Archive for January 5th, 2010

RBI Raised The Limits of Funds Transfer/Payment via Mobile Phones

RBI Raised The Limits of Funds Transfer/Payment via Mobile Phones

.

RBI has increased the cap on transferring funds or payments through mobile phones to Rs 50,000 as per the latest notification issued by them in the last week of December,2009.

.

Earlier to that, the ceiling for fund transfer against shopping was at Rs 5,000 and against purchasing of goods and services was at Rs 10,000.

.

“Banks are now permitted to offer this (mobile banking) service to their customers subject to a daily cap of Rs 50,000 per customer for both fund transfer and transactions involving purchase of goods/services,” RBI said in a notification.

.

Under the scheme, an account holder can transfer money through mobile to another person, who will receive the cash either through an ATM or a business correspondent.

.

The RBI has also pegged the limit for cash transfer through ATMs or business correspondents at Rs 5,000 per transaction, subject to a monthly ceiling of Rs 25,000.

.

Out of 32 banks that have been allowed by RBI to provide mobile banking facility, 21 lenders have already started these services.

.

Earlier in December itself, RBI deputy governor K C Chakrabarty had hinted at raising the limit, by pointing out that transaction limits of Rs 5,000 and Rs 10,000 were not sufficient for buying airline tickets.

.

In October,2008, RBI had issued operating guidelines for banks to transact via mobile phones.

.

RBI had said the services would be restricted only to customers of banks and holders of debit and credit cards.

.

It asked banks to report suspicious mobile banking transactions to Financial Intelligence Unit-India, as was the practice for normal banking transactions.

.

RBI said that rupee-based domestic services would be provided and “use of mobile banking services for cross border inward and outward transfers is strictly prohibited.”

.

Corporate India set to prefer QIPs for Funds Raising in 2010

Corporate India set to prefer QIPs for Funds Raising in 2010

.

Merchant bankers are of view that Qualified institutional placements (QIPs) are expected to still be the preferred route to raise money in 2010.

.

Earlier, QIPs  had gained traction during the middle of the year but ran into valuation headwinds in the last quarter of 2009.

.

In 2009, Indian companies had raised close to Rs 33,000 crore by way of 45 QIP issuances.

.

Also, about 33 QIP issuances are trading above the issue price, while 12 issuances are trading below the issue price.

.

2009 was the year of the QIPs.

QIPs are expected to rule the roost, as there is serious interest and appetite in the overseas markets for instruments like converts/ADRs/GDRs.

.

QIP, which was introduced in May 2006, picked up momentum in 2007 and then stagnated in 2008 when the market was in a bear grip.

.

Delhi-based real estate company Unitech successfully raised $325 million through a QIP in mid-April 2009.

.

Later, Indiabulls Real Estate and PTC India raised Rs 2,657 crore and Rs 500 crore, respectively, through such placements.

.

QIP is a private placement by which a company sells its shares to qualified institutional buyers (QIBs) on a discretionary basis with the two-week average price being the floor.

.

In a QIP, unlike an IPO or PE investment, the window is shorter (four weeks) and money can be raised quickly.

.

According to a study by SMC Capital, the 45 QIP issuances have resulted into a mark-to-market (MTM) return of about more than 21.60 per cent, amounting to a profit of about Rs 7,050 crore.

.

Some of the QIP issuances trading significantly above the issue price are Unitech (first round of QIP issuance), Emami, Shree Renuka Sugars, HCC , United Spirits, Dewan Housing, etc.

.

Those trading below the issue price are Network 18 Fincap, REI Agro, Indiabulls Financial Services, Punj Lloyd, Delta Corp.

.

“The overall positive listing performance of QIPs in 2009 will encourage investors as well as Indian corporates to access this route for fund-rising in an aggressive manner,” says Jagannadham Thunuguntla, equity head, SMC Capitals.

.

QIPs had hit a pause button when a large percentage of them ran into valuation headwinds, resulting in companies raising a much smaller amount than what was initially proposed.

.

🙂

.

Political will needed to contain pulse price rise

Hello Friends here we come up with the Latest Agri Commodities updates from various parts of the country.

.

political will needed to contain pulse price rise

.

Political will needed to contain pulse price rise –

.

As part of measures to curb price rise, the planning commission has mooted the idea of encouraging formation of pulses grower’s federation which will trade on commodity future exchanges.

.

The commission seems to believe such a trading plan will rein in price rise.

Stagnant acreage, low yields  and unsteady output have characterized pulse production for over two decades.

.

On the other hand, demand for pulses has been rising steadily because of rising incomes and demographic pressure.

.

🙂

.

In Other major Commodities Updates, we can read that palm oil climbed to the highest in more than seven months.

.

Palm oil extends 2009 rally on crude oil rise –

.

Palm oil climbed to the highest in more than seven months, extending the best annual gain in 12 years, as gains in crude oil prices increased its appeal as a substitute used in biofuels.

.

Palm oil rallied 56 percent last year on rising demand from India and China, the top consumers, and amid tight supplies of soyabean oil because of drought in south America.

.

Oil surged 78 percent in 2009, the biggest annual advance in a decade, and soyabean oil rose 21 percent.

.

March delivery palm oil  gained as much as 1.2 percent to 2,696 ($788) a metric ton on the Malaysia derivatives exchange, highest since may 15 in intra day trading.

It traded at 2,690 ringgit at 5:13 local time.

.

🙂

.

Note : For More Latest Industry, Stock Market and Economy News and Updates, please Click Here