Financial Technologies Ltd: What are its Future Short Term Targets?

Some points need to be highlighted here:

(i) According to NDTV Profit, August 27, 2014: 

Jignesh Shah-led FTIL asserted that promoters of MCX-SX did not conceal facts while seeking extension of recognition of the exchange in 2009 from capital market regulator Sebi.
The Bombay High Court did not find anything illegal in the buyback arrangement.
"...it was expressly held that the said buy back arrangement is not in violation of the Securities Contract Regulation Act (SCRA), 1956, and the Securities Contract (Regulation) (Manner of Increasing and Maintaining Public Shareholding in Recognised Stock Exchanges) Regulation, 2006 (MIMPS)," it said.
This Bombay High Court order was challenged by Sebi in the Supreme Court.
"The Supreme Court passed a consent order. Finally, Sebi granted permission to MCX-SX to undertake the business for all segments in addition to currency derivative segment after being satisfied that MCX-SX has complied with all the legal requirements."
"Thus the matter regarding the alleged violation of SCRA and MIMPS regulations stands adjudicated at the highest judicial level and cannot be re-opened," the statement said.
Regarding alleged irregularities in grant of extension to MCX-SX, FTIL said promoters of the exchange had always believed that the inter-se arrangements amongst the shareholders were legal.
"Further at the time of extension of recognition of MCX-SX in the year 2009, we understand that MCX-SX only sought time from Sebi for reducing the shareholding to comply with applicable Sebi regulations."
"We understand that at that point of time, no statement/representation was made by MCX-SX to Sebi in its application for extension that it was in compliance with all the relevant Sebi regulations. Therefore, the question of concealing certain facts by the promoters of MCX-SX does not arise," FTIL said.
Stating that the application for extension of recognition was made by MCX-SX and not by FTIL or Mr Shah, the company said it was surprising that promoters of MCX-SX and Jignesh Shah are being implicated in the FIR for certain alleged non-disclosures in the application.

(ii) The Bombay High Court recently appointed a three-member committee to audit NSEL and liquidate assets of its defaulting borrowers to facilitate a refund of investors’ money. Authorities claim they have attached properties worth about Rs.5,000 crore of the defaulting borrowers. 

(iii) Justice AM Thipsay of the Bombay High Court, said the transactions in question were being entered through brokers who had knowledge of the commercial market. He said: "Those terming themselves as investors were actually traders". And, so, the judge also questioned whether the Maharashtra Protection of Interests of Depositors (in Financial Establishments) Act was at all valid in this case.

The judge says the fact that transactions in question were not genuine ones of sale or purchase was known to both sides. The so-called investors and their brokers were pursuing high returns without bothering about the legalities of the trades in question. That these trades were fictitious were quite clear to the investors, too, said the judge, and they’d “entered into the transactions purely as financial investments”.

“Going by the broad probabilities of the case, it cannot be accepted that the persons who are now crying foul, were not aware of the fact that their transactions were not genuine. They were looking at these transactions clearly as an investment of their monies yielding safe returns,” the court said.

(iii) Merging NSEL with FTIL, according to the experts would be difficult to undertake, given that FTIL was a publicly-listed company and such a move may be opposed by minority shareholders.

(iv) According to Forbes India, 4 September, 2014:

As in some financial market scams, investors entered into these contracts through registered brokers, lured by expectations of capital growth. 
How much did (Jinesh) Shah know about this and what could he have done? His closest friends and business associates told Forbes India that while he expanded operations to Southeast Asia, the Middle East and Africa, he began losing the plot. Shah had spent years battling with regulator Securities and Exchange Board of India (Sebi) to acquire a stock licence for his newest exchange, MCX-SX. He won that mandate, but probably did not bother to monitor what was unfolding at NSEL. 
The imbroglio also revealed more about Shah’s personality. Some friends and associates, seen as part of Shah’s “inner circle”, revealed that he could have actually walked out of the mess with his head held high. There were at least two possible corporate suitors, who were in talks for a potential bailout of FTIL, if Shah had agreed to move out. But ego and the need for control perhaps prevented him from going ahead with the deal. 
Also, unlike most previous cases, several investors who lost money in the NSEL scam were well-off. As an investment consultant told us he had “no sympathy” for investors who–keen on making quick bucks and higher returns-lost money. They did not do their due diligence. 

FTIL to 'highlight correct facts' of MCX-SX buyback to CBI

Photo: Business Standard

27 Aug, 2014: MUMBAI: Financial Technologies (India) or FTIL has clarified to the BSE that it would make a representation to CBI "highlighting the correct facts" with regard to the "alleged illegality" of the buyback arrangement between itself and a nationalised bank of MCX Stock Exchange's shares. 

CBI on Monday lodged an FIR against three serving officials and a former one of Sebi, and Jignesh Shah, promoter of FTIL — the erstwhile promoter of MCXSX — alleging that the promoters of the bourse had entered into a buyback arrangement with a nationalised bank, in violation of relevant rules, and "in connivance with Sebi officials, deliberately suppressed this material fact" while applying for an extension of recognition of MCX-SX, to conduct trade in currency derivatives in 2009. 

The FTIL stock closed down almost 5% at Rs 259 apiece on Tuesday. 

FTIL in its clarification pointed out that the Bombay High Court found "nothing illegal in the said buyback arrangement" while hearing a petition filed by MCX-SX against a Sebi order of 2010 declining to give it permission to operate as a full-fledged stock bourse, other than for offering currency derivatives. 

Further, at the time of the extension of recognition of MCXSX in the year 2009, "we understand that MCX-SX only sought time from Sebi for reducing the shareholding to comply with the applicable Sebi regulations. 

We understand that at that point of time, no statement/representation was made by MCX-SX to Sebi in its application for extension that it was in compliance with all the relevant Sebi regulations. Therefore, the question of concealing certain facts by the promoters of MCX-SX does not arise," said FTIL. 

It further added that as required by law, the application for renewal/extension of recognition was made by MCX-SX and not by its promoters (i.e. FTIL) or Jignesh Shah. 

Courtesy: The Economic Times

MCX SX cancels Financial Technologies warrants

[Editor: Today the shares of Financial Technologies Ltd were recommended as a buy at Rs.277-278, for a target of Rs.320-325, in the short term. On the other hand the shares of Allied Digital Services Ltd (Rs.19.40) are buzzing, as the company is the hot favourite to win the mega, Rs.1000 Cr (please clarify the exact value of the tenders from your sources), Mumbai-CCTV-project. The project, announced to enhance security in the city after the 26/11 terror attacks, aims at installing 6,000 CCTV cameras in the city (14 cameras per sq km)]

MUMBAI, AUG 25:  MCX Stock Exchange has extinguished warrants held by Financial Technologies and transferred Rs. 56.25 crore non-refundable interest free deposit issued against the warranted to the capital reserve.

The development will increase the exchange networth to Rs. 160 crore from Rs. 110 crore and help meet SEBI minimum networth criteria of Rs. 100 crore.

The decision to cancel the warrants was taken by the board after perusing legal opinion on the SEBI order dated March 19 and Securities Appellate Tribunal order dated July 9 regarding the warrants held by Financial Technologies.

Earlier this year, the exchange shifted MCX and FTIL from “Promoter Category” to “Public Category”.

Meanwhile, the Comptroller and Auditor General of India has informed that it has concluded the supplementary audit of the financial statements of MCX-SX for the year ended March, 2014 and has mentioned that nothing significant had come to their notice which would give rise to any further comment or supplement to the Auditors’ Report, said MCX-SX in a statement.

The Exchange has shifted its corporate office to its new premises at Bandra Kurla Complex in Mumbai.

Saurabh Sarkar, Managing Director, MCX SX stated that “We are poised for a complete turnaround in the next few months. The recent developments will improve the sentiments of potential investors and restore the faith of the market participants on the turnaround of our exchange.”

Courtesy: The Hindu Business Line

MCX gold can consolidate sideways

[Editor: Gold has always been and will continue to remain as safe instrument of choice when people lack confidence in their governments. Lacking confidence doesn't only mean that they’re not certain that equities will perform, but it also may mean that they don’t trust their government, that it will operate in their best interests...in such a scenario Gold can be best alternative both as an investment and a trading option. The Chinese demand for Gold is constantly on the rise and it is anticipated that its gold demand may overtake India as the largest consumer in the near future. Physical demand for gold coins is still very strong globally.  Moreover, India’s traditional strong festive season and demands due to ensuring wedding season, followed by Diwali, may keep the Gold prices buoyant. However, in Comex, Gold has stiff resistances at $ 1375 and $ 1390, whereas supports can be found at $ 1350 & $1320]

In a surprise move, the US Federal Reserve retained its stimulus measures in its policy meet last week. Gold hit $1,363.7/ounce on Wednesday, up 4 per cent and closed the week at $1,325/ounce. The news that existing home sales in the US increased 1.7 per cent in August to an annual rate of 5.48 million units against the expected 5.25 million units dragged price. Silver ended the week at $22.2/ounce, down two per cent.

SUBDUED APPETITE

Investors’ appetite for gold didn’t return. The US SPDR gold trust’s holdings were reported at 910.19 tonnes on Friday, marginally lower from the previous week.

In the domestic market, gold reversed its downward track and recorded a gain despite rupee’s appreciation. MCX gold hit Rs 30,544/10 gram on Thursday and closed the week at Rs 29,277/10 gram, up one per cent. MCX silver ended at Rs 49,306/kilogram, up marginally. Rupee hit 61.64 against the US dollar on Thursday, but later lost steam and ended at 62.26.

MCX saw good trading interest in gold and silver futures contract. In gold, the average daily volume was 1.54 lakh contracts, up from the previous week’s average of 1.14 lakh contracts. In silver futures, the average volume was 1.59 lakh contracts, up 35 per cent over the previous week.

MARKET NEXT WEEK

Analysts do not see a change in Fed’s stance of continuing on stimulus at least till November. In August, the jobless rate in the US was 7.3 per cent, much higher to Fed’s comfort level of 6.5 per cent. The US GDP growth estimates have also been revised downwards to 2-2.3 per cent from around 2.3-2.6 per cent earlier. But, gold investors can’t take much comfort.

The yellow metal will remain volatile till a decision is taken on raising the debt ceiling. Failure to arrive at a consensus, though, may give gold a leg up. Next week, the flash PMI Manufacturing numbers on Monday, consumer confidence numbers on Tuesday and new home sales numbers on Wednesday will also be watched. Thursday will see the quarterly GDP estimates and the crucial jobless claims numbers from the labour department. For domestic market gold traders, rupee’s move will be key to gains/loss in portfolio. In his first monetary policy review on Friday, the RBI Governor Raghuram Rajan reduced the MSF (marginal standing facility) rate by 75 basis points reversing partially the liquidity tightening measure taken in July to save rupee.

TRADING TIPS

As indicated in our previous column, MCX gold cut its first support around Rs 31,160/10 grams last week. However, it reversed at Rs 29,277 much before the second support at Rs 28,743 on positive cues from the Fed. Now, it looks like the metal may hover sideways for sometime and then drop to Rs 29,200. The next support on the downside would be Rs 28,800.

The metal needs to gain momentum and break Rs 31,400 to see a trend reversal. For this, a drop in rupee may be of help.

MCX silver too behaved in a manner that we had forecast and cut the support at Rs 49,239/kilogram to hit a low of Rs 48,488. In the coming week, the metal may weaken further to Rs 46,713 and Rs 43,587. If price manages to rise and cut Rs 52,863, it could hit Rs 55,566.

rajalakshmi.sivam@thehindu.co.in

Courtesy: The Hindu Business Line

NSEL: Jignesh Shah’s fall from grace and why he will weather it

Photo: Live Mint

Aug 5, 2013: One question that has risen ever since troubles at National Spot Exchange emerged is: what will happen to Jignesh Shah and the empire he built on his entrepreneurial spirit?

Jignesh Shah's has been a story of both backward and forward integrations. He started off in the business of exchange technology, went on to set up exchanges, both commodities and equity, and also ventured into many related businesses.

The growth of his flagship company Financial Technologies (FT), which is also the holding company, has been envious.

Initially a technology services provider for stock exchanges, FT set up Multi Commodity Exchange, which went on to dominate the Indian commodity futures trading market.

Under a weak Forward Markets Commission, which did not have much power, commodity futures trading in India was thriving, with turnover running into trillions.

For FT, MCX was a money spinner. The exchange offered lower transaction charges as the technology that it used for trading came from its own parent company.

Shah spotted business opportunity around MCX and was quick to cash in on those.

He set up National Bulk Handling Corporation (NBHC), National Spot Exchange and even a real time market data provider TickerPlant.

Initially, NBHC set up warehouses for those commodities traded on MCX. Later on, it saw a bigger business opportunity by offering warehousing services to farmers and also started facilitating bank credit to farmers.

According to a report in Business Today magazine published in 2009, as a facilitator of farm credit, NBHC got two-way fee - 25 basis points from farmers and 25-75 bps from banks.

With the government allowing trades in warehousing receipts, it is not only NBHC that got a boost, but NSEL too got advantages.

Warehousing receipts are the receipts that farmers got while storing their produce in NBHC warehouses.

(Ironically, these are the very instruments that have come into focus in the present controversy involving NSEL. It has been found that the spot exchange, where short sales are not allowed, had actually permitted warehouse receipts trading, without checking whether the trader had the underlying commodity in the warehouse.)

NSEL thrived in a regulatory vaccum. While FMC regulated the futures market, the spot exchanges came under the state government. There was no clarity as to who regulated the spot markets. It was an exemption from the Union ministry of consumer affairs that enabled the NSEL to launch a product that had characteristics of forwards contract.

After launching NSEL, FT set up the real-time data platform even as plans were on to roll out a stock exchange. The data service had to be scaled down and the equity exchange, MCX SX, was launched after much delay because of Sebi's reservations and the legal battle that ensued.

According to the Business Today report, the vision behind all these moves was financial inclusion.

"FT's strategy is based on driving financial inclusion by reaching out to the bottom of the pyramid as this will drive future business," the report quotes Sanjeev Patkar, Director (Research), Dolat Capital, as saying.

Clearly, Shah aimed higher. As part of his strategy to take his business international, he started the Dubai Gold and Commodity Exchange (DGCX) in partnership with Dubai Multi-Commodities Centre (DMCC).

As the old adage goes, the higher you go, the steeper the fall.

The share prices of Financial Technologies fell a sharp 70 percent, in just two days after the troubles at NSEL emerged.

According to a report in the Business Standard, in the boom year of 2007-08, Financial Technologies was valued over Rs 13,000 crore. Now, it is down to just about Rs 700 crore.

According to an Economic Times report, Shah himself witnessed a wealth erosion of about Rs 1000 crore.

There are many theories-including conspiracy angles-about what resulted in the down fall.

Sudip Bandyopadhyay, managing director and chief executive officer of Destimoney Securities, sums up it all in a report in Mint.

"He (Shah) has probably bitten off more than he can chew."

According to him, Financial Technologies' troubles started with MCX-SX. "The problem started when the group tried to get into the stock exchange business," he has been quoted as saying in the report.

The BS report says trouble may be brewing at DGCX as DMCC has taken technology of Cinnober, another exchange technology provider, instead of FT's. It also says FT may be planning to sell off its 44 percent stake in DGCX.

But is it all over for Financial Technologies and Shah? Many are of the opinion it is not.

"I never quite liked his style. But he has that ability to come out of difficulties," PH Ravikumar, former CEO of NCDEX and once an arch rival of Shah, has been quoted as saying in the ET report.

Courtesy: Firstbiz

Financial Tech contests CBI charges

Photo: First Biz

[Editor: Mr.Jignesh Shah, was a non-executive director of NSEL and was not involved in its day-to-day operations. Mr.Shah's lawyer Mahesh Jethmalani has reportedly argued in court that Shah had no knowledge of the crisis, saying it was perpetrated by a clutch of NSEL employees and brokers, including Anjani Sinha, former chief executive of the commodity exchange. FTIL's net profit rose 57.93% to Rs.128.24 crore on 27.43% increase in total income to Rs.216.05 crore in Q1 June 2014 over Q1 June 2013. FTIL is among the global leaders in offering technology IP (Intellectual Property) and domain expertise to create and trade on next generation financial markets. It is a global leader in creating and operating next-generation tech centric financial exchanges]
MUMBAI, AUGUST 26:  Financial Technologies has contested CBI's charges of irregularities in grant of licence last year to its subsidiary MCX Stock Exchange. The CBI had accused Financial Technologies of entering into a buyback agreement with banks while reducing its stake to meet SEBI norms.

FTIL has quoted the Bombay High Court order to clarify that the “buy-back agreement cannot be held illegal as found in the impugned order of the Whole Time Member of SEBI on the ground that they constitute forward contacts.” Hence, the accusation of CBI does not hold ground, said the company.

Promoter not liable

On the CBI indictment for not disclosing the buyback agreement to the regulator at the time of application seeking extension of the MCX-SX licence, FTIL said the application was filed by the exchange and not by the promoter-company. Therefore, the promoter is not liable for the matter, it said.

MCX-SX was set up by FTIL and its commodity exchange arm MCX and began functioning as a full-fledged stock exchange last year after a prolonged battle with SEBI.

On Monday, CBI filed FIRs against three serving SEBI officials Muralidhar Rao, Executive Director; Vishakha More, Assistant General Manager and Rajesh Dangeti, Deputy General Manager. It also filed an FIR against former Executive Director JN Gupta besides FTIL promoter Jignesh Shah for alleged irregularities aimed at obtaining a licence to operate the stock exchange.

Courtesy: The Hindu Businessline

Gold Prices Maintains An Upward Trend For The Fourth-Straight Day

Gold prices maintained an upward trend for the fourth-straight day by adding Rs 200 to Rs 27,600 per 10 grams in the national capital Tuesday on sustained buying by stockists and retailers.

Gold prices in futures trade however, failed to maintain their winning streak and fell by up to Rs 200 per ten grams amid down trend in international markets as more outflows from gold exchange-traded funds summed up investors' weakening confidence in the metal.

At Delhi spot market, Silver lacked necessary follow up support and dropped by Rs 800 to Rs 45,000 per kg.

Gold in overseas markets, which normally set price trend on the domestic front, moved lower by USD 14.30 or 1 percent to USD 1,412 per ounce.

At the Multi Commodity Exchange (MCX), metal for delivery in June contracts fell by Rs 245 to trade lower at Rs 26,112 per ten grams after moving in range of Rs 26,062-26,448.

Similarly, Silver for delivery in May contracts dropped by Rs 947 to Rs 42,740 per Kg after moving in range of Rs 42,338-43,484.

Delhi

In the national capital, gold of 99.9 and 99.5 percent purity advanced by Rs 200 each to Rs 27,600 and Rs 27,400 per 10 grams, respectively. It had gained Rs 1,050 in last three sessions.

Sovereign, however, held steady at Rs 24,100 per piece of eight gram in scattered deals.

On the other hand, silver ready dropped by Rs 800 to Rs 45,000 per kg and weekly-based delivery by Rs 1020 per kg. The white metal had gained Rs 500 yesterday.

Silver coins also plunged by Rs 1,000 to Rs 75,000 for buying and Rs 76,000 for selling of 100 pieces.

Mumbai

Standard gold of 99.5 percent purity and pure gold of 99.9 percent purity both settled down by Rs 70 and Rs 75 at Rs 26,630 and Rs 26,765 per 10 gm, respectively.

Silver ready (.999 fineness) fell by Rs 1,030 to Rs 45,150 per kg from Monday's closing level of Rs 44,955.

Chennai

Standard gold price moved higher by Rs 90 to Rs 27,050 per ten grams as against its previous close of Rs 26,960. Silver however, slipped by Rs 800 to Rs 44,050 from Rs 44,850 per kg.

Futures Trade (MCX)

At the Multi Commodity Exchange (MCX), yellow metal for delivery in June contracts fell by Rs 245 to trade lower at Rs 26,112 per ten grams after moving in range of Rs 26,062-26,448.

Similarly, Silver for delivery in May contracts dropped by Rs 947 to Rs 42,740 per Kg after moving in range of Rs 42,338-43,484.

International markets

Spot gold moved lower by USD 14.30 or 1 percent to USD 1,412 per ounce. Gold in overseas markets had touched its lowest level in more than two years of USD 1,321.35 on last Tuesday.

Gold ETF

Holdings on SPDR Gold Trust, the world's largest gold-backed exchange-traded fund, tumbled to their lowest level since early 2010, which indicated that some investors were shifting their money into equities.

Here are the city wise gold and silver rates:

(Gold rates per 10 gm/Silver rates per Kg)

Mumbai
GOLD: Rs 26,765 (-75)/ SILVER: Rs 45,150 (-1030)

Delhi
GOLD: Rs 27,600 (+200), SILVER: Rs 45,000 (-800)

Chennai
GOLD: 27,125 (+90)/ SILVER: Rs 44,050 (-800)

Kolkata
GOLD: 28,150 (+300)/ SILVER: Rs 45,500 (-750)

Bangalore
GOLD: Rs 27,098 (+213) / SILVER: Rs 45,600 (-200)

Ahmedabad
GOLD: Rs 26,270 / SILVER: 44,200

Hyderabad
GOLD: Rs 27,800 (unchanged) / SILVER: 49,000 (+150)

Courtesy: Zee News with Agency Inputs

Gold price today: Latest updates

Extending their early losses, gold prices dropped by Rs 230 to Rs 29,644 per ten grams in futures trade Tuesday as market participants offloaded their positions in tandem with a weakening trend overseas.

At the Multi Commodity Exchange (MCX), gold for delivery in October fell by Rs 230 to Rs 29,644 per ten grams as against its previous close of Rs 29,874.

Similarly, silver benchmark delivery moved lower by Rs 753 to Rs 48,640 per Kg.

Gold price in overseas markets, which normally set price trend on the domestic front, failed to hold early gains and moved southwards on renewed worries that the US Federal Reserve will begin cutting its bond-buying purchases as early as next month.

Spot gold last quoted at USD 1,326.36 an ounce, up 0.4 percent, after falling over 3 percent over the past three sessions.

In New York, gold for December delivery fell by USD 5.50 to USD 1,327 an ounce on the Comex division of the NYMEX.

Meanwhile, both gold and silver fell for the third straight session in Delhi bullion market on lower demand against sustained selling in line with a weak global trend.

While gold fell by Rs 250 to Rs 30,250 per ten grams, silver lost Rs 475 to Rs 49,025 per kg on reduced offtake by jewellers and industrial units.

Mumbai

Standard gold of 99.5 percent purity slid by Rs 210 to end at Rs 29,790 per 10 gm from last Saturday's closing level of Rs 30,000.

Pure gold of 99.9 percent purity also dipped by a similar margin to close at Rs 29,935 per 10 gm from Rs 30,145.

Silver ready (.999 fineness) slumped by Rs 510 to conclude at Rs 49,765 per kg as against Rs 50,275 last weekend.

Delhi

Gold of 99.9 and 99.5 percent purity fell further by Rs 250 each to Rs 30,250 and Rs 30,050 per ten grams, respectively. The yellow metal had lost Rs 310 in the previous two sessions. Sovereign shed Rs 100 to Rs 25,000 per piece of eight gram.

Silver ready dropped by Rs 475 to Rs 49,025 per kg and weekly-based delivery by Rs 575 to Rs 48,925 per kg. The white metal had lost Rs 1,700 in last two sessions.

Silver coins, however, held steady at Rs 85,000 for buying and Rs 86,000 for selling of 100 pieces in limited deals.

Futures Trade (MCX)

At the Multi Commodity Exchange (MCX), gold for delivery in October fell by Rs 230 to Rs 29,644 per ten grams as against its previous close of Rs 29,874.

Similarly, silver benchmark delivery moved lower by Rs 753 to Rs 48,640 per Kg.

International markets

Spot gold last quoted at USD 1,317.20 an ounce, down USD 6.10 or 0.46 percent, after falling over 3 percent in last three sessions.

In New York, gold for December delivery fell by USD 5.50 to USD 1,327 an ounce on the Comex division of the NYMEX yesterday.

Gold ETF

SPDR Gold Trust, the world's largest gold-backed exchange-traded fund, said its holdings fell 0.07 percent, or 0.6 tonnes, to 909.59 tonnes on Monday.

Here are the city wise gold and silver rates:

(Gold rates per 10 gm/Silver rates per Kg)

Mumbai
GOLD: 29,935 (-210) / SILVER: Rs 49,765 (-510)

Delhi

GOLD: Rs 30,250 (-250) / SILVER: Rs 49,025 (-475)

Chennai

GOLD: Rs 30,415 / SILVER: Rs 49,000

Kolkata
GOLD: Rs 30,610 / SILVER: Rs 49,500

Bangalore

GOLD: Rs 30,315/ SILVER: Rs 49,500

Hyderabad

GOLD: Rs 30,100 / SILVER: Rs 50,500

Courtesy: Zee Business

Gold price today: Latest updates

Tuesday, September 03, 2013: Gold prices extended their yesterday's gains by Rs 170 to Rs 33,234 per ten grams in futures trade Tuesday as rupee fell past 67 against US dollar.

Further depreciation in rupee Vs dollar mainly supported bullion prices as it makes imports costlier. However, weak trend in overseas market capped the upside by restricting market participants from enlarging positions. 

The rupee today weakened by 11 paise to 67.11 against the dollar at the Interbank Foreign Exchange market due to renewed dollar demand from importers and appreciation of the US currency overseas.

At the Multi Commodity Exchange (MCX), gold for delivery in October rose by Rs 170 to Rs 33,234 per ten grams as against its previous close of Rs 33,064. The yellow metal had hit an intra-day high of Rs 35,074 on last Wednesday.

Similarly, silver benchmark delivery gained by Rs 380 to Rs 55,334 per kg.

Gold price in overseas markets, which normally set price trend on the domestic front, fell for a fourth straight session on Tuesday as its safe-haven appeal was dented by a delay in a potential US strike on Syria and strong global economic data.

Spot gold last traded down USD 6.50 or 0.47 percent at USD 1,391 an ounce.

Meanwhile, gold prices extended losses for the fourth straight day by losing Rs 325 to Rs 31,100 per ten grams on stockists selling.

However, silver snapped three day of losses and rebounded by Rs 420 to Rs 54,350 per kg on increased offtake by industrial units and coin makers at existing lower levels.

Mumbai

Standard gold of 99.5 percent purity fell by Rs 410 to close at Rs 31,540 per 10 gm from last Saturday's closing level of Rs 31,950.

Pure gold of 99.9 percent purity dipped by Rs 435 to to finish at Rs 31,685 from Rs 32,120.

However, silver ready (.999 fineness) climbed by Rs 465 to conclude at Rs 55,575 per kg as against Rs 55,110 last weekend.

Delhi

Gold of 99.9 and 99.5 percent purity fell further by Rs 325 each to Rs 31,100 and Rs 30,900 per ten grams, respectively. It had lost Rs 2,475 in previous three sessions. Sovereign followed suit and declined by Rs 200 to Rs 25,100 per piece of eight gram.

On the other hand, silver ready gained Rs 420 to Rs 54,350 per kg and weekly based delivery gained Rs 2,420 to Rs 55,850 per kg. The white metal had lost Rs 4,570 in last three trades.

Silver coins also spurted by Rs 1,000 to Rs 89,000 for buying and Rs 90,000 for selling of 100 pieces. 

Futures Trade (MCX)

At the Multi Commodity Exchange (MCX), gold for delivery in October rose by Rs 170 to Rs 33,234 per ten grams as against its previous close of Rs 33,064. The yellow metal had hit an intra-day high of Rs 35,074 on last Wednesday.

Similarly, silver benchmark delivery gained by Rs 380 to Rs 55,334 per kg.

International markets

Spot gold last traded down USD 6.50 or 0.47 percent at USD 1,391 an ounce.

Here are the city wise gold and silver rates:

(Gold rates per 10 gm/Silver rates per Kg)

Mumbai

GOLD: 31,685 (-435)/ SILVER: Rs 55,575 ( +465)

Delhi

GOLD: Rs 31,100 (-325)09:09 03-09-2013/ SILVER: Rs 54,350 (+420)

Chennai

GOLD: Rs 30,290/ SILVER: Rs 57,570

Kolkata

GOLD: Rs 32,760 / SILVER: Rs 54,450

Bangalore

GOLD: Rs 33,359/ SILVER: Rs 54,100

Hyderabad

GOLD: Rs 31,000 / SILVER: Rs 54,500

Courtesy: Zee News

Gold price today: Latest updates

Thursday, September 26, 2013: Gold prices failed to extend yesterday's gains and moved lower by Rs 110 to Rs 30,105 per ten grams in futures trade early Thursday as rupee strengthened against the dollar at the Interbank Foreign Exchange market.

At the Multi Commodity Exchange (MCX), gold for delivery in October declined by Rs 110 to Rs 30,105 per ten grams as against its previous close of Rs 30,215 .

Similarly, silver benchmark delivery dropped by Rs 251 to Rs 48,920 per Kg.

Gold price in overseas markets, which normally set price trend on the domestic front, traded in a narrow range and largely held on to overnight gains of nearly 1 percent as an upcoming Chinese holiday kept investors on the sidelines and their focus turned towards the US debt ceiling talks. 

Spot gold last quoted at USD 1,333.80 an ounce, down 0.02 percent, after gaining 0.8 percent in the previous session. 

In New York, gold for December delivery rose USD 19.90 to settle at USD 1,336.20 an ounce on the Comex division of the NYMEX yesterday.

Meanwhile, snapping a four-day losing streak, both precious metals gold and silver rebounded in Delhi bullion market on emergence of buying at existing lower levels to meet the coming festive season demand amid a better global trend.

While gold gained Rs 320 to Rs 30,545 per ten gram after losing Rs 585 in last four sessions, silver recovered by Rs 390 to Rs 49,330 per kg, snapping Rs 2,260 losses of four days.

Mumbai

Standard gold of 99.5 percent purity moved up by Rs 160 to close at Rs 29,980 per 10 gm from Tuesday's closing level of Rs 29,820 .

Pure gold of 99.9 percent purity also gained by Rs 160 to end at Rs 30,130 per 10 gm from Rs 29,970.

Similarly, silver ready (.999 fineness) escalated by Rs 50 to finish at Rs 49,715 per kg as compared to Rs 49,765 yesterday.

Delhi

Gold of 99.9 and 99.5 percent purity rebounded by Rs 320 each to Rs 30,545 and Rs 30,345 per ten gram, respectively, while sovereign held steady at Rs 25,000 per piece of eight gram in limited deals.

Silver ready rose by Rs 390 to Rs 49,330 per kg and weekly-based delivery by Rs 690 to Rs 49,480 per kg. 

Silver coins, however, held steady at Rs 85,000 for buying and Rs 86,000 for selling of 100 pieces. 

Futures Trade (MCX)

At the Multi Commodity Exchange (MCX), gold for delivery in October declined by Rs 110 to Rs 30,105 per ten grams as against its previous close of Rs 30,215 .

Similarly, silver benchmark delivery dropped by Rs 251 to Rs 48,920 per Kg.

International markets

Spot gold last quoted at USD 1,333.80 an ounce, down 0.02 percent, after gaining 0.8 percent in the previous session. 

In New York, gold for December delivery rose USD 19.90 to settle at USD 1,336.20 an ounce on the Comex division of the NYMEX yesterday.

Gold ETF

SPDR Gold Trust, the world's largest gold-backed exchange-traded fund, said its holdings fell 0.07 percent, or 0.6 tonnes, to 909.59 tonnes on Monday. 

Here are the city wise gold and silver rates:

(Gold rates per 10 gm/Silver rates per Kg)

Mumbai

GOLD: 29,970 30,130 (+160) / SILVER: Rs 49,715 (+325) 50,040

Delhi

GOLD: Rs 30,545 (+320) / SILVER: Rs 49,330 (+90)

Chennai

GOLD: Rs 29,795 / SILVER: Rs 48,860

Kolkata

GOLD: Rs 30,570 / SILVER: Rs 48,900

Bangalore

GOLD: Rs 30,478/ SILVER: Rs 49,500

Hyderabad

GOLD: Rs 30,100 / SILVER: Rs 50,000

Courtesy: Zee News

Gold Rate Today: Latest Updates

Best Time To Invest In Gold 
or In Gold Loan Companies...?

Recovering from their yesterday's loss, gold prices in futures trade moved higher by Rs.250 Wednesday, tracking uptrend in international markets as solid physical demand encouraged speculative buying.

At the Multi Commodity Exchange (MCX), metal for delivery in June contracts rose by Rs 250 to trade higher at Rs 26,414 per ten grams.

Similarly, Silver for delivery in May contracts increased by Rs 421 to Rs 43,235 per Kg.

Gold prices fell by up to Rs 60 at the Mumbai bullion market today following reduced demand from traders and jewellers. Silver also fell by Rs 550 to Rs 44,600 per kg.

Standard gold of 99.5 percent purity and pure gold of 99.9 percent purity both traded down by Rs 60 and Rs 55 at Rs 26,570 and Rs 26,710 per ten grams, respectively.

Speculative buying after yesterday's fall pushed gold price in international markets higher by 0.86 percent on Wednesday.

Support also came from weak German economic data, which fanned speculation the European Central Bank could cut interest rates.

But strong US dollar coupled with firming equities and continuous decline in holdings by exchange-traded funds looks set to cap prices.

Gold in overseas markets, which normally set price trend on the domestic front, rebounded by USD 15.90 or 1.12 percent to USD 1,429.50 per ounce.

In international markets gold prices sank to around USD 1,321 on April 16, the lowest in more than two years, in a sell-off that surprised ardent gold investors and bulls.

Delhi

In the national capital, gold of 99.9 and 99.5 percent purity advanced by Rs 200 each to Rs 27,600 and Rs 27,400 per 10 grams, respectively. It had gained Rs 1,050 in last three sessions.

Sovereign, however, held steady at Rs 24,100 per piece of eight gram in scattered deals.

On the other hand, silver ready dropped by Rs 800 to Rs 45,000 per kg and weekly-based delivery by Rs 1020 per kg. The white metal had gained Rs 500 yesterday.

Silver coins also plunged by Rs 1,000 to Rs 75,000 for buying and Rs 76,000 for selling of 100 pieces.

Mumbai

Standard gold of 99.5 percent purity and pure gold of 99.9 percent purity both traded down by Rs 60 and Rs 55 at Rs 26,570 and Rs 26,710 per ten grams, respectively.

Silver ready (.999 fineness) declined by Rs 550 to Rs 44.600 per kg from Tuesday''s closing level of Rs 45,150.

Chennai

Standard gold price moved higher by Rs 90 to Rs 27,050 per ten grams as against its previous close of Rs 26,960. Silver however, slipped by Rs 800 to Rs 44,050 from Rs 44,850 per kg.

Futures Trade (MCX)

At the Multi Commodity Exchange (MCX), metal for delivery in June contracts rose by Rs 250 to trade higher at Rs 26,414 per ten grams.

Similarly, Silver for delivery in May contracts increased by Rs 421 to Rs 43,235 per Kg.

International markets

Gold in overseas markets, which normally set price trend on the domestic front, rebounded by USD 15.90 or 1.12 percent to USD 1,429.50 per ounce.

In international markets gold prices sank to around USD 1,321 on April 16, the lowest in more than two years, in a sell-off that surprised ardent gold investors and bulls.

Gold ETF

SPDR Gold Trust, the world's largest gold-backed exchange-traded fund, said its holdings fell 0.68 percent to 1,097.19 tonnes on Tuesday from 1,104.71 tonnes on Monday. The current holdings are at multi-year low.

Here are the city wise gold and silver rates:

(Gold rates per 10 gm/Silver rates per Kg)

Mumbai
GOLD: Rs 26,710 (-55)/ SILVER: Rs 44,600 (-550)

Delhi
GOLD: Rs 27,600 (+200), SILVER: Rs 45,000 (-800)

Chennai
GOLD: 27,125 (+90)/ SILVER: Rs 44,050 (-800)

Kolkata
GOLD: 28,150 (+300)/ SILVER: Rs 45,500 (-750)

Bangalore
GOLD: Rs 27,098 (+213) / SILVER: Rs 45,600 (-200)

Ahmedabad
GOLD: Rs 26,270 / SILVER: 44,200

Hyderabad
GOLD: Rs 27,800 (unchanged) / SILVER: 49,000 (+150)

With Agency Inputs 

Courtesy: Zee News

Gold prices maintained an upward trend
Those who bought the shares of Manappuram Finance Ltd (BSE Code: 531213, CMP: Rs.17.70) with me, say Cheers!!

Gold prices maintained an upward trend for the fifth-straight day by adding Rs 400 to regain the psychological level of Rs 28,000 per ten grams in the national capital Thursday on strong demand from stockists and traders coupled with marriage season off-take from consumers amid a firming global trend.

Silver also recovered by Rs 500 to Rs 45,500 per kg on increased offtake by industrial units and coin makers.

Meanwhile, gold prices continued their upward momentum in futures trade today and rallied by over Rs 650 points to regain Rs 27,000-level as speculators enlarged their positions tracking a firm global trend.

Silver also regained Rs 45,000-level in futures trade.

At the Multi Commodity Exchange (MCX), metal for delivery in June contracts climbed by Rs 653 to Rs 27,041 per ten grams.

Similarly, silver for delivery in May contracts rallied by Rs 2,282 to Rs 45,174 per Kg.

In another benchmark spot market, Mumbai, gold reclaimed Rs 27,000 per ten grams level on continued physical buying.

Silver also soared on low-level speculative buying and industrial demand, and regained the Rs 45,000 per kg mark.

Gold in overseas markets, which normally set price trend on the domestic front, climbed to the highest level since September last year, as rising central bank and physical purchases countered tumbling assets in exchange-traded products.

Spot gold surged by USD 34.60 or 2.42 percent to USD 1,467.10 per ounce.

Gold prices sank to around USD 1,321 on April 16, the lowest in more than two years, in a sell-off that surprised ardent gold investors and bulls.

Mumbai

Standard gold of 99.5 percent purity shot up by Rs 400 to end at Rs 26,970 per 10 grams from Wednesday's closing level of Rs 26,570.

Pure gold of 99.9 percent purity also surged by a similar margin to finish at Rs 27,110 per 10 grams from Rs 26,710.

Silver ready (.999 fineness) vaulted by Rs 715 to close at Rs 45,315 per kg from Rs 44,600 yesterday.

Chennai

Standard gold price moved higher by Rs 445 to Rs 27,495 per ten grams as against its previous close of Rs 27,050.

Silver also rallied by Rs 745 to Rs 44,795 from Rs 44,050 per kg.

Delhi

In the national capital, gold of 99.9 and 99.5 percent purity advanced by Rs 400 each to Rs 28,000 and Rs 27,800 per 10 grams, respectively. The yellow metal had gained Rs 1,250 in the previous four sessions.

Sovereign followed suit and climbed Rs 250 to Rs 24,350 per piece of eight gram.

In line with a general firm trend, silver ready recovered by Rs 500 to Rs 45,500 per kg and weekly-based delivery by Rs 660 to Rs 43,310 per kg. The white metal had lost Rs 800 on Tuesday's trade.

Silver coins also spurted by Rs 1,000 to Rs 76,000 for buying and Rs 77,000 for selling of 100 pieces.

Futures Trade (MCX)

At the Multi Commodity Exchange (MCX), metal for delivery in June contracts climbed by Rs 653 to Rs 27,041 per ten grams.

Similarly, silver for delivery in May contracts rallied by Rs 2,282 to Rs 45,174 per Kg.

International markets

Gold in overseas markets, which normally set price trend on the domestic front, surged by USD 34.60 or 2.42 percent to USD 1,467.10 per ounce.

In international markets gold prices sank to around USD 1,321 on April 16, the lowest in more than two years, in a sell-off that surprised ardent gold investors and bulls.

Gold ETF

SPDR Gold Trust, the world's largest gold-backed exchange-traded fund, said its holdings fell 0.38 percent to 1092.98 tonnes on Wednesday from 1097.19 tonnes on Tuesday. The current holdings are at multi-year low.

Here are the city wise gold and silver rates:

(Gold rates per 10 gm/Silver rates per Kg)

Mumbai
GOLD: Rs 27,110 (+400)/ SILVER: Rs 45,315 (+715)

Delhi
GOLD: Rs 28,000 (+400), SILVER: Rs 45,500 (+500)

Chennai
GOLD: 27,495 (+445)/ SILVER: Rs 44,945 (+745)

Kolkata
GOLD: 28,600 (+170)/ SILVER: Rs 46,550 (+500)

Bangalore
GOLD: Rs 27,563 (+472) / SILVER: Rs 45,700 (unchanged)

Hyderabad
GOLD: Rs 28,000 (-1000) / SILVER: 48,000 (-1000)

Courtesy: Zee News

Share buyback arrangement was legal, says FTIL 

FTIL clarification in response to FIR registered by CBI

Mumbai, Aug 27 2014 Financial Technologies (India) Ltd. (FTIL) has said that the buyback arrangement for shares with shareholder banks of MCX Stock Exchange (MCX-SX) was declared legal by the Bombay high court while hearing the matter between the exchange and the capital markets regulator. 

The FTIL clarification was in response to the first information report (FIR) registered by the Central Bureau of Investigation (CBI) on Monday for alleged violations while granting extension to MCX-SX. According to CBI, the buyback agreement entered into with the banks was illegal. 

“The Bombay high court, in its order, (Page No. 145 Para VII) had ruled that “the buy-back agreement cannot be held to be illegal as found in the impugned order of the whole timer member of SEBI on the ground that they constitute forward contacts. Hence, the accusation of CBI does not hold ground,” said FTIL.

Courtesy: Live Mint

Gold futures likely to gain past one-month high

[Editor: India’s central bank, Reserve Bank of India (RBI), earlier partially eased restrictions on import of gold doré bar (semi pure alloy of gold and silver) by allowing refineries to import 15 % of their gross annual requirement in first two months and remaining as per export performance. “Subsequent to this, the quantum of gold doré to be imported should be determined lot-wise on the basis of export performance,” the country’s central bank noted. January has traditionally been a good month for precious metals, at least for the past three years and with this move the chief exporters of Gold Jewelries like Shree Ganesh Jewellery House (I) Ltd (SGJHIL) would be benefited the most. According to my sources, the company has made elaborate plans to boost exports, and giving less focus on the retail and other businesses. It would also benefit from the RBI's recent decision to allow Gold-loan-companies, to give higher amount of loan against gold jewellery pledged by borrowers. NBFCs can now give up to 75%, up from 60% now, of the value of the gold jewellery pledged as loan. SGJHIL is now trading at Rs.26.70]

MUMBAI Mon Jan 20, 2014 4:Gold futures in India are likely to extend gains past their highest level in a month, on the back of positive leads from overseas market, although investors will continue to monitor the rupee for directions.

The actively traded gold contract for December delivery on the Multi Commodity Exchange (MCX) was 0.22 percent higher at 29,330 rupees per 10 grams, after hitting a high of 29,390 rupees, a level last seen on December 16.

"Gold and silver looks good in the short-term on the back of Chinese buying for Lunar New year and commodity index rebalancing in favour of gold and silver," said Gnanasekar Thiagarajan, director with Commtrendz Research.

Holdings in SPDR Gold Trust, the world's largest gold-backed exchange-traded fund, rose 7.49 tonnes to 797.05 tonnes on Friday - the first increase in a month.

Buying is advised in MCX gold on dips to 29,250 rupees, for a target of 29,600 rupees, with a stop loss at 29,025 rupees, said Thiagarajan.

Silver contract for April delivery on the MCX was 0.04 percent higher at 45,156 rupees per kg.

Buying is advised on dips in silver at 44,900, with a stop loss at 44,500, targeting 45,800 rupees, said Thiagarajan.

(Reporting by Siddesh Mayenkar; Editing by Anand Basu)

Courtesy: Reuters