Tata Consultancy Services informed the market that it has entered into a agreement with Citigroup for acquiring all of Citi’s stake in Citigroup Global Services,CGSL is india based BPO arm of Citi.This is for a cash dealing of 505 million dollar.First when i heard that they have bought the BPO arm of CITI for a half a billion i was thinking why would TCS do that , but now when i heard more info like there was also a deal made that TCS would process outsourcing services to Citi and its affiliates in an aggregate amount of US$ 2.5 billion over a period of 9.5 years. So this might be also extra reason behind buying into the BPO arm of CITI.
SEBI has taken a wise step by reviewing the P-Note restrictions and FII structure. This positive move will restor confidence in FII and as a result the capital inflow will commence in India. These norms have been announced by SEBI considering the heavy FII sale as seen yesterday where FIIs sold $9.4 billionworth of equity. It is heartening that to restore confidence in Indian stock market CB Bhave, SEBI chairman stated that FII structure is being reviewed and unnecessary curbs on these FII will be removed. Additionally restrictions on ODI's in derivatives have been removed and restrictions also on only 40% ODI in cash investments are to be removed.He further stated that 40% limit on P-notes will also be removed. SEBI as a watchdog of Dallal street is keeping tab on global situation and only thereafter further norms will be reviewed.
The Federal Reserve will double its auctions of cash to banks to as much as $900 billion and is considering further steps to unfreeze short-term lending markets as the credit crunch deepens.
"The Federal Reserve stands ready to take additional measures as necessary to foster liquid money-market conditions,'' the central bank said in a statement released in Washington today. Fed and Treasury officials are ``consulting with market participants on ways to provide additional support for term unsecured funding markets,'' the statement said.
Today's steps follow a hoarding of cash by banks that sent the premium on the three-month London interbank offered rate over the Fed's benchmark interest rate to a record. Industrial companies are also finding it harder to raise cash after the market for commercial paper shrank to a three-year low as investors flee even borrowers with few links to mortgages.
``It is pretty much all out war,'' said Christopher Rupkey, chief financial economist at Bank of Tokyo-Mitsubishi UFJ Ltd., New York. ``They are pulling out all the stops to try and get borrowers and lenders to meet and do transactions once again.''
Implementing part of last week's emergency legislation to shore up the financial industry, the Fed said today it will begin paying interest on the cash reserves banks hold at the central bank. The step should give Fed officials greater power to inject cash into banks without interfering with their benchmark interest rate, which stands at 2 percent.
India's rupee closed above 48 per dollar for the first time since June 2003 on Tuesday. * Weak stocks, stronger dollar overseas weigh * Dollar demand from oil companies hurts * Dollar sales by corporates help recover some losses (Updates to close)
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