SEBI attaches Sahara properties

The regulator Securities and Exchange Board of India finally ordered attachment of assets ofSahara India Real Estate Corporation and Sahara Housing Investment Corporation.

The capital markets regulator has also ordered a freeze on all bank and demat accounts of Subrata Roy Sahara, Vandana Bhargava, Ravi Shanker Dubey and Ashok Roy Choudhary -- the promoters and directors of the two companies with immediate effect.

RBI releases Draft Report of its Working Group on Gold

The Reserve Bank of India (RBI) today placed on its website, the Draft Report of the Working Group to Study the Issues Related to Gold and Gold Loans by Non-Banking Finance Companies (NBFCs) in India (Chairman: Shri K.U.B.Rao, Adviser, Department of Economic and Policy Research). The Reserve Bank has sought comments on the draft report from stakeholders and public. The comments may be mailed up to Friday, January 18, 2013.

The Working Group was assigned with the task of studying whether large gold imports of India are a threat to external stability. The Working Group was also asked, among other things, to study the recent trends in gold loans extended by large gold loan NBFCs and see whether there are any systemic stability issues that arise out of the interconnectedness between banks and gold loans NBFCs. The Working Group followed an eclectic approach to address the terms of reference assigned by undertaking technical exercises to study the relationship among various related economic variables; and to conduct surveys through intense dialogue with all the stakeholders to firm up related views. Existing regulations related to NBFCs-Non-Deposit taking (ND) - Systemically Important (SI) sector were reviewed and recommendations were offered.

Gold likely to hold 'steady-to-firm' in 2013

Gold is likely to hold steady-to- firm in 2013 and could reach Rs 33,000-level as economic growth prospects improve and certain international factors push up the commodity's price, market experts have said.

In the long term, gold looks firm with most central banks pushing liquidity into the markets and increasing their loading of the yellow metal, Kotak Commodity Services analyst Madhavi Mehta said.

RBI announces rate of interest on Floating Rate Bonds, 2017

The rate of interest on the Floating Rate Bonds, 2017 (FRB, 2017) applicable for the half-year (January 2, 2013 to July 01, 2013) shall be 8.38 per cent per annum.

It may be recalled that the rate of interest on the FRB, 2017 was set at a mark-up (as decided in the auction held on July 1, 2002) over and above the variable base rate. The variable base rate for payment of interest shall be the average rate (rounded off up to two decimal places) of the implicit yields at cut-off prices of the last six auctions of Government of India 364-day Treasury Bills held up to the commencement of the respective half yearly coupon period which works out to be 8.04 per cent. The mark-up decided in the auction held on July 1, 2002 was (+) 0.34 per cent (plus 34 basis points). The coupon rate has thus been fixed at 8.38 per cent.

FIIs pour $3.4 billion in December

Overseas investors have pumped in $3.4 billion in the Indian stock market so far this month, taking the total inflow for 2012 to a staggering $23 billion. 

During December 3-21, foreign institutional investors (FIIs) were gross buyers of shares worth Rs 57,024 crore and sellers of equities worth Rs 38,644 crore - translating into a net inflow of Rs.18,380 crore ($ 3.4 billion), according to Sebi data.

Gold down 6.38% from lifetime high on other investor options

Preference for alternate safe haven options like equities and other securities by investors has taken a toll on gold prices, which dropped by as much as 6.38 per cent since hitting a life-time high of Rs 32,975 per 10 grams here last month. 

In the Delhi bullion market, the precious metal prices touched a six-week low of Rs 30,870 on Friday, a loss of Rs Rs 2,105, from its life-time high of Rs 32,975 on November 27, tracking a weak trend in the global markets. 

Sebi hikes deposit for brokers

Market regulator Sebi on Wednesday increased the minimum deposit that a stock broker should maintain to trade on the bourses up to Rs 50 lakh from Rs 10 lakh earlier. The hike was mainly aimed at putting in a safeguard for all those brokers who offer high frequency algorithmic trading — the buy-sell transactions that are initiated by computers rather than through human intervention. 

Save Tax under Rajiv Gandhi Equity Savings Scheme u/s 80CCG

The deduction under the Rajiv Gandhi Equity Savings Scheme shall be available to a new retail investor who complies with the conditions of the Scheme and whose gross total income for the financial year in which the investment is made under the Scheme is less than or equal to  ten lakh rupees.

RBI Reference Rate for US $ and Euro

The Reserve Bank of India’s Reference Rate for the US dollar is Rs.54.3405 and the Reference Rate for Euro is Rs.70.1320 on December 10, 2012. The corresponding rates for the previous day (December 7, 2012) were Rs.54.2018 and Rs.70.2175 respectively. 

Scheme for Collection of Dues of (i) CBDT (ii) CBEC (iii) DM Account - Reporting and Accounting of March Transactions - Financial Year 2011-2012 – CORRIGENDUM

RBI/2011-2012/468
DGBA.GAD.No.H - 6240/42.01.029/2011-12

   March 21, 2012

The Chairman & Managing Director /
The Chief Executive Officer
All Agency Banks

Dear Sir / Madam,

Scheme for Collection of Dues of (i) Central Board of Direct Taxes (ii) Central Board of Excise and Customs (iii) Departmentalised Ministries Account - Reporting and Accounting of March Transactions - Special Arrangements - Financial Year 2011-2012 - CORRIGENDUM

Please refer to our Circular RBI/2011-2012/458 (DGBA.GAD.No.H-6160/42.01.029/2011-12 dated March 19, 2012) on the captioned subject.

Foreign Exchange Management (Deposit) Regulations, 2000 - Credit to Non Resident (External) Rupee Accounts

RBI/2011-12/465
A. P. (DIR Series) Circular No.95

March 21, 2012

To

All Category-I Authorised Dealer Banks and Authorised banks

Madam / Sir,

Foreign Exchange Management (Deposit) Regulations, 2000 - 
Credit to Non Resident (External) Rupee Accounts

Attention of Authorised Dealer Category - I (AD Category-I) banks is invited to Regulation 5(6) of Foreign Exchange Management (Borrowing or Lending in Foreign Exchange) Regulations, 2000 notified vide Notification No. FEMA 3/2000-RB dated May 3, 2000, as amended from time to time, in terms of which, an individual resident in India may borrow a sum not exceeding USD 250,000/- or its equivalent from her / his close relatives outside India, subject to the conditions mentioned therein.

RBI - Special Clearing on March 31, 2012

RBI/2011-12/462
DPSS.CO.CHD.No./1732/03.01.03/2011-2012

March 20, 2012

The Chairman and Managing Director / Chief Executive Officer
All Scheduled Commercial Banks including RRBs / UCBs /
State Co-operative Banks / District Central Co-operative Banks

Madam / Dear sir,

Special Clearing on March 31, 2012

With a view to facilitating accounting of all the Government transactions of the current financial year (2011-12) by March 31, 2012, the National Clearing Cells functioning under the Regional Offices of Reserve Bank of India have been advised to conduct "Special Clearings" with same day return clearing in the evening / night of March 31, 2012. They have also been advised to ensure that the Clearing Houses under their jurisdiction conduct these clearings, keeping in view the operational convenience at the local centres, so that instruments relating to Government revenue received from members of the public are realised and the proceeds are credited to Government account by March 31, 2012.

RBI - Special Clearing on March 31, 2012

RBI/2011-12/462
DPSS.CO.CHD.No./1732/03.01.03/2011-2012

March 20, 2012

The Chairman and Managing Director / Chief Executive Officer
All Scheduled Commercial Banks including RRBs / UCBs /
State Co-operative Banks / District Central Co-operative Banks

Dear Madam / Sir,

Special Clearing on March 31, 2012

With a view to facilitating accounting of all the Government transactions of the current financial year (2011-12) by March 31, 2012, the National Clearing Cells functioning under the Regional Offices of Reserve Bank of India have been advised to conduct "Special Clearings" with same day return clearing in the evening / night of March 31, 2012. They have also been advised to ensure that the Clearing Houses under their jurisdiction conduct these clearings, keeping in view the operational convenience at the local centres, so that instruments relating to Government revenue received from members of the public are realised and the proceeds are credited to Government account by March 31, 2012.

Annual Closing of Government Accounts - Transactions of Central / State Governments - Special Measures for 2011-12

RBI/2011-12/457
DGBA.GAD.No.H - 6150/42.01.029/2011-12

March 19, 2012

The Chairman & Managing Director/The Chief Executive Officer
All Agency Banks

Dear Sir/Madam,

Annual Closing of Government Accounts - Transactions of Central / State 

Governments - Special Measures for the Current Financial Year (2011-12)

With a view to facilitating accounting of all Government transactions of the current financial year (2011-12) by March 31, 2012 and meeting the probable rush of tax-payers towards the end of the year, it has been decided in consultation with the Controller General of Accounts, Government of India that all Regional Offices of Reserve Bank of India (RBI) and branches of Agency banks conducting Government business will suitably extend the banking hours to conduct Government business by keeping their counters open for the purpose on March 30 and 31, 2012 to facilitate receipt of Government revenue from members of public even at late hours.

Investment in Indian Venture Capital Undertakings and /or domestic Venture Capital Funds by SEBI registered FVCI

RBI/2011-12/452
A.P. (DIR Series) Circular No.93

March 19, 2012

To,
All Category – I Authorised Dealer banks

Madam / Sir,

Investment in Indian Venture Capital Undertakings and /or domestic Venture
Capital Funds by SEBI registered Foreign Venture Capital Investors

Attention of Authorised Dealers Category – I (AD Category - I) banks is invited to Schedule 6 to the Foreign Exchange Management (Transfer or Issue of Security by a Person Resident outside India) Regulations, 2000 notified vide Notification No. FEMA 20 / 2000 -RB dated May 3, 2000 as amended from time to time, in terms of which, a SEBI registered Foreign Venture Capital Investor (FVCI) may invest in equity, equity linked instruments, debt, debt instruments, debentures of an Indian Venture capital Undertaking (IVCU) or of a Venture Capital Funds (VCF) through Initial Public Offer or Private Placement or in units of schemes / funds set up by a VCF, subject to such terms and conditions mentioned therein.

RBI - Rates of Interest - RIDF and other funds

RBI/2011-12/451
RPCD.CO. Plan.BC.66/04.09.54/2011-12

March 16, 2012

The Chairman/Managing Director/
Chief Executive Officer
(All Scheduled Commercial Banks excluding RRBs)

Dear Sir/Madam,

Rates of Interest - RIDF and other funds

Consequent upon the revision of Bank Rate from 6 percent to 9.5 percent vide RBI's notification dated February 13, 2012, the interest rates applicable to RIDF and other similar funds with SIDBI and NHB have been reviewed and it has been decided as under:-

RBI - Non-Reckoning Fixed Deposits with Banks as Financial Assets

RBI/2011-12/446DNBS (PD)CC.No.259 /03.02.59/2011-12

March 15, 2012

All Non Banking Financial Companies
(excluding Residuary Non Banking Companies)

Dear Sir,

Non- Reckoning Fixed Deposits with Banks as Financial Assets

In terms of Section 45IA (1) of the RBI Act 1934, no non-banking financial company shall commence business or carry on the business of a non-banking financial institution without (a) obtaining a certificate of registration (CoR) from the Reserve Bank and (b) having a net owned fund of twenty five lakh rupees, which was increased to Rs. 200 lakh with effect from April 21, 1999.

RRBs/StCBs/DCCBs – Bank Rate Increased

RBI/2011-12/445
RPCD.CO.RRB.RCB.BC.No.63/07.40.06/2011-12

March 15, 2012

The Chairmen/Chief Executive Officers,
All Regional Rural Banks / State and Central Co-operative Banks 

Dear Sir,

Bank Rate

Section 49 of the Reserve Bank of India Act, 1934 requires the Reserve Bank to make public (from time to time) the standard rate at which it is prepared to buy or re-discount bills of exchange or other commercial paper eligible for purchase under that Act.

RBI - Anti-Money Laundering (AML)/Combating of Financing of Terrorism (CFT) - Standards

RBI/2011-12/443
DNBS(PD).CC. No 257/03.10.42 /2011-12

March 14, 2012

All Non Banking Financial Companies /
Residuary Non Banking Companies

Dear Sir,

Anti-Money Laundering (AML)/Combating of Financing of Terrorism (CFT) - Standards

Please refer to DNBS(PD).CC.No.242/03.10.42/ 2011-12 and DNBS (PD).CC.No.244 /03.10.42/2011-12 dated September 15, 2011 and September 22, 2011 respectively on risks arising from the deficiencies in AML/CFT regime of certain jurisdictions.

Investment by FIIs/NRIs/PIOs under PIS : M/s The South Indian Bank Limited

The Reserve Bank of India has today notified that the aggregate net purchases of equity shares in M/s The South Indian Bank Limited by Foreign Institutional Investors (FIIs)/Non Resident Indian (NRIs)/Persons of Indian Origins (PIOs) in primary/secondary markets under Portfolio Investment Scheme (PIS) have reached the trigger limit. Therefore, further purchases of equity shares of this company would be allowed only after obtaining prior approval of the Reserve Bank of India.

R. R. Sinha
Deputy General Manager

Press Release: 2011-2012/1453