FII inflow in Indian equities reaches Rs 1.13 lakh crore
The Foreign Institutional Investors (FIIs) are figured to have made a net inflow of over Rs. 1.13 lakh crore in the Indian equity market in 2013. At gross level, FIIs purchased stocks worth Rs 7.96 lakh crore in 2013 and sold equities to the tune of Rs 6.84 lakh crore; translating into a net inflow of Rs 1,13,136 crore.
Nevertheless, overseas investors pulled out Rs 50,847 crore from the bond market in 2013. This takes the overall investment by FIIs into the debt and equity market together to Rs 62,288 crore. Despite their unpredictable ‘hot money’ investment, these overseas entities are amongst the most important drivers of Indian stock markets.
As per the experts, FIIs are looking forward to a stable government that can move reforms process faster, irrespective of which political party comes to power at the Centre next year. Likewise, a strong performance by BJP in the recent assembly elections has promoted the chances of a stable government at the Centre.
RBI: Banks to continue accepting scribbled notes
The Reserve Bank of India (RBI) stated that banks will continue to accept currency notes with anything written on them and it has not issued any such instructions regarding discontinuity of scribed notes.
Nevertheless, the central bank reiterated that writing or scribbling on banknotes works against its ‘clean note policy’ and sought co-operation from public, institutions and others in keeping the banknotes clean by not writing anything on them.
Note: This announcement came on the wake of rumours that RBI issued a notification that from January 1, 2014, banks will not accept bank notes with scribbling.
Finance Minister called financial sector regulators to implement FSLRC proposals
The Union finance minister, P Chidambaram stated the regulators must implement proposals of the Finance Sector Legislative Reforms Commission (FSLRC).
The FSLRC report contains 12 key proposals and these do not require legislative changes. It also included a draft Indian Financial Code that is expected to replace the current financial sector legislations but is unlikely to be tabled in Parliament soon.
About FSLRC report
The financial sector regulators will take serious action with high penalties on violators and time bound investigations that would act as deterrents and improve consumer protection.
The proposals that called for penalties discourage the future violations as a multiple of the illegitimate gain of violations.
Regulators should also put in place internal manuals on conducting investigations. The investigating officer would be kept different from the officer who would decide the penalty for the crime.
Note: The Financial Stability and Development Council on October 2013 decided to finalize an action plan for implementation of all FSLRC principles on regulatory governance, transparency and improved operational efficiency that do not require legislative action.
Pakistan appoints a female judge to Sharia Court for the first time
Ms Ashraf Jehan (56) appointed as the first female judge of Shariah Court (Pakistan), which hears cases under the Islamic legislation. Ms Jehan was earlier serving as an additional judge at the high court in Sindh.
Note: The Shariah Court was established in 1980 during the rule of military dictator Ziaul Haq as part of his policy towards Islamisation of Pakistan’s institutions. It examines the country’s laws to check them for conformity with Islamic injunctions and hears appeals under religious legislation known as the “Hudood Laws”, which run parallel to the penal code.
PETA’s Person of the Year: Dr Shashi Tharoor
The Union Minister of State for Human Resource Development, Dr. Shashi Tharoor named as the Person of the Year by the animal rights body PETA (People for the Ethical Treatment of Animals) – India for taking steps to advance animal protection. Mr. Tharoor recommended the National Council for Teacher Education (NCERT) to ban the use of animals, viz. for dissection, etc, in training teachers.
By his initiative, in 2012, the Ministry of Environment and Forests issued a directive instructing all the institutes or establishments associated with teaching of medical, pharmacy and other courses in life sciences to follow UGC guidelines for discontinuation of dissection and animal experimentation in universities and colleges and introduce use of alternatives to animal experimentation.
About People for the Ethical Treatment of Animals (PETA) - India
Based in Mumbai, launched in January 2000.
Operates under the simple principle that animals are not ours to eat, wear, experiment on or use for entertainment.
Focuses primarily on the areas in which the greatest numbers of animals suffer the most: in the food and leather industries, laboratories and the entertainment industry.
Responsible for the ending of animal experiments by the West Bengal Board of Secondary Education in 2008.
RBI eases gold dore import norms; allows refineries to import 15% of their annual requirements in first two months
In consultation with the Government of India, the Reserve Bank of India (RBI) partially eased restrictions on import of gold dore after taking into account representations from refiners. As per the new norms -
Refineries are allowed to import dore up to 15% of their gross average feasible quantity based on their license entitlement in the first two months for making this available to the exporters on First in First out (FIFO) basis. Following to this, the quantum of gold dore to be imported should be determined lot-wise on the basis of export performance.
Before the next import, not more than 80% should be allowed to be sold domestically.
The dore so imported shall be refined and shall be released based on FIFO basis following 20:80 principle.
The imports will be allowed only up to 5 times the quantum for which proof of export has been submitted.
Note: In August, the RBI had imposed curbs on gold imports and linked it with exports. Consequently, 20% of every lot of gold imported had to be exclusively made available for exports and the balance for domestic use.
What is Gold Dore?
Gold doré (pronounced gold doh-rey) is a bar of semi-purified gold (e.g. bullion). After being mined, the first stage in the purification process of the gold ore produces a cast bar (gold dore) that is approximately 90% gold. The other 10% is mostly metals like silver and copper.
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