DFHI to keep off NSE

The Discount and Finance House of India (DFHI) will not be transacting on the National Stock Exchange when it opens for trading in debt instruments on June 30. The decision of the DFHI to keep off NSE at least for the next couple of months has surprised the money market as the RBI sponsored institution is an important player in the call money market. The DFHI argues that as it operates at the wholesale end of the money market it may take its time to enter retail level trading on NSE. DFHI’s decision is also traced to the bar on nationalised banks operating on the NSE except through their subsidiaries.

Widen operations, private banks told

Competition improves productivity and efficiency in most areas, and that was one reason why it was decided to allow new banks in the private sector, said Dr. C. Rangarajan, Governor of the Reserve Bank of India (RBI). “An efficient financial sector is a pre-requisite for economic growth,” he pointed out and also urged the new private sector banks, though opting to go with fewer branches, to ensure that their impact was felt over a wide area.

Murdoch triggers price war

Mr. Rupert Murdoch’s The Times , which kicked off a cover price cutting war in Britain’s quality daily market last September, announced a dramatic new reduction from Friday. The cut trumped a counter-attack by its bigger circulation rival, The Daily Telegraph , which slashed its own price to match The Times but watched its shares tumble in London during the day. The Times Editor, Mr. Peter Stodhart, said the price of the paper would go down by 10 pence (15 cents) to 20 pence (30 cents) adding that the new price would be held indefinitely.

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