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Rupee unchanged
Mumbai: The rupee weakened slightly against the dollar due to demand for dollars from importers. The rupee opened at 44.21/22 and closed at 44.1850/1950, against Tuesday's close at 44.1850. However, dollar inflows matched demand for the rupee to close unchanged.

In forwards, the six-month closed at 3.03 per cent (3.28 per cent) and 12 month ended at 2.93 per cent (3.09 per cent).

Bonds: Bond prices rose by over 30 paise. Total traded volumes in the order matching system were at Rs6,135 crore (Rs2,130 crore).

G-secs: The 7.37-7 year-2014 paper (most actively traded paper) opened at Rs96.65 (7.99 per cent YTM) and closed at Rs96.91 (7.94 per cent YTM), against Tuesday's Rs96.58 (8 per cent YTM).

The 8.07 per cent-10 year-2017 paper opened at Rs100.65 (7.97 per cent YTM) and closed at Rs101 (7.92 per cent YTM), against Tuesday's Rs100.45 (8 per cent YTM).

Call rates: Call rates slipped to 6.80-7 per cent against the previous close of 7.80-7.90 per cent. Reverse repo: In the first one-day reverse repo auction RBI received and accepted one bid for Rs25 crore while in the first one-day repo auction RBI received and accepted eight bids for Rs1,470 crore. In the second one-day reverse repo auction RBI received and accepted six bids for Rs3,465 crore while there was no repo bids in the second one-day auction.

CBLO: The CBLO market saw 541 trades aggregating to Rs27,213.25 crore in the 7.50-7.50 per cent range.
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SEBI removes ban on Centurion Bank of Punjab for DP operations
Mumbai: SEBI has removed the ban on Centurion Bank of Punjab on opening of fresh demat accounts.

SEBI had issued certain interim directions against various market participants, in an order dated April 27, 2006, including Centurion Bank of Punjab Ltd, a Depository Participant of Central Depository Services Ltd, for failing to adhere to the "know your client" norms while opening demat accounts, which led to cornering of the retail segment in initial public offerings.

SEBI's Whole-Time Member, T.C. Nair said in an order that more than nine months have elapsed since Centurion Bank of Punjab has been restrained from opening of new demat accounts. It is seen from the submissions of CBoP that pursuant to the ex-parte order, it had taken necessary steps in closing certain accounts and action against the concerned persons/branches responsible for the lapses.
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Norms for doorstep banking laid out
Mumbai: Doorstep banking services will now be available as the Reserve Bank of India has issued guidelines for banks on "Doorstep Banking." It has also allowed banks to either deploy their employees or hire agents to extend these services.

Thus individual customers can have cash and other bank instruments picked up from their home or office while only demand drafts will be delivered. Corporate customers can additionally have cash delivered against cheque received at the bank's counter.

The new guidelines allow banks to extend cash delivery services to corporate clients, public sector units and departments of Central and state governments against the receipt of cheque at the branch, and not based on telephonic requests. Individual customers cannot, however, avail of this facility.

Similarly, the delivery of demand drafts for both individual and corporate customers will be done by debiting the account on the basis of requisition in writing or cheque received and not against cash collected at the doorstep.

The RBI has also cautioned banks about risks arising out of these services and asked them to prescribe cash limits.

According to the guidelines, banks have been asked to acknowledge cash collection by issuing receipts and ensuring that it is credited to the customer's account on the same day or the next working day.

The charges for these services would have to be prominently indicated on brochures.
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General insurers cut fire cover premium rates
Coimbatore: The public sector companies operating in the general insurance space have cut fire premium rates by 30-40 per cent in the last one-and-a-half months. Industry men said the sharp reduction in the premium from a profitable portfolio could affect the bottomline of the companies but the impact of this premium war would be known only after April 1, 2007. Besides fire, some of the Government-owned units in the general insurance space have also cut motor vehicle premiums. Industry sources said that the private sector companies would not be able to bear the backlash of this aggressive undercutting of rates.
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Sangli Bank merger with ICICI to go ahead
New Delhi: The merger of Maharashtra-based Sangli Bank with private sector banking giant ICICI Bank has got the go ahead, as minority shareholders of the ailing bank have withdrawn a petition alleging fraud and mismanagement.

With withdrawal of the suit, the ball is now in the court of banking regulator Reserve Bank of India, which has the final authority to decide on the merger of banks.

Simultaneously, after the vacation of the stay, the merger resolution passed by the ailing lender's shareholders on January 15 would come into effect.

The shareholders in an EGM held on January 15 passed the merger resolution with about 84 per cent majority. The EGM was held under the supervision of an observer appointed by CLB and outcome of this meeting was subject to its final order.
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domain-B : Indian business : News Review : 22 February 2007 : banking and finance