27 march 2004
rupee
steady
mumbai:
the rupee ended steady at 44.73/74 in its value against
the dollar, marginally firmer than wednesday's close of
44.75.
forwards- the six-month premium ranged between 0.62 per
cent and 0.71 per cent, while the one-year premium ranged
between 0.62 per cent and 0.68 per cent.
g-secs - the 10-year benchmark, 7.37 per cent 2014 paper
closed at rs117.12/15 against its previous close at rs117.03
(5.17 per cent ytm). the 8.07 per cent 2017 paper closed
at rs125.02 against its previous close at rs124.84/90.
rbi
rationalises overseas borrowings of banks
mumbai: the reserve bank of india has decided to
rationalise the existing facilities for commercial banks
to borrow overseas. it will also introduce a monitoring
and reporting system for the same, starting this fiscal.the
central bank now prescribes that banks can borrow up to
25 per cent of their unimpaired tier-i capital as at the
close of the previous quarter, or $10 million (or its
equivalent), whichever is higher. any fresh borrowing
above this limit shall only be with the prior approval
of rbi.
irda
restores special discount
bangalore: the insurance regulatory and development
authority (irda) has reinstated the five per cent special
discount, which it had discontinued in july last year,
with rigorous restrictions. the discount would be available
only for companies with a paid-up capital of above rs.
3 crore, without any distinction between private and public
sector entities.
the
regulator's notification clearly indicates that the discount
could be extended by the insurers in lieu of agency commission
or brokerage and cannot be clubbed along with either of
these elements.this special discount would be available
only for tariff-driven business, according to the notification.the
notification corrects certain anomalies. since none of
the public sector companies were in a position to load
commission or brokerage for discounting premia, they were
at a disadvantage against the private sector.
fieo
says appreciation of rupee is frightening
new delhi: the federation of indian export organisations
(fieo) has described the continuing appreciation of the
rupee against the us dollar as "frightening"
for exporters as "it has brought down their profit
margins to less than 5 per cent."the fieo claims
that the appreciation of the rupee against the dollar
threatens to eliminate their competitive edge over other
asian and south asian countries, particularly china and
vietnam, which have pegged their currencies to the dollar.fieo
has also cautioned that export growth figures for april-june
2004 might fall sharply to a single digit if no remedial
measures are initiated immediately.
rbi
to issue bonds and t- bills for rs 35,500 crore
mumbai: the rbi has released the borrowing calendar
for the initial part of the coming fiscal. the bank will
issue bonds and treasury bills for rs 35,500 crore under
the market stabilisation scheme in the first quarter of
the next fiscal year starting in april. this will be in
addition to the rs 59,000 crore that the central government
will raise in the first half of the coming fiscal.these
bonds will have all the characteristics of g-secs including
that of slr status. these funds when raised will be held
in an account maintained by the rbi. this amount can be
revised later to include more issuances depending on the
liquidity condition, said the rbi.
rbi
to scrap one-day repo
mumbai: the reserve bank of india has revised the
liquidity adjustment facility (laf) to do away with the
one-day repo and substitute it with 7-day ones. the new
scheme will start on march 29. in order to achieve a smooth
transition to the revised scheme, the existing overnight
variable rate repo auction facility would also be available
till april 2, the rbi has said in a notification.
subsequently, the overnight repo auction will be discontinued
and only the 7-day repo auction will be available.further,
in order to enable market participants to meet their prior
commitments based on their existing operations, the 14-day
26 march 2004
rupee
steady
mumbai: the rupee ended steady at 44.73/74 in its value
against the dollar, marginally firmer than wednesday's
close of 44.75.
forwards- the six-month premium ranged between 0.62 per
cent and 0.71 per cent, while the one-year premium ranged
between 0.62 per cent and 0.68 per cent.
g-secs - the 10-year benchmark, 7.37 per cent 2014 paper
closed at rs117.12/15 against its previous close at rs117.03
(5.17 per cent ytm). the 8.07 per cent 2017 paper closed
at rs125.02 against its previous close at rs124.84/90.
rbi
rationalises overseas borrowings of banks
mumbai: the reserve bank of india has decided to
rationalise the existing facilities for commercial banks
to borrow overseas. it will also introduce a monitoring
and reporting system for the same, starting this fiscal.the
central bank now prescribes that banks can borrow up to
25 per cent of their unimpaired tier-i capital as at the
close of the previous quarter, or $10 million (or its
equivalent), whichever is higher. any fresh borrowing
above this limit shall only be with the prior approval
of rbi.
irda
restores special discount
bangalore: the insurance regulatory and development
authority (irda) has reinstated the five per cent special
discount, which it had discontinued in july last year,
with rigorous restrictions. the discount would be available
only for companies with a paid-up capital of above rs.
3 crore, without any distinction between private and public
sector entities.
