Commodities trading

It may open to foreigners


  • The Securities and Exchange Board of India (SEBI) has initiated talks with the Reserve Bank of India (RBI) to allow foreign portfolio investors into the commodity derivatives market.
  • “We are already in talks with the RBI on this matter,” SEBI Chairman U.K. Sinha said on the sidelines of an event on the completion of one year of merger of Forward Markets Commission (FMC) with SEBI. “The FPI regulations emanated from FEMA (Foreign Exchange Management Act) and any kind of foreign money coming into the country has to have RBI approval.”
  • The regulator is also keen to allow other participants such as banks, mutual funds and insurance companies in the commodities market but will do so in a phased manner after talking to other regulatory bodies.

Kotak Mahendra Bank

It customers to get crossborder remittance same day



  • Kotak Mahindra Bank (KMBL) will soon enable its customers to get cross border remittances on the same day through blockchain technology.Talking to The Hindu, Deepak Sharma, Kotak Mahindra Bank’s Chief Digital Officer, said: “We are one of the early banks to start saying blockchain can change lot of things in speed of transaction.
  • If cross border remittance takes two days for money to move from Australia/Europe to a bank account account in India, how can we make it to happen on the same day? There are some pilots we are running in blockchains in two payment corridors there with some international banks and the platform.”
  • According to officials in the banking industry, blockchain works as an electronic payment ledger which is continuously maintained and verified in ‘blocks’ of records. The ledger is shared between parties on computer servers and protected from tampering by cryptography, doing away with the need for a central authority.

Goods & Service Tax

Differences crop up in GST Council’s meeting


  • The GST Council on Friday could not adopt the minutes of its first meeting held earlier this month after a couple of States said that one of the items did not match their understanding of the decision that had been taken.
  • In this round, “ the Council will discuss the two big items of the GST rates and the draft state and central GST bills,” Union Finance Minister Arun Jaitley told a media conference. Mr. Jaitley said that the Council in its second meeting on Friday approved two agenda items.
  • First, five sets of draft rules governing payments, refunds, returns, invoices, debt and credit notes. “These were finalised in anticipation of the GST legislations under which the final rules will be notified.”

Securities and Exchange Board of India

It plans steps to curb business imbalance among commexes


  • The Securities and Exchange Board of India is worried that the ratio of business among the three commodity exchanges is not evenly balanced.“We are working on measures to ensure overwhelming business is not concentrated in a single exchange,” Sebi chairman UK Sinha said. He added this would not imply throttling the growth of any particular exchange or of interfering with market forces.
  • “Both the government and Sebi believe there should be healthy competition with oversight in the interest of the market. This would involve creating objective criteria with laws and rules evenly applied so that others can catch up.”
  • Currently, out of three commodity exchanges, metals and energy bourse MCX has around 85% market share followed by agri exchange NCDEX with 10-12% market share and the rest with NMCE.

India great platform for power demand: Sembcorp


  • Describing India as a growth platform in power sector, a Singapore-based firm has said it will enhance its presence in the country to tap the ever-growing power market. Sembcorp Industries’ big push in India is 2,640-megawatt Sembcorp Gayatri Power Complex in Andhra Pradesh, which opened earlier this year.
  • The USD 3 billion facility has the distinction of being the largest foreign direct investment-driven project on a single site in the thermal energy sector with two 1,320-MW supercritical coal-fired power plants.
  • “India is short of power. We were able to deliver the plants on time,” Sembcorp Industries CEO Tang Kin Fei said. “The project had been delayed and we provided the funding to complete it.”


 It plans India expansion with 2 lakhs cabs


  • The two Indian auto giants, Maruti Suzuki and Tata Motors are on the verge of cashing in on a tremendous sales opportunity, all thanks to the San Francisco based taxi-hailing company Uber Technologies.
  • As a part of a ‘major’ India expansion plan, Uber is planning to purchase as many as two lakh passenger cars over the next two years to be used as cabs for multiplying its operations in India.
  • Now, as both Maruti Suzuki and Tata Motors are already on-board with Uber through pacts that allow both companies to be used for vehicle purchase, finance solutions and driver skill programmes, both of them are likely to bag orders for the same.

State Bank Of India

SBI offers ‘Home Loans’ at reduced interest rates


  • SBI today announced the launch of a special financing scheme ‘Hope Loans’, under which customers can avail credit facility at lower rates.
  • “Hope Loans comes with the added benefit of reduced interest rates that SBI has just announced due to the reduction in the marginal cost of lending rate (MCLR). On an Rs 50 lakh home loan, for example, one would get to save approximately 3.5 lakh for a 30 year tenor compared to the same period last year,” it said in a release.
  • With the reduction in MCLR, the effective interest rate for home loans will be 9.25 per cent for women and 9.30 per cent for men and for auto loans, it would be 9.65 per cent respectively.

India’s largest spectrum auction

It worth Rs 5.63 lakh crore starts; Jio, Vodafone, Airtel and Idea in fray


  • India’s largest-ever spectrum sale where mobile airwaves worth Rs 5.63 lakh crore are up on the block kicked off today.
  • Leading operators, including Reliance Jio, Vodafone, Idea Cellular and Bharti Airtel%, are in the fray for frequencies that are crucial for next-generation telecom services. There is no end limit set by the government for the auction, but the bidding will be between 9 am to 7 pm everyday except on Day 1 when it started at 10 am.
  • Tata Teleservices, Reliance Communications and Aircel are also in the race for buying spectrum. The auction conducted in 2010 for 3G airwaves in the 2100 Mhz band has been the longest that lasted for 34 days.

 Deutsche Bank

It was never in much danger


  • The report of a possible settlement between Deutsche Bank and U.S Department of Justice did not shock Jim Cramer on Friday.”The truth is Deutsche Bank was never in that much danger. So, why was everyone pretending like this company was the German Lehman, code-name for disaster?” the “Mad Money” host asked.
  • Instead, the lack of accountability on Wall Street and in the media bothered Cramer. If commentators predict something positive and they are wrong, they get hounded on it for the rest of their lives. But no one ever gets punished for being too negative.
  • “The next time someone tells you the sky is falling and we are facing a crisis that could be the next Lehman, please, I’m begging you, take it with a grain of salt, if not a whole box of Morton’s,” Cramer said.

Reserve Bank Of India

Banks can’t publish defaulters’ photo randomly


  • He RBI said on Thursday lenders can publish photographs of only those borrowers in newspapers who have been declared wilful defaulters as per the central bank’s guidelines.
  • While asking the banks not to indiscriminately publish photographs of defaulters and guarantors in newspapers, it directed the lending institutions to formulate a policy in this regard.
  • In view of the “sensitivity involved and need to prevent” the publishing of photographs of defaulting borrower/guarantor in an indiscriminate manner, the RBI said photographs of only those borrower who have been declared as wilful defaulters could be published.


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