WEEKLY NEWS

OUTSOURCING HAS CREATED US JOBS: INDIA'S

MESSAGE TO OBAMA

India will seek to impress upon US President Barack Obama during his Nov 6-9

visit that outsourcing has actually created thousands of jobs in the US, and not

taken them away

"According to the US officials, India is the fastest growing source of

foreign direct investment in the US

"India's defence acquisitions and major purchases in energy and

aviation sectors, for example, are contributing to the US economy.“

"Recent Indian acquisitions have created and saved 65,000 jobs in the

US. A total of 374 acquisitions have been made and 127 Greenfield

projects have been set up in the US by Indian investors,"

RBI BANS 3 MNC BANKS FROM TRADING IN

GILTS FOR 6 MONTHS

The Reserve Bank of India has pulled up some foreign

banks in India amid investigations into circular trading

in Government Bonds.

The Board of Financial Supervision has decided to

impose certain restrictions on the market operations of

these foreign banks. The Central Bank has decided on

a six month trading ban on three foreign banks.

Standard Chartered Bank, Societe Generale and

Caylon are among these banks.

MFS IRKED BY SEBI TO CHECK ‘SMART’

INVESTING

The mutual fund industry is taken aback by the

Securities and Exchange Board of India’s plan to take a

relook at a system that allows investors to take

advantage of the cut-off timings for accepting cheques in

liquid funds.

SEBI may change system where investors mostly

corporate put money in liquid schemes usually on Friday

or Monday before 12pm to get the previous day’s NAV.

CLOSE FOREIGN LOAN WINDOWS FOR LLPS

The finance ministry and Reserve Bank of India have

opposed changes in the external commercial borrowings

policy to allow overseas borrowings by LLps.

The finance ministry is of the view that while FDI can be

allowed in this form of business entities but not overseas

debt

The current policy allows companies to raise ECBs but sole

proprietorship firms and partnerships are prohibited from

accessing such debt

CHINA GROWS SLOWEST IN A YEAR

China Government said its economy expanded 9.6% in thethree months to September

World bank had pared China’s growth forecast for 2011 to8.5% just a shade below its projection of 8.6% for India. If itgoes true then India will for the first time become the fastestgrowing economy among large economies

However it is expected that India could overtake China’sgrowth rate by 2013 and expected to be ahead from 2015onwards.

TATA'S NANO CATCHES WORLD'S MOST

POWERFUL MAN'S EYES

No sooner the powerful US couple was introduced to

Ratan Tata, who heads the USD 72 billion conglomerate,

President Obama told the first lady Michelle that this is

the person who created the USD 2,500 wonder car.

Michelle immediately expressed the desire to see the car

that revolutionized the auto industry and put India

prominently on the global map.