India seeks full banking status for SBI in Singapore
New Delhi: India is seeking qualifying full banking (QFB) status for the State Bank of India from Singapore during the first review meeting on the Comprehensive Economic Cooperation Agreement (CECA) to be held in the city-state tomorrow. Under the CECA, Singapore had agreed to provide up to three bank licences with QFB privileges for those that satisfied its admission criteria. Officials said SBI was the only Indian bank which had sought the status, but had not been granted the same so far.

Singapore is expected to seek further relaxation in the double taxation avoidance agreement (DTAA) to bring it fully at par with the Mauritius DTAA and changes in the rules of origin to bring them at par with the proposed rules for Asean.

The India-Singapore DTAA lays down two eligibility conditions for capital gains tax exemption. These are, listing on a recognised stock exchange and a total annual expenditure on operations in the residence state equal to or more than $2, 00,000 or Rs5,000,000 in the 24-month period from the date of the gains.
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i-flex partners Zurich based IFBS
Bangalore: i-flex Solutions is partnering with the Zurich-based International Financial Business Solutions (IFBS) for integration services. IFBS provides securities lending, repo and OTC derivatives collateral management solutions. It will continue its expansion into the US and Asian markets with this partnership. The two companies will team up to offer securities lending customers implementation and service, support.
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Federal Bank lists on LSE
Kochi: Kerala based Federal Bank has completed its listing on the London Stock Exchange. Hugh Sandeman, head of business development for India, London Stock Exchange, handed over a plaque in evidence of the bank's listing on the LSE. By issuing 20 million global depository receipts, Federal Bank is the first among the traditional private sector banks to go for an international listing.

M. Venugopalan, chairman and CEO, Federal Bank, said the increase in net worth and capital to risk-weighted assets ratio (CRAR) would enable the bank to achieve greater heights of growth in the coming years.

The GDRs, each representing one underlying equity share, were priced at $ 3.97 each, equivalent to approximately Rs 175 per share, and is listed on the Professional Securities Market of the London Stock Exchange under the name FEDERAL BK S (code FEDS).

With this issue, the net worth of the bank has crossed Rs1,200 crore and the bank is poised to have a CRAR of over 13 per cent, complying with the Basel II norms on market risks.
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FM makes clarification on tax exemption
New Delhi: The Finance Ministry has clarified that the tax benefits under Section 54EC of the Income-Tax law would not be available on long-term capital gains that are invested on or after April 1, 2006 in the bonds of Nabard, National Housing Bank and SIDBI.

A release from the ministry said the tax benefits under this provision would be available only on those long-term capital gains that are invested on or after April 1, in the bonds of Rural Electrification Corporation and National Highways Authority of India and which are notified by the Union Government in the official gazette.
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Bajaj Capital to expand
Ludhiana: Bajaj Capital, engaged in merchant banking, resource mobilisation, distribution of financial products, investment advisory services, trading in money market investments and tailor-made financial planning for individuals and corporate clients, plans to open 40 new branches in the next fiscal, and aims to add one lakh new retail investors for its investment advisory services

The company is planning to open 40 more branches, including 2 branches in Punjab, in the next financial year. It plans to increase the total strength of its retail investor base to 8 lakh as against 7 lakh retail investors at present. The company, promoted by K K Bajaj, at present has 110 branches in 52 cities. Last year, it opened 20 new branches across the country.

The company says it has fixed a target to grow its business size by 50 per cent in the next fiscal. Bajaj Capital also offers need-based investment advice to retail investors, High Networth Investors & Institutional Investors and serving to 7,00,000 retail investors throughout country including 12,000 NRIs.
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