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Farm Loan Waiver Scheme
Bank Account
Spice may sell stake
ONGC gets nod for stake sale
in gas block
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S Kumars buys Scottish fashion chain
Mallya keen on JV with EADS arm
RBI for multi-purpose credit cards
Tax refunds on cement exports revoked
Mukesh Ambani fined by BMC
Moody's downgrades Tata Motors’ rating
Jindal is Assocham chief
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Exchange-traded currency futures in 3 months: SEBI
New Delhi, June 3 SEBI will next work on interest rate futures and creating exchange for small and medium enterprises, its chairman C B Bhave said at the annual general meeting of Assocham here. "Today, regulators have to see that our markets are as complete as it could be...in the next three months, you will see the start of exchange traded currency futures in this country," he said. To a question from the floor whether Indian markets are prepared for currency futures, Bhave said, "I think our market is ready for it." He said currency futures are already allowed in Over-The- Counter (OTC) market. "It is not that we are not exposed to it at all. The attempt of SEBI and the central bank is to create exchange-traded currency futures as they are far easier to be regulated and far easier to contain risks than OTC market," he added. According to an RBI-SEBI panel's report on currency futures, exchange-traded futures as compared to OTC forwards serve the same economic purpose, yet differ in fundamental ways. An individual entering into a forward contract agrees to transact at a forward price on a future date. On the maturity date, the obligation of the individual equals the forward price at which the contract was executed. Except on the maturity date, no money changes hands. On the other hand, in the case of an exchange-traded futures contract, mark to market obligations are settled on a daily basis. Since the profits or losses in the futures market are collected and paid on a daily basis, the scope of building up of mark to market losses in the books of various participants gets limited, the report said. The panel had suggested introduction of currency futures markets, initially for dollar-rupee contract. It also proposed that initially FIIs and NRIs would not be permitted to participate in currency futures market and the minimum size of the currency futures contract at the introduction would be $1,000. Bhave said the SEBI will next start working on interest rate derivatives. He said a technical committee of RBI and SEBI will work on suggestions received from various quarters on RBI paper on interest rates futures. Only after that, some idea on time-table for its introduction could be made, he said. Bhave also said the regulator would also work on setting up exchange for small and medium enterprises. "We also have to see that we give access to markets...There are variety of issuers in the country. It cannot be that there are only top 500 companies in this country. Therefore, next thing that is engaging our mind is creation of exchange for small and medium enterprises." In a discussion paper, SEBI had proposed creation of bourse for SMEs and suggested fixing of investment limit of Rs 5 lakh for these IPOs. — PTI
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‘No change in policy stance on P-Notes’
SEBI on Tuesday ruled out relaxing curbs imposed last year on participatory notes (P-Notes), a derivative tool that enables unregistered foreign investors to invest in Indian stock markets.
"No. SEBI has already notified the regulations which arose out of October decisions," SEBI chairman
C.B. Bhave told reporters when asked if there was any proposal to amend the regulations on
PNs. In October 2007, SEBI had imposed restrictions on Foreign Institutional Investors
(FIIs) to issue participatory notes. FIIs and their sub-accounts were asked not to issue fresh PNs against underlying derivatives and wind up their existing position in 18 months during which the market regulator will review the situation from time to time.— PTI |
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Banks can’t claim loans waived before announcement
Ruchika M. Khanna Tribune News Service
Chandigarh, June 3 The apex bank has also clarified that banks can also not recover these loans from the farmers now. With these directions, there is likely to be a downward revision in the cost of the scheme. Initially, in the Budget, it was estimated that the cost of the scheme will be about Rs 60,000 crore to the central government, which was later revised to be in the order of about Rs 71,680 crore. Under this scheme, the number of small and marginal farmers who will be eligible for a complete debt waiver is 36.90 million, while the number of other farmers (owning over two hectares) eligible for the One Time Settlement (OTS) scheme is estimated at about 5.97 million. It has also been decided that for farmers in dry and unirrigated areas, where the land holdings are over two hectares, the farmers will be granted relief through OTS by a 25 per cent waiver of loan, or a waiver of Rs 20,000, whichever is higher. All branches of public sector banks, scheduled commercial banks, Regional Rural Banks and cooperative lending institutions have now been given instructions for the implementation of the scheme by the end of this month. These banks have now been given 30 days to implement the scheme. The banks have been asked to finalise two lists of farmers — those eligible for a complete waiver and those for an OTS. These lists, when finalised, will be put up on the notice board of each branch of the lending institution. Farmers can simply walk up to the bank branch and look at the list, to know the amount of debt waiver or the debt relief. The banks will later issue a certificate of debt amount waived off to the small and marginal farmer and take an acknowledgement from him. For the farmers eligible for OTS, the farmer will have to pay the balance 75 per cent in three instalments on or before June 30, 2009. Till June 30, 2009, no interest will be charged on the outstanding amount of the other farmer. Once the relief package is rolled out, the central government will order an audit. Based on the audit, claims of the bank will be reimbursed by the Central government over a period of three years. While Rs 40,000 crore will be provided to the banks this fiscal, the remaining amount will be provided in the subsequent two years.
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SBI revises foreign currency deposit rates
Mumbai, June 3 FCNR (B) deposits in US Dollar, having maturity one year to less than two years, will now attract an interest rate of 2.41 per cent (2.33 per cent) while rate with maturity 2-3 years has been revised to 2.71 per cent (2.43 per cent), SBI said in a press release issued here. For deposits having a maturity of five years, the rate has been revised to 3.47 per cent (3.11 per cent), the bank said. For euro deposits, which will mature in 1-2 year period, the revised rate stood at 4.34 per cent (4.21 per cent) while for 2-3 years and 3-4 years, the revised rates are 4.23 per cent (3.78 per cent) and 4.11 per cent (3.68 per cent) respectively, the bank said. Similarly, for deposits in pound, the bank has revised the rate to 5.40 per cent (5.06 per cent), for a tenure 1-2 years while for 2-3 years and 3-4 years, rates have been revised to 5.26 per cent (4.65 per cent) and 5.21 per cent (4.62 per cent) respectively, the bank said. For NRE deposits having a maturity 1-2 years the bank has revised the deposits to 3.16 per cent (3.08 per cent) while for 2-3 years and 3-5 years, the rates have been revised to 3.46 per cent(3.18 per cent) and 3.81 per cent (3.45 per cent) respectively, the bank said. HSBC net up 41 pc
Foreign lender Hongkong Shanghai Banking Corporation (HSBC) India has reported a 41 per cent jump in its net profit at Rs 1,192 crore, against Rs 846 crore in the previous fiscal. The total income for the year rose by 50 per cent to Rs 7,096 crore, compared to Rs 4,720 crore in the year-ago period, a press release issued here today said. Syndicate Bank
Syndicate Bank has revised the interest rates on Non-Residential External (NRE) term deposits and FCNR(B) deposits upward with effect from June 1. Interest rates on NRE deposits for a period of one year to less than two years have been revised to 3.16 per cent, two years to less than three years to 3.46 per cent and for three to five years to 3.81 per cent, a bank release said. In case of FCNR(B) deposits, the interest rate for USD desposits for tenure of one year to less than two years is 2.41 per cent, for two years to to less then three years is 2.71 per cent, for three years to less than four years is 3.06 per cent, for four years to less than five years is 3.30 per cent and for five years it is 3.47 per cent.— PTI |
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Spice may sell stake
New Delhi, June 3 Spice Communications chairman B K Modi told reporters here today at a special shareholders meeting that the company was willing to consider a stake sale. Besides Etisalat, reports suggest that the company has also been in talks with AT&T. "Everybody is planning to come to India. But the issue is what sort of shareholding will be there," he said. India permits up to 74 per cent foreign investment in telecom sector. Foreign firms are eyeing stakes in Indian telecom operators, with the rapidly expanding market and low teledensity holding out attractions for them. Reports suggested there are two options which the company has been considering. These include a complete exit or a dilution of stake by the group and partner Telekom Malaysia (TM), by bringing in a third major investor. This is being done keeping in mind the company’s future, especially as it expands in the other circles. Spice, incidentally, was refused a pan-India telecom licence recently. Reports said that valuation would hold the key for the talks to progress. Spice has just 4.2 million of India’s over-300 million mobile users and is 39.2 per cent owned by Malaysia’s state-controlled Telekom Malaysia (TM). The BK Modi family has a 40.8 per cent stake through Modi Wellvest, while the remaining 20 per cent is held by the public and financial institutions.
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ONGC gets nod for stake sale in gas block
New Delhi, June 3 The Directorate General of Hydrocarbons (DGH) has concurred to ONGC proposal to give 15 per cent stake to Petrobras International Braspetro BV and 10 per cent to Hydro Oil and Energy India BV in block KG-DWN-98/2, company officials said. Block KG-DWN-98/2 sits next to Reliance Industries' prolific KG-DWN-98/3 or KG-D6 block, off the east coast. ONGC currently holds 90 per cent interest in KG-DWN-98/2 while the remaining 10 per cent is with Cairn Energy India Ltd. The block that was awarded to CEIL in the first round of bidding under New Exploration Licensing Policy (NELP) in 1999 holds 2-3 trillion cubic feet of gas reserves. CEIL sold 90 per cent of the stake in the block to ONGC in 2004. ONGC is giving stakes to Petrobras and StatoilHydro to get their world renowned expertise in deep sea exploration. "We have found gas in the ultra deep sea in the block. India doesn't have technology to exploit that so foreign partners are being roped in," the official said. After the stake sale, ONGC would be left with 65 per cent interest in the block and would continue to be the operator. — PTI
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S Kumars buys Scottish fashion chain
Glasgow, June 3 Around 1,000 workers were celebrating after an unnamed overseas buyer was reported early May to have purchased Internacionale, which had been put up for sale after its parent company collapsed earlier this year. The future of the chain became uncertain when the Glasgow-based parent company Ossian Retail Group sold its £25 million debt to an investment company, Agilio. There were rumours the group would be broken up, threatening the livelihood of workers at Internacionale's 105 stores in Britain, including nearly 30 in Scotland. Although the buyer was not named there was some speculation that it was from India. Now the Glasgow-based Herald newspaper has revealed the buyer as S Kumars Nationwide Limited (SKNL) — a household brand in India. However, the sale price is not yet known. The paper quoted a source as saying May 28 SKNL kept its identity a secret because of "regulatory reasons" but that it would "become public knowledge in a matter of weeks." It said the regulatory reason may be connected to the May 5 demerger of SKNL's retail business into a new entity called Brandhouse Retails Ltd. SKNL, which has ambitious overseas acquisition plans, already retails international luxury brands such as Alfred Dunhill and Escada in India and owns Reid & Taylor and Tamariind.
— IANS |
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Mallya keen on JV with EADS arm
Berlin, June 3 SOCATA, the business jetliner arm of EADS, made public its project to relaunch its single piston engine line of product and is on the look out for a partner involving an entity willing to resume production at a much lower cost than the one in France. "This is the very point that was approached in initial talks with Mallya in the course of current discussions between him and Airbus (subsidiary of EADS)," SOCATA vice-president (sales and marketing) Nicolas Chabbert said on the sidelines of the Berlin Air Show.— PTI
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RBI for multi-purpose credit cards
Mumbai, June 3 "RBI's Internal Working Group agrees with the recommendation of multi-purpose 'swarojgar credit cards'. Banks should popularize Swarojgar Credit Cards for the non- farm unorganized sector," the group formed to review the proposals of the National Commission for Enterprises in the Unorganised Sector has said. The swarojgar credit would help give access to credit for every purpose without having to undergo the process of taking seperate loans, an RBI official said. The RBI working group has said endeavours to set up credit information companies should also be expedited as availability of credit record is a significant enabling factor in flow of credit to the unorganised sector.
— PTI |
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Tax refunds on cement exports revoked
New Delhi, June 3 The Directorate General of Foreign Trade revoked yesterday's notification which had restored the Duty Entitlement Pass Book Scheme (refund of local taxes) on cement exports. "The amendments stand withdrawn with effect from June 2 itself," it said. The government had eased the 46-day old ban on cement exports on May 27 after manufacturers agreed to reduce domestic prices between Rs 3 and Rs 7.50 per bag of 50 kg following a meeting with commerce and industry minister Kamal Nath. While Nath had stated that prices had increased marginally in the past one year, finance minister P Chidambaram has insisted that there is a scope for significant reduction in cement prices. Prices of cement declined 0.6 per cent in the week ended May 17, although overall inflation touched a 45-month high of 8.1 per cent.
— PTI |
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Mukesh Ambani fined by BMC
Mumbai, June 3 A BMC official told UNI that work on the under-construction helipad in Sea Wind building, which is half ready, has been carried out without permission and the fine has been levied on the basis of the work carried out so far. Since the work did not have the requisite permission, it would be stopped, he said adding permission can be given only after a detailed plan is submitted to the corporation and cleared by the relevant authorities. Municipal commissioner Jairaj Phatak said the fine has been imposed by the authorities of the Building Proposal department of the corporation as per law. Since the start of the construction of the helipad, there have been protests and opposition from residents of the neighbouring buildings about pollution and disturbance.
— UNI
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Moody's downgrades Tata Motors’ rating
New Delhi, June 3 The rating has been downgraded to Ba2 with a negative outlook by Moody's Investor Services, completing the rating review that began in January. Earlier, the agency had a Ba1 rating on the company. According to Moody's, the non-investment grade Ba2 implies bonds with speculative fundamentals, with moderate security of future payments. On Monday, Tata Motors had announced the completion of JLR buyout from US car maker Ford.— PTI
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Gold up by Rs 240 Delhi-Dehra Dun flight Kingfisher ups fuel surcharge ABB bags Rs 295-cr orders Escorts insurance offer UBI in pact for online trading
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New Delhi, June 3
