Archive for September 12th, 2009

India’s FDI Inflows Surge in July :)

FDI-Inflow-India-july

The government has revealed that despite a global financial crisis, the flow of foreign direct investment (FDI) to India during the month of July 2009 has been registered at $3.52 billion, impressive 56.5% higher than the $2.25 billion registered last year.

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However, the inflows in July have been against $2.58 billion during the month of June 2009 and $2.10 billion received during the month of May 2009.

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Moreover, it is said that this raise is an optimistic one if the present fiscal situation of India and world is taken into consideration.

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In addition, it is said that a non-profit company will be encouraging FDI into India and this will act in association with the central and state governments as well as the Federation of Indian Chambers of Commerce and Industry.

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On the other hand, the distinctive feature is the partnership between a private sector organization, the Government of India and state governments is unlike anywhere else in the world.

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However, in order to attract more foreign investments, Indian government on Thursday announced formation of a not-for-profit company β€˜Invest India’.

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Interest Rate Futures Trading Re-Launched in India after 6 years :)

IRF-trading-Nse

Trading in interest rate futures (IRF) kicked off in India after about six years on the National Stock Exchange (NSE)’s platform on Monday.

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The exchange traded financial instrument will give banks and corporates an avenue to hedge their interest rate risks.

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IRFs are contracts traded on the bourses with an agreement to buy or sell an underlying instrument with the date and the price pre-specified.

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The launch of IRF came a year after trading started in currency futures, which gives participants an avenue to hedge against currency risks.

With the launch of IRF, market participants now have the option to hedge foreign currency risks as well as interest rate risk.

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The launch of interest rate derivatives means a lot to the NSE, its constituency of brokers and all economic entities who face interest rate risk,experts quoted on the recent development.

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SBI, Union Bank of India, Central Bank of India, Axis Bank, ICICI Bank, and Standard Chartered Bank actively traded in the IRF market.

It’s the second birth for IRF as the product was launched in 2003 but did not succeed.

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All resident Indians and financial institutions, including

banks and FIIs, can trade in IRF in its new format. πŸ™‚

SEBI Allocates Thousand Crores Govt Debt to FIIs :)

govt-debt

Market regulator SEBI allocated Rs 8,000 crore of government debt to 12 foreign institutional investors and their sub-accounts, including JP Morgan Chase Bank, Barclays Bank, Standard Chartered Bank, in an open bidding platform that took place on the NSE platform last week.

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JP Morgan Chase Bank, Barclays Bank, Standard Chartered Bank and Copthall Mauritius Investment were allocated Rs 800 crore of government debt each, the Securities and Exchange Board of India (SEBI) said in a statement.

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Deutsche Bank International, Citicorp Investment Bank, BNP Paribas, Nomura Mauritius, Schroder International Selection Fund and Bank of America Singapore successfully bid for Rs 750 crore of government debt each.

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These debts were allocated to FIIs after they were left unutilised under the investment limits for government debt set for FIIs.

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The government has set a ceiling of USD 8 billion of government debt for FIIs.

On September 4, SEBI had cut the investment limit for an FII in government debt to Rs 800 crore from Rs 1,000 crore.

“The government wants wider distribution of government debt in the hands of several FIIs, instead of having bigger impact of any single FII on government debt market,”SMC Capitals Equity Head Jagannadham Thunuguntla said.

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Fund Advisors (UK) and DBS Bank were allocated government debt worth Rs 250 crore and Rs 50 crore respectively.

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