Q: With budget proposals having been introduced last month do you think that it will help to revive the sluggish capital market in India?

- R K Chaturvedi Dubai

A: The capital market has been sluggish for the past few weeks on account of adverse global factors which have also depressed stocks listed on overseas exchanges. Foreign institutional investors are happy that the Finance Minister has continued with his policies of macro stability. He has not only stuck to the 3.9 per cent of GDP as fiscal deficit for the year 2015-16 but also emphasised his commitment to have a fiscal deficit of 3.5 per cent of GDP for the financial year 2016-17. This has enthused investors which resulted in the Indian stock markets going up on March 1-2.. The investors were also happy that the period of one year for determining long-term capital gains has not been changed to three years. This expectation had weakened the market in the days prior to February 29 2016.The fact that no change has been made has been widely welcomed. Further recapitalisation of banks to the extent of Rs25000 crore with a promise to give more funds if necessary has also been well received. The future course of the capital market will undoubtedly revert to global issues and the market will perform in sync with the trends in other stock exchanges. Indian corporate results which will be announced from May this year will also have a bearing on the behavior of Indian stock markets.

Q: The Indian Prime Minister on his last visit to the UK had announced the launching of Masala Bonds. Has this been done? Many NRIs would be interested in investing in these bonds.

- B C Prabhu Doha

A: India and Britain will shortly enter into a collaborative agreement at the G20 Finance Ministers' meeting in Shanghai. They will consider the best mechanism to leverage foreign and private investment in the National Infrastructure Investment Fund. This fund will have a corpus of around Rs40000 crore. Once the fund is set up it will enable NRIs and British nationals to invest in these bonds. It is also proposed to issue Railway Bonds which will provide long term funds for capital investment in Indian Railways. Funds will be raised in the UK and will be utilised for manufacturing rolling stock in India.This will also give a boost to the Make in India campaign. Both the Masala Bonds and Railway Bonds will derive full benefits from the deep and liquid security market in Britain.

Q: I have purchased a flat in Mumbai.The builder has altered the layout plan without obtaining my permission. He claims that he has obtained the relevant permissions. He is also demanding a substantial amount for allotting a parking space. Some of the promised amenities are not provided. Do I have any legal recourse against the builder?

- P R Khan Doha

A: You alongwith the other aggrieved buyers may approach the Maharashtra State Consumer Commission by filing a complaint against the builder and the BMC. It has recently been held that the commission is entitled to entertain a complaint filed by the Association of Flat Owners. However the complaint should be filed within two years from the date of taking possession; otherwise it may not be entertained. The commission has in other cases held that disclosures made in the brochure and other promotional materials issued by the builder are important and binding on the builder as they induce prospective buyers to book the flats. The builder may be asked to pay compensation and legal costs if it is proved that the builder is guilty of unfair trade practice and deficiency in service.

Q: Whenever I am in India I have to use the Indian Railways. Is there any improvement in the functioning? I have read in the press that some action is being taken in this regard.

- T R Doraiswamy Muscat

A: The Indian Railways is sought to be improved by installing 17000 bio-vacuum toilets in trains. More CCTV cameras and help lines are being installed. It has also been announced that tickets will be sold through handheld terminals and foreign debit and credit cards can be used while booking tickets which will be bar coded. More than 1700 automatic ticket vending machines will be available at all major railway stations. About 400 additional railway stations will be provided with WiFi.

The writer is a practicing lawyer specialising in tax and exchange management laws of India.