Rupee declines - bond prices up
Mumbai: The rupee weakened marginally on Friday ending the day at 43.4350/40, lower than Thursday's close at 43.40/41.

Forwards market: The 12-month premium closed at 1.35/37 per cent (1.27) and the 6-month premium ended at 1.57/60 per cent (1.42).

G-Secs: In the bond market, prices fell by 10-15 paise. The 8.07-7 year-2017 paper closed at Rs104.50 (7.48 per cent YTM). The 7.55-5 year-2010 paper, which was auctioned recently, opened at Rs102.80/82 (6.86 per cent YTM) touched a low of Rs102.63, finally closing at Rs102.70(6.90 per cent YTM).

Call rates: The inter bank rates were in the 4.90-5 per cent range.

CBLO market: 176 trades amounting to Rs6,666.35 crore in the rate range of 4.80-5.10 per cent were realised.
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RBI to amend norms for corporate debt restructuring
Mumbai: The Reserve Bank of India proposes to widen the scope of the Corporate Debt Restructuring (CDR) scheme and make it more efficient.

Under the changes proposed by the RBI to the existing guidelines, the CDR scheme will be extended to corporates on whom banks and financial institutions have an outstanding exposure of Rs10 crore, as against Rs20 crore currently. This could bring a larger number of sick units under the ambit of CDR. A corporate coming under the scheme would require the support of 60 per cent of creditors by number in addition to the support of 75 per cent of creditors by value.

This is being done with a view to make the decision-making process more equitable, the RBI said.

This is expected to give smaller lenders a say in the debt restructuring exercise. Until now, larger lenders have been enjoying greater influence in such exercises.

It is also proposed to link the restoration of asset classification prevailing on the date of reference to CDR cell to implementation of package within three months from the date of approval of the package. This means that if a CDR scheme is not implemented within three months of its date of approval, the advantages of classification of the assets would not be available to the borrower.

The RBI has also proposed one-time settlement as a part of the CDR scheme to make the exit option more flexible.
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ONGC offshore package insurance renewed at reduced premium
New Delhi: ONGC has finalised the renewal of its Offshore Package Insurance Policy for an insured value of $11,000 million for the policy year 2005-2006, beginning May 11. The insurance premium at $19.95 million is 17.19 per cent lower than the premium for the previous year on like-to-like basis. In rupee terms the reduction works out to 19.12 per cent.

Over the last three years, ONGC has achieved significant reductions in the premium, which was $49.97 million during policy year 2002-03. These reductions have been achieved due to sustained focus on safe operating practices and facility inspection and certification by the management, coupled with four consecutive years of loss/claim-free operations, a company release said.

The Risk Surveyors of the Lead Underwriters rated ONGC risk as `Acceptable' for the second consecutive year, after rigorous inspection of ONGC's biggest offshore process complex and a detailed review of the operating, maintenance and safety practices in February 2005.

The 2005-06 Policy was lead-insured through United India Insurance, selected out of the four nationalised insurance companies.

As much as 95 per cent of ONGC's offshore risk is reinsured overseas, the company said.
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IRDA sets up the Institute of Surveyors & Loss Assessors
Kolkata: The Insurance Regulatory and Development Authority has set up the Institute of Surveyors and Loss Assessors. The articles of association of the organisation are now being finalised.

According to IRDA officials, the institute has recently been registered, not as a corporate body but as an independent, no-profit entity.
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