Continuous settlement system: RBI seeks US Fed clearance
Mumbai: The first-ever continuous linked settlement (CLS) system for cross currencies, proposed to be set up by the Clearing Corporation of India Ltd (CCIL), has, reportedly, been referred to the US Federal Reserve by the Reserve Bank of India for clearance. Under the system, CCIL will be one of the members of CLS banks which works under the jurisdiction of Federal Reserve and hence the need for the mandatory approval.

Sources were quoted as saying that if the CCIL gets Fed approval, it will be the world's first agency to offer third- and even fourth-party counter-guarantee backed settlement service in cross-currency as a settlement agency with no trading position of its own. At present, only one or two banks in Europe offer cross-currency settlement. But this is done for their own banks with inter-bank trading positions.
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LIC announces bonus for policyholders
Mumbai: Life Insurance Corporation of India (LIC) has declared a total valuation surplus of Rs 9,733 crore for the financial year 2002-03 as against Rs 8637.50 crore in the previous financial year. LIC has also announced bonus for its policyholders for the year 2002-03 pursuant to the actuarial valuation as on 31 March 2003.

The bonus rates declared by LIC shows a marginal adjustment over the last year because of the fall in average yield on investments owing to overall declining interest rate scenario. Out of the surplus declared, 95 per cent, which is Rs 9,246 crore (Rs 8,205.62 crore in 2001-02), is distributed as bonus to the holders of 'with profit policies' which were in-force as on 31 March 2003 and 5 per cent of the surplus, which is Rs 487 crore (Rs 431.88 crore in 2001-02), is to be given to the Indian government as yearly dividend.
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IFCI rakes in Rs 52-crore from WGSRL share sale
New Delhi: IFCI Ltd has raked in over Rs 52 crore by selling 3.03 crore shares of Welspun Gujarat Stahl Rohren Ltd (WGSRL) in the secondary market at a price of Rs 27-28 per share on Tuesday. These shares constitute 21.75 per cent of the paid up capital of WGSRL.

Sources were quoted as saying that the shares worth Rs 82 crore were picked up by a clutch of foreign institutional investors on a day when over 4-crore shares of WGSRL were transacted. IFCI's total holding in WGSRL was about 4-crore shares, which has now been reduced to 1-crore shares.
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