Rupee and bonds end on flat note
Mumbai: The rupee remained closed at 45.23, unchanged from Tuesday's close of 45.22/23.

Forwards: In the forward premia market, the six-month premium closed at 1.25 per cent (1.4 per cent) and the 12-month at 0.95 per cent (1.02 per cent).

G-Secs: The 8.07 12-year 2017 paper closed at Rs106.31 (76.23 per cent YTM), marginally higher than Tuesday's close of Rs106.26 (7.23 per cent YTM). The 10.25 16-year 2021 paper ended at Rs126.09 (7.38 per cent YTM) against the previous close of Rs125.94 (7.40 per cent YTM).

Call rates: The call rate closed at 6.25 per cent (6.25-6.30 per cent).

Reverse Repo: In the first one-day reverse repo auction, the RBI received and accepted two bids amounting to Rs1,120 crore, and six bids for Rs1,580 crore in the repo auction. In the second one-day reverse repo auction, the bank received three bids for Rs805 crore, and seven bids for Rs1,460 crore in the repo auction.

CBLO market: There were 323 trades for Rs15,614.10 crore in the range of 6.00-6.40 per cent.
Back to News Review index page  

IRDA finalises ULIP guidelines
New Delhi: The Insurance Regulatory and Development Authority, issuing final guidelines on Unit Linked Insurance Products (ULIP), has said that insurers have to ensure that the benefit payable on death under a single premium product should be at least 125 per cent of the single premium paid.

In non-single premium products, the regulator has said that the death benefits should be a formula (0.5 x term of the policy x annualised premium) or (5 x annualised premium) whichever is higher.

ULIPs are products that provide partial insurance cover along with a substantial sum out of the premium being invested in equity and debt instruments to provide investment returns to the holder of the units.

The IRDA feels the products lack adequate insurance protection, and has said that the sum assured payable on death shall not be reduced at any point of time during the term of the policy except to the extent of the partial withdrawals made during the two-year period immediately preceding the death of the life assured.

However, on attainment of 60 years of age of the life assured, all the partial withdrawals may be set off against the sum assured payable on death.

The IRDA has said that a unit-linked product must have a guaranteed sum assured payable on death and may have a guaranteed maturity value.

Moreover, guarantees provided on death, and/or on maturity shall be reasonable and consistent in relation to the current and long-term interest rate scenario. In this regard, demonstration of proper pricing, including the appropriateness through sensitivity and scenario testing shall be required under the File and Use, it said.
Back to News Review index page  

RBI to issue new Rs.50, Rs.100 notes
New Delhi: The Reserve Bank will shortly issue a new set of banknotes in the denomination of Rs50 and Rs100, which would have an inset letter "L" in both numbering panels.

"Except for the changes in the inset letter, the design of the notes to be issued now is similar in all respects to the banknotes in Mahatma Gandhi series with additional and new security features issued in August 2005," RBI said in a release.
Back to News Review index page  

CST Act to be phased out: Chidambaram
New Delhi: The Parliament has approved a legislation to further amend the Central Sales Tax Act, 1956 (CST) with the Rajya Sabha returning the Bill by a voice vote.

The finance minister, P Chidambaram, said that the Government will phase out the Central Sales tax in two or three years. The amendment would enable the Government to appoint a chairman and member (legal) of the appellate authority for advance rulings and also provide operational flexibility in functioning of the authority.
Back to News Review index page