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As
per SEBIs directive, the special trading window will be
kept open only from 9.55 am to 10.30 am and transactions
done through this separate window will constitute a 'block
deal'.
Rupee
recovers lost ground
Mumbai: With the easing of month-end demand, the
rupee continued its recovery against the dollar closing
at 43.86/87, higher than Thursday's level of 44.03.
Forwards
market: The 12-month premium closed at 0.58 per cent
(0.5 per cent), while the 6-month was unchanged at 0.45
per cent.
G-Secs:
The 7.37 per cent 9-year 2014 paper closed at Rs102.42
(6.99 per cent), higher than the earlier close of Rs102.17
(7.02 per cent YTM). The 10.25 per cent 16-year-2021
paper closed at Rs126.06 (7.42 per cent YTM), up from
the previous level of Rs125.65 (7.45 per cent YTM). The
7.38 per cent 10-year benchmark closed at Rs102.35 (7.05
per cent YTM) against Thursday's yield of 7.08 per cent
YTM.
Call
rates: The inter bank rates were at 4.05-5 per cent
(4.9-5 per cent).
Reverse
repo: In the three-day auction, the RBI received and
accepted 45 bids amounting to Rs30,885 crore.
CBLO
market: 251 trades for Rs10,608.25 crore, were realised.
Pension
fund regulator proposes restrictions on fund investments
New Delhi: In its draft regulation on registration
of intermediaries released on Friday, the interim Pension
Fund Regulatory and Development Authority (PFRDA) has
proposed restrictions on investments of pension accumulations
handled by pension fund managers (PFMs). The PFRDA has
said that PFMs would be allowed to invest only in a handful
of instruments, all of them domestic.
These
include equities of companies listed in India and regulated
by SEBI, publicly traded securities issued by the central
government, traded Indian corporate debt instruments that
have been rated as investment grade by at least two rating
agencies and loans of Indian micro-finance institutions
guaranteed by the RBI.
The permitted equities would have to be part of an index
approved by the PFRDA.
The
draft regulations has been issued to conform to the wishes
of the parliamentary standing committee on finance that
had suggested that the broad contours of the regulations
governing the implementation of the 'new pension system'
should be first put in the public domain prior to the
enactment of the PFRDA Bill.
1 September 2005
Finance
ministry issues revised guidelines for companies issuing
GDRs
New
Delhi: As part of the revised guidelines on GDRs/ADRs/FCCBs
announced by the Finance Ministry here today, it is now
mandatory for unlisted companies that have raised funds
from the overseas markets through the Global Domestic
Receipts (GDRs) or Foreign Currency Convertible Bonds
(FCCBs) route to list on the domestic stock exchanges
within a stipulated time frame.
The
listing would have to be done within three years of the
issuance of GDRs/FCCBs or on making profit in any financial
year starting from 2005-06, whichever is earlier.
The
amendment to the existing guidelines on GDRs/ADRs/FCCBs
aligns them with the Securities and Exchange Board of
India's (SEBI) guidelines on domestic capital issues.
For
unlisted companies that have not yet accessed the GDR/FCCB
route for raising funds overseas, the Finance Ministry
has said that such companies would require prior or simultaneous
listing in the domestic market while seeking to issue
FCCBs/GDRs.
With
regard to listed companies, the amended guidelines now
stipulate that an Indian company that is not eligible
to raise funds from the domestic capital market, including
those restrained by SEBI, would not be eligible to issue
GDR/FCCBs.
The
Finance Ministry has also said that the Reserve Bank of
India (RBI) regulations regarding voting rights in the
case of banking companies would continue to be applicable
to all shareholders exercising voting rights.
Further,
the guidelines also stipulate that the Overseas Corporate
Bodies that are not eligible to invest in India through
the portfolio route and entities prohibited to buy, sell
or deal in securities by SEBI would also not be eligible
to subscribe to the FCCBs/GDRs issued by Indian listed
companies.
As
regards pricing of GDRs/FCCBs, the revised guidelines
stipulate that the issues should be made at a price not
less than the higher of the following two averages - (i)
The average of the weekly high and low of the closing
prices of the related shares quoted on the stock exchange
during the six months preceding the relevant date; (ii)
The average of the weekly high and low of the closing
prices of the related shares quoted on a stock exchange
during the two weeks preceding the relevant date.
The
`relevant date' would be the date 30 days prior to the
date on which the meeting of the general body of shareholders
is held, in terms of section 81 (IA) of the Companies
Act, 1956, for considering the proposed issue.
SEBI
clears corporatisation of the Hyderabad Stock Exchange
Hyderabad: The Securities and Exchange Board of
India has approved the scheme for corporatisation and
de-mutualisation of the Hyderabad Stock Exchange Ltd (HSEL).
The
scheme, inter alia, provides for the re-registration of
HSEL as a company limited by shares, segregation of ownership
and management from the trading rights of the members,
restriction on voting rights of shareholders who are also
trading members, composition of the Governing Board etc.
SEBI,
having considered the scheme and on being satisfied that
it would be in the interest of the trade and also in the
public interest okayed it, according to the HSEL
Rupee
slides to 8-month low
Mumbai: The rupee fell against the dollar for the
third day in a row touching a new low seen last in December
2004, closing at 44.13/14, against Tuesday's close of
44.02.
Forwards
market: The 12-month premium closed at 0.5 per cent
(0.63 per cent) and the 6-month premium closed at 0.45
per cent (0.66 per cent).
G-Secs:
The 7.37 per cent 9-year 2014 paper ended trade
at Rs102.0675 (7.04 per cent), lower than the earlier
close of Rs102.08 (7.02 per cent YTM). The 10.25 per
cent 16-year-2021 paper closed at Rs125.46 (7.4705
per cent YTM), lower from Tuesday's close of Rs125.50
(7.46 per cent YTM). The 7.38 paper 10-year 2015 benchmark
paper was dealt at 7.09 per cent levels (7.08 per cent
YTM).
Call
rates: The inter bank rates opened at 5 per cent and
closed at 4.9-5 per cent (5-5.05 per cent).
Reverse
repo: In the one-day auction, the RBI received and
accepted 40 bids amounting to Rs25,780 crore.
CBLO
market: 245 trades for Rs10,979.75 crore in the rate
range of 4.78-5 per cent, were realised.
RBI:
T-bills auction fully subscribed
Mumbai: The auctions of the 91-day and 364-day
Treasury bills were fully subscribed, according to a press
release from Reserve Bank of India. The notified amount
for the 91-day T-bills was Rs4,000 crore, out of which
Rs3,500 crore is MSS amount.
The
RBI received 77 competitive bids amounting to Rs10,663.17
crore. The cut-off price was Rs98.72. Of these, RBI accepted
27 bids.
The
partial allotment percentage was 32.16 from 18 bids. The
weighted average price was Rs 98.73.
The
central bank also received and accepted two non-competitive
bids amounting to Rs2,863 crore.
The
notified amount for the 364-day T-bills was Rs2,000 crore,
out of which Rs1,000 crore is MSS amount. The RBI received
65 competitive bids amounting to Rs4,141 crore.
The
cut-off price was Rs94.69. Of these, RBI accepted
20 bids.
30 August 2005
Sebi
puts C&D schemes of bourses on the fast track
Mumbai: After completing the corporatisation and
demutualisation (C&D) process of the country's premier
bourse, the Bombay Stock Exchange (BSE) Ltd, market regulator
SEBI has now put the C&D process of other stock exchanges
(SEs) on the fast track, clearing the C&D schemes
of other ten stock exchanges. The process is expected
to gain further momentum next week with the C&D schemes
of the other remaining bourses being cleared.
On
Monday, Sebi issued orders clearing the C&D schemes
of the Delhi Stock Exchange Association Ltd (DSE), Uttar
Pradesh Stock Exchange (UPSE) Ltd, Hyderabad Stock Exchange
Ltd (HSE), Madras Stock Exchange (MSE) Ltd, Madhya Pradesh
Stock Exchange (MPSE), Pune Stock Exchange Ltd (PSE),
Gauhati Stock Exchange Ltd (GSE), Calcutta Stock Exchange
Association Ltd (CSE), Cochin Stock Exchange Ltd (CoSE)
and Bangalore Stock Exchange Ltd (BgSE).
As
part of the process, these exchanges will have to fulfill
two main conditions; providing 25 per cent representation
to the brokers/trading members on the governing board
of the exchanges and devolving 51 per cent of the ownership
with the public, and also those entities who are not the
trading members of the exchange.
The
regulator is expected to clear the C&D schemes of
Ahmedabad, Bhubaneshwar, Coimbatore, Jaipur, Ludhiana,
Magadh, Saurashtra-Kutch and Vadodara SEs next week. The
clearance of the C&D scheme for the Mangalore Stock
Exchange (MgSE) is expected to take a while as its case
is pending in the Supreme Court, Sebi officials said.
The
exchanges which were set up as companies limited by guarantee
will have to convert/re-register themselves to companies
limited by shares and demutualise.
Rupee
down 20 paise- securities bearish
Mumbai: The rupee crashed to an eight-and-a-half
month low against the greenback as rising prices of global
crude sparked heavy dollar buying. The domestic currency
ended the trade at 43.89, down by about 20 paise from
its previous closing of 43.6850/6950.
Forwards
market: The 12-month premia ended at 0.6 per cent
(0.67 per cent) and the 6-month closed at 0.51 per cent
(0.59 per cent).
G-Secs:
The 7.37-9 year-2014 paper closed at Rs102.12
(7.04 per cent YTM), down from Friday's Rs102.16 (7.03
per cent YTM). The 10.25-16 year-2021 paper closed
at Rs125.50 (7.47 per cent YTM), lower than Friday's Rs125.56
(7.46 per cent YTM). The 7.38-10 year 2015 benchmark
paper was dealt at Rs102.10 (7.08 per cent YTM).
Call
rates: The inter bank rates remained unchanged at
4.90-5.05 per cent.
Reverse
repo: In the one-day auction, the RBI received and
accepted 35 bids amounting to Rs22,255 crore.
CBLO
market: 214 trades for Rs10,673.25 crore in the rate
range of 4.75-5 per cent, were realised.
RBI
suggests rationalizing of import tariffs at 10 per cent
Mumbai: According to RBI's annual report, released
on Monday, the country's external environment including
foreign exchange reserves allows for rationalisation of
tariffs with respect to imports and has suggested a single
uniform tariff rate of 10 per cent for all imports.
According
to the apex bank, the move towards a uniform rate will
help simplify customs procedures in line with the best
global practices and improve competition as well as exports.
The
central bank's report says that the India's merchandise
exports have risen at a rate of over 20 per cent a year
in dollar terms during 2002-05. However, the country's
current account balance has moved from a surplus of 1.7
per cent of GDP in 2003-04 to a deficit of 0.9 per cent
in 2004-05, mainly due to a substantial rise in imports.
As
per the report, since the capital flows into the country
were in excess of the current account deficit, the overall
balance of payments remained comfortable. The country's
foreign exchange reserves (excluding valuation effects)
increased by US$26.2 billion during 2004-05 which, according
to the central bank, can finance about 14 months of imports.
While
the exports, at $79.3 billion grew by 24.1 per cent, imports
at $107.1 billion grew by 37 per cent in 2004-05.
Oil
imports at $29.8 billion have shot up by 45.1 per cent
in 2004-05, mainly on account of the surge in international
crude oil prices in volume terms. However, in terms of
growth rate, oil imports slowed to 5.5 per cent in 2004-05
from 10.6 per cent in 2003-04. Non-oil imports excluding
gold and silver witnessed a substantial increase at 61.1
per cent during April-May 2005, led by imports of mainly
industrial units.
RBI's
domestic income falls - earns more globally
Mumbai:
The Reserve Bank of India (RBI) has earned more from
its foreign and less from domestic investments during
2004-2005.
Increase
in the level of foreign currency assets, hardening of
short-term interest rates in the US and lower market to
market depreciation on securities resulted in higher earnings
from foreign sources. RBI's earnings from foreign sources
increased to Rs16,979.47 crore (Rs9,103.50 crore).
Domestic
income fell to Rs2,048.81 crore (Rs5,220.20 crore) on
account of booking substantially higher depreciation in
the value of the rupee securities as the yields hardened
during the year, lower availment of Ways and Means Advances
(WMA) by Central and State Governments, investment of
Government of India surplus balances in rupee securities
from the Bank's portfolio and earmarking of certain securities
to cover the liabilities in provident fund, superannuation
fund and encashment of ordinary leave fund.
The
net interest income on rupee securities was negative on
account of higher depreciation during the year.
RBI's
gross income for the year 2004-05 was Rs19,028.28 crore,
against Rs14,323.70 crore in 2003-04, an increase of Rs4,704.58
crore or 32.8 per cent. However, net income fell to Rs12,215.27
crore (Rs13,166.14 crore).
Gross
income comprises Transfer to Contingency Reserve, which
increased to Rs6,125.92 crore (Rs969.47 crore), Asset
Development Reserve, which rose to Rs687.09 crore (Rs188.09
crore) and Surplus (profits) transferred to Government
remains unchanged at Rs5,400 crore.
Total
expenditure declined to Rs6,811.27 crore, (Rs7,762.14
crore), a fall of Rs950.87 crore or 12.3 per cent. Interest
payment decreased to Rs1,386.28 crore (Rs1,808.48 crore).
Other
liabilities include the internal reserves and provisions
of RBI and net credit balance in the RBI General Account.
These liabilities declined to Rs1,00,356.27 crore (Rs1,29,929.49
crore) mainly on account of decrease in levels of Currency
and Gold Revaluation Account (CGRA). The balance in the
CGRA fell to Rs26,906.21 crore (Rs62,283.04 crore), due
to increase in level of foreign currency assets during
2004-05 and appreciation of rupee against US dollar and
appreciation of dollar against other currencies.
Foreign
currency assets rose to Rs5,75,863.66 crore (Rs5,24,865.01
crore), due to net purchases of US dollars from market
and interest and discount received, net of revaluation
losses.
Investment
in Government securities increased to Rs68,476.48 crore
(Rs40,179.74 crore). Other assets declined to Rs14,403.57
crore (Rs14,459.77 crore).
These
comprise fixed assets, gold holdings in the banking department,
amounts spent on projects pending completion and staff
advances.
29 August 2005
Revised
IPO norms: TCS to seek Sebi exemption on dilution of shareholding
Mumbai:
The Tata Consultancy Services (TCS) is planning to
seek an exemption from the Securities and Exchange Board
of India (SEBI) from offering a 25 per cent shareholding
to the public, as mandated by the revised initial public
offer (IPO) norms.
Last year TCS had offloaded 15.16 per cent of its equity
to the public through an IPO, and now to meet the revised
Sebi norms, the company will have to divest an additional
9.84 per cent stake to the public within the next two
years.
In 2001, the Sebi had permitted software, telecommunication
and media companies to offer only 10 per cent of their
total equity stake to the public. The Tata group company
was listed on August 25 last year under Clause 19(b) of
Sebi regulations.
The regulator's order last week, Friday, revised the book-building
norms by removing the discretionary allotment for qualified
institutional buyers (QIBs), and made it mandatory for
firms to offload a minimum of 25 per cent to public shareholders.
Mutual funds and UTI held 1.31 per cent, banks and financial
institutions held 1.18 per cent, foreign institutional
investors held 6.11 per cent and others held 6.56 per
cent of the total public stake of 15.16 per cent. Others
include private corporate bodies, the Indian public, non-resident
Indians and overseas corporate bodies.
The initial lock-in period on diluting the promoters'
holding in TCS is over with the company's public float
being one year old now. The promoters can dilute as much
as 64.4 per cent now as there is a three-year lock-in
period on 20 per cent promoters' stake.
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