businessfortnight

New Delhi:  The government is considering a plan to regulate the import, manufacture and sale of ultrasound machines to stem the drastic decline in India’s sex ratio. The Drug Technical Advisory Board, the government’s chief advisory body on drugs, will take up the proposal to regulate ultrasound equipment under the Drugs and Cosmetics Act, 1940 at their forthcoming meeting in September. If regulated, the Central Drugs Standard Control Organization (CDSCO), the national regulatory body for Indian pharmaceuticals and medical devices, will become the approving authority for import, manufacture and sale of ultrasound machines. The companies will also have to apply for permission from the Drug Controller General of India, who is responsible for approval of licences, before the scanners are sold in India. The health ministry is of the view that the move is crucial to save the girl child. “We have taken up the issue with the Drug Controller General of India. This will help in prevention...

Mumbai:  Two days after asking stock exchanges to act against 331 listed entities suspected to be shell companies, the Securities and Exchange Board of India (Sebi) seemingly softened its stance on Wednesday, giving the firms an opportunity to be heard. The markets regulator issued a second communique to the exchanges, asking them to look at the tax returns and financials of the companies for the past three years, two persons with direct knowledge of the matter said on condition of anonymity. Exchanges were directed to seek documents from the companies and hear them out, said the first person. “If the verification does not throw up red flags, exchanges will report the same to Sebi. If the financials throw up concerns, then the companies will undergo an audit and other steps mentioned in 7 August circular,” said the second person. “This is more on the lines of Sebi giving exchanges steps that need to be followed,” this person added. A statement from NSE said only 48 of the 331 firm...

The case against emerging markets (EM) is gaining steam in one corner of the bond world. Investors yanked out $680 million from the iShares JPMorgan USD Emerging Markets Bond exchange-traded fund last month, the biggest-ever flows reversal. Traders are concerned that after an 18-month rally, rising yields in developed markets from the US to Germany could wreak havoc across emerging markets similar to the taper tantrum of 2013, when developing-nation currencies depreciated by about 14 percent and local bonds lost an average of 7.3%, according to data compiled by Bloomberg. “To own EM, you have to believe that the dollar has peaked, and that as developed-market central banks in Europe and the US drain liquidity, emerging markets can outperform— that’s laughable,” said Julian Brigden, a hedge-fund consultant at Macro Intelligence 2 Partners, who made a prescient bet against developing-nation stocks within 2 days of their 2015 high. That’s in contrast to optimism from the likes of Ash...

Bengaluru:  Aviva, Britain’s biggest life insurer, said it would sell Friends Provident International (FPIL), which provides life assurance and investment products in Asia and the Middle East, to a unit of International Financial Group for £340 million ($443 million). The sale, which follows a strategic review, will allow Aviva to further reallocate capital to businesses that can bring higher returns and grow its business across Asia, the insurer said. “Aviva has concluded that the business is not central to the group’s strategy to focus on a small number of markets where it has scale and profitability or a distinct competitive advantage,” it said in a statement on Wednesday.

Most people look only at the returns that an investment vehicle gives. It is, however, important to consider the taxation rules as well since this will reduce the overall returns. Here’s a look at some of these.

New Delhi: ICICI Prudential Life Insurance Co. Ltd has agreed to take over the life insurance business of Sahara India Life Insurance Co. Ltd, which was effectively wound up by the regulator last month. “ICICI Prudential Life has agreed to take over the policyholders’ liabilities of Sahara Life and has already commenced valuing the liabilities of the policyholders and earmarking the matching assets of Sahara Life,” said Nilesh Sathe, member, life, at the Insurance Regulatory and Development Authority of India (Irdai). “They will transfer on their books policyholders’ liabilities and corresponding assets. We have given them three weeks to submit the valuation report, which will be reviewed by us for approval,” Sathe added. ICICI Prudential declined to comment. The administration of Sahara India Life, a subsidiary of Sahara Group, was taken over by Irdai on 12 June. On 23 June, Irdai asked the company to stop issuing new policies, the first time in its 18-year history that the regulator...

New Delhi: New Delhi Municipal Corporation (NDMC) plans to raise Rs200 crore shortly by selling bonds for strengthening its electricity distribution network, said Geetali Tare, financial advisor at the civic body responsible for providing urban services to Lutyen’s Delhi, home to the country’s most powerful politicians and bureaucrats. This follows Pune Municipal Corporation (PMC) raising Rs200 crore earlier this month through bonds for a water metering project. There is a growing appetite for municipal bonds with PMC, Maharashtra’s second-largest corporation, receiving 21 bids amounting to Rs1,200 crore. PMC is the first urban local body to raise funds through selling bonds, nearly two years after capital markets regulator Securities and Exchange Board of India (Sebi) issued new norms for municipal bonds. Enthused by the response, Indian cities have been ramping up their municipal bonds issuance plans. This, in turn, will bring in fiscal discipline for the municipalities and make the...