SC RESERVES ORDER ON CVC ACT : The Supreme Court has reserved its verdict on the controversial "single directive" clause in the CVC Act, which bars the CBI from initiating any action against officers of the rank of joint secretaries and above without prior sanction from the government.

GOVT HIKES FDI AVIATION CAP TO 49% : Pumped up by the morale-boosting election victory in Maharashtra, the Union government has decided to increase foreign direct investment (FDI) in domestic airline companies to 49%, from the current level of 40%.

RBI FINES CITIBANK FOR TELGI ACCOUNTS : After being penalised by financial market regulators in Japan, UK and Korea, Citigroup has now been pulled up by the Reserve Bank of India (RBI). The central bank has fined Citi for letting Abdul Karim Telgi and his associates open accounts and park their money.

EXEMPT INCOME ABOVE RS 2 LAKH UNDER SCRUTINY: It is not just India, Inc, especially those companies paying Minimum Alternate Tax (MAT) or claiming a substantial amount of profits under tax holiday, or for that matter, the rich stock brokers that are under scrutiny.

TAXMAN FREE TO ATTACH ASSETS: Fiscally challenged, the government is frantically exploring ways to tap into the towering mountain of tax dues. Since that option provides a fast way to boost revenues, it is now going to any lengths to recover arrears. Among the latest moves is a new circular from the Central Board of Direct Taxes ( CBDT), which could potentially affect every tax-payer in the country, be it an individual or a corporate.

TEHLKA CASE HANDED OVER TO CBI : After Uma Bharati, NDA convenor George Fernandes has been brought into the firing line with the Centre scrapping the Phukan Commission and handing over the Tehelka case to the CBI.

GOVT CLEARS SETTING UP OF INVESTMENT COMMISSION: The government on Wednesday cleared setting up of an Investment Commission to woo foreign and local investors for major projects in the country. The proposal has been cleared by the Cabinet Committee on Economic Affairs, Finance Minister P. Chidambaram said, The commission would function under the finance ministry.

BUSINESS NEWS

MITTAL STEEL EMERGES WORLD'S LARGEST STEELMAKER : NRI business tycoon Lakshmi N Mittal-owned Ispat International on Monday emerged as world's largest steelmaker as it announced its merger with The Netherlands-based LNM Holdings and US International Steel Group to form Mittal Steel Corporation.

TEXTILE EOUS GET DUTY RELIEF ON : With just three months left for scrapping of textile quotas in the global market, the finance ministry has provided a key relief to export oriented units (EOUs) in the textile sector.

COMPANIES NOT TO GET EXPORT BENEFITS ON INCOME FROM SALE OF DEPB LICENCES: In a measure that will affect most corporates with export earnings, the tax authorities have sent instructions to deny export benefits on income arising from the sale of Duty Entitlement Passbook Scheme ( DEPB) licenses, which generally forms a significant part of income for most exporters.

HDFC BANK TO HIT US MARKET WITH $300 MN ADS ISSUE : HDFC Bank will hit the US market with a $300m (Rs 1,370 crore) offering of American Depository Shares (ADS) this fiscal. The issuance will dilute parent Housing Development Finance Corporation's holding in the bank to 20.8%, from 24.06%.

PEPSI AD 'GLORIFYING' CHILD LABOUR OFF AIR: Just when the cola giants were thinking they had survived the pesticide controversy, Pepsi has landed in another soup.

MARUTI ON THE RISE: India's largest car maker, Maruti is clearly riding a wave. The spiralling sales graph suggests a possible income of Rs 14,000-15,000 crore (net of excise).

6 MN ESOPS FOR WIPROITES: Wipro is planning to grant 6m stock options (1% of its equity) as a part of its plan to implement a restricted stock award scheme for its middle-level managers, who constitute between 10% and 12% of its workforce. The options would have a vesting period of five years (20% each year) and come with a nominal exercise price. Industry sources say that the price may be as low as Rs 10 per share.

RANBAXY WITHDRAWS AIDS DRUGS FROM SOUTH AFRICA : Ranbaxy Laboratories has withdrawn its AIDS drugs portfolio from South Africa after concerns on quality were raised. This effectively ends Ranbaxy's bid to participate in the multi-million rand AIDS drugs tender of the South African government.

PRE-SHIPMENT CERTIFICATE MUST FOR IMPORT OF SCRAP : The government has taken a final view on the metallic scrap import issues in a series of circulars issued by the Central Board of Excise and Customs and the Directorate General of Foreign Trade. The pre-shipment inspection certificate at the original port of loading will apply to all scrap in un-shredded, compressed and loose forms regardless of the origin.

IKEA TO OUTSOURCE FRON INDIAN EXPORTERS: Here's a huge shopping list that's sure to send Indian exporters into champagne mode.

NEW DEVELOPMENTS AND JOINT VENTURES

NORWAY COMPANY BUYS 49% IN BHILWARA HYDRO PROJECT : Norwegian energy major SN Power has acquired 49% equity stake in the LNJ Bhilwara group-promoted hydro-power venture, Malana Power Co. The stake has been acquired at a cost of Rs 207 crore (about $45 million).

BIRLA SUN LIFE BAGS ALLIANCE'S MF BUSINESS : Putting at rest two years of speculation, Alliance Capital is finally exiting the asset management business in India, with the US-based fund selling its schemes to Birla Sun Life Mutual Fund.

MAX NEW YORK LIFE TO HIKE CAPITAL BY RS 100 CRORE: Max New York Life Insurance (MNYLI) - a 74:26 joint venture between Max India and New York Life - will hike its capital by another Rs 100 crore this fiscal. The fresh capital would be ploughed in to sustain growth in business.