Forex reserves include a country's gold holdings and convertible foreign currencies held in its banks, including special drawing rights and exchange reserve balances, with the International Monetary Fund.
Foreign exchange reserve, often taken as a yardstick to gauge a country's financial strength, are the foreign currency deposits and bonds held by central banks or monetary authorities (it is Reserve Bank in case of India).
As many as 52 Indian companies raised money from external sources in October, of which $719.52 million was raised through automatic route for which no approval is required from the Reserve Bank of India or the government.
India is among the top 10 nations in terms of foreign exchange reserves.
Lord Jo Johnson, younger brother of former British prime minister Boris Johnson, has resigned his non-executive directorship of a UK-based investment firm linked with the now-withdrawn Adani Enterprises Follow-on Public Offer (FPO). 'The Financial Times' newspaper referenced UK Companies House records to reveal that 51-year-old Lord Johnson had been appointed as a director of London-based Elara Capital Plc in June last year and resigned on Wednesday, the day when the Adani Group announced withdrawal of the FPO. Elara, which described itself as a capital markets business raising funds for Indian corporates, was among the bookrunners on the FPO.
Till now borrowings in the form of ECB were not permitted to be utilised for general corporate purpose.
AMCs can invest $7 billion abroad, and $300 million per AMC, but investments are way below these levels. Most equity schemes can invest 35 per cent of their assets abroad and there are schemes that invest only in overseas equity. What's holding them back is that they are not very sure if they can buy these bonds.
The board of Unitech Ltd, the country's second largest realty company, has approved a plan to raise Rs 5,000 crore through debt and equity issues and will convene an extraordinary general meeting on January 19, 2009 for shareholder approval. Sanjay Chandra, Unitech managing director, said today's proposal was a flexible enabling provision.
India needs to move towards full capital account convertibility to become a leading global economy.
The bonds are expected to be listed on the Singapore Stock Exchange and closing is likely to take place on January 21, 2008, subject to requisite approvals, Gremach said in a filing to the Bombay Stock Exchange. The company intends to use the net proceeds of the issue for foraying into oil rig business as may be permitted by Indian law and RBI regulation.
'Of the 20 trading days of January till January 28, FIIs have been selling for 19 trading days'. 'When did FIIs withdraw money with this kind of intensity?' 'It never happened. It's the first. It did not happen even during the 2008-2009 financial crisis when Lehman went under.' 'Even then you did not have like a 19-day selling spree from the FIIs.'
Last month, the ADAG firm announced that it had bought back 250 FCCBs worth $100,000 each, aggregating about Rs 121.22 crore (Rs 1.21 billion). The bonds were bought back at a discount of 52.5 per cent over the issue price. In two tranches, RCom has bought back FCCBs aggregating to about Rs 170 crore (Rs 1.7 billion).
This was the companies' highest loss in two years.
Board has also accepted the resignations of Marans.
Given the stability of the rupee over the last 10 months, many companies have been tempted not to hedge their foreign currency risk.
India imposes restrictions on how much money its citizens and companies can invest abroad
Those who consider the rupee as a proxy for virility have started thumping their chests and dreaming of dethroning the dollar from its coveted position, observes Tamal Bandyopadhyay.
he 2014 electoral verdict has bolstered investor confidence and raised hopes of economic revival, apex banks says in its monthly Bulletin
The RBI's comments, announced after trading hours on Wednesday, comes as yields had risen by 60 basis points after a surprise hike in the repo rate on Friday and on worries about the fiscal second borrowing programme of the government.
The bonds will likely be simultaneously launched in major financial centres such as London, Singapore, Hong Kong, New York for a term of no less than 20 years.
'India's fundamentals are a lot better (than those of other emerging market economies).' 'India will suffer (witness a fall in its stock market) what I call the second order effect.' 'And the second order will happen when these funds (belonging to macro and hedge fund investors and which have leveraged Japanese yen-carry trades), because they lose money elsewhere as lot of their positions were financed by borrowing Japanese yen, will have to book profits in investment destinations where they are making money, including in markets like India.' 'They (these investors) will have to effectively sell in countries like India and which is the consequence (the crash in equity markets) that Indian markets might see.'
Solar equipment manufacturing, however, is unlikely to pick up in India as Chinese imports are more cost-effective
Anil Rego, CEO, Right Horizons, answers your personal income tax queries.
The most preferred CoCo bonds are those through which banks raise their additional Tier-I capital.
Our break-even level has come down and we expect the cost structure to improve further, says the Suzlon chief.
Rajan's deputy Khan cautions against early celebration of falling inflation, unhedged forex exposure.
The post-crisis debate on capital account management focuses on matching instruments with vulnerabilities.
Tata Motors, ONGC, HDFC and TCS were the top gainers.
The better performing states throw up more employment opportunities including at unskilled levels.
Monsoon is expected to be normal in June.
The problems are being compounded by perceptions that India is ill suited to defend the currency in the near-term.
In February, FPIs sold $421 mn in debt; in March they have sold $133 mn so far
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The 30-share Sensex lost 22 points to close at 27,090 and the 50-share Nifty gained 7 points to end at 8,121.
RBI is unlikely to stem the slide against the dollar as the greenback is rising rapidly against all currencies in the world.
'The most important thing is that the psychological signal it is giving to the markets and international markets,' says former finance secretary Arvind Mayaram.
The rupee's gains came even as most emerging Asian currencies eased as the yuan fell beyond 6.20 to the dollar for the first time since April last year amid market speculation that the central bank will keep the currency weak as economic growth slows.
'It is going to be a tough balance for the RBI to manage economic stability and ensure smooth government borrowing.'
The development follows the acquisition of 37.5 per cent stake in the air-carrier by South-India based media baron, Kalanithi Maran.
Tulip IT Services, a New Delhi-based data communication and software services firm, having raised $150 million via foreign convertible currency bonds (FCCB), has earmarked around $40 million (Rs 160 crore) for a acquisition.
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