SEBI to permit trading in interest rate futures by December-January
Market regulator SEBI on Tuesday said it will allow trading in exchange traded interest rate futures by December-January, a move which will help banks and FIIs manage interest rate risks.
"Exchange traded interest rate futures will be permitted by December-January, latest by January," SEBI Whole-Time member T C Nair told reporters here.
Initially, these futures contracts would be based on 10-year government bond yield, which should be settled by physical delivery.
Recently, an RBI-appointed technical panel recommended introduction of futures contracts, suggesting that as market evolves, exchanges may consider introducing contracts on various other government securities and had sought public comments.
The group had also recommended that these products be exempted from securities transactions tax to ensure symmetry between cash market in government and other securities and interest rate futures.
The need for interest rate futures arose because of failure of exchange traded interest rate futures contracts introduced by the NSE in 2003.
Earlier in 1999, the RBI had also taken initiative to introduce over-the-counter interest rate futures. Taking lessons from experiences of those products, the RBI panel recommended that futures contract initially be based on the 10-year government security yield.
It observed that banks, insurance companies, primary dealer and provident funds, who among them carry almost 88 per cent of interest rate risk on account of exposure to government securities, need a credible institutional hedging mechanism.
Avdhoot Investment
Showing posts with label Government. Show all posts
Showing posts with label Government. Show all posts
Sep 4, 2008
Max New York India Health Life Insurance
Max India inks pact with UK firm for health insurance business
Private insurance-provider Max India has entered into an agreement with the UK-based Bupa to set up a standalone health insurance company.
The joint venture partner British United Provident Fund (Bupa) will hold 26 per cent of the stake in Max Bupa Health Insurance Ltd with Max holding the rest. However, Bupa will have an option and right to go up to maximum amount of FDI allowed by the government in case FDI reforms take place, Max India Chairman Analjit Singh said here today.
The initial share capital of the JV will be Rs 100 crore and the business is expected to be up and running in 12-15 months, Singh added.
He said, "We are not in a hurry to launch (the JV) immediately. We want to have ground preparation first which will take at least 12-15 months".
The company has expertise in healthcare facilities, which, at present, has a customer base of 2.7 million, he added.
Singh said the products will be rolled-out phase wise as "that would be prudent for us". It will be a phased, region-wise roll-out that would make the presence of the company efficient.
The JV plans to consider all possibilities like individual, retail and group insurance and is targeting one million customers initially.
Pointing out the favourable demographics of India, Director Max India Anuroop Singh said the country has huge potential for health insurance as the average age is expected to be 29 years in the next 12 years with people getting more spending power
Avdhoot Investment
Private insurance-provider Max India has entered into an agreement with the UK-based Bupa to set up a standalone health insurance company.
The joint venture partner British United Provident Fund (Bupa) will hold 26 per cent of the stake in Max Bupa Health Insurance Ltd with Max holding the rest. However, Bupa will have an option and right to go up to maximum amount of FDI allowed by the government in case FDI reforms take place, Max India Chairman Analjit Singh said here today.
The initial share capital of the JV will be Rs 100 crore and the business is expected to be up and running in 12-15 months, Singh added.
He said, "We are not in a hurry to launch (the JV) immediately. We want to have ground preparation first which will take at least 12-15 months".
The company has expertise in healthcare facilities, which, at present, has a customer base of 2.7 million, he added.
Singh said the products will be rolled-out phase wise as "that would be prudent for us". It will be a phased, region-wise roll-out that would make the presence of the company efficient.
The JV plans to consider all possibilities like individual, retail and group insurance and is targeting one million customers initially.
Pointing out the favourable demographics of India, Director Max India Anuroop Singh said the country has huge potential for health insurance as the average age is expected to be 29 years in the next 12 years with people getting more spending power
Avdhoot Investment
Aug 20, 2008
Savings bonds can be collateral: FM
NEW DELHI: Indian savings bonds could now be used as collateral for obtaining loans from banks, the finance ministry said late on Tuesday.
The scheme is applicable for 7 percent Savings Bonds issued in 2002, 6.5 percent Savings Bonds issued 2003 and for 8 percent Savings Bonds issued in 2003, it said.
Savings bonds were issued by the government in those years as a saving avenue for officials who took voluntary retirement or retired at the time. for full story click
The scheme is applicable for 7 percent Savings Bonds issued in 2002, 6.5 percent Savings Bonds issued 2003 and for 8 percent Savings Bonds issued in 2003, it said.
Savings bonds were issued by the government in those years as a saving avenue for officials who took voluntary retirement or retired at the time. for full story click
Aug 2, 2008
Govt starts download of 3G bids, number switch
NEW DELHI: India's 300-million mobile subscribers have reasons to cheer. From mid-2009 they will be able to access third-generation (3G) services such as high-speed internet, interactive gaming, and instant downloads of movies, video clips and music on their mobile phones. And that’s not all. They will also have the option of changing their telecom operator without having to change their mobile numbers.
After nearly two years of debate and controversy, the government on Friday finally announced its plans for a global auction of third-generation (3G) radio frequencies, a move that could bring in billions of dollars for the government. The government also announced the introduction of mobile number portability (MNP) as well as a separate auction for broadband wireless access (BWA) services spectrum, popularly called WiMAX.
All this will of course come at a price for the consumer. Monthly phone bills went up by as much as 50% for subscribers in some countries when they switched from the normal 2G services to 3G services. Moreover, many subscribers may have to upgrade their handsets to avail 3G services.
The starting price for a 3G-enabled handset is about Rs 6,000 compared to an entry level phone of Rs 700. Finally, India is primarily a ‘voice’ market and it remains to be seen how many subscribers take to 3G-driven data services. It took nearly eight to ten years for customers in Europe to adopt 3G services in a big way.
3G rollout in India may be impacted by a parallel WiMax rollout. WiMax, an evolving technology is considered a threat to 3G as it offers data download speeds that are 10-30 times faster than 3G. And so while consumers can choose between opting for the two services, telcos would probably want to offer both services
Avdhoot Investment
After nearly two years of debate and controversy, the government on Friday finally announced its plans for a global auction of third-generation (3G) radio frequencies, a move that could bring in billions of dollars for the government. The government also announced the introduction of mobile number portability (MNP) as well as a separate auction for broadband wireless access (BWA) services spectrum, popularly called WiMAX.
All this will of course come at a price for the consumer. Monthly phone bills went up by as much as 50% for subscribers in some countries when they switched from the normal 2G services to 3G services. Moreover, many subscribers may have to upgrade their handsets to avail 3G services.
The starting price for a 3G-enabled handset is about Rs 6,000 compared to an entry level phone of Rs 700. Finally, India is primarily a ‘voice’ market and it remains to be seen how many subscribers take to 3G-driven data services. It took nearly eight to ten years for customers in Europe to adopt 3G services in a big way.
3G rollout in India may be impacted by a parallel WiMax rollout. WiMax, an evolving technology is considered a threat to 3G as it offers data download speeds that are 10-30 times faster than 3G. And so while consumers can choose between opting for the two services, telcos would probably want to offer both services
Avdhoot Investment
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