Friday, August 26, 2016
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RBI allows banks to raise funds via masala bonds

26 Aug 2016 | 12:38 AM

MUMBAI: The RBI today announced a slew of changes in fixed income and currency markets such as allowing lenders to issue ‘masala bonds’ and to accept corporate bonds under the liquidity adjustment facility (LAF).

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Mumbai, August 25

The RBI today announced a slew of changes in fixed income and currency markets such as allowing lenders to issue ‘masala bonds’ and to accept corporate bonds under the liquidity adjustment facility (LAF).

“These measures are intended to further deepen market development, enhance participation, facilitate greater market liquidity and improve communication,” an RBI press note said.

To encourage overseas rupee bonds market, banks are being permitted to issue rupee-denominated bonds overseas (masala bonds) for their capital requirements and for financing infrastructure and affordable housing.

Currently, masala bonds can be issued only by corporates and non-banking lenders like HFCs and large NBFCs. Masala bonds are instruments through which Indian entities can raise funds by accessing overseas capital markets, while the bond investors hold the currency risk.

These will constitute for additional tier-I and tier-II capital for the lenders, it said, adding such overseas bonds can also be issued to finance infrastructure and affordable housing under a current dispensation which applies for foreign currency bond raising.

It can be noted that so far two Indian corporates — HDFC and NTPC — have made use of this facility to raise over Rs 5,000 crore, but the segment was not open to banks.

The RBI will seek amendments to enable the central bank to accept corporate bonds under the LAF which is used to bridge temporary liquidity issues by lenders, it said.

Stating the absence of an overarching ceiling on total borrowing by a corporate entity from the banking system has resulted in banks collectively having very high exposures to some of the large corporates, the RBI will come out with draft guidelines on the ‘large exposure framework’, it said.

To give an impetus to the corporate bonds market, RBI has also decided to expand limit of partial credit enhancement (PCE) provided by banks.

“The aggregate PCE that may be provided by the financial system for a given bond issue will be increased from the present 20% to 50% of the bond issue size subject to the PCE provided by any single bank not exceeding 20% of the bond issue size and the extant exposure limits,” the RBI said. pti

Rajan, Subramanian ‘foisted’ on India by US, says Swamy

26 Aug 2016 | 12:38 AM

NEW DELHI: The BJP Member of Parliament, Subramanian Swamy, today continued with jibes at RBI Governor Raghuram Rajan and Chief Economic Adviser Arvind Subramanian, calling them “micro minded” management degree holders “foisted” by America.

US nominates Jim Yong as World Bank chief for 2nd term

US nominates Jim Yong as World Bank chief for 2nd term

26 Aug 2016 | 12:38 AM

WASHINGTON: The US today nominated Jim Yong Kim to be the World Bank President for a second term, saying he has “ably led” the global development lender’s response to major crises and helped it focus on innovative ways to challenge issues like poverty and climate change.

Mahindras to increase capacity at tractor unit in Mohali

26 Aug 2016 | 12:38 AM

CHANDIGARH: The Swaraj Division of tractor-major Mahindra & Mahindra is planning to increase the tractor manufacturing capacity by 10-15% at its Mohali unit in Punjab.

Unified Payments Interface goes live with 21 banks

26 Aug 2016 | 12:38 AM

NEW DELHI: The use of a smartphone for payments has become a reality with the National Payments Corporation of India (NPCI), the umbrella organisation for all retail payments system in India, announcing that the Unified Payments Interface (UPI) is going live for customers with 21 banks.

Airtel upgrades over 9,000 network sites

26 Aug 2016 | 12:38 AM

NEW DELHI: Under the initiative, customers can see network coverage and signal strength at any location across India through a colour-coded interface that shows if coverage is excellent, good, moderate or non-existent

Adani’s proposal for pulses processing unit rejected

26 Aug 2016 | 12:38 AM

NEW DELHI: The government has rejected the proposal of Adani Food and Agro-processing Park to set up a pulses processing unit in a SEZ on the grounds that export of the commodity is prohibited.

Goldman Sachs pegs India’s GDP growth at 7.9%

26 Aug 2016 | 12:38 AM

NEW DELHI: Bq: For the fiscal year 2016-17, we forecast real GDP to grow by 7.

Jet launches ‘Priority Advantage’ service

26 Aug 2016 | 12:38 AM

Jet Airways on Thursday introduced ‘Priority Advantage’ service for economy class.

US nominates Jim Yong Kim as World Bank president for 2nd term

US nominates Jim Yong Kim as World Bank president for 2nd term

25 Aug 2016 | 2:34 PM

WASHINGTON: The US on Thursday nominated Jim Yong Kim to be the World Bank president for a second term, saying he has “ably led” the global development lender’s response to major crises and helped it focus on innovative ways to challenge issues like poverty and climate change.

‘Jet didn’t hire me, faulted my personality’

‘Jet didn’t hire me, faulted my personality’

25 Aug 2016 | 2:09 AM

TV actress-turned- politician Smriti Irani on Wednesday said her application for cabin crew position was rejected by Jet Airways, which felt she didn’t have a good personality

Briefly

Air Arabia offers tickets on EMIs

25 Aug 2016 | 12:40 AM

New Delhi: Air Arabia on Wednesday announced the launch of "comprehensive Equated Monthly Instalment (EMI) payment options for Indian travellers".

Nod to Indo-Cyprus double taxation avoidance pact

25 Aug 2016 | 12:40 AM

NEW DELHI: In a major step in the fight against tax evasion, the Union Cabinet today gave its approval to the revised DTAA between India and Cyprus that provides for source-based taxation of capital gains on transfer of shares instead of one based on residence.

BSNL offers unlimited 3G plan for Rs 1,099, cuts rate by 50%

25 Aug 2016 | 12:40 AM

New Delhi: To counter competitors, state-run BSNL today announced a national unlimited 3G mobile data plan for Rs 1,099 and doubled the data usage limit in some existing plans.

Idea denies merger talks, stock slips nearly 3%

25 Aug 2016 | 12:40 AM

New Delhi: Shares of Idea Cellular fell by nearly 3% today after the company denied reports that the telecom firm is exploring options and is in talks for a possible merger with Vodafone.

TCS settles Orange County lawsuit for $26 million

25 Aug 2016 | 12:40 AM

New Delhi: Tata Consultancy Services and its US affiliate have paid Orange County, California, $26 million to settle a lawsuit over what the latter termed as a “failed replacement” to the county’s automated property tax system.

DoT resolves over 1,800 complaints on ‘Twitter Sewa’

25 Aug 2016 | 12:40 AM

New Delhi: In just three weeks of Communications Minister Manoj Sinha launching ‘Twitter Sewa’ for registration and resolution of complaints, over 2,000 telecom-related complaints have been received through the social media platform and over 1,800 of them have already been resolved.

Soon, India to have its own island tourist destinations

25 Aug 2016 | 12:40 AM

NEW DELHI: India will have its own fabulous tourist destinations like Pattaya and Hawaii islands soon, as Prime Minister Narendra Modi has assigned a task to the NITI Aayog to first identify such potential landmasses within the country and work out a detailed plan to turn them into places of global attraction.

Board to empower customers with copy of banking code guidelines

25 Aug 2016 | 12:40 AM

CHANDIGARH: Perturbed over low awareness among the banks’ customers about their rights, which often leads to non-observance of the Fair Practices Code and non-adherence by the banks, the Banking Codes and Standard Board of India (BCSBI) will write a letter to the chairmen of all member banks to hand over banking code copy in a readable font (font size of at least 10) to customers.

Railway infra projects worth Rs 21,000 cr get CCEA approval

Railway infra projects worth Rs 21,000 cr get CCEA approval

25 Aug 2016 | 12:40 AM

NEW DELHI: Intending to give a major push to the Railways’ effort to de-congest the New Delhi-Chennai and Howrah-Mumbai sectors, the government today gave its nod to nine projects, which included doubling and tripling of lines, worth about Rs 21,000 crore.

Tatas keen to invest in Bengal

Tatas keen to invest in Bengal

25 Aug 2016 | 12:40 AM

KOLKATA: Tata group will invest in West Bengal as and when opportunities arise taking an apolitical stance in business, Chairman Cyrus Mistry said today.

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