Rupee gains
Mumbai: The rupee moved up by almost 40 paise as there were good dollar supplies in the market. The home currency opened at 45.32, and closed at Rs44.92/93, against the previous close of 45.34/35.

In forwards, the six-month premium closed at 1.98 per cent (1.88 per cent) and the one-year closed at 1.82 per cent (1.73 per cent).

Bonds: Bond prices fell by 10 paise. The total traded volume on the order matching system was lower at Rs2,655 crore (Rs8,415 crore).

G-secs: The 7.59 per cent, 10-year, 2016 paper opened at Rs100.35 (7.53 per cent YTM) and closed at Rs100.30 (7.54 per cent YTM), lower than Wednesday's Rs100.43 (7.52 per cent YTM). The 8.07 per cent, 11-year, 2017 paper opened at Rs103.76 (7.53 per cent YTM) and closed at Rs103.77 (7.53 per cent YTM), against Wednesday's Rs103.86 (7.52 per cent YTM).

Call rates: Call ruled between 7.1 per cent and 7.2 per cent against 7 and 7.1 per cent on Wednesday.

Reverse repo: In the first one-day reverse-repo auction and repo auction under LAF, the RBI did not receive or accept any bid. In the second one-day reverse-repo auction, it accepted and received five bids for Rs4,565 crore.

CBLO: The CBLO market saw 395 trades aggregating Rs21,405.70 crore in the 6.8-7.1 per cent range.
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CitiFinancial, GE Money on fund-raising drive
Mumbai: Non banking finance companies (NBFCs) CitiFinancial and G E Money Financial Services Ltd are raising huge amount of funds through non-convertible debentures (NCDs) and short-term debts. CitiFinancial is raising a total of Rs5,876 crore while G E Money Financial Services is raising Rs3,225 crore. Rating agency Crisil has assigned the highest rating of AAA to the NCD and P1+ to the short-term debt programmes for both NBFCs.

According to the Crisil report, CitiFinancial, a subsidiary of Citigroup, has seen a growth of over 54 per cent in its total income for the half year ended September 30.It reported a total income of Rs807 crore (Rs524 crore). Its profit after tax rose to Rs96.7 crore (Rs82.1 crore), an increase of over 17 per cent.

As on March 31, the NBFC's networth stood at Rs1,252 crore. It is engaged in retail financing, primarily to finance the sub-prime segment of retail borrowers in personal and consumer durable loans and home mortgage segments.

G E Money Financial Services finances consumer durables, automobiles and two-wheelers. It reported a profit after tax of Rs54 crore on a total income of Rs794 crore for the fiscal ended March 31, said the report.
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RBI relaxes conditions in when-issued trading
Mumbai: To boost trading volumes in the when-issued segment of the government securities market and to popularise the instrument, the Reserve Bank of India (RBI) has dispensed with the condition that every transaction in this segment must have a primary dealer as a counter party and has given a go-ahead for newly-issued securities to be traded on this platform, but on a selective basis. RBI has stressed that when-issued trading in freshly-issued securities can be implemented only after banks make the necessary software modifications in the negotiated dealing system-order matching (NDS-OM) trading system.

RBI has indicated that whenever an auction announcement is made, it would be specified as to whether the security would be eligible for trading on the when-issued platform. Under the guidelines, the central bank has mandated that only PDs can take short-positions in the market. For reissued securities, it has capped the extent of open-long positions that non-PDs can take at 5 pc of the notified amount, while PDs can long- and short- open positions up to 10 pc of the notified amount.

In case of newly-issued securities, the central bank has capped the long positions that non-PDs can take at 5 pc of the notified amount. Primary dealers can take short positions up to 5 pc and long positions up to 10 pc of the notified amount.

The RBI has mentioned in its mid-term review of the annual monetary policy, the intent to extend 'When Issued' trading to new issues of central government securities.
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