Profit Rule for Life Insurance IPOs Scrapped
The insurance regulator has scrapped the minimum three year profitability clause for life insurers to float initial public offerings, throwing a lifeline for many companies that would have struggled for capital. The Insurance Regulatory and Development Authority, or Irda, took the decision in a recent board meeting, two people familiar with the matter said. The decision to do away with the requirement, which was part of the draft guidelines for IPOs, follows lobbying by insurance firms that the absence of higher foreign investment and access to public funds could cripple their businesses. This would be a relief to a number of insurance companies such as ICICI Prudential, HDFC Life and Max New York Life, which have been in operation for 10 years but do not have a three-year profitability record.

Oilmin Backs BPs Stake Buy in RIL
The oil ministry has unequivocally supported BPs $7.2-billion deal to buy stakes in Reliance Industries 23 oil and gas blocks, paving the way for approval of the landmark deal that marks the first significant investment by a global oil major in India. A top government official said the cabinet was expected to consider the deal next Thursday. The oil ministry, which recently secured cabinet approval for the Cairn-Vedanta deal and also took the bold decision of raising fuel prices, could have approved this deal itself, but chose to seek the cabinets clearance, given the large size of the deal, the official said.

Draft Microfinance Bill Gives RBI Total Control
The government has proposed a regulatory framework for the microfinance industry that provides protection to the consumer, makes the Reserve Bank of India the sole regulator and puts industry under a strict watch. The draft Micro Finance Bill 2011 gives sweeping power to the RBI by bringing all aspect of microfinance under its oversight. The finance ministry on Wednesday put out the draft bill for comments. The Bill achieves the golden mean between affordability for the borrowers and sustainability for the providers, said Vijay Mahajan, the founder of Basics, one of the India’s leading micro finance institutions. If this had come about in 2006, there would have been no malpractices of the kind we have seen in the sector, he said.

Coal India Required to Seek Finmins Approval for Foreign Acquisitions
Despite being a maharatna company, Coal India will now require finance ministry’s approval on the estimated internal rate of return on investment it makes for acquiring 15% in Peabody’s Wilkie Creek mining project in Australia. According to norms, a maharatna company can invest 15% of its net worth in a single project for establishing a new venture or undertaking an acquisition with a cap of.5,000 crore without taking government approval. The Wilkie Creek acquisition, however, is valued by experts at just about $120 million (.540 crore).Confirming the development a senior CIL official said that the board of directors had referred the decision to the coal ministry which in turn has referred it to the finance ministry for a final approval. It is currently waiting approval of the finance ministry.

Portugal downgrade ebbs euro zone rescue hopes
The downgrading of freshly bailed-out Portugal's credit rating to junk shocked financial markets on Wednesday and cast new doubt on European efforts to rescue distressed euro zone states without debt restructuring. The cost of insuring all weaker euro zone countries' debt against default rose on Moody's decision, announced late on Tuesday, to cut Portugal by four notches. The euro and European shares fell on the news, ending a seven day stocks rally on Wednesday.

Boeing Sees $150-b Market in India
India will order 1,320 aircraft, worth $150 billion, over the next two decades, American aircraft manufacturer Boeing has said in its latest market outlook. Globally, Boeing forecasts a market for 33,500 new passenger airplanes and freighters over the next 20 years, worth $4 trillion, of which India’s share will increase to 3.75% from less than 1% five years ago. Robust economic growth, rising disposable incomes and growing airport infrastructure will stimulate demand for a variety of aircraft for short and long-haul distances, Boeing India President Dinesh A Keskar said. India had 53.6 million domestic passengers and 13.1 million international passengers during the fiscal year ended March 31, 2011.

USFDA Bans Sale of Medicines from DRLs Mexico Facility, Warns Cadila
The United States Food and Drugs Administration on Wednesday banned the US sale of medicines made at Dr Reddy's Mexican facility and sent a warning letter to Cadila Healthcare for violating manufacturing norms at their plants. With this, all top Indian pharmaceutical firms have either been warned or slapped with product bans in the US in the last two to three years, four of them in the last three months alone. The US market, the largest in the world, accounts for about a quarter of India's.50, 000-crore drug exports. The import ban on Dr Reddy's follows a warning by the USFDA last year.

Mukesh to Bring Partner Aboard Gas Transport Co
Mukesh Ambani plans to sell a non controlling stake in Reliance Gas Transportation Infrastructure Ltd to bring aboard a partner that brings skills and value to the company involved in building pipelines in India. The company has given a mandate for the sale of a small stake and some road shows have already taken place, a source familiar with the development told ET. He said the extent of the stake sale was flexible but would not be a controlling stake. The company has held talks with international bankers for the stake sale, which may value the company at about $1 billion. RGTIL is privately owned by Mukesh Ambani and other promoters of Reliance Industries Ltd (RIL).The plan to sell a stake in RGTIL comes at a time when the government is poised to approve oil major BPs $7.2-billion deal to buy stakes in 23 oil and gas blocks of Reliance Industries. Reliance and BP also plan to set up a 50:50 joint venture for sourcing and marketing gas in the energy-hungry country.

Exchange-traded Funds Under UK Serious Fraud Office Scanner
UK fraud prosecutors are reviewing how exchange-traded funds are marketed and whether they have the proper tools to prosecute any wrongdoing in the industry, a person directly involved with the probe said. The Serious Fraud Office, which prosecutes white collar crime, hired a consultant to interview bankers and lawyers to determine whether there is a risk that sales of the products may involve criminal conduct in the future. The Financial Services Authority and the Bank of Englands Financial Policy Committee have warned of a lack of transparency in the ETF market. ETFs are exchange-listed products that mirror indexes, commodities, bonds and currencies and allow investors to buy and sell them like stocks.

Rising Input Prices a Concern for Bajaj Corp
Bajaj Corp, the latest consumer goods company to get listed on the bourses, has been witnessing recent buying interest in its scrip.The.358-crore hair oil company owns Bajaj Almond Drop as its flagship brand. The brand in the light hair oil category contributes over 90% to the companys revenues. Its other brands include Bajaj Brahmi Amla, Amla Shikakai, Jasmine hair oil and Kala Dant Manjan. The companys net sales have been growing at an higher rate over the past four quarters. However, a steep rise in price of its major raw material light liquid paraffin (LPP),a derivative of crude oil has impacted its bottom line. For the fiscal year ended March 2011,the companys net revenues grew 22%,while operating profit margin dropped to 25% from 33% in the previous year.

Sensex Should touch 22100 by End of 2011
BRIC, the acronym used to describe the fastest growing economies in the globe for over a decade, is no more relavant as Brazil, Russia, India and China begin to diverge and move in a direction that their individual fundamentals dictate, says a top executive from Nomura Asia Holdings. I think the BRIC moniker is outdated, said Philip Lynch, the chief executive officer of Nomura Asia Holdings. Brazil, Russia, India and China are all totally different economies, different countries. It's just a convenient acronym to brand emerging markets. I see each of these countries as opportunities in their own right.

Banks cant Invest over 20% of Paid-up Capital in Arms
The Reserve Bank of India has issued draft guidelines to limit banks equity investments in non-financial subsidiaries and companies in order to ensure that banks do not indirectly engage in activities which are not permissible to them. RBI wants aggregate equity investment in financial and non-financial subsidiaries and companies not to exceed 20% of each banks paid-up capital and reserves. The 20% cap would not, however, apply for investments classified under Held for Trading category and are not held beyond 90 days. As of now, banks need the regulators approval only if they are investing in a financial services company. Issuing the draft guidelines, the central bank has capped banks equity investments in financial and non-financial services companies and subsidiaries. The 20% limit is linked to banks paid-up capital and reserves. The Reserve Bank of India fears that banks could, through their holdings in such companies, exercise control or have significant influence over them and thus, engage indirectly in activities not permitted to banks.