The RBI's warnings signal its concern that unhedged firms could be a vulnerable link should global markets buckle.
The fourth quarter of financial year ending March 31, 2008, may hold a mixed bag of results for Indian information technology (IT) companies. On the one hand, IT firms - which hedged themselves taking the view that the Indian rupee would continue rising against the US dollar - will have to bear a negative impact on the portfolio that has been hedged so far. On the other, their top line as well as operating margins (EBIDTA) will get a boost since the rupee has depreciated.
Another PSU has entered the arena of bullion Futures market. In a recent development, the Handicrafts & Handlooms Exports Corporation of India, a PSU under the ministry of textiles, has started hedging in bullion metals at the Multi Commodity Exchange. According to the PSU officials, it has hedged Rs 13 crore in gold and silver over the last one month.
The Reserve Bank of India plans to allow exporters and importers to rebook and cancel up to 50% of their total hedged exposure from the present cap of 25%, Executive Director G Padmanabhan said a in speech in Singapore on Friday.
Hedge funds operating in the US and other parts of the world provide a good business process outsourcing opportunity for India, given the business model of the funds shifting their assets from one market to another, experts have said.
Manufacturers could effectively lock in a sales price by going short an equivalent amount of goods with futures contracts.
When it comes to the Congress and Wayanad, the only way the scepticism in the minds of some in Kerala may be addressed is by the Gandhi family proving that they are more than a passing caravan in town, reports Shyam G Menon.
The hedge fund servicing unit would be headed by John Nicholson, a former Barclays Capital executive, who would become the managing director in Citi's US trading team, the Financial Times reported.
The NBFCs, which filed for ECB in January with the Reserve of India (RBI), include REC (over $500 million), Tata Motors Finance ($200 million), L&T Finance Holdings ($125 million), and Shriram Finance ($750 million), according to the RBI data. A senior executive with State Bank of India (SBI) said overseas borrowing by Indian companies, including highly rated NBFCs, was likely to grow because hedging costs were low and there was a softening bias in global interest rates.
Market participants do not expect any immediate impact on the rupee from the Reserve Bank of India's (RBI's) a "comprehensive" master direction aimed at strengthening the framework for hedging foreign exchange risks. RBI Governor Shaktikanta Das, in his monetary policy statement, revealed that the central bank is poised to issue a master direction to consolidate guidelines for all types of forex transactions. But this development, according to market players, is more of a directional guidance than a mandatory directive.
BIf you know this BJP, it will now go forward to Jharkhand and Maharashtra as if June 2024 never happened, notes Shekhar Gupta.
The European Union's attempt to regulate hedge funds will affect other classes of alternative investment such as real estate funds and investment trusts, lawyers studying the fine print of the new rules have warned.
Firm is conducting feasilbility studies on setting up units in 40 countries, will take final call based on global fallout of trade spat.
'Subject to any worldwide economic collapse.'
The Reserve Bank of India said on Thursday it would allow banks, primary dealers and national financial institutions to hedge interest rate risks on the country's exchanges.\n\n\n\n
Markets regulator Securities and Exchange Board of India (Sebi's) measures to curb speculative activity in the Rs 450-trillion-a-day futures and options (F&O) market is not a case of "throwing the baby out with the bathwater," whole-time member (WTM) Ananth Narayan said on Friday. "As a regulator, we are conscious that we must not throw the baby out with the bathwater. "When it comes to frenzied trading in options nearing expiry, however, it is difficult to see any baby in this bathwater," he said while delivering his address at the 21st FICCI Annual Capital Markets Conference.
Pratham Barot, CEO and co-founder, Zell Education, explains how specialised courses in finance can help you earn a cushy six-figure salary.
Reports (not denied by India) that the USA had 'for the first time provided real-time details to their Indian counterparts on the Chinese positions and force strength in advance of a PLA incursion' into Tawang at the LAC in December 2022, helping India thwart China's expansionist designs, show how operationally effective the USA-India friendship has become on the ground. A engaging excerpt from Sreeram Chaulia's must-read new book, Friends: India's Closest Strategic Partners.
The Reserve Bank of India's decision to allow airlines hedge jet fuel in global markets came in for praise from the industry and the civil aviation ministry, but end-users are unlikely to benefit in the form of lower airfares.
The finance ministers of the European Union reached an agreement to introduce more stringent control over hedge funds and private equity firms as part of a major effort to regulate financial markets.
Hedging means reducing or controlling risk.
From the Sensex basket, Kotak Mahindra Bank jumped 5 per cent after the company reported a 25 per cent growth in its March quarter net profit at Rs 5,302 crore, limited by a drop in the core income due to narrow interest margins. Tata Consultancy Services, Hindustan Unilever, Mahindra & Mahindra, Sun Pharma, Tech Mahindra and IndusInd Bank were among the other major gainers. Titan tanked 7 per cent after its March quarter earnings failed to cheer investors.
The statement comes Days after Trump sought Imran Khan's help in the Afghan peace process.
As they feel that the rupee may depreciate to 43.75 levels over the next six months.
Everyone in Bollywood seemed to have the same entry in their busy dairy schedules on April 24: Attend the grand screening of Sanjay Leela Bhansali's epic Web series, Heeramandi: The Diamond Bazaar.
The Securities and Exchange Board of India is considering the formulation of norms for registration of hedge funds in the country to provide them an investment window and improve quality of their regulation.
This period saw big stars of the likes of Sunil Gavaskar and Kapil Dev fade into the sunset while it was witness to the birth of slew of young Indian cricketers that made their mark home and abroad.
Brokers believe that the higher charges may not completely deter investors from taking bets in F&O but could help cool down some activity, as the threshold to break even rises.
'We have to keep a watch because India-Sri Lanka has a history that whenever there has been a change in government, either the connectivity projects have been questioned or cancelled or revived.'
Mathew Martoma, 38, was arraigned at Manhattan federal court in New York on Thursday before Judge Paul Gardephe and entered a not guilty plea to one count of conspiracy to commit securities fraud and two counts of securities fraud.
Despite taking strong military action against militants in recent months, the Pakistani establishment has maintained relationship with those extremist groups as a hedge, US Defence Secretary Robert Gates has said.
Chief Executive S Ramadorai said, "We have hedged for about $1.5 billion. I believe one has to run the business on fundamentals and not on currency fluctuations." He also said it was very difficult to predict the rupee movement as in the last one-and-a-half months, the currency has begun to depreciate against the dollar.
Senior Congress leader Jairam Ramesh also asked the RBI to make public details of FDI inflows from Cayman islands since demonetisation.
Tata Consultancy Services on Monday said it has hedged funds of about $1.5 billion to create a safeguard against the fluctuations in the rupee movement.
Have a Plan B in place if the tide turns against you.
Exchange-traded currency derivatives volumes are likely to drop in view of new Reserve Bank of India (RBI) rules, casting a cloud over further participation of retail investors and proprietary traders. There are concerns that existing positions without any underlying exposure will need to be liquidated. Also, weighed down by dollar demand from local oil companies and weakness in its Asian peers, the rupee on Wednesday (April 3) ended at a new closing low of 83.44 versus the US currency.
Like the billionaire investor Rakesh Jhunjhunwala, Gautam Gambhir, the tenacious former opener-turned-coach, also seems to be governed by instincts while picking unheralded players and turning them into match-winners, points out Vishal Menon.
