TopNews

The Reserve Bank of India restricted banks investment in liquid and short term schemes of mutual funds (MF). The RBI has announced that the banks can invest up to 10% of the last year’s net, as according to the liquid or short term debt schemes of MF, but they should not exceed the time span by a year.

The RBI stated that the banks which have invested more than the 10% profit in such schemes will not be permitted to fulfill the condition at this point of time, but they have to do it within six months from the date of announcement.

This decision of RBI can bring a negative effect to the Assets Under Management (AUM) of fund houses which majorly depends on the money flows from banks.

It has been reported that IDBI Bank has bought 10% stake in Universal Commodity Exchange (UCX). The bank’s Chairman and Managing Director R. M. Malla said, “The idea behind acquiring equity is to push agricultural loan through this venture”. IDBI is the only bank having stake in UCX and therefore, all the transactions will be done through IDBI.

On 5th of July, 2011 the Telecom Disputes Settlement & Appellate Tribunal (TDSAT) has asked the Department of telecom (DoT) to free the Idea Cellular from the hefty fine of Rs 250 crore. DoT imposed a fine upon Idea after finding it guilty for holding overlapping mobile permits in five telecom circles.

Idea has been in the news since it acquired Spice Communications. Spice Communications has the permission to operate in the six regions namely, Punjab, Karnataka, Andhra Pradesh, Delhi, Haryana and Maharashtra. However, the deal provided Idea a license to operate only in Punjab and Karnataka.

A report prepared by Nadan Nilekani on the financial support to be presented to the Financial Minister Pranab Mukherjee, claimed to save the government Rs. 50,000 crore. The amount was 50% of the income tax returns that the government was expected to pay this year.

Mr. Mukherjee was determined to make the financial support system of the Government of India more efficient and beneficial. With the support of Mr. Nilekani, the minister claimed to start its pilot project soon.

Reliance Industries, the largest private oil and gas explorer in India, is looking forward to sell out its Reliance Gas Transportation Infrastructure Ltd, claimed the Wall Street Journal, and the price at which it was to be sold was estimated to be $1 billion.

India gets three-quarters of fuel imported and was now concentrating on the manufacturing of the oil so as to increase its economic development speedily. A Britain-based fuel company BP was ready to pay out $7.2 billion for a
30% share in Reliance's 23rd largely unexplored deepwater oil and gas fields, with an option for making further payments on the basis of the success from the exploration.

The BSE and Nifty index remained more flat today rather than being exciting, nifty and BSE rather showed a downward trends today. In the opening session, BSE sensex was down by 0.1 % at 18725.56 and nifty lost 0.2% at 5262.

The stats remained almost same throughout the day with only minor fluctuations in downwards directions with Sensex shedding 38 points at 18706 and nifty down by 14 points at 5168 at the end of the day.

BSE small cap showed the upward trend and moved by quarter of percent 11 points whereas mid cap fell down to 6955.