Decision on more powers to SEBI soon

By Our Special Correspondent

NEW DELHI, NOV. 9. The Union Finance Ministry will decide within two weeks the additional powers that could be given to the market regulator, the Securities and Exchange Board of India (SEBI). A decision on the expansion of the SEBI board would also be taken by then.

While giving out this information, the Secretary, Department of Economic Affairs in the Union Finance Ministry, Mr C. M. Vasudev, told presspersons that no details could be provided as of now as a final decision was expected within two weeks.

He also said the advisory group on markets and regulatory framework, set up by the Finance Minister, Mr. Yashwant Sinha, in October, would hold its first meeting on Tuesday.

About the Y. V. Reddy Committee report on small savings, Mr. Vasudev said a meeting with the Reserve Bank of India has been scheduled for November 28 and a final decision on the recommendations would be taken after that. The Reddy committee has basically recommended abolition of tax exemptions on small savings in order to bring about parity in savings instruments.

On pension reforms, Mr. Vasudev said a committee had been set up within the Ministry which was expected to give its report by December. In case its recommendations are accepted, a pension system for Government employees could come into force early next year.

About banks not reducing their prime lending rates even after the RBI has reduced the bank rate, the Secretary said banks had their own constraints and could possibly reduce their lending rates in the longer term. On the recapitalisation of weak banks, he said first a credible reforms package had to be drawn up by such banks as otherwise mere recapitalisation would become a soft option.

On the overall revenue position, he said as of November 8, there had been a shortfall of about Rs. 3,000 crores in terms of net revenue collection but in terms of gross collections, it was up Rs. 2,000 crores over the comparable collection last year. The net figures were down because of refunds, he added. About the fiscal deficit, he conceded that there had been some slippage but pointed out that most of the expenditure was front-loaded this year, resulting in higher deficit in the initial part of the fiscal year. The food subsidy bill, for instance, had reached Rs. 6,600 crores by September against the annual target of Rs. 13,675 crores, mainly on account of higher carrying costs and the introduction of a number of schemes announced by the Government. But there had been some savings on other fronts, he added.

Send this article to Friends by E-Mail

Section  : Business
Previous : Sterlite sole bidder for HZL
Next     : Rupee recovers on exporter dollar sales