Conference of Nagarathar, she said, "For Budget 2019, I did not carry a suitcase. We are not a suitcase-carrying government. A suitcase also denotes something else, suitcase-taking, suitcase-giving. Modiji's government is not a suitcase government." For the presentation Union Budget for 2019-20, Sitharaman decided to go with the swadeshi 'bahi khata' in line with Indian traditions, instead of the Budget briefcase which she said belonged to the British colonial era. She flashed the 'bahi khata,' which is a kind of a ledger, wrapped in a red cloth containing her Budget speech and other related papers outside the North Block. The picture went viral on social media.

We are not a suitcase-carrying government: Nirmala Sitharaman

The government is in talks with foreign lenders to provide as much as $14.5 billion in credit to millions of its small firms, two officials said, in a sign the country's banking system may not be robust enough to do the job on its own.

The government is in discussions with multiple foreign lenders, including Germany's state-owned development bank KfW Group, the World Bank and some Canadian institutions to extend lines of credit to small enterprises, one of the officials, who did not want to be identified, told Reuters.

KfW's India office confirmed the discussions, though the main focus was on credit lines to support small businesses'&nbsp;solar power generation. The talks were at an early stage, KfW said.

The World Bank's India spokesperson did not reply to an email seeking comment.

The official said the government plans to source up to 1 trillion Indian rupees of loans from foreign institutions because Indian banks were not in a position to provide enough capital for the small business sector, which is seen as critical to job creation.

“We are exploring, we are having discussions with various funding agencies if something can be done (for small and medium firms),” the second official said.

The officials did not provide full details of the discussions they are having with banks, or identify all those they are talking to, but said talks are at a very early stage.

India's micro, small and medium enterprise (MSME) ministry is discussing the proposal to pull in foreign banks with the country's ministry of finance, which will make a final call, the second official said.

The push for foreign loans comes on the heels of the Indian government's announcement earlier this month that it plans to borrow about 700 billion rupees by issuing overseas sovereign bonds.

India's 63 million firms in the micro, small and medium firm sector are responsible for more than a quarter of the country's manufacturing and services output, and must be re-energised for Prime Minister Narendra Modi's government to kick-start the economy.&nbsp;

Gross domestic product growth fell to a five-year low of 5.8 per cent&nbsp;in the January-March quarter, well below the 8 per cent-plus rates that the government is targeting.

But credit availability for small and medium firms, which also account for about 45 per cent&nbsp;of India's total exports, has worsened due to a liquidity crisis in the country's shadow banking industry that has seen big lenders struggling to remain solvent.&nbsp;

State-owned banks, which dominate the sector, have not been able to drive increased lending because they are burdened with more than $145 billion in bad loans.

This has led to a severe credit squeeze for smaller firms. They pay up to 17 per cent&nbsp;annual interest on loans from banks, while the shadow banks, which are also known as non-banking financial companies (NBFCS) can charge as much as 20 per cent.

Last month, a study by a Reserve Bank of India panel said the overall deficit in credit for the MSME sector is estimated at about 20 trillion rupees to 25 trillion rupees.&nbsp;

But lending to such firms can be risky as some lack proper financial information, such as historical cash flow data, which makes challenging for banks to assess the credit risks.

To mitigate such risks for foreign banks, the loans would be given sovereign guarantees and be routed through Indian government agencies such as the Small Industries Development Bank of India, the first official said. 
&nbsp;

The government is in talks with foreign lenders to provide as much as $14.5 billion in credit to millions of its small firms, two officials said, in a sign the country's banking system may not be robust enough to do the job on its own.

The government is in talks with foreign lenders to provide as much as $14.5 billion in credit to millions of its small firms, two officials said, in a sign the country's banking system may not be robust enough to do the job on its own. The government is in discussions with multiple foreign lenders, including Germany's state-owned development bank KfW Group, the World Bank and some Canadian institutions to extend lines of credit to small enterprises, one of the officials, who did not want to be identified, told Reuters. KfW's India office confirmed the discussions, though the main focus was on credit lines to support small businesses' solar power generation. The talks were at an early stage, KfW said. The World Bank's India spokesperson did not reply to an email seeking comment. The official said the government plans to source up to 1 trillion Indian rupees of loans from foreign institutions because Indian banks were not in a position to provide enough capital for the small business sector, which is seen as critical to job creation. “We are exploring, we are having discussions with various funding agencies if something can be done (for small and medium firms),” the second official said. The officials did not provide full details of the discussions they are having with banks, or identify all those they are talking to, but said talks are at a very early stage. India's micro, small and medium enterprise (MSME) ministry is discussing the proposal to pull in foreign banks with the country's ministry of finance, which will make a final call, the second official said. The push for foreign loans comes on the heels of the Indian government's announcement earlier this month that it plans to borrow about 700 billion rupees by issuing overseas sovereign bonds. India's 63 million firms in the micro, small and medium firm sector are responsible for more than a quarter of the country's manufacturing and services output, and must be re-energised for Prime Minister Narendra Modi's government to kick-start the economy. Gross domestic product growth fell to a five-year low of 5.8 per cent in the January-March quarter, well below the 8 per cent-plus rates that the government is targeting. But credit availability for small and medium firms, which also account for about 45 per cent of India's total exports, has worsened due to a liquidity crisis in the country's shadow banking industry that has seen big lenders struggling to remain solvent. State-owned banks, which dominate the sector, have not been able to drive increased lending because they are burdened with more than $145 billion in bad loans. This has led to a severe credit squeeze for smaller firms. They pay up to 17 per cent annual interest on loans from banks, while the shadow banks, which are also known as non-banking financial companies (NBFCS) can charge as much as 20 per cent. Last month, a study by a Reserve Bank of India panel said the overall deficit in credit for the MSME sector is estimated at about 20 trillion rupees to 25 trillion rupees. But lending to such firms can be risky as some lack proper financial information, such as historical cash flow data, which makes challenging for banks to assess the credit risks. To mitigate such risks for foreign banks, the loans would be given sovereign guarantees and be routed through Indian government agencies such as the Small Industries Development Bank of India, the first official said.

Government seeks to tap foreign lenders for loans to its small firms: Report

Equity benchmark indices plunged further in the afternoon on Friday with selling pressure across the board amid concerns over growth and earnings recovery.

At 1:30pm, the BSE S&amp;P Sensex was down 505 points at 38,392 while the Nifty lost 154 points at 11,441.

At the National Stock Exchange, all sectoral indices were in the red. Nifty auto was down 2.16 per cent, realty by 1.8 per cent, financial services by 1.49 per cent and PSU banks by 1.45 per cent.

Among stocks, Bajaj Finance dropped 4.89 per cent to Rs 3,298 per share while Bajaj Finserve slipped 3.88 per cent to Rs 7,543 per share. Mahindra &amp; Mahindra was down 2.5 per cent, Tata Motors by 2.4 per cent, Eicher Motors by 2.2 per cent and Hero MotoCorp by 2.1 per cent.

Among the other losers were GAIL, IndusInd Bank, Tech Mahindra and UPL.

A day earlier, Finance Minister Nirmala Sitharaman said foreign portfolio investors (FPIs) should consider the option of structuring themselves as companies rather than trusts to avoid paying the increased surcharge announced in Union Budget for 2019-20.

FPIs registered as trusts will have to pay the new tax surcharge, Sitharaman said, quashing hopes that the government may tweak relevant portions of the Finance Bill to protect them from the effects of `super-rich tax.`

Reports say foreign investors have pulled out more than Rs 5,000 crore from the cash segment of Indian equity markets so far in July.

(With ANI inputs)

Equity benchmark indices plunged further in the afternoon on Friday with selling pressure across the board amid concerns over growth and earnings recovery. At 1:30pm, the BSE S&P Sensex was down 505 points at 38,392 while the Nifty lost 154 points at 11,441.

Equity benchmark indices plunged further in the afternoon on Friday with selling pressure across the board amid concerns over growth and earnings recovery. At 1:30pm, the BSE S&P Sensex was down 505 points at 38,392 while the Nifty lost 154 points at 11,441. At the National Stock Exchange, all sectoral indices were in the red. Nifty auto was down 2.16 per cent, realty by 1.8 per cent, financial services by 1.49 per cent and PSU banks by 1.45 per cent. Among stocks, Bajaj Finance dropped 4.89 per cent to Rs 3,298 per share while Bajaj Finserve slipped 3.88 per cent to Rs 7,543 per share. Mahindra & Mahindra was down 2.5 per cent, Tata Motors by 2.4 per cent, Eicher Motors by 2.2 per cent and Hero MotoCorp by 2.1 per cent. Among the other losers were GAIL, IndusInd Bank, Tech Mahindra and UPL. A day earlier, Finance Minister Nirmala Sitharaman said foreign portfolio investors (FPIs) should consider the option of structuring themselves as companies rather than trusts to avoid paying the increased surcharge announced in Union Budget for 2019-20. FPIs registered as trusts will have to pay the new tax surcharge, Sitharaman said, quashing hopes that the government may tweak relevant portions of the Finance Bill to protect them from the effects of `super-rich tax.` Reports say foreign investors have pulled out more than Rs 5,000 crore from the cash segment of Indian equity markets so far in July. (With ANI inputs)

Sensex tanks over 500 points as auto stocks take a hit; Nifty at 11,441

Finance Minister Nirmala Sitharaman on Monday said the government was using the offset money of Rafale deal to train people.

"We are using the offset money of Dassault Rafael deal in skill training. Today, we have signed an MoU with Dassault for skill training. During the election, the opposition was accusing us that we had given offset money to someone. I am saying that the government is giving the offset money to train people," she said here.

The Minister made the remarks in her address at the Vigyan Bhawan on the occasion of the fourth anniversary of Skill India Mission. Several other ministers including Law Minister Ravi Shankar Prasad attended the event.

"You should do whatever you are comfortable with. Looking for opportunity during college time was not easy. We had to search for places. During college time, there was only skill training in engineering.

"Learning Language is also a skill. A multi-disciplinary approach is a skill you must focus on. Utilise all the things given by the government. Don't settle for something because that is next to your house," she said.

Finance Minister Nirmala Sitharaman on Monday said the government was using the offset money of Rafale deal to train people. "We are using the offset money of Dassault Rafael deal in skill training.

Finance Minister Nirmala Sitharaman on Monday said the government was using the offset money of Rafale deal to train people. "We are using the offset money of Dassault Rafael deal in skill training. Today, we have signed an MoU with Dassault for skill training. During the election, the opposition was accusing us that we had given offset money to someone. I am saying that the government is giving the offset money to train people," she said here. The Minister made the remarks in her address at the Vigyan Bhawan on the occasion of the fourth anniversary of Skill India Mission. Several other ministers including Law Minister Ravi Shankar Prasad attended the event. "You should do whatever you are comfortable with. Looking for opportunity during college time was not easy. We had to search for places. During college time, there was only skill training in engineering. "Learning Language is also a skill. A multi-disciplinary approach is a skill you must focus on. Utilise all the things given by the government. Don't settle for something because that is next to your house," she said.

Government using offset money of Rafale deal to train people: Nirmala Sitharaman

The government has plans to raise as much as 3.25 trillion rupees in the next five years by reducing its stakes in some large state-owned firms to 40%, two senior government officials told Reuters, in the nation's biggest privatisation push in more than two decades.

Last week, finance minister <a href="https://www.google.com/url?client=internal-uds-cse&amp;cx=006054055338965708568:09spwrlibei&amp;q=https://www.wionews.com/business-economy/budget-2019-nirmala-sitharaman-to-launch-study-in-india-initiative-to-encourage-foreign-students-233240&amp;sa=U&amp;ved=2ahUKEwjngeeHjK_jAhULbo8KHQhRD_0QFjAAegQIABAC&amp;usg=AOvVaw05Zl3o-mH6_vHpdxNAwju9">Nirmala Sitharaman</a> in her budget announced that the government will look to reduce direct controlling stakes in some state-run firms on a case-by-case basis.

The plan will open up a steady stream of state companies to greater private investment, and target the kind of annual divestment revenue that will be crucial to meet fiscal deficit targets.

Prime Minister Narendra Modi's administration already sold government stakes in a host of companies to raise a record $40.92 billion in his first five-year term, nearly three times the divestment proceeds of $14.52 billion achieved by the Congress party government in 2009-2014. Modi was re-elected for a second term in a landslide victory in April-May.

The government has identified a number of state-owned firms, including explorer Oil and Natural Gas Corp, oil refiner Indian Oil Corp, gas transmitter GAIL (India) Ltd, power producers NHPC Ltd and NTPC, miners NMDC Ltd and Coal India, and Bharat Heavy Electricals Ltd, said the sources, who declined to be named due to the sensitive nature of the matter.

"We have done a calculation on current prices and we could get 3.25 trillion rupees if we bring our stake down to 40% in government companies, excluding banks," one of the officials, said.

The government has plans to raise as much as 3.25 trillion rupees in the next five years by reducing its stakes in some large state-owned firms to 40%, two senior government officials told Reuters, in the nation's biggest privatisation push in more than two decades.

The government has plans to raise as much as 3.25 trillion rupees in the next five years by reducing its stakes in some large state-owned firms to 40%, two senior government officials told Reuters, in the nation's biggest privatisation push in more than two decades. Last week, finance minister Nirmala Sitharaman in her budget announced that the government will look to reduce direct controlling stakes in some state-run firms on a case-by-case basis. The plan will open up a steady stream of state companies to greater private investment, and target the kind of annual divestment revenue that will be crucial to meet fiscal deficit targets. Prime Minister Narendra Modi's administration already sold government stakes in a host of companies to raise a record $40.92 billion in his first five-year term, nearly three times the divestment proceeds of $14.52 billion achieved by the Congress party government in 2009-2014. Modi was re-elected for a second term in a landslide victory in April-May. The government has identified a number of state-owned firms, including explorer Oil and Natural Gas Corp, oil refiner Indian Oil Corp, gas transmitter GAIL (India) Ltd, power producers NHPC Ltd and NTPC, miners NMDC Ltd and Coal India, and Bharat Heavy Electricals Ltd, said the sources, who declined to be named due to the sensitive nature of the matter. "We have done a calculation on current prices and we could get 3.25 trillion rupees if we bring our stake down to 40% in government companies, excluding banks," one of the officials, said.

Government seeks to raise $47 billion from stake sales in state firms over five years: Sources

Finance Minister Nirmala Sitharaman will on Wednesday reply to the debate on the Union Budget which she presented in Parliament on July 5.

Opposition leaders have criticised the Budget which aims to make India a $5 trillion economy in the next five years.

Congress leaders Shashi Tharoor and Adhir Ranjan Chowdhury have called the Budget disappointing.

"There is nothing new, it is a repetition of old promises. They are talking about new India but the Budget is the same old wine in a new bottle. There is no plan for employment generation, no new initiatives," Chowdhury had said.

Tharoor had express unhappiness over the government's decision to hike fuel prices.

"We are already paying the highest petrol rates in the world and they now want us to pay Rs 2 more for every litre. This will affect the 'aam aadmi'&nbsp;(common man) as prices of all items of consumption will become expensive with the rise in petrol price," Tharoor had said.

Congress spokesperson Randeep Singh Surjewala had described the Budget as "anti-people, anti-youth, anti-poor and farmers"."(Prime Minister Narendra) Modi ji's new government is against people, youth, poor and farmers. The Finance Minister not even once mentioned about the plight of farmers. She did not mention as to how the income of farmers will be doubled or how employment will be generated," Surjewala had said.&nbsp;

Finance Minister Nirmala Sitharaman will on Wednesday reply to the debate on the Union Budget which she presented in Parliament on July 5. Opposition leaders have criticised the Budget which aims to make India a $5 trillion economy in the next five years.

Finance Minister Nirmala Sitharaman will on Wednesday reply to the debate on the Union Budget which she presented in Parliament on July 5. Opposition leaders have criticised the Budget which aims to make India a $5 trillion economy in the next five years. Congress leaders Shashi Tharoor and Adhir Ranjan Chowdhury have called the Budget disappointing. "There is nothing new, it is a repetition of old promises. They are talking about new India but the Budget is the same old wine in a new bottle. There is no plan for employment generation, no new initiatives," Chowdhury had said. Tharoor had express unhappiness over the government's decision to hike fuel prices. "We are already paying the highest petrol rates in the world and they now want us to pay Rs 2 more for every litre. This will affect the 'aam aadmi' (common man) as prices of all items of consumption will become expensive with the rise in petrol price," Tharoor had said. Congress spokesperson Randeep Singh Surjewala had described the Budget as "anti-people, anti-youth, anti-poor and farmers"."(Prime Minister Narendra) Modi ji's new government is against people, youth, poor and farmers. The Finance Minister not even once mentioned about the plight of farmers. She did not mention as to how the income of farmers will be doubled or how employment will be generated," Surjewala had said.

Finance Minister Nirmala Sitharaman to reply to Budget debate in Parliament today

Finance Minister Nirmala Sitharaman on Wednesday said that the government was committed to the path of fiscal consolidation without compromising on requirements of public expenditure and there was an increase in tax receipts of the government.

Replying to a marathon debate on the <a href="https://www.google.com/url?client=internal-uds-cse&amp;cx=006054055338965708568:09spwrlibei&amp;q=https://www.wionews.com/business-economy/budget-2019-it-gives-wings-to-farmers-youngsters-women-home-minister-amit-shah-233399&amp;sa=U&amp;ved=2ahUKEwiN6qTal6rjAhWr4XMBHQKXAGsQFjAEegQICBAC&amp;usg=AOvVaw10VBLflL7e5H3IuLDTFHZk">union budget 2019-20</a>, she said the government was committed to national security as also to "sabka saath, sabka vikas".

She said that the amount of money spent on central government schemes was higher two years after the implementation of Goods and Services Tax.

She also said the government was committed to "substantially boost" investment in agriculture and social sector, particularly education and health.

Finance Minister referred to the government setting fiscal deficit target of 3.3 per cent from an earlier 3.4 per cent and said there should be no anxiety.&nbsp;

"The government is committed to continue the path of fiscal consolidation without compromising on requirements of public expenditure placed by various sectors," she said.&nbsp;

"Increased investment in the social sector will be ensured through prudent rationalization of expenditure and mobilisation of additional resources," she added.

Several members took part in the debate which lasted over 15 hours.&nbsp;

Finance Minister Nirmala Sitharaman on Wednesday said that the government was committed to the path of fiscal consolidation without compromising on requirements of public expenditure and there was an increase in tax receipts of the government.

Finance Minister Nirmala Sitharaman on Wednesday said that the government was committed to the path of fiscal consolidation without compromising on requirements of public expenditure and there was an increase in tax receipts of the government. Replying to a marathon debate on the union budget 2019-20, she said the government was committed to national security as also to "sabka saath, sabka vikas". She said that the amount of money spent on central government schemes was higher two years after the implementation of Goods and Services Tax. She also said the government was committed to "substantially boost" investment in agriculture and social sector, particularly education and health. Finance Minister referred to the government setting fiscal deficit target of 3.3 per cent from an earlier 3.4 per cent and said there should be no anxiety. "The government is committed to continue the path of fiscal consolidation without compromising on requirements of public expenditure placed by various sectors," she said. "Increased investment in the social sector will be ensured through prudent rationalization of expenditure and mobilisation of additional resources," she added. Several members took part in the debate which lasted over 15 hours.

Government committed to fiscal consolidation, boost investment in social sector: Sitharaman

A day after <a href="https://www.wionews.com/business-economy/sensex-crashes-over-750-points-to-close-at-38720-nifty-ends-at-11559-234011">a huge crash&nbsp;on Monday</a>, the BSE Sensex extended its previous day's losses in early trade on Tuesday opening over 248 points down. It, however, recovered lost ground to remain&nbsp;102 points down.

NSE Nifty was 71.28 points down as the markets continued to reel under&nbsp;post Budget stress.

On Tuesday morning, Titan shares <a href="https://www.wionews.com/business-economy/sensex-nifty-open-in-red-why-stock-markets-did-not-like-the-budget-233896">plunged nine per cent&nbsp;</a>with UPL, HDFC, Bajaj Finance and Bajaj Finserv trading in the red.

The Sensex had plunged 900 points on Monday at one point to close at 38,720 points, the Nifty too dived 252 points to close at 11,558.60. The markets were hit mainly due to Union Budget proposal which failed to announce measures to boost the auto sector including proposal to increase the minimum public shareholding in listed companies to 35 per cent from 25 per cent, threatening a wave of new issuance.

Punjab National Bank (PNB) stocks had fallen over eight per cent on Monday after the bank reported a borrowing fraud of Rs 3,800 crore in Bhushan Power &amp; Steel Ltd's account to the Reserve Bank of India (RBI).

The selloff was widespread with 46 of the 50 stocks in the Nifty 50 index ending up in the red.

The auto index had tumbled to its lowest in over three years and settled 3.26 per cent down in Monday's close. Hero MotoCorp Ltd fell as much as 6.06 per cent&nbsp;to its lowest since September 2015, while Maruti Suzuki India closed at its lowest in over two years.

A day after a huge crash on Monday, the BSE Sensex extended its previous day's losses in early trade on Tuesday opening over 248 points down. It, however, recovered lost ground to remain 102 points down.

A day after a huge crash on Monday, the BSE Sensex extended its previous day's losses in early trade on Tuesday opening over 248 points down. It, however, recovered lost ground to remain 102 points down. NSE Nifty was 71.28 points down as the markets continued to reel under post Budget stress. On Tuesday morning, Titan shares plunged nine per cent with UPL, HDFC, Bajaj Finance and Bajaj Finserv trading in the red. The Sensex had plunged 900 points on Monday at one point to close at 38,720 points, the Nifty too dived 252 points to close at 11,558.60. The markets were hit mainly due to Union Budget proposal which failed to announce measures to boost the auto sector including proposal to increase the minimum public shareholding in listed companies to 35 per cent from 25 per cent, threatening a wave of new issuance. Punjab National Bank (PNB) stocks had fallen over eight per cent on Monday after the bank reported a borrowing fraud of Rs 3,800 crore in Bhushan Power & Steel Ltd's account to the Reserve Bank of India (RBI). The selloff was widespread with 46 of the 50 stocks in the Nifty 50 index ending up in the red. The auto index had tumbled to its lowest in over three years and settled 3.26 per cent down in Monday's close. Hero MotoCorp Ltd fell as much as 6.06 per cent to its lowest since September 2015, while Maruti Suzuki India closed at its lowest in over two years.

Post Budget blues: Sensex slides 248 points in early trade; recovers later

The BSE Sensex lost 400 points at 39,112 in early trade on Monday in the <a href="https://www.wionews.com/business-economy/sensex-falls-395-points-nifty-below-11900-as-budget-2019-fails-to-cheer-markets-233275">first post-Budget week</a>. The Nifty opened down as well trading 120 points down at 11,691 points.

After the Budget on Friday, the Sensex had closed 0.99 per cent lower at 39,513.39. The <a href="https://www.wionews.com/business-economy/sensex-slides-310-points-after-nirmala-sitharamans-budget-presentation-233221">broader Nifty had closed down </a>1.14 per cent at 11,811.15 points.

Monday morning saw car companies - &nbsp;<a href="https://www.wionews.com/business-economy/sensex-nifty-open-in-red-why-stock-markets-did-not-like-the-budget-233896">Hero MotoCorp, Maruti Suzuki, Tata Motors</a> - trading at low levels including Larsen and Toubro &amp; state-owned ONGC.&nbsp;

Punjab and National Bank(PNB) stocks were down seven per cent.&nbsp;PNB on Saturday had said it had reported a borrowing fraud of Rs 3,800 crore rupees in Bhushan Power &amp; Steel Ltd's account to the Reserve Bank of India (RBI).

PNB has been defrauded of over $2 billion in a separate scam that came to light last year. As a result, PNB stocks plunged on Monday.

The Rupee also opened lower at 68.57 against the US dollar gainst Friday's close of 68.42 against the dollar.

During the Budget, the BSE Sensex had fallen 394.67 points to 39,513.39 and the Nifty50 declined 135.60 points to 11,811.20 after finance minister Nirmala Sitharaman had proposed increasing the minimum public shareholding in listed companies to 35 per cent from 25 per cent.

Eight of the eleven sector indexes compiled by the NSE closed in the red, while sixteen of the nineteen sector indexes compiled by BSE ended lower.

Shares of Tata Consultancy Services was the biggest drag on the index after it tumbled 3.6 per cent. India's IT index was down 2.5 per cent.

The BSE Sensex lost 400 points at 39,112 in early trade on Monday in the first post-Budget week. The Nifty opened down as well trading 120 points down at 11,691 points.

The BSE Sensex lost 400 points at 39,112 in early trade on Monday in the first post-Budget week. The Nifty opened down as well trading 120 points down at 11,691 points. After the Budget on Friday, the Sensex had closed 0.99 per cent lower at 39,513.39. The broader Nifty had closed down 1.14 per cent at 11,811.15 points. Monday morning saw car companies - Hero MotoCorp, Maruti Suzuki, Tata Motors - trading at low levels including Larsen and Toubro & state-owned ONGC. Punjab and National Bank(PNB) stocks were down seven per cent. PNB on Saturday had said it had reported a borrowing fraud of Rs 3,800 crore rupees in Bhushan Power & Steel Ltd's account to the Reserve Bank of India (RBI). PNB has been defrauded of over $2 billion in a separate scam that came to light last year. As a result, PNB stocks plunged on Monday. The Rupee also opened lower at 68.57 against the US dollar gainst Friday's close of 68.42 against the dollar. During the Budget, the BSE Sensex had fallen 394.67 points to 39,513.39 and the Nifty50 declined 135.60 points to 11,811.20 after finance minister Nirmala Sitharaman had proposed increasing the minimum public shareholding in listed companies to 35 per cent from 25 per cent. Eight of the eleven sector indexes compiled by the NSE closed in the red, while sixteen of the nineteen sector indexes compiled by BSE ended lower. Shares of Tata Consultancy Services was the biggest drag on the index after it tumbled 3.6 per cent. India's IT index was down 2.5 per cent.

Post Budget, Sensex slips 400 points; car companies bleed

On Friday, Finance Minister Nirmala Sitharaman <a href="https://www.wionews.com/business-economy/sensex-falls-395-points-nifty-below-11900-as-budget-2019-fails-to-cheer-markets-233275">presented a Budget</a> that promised large infrastructure investment, offered a rescue package for the distressed NBFCs and allocated an unexpectedly higher - Rs 70,000 crore - towards recapitalisation of Public Sector Banks, but it disappointed the Dalal Street.

Sensex and Nifty <a href="https://www.wionews.com/business-economy/post-budget-sensex-slips-400-points-car-companies-bleed-233893">fell on Monday</a> morning over a percentage point each. While Sitharaman did not tinker with the Long-Term Capital Gains (LTCG) tax on equity as per the market expectations, she did tweak the STT or Securities Transaction Tax some bit, by announcing that it will now be levied only on the difference between strike price and settlement price.

Experts say while higher tax on HNIs or high net worth individuals and plan for higher public floating for listed companies did not go down well with investors, more than presence of negative news it is the absence of big positives that seems to have made the market turn southward, as valuations are high in certain pockets and there are no supportive factors to sustain those prices.

The Finance Minister's announcement asking stock market regulator Sebi to increase public shareholding from 25 per cent to 35 per cent was seen as the biggest wealth-shifting announcement, as this would bring in a lot of additional paper in the market, sucking out liquidity. Some analysts read it as a negative for the market and insisted that some of the businesses, especially in the case of mid-cap and small-cap, promoters would end up loosing more.

The BSE Sensex lost 400 points at 39,112 in early trade on Monday in the first post-Budget week. The Nifty opened down as well trading 120 points down at 11,691 points.

During the Budget, the BSE Sensex had fallen 394.67 points to 39,513.39 and the Nifty50 declined 135.60 points to 11,811.20 after finance minister Nirmala Sitharaman had proposed increasing the minimum public shareholding in listed companies to 35 per cent from 25 per cent.

On Friday, Finance Minister Nirmala Sitharaman presented a Budget that promised large infrastructure investment, offered a rescue package for the distressed NBFCs and allocated an unexpectedly higher - Rs 70,000 crore - towards recapitalisation of Public Sector Banks, but it disappointed the Dalal Street.

On Friday, Finance Minister Nirmala Sitharaman presented a Budget that promised large infrastructure investment, offered a rescue package for the distressed NBFCs and allocated an unexpectedly higher - Rs 70,000 crore - towards recapitalisation of Public Sector Banks, but it disappointed the Dalal Street. Sensex and Nifty fell on Monday morning over a percentage point each. While Sitharaman did not tinker with the Long-Term Capital Gains (LTCG) tax on equity as per the market expectations, she did tweak the STT or Securities Transaction Tax some bit, by announcing that it will now be levied only on the difference between strike price and settlement price. Experts say while higher tax on HNIs or high net worth individuals and plan for higher public floating for listed companies did not go down well with investors, more than presence of negative news it is the absence of big positives that seems to have made the market turn southward, as valuations are high in certain pockets and there are no supportive factors to sustain those prices. The Finance Minister's announcement asking stock market regulator Sebi to increase public shareholding from 25 per cent to 35 per cent was seen as the biggest wealth-shifting announcement, as this would bring in a lot of additional paper in the market, sucking out liquidity. Some analysts read it as a negative for the market and insisted that some of the businesses, especially in the case of mid-cap and small-cap, promoters would end up loosing more. The BSE Sensex lost 400 points at 39,112 in early trade on Monday in the first post-Budget week. The Nifty opened down as well trading 120 points down at 11,691 points. During the Budget, the BSE Sensex had fallen 394.67 points to 39,513.39 and the Nifty50 declined 135.60 points to 11,811.20 after finance minister Nirmala Sitharaman had proposed increasing the minimum public shareholding in listed companies to 35 per cent from 25 per cent.

Sensex, Nifty open in red: Why stock markets did not like the Budget

In her first Budget speech today, Finance Minister Nirmala Sitharaman has proposed a model tenancy law to lay the ground for reforms to promote rental housing. Current rental laws, she said, are archaic as they do not address lessor-lessee relationships fairly.

Modi Sarkar’s first Budget of its second term was a follow-up to the interim budget presented a few months ago. Yet it has proposed some far-reaching measures. One such far-reaching proposal is the promise of tenancy law reform.

The re-structured rural housing scheme Pradhan Mantri Awas Yojana-Gramin (PMAY-G), which has the objective of ‘Housing for All by 2022’, was launched by Prime Minister Narendra Modi in November, 2016. &nbsp;It has an ambitious target of 2.95 crore houses to be built by 2022. 
 
This is no easy task. At the same time, there are tens of thousands of houses in Indian cities that are built but remain unoccupied. They remain unoccupied and an unproductive asset because neither the owner can afford to rent it out and nor can a tenant afford to occupy it. The reason is that tenancy laws are loaded against the owners in many cities. Loopholes allow unscrupulous tenants to grab the house or stay on after the lease has expired. This stops many owners from letting out homes they do not need for their own use.

The situation calls for the tenant-owner relationship to be established on a fair and reasonable basis. Reform of tenancy laws towards this end would bring into the market hundreds of thousands of built-up homes across the country especially in the metros. Thus, affordable homes would be available under a win-win arrangement that suits both lessor and lessee and puts an idle asset to good use. 
 
(Disclaimer: WION Edit is the channel's take on the big events of the world) 
&nbsp;

In her first Budget speech today, Finance Minister Nirmala Sitharaman has proposed a model tenancy law to lay the ground for reforms to promote rental housing. Current rental laws, she said, are archaic as they do not address lessor-lessee relationships fairly.

In her first Budget speech today, Finance Minister Nirmala Sitharaman has proposed a model tenancy law to lay the ground for reforms to promote rental housing. Current rental laws, she said, are archaic as they do not address lessor-lessee relationships fairly. Modi Sarkar’s first Budget of its second term was a follow-up to the interim budget presented a few months ago. Yet it has proposed some far-reaching measures. One such far-reaching proposal is the promise of tenancy law reform. The re-structured rural housing scheme Pradhan Mantri Awas Yojana-Gramin (PMAY-G), which has the objective of ‘Housing for All by 2022’, was launched by Prime Minister Narendra Modi in November, 2016. It has an ambitious target of 2.95 crore houses to be built by 2022. This is no easy task. At the same time, there are tens of thousands of houses in Indian cities that are built but remain unoccupied. They remain unoccupied and an unproductive asset because neither the owner can afford to rent it out and nor can a tenant afford to occupy it. The reason is that tenancy laws are loaded against the owners in many cities. Loopholes allow unscrupulous tenants to grab the house or stay on after the lease has expired. This stops many owners from letting out homes they do not need for their own use. The situation calls for the tenant-owner relationship to be established on a fair and reasonable basis. Reform of tenancy laws towards this end would bring into the market hundreds of thousands of built-up homes across the country especially in the metros. Thus, affordable homes would be available under a win-win arrangement that suits both lessor and lessee and puts an idle asset to good use. (Disclaimer: WION Edit is the channel's take on the big events of the world)

WION Edit: Home affair - making it available and affordable

Memorable lines from the Union Budget 2019. Sangam literature, life principles and more; here are some of the quotable quotes from Nirmala Sitharaman's maiden budget.

Gravitas: Nirmala Sitharaman's maiden Budget: Quotable quotes