India

India’s Economic Survey today prescribed a new bankruptcy law for ensuring speedy disposal of insolvency petitions, the Business Standard reported on a Press Trust of India story. At present, the country does not have any separate bankruptcy law. But, the provisions of bankruptcy are included in the Companies Act, 1956.

Beijing is diversifying its overseas investments and pressing U.S. officials for an "exit strategy" from the ultra-loose fiscal and monetary policies that China fears will eventually inflate away the value of its U.S. bond holdings and fell the dollar. But China's pragmatic policymakers also know there is no practical alternative to the dollar as the world's main reserve currency.

The European Commission said on Friday that it had launched an in-depth investigation into the restructuring of Belgian-French financial group Dexia, Reuters reported. The Commission said in a statement it intended to make sure the restructuring plan would guarantee the long-term viability of the group, hit hard by the financial crisis. But the executive arm of the 27-nation European Union also authorised guarantees worth $16.9 billion from the Belgian and French governments to aid in the sale of FSA, the bank's U.S. subsidiary.

Australia’s ailing car industry has taken another blow, with Albury manufacturer Drivetrain International Systems falling into receivership with debts of $30 million to $40 million, SmartCompany.com.au reported. Production has been suspended for a week, with the company’s 400 workers stood down. Receivers and manager Stephen Longley from PricewaterhouseCooopers will assess the company’s financial position and attempt to sell the business as a going concern. Production is expected to resume next week in a reduced form.

The Bombay High Court has rejected an application made by IDBI Bank and ICICI Bank seeking appointment of a court receiver to oversee the administration of Maytas Infra, India Infoline reported. The report stated that Maytas is carrying out 62 infrastructure projects and has Rs40.45 billion debt outstanding, in term loans and working capital facilities from various banks. Maytas' financial health and its ability to complete the ongoing projects is crucial for the banks, report adds. On February 9, a HC judge had refused to grant ad-interim relief sought by the two banks.

India's capital markets regulator Monday said it has received a request from the board of Satyam Computer Services Ltd. to ease rules relating to open offer pricing. Such a change, if granted, could pave the way for a takeover of the software exporter, The Wall Street Journal reported. The chairman of the Securities and Exchange Board of India told reporters that SEBI recognizes that there is a need to amend pricing norms for open offers to suit all situations.

Satyam Computer Services Ltd. said it can keep operating in the wake of revelations its former chairman faked results--but it is strapped for cash and its investigation into the true state of its finances is being hampered by the absence of the chief financial officer, who has tendered his resignation. The chairman of the Securities & Exchange Board of India said officials from the markets regulator started arriving at Satyam Thursday to begin their probe, The Wall Street Journal reported.

Factories in China and India joined much of Europe in slashing output and jobs at a record pace in December, another sign the biggest emerging markets were wilting under the recession gripping industrialized nations, Reuters reported. Economists and policymakers had seen China, Russia, India and Brazil, with their vast markets and rising wealth, as the engines of growth that could save the world from recession. Those hopes are fading fast and forecasts are getting gloomier.

The Financial Times reported that, as a symbol of the extraordinary boom of the past decade, the rise of the big emerging economies rivalled the soaring US housing market. China led the way, followed at a slower pace by the likes of India and Brazil. Though they tried to insulate themselves against the boom-bust cycle by building up foreign exchange reserves, no amount of inoculation could render them completely immune to the virulence of the financial contagion that swept the world in September and October.

The demand for gold in India reached an all-time high in the third quarter of 2008, reported Channel NewsAsia. With uncertainty in the financial markets, people in India have started relying on gold as a safe investment option. According to the World Gold Council of India, US$6.1 billion worth of gold was sold in the third quarter of 2008 in India, a jump of 66 percent compared to last year. The global demand for gold leapt by 18 per cent in the third quarter, boosted by sales in India.