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Last Updated : Jun 13, 2019 04:10 PM IST | Source: Moneycontrol.com

At a pre-Budget meet, here's what market players asked from Nirmala Sitharaman

The key areas discussed included issues relating to the capital markets, the financial sector, non-banking financial companies (NBFCs) and alternative investment funds, among others.

Kamalika Ghosh @GhoshKamalika

Finance Minister Nirmala Sitharaman held her third pre-Budget consultation with stakeholders from the financial sector and capital markets on June 13.

The key areas discussed included issues relating to the capital markets, the financial sector, non-banking financial companies (NBFCs) and alternative investment funds, among others.

They suggested a review of interest rates on government's small savings schemes, review of banking NPAs provisions through setting-up a committee, setting-up of debt Exchange Traded Fund (ETF), domestic capability building in audit and credit rating, and rationalisation of various taxes like Security Transaction Tax (STT) in the capital market.

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They also suggested that a separate bond exchange be set up, that banks be allowed to invest in Infrastructure Investment Trusts (InvITs) to access the broader market, and the corporate tax be made progressive to incentivise the MSME sector, among others.

"We discussed how to enhance the corporate bond market. At present retail investors do so through mutual funds. If some tax benefits can be extended to retail investors also, just like it has extended to mutual funds, they and the corporate bond market would benefit," Rakesh Sharma, IDBI Bank CEO and MD told reporters here.

Subhash Chandra Khuntia, Chairman of the Insurance Regulatory and Development Authority of India (IRDAI) said he suggested additional tax incentives for term plans to encourage investments, like in the case of the National Pension Scheme (NPS).

"A lot of suggestions have come regarding infrastructure financing, reviving the economy and what tax benefits can be given to encourage investments in MSME, exports. A lot of representation was also there from NBFCs," State Bank of India (SBI) Chairman Rajnish Kumar said after the meeting.

On being asked about SBI's capital requirements, Kumar said the bank does not need capital from the government.

"I think liquidity is not a major challenge right now.  NPA issue is not an issue of the Budget. It wasn't discussed in the meeting," Managing Director and CEO, Punjab National Bank, Sunil Mehta said after the meeting.

The meeting was attended by Anurag Thakur, Minister of State (MoS) for Finance and Corporate Affairs; Subhash Chandra Garg, Finance Secretary; Girish Chandra Murmu, Expenditure Secretary; Ajay Narayan Pandey, Revenue Secretary; and Rajeev Kumar, Secretary, DFS, among others.

Besides, RBI Deputy Governor NS Vishwanathan, Sebi Whole Time Member G Mahalingam, Kotak Mahindra Bank MD & CEO Uday Kotak, Central Bank of India MD & CEO Pallav Mohapatra, Punjab & Sind Bank MD and CEOs. Harisankar, IDFC Bank MD & CEO V Vaidyanathan and other key stakeholders also attended the meeting.

 

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First Published on Jun 13, 2019 04:01 pm
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