NSE said it would not issue any fresh mini futures or options contracts from 1st February and existing unexpired contracts till January 2013 would be traded till expiry and new strikes can also be introduced in the existing contract months
Mumbai: National Stock Exchange (NSE) has said it will not issue mini derivative contracts on its key benchmark index, S&P CNX Nifty, from February as per the directives issued by Securities and Exchange Board of India (SEBI), reports PTI.
In a circular, NSE said it would not issue any fresh mini futures or options contracts from February 1, 2013.
However, the existing unexpired contracts till January 2013 would be traded till expiry and new strikes can also be introduced in the existing contract months.
Market regulator SEBI had yesterday asked stock exchanges -- BSE and NSE -- to discontinue such contracts on their respective indices Sensex and Nifty with a minimum size of Rs1 lakh.
The move was aimed to discourage small investors from getting attracted to these instruments.
Derivatives are contracts between two or more entities and their value depends on underlying assets such as stocks.
"Mini derivative (Futures & Options) contracts on S&P CNX Nifty Index (MINIFTY) for new expiry months shall not be available for trading on expiry of existing contract months ...no contracts shall be available for trading in MINIFTY with effect from 1 February 2013," the exchange said.
"However, the existing unexpired contracts of expiry months November 2012, December 2012 and January 2013 would continue to be available for trading till their respective expiry and new strikes would also be introduced in the existing contract months," it added.
The regulator had introduced mini derivatives in December 2007.
In the first two quarters of 2012-13, banks referred a record number of 74 CDR cases, involving Rs40,000 crore for restructuring
New Delhi: Holding corporates responsible for a major part of the rising bad loans, Dr KC Chakrabarty, deputy governor of the Reserve Bank of India (RBI) said honest borrowers are paying for the sins of 'inefficient', reports PTI.
"Again non-performing assets (NPAs) is creation of the corporate sector, a major part of the NPA. You borrow from banks, you don't pay them in time. They becomes NPA in the books of the banks. I pitty on bankers," he said at an event organised by Assocham.
"So why you are not able to pay back because your cost is more, income is less. You don't pay back the money. This can be possible only with the improvement in the productivity and efficiency," he said.
In a worsening trend of companies failing to meet their financial obligations, banks have seen a rise of up to 85% in bad loans since the beginning of the current fiscal.
In the first two quarters of 2012-13, banks referred a record number of 74 corporate debt restructure (CDR) cases, involving a total debt amount of Rs40,000 crore for restructuring.
Chakrabarty further said if corporates are able to bring down the risk perception of banks, interest rate could be reduced in their benefit.
"If you (corporates) can bring down risk in the economy, if the bank perceive that there is no risk, your interest will become 9-10%," he said, adding that if 5% NPA becomes 1% then this can be done".
"Today what is happening is a person who is sincere, who is honest, he is paying money and the fellow who is inefficient, who is not able to do the business, is not paying the money. It becomes NPA. Its cost goes to the fellow who is paying the money," he said.
"The bank would charge another 2% from the fellow who is paying. We must look at this aspect little bit more dispassionately," he added.
Police said, the clerk from Bank of Maharashtra deposited 48 cheques handed in by the bank customers in 13 accounts, most of them belonging to his relatives or friends
Nagpur: The city police has registered a case against a clerk with Bank of Maharashtra (BoM) for a fraud to the tune of Rs96.43 lakh, reports PTI.
Dewanand Nichwani, who works with BoM's Jaripatka branch, is accused of diverting cheques.
Police said between November 2007 and May 2008, he deposited 48 cheques handed in by the bank customers in 13 accounts, most of them belonging to his relatives or friends, instead of depositing them in the customers' accounts.
No arrest has been made yet.