CII for option trading in rupee

NEW DELHI, AUG 15: The Confederation of Indian Industry (CII) has demanded that RBI should introduce options trading in rupee to offset f...

NEW DELHI, AUG 15: The Confederation of Indian Industry (CII) has demanded that RBI should introduce options trading in rupee to offset fluctuations in the currency value. Rupee options should be introduced as quickly as possible to give the forex market depth and ensure that the exchange control policy promoted greater export of goods and services, CII said in a paper submitted to the RBI.

At the same time, an appropriate system of checks and balances and comprehensive market supervision supported by a legal framework should be in place, it said in a paper on "exchange control manual." Authorised forex dealers should be given permission to make remittances for payment of professional fees, interest on loans, inspection fees and consultancy charges for which RBI could give post facto approval, it said in a statement.

This would ensure that RBI would retain adequate controlling powers but actual remittances could be made without delays by authorised dealers after scrutiny of the relevant documentssubmitted to them, CII said.

In addition, RBI should permit export proceeds to be realised "on the due date of payment but not exceeding six months from the date of shipment," to prevent unnecessary hassles involved in seeking extensions, it said. CII said the existing practice of routing all export documents irrespective of value through authorised dealers led to unnecessary costs, especially when the amount involved was small. It, therefore, suggested that exporters be permitted to send bills up to the value of $ 1000 direct to the buyer.

To stimulate investment abroad by Indians, CII recommended that the present ceiling of $ 15 million on investment abroad from the EEFC account should be doubled and restrictions on international cards should also be removed.

Reduce poll burden on India Inc

NEW DELHI: In the first initiative of its kind by an apex industry body, Confederation of Indian Industry president Rahul Bajaj is writing to all its 3500 members highlighting the need for state funding of general elections on reasonable basis to reduce political donations by corporates.

Bajaj said the corporate sector was operating under various limitations after opening up of the country’s economy which has necessitated the need for state funding of political parties. This, however, does not mean that political donations by corporates should be completely eliminated, he said.