Top Business News of the Week – May 22 to May 28


business-news-of-the-week-business-news-this-weekLots of things happened in the business world last week. Here are the some of the top stories we tried to include in this new feature of the business news portal.

Corporate News/ Company News This Week

Tata’s foray into e-commerce with a 25-year plan

Tata enters into the e-commerce domain with a 25 years plan. E-commerce has been one of the fastest growing sectors .

State Bank of India profit tanks 66% but stock earns big on quick NPA action

The State Bank of India’s net profit for the March quarter down by 66 percent.  But the shares of the largest bank in India registered impressive growth on the Bombay Stock Exchange. The stock rose 6.42 percent at Rs.195.55 on Friday.

French Auto Renault forays into pre-owned car business in India

Giving a boost to the pre-owned car business in India, Renault,  French  auto major entered into this space by opening its first outlet in Bengaluru. There are many top companies offering their services in the pre-owned car business.

Microsoft to trim smartphone business; plans to cut 1,850 jobs

Microsoft will trim its smartphone business, as per its announcement on May 25, the corporation will cut around 1850 jobs. Two years back the corporation had bought Nokia, the handset maker.

Government News: Finance Ministry/Cabinet/CCEA News

Panama Papers: FM Jaitley warns strict action

Finance Minister Arun Jaitley on Saturday said that stern action would be taken against people stashing black money. He said the government would initiate against those found to have parked funds illegally in accounts named in ‘Panama Papers’.

Financial restructuring of Hindustan Fertilizer Corporation Limited for faster revival of Barauni Unit

The Union Cabinet, chaired by the Prime Minister Shri Narendra Modi has given its approval for financial restructuring of Hindustan Fertilizers Corporation Limited (HFCL). The Cabinet, amongst other things, approved waiver of GoI loan of Rs. 1916.14 crores (as on 31.03.2015) and the outstanding interest on GoI loan as on date (the interest amount was Rs. 7163.35 crores as on 31.3.2015). The Cabinet also approved transfer of 56 acres of Ash Dyke land of Barauni unit to Bihar State Power Generation Company Limited (BSPGCL) to settle dues of HFCL for faster revival of Barauni Unit.

Union Cabinet nods National Capital Goods Policy

The Union Cabinet, chaired by the Prime Minister Shri Narendra Modi has given its approval for National Capital Goods Policy. This is first ever policy for Capital Goods sector with a clear objective of increasing production of capital goods from Rs.2,30,000 crore in 2014-15 to Rs.7,50,000 crore in 2025 and raising direct and indirect employment from the current 8.4 million to 30 million.

EU-India Make Co-ordinated Proposal for KP Chair in 2018 and 2019

Official representatives of the European Union and India participating in the Kimberley Process (KP) Intersessional, currently under way in Dubai, made a co-ordinated proposal under which EU will assume responsibility as KP Vice-Chair in 2017 and as KP Chair in 2018 while India will become KP Vice-Chair in 2018 and assume the position of KP Chair in 2019.

Clarification on implementation of Foreign Account Tax Compliance Act (FATCA) and Common Reporting Standard (CRS) 

An Inter-Governmental Agreement between India and USA was signed for implementation of Foreign Account Tax Compliance Act (FATCA). The Government of India has also joined the Multilateral Competent Authority Agreement (MCAA) for Automatic Exchange of Information as per Common Reporting Standard (CRS). To provide guidance for implementation of FATCA and CRS, a Guidance Note was released on 31stAugust 2015 which was subsequently updated on 31.12.2015. Further, a clarification was issued on 19thFebruary, 2016.

Cabinet gives ex-post facto approval to the proposal of M/s Yes Bank Ltd. for increase in the foreign investment limit from 41.87% to 74%

The Cabinet Committee on Economic Affairs chaired by the Prime Minister Shri Narendra Modi on May 25 granted ex-post facto approval to the proposal of M/s Yes Bank Ltd. for increase in the foreign investment limit to 74% from the existing foreign equity of 41.87% without any sub-limits, for investment by way of issue of non-equity shares and/or other permissible instruments to eligible non-resident investors.

Extension of Scheme for E-assessment to Hyderabad and Kolkata during the Current Financial Year 2016-17

Paperless assessment/ e-mail based assessment on a pilot basis was commenced in the financial year 2015-16 in non-corporate charges of five cities i.e. Ahmedabad, Bangalore, Chennai, Delhi, and Mumbai. The e-mail based assessment scheme has now been extended to two more cities, namely Hyderabad and Kolkata during the Current Financial Year 2016-17.

India signs loan agreement with world bank for IBRD loan of US$ 100 million for ‘Karnataka Urban Water Supply Modernization project’

The Loan and Project Agreements for World Bank (IBRD) assistance of US$ 100 million for the Karnataka Urban Water Supply Modernization project were signed between Government of India/Government of Karnataka and the World Bank on May 24.

Quarterly Report on Debt Management for the Quarter January-March 2016 (Q 4 FY 16) released

Since April-June (Q1) 2010-11, Middle Office (MO), Budget Division, Department of Economic Affairs, Ministry of Finance, is bringing-out a Quarterly Report on Debt Management on a regular basis. The Current Report pertains to the Quarter January-March 2016 (Q 4 FY 16).

Committee for examining applications made under Rule 10VA notified

The Finance Act, 2015 inserted a new Section 9A to the Income-tax Act, 1961 with effect from 01.04.2016 to provide for a special regime in respect of offshore funds having fund managers located in India.  The necessary guidelines for application of Section 9A have been published in the Official Gazette vide Notification No. SO 110 (E) dated 15.03.2016 by way of insertion of rules 10V, 10VA, 10VB and Forms 3CEJ & 3K in the Income-tax Rules, 1962.


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