SECTORS NEWS TODAY – 26.08.2016
* Aviation: GoAir's initial public offer is likely by the end of fiscal 2017-18. Investment firms like SBI Capital Markets, Kotak Mahindra, Edelweiss and Motilal Oswal have pitched for managing the issue.
* BANKING: The Reserve Bank of India has ordered banks to enter details of farmers availing crop
insurance under the Pradhan Mantri Fasal Bima Yojana on the insurance scheme's portal at the earliest.
-The RBI has announced changes to the risk weights assigned to banks' exposures to unrated debt of
companies, asset and infrastructure finance companies.
-The Reserve Bank of India is considering allowing corporate bonds as eligible securities under the
Liquidity Adjustment Facility, saying the necessary amendments to the RBI Act have commenced.
-RBI issued stringent draft norms on large exposures of banks to standalone and group entities. It set the large exposure limit for a standalone entity at 20% of the bank's tier-I capital, and 25% for the
groups.
* COMMODITIES: The Reserve Bank of India will appoint a panel to review the existing framework for hedging of commodity price risk by residents in overseas markets.
* FINANCIAL MARKETS: The Reserve Bank of India has revised the prudential norms governing
restructuring of banks' derivative contracts, saying only the change in the mark-to-market value of the
contract had to be settled in cash.
-The Reserve Bank of India today increased the aggregate exposure limit of all banks under the partial credit enhancement scheme of corporate bonds to 50% from the existing 20%.
* POLICY: The government is planning to take Cabinet approval to close seven loss-making public sector companies at one-go out of a list of 74 such companies.
* RAILWAYS: Has sought finance ministry's approval to raise $500 mln through rupee-denominated or masala bonds to invest in infrastructure projects.
* Aviation: GoAir's initial public offer is likely by the end of fiscal 2017-18. Investment firms like SBI Capital Markets, Kotak Mahindra, Edelweiss and Motilal Oswal have pitched for managing the issue.
* BANKING: The Reserve Bank of India has ordered banks to enter details of farmers availing crop
insurance under the Pradhan Mantri Fasal Bima Yojana on the insurance scheme's portal at the earliest.
-The RBI has announced changes to the risk weights assigned to banks' exposures to unrated debt of
companies, asset and infrastructure finance companies.
-The Reserve Bank of India is considering allowing corporate bonds as eligible securities under the
Liquidity Adjustment Facility, saying the necessary amendments to the RBI Act have commenced.
-RBI issued stringent draft norms on large exposures of banks to standalone and group entities. It set the large exposure limit for a standalone entity at 20% of the bank's tier-I capital, and 25% for the
groups.
* COMMODITIES: The Reserve Bank of India will appoint a panel to review the existing framework for hedging of commodity price risk by residents in overseas markets.
* FINANCIAL MARKETS: The Reserve Bank of India has revised the prudential norms governing
restructuring of banks' derivative contracts, saying only the change in the mark-to-market value of the
contract had to be settled in cash.
-The Reserve Bank of India today increased the aggregate exposure limit of all banks under the partial credit enhancement scheme of corporate bonds to 50% from the existing 20%.
* POLICY: The government is planning to take Cabinet approval to close seven loss-making public sector companies at one-go out of a list of 74 such companies.
* RAILWAYS: Has sought finance ministry's approval to raise $500 mln through rupee-denominated or masala bonds to invest in infrastructure projects.
