CAP LIKELY ON MNC ARMS' DIVIDEND TO PARENT Cos
Article Abstract:
The government of India intends to impose a cap on the dividend paid by the subsidiaries of the multinational companies to their parent companies. The government has proposed a cap that will be 300 basis points more than the prime lending rate of State Bank of India. The proposed rate is expected to be around 16-17 percent. The government's move follows the observations made by the Reserve Bank of India (RBI). The RBI had observed that the subsidiaries were exploiting the tax free status given to the dividends and issue of preference shares by offering huge dividends to their parents. The Indian finance ministry has also shown concern as payment of huge dividends could affect the short term debt of India. (ag)
Comment:
India: Government intends to impose cap on the dividend paid by the subsidiaries of multinational firms to parent companies
Publication Name: Economic Times
Subject: Business, international
ISSN: 0013-0389
Year: 1998
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LEAFIN INDIA FD
Article Abstract:
The fixed deposit rating of Leafin India Ltd has been downgraded from MA (adequate safety) to MB+ (inadequate safety) by the Investment Information Credit Rating Agency. It is placed under the rating watch list. The company has strained liquidity as its collections are low and it suffers from high gearing. (rk) (kvr)
Publication Name: Economic Times
Subject: Business, international
ISSN: 0013-0389
Year: 1999
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