Month: February 2021

Increasing FDI limits in insurance has been a longstanding demand of the United States where most of the big insurance majors are situated….reports Asian Lite News

In a big boost to FDI inflows and the insurance sector, Finance Minister Nirmala Sitharaman on Monday announced increase of FDI limits from 49 per cent to 74 per cent.

Shares of insurance stocks surged after the announcement. ICICI Prudential Life Insurance was up by 2.87 per cent and Max Financial was up by 1.46 per cent.

Increasing FDI limits in insurance has been a longstanding demand of the United States where most of the big insurance majors are situated.

Manoj Purohit, Partner and Leader – Financial Services Tax, BDO India said, “Increase in FDI limits from 49% to 74 % for the insurance sector is a welcome step and will help insurance companies to raise funds to ensure their solvency is maintained in line with growing business needs. This will also augment foreign inflows and help attract more foreign companies”.

Shagoofa Rashid Khan, Partner and Head – Project, Investment and Advisory Head – Funds, Investment and Advisory, Cyril Amarchand Mangaldas said, “Landmark liberalisation of insurance sector announced this will make increased M&A activity in this sector and also opens up this sector for much awaited PE funds capital that were finding deal making difficult due to restrictions under extant policy.”

Also read:Centre to launch Securities Market Code

The Code will include SEBI Act, Govt Securities Act and Depositories Act. All these Acts will be amended for the Code….reports Asian Lite News

Finance Minister Nirmala Sitharaman on Monday announced that the government will launch a Securities Market Code in a bid to streamline the securities market.

The Code will include SEBI Act, Govt Securities Act and Depositories Act. All these Acts will be amended for the Code.

Presenting the Union Budget for FY21-22, the Finance Minister also announced that capital market regulator SEBI will be notified as regulator for a gold exchange.

In another major announcement for financial investors, Sitharaman said that an investors’ charter will be launched which will be outline the rights of the financial investors.

The markets have lauded the Union Budget so far.

Around 12.25 p.m., Sensex was trading at 46,987.34, higher by 701.57 points or 1.52 per cent from the previous close.

The Nifty50 on the National Stock Exchange was trading at 13,826.45, higher by 191.85 points or 1.41 per cent from its previous close.

Also read:‘Agriculture Infra Fund to be available for APMC mandis’

The announcement made by the Union government to strengthen the APMCs is quite significant given the ongoing farmers’ agitation against the three new Union farm laws introduced last year by the Central government….reports Asian Lite News

Union Finance Minister Nirmala Sitharaman made a major announcement in the Union Budget 2020-21 related to the agriculture sector on Monday, saying that the Agriculture Infrastructure Fund would also be available for Agricultural Produce Market Committee (APMC) mandis.

Sitharaman has announced to hike the target of agricultural loans (farm credit) to Rs 16.5 lakh crore in the Union budget. Apart from this, the budget for Sukshma Sinchai Yojana (micro-irrigation project) has also been doubled.

The announcement made by the Union government to strengthen the APMCs is quite significant given the ongoing farmers’ agitation against the three new Union farm laws introduced last year by the Central government.

It is being said that the new Central farm laws would abolish the mandi system run by the APMCs in the states. However, the Central government has always reiterated saying that the new laws would not pose any threat to the APMC mandis but if competition increases, the mandi system will become stronger.

Sitharaman has announced to hike the funding of the Sukshma Sinchai Yojana to Rs 10,000 crore.

At the same time, it has been announced to increase the Rural Infrastructure Fund i.e. basic structure of the rural sector to Rs 40,000 crore.

Sitharaman presented the General Budget for the next financial year in Parliament on Monday. She presented the Budget for the third consecutive time.

Also read:Budget 2021 allocates Rs 65,000cr for NH roads in Kerala

“To give a further boost to digital transactions, I earmark Rs 1,500 crore for a proposed scheme that will provide financial incentive to promote digital mode of payment,” said Sitharaman…reports Asian Lite News

To boost digital payments, Union Finance Minister Nirmala Sitharaman on Monday proposed a Rs 1,500 crore scheme during her budget presentation.

“To give a further boost to digital transactions, I earmark Rs 1,500 crore for a proposed scheme that will provide financial incentive to promote digital mode of payment,” Sitharaman said.

Sitharaman also said that the government has worked out the modalities for the National Research Foundation (NRF), which was announced in her Budget speech of 2019.

The NRF outlay will be Rs 50,000 crore over five years,” the Finance Minister said.

“It will ensure the overall research ecosystem in the country is strengthened with focus on identified national priority thrust areas,” she added.

Also read:FM hikes Capex by 34.5% in FY22

The deduction so far was allowed on housing loans sanctioned on or before March 31, 2021…reports Asian Lite News

In a bid to increase demand in the realty market, Finance Minister Nirmala Sitharaman on Monday announced to extend the additional deduction of up to Rs 1.5 lakh for interest paid on loans of purchase of affordable houses, up to March 2022.

The deduction so far was allowed on housing loans sanctioned on or before March 31, 2021.

Further, in order to boost the supply of affordable houses in the country, the Budget proposed a tax holiday on profits earned by developers of affordable housing project approved by March 31, 2021.

The measures are expected to boost demand in the subdued realty sector.

Also read:Congress slams Budget as anti-farmer

Ahead of the Budget, the Congress sought repeal of the farm laws and more expenditure….reports Asian Lite News

The Congress on Monday criticised the Centre for failing to address the farm issues and termed the Union Budget as ‘Kisan Vidrohi’.

In a tweet on Monday soon after the Budget presentation, Congress leader Jaiveer Shergill said, “BJP Govt reading laundry list of hollow reforms in agri sector is case of failed student reading his/her forged report card; Budget failed to increase MSP, no increase in meagre allocation under KisanSammanYojna, no loan waiver-Farmer continues to get stabbed by Kisan Virodhi BJP.

“One Nation-One Ration Card remains a catchy slogan with sketchy future as Budget fails to provide ‘Ration’ to migrant labourers impacted by pandemic-There should have been announcement for direct cash transfer with employment

ent support package-as usual BJP Govt left labour stranded.”

He further tweeted: “As FM sets a target of Rs1.5LacCr + from disinvestment-Budget’20 Govt set a target of raising Rs 2.10 Lac Cr from disinvestment but only achieved Rs 1949 9Cr-Rather than fixing unachievable targets and auctioning all PSUs-Govt should focus on preserving & strengthening profitable PSUs,” he said.

Ahead of the Budget, the Congress sought repeal of the farm laws and more expenditure.

Rahul Gandhi had said, “Support MSMEs, farmers and workers to generate employment, and Increase Healthcare expenditure to save lives. Increase Defence expenditure to safeguard borders.”

Also read:FM hikes Capex by 34.5% in FY22