Upward march: Rupee gains 9 paise
Mumbai: The rupee appreciated by almost nine paise against the greenback on Wednesday. The Indian currency opened at 40.56/57 and closed the day at 40.45, up from the previous close of 40.54/55. Dealers said the supplies are very strong which will cause further strengthening of the rupee helping it to appreciate to 40 or even below 40 levels. In forwards, the six-month premia closed at 2.09 per cent (2.13 per cent) while the 12-month closed at 2.18 per cent (2.26 per cent).

Bonds: Bond prices rose by about 40 paise and the yields fell by 6 basis points on the back of the surplus cash in the system. The yield on the 10-year paper closed at 8.03 per cent on Wednesday against the previous close of 8.09 per cent. The total traded volumes on the order matching system w ere Rs11,515 crore (Rs8,410 crore).

G-secs: The 7.49 per cent 10-year-2017 paper opened at Rs95.94 (8.10 per cent YTM) and closed at Rs96.40 (8.03 per cent YTM) against the previous close of Rs95.97 (8.09 per cent YTM).

The 6.65 per cent-2009 paper opened at Rs98.61 (7.50 per cent YTM) and closed at Rs 98.69 (7.45 per cent YTM) against the previous close of Rs 98.59 (7.51 per cent YTM).
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LIC to sell policies in Saudi Arabia through JV
Mumbai: Life Insurance Corporation of India (LIC) will soon start selling insurance policies to the public in Saudi Arabia through a three-way joint venture set up for the purpose.

LIC along with general insurer New India Assurance and Saudi Arabia's Al-Hokair Group has set up Saudi India Company for Cooperative Insurance (SICCI), which recently issued an initial public offering (IPO) for 40 per cent of the shares and raised 40 million Saudi rials (about Rs 46 crore).

The regulations in Saudi Arabia require new insurance companies to offer 40 per cent of the shares to locals before starting operations.

LIC expects to get an operating license by July/August end. LIC along with its subsidiary, LIC International, holds 20.4 per cent stake in SICCI, while New India Assurance has 10.6 per cent stake and Al-Hokair Group 29 per cent stake. The IPO for the 40 per cent stake was subscribed 8.5 times.

LIC is also working towards setting up representative offices in Singapore and the United States of America. In January 2007, the Insurance Regulatory Development Authority (Irda) had issued regulations for insurance companies wanting to open representativeiaison offices overseas.

LIC started its Bahrain operations in 1989. LIC (International), Bahrain operates in Bahrain, Saudi Arabia, Oman, Qatar, UAE and Kuwait, and has permission to sell insurance only to non-resident Indians.
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Prudential may soon select partner for Indian AMC
Seoul: US Life insurer Prudential Financial will soon finalise an Indian company to form an asset management JV to enter the Indian market, an official in the company said on Wednesday. The venture if it works out will be its fifth Asian unit after Japan, South Korea, China and Taiwan, and will join other insurers that have been ramping up operations in India.

Prudential expects the venture to help it save time in building distribution channels and brand recognition in the competitive market, as well as deal with cultural and regulatory issues.

New Jersey-based Prudential, with $630 billion of assets under management, plans to boost retail fund sales in South Korea and Taiwan, but will focus on institutional fund business in Japan after facing tough competition in that country's retail fund market.
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