"On Friday, India’s cabinet approved the creation of an independent regulator for the coal industry and announced that the Coal Regulatory Authority Bill 2013 will now be put before Parliament.
So far, all as expected. So why have shares in Coal India jumped over 7 per cent?
The proposed regulatory body would set out the methodologies to be used in setting prices, rather than determining them directly. And its other responsibilities would include testing the quality of coal, as well as settling disputes in the industry. But it’s not revolutionary: the new body will still leave price setting powers with Coal India. And in any case, purchasers usually test the quality of the coal they are buying."
'via Blog this'
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