Live news , top stories, corporate news, company news, sector news, economy news, results analysis news, ceo interviews, fund manager interview, advisor interview, market news, bazaar talk, hot stocks news, ipo news, commodities news, mutual fund news, insurance news, news wire
23 December, 2014 07:10 IST

Source: rss | 23-Dec-14
Comments  |  Post Comment

On Wednesday, Dec. 5, 2012, India's Lok Sabha (Lower House) voted in favour of the government allowing FDI in multi-brand retail and an amendment to the Foreign Exchange Management Act (FEMA). Even though the parties, such as BSP and SP, are against FDI in multi-brand retail, they abstained from voting, helping the government attain a majority (253 votes against 218 for the opposition).

The next step will a be debate on the same two issues (FDI and FEMA amendment) in the Rajya Sabha (Upper House) on Dec 6, followed by voting in the Rajya Sabha on Dec 7. Securing a majority vote in the Rajya Sabha will be a difficult balancing act as the ruling government has a minority in the upper house.

Commenting on the development, Sonal Varma, Economist, Nomura Financial Advisory and Securities, said, "FDI in multi-brand retail is an executive decision and as such the voting outcome is non-binding on the government. However, if the government is able to repeat performance in the Rajya Sabha, this will be seen as a positive for two reasons.

First, it suggests that the government has the ability to undertake not just executive decisions, but also legislative reforms (i.e. ones that need parliamentary approval). Second, it clears the logjam created due to the FDI issue and parliament can start focusing on other important pending bills during the remaining days of the winter session (which ends on Dec. 20).

Overall,  decision is positive for the ruling Congress-led UPA government and (hopefully) for the India: Government wins retail FDI vote in the Lower House reform outlook."

Disclaimer: IRIS has taken due care and caution in compilation of data for its web site. Information has been obtained by IRIS from sources which it considers reliable. However, IRIS does not guarantee the accuracy, adequacy or completeness of any information and is not responsible for any errors or omissions or for the results obtained from the use of such information. IRIS especially states that it has no financial liability whatsoever to any user on account of the use of information provided on its website.

Comments Post comment 
 Post Comment
Name Email
Comment
Security Code type    into this box
Related Articles
SKS Microfinance issues commercial papers for Rs 250 mn - 22-Dec-2014 18:52
Investment opportunities by HBJ Capital - 22-Dec-2014 18:38
Sasken Communication allots shares under ESOP - 22-Dec-2014 18:25
Jet Airways closes 5 year syndicated loan of USD 150 mn in Middle East - 22-Dec-2014 18:13
Alstom to sell energy business to General Electric - 22-Dec-2014 17:32
Angel Broking prefers Hero Motocorp over Bajaj Auto - 22-Dec-2014 17:20
'Accumulate` Persistent Systems; target Rs 171: Prabhudas Lilladher - 22-Dec-2014 16:44
99acres.com partners with Purvankara Projects - 22-Dec-2014 16:29
Prabhudas Lilladher maintains `Buy` on Ashoka Buildcon - 22-Dec-2014 16:20
CMI bags order worth Rs 121.3 mn - 22-Dec-2014 16:08
HDFC to sell 18.9 mn shares of HDFC Standard Life Insurance to Premji Trust - 22-Dec-2014 15:22
more...
Home  |   Shares  |   F&O  |   Mutual Funds  |   Loans  |   Insurance  |   News Centre
Wealth Tracker  |   Newsletters  |   Tax Corner  |   NRI Centre  |   Advertise
© All rights reserved. IRIS Business Services Limited
A Disclaimer