Bonds, Currencies & Commodities
NHB to raise up to $200 million next quarter via ECB route

The housing finance regulator said it would also try to raise funds on behalf of developers who are into low-cost housing

Mumbai: National Housing Bank (NHB) has said it will raise up to $200 million in next quarter under the new external commercial borrowing (ECB) window allowed by the Reserve Bank of India, reports PTI.

"We are looking at raising up to $200 million under the new ECB window opened by RBI for low-cost housing. We will soon approach RBI for its permission. The money will be used to fund retail housing," NHB Chairman and Managing Director RV Verma told reporters.

Going forward, the housing finance regulator will also try to raise funds on behalf of developers who are into low- cost housing, he said.

"Our funds will be used to finance low-income households by way of credit to housing finance companies (HFCs) on pre- condition that the fund is used only to build affordable houses," Verma said.

Even though home sales are falling in almost all the major markets, Verma said he is expecting a 20% growth in housing finance this fiscal.

On 17th December, the Reserve Bank allowed real estate developers and housing finance companies to raise up to $1 billion through ECBs in the current fiscal to promote low-cost residential projects.

The funds raised through ECBs could be used either for developing low-cost housing projects or for providing loans up to Rs25 lakh to individuals for buying units with a price tag of Rs30 lakhs or less, RBI had said in a circular.

Besides developers, the apex bank said HFCs/NHB can also raise ECBs for financing prospective owners of low cost, affordable housing units. Slum rehabilitation projects, too will be eligible for raising ECBs.

ECBs are considered attractive option as cost of raising the loan overseas is lower than that of domestic borrowings.

Besides, they provide an additional avenue to access large amounts of funds from global financial markets.

As per RBI guidelines, developers/builders with a minimum track record of five years in undertaking residential project will be eligible to raise ECBs.

With regard to HFCs, RBI said companies with a minimum paid up capital of Rs50 crore and minimum net owned fund of Rs300 crore would be eligible to raise ECBs.

User

SEBI slaps Rs25 lakh fine on Central Bank's equity dealer and wife

SEBI observed that before placing the orders for CBI, shares were purchased in the account of Vibha Sharma and sold to match the orders of the bank. The couple thereby earned undue profits at the cost of CBI and its customers

Mumbai: Market regulator Securities and Exchange Board of India (SEBI) has imposed a penalty of Rs25 lakh on one equity dealer of Central Bank of India and his wife for engaging in fraudulent trading, reports PTI.

The regulator said that the penalty of Rs25 lakh on Jitendra Kumar Sharma and his wife Vibha Sharma has to be jointly paid by the couple.

SEBI had conducted a probe on the trading activities of the couple from 1 December 2009 to 31 March 2010.

As per SEBI, Jitendra Sharma an equity dealer for the Central Bank of India (CBI) since 8 May 2008 used to place orders for the public sector bank with the brokers Kaviraj Securities and Trustline Securities. While, Vibha Sharma traded through broker, Eureka Stock & Share Broking Services.

It was found that the sell trades of Vibha Sharma matched 100% with that of the buy trades of CBI.

SEBI observed that before placing the orders for CBI, shares were purchased in the account of Vibha Sharma and sold to match the orders of the bank. The couple thereby earned undue profits at the cost of CBI and its customers.

"I observe from the material available on record that the noticees have earned an undue profit of about Rs71.58 lakh by indulging in the unfair and fraudulent trade practices," SEBI's Adjudicating Officer PK Kuriachen said in the order.

"These undue profits earned by the noticees fall upon the CBI and its customers and ultimately on the investors of the securities market. In other words, the undue profits earned by the noticees are nothing but the losses to them," it added.

User

COMMENTS

Vaibhav Dhoka

4 years ago

Which agency will recover losses to banks which in turn is Central Banks investor.Is there any mechanism to compensate such fraudulent deals.There must be someone in Bank management party to this fraud.

BJP secures absolute majority in Gujarat

Congress suffered a major blow when its state unit chief Arjun Modhwadia and Leader of Opposition Shaktisinh Gohil, both contenders for the CM post, lost their seats

Ahmedabad: Chief Minister Narendra Modi on Thursday led the Bharatiya Janata Party (BJP) to a decisive win in Gujarat for a third time in a row with the party securing absolute majority clinching 103 seats of the 162 results declared for the 182-member assembly and leading in 13 seats, reports PTI.

 

Arch rival Congress, out of power in the state for the last 22 years, won 53 seats and its candidates are leading in seven more.

 

NCP of Sharad Pawar, which fought the election in alliance with Congress, has won two seats and JD(U) one.

 

Others have won three seats, including one by Gujarat Parivartan Party (GPP) of former Chief Minister Keshubhai Patel.

 

Congress suffered a major blow when its state unit chief Arjun Modhwadia lost the Porbandar seat to Babu Bokhiria of BJP by 17,146 votes, while Leader of Opposition Shaktisinh Gohil was defeated by Minister of State for fisheries Purushottam Solanki of the saffron party by 18,554 votes in Bhavnagar rural constituency.

 

Both were strong contenders for chief ministership in the event of Congress coming to power.

 

However, Shankar Singh Vaghela, Congress spearhead in the poll campaign and former state Chief Minister, managed to win Kapadvanj seat defeating Kanubhai Dabhi of BJP by a margin of 6597 votes.

Gujarat Parivartan Party president Keshubhai Patel scored a facile victory in Visavadar in Saurashtra defeating BJP's Kanubhai Bhalala by over 42,000 votes.

 

Though BJP registered an emphatic victory, five of its ministers fell by the wayside.

 

Those who lost included Agriculture Minister Dileep Sanghani (Amreli), Health Minister Jaynarayan Vyas (Siddhpur), Social Justice and Empowerment Minister Fakirbhai Vaghela (Vadgam), Minister of State for Forest and Environment Kiritsinh Rana (Limbdi) and Minister of State for Agriculture Kanubhai Bhalala (Visavadar).

 

It appears to be a near repeat performance by both BJP and Congress who had won 117 and 59 seats respectively in the last polls.

User

We are listening!

Solve the equation and enter in the Captcha field.
  Loading...
Close

To continue


Please
Sign Up or Sign In
with

Email
Close

To continue


Please
Sign Up or Sign In
with

Email

BUY NOW

The Scam
24 Year Of The Scam: The Perennial Bestseller, reads like a Thriller!
Moneylife Magazine
Fiercely independent and pro-consumer information on personal finance
Stockletters in 3 Flavours
Outstanding research that beats mutual funds year after year
MAS: Complete Online Financial Advisory
(Includes Moneylife Magazine and Lion Stockletter)