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Samvat 2067 ends on positive note
- Investors shrugged off Reserve Bank of India's yet another hike in lending rate to tame inflation and ended the Samvat Year 2067 on Tuesday on a cheerful note
- The BSE 30-share barometer opened firm, following strong Asian cues, but fell back in the negative terrain to a low of 16900.26, an initial knee jerk reaction to rate hike.
- The Sensex bounced back and settled at nearly three-month high of 17254.86.
Prepayment penalty on home loans to go: RBI
- In a move to introduce more customer-friendly norms, the Reserve Bank India (RBI) on Tuesday proposed to notify banning prepayment penalty on floating rate home loans, as recommended by the Banking Ombudsman recently, while hiking the short-term indicative rate (repo rate) by 25 basis points to tame inflationary pressures.
- The RBI is firmly of the view that controlling inflation is imperative for sustaining growth over the medium-term and for increasing the potential growth rate.
- While maintaining the inflation rate at 7 per cent for 2011-12, the RBI revised the growth rate projection from 8 to 7.6 per cent.
- As the banking system prepares to go on to the Basel-III framework requiring higher capital adequacy, the RBI said the draft guidelines for its implementation will be issued by December-end
- the RBI has given the go-ahead for creating a new category called NBFC-MFIs (NBFC-micro finance institutions).
- a separate set of guidelines for overseas investment by core investment companies (CICs) in financial and non-financial sector companies will be issued.
- The RBI said liberalisation had led to increased pace in the number of branches opened in Tier 3 to Tier 6 centres.
- To provide enhanced banking services in Tier 2 centres, it is now proposed to permit domestic scheduled commercial banks (other than RRBs) to open branches in Tier 2 centres (with population 50,000 to 99,999) without the need to take permission from the Reserve Bank in each case, subject to reporting.
- In the area of financial markets, four important initiatives have been announced. First, the RBI will issue the final guidelines on the cash settled 5-year and 2-year interest rate futures (IRFs), including the final settlement price by end-December 2011. Second, guidelines on credit default swaps (CDS) will be made effective by end-November 2011. Third, guidelines on short-sale in government securities will be issued by end-December 2011.Fourth, a Working Group will be constituted to examine and suggest ways for enhancing secondary market liquidity in the G-Sec and interest rate derivatives markets.
- RBI constituted the Damodaran Committee to make recommendations for improving customer service
Muhurat trading today
- The Bombay Stock Exchange and National Stock Exchange will open on Wednesday for a special Muhurat trading session.
- The Bombay Stock Exchange and National Stock Exchange will op
- Both the markets will have a 90-minute trading between 1630 hours and 1800 hours to mark the beginning of new Hindu Samvat Year 2068.
- Barring bullion, all wholesale commodity markets in New Delhi will remain closed for Diwali.
Exports to tax havens have increased from 2004-05 level
- An inquiry by the Commerce Ministry has found that exports to the commonly known tax havens have increased from the 2004-05 level.
- Exports to Bahamas increased from just $5.55 million in 2004-05 to a whopping $2.17 billion in 2010-11.
- An abrupt increase was seen only in the case of Bahamas. It was mainly on account of petroleum products.
- exports to Mauritius had increased from $258.2 million in 2004-05 to a maximum of $1.089 billion in 2007-08 and then decreased to $801.56 million in 2010-11.
- Exports to Panama Republic grew from $55.95 million in 2004-05 to a peak of $165.6 million in 2006-07 and then slipped to $117.84 million in 2010-11.
- exports to Seychelles which were $10.62 million in 2004-05 grew to a maximum of $97.43 million in 2008-09 and then fell to $31.15 million in 2010-11.
- shipments to Switzerland were $540.89 million in 2004-05, peaking at $769.24 million in 2008-09 and then dropping to $677.56 million in 2010-11.
- Exports to Luxembourg have risen from $11.64 million in 2005-05 to a maximum of $18.64 million in 2010-11.
RBI move will further tighten source of funding: CREDAI
- The latest interest rate hike by the Reserve Bank of India (RBI) is bound to push up the price of housing loans as well as the residential apartments
- The RBI has put us in a sorry situation. It is a vicious circle of higher input cost, higher borrowing cost and higher property prices. We are bound to pass on the increased cost of funds to our customers,” Confederation of Real Estate Developers' Association of India (CREDAI) Chairman Pradeep Jain said.
- “There is an urgent need on behalf of the government to take immediate steps to initiate reforms in real estate such as transparency and single window clearance system,” he added.
- Meanwhile, the Government raised the housing loan ceiling for availing one per cent interest subsidy to Rs.15 lakh from the existing Rs.10 lakh.
RBI move will further tighten source of funding: CREDAI
- The latest interest rate hike by the Reserve Bank of India (RBI) is bound to push up the price of housing loans as well as the residential apartments
- The RBI has put us in a sorry situation. It is a vicious circle of higher input cost, higher borrowing cost and higher property prices. We are bound to pass on the increased cost of funds to our customers,” Confederation of Real Estate Developers' Association of India (CREDAI) Chairman Pradeep Jain said.
- “There is an urgent need on behalf of the government to take immediate steps to initiate reforms in real estate such as transparency and single window clearance system,” he added.
- Meanwhile, the Government raised the housing loan ceiling for availing one per cent interest subsidy to Rs.15 lakh from the existing Rs.10 lakh.
RBI move will further tighten source of funding: CREDAI
- The latest interest rate hike by the Reserve Bank of India (RBI) is bound to push up the price of housing loans as well as the residential apartments
- The RBI has put us in a sorry situation. It is a vicious circle of higher input cost, higher borrowing cost and higher property prices. We are bound to pass on the increased cost of funds to our customers,” Confederation of Real Estate Developers' Association of India (CREDAI) Chairman Pradeep Jain said.
- “There is an urgent need on behalf of the government to take immediate steps to initiate reforms in real estate such as transparency and single window clearance system,” he added.
- Meanwhile, the Government raised the housing loan ceiling for availing one per cent interest subsidy to Rs.15 lakh from the existing Rs.10 lakh.
