Is FDI solution of everything???
By Excalibur Stevens Biswas
The growth story is now linked to FDI and Disinvestment and it is the theme
of the governance by the RSS ruled BJP Government of India,remote
controlled by US economic interest.
FDI in Defence, railways has been the assnce of Union budget.
<http://www.firstpost.com/politics/fdi-defence-railways-tmc-left-join-hands-oppose-govt-1654509.html
The Union Cabinet allowed foreign investment in the Railways
<http://economictimes.indiatimes.com/topic/Railways for the first time and
raised limit for such investment in the defence sector
<http://economictimes.indiatimes.com/topic/defence%20sector, steps
intended to raise funds for expansion of the Railways and encourage
domestic manufacture of arms.
100 per cent foreign investment in railway infrastructure projects will be
allowed while in the case of defence the limit has been raised to 49 per
cent from the current 26 per cent, subject to the Indian owners exercising
management control.
India has opened up defence sector for FDI.
Insurance is also subjected to FDI.
More over,the government is proposing a major overhaul of its foreign
direct investment (FDI)
<http://timesofindia.indiatimes.com/topic/foreign-direct-investment-FDI)>
policy as part of the Narendra Modi-led administration's plan to woo
overseas investors and improve ease of doing business in India, which ranks
at a lowly 134 out of 189 global economies in this respect, according to
the World Bank.
The government is looking to adopt the international practice of linking
policy with industrial codes to ensure foreign investors won't have to wade
through complicated press notes or circulars to decipher the policy for a
sector.
"Discussions are on. There is merit in seeding the industrial codes with
the FDI policy," said a government official aware of the deliberations. The
move is in line with the BJP's election manifesto pledge to ensure "that a
conducive, enabling environment is created making 'doing business' in India
easy. We will focus on cutting the red tape, simplifying the procedures and
removing the bottlenecks."
Multi brand is the greatest stake for US economy in India.Political
compulsion postponed this despite a declaration made by earlier UPA second
government just because lacking the mandate as TMC led by Mamata Banerjee
withdrew support.Ironically it united all forces of open market economy to
create a Namo tsunami for the missing mandate.
The mandate achieved. Second generation of reforms happens to be topmost
priority.This government is simply by passing the parliament and policies
as well as legislation are made directly by the cabinet on the
recommendations made by Private parties,extra constitutional elements.
Expressing its strong opposition to government's move to increase FDI
<http://economictimes.indiatimes.com/topic/FDI cap in insurance
<http://economictimes.indiatimes.com/topic/insurance sector, the CPI(M)
today asked all Opposition parties to join hands in opposing the FDI policy.
"The two-and-a-half months period of the Narendra Modi government
<http://economictimes.indiatimes.com/topic/Narendra%20Modi%20government
has confirmed that it will not only pursue the same neo-liberal policies as
the previous UPA government
<http://economictimes.indiatimes.com/topic/UPA%20government but it will do
so more vigorously," the Central Committee of the CPI(M) said in a
statement after its three-day meeting in New Delhi.
It is not going to happen.
FDI in multi brand is imminent and single brand retail FDI combined with
etailing has already ensured monopolistic control of foreign money on the
retail market countrywide.
The left has lost its ground despite monopolistic control on trade
unions.Inparliamentary politics is has lost its relevance.
India Incs and foreign capital ensured a solid mandate for FDI
Disinvestment raj and Congress only failed to achieve second generation
reform agenda for which it is kicked out.
There is no basic difference the two main rivals of Indian polity ie
Congress and Bjp.They are aligned to destroy the working as well as
agrarian classes to open up the free market economy.
It has been always the trend.Minority governments did all the damage just
because of this two party combination.
Banking Regulation act simply omitted the provision of ceiling of voting
right of the private stakeholders.Itwas limited to ten percent only.
Indian PSU banks hold the key of the inclusive economy since
nationalisation.
The Nayak Committee has recommended repeal of the Bank Nationalisation Act
and SBI Act, which is preposterous given the unparalleled contribution of
PSBs to the economic development of the country.
NDA government has singlehandedly targeted PSBs to generate FDI with its
disinvestment plan.FOS would cut down government shares to twenty nine
percent and thanks to new banking regulation act,unlimited voting right of
the private and foreign investors would make it private.
The government has not to repeal nationalisation and rather it would simply
gift the PSBs to private and foreign parties.
For free flow of foreign capital in the dollar linked economy
,disinvestment is the prime methodology which would attract foreign
investors as it is projected by the SENSEX and NIFTY bull run continued.
It is the ultimate solution for the basic problems like growth
rate,industrial and agri production,fiscal deficit,inflation and price
rise.This is it.Itis the ultimate balance of payment.
Trade unions oppose FDI and disinvestment.Thus,labour reforms have to be
passed sooner or later to kill factory act,trade unions and labour
commission with a single stroke.
ALL PSBs have to be sold off within three years to achieve th ultimate FDI
Realty Raj of complete ethnic cleansing.
State Bank of India happens to be lifeline network of Indian financial
system.Ithappens to be the supreme target for the FDI Dinsinvestment
regime.
Eyeing Rs 58,425 crore this year by selling government stake in PSUs,
Finance Minister Arun Jaitley on Sunday said that disinvestment process is
on schedule.
"The Department of Disinvestment (DoD) has already appointed advisors in
some cases and the follow-up actions on those PSUs on some part of equity
is to be divested is already progressing as scheduled," he said after
addressing the Central Board of the Reserve Bank here.
The process for disinvestment in ONGC and NHPC, among others, has already
been started.
Also, the government is looking to sell 5 percent stake in SAIL and 10
percent each in RINL and HAL in the current fiscal besides an outright sale
of Tyre Corporation of India.
The disinvestment of 10 percent through an initial public offer (IPO) in
Rashtriya Ispat Nigam Ltd (RINL) is tentatively scheduled for completion in
the current financial year.
The DoD is at present engaged in outright sale of only one CPSE, Tyre
Corporation of India (TCIL).
The Cabinet has also approved sale of residual government equity in
Hindustan Zinc and Balco.
Jaitley further said: "We have certainly given the figure involved in that
and the DoD is working on it."
In the Budget, the government has estimated to collect Rs 43,425 crore from
selling stake in PSUs and another Rs 15,000 crore from sale of residual
stake in the erstwhile government companies.
Of the disinvestment target of Rs 40,000 crore in 2013-14, the government
had mobilised Rs 15,820 crore. In 2012-13, of the Rs 30,000 crore target,
Rs 23,957 crore was raised.
In 2011-12, only Rs 13,894 crore was raised of the Rs 40,000 crore target.
Foreign direct investment (FDI) is a direct investment into production or
business in a country by an individual or company of another country,
either by buying a company in the target country or by expanding operations
of an existing business in that country. Foreign direct investment is in
contrast to portfolio investment
<http://en.wikipedia.org/wiki/Portfolio_investment which is a passive
investment in the securities of another country such as stocks
<http://en.wikipedia.org/wiki/Stock and bonds
<http://en.wikipedia.org/wiki/Bond_finance)>.
Broadly, foreign direct investment includes "mergers and acquisitions,
building new facilities, reinvesting profits earned from overseas
operations and intra company loans". In a narrow sense, foreign direct
investment refers just to building new facilities. The numerical FDI
figures based on varied definitions are not easily comparable.
The foreign direct investor may acquire voting power of an enterprise in an
economy through any of the following methods:
-
by incorporating a wholly owned subsidiary or company anywhere
-
by acquiring shares in an associated enterprise
-
through a merger or an acquisition of an unrelated enterprise
-
participating in an equity joint venture
<http://en.wikipedia.org/wiki/International_joint_venture with another
investor or enterprise
The comments in the editorial “One bad apple?” (August 8) are prejudiced
against public sector banks and biased in favour of privatisation. The
manner in which you have argued for the implementation of the PJ Nayak
Committee’s recommendations makes this clear.
The Nayak Committee has recommended repeal of the Bank Nationalisation Act
and SBI Act, which is preposterous given the unparalleled contribution of
PSBs to the economic development of the country.
The banking system was insulated from the recent global financial tsunami
only because our banks were predominantly under the public sector. Further,
given the present economic scenario of stagflation, PSBs have a great role
to play in not only achieving total financial inclusion but catering to the
needs of all segments of the economy. You have linked the SK Jain bribery
episode to the inadequate pay packets of CMDs. While this needs to be
substantially increased, emoluments alone do not guarantee integrity.
What PSBs need is better regulation and monitoring by the Government and
the RBI and not de-regulation and private control. The Syndicate Bank-SK
Jain bribery episode is another reminder of the need to plug the loopholes
in the banking system to weed out corruption. In this context, t the Nayak
Committee recommendations of distancing the Government from PSBs must not
be given importance.
CH Venkatachalam, Gen Sec
All-India Bank Employees’ Association
http://www.thehindubusinessline.com/opinion/letters/regulate-public-sector-banks/article6305104.ece?utm_source=RSS_Feed&utm_medium=RSS&utm_campaign=RSS_Syndication
Banking Regulation Act, 1949
[Act no. 10 of Year 1949, dated 10th. March, 1949]
Contents
Sections
Particulars
Part I
Preliminary
1
Short title, extent and commencement
<http://www.advocatekhoj.com/library/bareacts/bankingregulation/1.php?Title=Banking%20Regulation%20Act,%201949&STitle=Short%20title,%20extent%20and%20commencement
2
Application of other laws not barreds
<http://www.advocatekhoj.com/library/bareacts/bankingregulation/2.php?Title=Banking%20Regulation%20Act,%201949&STitle=Application%20of%20other%20laws%20%20not%20barreds
3
Act to apply to co-operative societies in certain cases
<http://www.advocatekhoj.com/library/bareacts/bankingregulation/3.php?Title=Banking%20Regulation%20Act,%201949&STitle=Act%20to%20apply%20to%20co-operative%20%20societies%20in%20certain%20cases
4
Power to suspend operation of Act
<http://www.advocatekhoj.com/library/bareacts/bankingregulation/4.php?Title=Banking%20Regulation%20Act,%201949&STitle=Power%20to%20suspend%20operation%20%20of%20Act
5
Interpretation
<http://www.advocatekhoj.com/library/bareacts/bankingregulation/5.php?Title=Banking%20Regulation%20Act,%201949&STitle=Interpretation
5A
Act to override memorandum, articles, etc.
<http://www.advocatekhoj.com/library/bareacts/bankingregulation/5a.php?Title=Banking%20Regulation%20Act,%201949&STitle=Act%20to%20override%20memorandum,%20%20articles,%20etc.
Part II
Business Of Banking Companies
6
Form and business in which banking companies may engage
<http://www.advocatekhoj.com/library/bareacts/bankingregulation/6.php?Title=Banking%20Regulation%20Act,%201949&STitle=Form%20and%20business%20in%20which%20%20banking%20companies%20may%20engage
7
Use of words "bank", "banker", "banking" or "banking company"
<http://www.advocatekhoj.com/library/bareacts/bankingregulation/7.php?Title=Banking%20Regulation%20Act,%201949&STitle=Use%20of%20words%20%22bank%22,%20banker%20banking%20or%20banking%20company
8
Prohibition of trading
<http://www.advocatekhoj.com/library/bareacts/bankingregulation/8.php?Title=Banking%20Regulation%20Act,%201949&STitle=Prohibition%20of%20trading
9
Disposal of non-banking assets
<http://www.advocatekhoj.com/library/bareacts/bankingregulation/9.php?Title=Banking%20Regulation%20Act,%201949&STitle=Disposal%20of%20non-banking%20assets
10
Prohibition of employment of Managing Agents and restrictions on certain
forms of employment
<http://www.advocatekhoj.com/library/bareacts/bankingregulation/10.php?Title=Banking%20Regulation%20Act,%201949&STitle=Prohibition%20of%20employment%20of%20Managing%20Agents%20and%20restrictions%20on%20certain%20forms%20of%20employment
10A
Board of Directors to include persons with professional or other experience
<http://www.advocatekhoj.com/library/bareacts/bankingregulation/10a.php?Title=Banking%20Regulation%20Act,%201949&STitle=Board%20of%20Directors%20to%20%20include%20persons%20with%20professional%20or%20other%20experience
10B
Banking company to be managed by whole-time Chairman
<http://www.advocatekhoj.com/library/bareacts/bankingregulation/10b.php?Title=Banking%20Regulation%20Act,%201949&STitle=Banking%20company%20to%20be%20%20managed%20by%20whole-time%20Chairman
10BB
Power of Reserve Bank to appoint Chairman of a banking company
<http://www.advocatekhoj.com/library/bareacts/bankingregulation/10bb.php?Title=Banking%20Regulation%20Act,%201949&STitle=Power%2
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