The amendment in the FCRA would allow the bourse to expand its product range by offering trading in real estate indices and futures and options on rainfall based-products, MCX MD and CEO Lamon Rutten said on Friday
Ahmedabad: Multi Commodity Exchange of India (MCX) on Friday said it hopes that the proposed amendments in Forward Contract Regulation Act (FCRA) for allowing trading of options and indices in commodities will be soon passed by Parliament, reports PTI.
A Parliamentary Standing Committee, reviewing amendments to the FCRA, has already submitted its report, permitting index derivatives (futures and options) and options in individual commodities.
It has also recommended independence and power to the regulator—Forward Markets Commission (FMC).
“We hope that Parliament will approve recommendations of the standing committee that allows trading of options and indices in commodities,” MCX MD and CEO Lamon Rutten told reporters here while announcing that its initial public offer (IPO) that will hit the market on 22nd February and close on 24th February.
The amendment in the FCRA would allow “us to expand our product range by offering trading in real estate indices and futures and options on rainfall based-products”, he added.
Mr Rutten said MCX has tie-ups with firms providing weather and real estate related data.
MCX plans to expand network by providing innovative products and introducing new revenue lines such as data vending, he added.
MCX, which aims to raise Rs663 crore, has set a price band of Rs860 to Rs1,032 a share for the IPO.
The offer would comprise of sale of about 64.27 lakh shares, accounting for a 12.6% stake in the company.
This would include 2.5 lakh shares reserved for employees.
Besides the promoter, Financial Technologies (India), shares would also be sold by other shareholders like State Bank of India, Corporation Bank, Bank of Baroda, ICICI Lombard General Insurance, GLG Financials Fund and Alexandra Mauritius in the IPO.
MCX is the largest commodity bourse in the country, with more than 80% market share.
It is the fifth largest commodity exchange globally and figures among the top two positions in gold and silver segments.
It would be the first exchange in India to go public, putting it on par with global markets like the US, the UK, Japan, Australia, Singapore and Hong Kong.
MCX had recorded Rs447.5 crore income and Rs176.2 crore of net profit in the fiscal year ended 31 March 2011.
In the current fiscal, the company has posted a net profit of Rs218 crore and total income of Rs474 crore for the nine-month period ended 31st December.
There is a new insurance product using the iProtect brand name in the market. ICICI Pru Life has one and now Bharti AXA Life has used the very same product name. The premium is cheapest offered so rar, which means that price war between insurers is still hot. The Bharti product is a good deal for non-smokers, but a little expensive for smokers
The Insurance Regulatory and Development Authority (IRDA) has allowed the same product name for new a term life insurance plan. iProtect is a product from ICICI Pru Life and now Bharti AXA Life has launched a product with exactly same name for its online term life insurance. IRDA has done this in the past, too, but it is rare to have the same product name from different insurers. Is it intentional copying of the product name? We don’t know.
Bharti AXA Life iProtect is now the cheapest online term life insurance plan for non-smokers. There is a wide difference in the premium between smokers and non-smokers. The premium for Rs50 lakh Sum Assured (SA) for a 27-year old non-smoker male based in Mumbai for a policy term of 25 years is Rs3,700 (excluding taxes). On the other hand, the premium for a smoker in the same case will be Rs6,150 (excluding taxes).
Recent entrants DLF Pramerica U-Protect and Edelweiss Tokio Life Protection have premiums which are the lowest in offline term plan space. Their premium are Rs5,956 and Rs5,984 respectively for similar parameters. Both the products are offline as of now.
Aviva i-Life was the cheapest term life insurance till now with the revamped Aegon Religare iTerm closing the gap. HDFC Life Click2Protect was recently launched to compete in the online term market. The much-awaited online term plan this year will be from LIC, which is is expected to hit the market soon.
Advantages of Bharti AXA iProtect
Disadvantages of Bharti AXA iProtect
The Government is seeking review of the apex court's decision which said the I-T department does not have jurisdiction to levy tax on the overseas deal between two companies
NEW DELHI: The Union Government on Friday moved the Supreme Court seeking review of the apex court's verdict in the Vodafone tax case. The SC had said that the Indian Income Tax Department does not have jurisdiction to levy Rs11,000 crore as tax on the overseas deal between Vodafone International Holdings and Hutchison Group, reports PTI.
The Court had on January 20 allowed Vodafone's appeal and had quashed the Bombay High Court verdict which had upheld the decision to levy tax on the overseas deal.
The apex court held that Vodafone's transaction with Hong Kong-based Hutchison Group was a "bonafide" foreign direct investment (FDI), which fell outside the tax jurisdiction of the Indian authorities.
A bench headed by Chief Justice SH Kapadia had held that the offshore transaction was a "bonafide structured FDI investment" into India which fell outside India's territorial tax jurisdiction.
It also asked the I-T Department to return Rs2,500 crore deposited by Vodafone, in compliance of its earlier interim order, within two months along with four per cent interest from the date of withdrawal of money by the tax department.
It also asked the Supreme Court registry to return within four weeks the bank guarantee of Rs 8,500 crore given by the telecom major.
Through the $11.2 billion deal in May 2007, Vodafone bought 67% stake in the Hutchison-Essar Ltd (HEL) from Hong Kong-based Hutchison Group through companies based in the Netherlands and Cayman Island.
Meanwhile, Vodafone in a statement, said that the apex court had clearly and unambiguously ruled that there was no tax to pay on the Vodafone-Hutchison transaction.
"Vodafone notes the filing of the tax authorities review petition, which will be evaluated by the same bench that ruled on the case and has no further comment to make at this stage," it said.