DEREGULATION OF INTEREST RATES ON NON-RESIDENT (EXTERNAL) RUPEE (NRE) DEPOSITS

ISSUING AUTHORITY : RESERVE BANK OF INDIA

DATE OF ISSUE : 31/01/2014

EFFECTIVE DATE : 01/01/2014

CIRCULAR NO. RBI/2013-14/476

The freedom to offer interest rates on incremental NRE deposits with maturity of 3 years and above without any ceiling in order to pass on the benefit of exemption provided on such deposits from CRR / SLR requirements will remain unchanged up to February 28, 2014.

With effect from March 1, 2014 the interest rate ceiling will revert to the position prior to August 14, 2013, i.e. interest rates offered by banks on NRE deposits cannot be higher than those offered by them on comparable domestic rupee desposits.

For detailed Circular, follow the Link below:
RBI/ 2013-14/476

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CCI RULES OUT ABUSE OF DOMINANT POSITION BY OMAXE

Applicable Act: Competition Act, 2002

Present information was filed by Mr. Naresh Bansal & Mr. Gagan Deep Goel (Informants) against M/s Omaxe Limited (OP, Opposite Party). The Informants have alleged that OP has violated the provisions of the Act with regard to development of a Real Estate Project.

BRIEF FACTS OF THE CASE

OP is the Real Estate Developer and was asked by the Informants to specify the location and sought allotment of plot or refund of amount paid by the Informants to get registered for plots with Interest. For the same, Informants paid certain sums to the OP. The OP confirmed the allotment of the plot bearing no. 1343 in Omaxe city project at Sonepat, Haryana. However, Informants came to know that OP cancelled its earlier allotment and re-alloted a plot bearing no. 1886 in the same project.

Later,  OP issued cancellation letter to the Informants citing default in payment as the reason. The Informants alleged that this willful cancellation is arbitrary in nature and damaged and restricted the rights of the Informant which is abuse of dominance by the OP under section 4 of the Act.

It is evident that the market for service for development of residential plots in Sonepat district of Haryana is very broad and highly competitive. The presence of other Real Estate players in Haryana made it a competitive market.

There is no information on record and available in the public domain which shows a position of strength of OP enabling it to operate independent of competitive forces prevailing in the relevant market.

ALLEGATIONS

1. Informants, who had registered for plots with OP, had alleged that the firm made a representation to the public at large regarding a real estate project without specifying the details and identity of the property.
2. Informants alleged that OP had abused its dominant market position by imposing one-sided and anti-competitive agreements on buyers of plots, among others.
3. Among others, it was also alleged that under the agreement, there was no exit route to buyers of plots in case of violation of terms on part of OP and the company would not have to face any consequences for same.

CONCLUSION

For the reasons mentioned above, there arises no competition concern under sections 3 or 4 of the Act.

DECISION

CCI has rejected the complaint that alleged OP of indulging in anti-competitive practices with respect to development of residential plots in Sonepat district of Haryana.

FOREIGN INVESTMENT IN INDIA BY SEBI REGISTERED LONG TERM INVESTORS IN GOVERNMENT DATED SECURITIES

ISSUING AUTHORITY : RESERVE BANK OF INDIA

DATE OF ISSUE : 29/01/2014

EFFECTIVE DATE : IMMEDIATE EFFECT

CIRCULAR NO. 99

Reserve Bank of India, in consultation with the Government, has decided to enhance the existing sub-limit of $5 billion available to long term investors – Sovereign Wealth Funds (SWFs), Multilateral Agencies, Pension/ Insurance/ Endowment Funds and Foreign Central Banks - registered with SEBI for investment in Government dated securities to $10 billion.

This doubling of the investment sub-limit is within the total limit of $30 billion available for foreign investments in Government securities. The operational guidelines in this regard will be issued by SEBI.

For detailed Circular, please follow the link below:
A.P. (DIR Series) Circular No.99

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Source: Economic Times