CII pegs 9 percent growth target in financial sector
New Delhi: The Confederation of Indian Industry (CII) has expressed the view that the financial sector has to be made vibrant in order to finance infrastructure projects and thereby attain a 9-per cent growth rate. Mr. Arun Bharat Ram, CII president has said that the present state of the financial sector is a serious constraint on nine-per cent economic growth. He has called for measures to quickly create a vibrant market for trading in medium to long-term debt instruments for financing infrastructure projects. Expressing his concern over the sustainability of nine-per cent growth, Mr. Arun Bharat Ram has said for the growth trend to persist, there was need for higher and sustained investment in physical and social infrastructure.
The CII president has said the economy cannot afford the quantum jump in the infrastructure investment, unless it stepped up the savings rate that had been stagnating around 19 per cent.
Stressing the need to introduce new financial instruments to increase household and corporate sector savings for channeling these savings into infrastructure projects, Mr. Arun Bharat Ram said that government must actively encourage foreign direct investment in infrastructure.
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Bill to crack down on tobacco advertising, sponsorships
New Delhi: The central government has approved the introduction of the Tobacco Products (Prohibition of Advertisement and Regulation) Bill 2000, which seeks to put a ban on advertising and sponsoring of sports and cultural events by tobacco companies. Even media companies will be banned from advertising tobacco products.

Tobacco companies – cigarette, chewing tobacco and gutka – are known to spend close to Rs 250 crore on advertising in the mass media (print, television and radio) as well as on outdoor promotion, including sponsorship of sports and cultural events.

The new act is expected to make it very difficult for a company to launch new brands competing against existing strong brands as also act as an effective entry barrier for new entrants, including overseas tobacco companies.
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IRDA to relax guidelines for corporate agents
New Delhi: The Insurance Regulatory and Development Authority (IRDA) is considering relaxation of the corporate agent guidelines and making it broad-based.

As per IRDA classification, a corporate agent is a person other than an individual, which would included a firm or a company formed under the Companies Act, 1956, and includes a banking company also. Cooperatives and panchayats will also be allowed to qualify as corporate agents. Also, non-marketing directors of a company getting in the business of corporate agents, earlier required to undergo minimum 100 hours of training, will no longer be required to undergo the training, which will now be restricted to marketing directors only.
According to IRDA regulations, all directors of the corporate agent are to be qualified to sell the insurance policies. The changes are being sought by the regulator to the existing corporate agency guidelines, as a result of the feedback received from the industry both existent and prospective players. The move is also aimed at broadening the reach of the insurers deep into the rural markets.
Till now, all the regulations except those of the brokers have been brought out by the IRDA. The broker regulations are now awaiting final approval of the law ministry.
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UTI to take 49% stake in UTI Global's insurance foray
Kolkata: UTI Bank will hold 49 per cent of UTI Global Bank's planned new insurance company. UTI Bank and Global Trust Bank, which merged to create India's largest private sector bank - UTI Global Bank- will be the first new private sector bank to directly enter the liberalised insurance sector in India.
Mr. Ramesh Gelli, co-founder of Global Trust Bank and his associates will have 15 per cent of the insurance venture, the Unit Trust of India 10 per cent and a foreign partner the remaining 26 per cent. Mr. Gelli would head UTI Global Bank's foray into insurance.
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