Chandigarh, March 7
Punjab Chief Minister Parkash Singh Badal today urged Prime Minister Manmohan Singh and Union Finance Minister Pranab Mukherjee to immediately reintroduce optional exemption to branded goods.

A deputation of hosiery and textile Industry led by Punjab Small Scale Industry Development Board Inderjit Singh Pardhan called on the Chief Minister here seeking relief in terms of reintroduction of optional exemption on all products and textile industry cleared under a brand name. The Union Budget 2011-12 has withdrawn exemption to all goods bearing a brand name or sold under a brand name.

In two separate letters to the Prime Minister and Union Finance Minister, Badal pointed out that the main raw materials of garment industry were yarn and fabrics and pointed out there was an optional excise duty on these both products. He pointed out that all the manufacturers of yarn and fabrics were not registered with central excise department and had not opted for excise duty scheme.

The CM said the new levy would result in increase in cost of branded garments and made up textiles by more than 10 per cent. He said the industry would be forced to increase its prices making it non-competitive.

He apprised the PM and the FM that the industry was already facing threat from garments imported from China, Bangladesh and Sri Lanka.

New Delhi, March 7
Precious metal prices continued to rise on Monday and touched new highs. Gold prices surged by Rs 200 to Rs 21,420 per 10 grams on rising seasonal demand, silver rose by Rs 1,250 to Rs 54,450 per kg on heavy buying by stockists and industrial units, amid firm global cues.

Trading sentiments for the yellow metal turned bullish on heavy buying support, following turmoil in Libya, surging crude oil prices and shifting of funds from weak stock markets to bullion on the domestic front. Globally, gold gained 0.5 per cent to $1,437.85 and silver increased 2.3 per cent to $36.40 an ounce, the highest level since February 1980. Traders said firm trends at futures market also influenced the trading sentiment to some extent.

Both the precious metals had moved closer to record price levels. Investors would be well-served advised by enlarging their positions to protect their wealth, they said. On the domestic front, gold of 99.9 and 99.5 per cent purity surged by Rs 200 each to set their new peaks of Rs 21,420 and Rs 21,300 per 10 grams, respectively.

Silver ready zoomed up by Rs 1,250 to Rs 54,450 per kg and silver week-based delivery sky-rocketed by Rs 2,120 to set a new peak of Rs. 54,420 per kg on speculative buying support. Silver coins also spurted by Rs 2,900 to their record levels of Rs 58,700 for buying and Rs 59,200 for selling of 100 pieces. Sovereign, too rose by Rs 100 to Rs 17,500 per piece of eight grams. — Agencies

Mumbai, March 7
Shares of Reliance Communications (RCom) today plummeted by nearly 20 per cent, hitting a record low level on the BSE, after rating firm ICRA placed the company’s long-term fund and non-fund based capitals under watch with negative implications. In a sharp reaction to the move, shares of the Anil Ambani Group firm tumbled by 19.98 per cent hitting a lifetime low of Rs 74.65 on the Bombay Stock Exchange (BSE).

However, the stock managed to trim much of its initial losses and the ended the day lower by 3.48 per cent at Rs 90.05. On the National Stock Exchange as well, edgy investors booked-profits sending the shares of RCom down by 3.81 per cent to close at Rs 89.70.

In terms of volume, over 1 crore shares of the company were traded on the two bourses. ICRA has placed the LAA+ long-term rating assigned to the Rs 5,000-crore non-convertible debenture programme and Rs 28,116 crore long-term fund based/non-fund based limits of RCom under watch with negative implications. Meanwhile, the BSE benchmark Sensex ended at 18,222.67, down 263.78 points. — PTI

Mumbai, March 7
The Reserve Bank of India (RBI) today announced setting up of a working group to examine issues pertaining to regulation of the NBFCs (Non-banking Finance Companies) sector, including their governance and supervision.

The Group to be headed by former Deputy Governor Usha Thorat, who is presently Director of Centre for Advanced Financial Research and Learning (CAFRAL), will focus on the definition and classification of NBFCs, addressing regulatory gaps and regulatory arbitrage.

It has also been asked to focus on maintaining standards of governance in the sector and appropriate approach to NBFC supervision, the RBI said in a statement.

“The NBFC sector in India has undergone a significant transformation in the past few years and has come to be recognised as a systemically important element of the financial system,” it said.

The recent global financial crisis also highlighted the regulatory imperatives concerning the non-banking financial sector and the risks arising from regulatory gaps, arbitrage and systemic inter-connectedness.

"A need was, therefore, felt to reflect on the broad principles that underpin the regulatory architecture for NBFCs, keeping in view the economic role and heterogeneity of this sector and the recent international experience," the apex bank said.

The scope of examination by the Group will, however, be within the current legislative framework, it added. — PTI

Mumbai, March 7
Dynamix Balwas (DB) Realty today said that it had accepted the resignation of its MD and Director of the company Shahid Balwa with effect from February 9. “The Board of Directors of the company on March 5, 2011 has noted and accepted the resignation of Shahid U Balwa, as Managing Director and also as director of the company in view of his preoccupations relating to certain investigations as per his letter of the same date,” DB Realty said in a filing to the Bombay Stock Exchange.

The CBI had arrested Shahid Usman Balwa in connection with the 2G Spectrum allocation scam on February 8. “The company continues its business in the normal course under Managing Director Vinod K Goenka with the guidance of the board,” the filing added.

DB Realty added that it has also accepted the resignation of its another Director Chandan Bhattacharya with effect from February 18. Reacting to the announcement, shares of real-estate company DB Realty declined 15 per cent to a record low of Rs 100 a share on the BSE.

New Delhi, March 7
Auto major Mahindra & Mahindra today said production at its Nashik plant has been resumed after a day's strike on Sunday by workers demanding higher wages.

“The workmen at the Nashik plant of the automotive sector of the company had resorted to a one day illegal tool down strike on Sunday," the company said.

The workers were demanding an increase in wages for a section of one-third of the workmen, it added. “Production in all shops of the plant is back to normal from March 7, 2011,” it said.

While it did not elaborate on the production losses, M&M said, "The management is confident that the loss of production will be made good soon. The company does not expect any material impact in the short term on sales volume." The company said the management had "proactively offered to increase ad hoc allowance of all entry level workmen at Nashik Plant".

The company's management and the union had entered into a long-term settlement in 2009 and the next wage revision for the workmen is due in February 2013.

Declaring the strike "illegal", the company said it was launched without giving any advance notice "in continuance of the hunger protest which has been initiated from March 1, 2011".

The Nashik plant produces vehicles, including the flagship SUV Scorpio, Xylo and sedan Logan. — PTI

Athens/London, March 7
Moody’s slashed Greece’s credit rating three notches on Monday, raising the spectre that the distressed euro zone sovereign may be forced to restructure its debt, perhaps even before 2013. The move increased pressure on European leaders to ease repayment terms on bailout loans to Greece, just as Germany and its allies appear to have turned their backs on radical steps to help Athens reduce its debt through bond purchases or buy-backs.

Moody's Investors Service downgraded Greek debt to B1 from Ba1 and said it may cut further, citing significant risks to the government's fiscal consolidation programme from a revenue shortfall and difficulties in reforming healthcare and state-owned companies.

"The sheer magnitude of the task becomes ever more apparent," Sarah Carlson, Moody's lead analyst on Greece, said.

The downgrade sent a ripple of concern around credit markets, raising the price of insuring Greek, Portuguese and Spanish debt against default and the risk premium on holding Greek bonds rather than benchmark German bunds.

Greece signed a 110 billion euros ($154 billion) rescue package with the EU and IMF last May to avoid default in exchange for draconian austerity measures which it has begun to implement. But many see the repayment terms as too onerous. — Reuters