The US will overtake Saudi Arabia as the world's biggestoil producer "by around 2020", an International Energy Agency (IEA) report has said.
The IEA said the reason for this was the big growth and development in the US of extracting oil from shale rock.
This has enabled the US to gain significantly more extractable oil resources.
As a result, the IEA predicts the US will become "all but self-sufficient" in its energy needs by around 2035.
The US shale oil industry hasgrown significantly in recent years.
It extracts oil from the ground using a method called fracking - pumping down a mixture of sand, water and chemicals at high pressure.
The industry says the method is safe, but critics sayit could cause earthquakes and pollute water sources.
The IEA predicts that the US will be producing 11.1 million barrels per day by 2020, compared with 10.6 million from Saudi Arabia.
Currently the US imports about 20% of its total energyneeds.
The IEA also expects that theUS will overtake Russia as theword's biggest gas producerby 2015, again thanks to fracking, which can also be used to extract natural gas.
It warns that the big growth in US oil and gas production could have significant geopolitical implications, as it may make the US less concerned about the MiddleEast.
Monday, 12 November 2012
Morgan Stanley has sued a former employee
US financial firm Morgan Stanley has sued a former employee convicted for insider trading scheme in order to recover $33m, which it claims to have paid to the US Securities and Exchange Commission (SEC) to settle the civil case associated with the fraudulent activities.
The lender has filed a case with the Manhattan federal court, and sought recovery of the amount from the ex-FrontPoint Partners hedge fund manager Joseph"Chip" Skowron, reported Reuters.
Additionally, the bank sought for unspecified compensation and punitive damages.
In August 2008, Skowron acknowledged of being guilty for trading the stock ofHuman Genome Sciences after receiving non-public information from the biotech company's consultant.
The bank in the complaint claimed that it defended themanager based on the facts provided by the accused that he had not breached the regulation.
The US bank, which purchased FrontPoint in 2006, wanted to recover approximately $45m from the hedge fund manager, but in a March ruling, a judge said that it cannot recover the payment made to the SEC.
Instead, Skowron was ordered to pay $10.2m as compensation to the bank.
The lender has filed a case with the Manhattan federal court, and sought recovery of the amount from the ex-FrontPoint Partners hedge fund manager Joseph"Chip" Skowron, reported Reuters.
Additionally, the bank sought for unspecified compensation and punitive damages.
In August 2008, Skowron acknowledged of being guilty for trading the stock ofHuman Genome Sciences after receiving non-public information from the biotech company's consultant.
The bank in the complaint claimed that it defended themanager based on the facts provided by the accused that he had not breached the regulation.
The US bank, which purchased FrontPoint in 2006, wanted to recover approximately $45m from the hedge fund manager, but in a March ruling, a judge said that it cannot recover the payment made to the SEC.
Instead, Skowron was ordered to pay $10.2m as compensation to the bank.
Leucadia to Buy Jefferies in$3.6 Billion Deal
The Leucadia National Corporation said on Mondaythat it would buy the Jefferies Group in a deal valued at about $3.6 billion.
Shareholders of Jefferies will receive 0.81 of a Leucadia share for each of their shares, the announcement said. That represents a 24 percent premium to the closing price of Jefferies on Friday.
Leucadia, a conglomerate that has been likened to a"baby Berkshire Hathaway" because of the wide range of its holdings, already ownsabout 28.6 percent of Jefferies. After the deal closes, Jefferies shareholders will own 35.3 percent of the combined company.
The deal will give Jefferies adeep-pocketed owner as it continues to build out a full-service investment bank. The firm has sought toraise its profile in businesses like mergers advisory in partto provide a counterbalanceto its core business of trading stocks and bonds.
The firm's stock price has outperformed those of larger rivals like Goldman Sachs and Morgan Stanley over the last five years, though all three banks havestruggled since the onset of the financial crisis.
Jefferies survived questions about its holdings in European debt last year, quickly selling off government bonds in an effort to assuage market fears.
Richard B. Handler, chairman and chief executive of Jefferies, will become Leucadia's chief. Joseph S. Steinberg, Leucadia's president and co-founder, will become chairman of the combined company. Ian M. Cumming, Leucadia's other co-founderand its current chairman and chief executive, will retire but remain a director.
"Having known Joe and Ianfor over two decades, this transaction represents the realization of a personal dream for me," Mr. Handlersaid in a statement. "I am honored with the trust and confidence Ian and Joe are demonstrating by allowing us to carry on their life's work."
Shareholders of Jefferies will receive 0.81 of a Leucadia share for each of their shares, the announcement said. That represents a 24 percent premium to the closing price of Jefferies on Friday.
Leucadia, a conglomerate that has been likened to a"baby Berkshire Hathaway" because of the wide range of its holdings, already ownsabout 28.6 percent of Jefferies. After the deal closes, Jefferies shareholders will own 35.3 percent of the combined company.
The deal will give Jefferies adeep-pocketed owner as it continues to build out a full-service investment bank. The firm has sought toraise its profile in businesses like mergers advisory in partto provide a counterbalanceto its core business of trading stocks and bonds.
The firm's stock price has outperformed those of larger rivals like Goldman Sachs and Morgan Stanley over the last five years, though all three banks havestruggled since the onset of the financial crisis.
Jefferies survived questions about its holdings in European debt last year, quickly selling off government bonds in an effort to assuage market fears.
Richard B. Handler, chairman and chief executive of Jefferies, will become Leucadia's chief. Joseph S. Steinberg, Leucadia's president and co-founder, will become chairman of the combined company. Ian M. Cumming, Leucadia's other co-founderand its current chairman and chief executive, will retire but remain a director.
"Having known Joe and Ianfor over two decades, this transaction represents the realization of a personal dream for me," Mr. Handlersaid in a statement. "I am honored with the trust and confidence Ian and Joe are demonstrating by allowing us to carry on their life's work."
AIG keen to sell bank, expand in mortgages: CEO
HONG KONG (Reuters) - American International Group Inc is planning to sell its savings and loan business as soon as a federal panel labels the insurance giant"too big to fail," its chief executive said on Monday.
But even without a banking business, AIG is now lookingmore aggressively at making and purchasing mortgages asinvestment vehicles, Chief Executive Officer Bob Benmosche said in a telephone interview from Tokyo.
AIG, which received $182.5 billion in bailout money fromU.S. taxpayers at the height of the financial crisis four years ago, has been working to repay the government and regain its credibility ever since.
AIG is regulated by the Federal Reserve because it has a savings and loan business. But even without it,the insurer is likely to come under permanent Fed oversight anyway as a"systemically important financial institution ," or SIFI.Those designations have not been made yet, but AIG has said all along it is certain to receive one.
Benmosche said of the S&L,"we are planning to close it down. It's a business that doesn't makes sense to be in."
He said he would wait to sellthe unit so there would be no break in regulatory oversight. He declined to discuss how much the sale might fetch, but he said the business had less than $1 billion of assets.
Having the Fed oversee AIG's liquidity and capital structure is strategically important because it establishes credibility, said Benmosche , who was in Japan overseeing a rebranding effort.
Benmosche said he did not know when AIG would receive the SIFI label.
"We're exploring a sale, we're exploring turning it into a trust vehicle rather than a savings institution withdeposits. We're looking at a whole bunch of options," he said.
AIG has spoken to banks as potential purchasers and hired lawyers, Benmosche said.
MORTGAGE EXPANSION
Even as it looks to sell off thebank, though, one place AIGis bulking up is in mortgages . The company's mortgage insurer, UGC, has become unexpectedly strong in recent years as competitors have faltered due to crisis-era losses.
But Benmosche said AIG would like to go even deeper than just insuring home loans.
"We are also now looking at ways we could become direct investors in mortgages," he said. "We aregoing to do more of our owndirect lending, both commercially and residentially."
AIG's motivation is the same as for many insurers in this persistently low interest rate environment -- yield. With fixed income portfolios struggling, insurers are hungry for even a few extra basis points of relatively safe return.
Benmosche said "it makes a big deal" at the current low rates to get that little bit of extra yield by buying mortgages directly, which is why he said AIG is talking tobig banks about buying theirnon-agency mortgage debt.
DEBT REDUCTION
The CEO, credited with turning AIG around from a battered company in the midst of a fire sale of assets, has been active in the media,talking up AIG's prospects after a November 1 earnings report that some analysts found disappointing.
Shares are down nearly 10 percent since, with most of that drop coming after the company said it would ease up on buybacks in favor of using its capital to manage itsdebt load.
One way AIG might manage that debt is with the sale of ILFC , its aircraft leasing business. The company filed for an IPO of ILFC in the fall of 2011, but progress has been stymied by weak markets. Benmosche said Monday the sale would haveto wait until circumstances improved.
"The main thing is we feel we should try to get to a 51 percent sale such that we can deconsolidate the debt from AIG, so that's a target that we have, but we will have to see how it goes," he said. "We are looking for a major launch that gets us more than halfway there."
With the debt under control,and buybacks essentially completed, AIG has talked about the possibility of paying a dividend as soon asnext year.
"There's several things we could be doing and we are still exploring all of those possibilities," Benmosche said.
But even without a banking business, AIG is now lookingmore aggressively at making and purchasing mortgages asinvestment vehicles, Chief Executive Officer Bob Benmosche said in a telephone interview from Tokyo.
AIG, which received $182.5 billion in bailout money fromU.S. taxpayers at the height of the financial crisis four years ago, has been working to repay the government and regain its credibility ever since.
AIG is regulated by the Federal Reserve because it has a savings and loan business. But even without it,the insurer is likely to come under permanent Fed oversight anyway as a"systemically important financial institution ," or SIFI.Those designations have not been made yet, but AIG has said all along it is certain to receive one.
Benmosche said of the S&L,"we are planning to close it down. It's a business that doesn't makes sense to be in."
He said he would wait to sellthe unit so there would be no break in regulatory oversight. He declined to discuss how much the sale might fetch, but he said the business had less than $1 billion of assets.
Having the Fed oversee AIG's liquidity and capital structure is strategically important because it establishes credibility, said Benmosche , who was in Japan overseeing a rebranding effort.
Benmosche said he did not know when AIG would receive the SIFI label.
"We're exploring a sale, we're exploring turning it into a trust vehicle rather than a savings institution withdeposits. We're looking at a whole bunch of options," he said.
AIG has spoken to banks as potential purchasers and hired lawyers, Benmosche said.
MORTGAGE EXPANSION
Even as it looks to sell off thebank, though, one place AIGis bulking up is in mortgages . The company's mortgage insurer, UGC, has become unexpectedly strong in recent years as competitors have faltered due to crisis-era losses.
But Benmosche said AIG would like to go even deeper than just insuring home loans.
"We are also now looking at ways we could become direct investors in mortgages," he said. "We aregoing to do more of our owndirect lending, both commercially and residentially."
AIG's motivation is the same as for many insurers in this persistently low interest rate environment -- yield. With fixed income portfolios struggling, insurers are hungry for even a few extra basis points of relatively safe return.
Benmosche said "it makes a big deal" at the current low rates to get that little bit of extra yield by buying mortgages directly, which is why he said AIG is talking tobig banks about buying theirnon-agency mortgage debt.
DEBT REDUCTION
The CEO, credited with turning AIG around from a battered company in the midst of a fire sale of assets, has been active in the media,talking up AIG's prospects after a November 1 earnings report that some analysts found disappointing.
Shares are down nearly 10 percent since, with most of that drop coming after the company said it would ease up on buybacks in favor of using its capital to manage itsdebt load.
One way AIG might manage that debt is with the sale of ILFC , its aircraft leasing business. The company filed for an IPO of ILFC in the fall of 2011, but progress has been stymied by weak markets. Benmosche said Monday the sale would haveto wait until circumstances improved.
"The main thing is we feel we should try to get to a 51 percent sale such that we can deconsolidate the debt from AIG, so that's a target that we have, but we will have to see how it goes," he said. "We are looking for a major launch that gets us more than halfway there."
With the debt under control,and buybacks essentially completed, AIG has talked about the possibility of paying a dividend as soon asnext year.
"There's several things we could be doing and we are still exploring all of those possibilities," Benmosche said.
Japan may already be in recession - economics minister
TOKYO (Reuters) - Japan may already have fallen into recession, the country's economics minister, Seiji Maehara, said on Monday.
"I cannot deny the possibility that Japan has fallen into a recession phase," Maehara told reporters, adding that a final assessment on the state of the economy would be made when more data became available.
He also said he expected theBank of Japan to pursue powerful easing, and that the government and central bank would work together to beat deflation and encourage economic recovery.
Japan's economy shrank 0.9 percent in the three months to September, marking the first contraction in three quarters, adding to signs thatslowing global growth and tensions with China are nudging the world's third-largest economy into recession.
The fall in GDP, which matched a median market forecast, translated into an annualised 3.5 percent fall, government data showed onMonday
"I cannot deny the possibility that Japan has fallen into a recession phase," Maehara told reporters, adding that a final assessment on the state of the economy would be made when more data became available.
He also said he expected theBank of Japan to pursue powerful easing, and that the government and central bank would work together to beat deflation and encourage economic recovery.
Japan's economy shrank 0.9 percent in the three months to September, marking the first contraction in three quarters, adding to signs thatslowing global growth and tensions with China are nudging the world's third-largest economy into recession.
The fall in GDP, which matched a median market forecast, translated into an annualised 3.5 percent fall, government data showed onMonday
Sunday, 11 November 2012
Clyne National Australia Bank CEO set to reap $4m bonus
NATIONAL Australia Bank chief executive Cameron Clyne stands to be awarded almost $4 million worth of bonuses.
The bank's shareholders willvote on the grant of performance rights to Mr Clyne and the bank's director of finance Mark Joiner in December, just months after NAB posted a 22 per cent drop in full yearnet profit to $4.08 billion.
Mr Clyne stands to be awarded up to $1.2 million in NAB shares under short-term incentives, and up to$2.7m in shares as part of long-term incentives.
Mr Joiner could be granted shares worth more than$1.5m.
The long-term incentive performance rights will be subject to the achievement of a performance hurdle, NAB said in its notice of annual general meeting issued today.
The bank's shareholders willvote on the grant of performance rights to Mr Clyne and the bank's director of finance Mark Joiner in December, just months after NAB posted a 22 per cent drop in full yearnet profit to $4.08 billion.
Mr Clyne stands to be awarded up to $1.2 million in NAB shares under short-term incentives, and up to$2.7m in shares as part of long-term incentives.
Mr Joiner could be granted shares worth more than$1.5m.
The long-term incentive performance rights will be subject to the achievement of a performance hurdle, NAB said in its notice of annual general meeting issued today.
Know how Islamic Banking operate.
A. INTRODUCTION
With the rapid growth of the world-wide economy along with the expanding economy in the Islamic countries, Islamic banking isevolving to play a vital role in the world. The principlesof Islamic banking differ substantially from those of conventional financing by traditional financial institutions. Islamic principles prohibit usury, the conducting any business involving Riba (interest), i.e. collection or payment of interest, under the Syariah law (Islamic law). Therefore Islamic banks were, during the Middle Ages, functioning essentially as savings institutions rather than commercial banks.
B. LAW AND PRINCIPLE
The principles of Islamic banking were derived fromthe Quran (the revealed book of Muslims) and the Prophet Muhammad (pbuh)and are governed by Shariah law (Islamic law). Islamic law besides prohibiting the payment and/or collection of interests, regardless of the purpose for which loans aremade and the rates at which interests are charged,also prohibits activities dealing with liquor, pork, gambling, pornography and anything which Islamiclaw deems Haram (unlawful).
Islamic banking is instrumental to the development of an Islamic economic order which ensures social justice, such as forbidding all forms of economic activities which are morally or socially injurious, ensuring ownership of wealth legitimately acquired, allowing an individual to retain any surplus wealth and seeking to prevent the accumulation of wealth in a few hands to the detriment of society as a whole through its laws of inheritance.
C. STRUCTURING ISLAMIC PRODUCTS
The commercial purpose of Islamic banking is the same as conventional banking butit needs to operate within the principles stated above. Due to the rules of Shariah, Islamic finance products areoften based on the principles of risk-sharing and profit-sharing. Commonconcepts used are profit sharing (Mudharabah), safekeeping (Wadiah), joint venture (Musharakah), cost plus (Murabahah) and leasing (ljarah). Such sharing principles can provide acceptable financialreturns to investors by providing potential profit inproportion to the risk assumed. This type of structured products can satisfy the demands of investors in the contemporary environment within the guidelines of theIslamic Law. The most activefinancing provided are in the areas of trade, commodity finance, property and leasing.
Also, Islamic financing is only permissible to acceptable deals which exclude those involving alcohol, pork, gambling, etc.Therefore ethical investing is the only acceptable form of investment for Muslims.
With the rapid growth of the world-wide economy along with the expanding economy in the Islamic countries, Islamic banking isevolving to play a vital role in the world. The principlesof Islamic banking differ substantially from those of conventional financing by traditional financial institutions. Islamic principles prohibit usury, the conducting any business involving Riba (interest), i.e. collection or payment of interest, under the Syariah law (Islamic law). Therefore Islamic banks were, during the Middle Ages, functioning essentially as savings institutions rather than commercial banks.
B. LAW AND PRINCIPLE
The principles of Islamic banking were derived fromthe Quran (the revealed book of Muslims) and the Prophet Muhammad (pbuh)and are governed by Shariah law (Islamic law). Islamic law besides prohibiting the payment and/or collection of interests, regardless of the purpose for which loans aremade and the rates at which interests are charged,also prohibits activities dealing with liquor, pork, gambling, pornography and anything which Islamiclaw deems Haram (unlawful).
Islamic banking is instrumental to the development of an Islamic economic order which ensures social justice, such as forbidding all forms of economic activities which are morally or socially injurious, ensuring ownership of wealth legitimately acquired, allowing an individual to retain any surplus wealth and seeking to prevent the accumulation of wealth in a few hands to the detriment of society as a whole through its laws of inheritance.
C. STRUCTURING ISLAMIC PRODUCTS
The commercial purpose of Islamic banking is the same as conventional banking butit needs to operate within the principles stated above. Due to the rules of Shariah, Islamic finance products areoften based on the principles of risk-sharing and profit-sharing. Commonconcepts used are profit sharing (Mudharabah), safekeeping (Wadiah), joint venture (Musharakah), cost plus (Murabahah) and leasing (ljarah). Such sharing principles can provide acceptable financialreturns to investors by providing potential profit inproportion to the risk assumed. This type of structured products can satisfy the demands of investors in the contemporary environment within the guidelines of theIslamic Law. The most activefinancing provided are in the areas of trade, commodity finance, property and leasing.
Also, Islamic financing is only permissible to acceptable deals which exclude those involving alcohol, pork, gambling, etc.Therefore ethical investing is the only acceptable form of investment for Muslims.
Chinese slow down would hurt African growth
A slowing Chinese economymay weaken demand for Africa’s raw materials, damaging a key driver of growth for the world’s poorest continent, said Mthuli Ncube, chief economist of the African Development Bank.
“What could be a big surprise factor in Africa’s economic growth is China,” Ncube said by phone from Tunis yesterday. “If the slowdown in China reducesits demand for oil, copper and base metals, the question is how much will that impact on commodity prices. That could really hurt Africa.”
China’s commodity demandhas helped propel economic growth in sub-Saharan African nationsincluding Zambia, the region’s biggest copper exporter, Nigeria, the continent’s largest oil producer, and Congo and Gabon, which both producetimber. Economic growth in the region is forecast to accelerate to 5.5 per cent in 2013 from about 5 per cent this year, Ncube said.
China in 2010 consumed one-fifth of global non-renewable energy resources, 23 per cent of major crops and 40 per centof metals, after increasing itsmarket share “sharply” over the past decade, according to the International Monetary Fund.
While China’s expansion cooled to a three-year low of 7.4 per cent in the third quarter, gages of manufacturing and retail sales have pointed to a recovery. Growth will probably pick up to 7.7 percent this quarter and 7.9 per cent in the three months through March 2013, according to a Bloomberg survey.
European crisis
Africa is also withstanding Europe’s debt crisis, thoughgovernments are failing to ensure the growing wealth reduces poverty, Ncube said. North Africa is seeing rising oil production and strong economic policies in East and West Africa are helping buoy growth there,while South Africa, the continent’s largest economy,is facing challenges from mining- labor unrest, Ncube said.
The financial upheaval in Europe is creating an opportunity for African nations to sway Chinese investors to redirect their exports and investment, said Ncube.
“If China is looking for new markets for its exports then Africa could benefit, the same for investment,” he said.
Trade between Africa and China is currently worth$166 billion after growing 30 per cent in 2011 and 25 per cent in the first half of this year, according to Jeremy Stevens, a Beijing- based economist at Standard Bank Group, Africa’s biggest lender.
Bloomberg
“What could be a big surprise factor in Africa’s economic growth is China,” Ncube said by phone from Tunis yesterday. “If the slowdown in China reducesits demand for oil, copper and base metals, the question is how much will that impact on commodity prices. That could really hurt Africa.”
China’s commodity demandhas helped propel economic growth in sub-Saharan African nationsincluding Zambia, the region’s biggest copper exporter, Nigeria, the continent’s largest oil producer, and Congo and Gabon, which both producetimber. Economic growth in the region is forecast to accelerate to 5.5 per cent in 2013 from about 5 per cent this year, Ncube said.
China in 2010 consumed one-fifth of global non-renewable energy resources, 23 per cent of major crops and 40 per centof metals, after increasing itsmarket share “sharply” over the past decade, according to the International Monetary Fund.
While China’s expansion cooled to a three-year low of 7.4 per cent in the third quarter, gages of manufacturing and retail sales have pointed to a recovery. Growth will probably pick up to 7.7 percent this quarter and 7.9 per cent in the three months through March 2013, according to a Bloomberg survey.
European crisis
Africa is also withstanding Europe’s debt crisis, thoughgovernments are failing to ensure the growing wealth reduces poverty, Ncube said. North Africa is seeing rising oil production and strong economic policies in East and West Africa are helping buoy growth there,while South Africa, the continent’s largest economy,is facing challenges from mining- labor unrest, Ncube said.
The financial upheaval in Europe is creating an opportunity for African nations to sway Chinese investors to redirect their exports and investment, said Ncube.
“If China is looking for new markets for its exports then Africa could benefit, the same for investment,” he said.
Trade between Africa and China is currently worth$166 billion after growing 30 per cent in 2011 and 25 per cent in the first half of this year, according to Jeremy Stevens, a Beijing- based economist at Standard Bank Group, Africa’s biggest lender.
Bloomberg
India to probe black money Bank claims.
A day after Indian activist Arvind Kejriwal accused it of inaction over black money allegedly stashed away in HSBC Bank in Geneva, government on Saturday said investigations are in progress with tax authorities to obtain more information regarding the reported account holders.
Without naming either the bank or the account holders involved, Indian government came out with a statement saying that appropriate action has been taken on these cases based on information received last year from the French government.
"And further including assessment, tax collection and levy of penalty will be taken as per the provisions ofthe Income Tax Act, 1961 and based on the facts of theeach case", said a statement issued on behalf of the Department of Revenue of the Finance Ministry.
The statement comes in the wake of allegations levelled by India Against Corruption (IAC) activist Kejriwal and lawyer Prashant Bhushan that government has taken no action on the information provided purportedly on 700 account holders in HSBCGeneva by the French government.
They had also named top industrialists and a politician as having parked their money to the tune of R s. 6000 crore in the bank.
The official statement merely said that information was received in June last year bythe government from its counterpart in France relating to certain bank accounts reportedly held by certain individuals and non-individuals in a foreign bank.
Reference to this matter was made by the then Finance Minister during the course ofthe debate on adjournment motion in the Lok Sabha on December 14. Subsequently,answers to question on this matter were furnished in theRajya Sabha on August 23 this year.
"Information was received inJune, 2011 by the Government of India from the Government of France relating to certain bank accounts reportedly held by certain individuals/ non-individuals in a foreign bank", the statement said.
"Information received from the Government of France has been analysed and investigations into the information have been undertaken by the different jurisdictional authorities under the Income Tax Act 1961", it said.
The statement said it would be pertinent to point out thatthe information received from France is covered by the confidentiality clause under the Double Taxation Avoidance Convention (DTAC) between India and France and can be used onlyfor the tax purposes specified there in.
Without naming either the bank or the account holders involved, Indian government came out with a statement saying that appropriate action has been taken on these cases based on information received last year from the French government.
"And further including assessment, tax collection and levy of penalty will be taken as per the provisions ofthe Income Tax Act, 1961 and based on the facts of theeach case", said a statement issued on behalf of the Department of Revenue of the Finance Ministry.
The statement comes in the wake of allegations levelled by India Against Corruption (IAC) activist Kejriwal and lawyer Prashant Bhushan that government has taken no action on the information provided purportedly on 700 account holders in HSBCGeneva by the French government.
They had also named top industrialists and a politician as having parked their money to the tune of R s. 6000 crore in the bank.
The official statement merely said that information was received in June last year bythe government from its counterpart in France relating to certain bank accounts reportedly held by certain individuals and non-individuals in a foreign bank.
Reference to this matter was made by the then Finance Minister during the course ofthe debate on adjournment motion in the Lok Sabha on December 14. Subsequently,answers to question on this matter were furnished in theRajya Sabha on August 23 this year.
"Information was received inJune, 2011 by the Government of India from the Government of France relating to certain bank accounts reportedly held by certain individuals/ non-individuals in a foreign bank", the statement said.
"Information received from the Government of France has been analysed and investigations into the information have been undertaken by the different jurisdictional authorities under the Income Tax Act 1961", it said.
The statement said it would be pertinent to point out thatthe information received from France is covered by the confidentiality clause under the Double Taxation Avoidance Convention (DTAC) between India and France and can be used onlyfor the tax purposes specified there in.
Saturday, 10 November 2012
The Role Of Life Insurance
Insurance is one of life's necessities and probably the least-understood financial product. Insurance reimburses people for covered losses in the event of an unfortunate occurrencesuch as an illness, accident, or death. At the same time, itcan encourage prevention and safety measures, provideinvestment capital, lend money, and help to reduce anxiety for society at large.
As a mechanism against loss of income and a means of safeguarding assets, most Americans have insurance in one form or another. These coverage's may include public coverage, such as disability insurance under Social Security, a health care policy from an employer, or personal insurance to protectproperty such as computers, homes, and cars.
You may save money in yourpension and other investments and have capitalin your home. But if you don't know exactly what your life insurance policy covers or have only glanced at your employer-provided health and disability insurance policies, you're neglecting an important aspect of your financial plan.
Until something happens, such as a car accident, an illness, or the death of a loved one, paying for insurance may seem like buying something you'll never use. But even if you never submit a claim, insurance is an investment inyour future, as important as pensions and personal investments. Indeed, many financial planners argue that you should have an adequate insurance safety net in place before considering investment strategies.
The function of insurance is to protect you against losses you can't afford. This is doneby transferring the risks of a person, business, or organization -- the "insured"-- to an insurance company, or "insurer." The insurer then reimburses the insured for "covered" losses - i.e., those losses it pays for underthe policy's terms.
As the insurance consumer, you pay an amount of money, called a premium, to the insurer to transfer the risk. The insurer pools all its premiums into a large fund, and when a policyholder hasa loss, the insurer draws funds from the pool to pay for the loss.
Life is full of unexpected events that can create large financial losses. For example, whenever you drive, it is possible that you may have acostly accident. Risks affect you by causing worry about potential loss and how to deal with the consequences. Insurance reduces anxiety over a possible loss and absorbs the financial brunt ofits consequences.
However, while insurance coverage is essential, how much and what type of insurance people need differwith each individual. You must decide how much risk you're willing to tolerate without insurance. For example, benefits for disability policies typically begin after a waiting period of one to six months. Therefore, you should ensure that you have some form of coverage or financial resources before the policy period begins.
As a mechanism against loss of income and a means of safeguarding assets, most Americans have insurance in one form or another. These coverage's may include public coverage, such as disability insurance under Social Security, a health care policy from an employer, or personal insurance to protectproperty such as computers, homes, and cars.
You may save money in yourpension and other investments and have capitalin your home. But if you don't know exactly what your life insurance policy covers or have only glanced at your employer-provided health and disability insurance policies, you're neglecting an important aspect of your financial plan.
Until something happens, such as a car accident, an illness, or the death of a loved one, paying for insurance may seem like buying something you'll never use. But even if you never submit a claim, insurance is an investment inyour future, as important as pensions and personal investments. Indeed, many financial planners argue that you should have an adequate insurance safety net in place before considering investment strategies.
The function of insurance is to protect you against losses you can't afford. This is doneby transferring the risks of a person, business, or organization -- the "insured"-- to an insurance company, or "insurer." The insurer then reimburses the insured for "covered" losses - i.e., those losses it pays for underthe policy's terms.
As the insurance consumer, you pay an amount of money, called a premium, to the insurer to transfer the risk. The insurer pools all its premiums into a large fund, and when a policyholder hasa loss, the insurer draws funds from the pool to pay for the loss.
Life is full of unexpected events that can create large financial losses. For example, whenever you drive, it is possible that you may have acostly accident. Risks affect you by causing worry about potential loss and how to deal with the consequences. Insurance reduces anxiety over a possible loss and absorbs the financial brunt ofits consequences.
However, while insurance coverage is essential, how much and what type of insurance people need differwith each individual. You must decide how much risk you're willing to tolerate without insurance. For example, benefits for disability policies typically begin after a waiting period of one to six months. Therefore, you should ensure that you have some form of coverage or financial resources before the policy period begins.
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