Government likely to take more steps to curb gold import: Chief Economic Advisor

“We have taken number of measures to curb the import of gold. The government will never say its end of it,” Chief Economic Advisor Raghuram Rajan said

Within days of hiking import duty on gold, Chief Economic Advisor Raghuram Rajan today said government could take more steps to curb demand for the precious metal amidst widening current account deficit (CAD).


“We have taken number of measures to curb the import of gold. The government will never say its end of it,” he told reporters in New Delhi.


Last week the government increased import duty on gold to 8%, the second such hike within six months.


The monthly gold imports have averaged 152 tonnes in first two months of the fiscal as compared to an average of 70 tonnes seen in the 2012-13 financial year.


High gold imports is one of main reasons behind high CAD, which touched a record high of 6.7% of GDP in December quarter of last fiscal. The CAD is likely to be in the range of 5% for the 2012-13 fiscal. As per experts a CAD of 2.5% is sustainable.


The high CAD in turn affects rupee value. In early trade, the rupee hit life-time low of 57.54 against the US dollar today.


Rajan further said India has a large CAD, and currencies of emerging markets with large CAD have depreciated more.


“We are undergoing period of volatility (in rupee)... Obviously in the government, we don’t like to see volatility...  This could be temporary phenomenon,” he said.


He, however, said government does not have in mind any specific level at which the rupee should be.


The chief economic advisor in the finance ministry also said the medium term measures taken by the government in past will continue and help rupee to find a level consistent with the sustainable growth.


NCFM certificates: Online renting continues unabated

There is a need to check this spreading menace of renting of NCFM certificates. The most unfortunate part of this renting activity is the reflection of corruption which has spread its tentacles all across the country

NSE Certification in Financial Markets (NCFM) is an online testing and certification program in financial markets. NCFM offers various educational programs in various areas of finance including capital markets, banking, portfolio management, currency, etc. But the criticality of these statements lies in the fact that some of the certifications started by the National Stock Exchange (NSE) have regulatory significance also. 


As per NSE guidelines for membership which is available on its website, it is distinctly mentioned that “At any point of time the applicant has to ensure that either the proprietor/one designated director/partner or the Compliance Officer of the applicant entity should be successfully certified either in the Securities Market (Basic) Module or the Compliance Officers (Brokers) Module or the relevant module pertaining to the segments wherein membership of the Exchange has been sought.i.e.

  • Capital Market (Dealers) Module
  • Derivatives Market (Dealers) Module
  • National Institute of Securities Markets (NISM) Series I – Currency
  • Derivatives Certification Examination”


The guidelines obviously state the significance of these four certificates. For me the significance of these certificates lies in the fact that I have myself passed more than 10 modules of NSE certifications at different stages and helped many people pass this test. However, what pains me is the fact that these certificates which are supposed to be the benchmark for membership are openly available for renting in the market. There are various advertisements put on websites such as ,, etc. People publishing these advertisements have the courage to publish the advertisements without any fear. One advertisement from Madurai states that it has wide network of 300 plus sub-brokers and also provides best rate for both buyers and sellers. Many other people are fearless, as well. They share their contact details without any fear. In some of the advertisements, rates are also mentioned which ranges from Rs1,500 a month to Rs3,000 a month.



There are some groups also created on Facebook’ which facilitate transactions in NCFM certification. Those people who have qualified NCFM certificates openly offer their certificates for rent. This process of renting NCFM certification goes beyond individuals and it is obvious that some middlemen are also involved in this process.

But the most important question is how these certificates are getting used if they are being rented. Does this mean that the people using NSE terminals at various locations are not themselves certified and hence need to use these borrowed certificates? If this happens to be case, then isn’t it a clear-cut violation of NSE guidelines? Though modus operandi of using these certificates which are obtained through online renting is not well known, this is how it supposedly works. If a person wants to start a broking firm and does not have a certificate, he borrows it from some person who already has these certificates and shows him as part of the broking organization in some way or other.


It is indeed surprising and shocking that such incidents are happening across country. There is a need to check this spreading menace of renting of certificates. The most unfortunate part of this renting activity is the reflection of corruption which has spread its tentacles all across the country.


(Vivek Sharma has worked for 17 years in the stock market, debt market and banking. He is a post graduate in Economics and MBA in Finance. He writes on personal finance and economics and is invited as an expert on personal finance shows.)



pawan agrawal

4 years ago

who cares in nse for their illegal
brokers are openly cheating investors and listed companies in nse openly violating all the securities laws
in fact, nse itself violating all the rules and regulation of securities laws

Ashok Visvanathan

4 years ago

Dont worry about it.!! When the Madras Stock Exchange members visited the NYSE, they enquired about qualification for membership. They were told there are 3 qualifications required, the first is Money, the second is Money and the 3rd is Money.

Downtrend on Sensex, Nifty may end soon: Monday Closing Report

If the Nifty manages to close above 5,920, we may see a few days of gains again

The market ended flat amid choppy trade on concerns of the rupee hitting its all-time low and political developments in Delhi. If the Nifty manages to close above 5,920, we may see some days of gains again. The National Stock Exchange (NSE) reported a turnover of 53.46 crore shares and advance-decline ratio of 443:952.


The domestic market opened higher on support from its Asian peers which were mostly in the positive in morning trade today on firm US jobs data that was released on Friday. However, concerns of the weakening rupee kept local investors on guard.


The Nifty opened 27 points higher at 5,908 and the Sensex started the day at 19,530, a gain of 101 points over its previous close. Gains in power, realty, capital goods, metal, IT and PSU stocks led the benchmarks to their highs in the first 15 minutes. The Nifty touched 5,932 and the Sensex climbed to 19,586 at their respective highs.


However, the weakening of the rupee to an all-time low of 57.54 to a dollar in morning trade made investors nervous which led to the market paring its gains. Selling pressure from consumer durables, healthcare, banks and metal sectors saw the indices entering the negative terrain shortly after 10.30am.


Meanwhile, the rupee breached its all-time low of 57.32 against dollar in early trade today. It traded at 57.52 against Friday's close of 57.06/07 as of 09.28 am. The Indian currency had earlier hit a low of 57.54 against the greenback.


The indices managed to venture back into positive territory but were range-bound on both sides of their previous closing levels in subsequent trade.


However, a big bout of selling in heavyweights like Jindal Steel & Power, BHEL, Maruti Suzuki, ICICI Bank and Tata Motors led the market to its low in post-noon trade. At the lows the Nifty fell to 5,857 and the Sensex declined to 19,367.


While the market managed to recover from its lows, it closed flat with a mixed bias on worries about the weakening rupee and political developments in Delhi.


The Nifty shed three points (0.05%) to 5,878 while the Sensex gained 12 points (0.06%) to settle at 19,441.


In the broader market space, the BSE Mid-cap index declined 0.88% and the BSE Small-cap index dropped 0.79%.


BSE IT (up 1.01%); BSE TECk (up 0.46%); BSE FMCG (up 0.14%) and BSE Oil & Gas (up 0.11%) were the gainers in the sectoral segment. The main losers were BSE Consumer Durables (down 2.08%); BSE Realty (down 1.52%); BSE Bankex (down 1.12%); BSE Healthcare (down 1.04%) and BSE Metal (down 0.96%).


Out of the 30 stocks on the Sensex, 14 settled higher. The top gainers were Wipro (up 2.12%); Infosys (up 1.64%); NTPC (up 1.55%); HDFC (up 1.53%) and Bajaj Auto (up 1.29%). The major losers were Jindal Steel & Power (down 4.46%); BHEL (down 3%); Maruti Suzuki (down 2.18%); ICICI Bank (down 2.03%) and Tata Motors (down 1.82%).


The top two A Group gainers on the BSE were—GlaxoSmithKline Consumer Healthcare (up 3.79%) and MCX (up 3.59%).

The top two A Group losers on the BSE were—Jet Airways India (down 11.18%) and United Breweries (down 9.25%).


The top two B Group gainers on the BSE were—Harita Seating (up 20%) and Mold-Tek Packaging (up 19.66%).

The top two B Group losers on the BSE were—Opto Circuits (down 23.33%) and Rathi Steel (down 19.38%).


Of the 50 stocks on the Nifty, 19 ended in the in the green. The main gainers were HDFC (up 1.95%); NTPC (up 1.76%); Infosys (up 1.71%); Bajaj Auto (up 1.69%) and HCL Technologies (up 1.65%). The major losers were Jindal Steel & Power (down 4.19%); BPCL (down 2.51%); BHEL (down 2.46%); IndusInd Bank (down 2.16%) and IDFC (down 2.14%).


Markets across Asia, with the exception of the Jakarta Composite, closed in the positive as Japan revised its first quarter GDP growth. Optimism emanating from the US also supported the gains. The Chinese market was closed for a local holiday.


The Hang Seng rose 0.18%; the KLSE Composite surged 0.69%; the Nikkei 225 jumped 4.94%; the Straits Times advanced 0.50%; the Seoul Composite gained .46% and the Taiwan Weighted climbed 0.81%. Bucking the trend, the Jakarta Composite tanked 1.81%.


At the time of writing, two of the three the key European indices were in the positive and the US stock futures were trading in the green.


Back home, institutional investors—both foreign and domestic—were net buyers in the equities segment on Friday. FIIs pumped in fund totalling Rs157.90 crore and DIIs pooled in Rs172.70 crore.


VA Tech Wabag has received an order worth Rs115 crore from the Chennai Metropolitan Water Supply and Sewage Board. The order comprises of construction of pumping stations and pipeline works for providing comprehensive water supply and sewerage scheme for residents of Sholinganallur – Karapakkam on the old Mahabalipuram road in Chennai city under Chennai mega city development mission project. The completion of the project is scheduled for 24 months for water supply scheme and 30 months for sewerage scheme. The stock fell 1.36% to close at Rs443.50 on the NSE.


The board of directors of Comfort Fincap has decided to make an application to the Delhi Stock Exchange and Uttar Pradesh Stock Exchange for delisting of securities. It also has considered and approved the sub division of face value of each equity share from Rs10 to Re1 each. The stock rose 0.08% to close at Rs394.40 on the BSE.


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