Quotes with Resistance & Support
Market Information

Banking Bill paves way for new banks, foreign investment

This article was posted on Dec 19, 2012 and is filed under Press Releases

The government on Tuesday cleared the decks for the Reserve Bank of India ( RBI) to initiate the process to issue new banking licences and widened the window for infusion of capital into the banking sector.

The Lok Sabha cleared the Banking Laws (Amendment) Bill, 2011, after Finance Minister P Chidambaram agreed to drop the contentious proposal on allowing banks to do futures trading. He also clarified status quo would be maintained on the jurisdictions of RBI and the Competition Commission of India ( CCI) in the banking sector.

“Since it is important that the Bill is passed, I am dropping the controversial clauses.” While the central bank would regulate the banking sector, the competition watchdog would look at anti-competitive practices, Chidambaram said.

BANKING LAWS (AMENDMENT) BILL, 2011
ACTION
  • RBI gets more powers, can supersede bank board
  • Voting rights of shareholders in banks go up
  • Banks not allowed to trade in commodity futures
  • RBI to be banking regulator, CCI to regulate M&As
IMPACT
  • Industrial houses to get licences to operate banks
  • More foreign and domestic investment to flow in
  • Could have proved to be a hedging tool for banks
  • Bank M&As may need clearance by two regulators

continue reading here:

Tags: ,

Similar Posts:

Breakouts

+ve 30 DMA    50 DMA    150 DMA    200 DMA
-ve 30 DMA    50 DMA    150 DMA    200 DMA

Latest Query

Hi CB, I have HT MEDIA bought at 93. The share is going down now. What you suggest?...view more »
- by Arun
Status: Replied view reply »

Market Stats

  • Nasdaq
    4933.50
    +31.74
    [+0.65%]
  • Nikkei 225
    16834.84
    +62.38
    [+0.37%]
  • Hang Seng
    20576.77
    +179.66
    [+0.88%]
  • Straits Times
    2802.51
    +29.20
    [+1.05%]
  • FTSE 100
    6270.79
    +5.14
    [+0.08%]
  • CAC 40
    4514.74
    +2.10
    [+0.05%]

Search Our Archives

Latest Investment Idea