Manmohan as FM: Day 1 actions at a glance

It’s been an action-packed first day for Prime Minister Manmohan Singh, who took over the finance ministry portfolio after Pranab Mukherjee’s resignation. Below is a list of actions taken by finance ministry and the SEBI on Thursday.

Petrol prices cut: Manmohan Singh went ahead with the decision to cut petrol prices , effective midnight Thursday. This step that was bound to bring cheer to the market, which jumped 250 points in early Friday trade. Petrol prices have been cut by Rs 2.46 per litre in Delhi, and between Rs 2.46-3.22 per litre in different parts of the country. In Mumbai, petrol prices have come down to Rs 3.1 a litre.

This move was expected as crude prices nosedived over the past few days in the international market. Brent crude has fallen below USD 90 per barrel and is now threatening to face a quarter worse than 2008 crisis.

However, there has been no move on diesel, LPG or kerosene prices which is where the government suffers the largest subsidy burden

Clarification on GAAR: The second big-bang announcement related to clarification on the General Anti-Avoidance Rules (GAAR). The contengious issue created uproar on Dalal Street when former Finance Minister Pranab Mukherjee, in Budget 2012, announced it will be implemented on April 1, 2013. But the goovernment on Thursday clarified that only those income accruing after April 1, 2013 will be subject to the provisions of the GAAR. This means GAAR will not apply to taxpayer' income with retrospective effect, allaying many investors' fear. Also, participatory notes may not be included in the taxation.

MFs to become attractive for distributors: The finance ministry had asked market regulator SEBI to relook its stance on entry load charged by mutual fund distributors. The two will think of ways to make incentives of mutual fund distributors more attractive, which in a course of time will revive the industry. Former SEBI chairman CB Bhave had scrapped the entry charges, a move which benefitted the customers, but put mutual fund houses under financial duress.

Meanwhile, the Reserve Bank of India released its F ifth Financial Stability Report in which it chalked out concerns regarding deteriorating asset quality and domestic & global macro worries. The report, however, said a banking crisis was unlikely.