Mumbai, September 23
Market regulator SEBI today rejected MCX Stock Exchange's plea for starting trading in equities as also derivative trading in equity, interest rate and debt, saying giving the permission would not be in the interest of the market and public interest.

MCX Stock Exchange Limited (MCX-SX), part of the group running the country's largest commodity bourse MCX, had applied to deal in interest rate derivatives, equity, futures and options on equity and wholesale debt segments and all other segments permitted to BSE and NSE.

In an order issued today, the market regulator rejected the application dated April 7, 2010, where MCX-SX had also sought permission for starting an SME Exchange for small and medium enterprises.

SEBI, after an enquiry into the application, said that it was "not satisfied that it would be in the interest of trade and also in public interest to allow the application." MCX-SX is currently allowed to offer trade in currency futures only and recognition for the same was recently extended till September 15, 2011.

While giving the extension, SEBI had asked the exchange to comply with regulations related to shareholding of promoters and other entities for other segments.

Subsequently, Sebi heard MCX-SX on September 6 and written submissions were also made on September 16.

SEBI said that the matter did not relate to granting recognition as a stock exchange, as MCX-SX was already one, but that it was about grant of permission for various categories of securities traded on a full-fledged stock exchange. In the order by Sebi whole-time director K M Abraham, the regulator listed out five grounds for not granting approvals.

SEBI said MCX-SX had submitted that the two promoters did not share a common management, but it found the two entities operating under the common management led by Jignesh Shah.

The regulator said that the website of FTIL lists MCX as one of the group companies and Shah was designated as the Group CEO.

"One does not have to go farther, to see that Jignesh Shah is de facto, a ‘manager’ for both the promoter companies FTIL and MCX," SEBI said, adding that as per the Companies Act it is reasonable to conclude that the two promoters are under a common management. — PTI 

New Delhi, September 23
The government today reduced its gross borrowing programme by Rs 10,000 crore to Rs 4.47 lakh crore for the current fiscal, thanks mainly to a revenue windfall from sale of 3G telecom licences earlier this year.

The government has already raised over Rs 2.6 lakh crore this fiscal so far and would mop up another over Rs 20,000 crore this month.

As per the borrowing plan fixed by the Finance Ministry and RBI officials today, the government would raise another Rs 1.63 lakh crore in the second half of 2010-11.

Scaling down of the borrowing plan would leave the desired resources for the private sector.

"We are required to as per the programme given earlier to raise Rs 1.73 lakh crore (in the second half of FY'11).

Looking at the projected cash flows and current requirement, we think it is not required to raise the whole amount. The amount reduced is at present by Rs 10,000 crore to Rs 1.63 lakh crore," Finance Secretary Ashok Chawla told reporters here.

According to its earlier plan, the government had pegged its total market borrowings at Rs 4.57 lakh crore for this fiscal.

Earlier this year, the government earned over Rs one lakh crore from sale of 3G telecom and broadband licences, against the over Rs 35,000 crore it estimated to raise. Also, buoyant tax collection in the first five months of the current fiscal has helped its fund position.

Direct tax collection rose by 14 per cent to Rs 1.01 lakh crore while Indirect tax collection increased by 45 per cent to 1.24 lakh crore in April-August period. — PTI 

New Delhi, September 23
Amid demands from the textile ministry for freezing cotton exports for the next three months, Agriculture Minister Sharad Pawar today made it clear that no outright ban will imposed in the interest of farmers.

"Textile industry is making noise, but this is the golden opportunity for farmers to get some better price," Pawar told reporters here.

He said while the interest of the domestic industry needs to be protected, "I will not accept total ban." Senior ministers, including Finance Minister Pranab Mukherjee, Pawar, Commerce and Industry Minister Anand Sharma and Textiles Minister Dayanidhi Maran will meet next week to finalise the schedule for export registration. The cotton year starts from October and continues till September. Export registrations, which were to open on September 15, were put on hold till October.

While Commerce Secretary Rahul Khullar had announced that duty-free exports of 5.5 million bales would be allowed, the textile industry demanded that exports should not be allowed during the October-December period — the main season for the crop. — PTI

New Delhi, September 23
To strengthen its presence in the compact car segment, Hyundai Motor India today introduced its new hatchback, i10 at an introductory price of Rs 3.49 lakh-Rs 5.91 lakh (ex-showroom, Delhi).

The new car, Next Gen i10, which made its global debut here today will replace the existing i10 that was priced between Rs 3.48 lakh and Rs 5.58 lakh. It will be showcased at the upcoming Paris Motor Show, beginning October 2.

"Next Gen i10 reflects our big plans for the Indian market. I am confident that this will further strengthen our position in this segment," Hyundai Motor India Managing Director and CEO H W Park said.

The 'Next Gen i10' will be available in two petrol engine variants of 1.1 litre and 1.2 litre. The company claims that while the 1.1 litre car has a mileage of 19.81 km per litre, the 1.2 litre engine variant will give 20.36 km per litre. — PTI 

New Delhi, September 23
Mobile phone operators in the country have sought some more time to install equipment that can help monitor services on the popular BlackBerry handsets, the deadline for which expired yesterday.

While most operators sought more time, some until the weekend, Tata Teleservices was the only one to have sent a compliance letter to the government ahead of deadline.

The government, while giving BlackBerry manufacturer Research In Motion (RIM) time till October 31 to provide a solution for interception of its messenger service, had asked the mobile operators in the country to upgrade their system to facilitate the interception of the data being sent from the Canadian manufactured smart phone.

Telecom companies have also told the Centre that while they can monitor BlackBerry messenger (BBMS or chat), mobile operators did not have the facilities to track enterprise services — the corporate email facility offered by RIM.

The government has been told that while it can be deciphered precisely who is sending the communication to whom and also when it was sent. But, the mobile operators did not have the technology to decipher the encrypted email.

The mobile operators would be in a position to intercept services provided on BlackBerry only if RIM shares the encryption codes and keys with them.

The telecom department officials said the Centre will not terminate BlackBerry services for non-compliance by operators and will grant an extension.

The Canadian firm had already made available its services like BlackBerry internet, voice calls and short messaging to security agencies in India for monitoring. Access to enterprise email and BlackBerry messenger are the only outstanding issues between RIM and country’s security agencies.