Product Updates

Hi,   First Bi-monthly Monetary Policy Statement, 2014-15 By Dr. Raghuram G. Rajan, Governor Monetary and Liquidity Measures On the basis of an assessment of the current and evolving macroeconomic situation, RBI has been decided to: keep the policy repo rate under the liquidity adjustment facility (LAF) unchanged at 8.0 per cent; keep the cash reserve ratio (CRR) of scheduled banks unchanged at 4.0 per cent of net demand and time liability (NDTL); and increase the liquidity provided under 7-day and 14-day term repos from 0.5 per cent of NDTL of the banking system to 0.75 per cent, and decrease the liquidity provided under overnight repos under the LAF from 0.5 per cent of bank-wise NDTL to 0.25 per cent with immediate effect. Consequently, the reverse repo rate under the LAF will remain unchanged at 7.0 per cent, and the marginal standing facility (MSF) rate and the Bank Rate at 9.0...

India's external debt was at $426 billion - including the government's debt of $76.4 billion - at the end of December. "Government (Sovereign) external debt stood at $76.4 billion, (17.9% of total external debt) at end- December 2013 as against $81.7 billion (20.2%) at end-March 2013," the Finance Ministry said today. The total external debt of $426 billion showed an increase of $21.1 billion over the March-end level. "The rise in external debt during the period was due to long-term debt particularly NRI deposits. A sharp increase in NRI deposits reflected the impact of fresh FCNR(B) deposits mobilised under the swap scheme during September-November 2013," it said in the latest quarterly report. The ministry further said that the long-term debt was $333.3 billion at the end of December, showing an increase of 8.1% over March, 2013 level, while short-term debt declined by 4.1% to $92.7 billion. "The share of US dollar denominated debt was ...

Despite year-end pressure of banks to meet business targets, short-term corporate bulk deposit rates have softened significantly after the Reserve Bank of India (RBI) opened several channels to infuse liquidity in the banking system. The one-year bulk deposit rates, more than 10 per cent in end-February, have softened by 80-90 basis points, dealers said. "Rates for one-year deposits are quoting in the range of 9.17-9.20 per cent now," said the head of treasury of a public sector bank (PSB). Dealers indicated banks are mostly issuing certificates of deposit (CDs). "We are going for CDs because it turns out to be cheaper than bulk deposits. Today, we raised Rs 200 crore via two-month CDs for 8.5 per cent. CDs raised have come down by 30-40 bps in one week. Even bulk deposit rates have come down recently. The term repos are helping in liquidity infusion, due to which rates are coming down," said a dealer from another PSB. On Friday, RBI infused Rs 40,000 crore...

Bond yields still down; keep tight range Benchmark 10-year bond yield lower 2 basis points at 8.78 per cent having traded in a tight 8.77-8.79 per cent band during the session. Bond investors awaiting fiscal 2014/15 first-half borrowing calendar with finance ministry and RBI officials due to meet on Friday. India intends to borrow Rs 5.97 lakh crore in next fiscal, with dealers expecting around 60 per cent to be routed in the first half. "Yields should not be impacted materially. One should need at tenor buckets," says a senior dealer. Most market participants still expect the central bank to hold rates at its April 1 policy review. Thanking you Regards, Rajesh Kumar Kathpalia ¤ SMC Global 17,Netaji Subhash Marg,Daryaganj, New Delhi-110002 Mobile No 9891645052 Email Id: rajesh.ipo@smcindiaonline.com -- You received this message because you are subscribed to the Google Groups "Product Updates for AMC" group. To unsubscribe from ...

Shriram City plans to raise up to Rs 200 cr via NCDs NEW DELHI: Shriram City Union Finance is planning to raise up to Rs 200 crore through non-convertible debentures (NCDs) to support financing activities. The company is proposing to raise Rs 100 crore, with an option to retain over subscription to the extent of another Rs 100 crore. NCDs are loan-linked securities issued by a company and cannot be converted into stocks and usually carry a higher interest rate than a convertible debenture. The funds raised through the issue are to be used for financing and lending activities, to repay existing loans and meet business operations including for capital expenditure and working capital requirements. "Public issue by Shriram City of secured redeemable NCDs of face value of Rs 1,000 each aggregating up to Rs 100 crore with an option to retain over subscription up to Rs 100 crore for issuance of additional NCDs aggregating to a total of up to Rs 200 crore," the com...

Key Events to be watched in Next Month April 01 2014 RBI Interest Rate Decision   April 04 2014 United States -Non Farm Payrolls   Friday April 11 2014 Balance of Trade   Industrial Production YoY   Manufacturing Production YoY   Monday April 14 2014 WPI Inflation YoY   Inflation Rate YoY   April 29-30, 2014 FOMC meet Thanking you Regards, Rajesh Kumar Kathpalia ¤ SMC Global 17,Netaji Subhash Marg,Daryaganj, New Delhi-110002 Mobile No 9891645052 Email Id: rajesh.ipo@smcindiaonline.com -- You received this message because you are subscribed to the Google Groups "Product Updates for AMC" group. To unsubscribe from this group and stop receiving emails from it, send an email to Productupdatesforamc+unsubscribe@googlegroups.com . For more options, visit https://groups.googl...

Insurances companies seem to have loosened their purse strings to invest in the disinvestment exchange traded fund (ETF). Bulk of Rs 800-odd crore raised by the CPSE ETF has come from six insurance companies. Interestingly, it was only earlier this month that the insurance regulator had cleared the decks for insurers to invest in equity ETFs. The CPSE ETF raised Rs 835 crore from seven anchor investors on Tuesday. Six of the seven anchor investors are insurance companies. These anchor investors are: Bharti AXA, General Insurance Corp, Life Insurance Corp, National Insurance Company, State Bank of India, The New India Assurance Co and United India Insurance--six of them are state-owned organisations. The Insurance Regulatory and Development Authority (Irda) had also allowed insurers to invest in ETFs with expense ratio of up to 50 basis points. Earlier, it had prescribed a higher limit of 40 basis points. The CPSE ETF has expense ratio of 49 basis points. The CPSE ETF wil...

Industrial houses aspiring to set up banks could be in for some disappointment, as the Reserve Bank of India (RBI) is in no mood to oblige any of them. Sources familiar with the developments said while the licensing process was in the final lap, a final announcement was still some time away. While the names of several business houses were considered during discussion, the thinking in the important corridors of the central bank headquarters favoured caution. RBI is not alone in its caution. Regulators in the US and South Korea do not allow industrial houses to set up banks; Australia, Canada, the UK and Hong Kong allow it but with restrictions on ownership and voting rights. Besides, there has been widespread opposition from several quarters. Many economists and institutions, including Nobel laureate Joseph Stiglitz and the International Monetary Fund, have cautioned against the move, as the risks might outweigh the benefits. Former RBI governor, Y V Reddy, too, has advised carefu...

Hi,  Warm Greetings ! Wish this Holi brings a colorful and joyful life for you & your family. Wish you a Very Happy Colourful Holi.............   Thanking you Regards, Rajesh Kumar Kathpalia ¤ SMC Global 17,Netaji Subhash Marg,Daryaganj, New Delhi-110002 Mobile No 9891645052 Email Id: rajesh.ipo@smcindiaonline.com -- You received this message because you are subscribed to the Google Groups "Product Updates for AMC" group. To unsubscribe from this group and stop receiving emails from it, send an email to Productupdatesforamc+unsubscribe@googlegroups.com . For more options, visit https://groups.google.com/d/optout .

The much-awaited exchange-traded fund (ETF) of select heavyweight Central public sector units was launched by Goldman Sachs today. CPSE-ETF is an open-ended scheme comprising 10 major PSUs such as ONGC, Gail and Coal India. The new fund offer will open for subscription on March 18 for anchor investors (investing above Rs 10 crore) and the next day for non-anchor and retail investors. "Though ETF is a very popular (investment vehicle) globally, it is at a nascent stage in India. "Though ETF is a very popular (investment vehicle) globally, it is at a nascent stage in India. Also, equity ETFs are yet to gain traction here. Through the CPSE-ETF, the Government is trying to make this product popular," Alok Tandon, Joint Secretary, Disinvestment Department, told reporters at the launch here. The new index is another option of Government divesting stake in public sector enterprises, he said. The Government plans to raise up to Rs 3,000 crore from this scheme in the out...

RBI may auction bonds up to Rs 4 lakh cr soon The issuance calendar for marketable dated securities for April-September is expected this month and 60-66 per cent of the gross market borrowing of the government would be completed by September. This might result in government bond auctions of Rs 15,000-17,000 crore a week in the first half of the coming financial year. In last month's vote-on account, Finance Minister P Chidambaram announced gross market borrowing would be Rs 5.97 lakh crore and the net figure would be Rs 4.57 lakh crore for financial year 2014-15. "The borrowing could be anywhere between Rs 15,000-16,000 crore of government securities per week. About 60-62 per cent of the gross market borrowing of Rs 5.97 lakh crore might be completed in the first half. But when the new government comes to power, it could change the borrowing requirement," said Dwijendra Srivastava, head of fixed income, Sundaram Mutual Fund. ALSO READ: Govt to borrow 25 paise ...

MUMBAI: To ensure adequate liquidity in the system at a time when the quarterly advance tax outgo is coinciding with a Rs 30,000-crore term repo maturity, the RBI on Thursday evening announced a buyback of government securities (G-secs) worth about Rs 15,000 crore. This, along with its planned Rs 50,000-crore infusion through a term repo auction, will infuse about Rs 65,000 crore into the system in aggregate. In effect, this will leave about net Rs 35,000 crore funds in the system given the Rs 30,000-crore term repo maturity, market players said. This is expected to take care of the advance tax outgo, they added. Recently, short-term rates had spiked with treasury bill yields going above the 9.10% level and CD rates shooting to double digits. The RBI decision to infuse funds into the system will help bring down short-term rates, bond dealers said. According to the RBI release, it will buy back a host of G-secs maturing in fiscal 2015. - The Times of India on Mobile ...

MUMBAI: With liquidity in the market drying up towards the fiscal close, the practice of 'holding period return' has returned to the certificate of deposit market. Five market participants ET spoke with confirmed the existence of such trades, which may be flouting some regulatory norms and increasing the risk for investors. The mechanism -- also known as "parking" or "river crossing" -- is a financial manoeuvring in which mutual funds connect with cash-rich entities to tide over redemption pressure with the help of intermediaries. It is generally seen towards the end of a financial year and involves four parties: the issuer of CDs, ultimate subscribers, cashrich entities such as banks and companies that provide parking space, and intermediaries. "This typically happens every financial year-end," said Dhirendra Kumar, CEO of mutual fund portal Value Research. "It is an institutional madness because everybody thinks alike." Betw...

Dear All, Warm Greetings ! Here is the link to download the Application form of "NHB Tax Free Bond Tranche II Issue" http://59.144.72.251/IPOPDFGenWeb/brokerOnly.aspx National Housing Bank AAA Rated Tax Free Bond Issue Details ¤ Issue opens:7-Mar-14 ROI- Retail 10 Yrs 8.50%; 15 Yrs 8.93%; 20 Yrs 8.90%. Non-Retail 0.25% less than retail rate. Allot 1st-cum-1st serve. Thanking you Regards, Rajesh Kumar Kathpalia ¤ SMC Global 17,Netaji Subhash Marg,Daryaganj, New Delhi-110002 Mobile No 9891645052 Email Id: rajesh.ipo@smcindiaonline.com -- You received this message because you are subscribed to the Google Groups "Product Updates for AMC" group. To unsubscribe from this group and stop receiving emails from it, send an email to Productupdatesforamc+unsubscribe@googlegroups.com . For more options, visit https://groups.google.com/groups/opt_out .

Raising hopes for easing curbs on gold imports, India's current account deficit (CAD) for third quarter (December 2013) dipped sharply to 0.9 per cent for gross domestic product ($ 4.2 billion) from 6.5 per cent of GDP ($ 31.9 billion) in Q3 ended December 2012 on pick up in exports and moderation in imports especially of yellow metal. CAD was even lower than 1.2 per cent (5.2 billion) for the second quarter Q2 ended September 2013. In tandem with distinct improvement on current account front, the balance of payments moved into positive territory. There was accretion of $ 19.1 billion to foreign exchange reserves in Q3 of 2013-14 as against meager accretion of $ 0.8 billion in Q3 of 2012-13. In July-September 2013, there was a drawdown of $ 10.4 billion. For nine month period ended December 2013, the CAD was within Reserve Bank of India's comfort level of 2.5 per cent. For April-December 2013, the CAD was 2.3 per cent (31.1 billion) as against 5.2 per cent ($ 69.8 bill...

National Housing Bank AAA Rated Tax Free Bonds                                                                                                                       Download Application form ||  Call Back Services ||   Company Profile National Housing Bank (NHB) was established under the Act of Parliament viz. NHB Act in 1988 to operate as a principal agency to promote h...

  Issuer Name  :: National Housing Bank Issue Size : 1000 Crore     RETAIL <= 10 LACS    HNI/ Corp > 10 LACS Opening Date** Tenure Coupon * YTM I.P. Coupon * YTM 7-Mar-14 10 Yrs 8.50% 8.50% Annual 8.25% 8.25% Rating 15 Yrs 8.93% 8.93% Annual 8.68% 8.68% AAA 20 Yrs 8.90% 8.90% Annual 8.65% 8.65% ** Expected Date & yield     Download Application form ||  Call Back Services ||    

NEW DELHI: Overseas investors pumped in Rs 11,337 crore in the Indian debt market last month and were net buyers of bonds for the second straight month this year. Foreign institutional investors (FIIs) were gross buyers of debt securities worth Rs 27,657 crore and sellers of bonds to the tune of Rs 16,320.1 crore, resulting in a net inflow of about Rs 11,337 crore, according to data with the Securities and Exchange Board of India. Besides, FIIs invested Rs 1,404.3 crore in the equity market last month. Foreign investors had made a net investment of Rs 12,609 crore in the debt segment in January. In 2013, FIIs withdrew Rs 50,847 crore (USD 8 billion) from the bond market and infused Rs 1.13 lakh crore (USD 20.1 billion) in equities. They started pulling out from the Indian debt market after the US Federal Reserve first indicated in May that it would taper its stimulus programme, raising concerns that funds for investing in emerging markets may be reduced. The Fed subse...