USE chief Narayanasami quits

While Mr Narayansami refused to divulge further details, industry sources said that the USE chief had some differences with other senior management personnel and certain promoters of the exchange, which led to his resignation

Mumbai: A little over one year into business, the United Stock Exchange (USE) has lost its chief, TS Narayanasami, who has quit as MD and CEO of the country’s newest bourse, reports PTI.

When contacted, Mr Narayanasami confirmed that he has tendered his resignation from the exchange, but did not divulge any further details.

However, industry sources said that Mr Narayanasami had some differences with other senior management personnel and certain promoters of the exchange, which led to his resignation.

Some exchange officials sought to downplay the exit and claimed that his employment contract had come to an end.

Speculation has been doing the rounds for a couple of months now about the imminent exit of Mr Narayanasami from the USE, but he has previously scotched such rumours.

The resignation comes within a month of the USE completing one year of operations.

The exchange, which is present only in the currency derivatives segment, completed its first year of operations on 20 September 2011, and has managed an average market share of 22% in recent months.

The average daily trading volume on the exchange is in excess of Rs10,000 crore.

Its shareholders include the country’s leading bourse BSE, Jaypee Capital Services, MMTC, Indian Potash and a host of public and private sector banks.

In the past, Mr Narayanasami is said to have had differences with certain promoters and board members over the levy of transaction charges in currency trading and over plans to expand the USE’s presence into other segments such as equity trading.

Earlier, in August, Mr Narayanasami had said that USE would hold a board meeting by the month-end to decide on the levy of transaction charges, but the exchange is yet to charge anything for this market segment, although two of its rivals, the NSE and MCX-SX, have already begun levying a fee.

Also, there have been reports about a conflict of interest and a possible breach of fair trade practices due to one of its largest shareholders, Jaypee Capital, being a major trader also on the exchange.

The reports have said that about 80% of currency derivatives trade volumes on the USE come from Jaypee Capital alone.

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Credit offtake by priority sectors up 17.3% in August

Credit disbursement to the priority sector stood at Rs12.41 lakh crore in August compared to Rs10.58 lakh crore in the same month last year, mainly due to a rise in education loans and borrowings by micro and small enterprises

Mumbai: Bank lending to the priority sector grew at a moderate rate of over 17% in August due to a rise in education loans and borrowings by micro and small enterprises, reports PTI.

Credit disbursement to the priority sector stood at Rs12.41 lakh crore in August, compared to Rs10.58 lakh crore in the same month last year, translating into a growth of 17.3%.

Credit offtake by the priority sector grew by 16.3% year-on-year in July this year, according to Reserve Bank of India (RBI) data.

Banks provide credit to priority sectors—including agriculture, small scale industries, retail trade, state-sponsored organisations for SCs/STs, education and housing—at an interest rate lower than their prime lending rates.

In August, bank disbursements to micro and small enterprises (MSEs) went up by 21.1% to Rs4.68 lakh crore from Rs3.87 lakh crore in the same month of 2010. In July, credit disbursement to the MSEs had gone up by 20.8% on an annual basis.

Credit offtake for education loans grew by 18% to Rs46,759 crore in August 2011, from Rs39,612 crore in the year-ago period. Bank credit disbursement to the sector increased by 14.8% year-on-year in July this year.

Export credit in August stood at Rs36,777 crore, up 11.8% from Rs32,892 crore in the same month of 2010.

Export credit increased by a mere 5.7% in July 2011.

Credit offtake from banks for housing also rose by 4.8% to Rs2.35 lakh crore from Rs2.25 lakh crore in the corresponding period last year. The sector had shown a growth of 2.7% in annual offtake during July.

Bank credit disbursement to weaker sections went up by 10.3% in August 2011. During the month under review, it stood at Rs2 lakh crore, compared to Rs1.82 lakh crore in August last year.

Credit offtake from banks by weaker sections had grown at an annual rate of 3.1% in July.

According to experts, the moderate growth in bank credit to the priority sector is in line with the general rate of credit disbursal for major sectors in the economy. Non-food credit in the country grew by 19.8% in August.

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DLF challenges CCI order; tribunal to hear appeal next month

In its Compat appeal, DLF has argued that the period referred to by the CCI in determining the company’s market position and other factors considered while passing the order were not relevant for the Gurgaon market

New Delhi: The Competition Appellate Tribunal (Compat) today registered an appeal filed by DLF against the Rs630 crore fine imposed by the Competition Commission of India (CCI) on the realty major for abuse of its dominant market position, reports PTI.

The tribunal has posted the matter for hearing on 9th November, sources said.

DLF began the process of submitting its appeal on Friday and its petition was registered today by Compat, they said.

Challenging the CCI order for abuse of dominant market position, DLF is believed to have argued that its market share in Gurgaon cannot be determined on the basis of all-India sales figures.

Soon after the CCI directive in August, DLF had said it would challenge the same and that it has a strong case against the points raised in the order.

The case pertains to the CCI’s imposition of a Rs630 crore fine on DLF on 16th August for abusing its dominant market position and imposing unfair conditions on the buyers of its flats.

Later in the same month, CCI passed another order in a separate case, wherein it asked DLF to ‘cease and desist’ from misuse of dominant position, but did not impose any penalty in this matter.

The orders followed enquiries by the CCI into complaints filed by flat-buyer associations of two DLF projects in Gurgaon.

In its Compat appeal, DLF has argued that the period referred to by the CCI in determining the company’s market position and other factors considered while passing the order were not relevant for the Gurgaon market.
 
The company has claimed that different kinds of properties, such as secondary or re-sale markets and investment markets, have to be considered for arriving at the relevant market and this has not been followed in the CCI order.

DLF was found to be the market leader based on a third-party analysis of the overall country-wide turnover of companies present in the Gurgaon real estate market.

Sources said DLF has also argued that CCI did not serve a show-cause notice before passing the order. In another high-profile order passed by the CCI recently, it had issued notices to the National Stock Exchange (NSE) before the final directive.

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