Recent rulings from banking, capital markets and telecom sector to affect you
Recent rulings from banking, capital markets and telecom sector to affect you
RBI has allowed trading in two-year and five-year
interest rate futures. The futures contracts will be on two-year and
five-year notional coupon bearing Indian government securities.
Print Edition: 28 Feb, 2012
A look at recent rulings which can affect you -
BANKING
The Reserve Bank of India has allowed trading in two-year and five-year interest rate futures. The futures contracts will be on two-year and five-year notional coupon bearing Indian government securities, respectively. The contracts will be settled in cash and the final settlement price will be based on the yields of the basket of securities underlying each interest rate futures contract specified by the respective stock exchange.
The apex bank has reiterated that banks will have to pay penal interest (existing repo rate plus 2 percentage points) in case of delays in crediting the beneficiary customer's account or in returning the uncredited amount to the remitter for transactions through National Electronic Funds Transfer (Neft).
CAPITAL MARKET
The Securities and Exchange Board of India has decided to reduce the time taken in the share buyback process through tender offers from 63-114 days now to 34-44 days. In the tender route, companies offer to buy a certain number of shares at a specific price, directly from shareholders in proportion of their holding. In the open-market route, a company buys back shares through stock exchanges, or a book-building process.
TELECOM
To facilitate comparison of mobile tariff plans, the Telecom Regulatory Authority of India has asked service providers to publish all plans and tariff rates available in a service area in tabular formats. The charts will be available at all service centres and retail outlets as well as on the website of telecom firms.
