NSE asks stock brokers to implement risk reduction mode

When 95% of the broker’s capital is utilised towards margins, he would be compulsorily placed in risk reduction mode from 10th February, NSE says

The National Stock Exchange (NSE) has asked its trading members to ‘compulsorily’ implement a risk reduction mode when 95% of their capital is utilised towards margins.


The move is applicable for the currency derivative segment and would be with effect from 10th February, the Exchange said in a circular.


NSE said, “To enhance the risk management capabilities of the members and to avoid a situation of disablements, a member shall be compulsorily placed in risk reduction mode when 95% of the member’s capital is utilised towards margins”.


The stock broker would be moved back to the normal risk management mode as and when the collateral of the stock broker was lower than 90% utilisation level.


Under this mode, all unexecuted trades would be cancelled when 95% of the stock broker’s collateral available for adjustment against margins gets utilised.


When a member moves to risk reduction mode, fresh orders placed by a trading member to reduce the open positions will be accepted.


Besides, these fresh orders will be checked for sufficiency of margins and those which do not satisfy the criteria will be rejected.


In 2012, the exchange had set the limit for ‘risk-reduction mode’ at 90%.


Jubilant FoodWorks Q3 net profit falls 11% on higher expenditure

During the December quarter, Jubilant FoodWorks, the operator of Domino’s Pizza in India, witnessed it net profit falling on higher expenditure despite a 19% increase in its revenues

Jubilant FoodWorks, which operates fast food chain Domino's Pizza in India, reported an 11% fall in its December quarter net profit despite 19% increase in its total revenues. Its net profit fell 11% due to higher expenditure and further investments in launching its new stores and products.

For the quarter to end-December, Jubilant FoodWorks said, its net profit fell 11% to Rs33.59 crore from Rs37.70 crore while its total revenues, including sales, increased 19% to Rs459.59 crore from Rs385.14 crore, same period last year.

“Inflationary pressures continued to shape key raw material items combined with enhanced expenditure on promotions and advertising, new product launches and new restaurant openings. Expenses related to the roll-out of Dunkin’ Donuts is also being captured in the form of higher total expenditure,” Jubiliant FoodWorks said in regulatory filing.

The company’ raw material costs during the December quarter increased 25% to Rs104.59 crore from Rs83.66 crore a year ago period. Its total expenditure increased 23% to Rs408.76 crore from Rs331.97 crore a year ago period.

Jubiliant FoodWorks, during the December quarter, invested Rs5.25 crore in its wholly owned subsidiary, Jubiliant FoodWorks Lanka Pvt Ltd.

Jubiliant FoodWorks opened 47 new Domino’s Pizza restaurants including its new restaurant concept ‘Pizza Theatre’ in major cities.

Between December 2012 to December 2013, FIIs shareholding in the company grew to 47.38% from 40.80% in a same period a year ago. While domestic institutional investors (DIIs) shareholding fell to 0.03% from 0.15%, public shareholding fell to 2.69% from 3.84% and promoter shareholding fell to 49.90% from 55.21%.

During the quarter, the board of directors of the company approved to increase the investment limit for Foreign Institutional Investors (FIIs) and foreign portfolio investors from 49% to 55% of the paid up equity share capital, which is subject to shareholders’ approval.

As on 31 December 2013, total Domino’s Pizza restaurants stood at 679 across 142 cities and its total number of employees as on 31 December 2013 stood at 26,153 from 20,659 a year ago period.

Jubiliant FoodWorks closed Tuesday 1.45% up at Rs1,095 on the BSE, while the 30-share benchmark Sensex ended the day flat at 20,211.

For more stock results, check out this page




Bharat Ratna conferred on Sachin Tendulkar, Prof CNR Rao

Tendulkar and Dr Rao, have joined a list of 41 eminent personalities who have been conferred with the Bharat Ratna

Bharat Ratna, India's highest civilian honour, was on Tuesday conferred on legendary cricketer Sachin Tendulkar and eminent scientist Prof CNR Rao.


President Pranab Mukherjee presented the honours at a brief function at Rashtrapati Bhavan’s Durbar Hall. It was attended by Vice-President Hamid Ansari, Union ministers, Sachin’s wife Anjali, daughter Sara and a host of dignitaries.


Master batsman Tendulkar, who retired from international cricket on 16th November last year, is the first sportsman to be bestowed with the honour.


Tendulkar and Dr Rao, both of whom are recipients of Padma Vibhushan — the country’s second highest civilian honour, will join a list of 41 eminent personalities who have been conferred with the award that is given in recognition of exceptional service of the highest order since it was instituted in 1954.


In a fitting finale to a record-breaking career spanning 24 years, Tendulkar, a former India Captain, was chosen for the prestigious award, after his farewell 200th Test against the West Indies in Mumbai on 16 November 2013.


An official statement said Tendulkar has been a true Ambassador of India in the world of sports and his achievements in cricket are unparalleled, the records set by him unmatched, and the spirit of sportsmanship displayed by him exemplary.


“That he has been honoured with several awards is testimony to his extraordinary brilliance as a sportsman,” it said, noting that Tendulkar has played cricket across the world and won laurels for the country during the last 24 years since the young age of 16.


An outspoken scientist, Prof Chintamani Nagesa Ramachandra Rao is a well-recognised international authority on solid state and materials chemistry who has published over 1,400 research papers and 45 books.


He is the third scientist after CV Raman and former President APJ Abdul Kalam to be conferred with the Bharat Ratna.


Prof Rao’s contributions have been recognized by most major scientific academies around the world through conferment of memberships and fellowships and has been honoured with several national and international awards, the official announcement said.


He currently serves as the Head of the Scientific Advisory Council to the Prime Minister.


The Bharat Ratna was announced after a gap of four years with Hindustani music doyen Bhimsen Joshi being the last recipient in 2009.


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