Gilts move up as rupee slips
Mumbai: The rupee ended at 45.86/88 against the US dollar. It had closed at 45.8550/8650 on Wednesday.

Forwards Market: The six-month forward finished at 1.70 per cent (1.52 per cent) while the twelve-month forward closed at 1.45 per cent (1.40 per cent).

G-Secs: The 11-year benchmark 7.38 per cent 2015 paper finished higher at Rs.109.65 with the yield at 6.16 per cent. The 10-year benchmark 7.37 per cent 2014 paper closed at Rs.109.

Call Rates: Easy in the range of 4.30-4.50 per cent.

CBLO Market: 109 trades worth Rs.3,951.55 crore were transacted in the range of 4.20-4.50 per cent.
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RBI to deepen debt market
Bangalore: According to Dr Rakesh Mohan, the bank's Deputy Governor, the Reserve Bank of India is keeping a close vigil on inflation and would resort to monetary policy intervention when necessary. He also ruled out any changes in the foreign exchange policy with reference to intervention in the markets.

Earlier, speaking at the FICCI conference on banking, Dr Mohan said that the monetary policy would continue to focus on price stability as the inflationary expectations in the domestic market were down to about 7 per cent in line with the rest of the world.

He also said that the RBI was also focussing on deepening and broad basing the debt markets in the country, because at present, the players in the market were entirely banks, insurance companies and financial institutions. He said that the corporate debt market needed to be deepened to prevent any "cartelisation of banks" in a deregulated environment.
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RBI fiat on coins
Mumbai: The Reserve Bank of India has advised all commercial banks to freely accept coins of all denominations for exchange into bank notes. The RBI said in a release that the Reserve Bank offices would also continue to freely accept all the coins for exchange into bank notes.
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PNB agro initiative: Loans against warehouse receipts
Mumbai: Farmers and traders will now be able to obtain finance against warehouse receipts, thanks to a new scheme introduced by the Punjab National Bank (PNB) in collaboration with National Multi-Commodity Exchange of India Ltd (NMCE) and Central Warehousing Corporation (CWC).

PNB has authorised four branches at New Delhi, Kottayam, Kochi and Kozhikode, to extend demand loans to farmers and traders when they present CWC negotiable warehouse receipts, which certify the quantity, quality and location of the commodity stored in CWC warehouses, and the relevant forward sale contracts of the participants with the members/brokers of the exchange.

The commodities covered are cardamom, pepper, rubber, jute and jute products.

A farmer or a trader can get loans for non-perishable agricultural and other commodities from Rs.50,000 to Rs.1 crore, with margin of 20 per cent to 40 per cent, valuation of which to be arrived at on the basis of market value/invoice value/minimum support price fixed by the Government, whichever is lower.

According to the scheme, a farmer/trader shall deposit the agricultural and other commodities with CWC and obtain a warehouse receipt, which certifies the quantity and quality of the deposited commodity. The farmer/trader, thereafter, shall enter into a forward sale contract with exchange's member/broker who in turn will place the client order from his terminal in NMCE's computer system.

Under the scheme, the demand loan shall be sanctioned for a period not exceeding six months or for the validity of the pledged warehouse receipt, whichever is earlier.

NMCE, after verifying details of the client and the validity of warehouse receipt, will allocate a separate client identification no, for the said farmer/trader if he wants to avail finance from PNB.
Upon receiving the broker's order incorporating the client identification no, NMCE system will create an order ID with time stamp, and a trade will be executed on matching with the opposite order, which becomes a forward sale contract.

Printed from the member's computer, the forward sale contract will be given to the seller, who, along with the warehouse receipt can approach PNB Branch for the purpose of availing loan.
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