If implemented, an estimated Rs 24,000 crore could become available for investment in private mutual funds
GN Bureau | July 8, 2014
Capital market regulator Securities and Exchange Board of India (Sebi) has written to the government and urged it to relax cash investment norms of public sector undertakings (PSUs). It made a strong case for private mutual funds, according to news reports.
The government may recommend new norms that will allow state-run companies to park up to 40 per cent of their mutual fund investments with private firms. As much as Rs 24,000 crore could become available for investment in private mutual funds if the recommendations are implemented.
In 2012, government had set up a committee under current revenue secretary Shaktikanta Das to explore and suggest ways to simplify investment norms for more than 246 PSUs. At present, PSUs can place up to 30 per cent of their deposits with only PSU-sponsored mutual funds.
In 2008, the government had allowed only Navratna and Miniratna PSUs to invest in mutual funds, reversing the earlier rule that allowed investment only in fixed deposits, treasury bills and Reserve Bank of India bonds.
State-run companies have cumulative deposits of over Rs 2 lakh crore available with them. PSUs have about Rs 40,000 crore parked in mutual funds, according to industry estimates.
The PPP model has been made mandatory in metro rail projects, but it has not been successful in at least three cities – Delhi, Mumbai and Hyderabad. The cabinet chaired by prime minister Narendra Modi approved a new Metro Rail Policy that m
In absence of proper regulatory and supervisory capabilities, some regulators in Asia-Pacific region believe the next financial crisis might be triggered by a cyber attack, said a new report on cyber security. According to Deloitte`s ‘cyber regulation in Asia Pacific’ report, cyber at
There is a need for speedier clearance of projects by states, RBI’s monetary policy committee said and added that there is an urgent need to reinvigorate private investment, remove infrastructure bottlenecks and provide a major thrust to the Pradhan Mantri Awas Yojana for housing needs of all.
It has been a year since you took charge of the new ministry. What is your biggest worry as in charge of education in India? My first priority – and that reflects my worry as well – is to improve the quality of government schools. It’s a tough job. Unfortunately,
Should National List of Essential Medicines be expanded?
In a big leap aimed at diversifying its crude oil sources and boosting the country’s energy security, IndianOil Corporation has begun crude oil imports from the US. The first cargo of high-sulphur ‘Mars’ crude oil was loaded recently from St. James Port on ‘Bergitta`