INDIA BUSINESS WORLD - March 2006
THE MONTH THAT WAS

News & important developments from the most prospective of the New World markets……. India. Our effort is to provide you with the latest and relevant developments that take place in the Indian business, economic and legal environment.

ECONOMIC & LEGAL NEWS

STATES CANNOT IMPOSE SALES TAX ON TELECOM SERVICES : In a landmark judgement, the Supreme Court said that states cannot impose sales tax on telecom services. In its judgement, the apex court said that the telecom services cannot be equated with goods.

PROFITABLE PSUS MAY GET TO BYPASS PIB : Profit making PSUs may no longer require the Public Investment Board's (PIB) approval while taking an investment decision.

STOCK MKT SCAM: LONDON A/C OF KETAN AIDE FROZEN : IN a fresh development in the investigation into the 2001 stock market scam, the London bank account of Ketan Parekh's associate Dharmesh Doshi, who is wanted in India for allegedly siphoning off Rs 780 crore from a bank, has been frozen.

ONLY TERM DEPOSITS UNDER NEW CENTRAL SCHEME TO GET 80C SOP : The government has amended the Finance Bill 2006 to allow only those term deposits that are in accordance with a scheme framed and notified by the Centre to be eligible for tax deduction under Section 80C of the Income Tax Act, 1961.

RBI FIGHTS LIQUIDITY WOES, HIKES NRI DEPOSIT RATE : MONTHS of liquidity crunch in the money market has triggered off varied responses from the players in the financial sector .

INDIA INC GETS MORE PLAY IN FOREIGN INVESTMENT : In the run-up to the firming up of another report on capital account convertibility, Indian corporates have been given more leeway on outward investment.

INDIAN ECONOMY WAS THE FOURTH LARGEST CONTRIBUTOR TOWARDS INCREMENTAL GLOBAL GDP GROWTH IN '05 : THE blinding rise of the Sensex is backed by some sound fundamentals emanating from the real economy. The Indian economy was the fourth largest contributor towards incremental global GDP growth in '05.

BUSINESS NEWS

RIL, ONGC & GAIL NOT TO GET LPG RETAIL RIGHTS : THE government has decided not to give LPG marketing rights to Reliance Industries, ONGC and GAIL, in view of the current market scenario where products are being sold at heavily subsidised prices

LIC PENSION PLAN TO PAY 0.5% MORE : After years of relentlessly cutting down returns on its policies, the Life Insurance Corporation has changed tack. It has hiked returns under its annuity plan.

SIFY CAN CALL ON TELCOM FIRMS WITH INVESTMENTS : The Foreign Investment Promotion Board (FIPB) has cleared Internet, ecommerce and network company Sify's proposal to invest in downstream Indian companies that provide telecom services.

NEW DEVELOPMENTS AND JOINT VENTURES

RANBAXY PICKS BELGIAN CO : Ranbaxy on Thursday announced its third overseas acquisition this week — Ethimed NV, in Belgium.

AIRLINE M& As ALLOW TRANSFER OF ASSETS : In a move that comes as a major boost to the Rs 2,300-crore takeover of Air Sahara by Jet Airways, the aviation ministry's draft guidelines for mergers & acquisitions in the airline industry has provisions that allow transfer of all assets of one airline company to another.

TELEDATA INFO BUYS ALPHASOFT FOR $14 MILLION : Teledata Informatics has acquired the US-based IT services company Alphasoft Services Corp (ASC) for $14.150 million.

RR DONNELLEY BUYS OFFICETIGER FOR $250 M IN LARGEST BPO DEAL : US-BASED printing company RR Donnelley & Sons announced on Monday that it has signed a definitive agreement to acquire Chennai-based BPO company OfficeTiger in an all-cash deal for around $250 million.

TEMASEK TO BUY 12% IN STANCHART : TEMASEK Holdings Pte, Singapore's government-owned investment company, agreed to buy 12% of UK lender Standard Chartered Plc from Khoo Teck Puat Estate

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