How Banks And Mfs Are Gaming Money Markets

Friday, Apr 05, 2013 HOW BANKS AND MFs ARE GAMING MONEY MARKETS   Banks and mutual funds in India are earning abnormally high returns in money markets by breaching the RBI rules forbidding forward trades, multiple people involved in the practice said, undermining the effectiveness of monetary policy in the process. The widespread practice, known as "river crossing", involves three-way trades in certificates of deposit between banks and mutual funds and typically takes place at the end of every fiscal year in March when cash conditions in the banking system are tight. read more   LEAD STORIES NIFTY FALLS TO NEAR 7-MONTH LOW; ENDS AT 5,553.25  Markets fell over concern that FIIs would exits some of their holdings. Sensex closed at 18,450.23 down 59 pts with HDFC falling 2.7% and USL 3.9%. read more GLENMARK PATENT ROW: HC DENIES INTERIM RELIEF TO MERCK  Delhi HC dismissed U.S. major Merck Sharp & Dohme application that Glenmark be restrained from manufacturing anti-diabetes medicines. read more KYC VIOLATIONS BY ICICI, AXIS & HDFC BANK: RBI  The RBI has found serious KYC violations by ICICI Bank, HDFC Bank & Axis Bank. RBI said that the amounts involved were not more than Rs 1-2 crore. read more DIAGEO DECLINES TO LIFT UNITED SPIRITS OFFER PRICE  Diageo is sticking with its tender offer price of Rs 1,440/share for up to 26% of company. The open offer will be launched on April 10. read more TOP STORIES • U.S. stocks open in the red post dismal jobs report   • DoT penalises Voda, Idea over 3G roaming pacts   • 3G roaming:SC to hear Bharti's plea against DoT order   • Idea Cellular gets tax demand, may challenge order   • 700 cr penalty on telcos for violating radiation norms   • Govt mulls 26% FDI in insurance broking via auto route   • Govt's $15 bn Rafale deal may be delayed   • CCI relaxes M&A regulations   • Accenture to invest over $ 400 m in cloud technologies   • IRDA directs life insurers to renew dormant licences   • Locals torch JK Lakshmi Cement plant for want of jobs   • Indian police investigating Google mapping contest   • France's Auchan mulls invst in multi-brand retail   • Goafest 2013: Mindshare bags 10 Media Abbys   • Fashion retailer Myntra buys U.S.-based Fitiquette   • British music retailer HMV rescued by U.S.-based Hilco   • Yen falls to 42-mth low after BOJ's radical stimulus   • Former Enron CEO may be freed from prison earlier   • HP chairman Ray Lane resigns, Whitworth takes over   • Queen receives Bafta Award for Bond girl role   more stories TOP VIDEOS The Policy Measures Taken In Japan To Revive Economic Growth Are "Quite Dangerous" & Could Potentially Work Against The Economy: George Soros, Chairman, Soros Fund Management   BRIC Not In Category Of Emerging Mkts Where Local Investors Are In A Good Mood, Likely To See Money Shift From Emerging Markets To Japan: Mark Matthews, Julius Baer   Large Corporate Loan Book Strong, Stress Seen In Mid & Small Sized Cos; Positive On Agri Portfolio: Pratip Chaudhuri, Chairman, SBI   AT A GLANCE BSE 18450.23 -59.47 NSE 5553.25 -21.5 TURNOVER Rs. 146,213 cr BSE CASH Rs. 1,547 cr NSE CASH Rs. 9,529 cr NSE F&O Rs. 126,321 cr BULLION GOLD 29191 +169 SILVER 51149 +194 CRUDE NYMEX 92.25 -1.01 BRENT 105.05 -1.29 FOREX $ / Re 54.805 -0.06 £ / Re 83.981 +0.38 € / Re 71.316 +0.36 EVENTS TO WATCH 6 April IPL 6, Match 4, Delhi Daredevils Vs Rajasthan Royals, Delhi, 4 PM Match 5, Chennai Super Kings Vs Mumbai Indians, Chennai, 8 PM NASSCOM GIC Conclave, Hotel Leela Palace, Delhi 8 April Gujarat Chief Minister Narendra Modi To Address Ladies' Wing Of FICCI, New Delhi Network 18 Think India Dialogue, New Delhi SC To Hear Sunil Mittal's Plea On 2G Court Summons 9 April Narendra Modi To Address Captains Of Industry, Kolkata

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"...economic policies designed to promote growth have been implemented without considering their full environmental consequences, presumably on the assumption that these consequences would either take care of themselves or could be dealt with separately." Manmohan Singh Prime Minister "We as government of India have to work very closely with state governments because in New Delhi, you can only do paper work and registration and the compliance (part)... The actual setting of shops happens in states, geographically they have to establish themselves there. Therefore, a close co-operation and of course good working relationship with many state governments is also required." Sachin Pilot Corporate Affairs Minister "I am happy to report that we have exceeded the target for indirect taxes. We are close to the target for direct taxes. So, combining (direct and indirect tax collections) we have certainly met the revised estimates. From the revenue side we have done our bit for fiscal consolidation." Sumit Bose Revenue Secretary, Finance Ministry