Regulations
SEBI imposes Rs52 crore fine on DLF, seven others
The penalty shall be paid by way of a duly crossed demand draft drawn in favour of “SEBI- Penalties Remittable to Government of India” payable at Mumbai within 45 days
 
SEBI imposed Rs52 crore fine on DLF and seven others in an adjudication order. The following table gives the extent of penalties on each of the noticees:
 
 
The penalties are imposed for “fraudulent and unfair trade practices.”
 
The penalty shall be paid by way of a duly crossed demand draft drawn in favour of “SEBI- Penalties Remittable to Government of India” payable at Mumbai within 45 days, concluded the SEBI Order.
 

User

Nifty, Sensex, Bank Nifty weak – Thursday closing report

Nifty will regain strength only on a close above 8,750

 

We had mentioned in Wednesday’s closing report that currently the move on the NSE’s CNX Nifty is not following any trend and further direction may be clear after the Union Budget while Bank Nifty was decidedly weak. The market opened Thursday in the positive, which was the only time when the benchmark moved in the green zone. Immediately after hitting the day’s high, the 50-share index moved lower and continued to move lower after each effort to revive. The benchmark hit a nine-day low (including today) and closed near to it. The much awaited Railway Budget was not welcomed by the investor community. Railway related stocks, which were much in demand before the Budget, gave up gains later in the day.
 
The S&P BSE Sensex opened at 29,052 while Nifty opened at 8,779. The benchmark hit a high at 29,069 and 8,786. Sensex hit a low at 28,694 and closed at 28,747 (down 261 points or 0.90%). Nifty hit a low at 8,669 and closed at 8,684 (down 83 points or 0.95%). Bank Nifty opened at 18,781 and moved from the high of 18,795 to the low of 18,490 and closed at 18,538 (down 195 points or 1.04%). NSE recorded a volume of 100.47 crore shares. India VIX fell 0.94% to close at 20.5800. The higher volume on the NSE was due to the expiry of February futures and options.
 
Railway Minister Suresh Prabhu said the railways will invest Rs8.5 lakh crore over the next five years, there will be no increase in passenger fares and railways is targeting operating ratio of 88.5% for FY 2016.
 
Standard & Poor's Ratings Services on Thursday said that it was lowering its economic growth forecasts for China and Japan, while raising the outlook for India. For China, S&P now sees 2015 gross domestic product rising 6.9%, down from a previous projection of 7.1% growth. For 2016, it cut China's GDP expansion to 6.6% from 6.7%. For Japan, it trimmed the 2015 forecast to just 0.7% growth from 1.3%, while for next year, it sees 1.3% growth, down from 2.1%. S&P raised its India GDP growth forecast to 7.9% from 6.2% for the year ending March 2016.
 
With a decline in gold imports, the Commerce Ministry has sought reduction in import duty on the yellow metal. The industry has sought reduction in customs duty on gold to 2% from 10% now.
 
India is likely to meet the central bank's inflation target of 6% by January 2016, while economic growth is expected to gradually pick up, Reserve Bank of India (RBI) Deputy Governor SS Mundra said today.
 
Coming back to Indian stock markets, NTPC (4.90%) was the top gainer in ‘A’ group on the BSE and also the Sensex 30 pack. NTPC informed that the Unit-Ill of 500 MW of Vallur Thermal Power Project of NTPC Tamil Nadu Energy Co, a JV of NTPC and TANGEDCO, is declared to be on commercial operation from February 26, 2015. With this the total commercial capacity of Vallur Thermal Power Project has become 1,500 MW and that of NTPC Group – 43,143 MW. Union Bank of India (4.63%) was the top loser in ‘A’ group on the BSE. Bhel (3.47%) was the top loser in the Sensex 30 stock. 
 
On Wednesday, US indices closed flat. Federal Reserve Chairwoman Janet Yellen repeated in her second day of testimony to US lawmakers that normalisation of interest rates will begin when the Federal Open Market Committee is confident that inflation is on track to hit the central bank's inflation target of 2% growth.
 
In economic data, new homes in the US sold at a faster pace than forecast in January despite snow storms in the Northeast in the country, a sign of stabilisation in the housing industry, data released yesterday.
 
Except for Straits Times (0.43%) and Taiwan Weighted (0.80%) all the other Asian indices closed in the green. Shanghai Composite (2.15%) was the top gainer.
 
Singapore's industrial production swung to an expansion in January after two consecutive months of contraction. Manufacturing output rose 0.9% year-on-year in January, compared with a 1.9% decline in December, according to preliminary figures released by the Economic Development Board today.
 
European indices were trading higher. US Futures too were trading in the green.
 

User

Is Railway Budget signalling Modi's higher growth through public investment?

It appears that the Modi government has decided to boost growth through public investment. We saw this in the Railway Budget today. Will we see more of it in the Union Budget on Saturday?

 

The Mid-year economic analysis of the Ministry of Finance, which was released last December suggested that the government should kickstart the investment process. Two months we are seeing this in action. The Railway Minister Suresh Prabhu announced an increase of 52% in the Plan Budget to Rs1,00,011 crore for FY2015-16 from Rs65,798 crore a year ago. While the Finance Ministry would provide a gross budgetary support of Rs40,000 crore, the Railways would foot Rs17,793 crore from internal resources and Rs5,781 crore through public-private-partnership (PPP). 
 
Prabhu said, "It is anticipated that the Plan size will get higher once resources from institutional bodies are formalized during the course of the ensuing financial year. Given the huge shelf of project and ensuring proper funds flow for the same with a view to completing them on target, a new financing approach to expand extra budgetary resources (EBR) has been projected. This element is projected at Rs17,136 crore and is aimed at accelerating completion of capacity augmentation projects." 
 
By increasing the plan size by over 50%, the Railway Minister has delivered a part of promise, in Prime Minister Narendra Modi's scheme of things to boost growth. Modi, reacting on the Railway Budget, said, "This is a watershed moment for Railways, marking a paradigm shift from discussing coaches and trains to comprehensive railway reform. The Railway Budget lays out a clear roadmap to make the Railways the key driver of India's economic growth, playing a key role in India's progress. Railway Budget 2015 stands out for its focus on the common man, putting speed, scale, service and safety, all on one track."
 
Speaking about the annual plan, Prabhu said, Rs1,645.60 crore has also been provided as Railway’s share of diesel cess from the Central Road Fund. He said Market borrowing under EBR is projected at Rs17,655 crore, an increase of about 46.5% from Rs5,609 crore over revised estimate (RE) for 2014-15.
 
Railways' passenger earnings growth has been pegged at 16.7% and earnings target has accordingly been budgeted at Rs50,175 crore. The freight traffic is pegged at an all time high incremental traffic of 85 million tonnes, anticipating a healthier growth in the core sector of economy, specially where rail co-efficient is high and by tapping full railway potential to cater maximum to demand-side. Goods earnings are expected to be at Rs1.21 lakh crore, which include rationalisation of rates, commodity classification and distance slabs. Other coaching and sundries are projected at Rs4,612 crore and Rs7,318 crore, respectively.
 
Prabhu said, internal resource generation also improved and accordingly the appropriation to depreciation reserve fund (DRF) has been scaled up to Rs7,975 crore in RE from the budgetary estimate (BE) for 2014-15 provision of Rs7,050 crore.
 
After taking into account the above 'excess' of receipts over expenditure stands at Rs7,278 crore in RE 2014-15. With the above estimates, the targeted operating ratio for Indian Railways comes to 91.8% against 92.5% in BE, which is an improvement of 0.7% percentage point over BE and 1.8% over 2013-14. Plan size for 2014-15 has increased from Rs65,445 crore in the BE to Rs65,798 crore in the RE by Rs353 crore with higher provisions under internal resource component and market borrowings for rolling stock requirement. 
 
Prabhu said while the budgetary support has been increasing progressively over the years, it has not been adequate to realistically fund the large shelf of projects that are in the pipeline. "Many of the projects relate to decongestion in heavy traffic sections and are, therefore, remunerative. Such projects can be taken to accelerate completion by tapping market funding from institutional finance agencies, multilateral lending, etc. In this background, more than a hundred projects valuing more than one lakh crore have been identified through extra budgetary resource subject to due process being followed," the Minister added.
 

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)