Bizbits — Re recovers after initial fall

MUMBAI, December 12 -- Even as the Reserve Bank of India intervened in the forward dollar segment of the foreign exchange market, the spot ...

MUMBAI, December 12 — Even as the Reserve Bank of India intervened in the forward dollar segment of the foreign exchange market, the spot rupee which sank further to Rs 39.77 against the dollar later recovered to close at Rs 39.47/52.

The Indian currency opened weaker at Rs 39.50/55 level against yesterday’s closing of Rs 39.42/48 and lost ground on account of speculation as well as corporate buying. Dealers said that there were deals at the Rs 39.77 level. "Dollar selling by exporters saved the rupee’s say. Otherwise, it was set to breach the 39,90 level," a dealer said. This, along with the fact that SBI sold GDR proceeds of VSNL, saw the rupee rally to touch a high of Rs 39.38/43. However, subsequent demand weakened the rupee once again to close at 39.47/52.

RBI ban on Aneja Financial

MUMBAI — Continuing its crackdown on erring finance companies, the Reserve Bank of India today prohibited Hyderabad-based Aneja Financial Services Ltd (AFSL) from accepting deposits in any form. The RBI had banned DSJ Finance Corporation and McDowell Krest Finance from accepting deposits earlier this week.

RBI said AFSL had issued advertisements in the press for deposits from public by offering more returns in the form of attractive gifts in contravention of RBI directives. The text of the advertisement did not conform to the non-banking financial companies (advertisement) rules, 1977. RBI said despite repeated visits of the team, AFSL failed to produce to the inspecting authority all books, accounts and other documents and thus violated the provisions.

RBI seeks nod for gold futures

NEW DELHI — The Reserve Bank of India has sought permission from the Union finance ministry for allowing ready forward (Repos) transactions in what is being dubbed as "gold-linked securities".

RBI has also sought the ministry’s nod for allowing futures contracts in gold under the Forward Contracts Regulation Act which is administered by ministry of food and consumer affairs. The move is seen as an attempt by RBI to widen the ambit as well as the depth of trading in gold and gold standard based instruments in the country.