Rupee at four month high -bonds dip
Mumbai: The rupee closed on Monday at 45.635/645 against the dollar, as against its previous close of 45.73 per dollar and thereby touched its four-month high. It had touched 45.665/680 per dollar on June 18.

Forwards Market: The six-month forward closed at 2.60 per cent (2.68 per cent) and the twelve-month forward finished at 2.05 per cent (2.15 per cent).

G-Secs: The 10-year benchmark 7.37 per cent 2014 paper closed lower by nearly 60 paise at Rs104.60 at a yield of 6.65 per cent. The 11-year benchmark 7.38 per cent 2015 paper finished at 40 paise, lower than the opening level at Rs105.40 at a yield of 6.68 per cent.

Call Rates: In a tight range of 4.75 per cent-4.90 per cent with liquidity showing signs of drying up.

CBLO Market: 143 trades worth Rs4,660.65 crore were transacted in the rate range of 4.50-5.00 per cent.
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MoF asks RBI to consider prior approval for share purchase of private banks
New Delhi: The Ministry of Finance has asked the RBI to explore the possibility of according prior approval to share deals that result in breaching the threshold shareholding limits, instead of granting acknowledgment after the transaction has actually taken place.

Under the present system, investors whose share purchases touch or go above 5 per cent of paid-up capital of a bank are required to get acknowledgement from the RBI after entering into the deals.

The bank in question is allowed to proceed with the allotment and transfer of shares only after receiving the central bank's go-ahead.

The onus on providing the details of the deals to the RBI lies with the bank's board whose shares are being acquired. It is felt that the requirement of post-facto acknowledgment has at times resulted in investment deals in private banks getting stuck with the RBI for unduly long periods causing unease among investors.
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PNB to go ahead with second public issue
Mumbai: The Punjab National Bank has obtained the Union Government's approval for its 'follow-on public offer' slated to hit the markets by the end of this fiscal.

The bank will file an application with the Securities and Exchange Board of India within a week, the bank has said. PNB, the third largest public sector bank, recently announced plans for a further issuance of up to 5 crore shares with pricing to be discovered through the book-building process.

Currently, the Government holds 80 per cent stake in PNB.PNB's initial public offer in 2002 was oversubscribed by over 300 per cent, with the total subscription touching about Rs690 crore against the issue size of Rs164.49 crore.
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HDFC to float real estate venture funds
Mumbai: HDFC has decided to enter into the real estate venture funds business and will set up two companies for the purpose.

HDFC Venture Capital Ltd will undertake the business of managing the property fund, subject to approvals; HDFC Ventures Trustee Company will act as trustee to the fund, HDFC has said in a notice to the stock exchanges from HDFC.

The board of directors has also approved issue of 10,000 shares of Rs10 each of Home Loans Services India Pvt Ltd (HLS) for cash at par amounting to Rs1,00,000. HLS undertakes the business of sale of home loans products of the Corporation. Pursuant to the said acquisition, HLS would become a wholly owned subsidiary of the Corporation.
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