Sensex, Nifty edges higher further: Friday closing report

Only a close below 6,625 may put a break to the upward momentum

Market today had a positive weakening however was continuously sliding down until beginning of the noon session. However, at around 12.15pm the market started gaining momentum and edged higher and closed near the day’s high.


Sensex opened at 22,273 while the Nifty opened at 6,673. After hitting a low of 22,185 and 6,644 the benchmark moved higher and hit a high of 22,364 and 6,703. Sensex closed at 22,340 (up 126 points or 0.57%) while the Nifty closed at 6,696 (up 54 points or 0.82%). The NSE recorded a volume of 78.05 crore shares.


Reserve Bank of India (RBI) on Thursday said that the implementation of Basel III capital regulations may necessitate some lead time for banks to raise capital within the internationally agreed timeline for full implementation of the Basel III capital regulations. Accordingly, the transitional period for full implementation of Basel III capital regulations in India is extended up to 31 March 2019, instead of as on 31 March 2018. Union Bank, Oriental Bank, Bank of India and PNB were among the top 10 gainers in the ‘A’ group of BSE.


On the other hand RBI relaxed some of the forex hedging rules for importers and exporters, to allow greater operational flexibility, the central bank notified on Thursday. Importers and exporters can cancel up to 75% of their hedged forex exposures, as against 25% earlier, the RBI said. In addition, the profit or loss from these cancellations will be borne by the importer/exporter instead of passing it on to the customers as was mandated earlier.


Tata Power has challenged CLP India's claim that its Jhajjar plant has started commercial operation, a declaration that allows generation companies to start billing discoms for fixed charges even if the committed electricity is not supplied. In a petition before the Central Electricity Regulatory Commission (CERC), Tata Power has described CLP's declaration as "illegal". It has also claimed suffering financial losses due to CLP's action. Tata Power rose 4.36% to close at Rs86.25 on the BSE is the top gainer in the Sensex 30 stocks.


JSW Steel, fell 1.89% to close at Rs980.55 on the BSE, was among the top five losers in the ‘A’ group on the BSE. JSW Steel was in news for saying that if foresees it  imports of metallurgical coal to stay flat at 7-8 million tonnes in 2014/15, indicating its mills will continue to run below capacity due to soft demand and a shortage of iron ore.


US indices closed flat with negative bias. Government data showed that the economy's growth in the fourth quarter was bumped up to 2.6%, mainly because of higher health-care spending, while weekly unemployment benefits fell to the lowest level in four months, offering further evidence that US layoffs have slowed sharply and perhaps a hint that hiring is about to pick up.


Slumping for an eighth month, a gauge of pending home sales fell 0.8% in February to the lowest level in more than two years, signaling that upcoming activity may slow, the National Association of Realtors reported.


Except for Shanghai Composite (0.24%) and Taiwan Weighted (0.06%) all the other Asian indices closed in the green. Hang Seng (1.06%) was the top gainer.


Japanese retail sales rose 3.6% in February from a year earlier for the seventh straight month while the Japanese core consumer price index rose 1.3% from a year earlier in February.


European indices were trading in the green. US Futures too were trading higher.


Euro-area economic confidence increased more than analysts forecast in March, easing pressure on the European Central Bank to take action next week to counter low inflation and spur growth.


Companies need to keep register on beneficial investments

Companies will have to put it on record whether indirect investments are held in a third party's name for a temporary period or not as per the rules notified by MCA

The Indian government has asked companies to maintain an official register having details about indirect investments along with reasons for not holding them in their own names. This would prevent routing of money by companies through shell entities, the government says.


Ushering in a stringent regulatory framework for corporates, the government has said that entities would also have to put it on record whether indirect investments are held in a third party's name for a temporary period or not.


Every company shall maintain a register with particulars of investments in shares or other securities beneficially held by it but which are not held in its own name, according to the rules under the Companies Act, 2013.


Besides, the company is required to record in the register "the reasons for not holding the investments in its own name and the relationship or contract under which the investment is held in the name of any other person."


Further, the register should carry the investment details in a chronological order.


The requirement is part of the Companies Act rules notified by the Ministry of Corporate Affairs (MCA) on Thursday.


"The register shall be preserved permanently and shall be kept in the custody of the company secretary of the company or if there is no company secretary, any director or any other officer authorised by the board for the purpose," the notification said.


To ensure that the register are maintained in a proper manner, the entries in the register shall be authenticated by the company secretary of the company or by any other person authorised by the board for the purpose.


The government's move on this front comes at a time when there have been instances of entities routing their money within and outside the country by floating shell companies.


ED seizes assets of Rs7 crore for faking SAIL brand

ED seized two office buildings, five flats, one plot and two luxury cars of Raipur based Alankar Alloys Pvt Ltd and Pankaj Ispat Ltd for 'illegally manufacturing' SAIL brand TMT bars in their factories

In the first case of money laundering charges being slapped for violation of the Trade Marks Act in India, the Enforcement Directorate (ED) has seized assets worth Rs7 crore of two Chhattisgarh based companies for allegedly fake branding of Steel Authority of India (SAIL).


The agency has seized two office buildings, five flats, one plot and two luxury cars, an Audi and a BMW, of two Raipur based companies-- Alankar Alloys Pvt Ltd and Pankaj Ispat Ltd-- for 'illegally manufacturing' SAIL brand TMT bars in their factories.


The case dates back to April 2013 when SAIL lodged a formal complaint with the Chhattisgarh police stating that these companies were allegedly indulging in fake branding of its name which has not only caused damage to the reputation of one of the largest iron and steel makers of the country but was also making it loose money.


The ED's zonal office in the Chhattisgarh capital registered a case under the Prevention of Money Laundering Act (PMLA) after taking cognisance of the police FIR and its probe till now has found that both the accused firms have allegedly laundered huge sums of money in violation of the Trade Marks Act, 1999.


This is the first time that the central probe agency has taken cognisance of a money laundering instance in a crime which is not registered under the usual criminal or anti-corruption laws but under the Trade Marks protection laws.


The ED found the 'SAIL brand TMT rods' were being made clandestinely and were being sold at "inflated costs" outside the state through a company registered in the name of Baid Steel Pvt Ltd at Raipur.


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