US Federal Reserve cuts interest rates by 0.5%
Washington: The US Federal Reserve, in a bid to prevent the US economy from slipping into a recession has cut a key interest rate by another half percentage point on Wednesday.

"Consumer and business confidence has eroded further, exacerbated by rising energy costs that continue to drain consumer purchasing power and press on business profit margins," the Fed said in a statement.

The decision came after a two-day, closed-door meeting of the Fed's chief policy-making group, the Federal Open Market Committee. The panel includes Mr. Alan Greenspan, the Fed chairman, Fed governors and five of the 12 presidents of Federal Reserve banks.

The Fed said it was cutting its target for the federal funds rate -- the interest banks charge each other on overnight loans -- to 5.5 per cent from 6 per cent. The Fed's half-point decrease in the funds rate Wednesday was quickly followed by announcements Bank One and Bank of America that they were reducing their prime lending rate by a similar half point, from 9 per cent to 8.50 per cent, effective Thursday. Other commercial banks were expected to follow suit.
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Sebi tightens norms on ALBM, BLESS shares
Mumbai: The Securities and Exchange Board of India (Sebi) has toughened the risk management systems for the Automated Lending and Borrowing Mechanism (ALBM) and Borrowing and Lending of Securities Scheme (BLESS) of the two major stock exchanges. The new rules now make it mandatory for the shares borrowed under the two schemes to be deposited with the clearing corporation or clearing house of the exchange.

The new rules would become applicable from the next settlement. The decision follows a meeting of the risk management group of the regulator. ALBM is currently available at the National Stock Exchange and BLESS at the Bombay Stock Exchange.
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