Rupee gains to touch 10-month high
Mumbai: The rupee moved up against the US dollar to touch a 10-month high on Thursday.

The rupee opened at 44.26 and touched a low of 44.38 as oil companies and corporates bought dollars. However, in the second half of trade, the rupee moved up to end at 44.25/26 against yesterday's close of 44.40/42.

Forex could not explain the dollar inflow which was leading the rupee to rise.

Forward premia eased off a little with the six-month premium closing at 3.76 per cent (3.80 per cent) and the one-year closing at 3.03 per cent (3.05 per cent).

Call rates: Inter-bank call money rates touched a record high on tight money supply. The overnight interest rates, which were moving in the range of 6.20-6.50 per cent at the beginning of the month, touched a record 12.75-13 per cent in the last two trading sessions.

A dealer at a private bank said call rates were higher than the prime lending rates of banks, which are at average above 11.50 per cent.

Reverse repo: In the first one-day repo auction under LAF, the RBI received and accepted 43 bids for Rs22,450 crore on Thursday. There were no bids for reverse repo auction. In the second reverse repo auction the RBI accepted and received one bid for Rs10 crore and 10 bids for Rs13,670 crore in the repo auction.

Bonds: Bond prices fell by around 10 paise. Total traded volumes in the market were low at around Rs730 crore. The total traded volumes on the order marching system continued to be low at around Rs730 crore (Rs690 crore on Wednesday), against the average of Rs2,000 crore-Rs3,000 crore. Dealers said that there were few players in the market and little trading interest.

G-secs: The market sentiment could also be impacted by the inflation figures, which will be released on Friday. The 7.59 per cent 10-year-2016 paper opened at Rs99.70 (7.63 per cent YTM) and closed at Rs99.70 (7.63 per cent YTM), against Wednesday's Rs99.79 (7.62 per cent).

The 8.07 per cent 11-year-2017 paper opened at Rs103.18 (7.61 per cent YTM) and closed at Rs103.09 (7.62 per cent YTM), against Wednesday's Rs103.15 (7.61 per cent YTM).
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Religare signs life insurance JV with Dutch company
New Delhi: Ranbaxy group company and financial services provider, Religare, has joined hands with Dutch insurer Aegon to set up life insurance and asset management venture in the country. The JV will invest over Rs1,000 crore in the project.

Religare will hold 44-per cent stake in the life venture while Aegon will own a 26-per cent stake. Investor Bennett Coleman will hold the balance stake. The asset management venture has been structured on an equal ownership basis between Religare and Aegon.

Religare sources said the venture would be operational within three months of obtaining the Insurance Regulatory and Development Authority approval.

Religare has interests in equities, commodities, portfolio management, investment banking, corporate finance, mutual fund distribution, insurance broking and personal credit.

The company provides services through its strong network of more than 272 branches and 580 partner locations, covering over 300 towns and cities across the country.
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IRDA comes down on discounts on general insurance
Mumbai: The Insurance Regulatory Development Authority of India (IRDA) has come down on excessive discounts on fire, engineering and motor insurance policies being offered by general insurers that have come up for renewals.

From 1 January, 2007, 75 per cent of the non-life insurance market comprising of fire, engineering and motor insurance will be freed from tariffs.

Irda had allowed insurers to offer a maximum of up to 20 per cent discount on fire and engineering and a maximum of up to 10 per cent discount on motor own-damage insurance.

However, insurers are offering excessive discounts above the stipulated ceiling, on condition that if such discounts are not approved by Irda, then the policyholder/ client will pay back the discount in excess of 20 per cent for fire and engineering and in excess of 10 per cent for motor own-damage.

Irda has issued a circular on the guidelines for file and use requirements for general insurance product-Issuance for notices for renewals due in January 2007.

The circular says, "It has come to Irda's notice that some insurers are offering their client/brokers discounts exceeding 20 per cent of the present tariff rate with the condition that if such discounts are not approved by Irda, the insured shall pay back the discount allowed in excess of 20 per cent. We would like to reiterate that any insurer which has quoted for a risk that commences in January 2007 whether fresh or renewal with reduction in tariff rates of more than 10 per cent in case of motor own damage and 20 per cent in case of other classes of business will be guilty of violating Irda's instruction contained in the aforesaid circular. It is also reiterated that there is no question of any discount in lieu of agency commission or in lieu of broker remuneration in respect of fresh business or renewal effect 1st January 2007."
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