New Delhi, November 28
Property buyers in Delhi, who were so far left at the mercy of developers and real estate agents, can heave a sigh of relief as the government today announced a regulator for the sector will be set up by 2008.

"The regulator will start functioning from 2008, to whom builders and buyers can approach and get their grievances addressed. It will be for Delhi and will be a model for other states," union minister for urban development Jaipal Reddy said at seminar organised by industry body Assocham today.

The government would bring a Bill on real estate sector in the next Parliament session, he said, adding that the name of Bill has not been finalised.

He also said with the implementation of Jawaharlal Nehru National Urban Renewal Mission (JNNURM), a large amount of funds have been made available for creating infrastructure in urban areas across the country.

The government was contemplating to raise Rs 1,00,000 crore for urbanising the 63 mission cities, but the need is Rs 3.5 lakh crore.

The minister said for the remaining amount, "we would also like to leverage the money available in the private sector." On slum dwellers in Delhi, Reddy said they will be provided with multi-storeyed apartments.

"The developers have to fulfil some societal obligations such as giving 15 per cent FAR (Floor Area Ratio) to government for distribution to people belonging to economically weaker sections," he said.

Reddy also informed that all states, except Maharashtra, Andhra Pradesh and West Bengal, have repealed the Land Ceiling Act.

The minister urged the state governments to go in for reforms in land related laws and to computerise land titles.

"We also have asked the states to reduce stamp duty and most have replied positively. Wherever the stamp duty have been reduced, revenue has not been decreased," he added.

Stating that transport planning is a state-subject, Reddy said the government was planning to implement metro rail project in Mumbai, Hyderabad, Chennai and Bangalore. Ahmedabad has opted for Bus Rapid Transport System (BRTS).

He said the government is for metro rail in each city having a population of more than four million. "The government is ready to bear up to 30 per cent of the cost of the metro rail projects," Reddy said.

Speaking on the occasion, Parsvnath chairman Pradeep Jain said: "The important issues which inhibit the growth of the sector are in focus with the government and we expect favourable response in near future." On shortage of land, Jain said the problem is more due to restricted access to service land and housing because of distorted market, misguided regulations and lack of pro-active management policy. — PTI 

New Delhi, November 28
The National Stock Exchange has elbowed out its South African counterpart to become the world's largest platform for stock futures trade, with a trading volume more than double of its nearest competitor.

The NSE, bigger than its Indian rival Bombay Stock Exchange in trading volume, is already the world's largest bourse in terms of value of individual stock futures trade.

According to the latest data compiled by World Federation of Exchanges, as many as 2.4 crore stock futures contract were traded at NSE in October as against 83.67 lakh at Johannesburg Stock Exchange (JSE).

JSE was the world's biggest stock futures trading platform till September, when it traded 5.74 crore stock futures contracts - nearly four times NSE's 1.77 crore.

Stock futures contract is an instrument that allows investors to reap benefits of a stock's performance without actually owning it.

In terms of total turnover of all stock futures contract, NSE recorded the highest amount of about $285 billion during the month, which was nearly 20 times its nearest rival Euronext Liffe's $14.6 billion.

BSE, the world's biggest stock exchange in terms of number of companies listed, is among the lowest ranked bourses in terms of number of stock futures contracts and their turnover.

The BSE witnessed trading of just 587 single stock futures contracts during the month, with a total turnover of just about $6 million.

In terms of cumulative volume since the beginning of this year (January-October), NSE currently ranks at second position after JSE, while it is on the top for turnover.

According to WFE data, JSE has traded 19.8 crore stock futures contract till October this year as against NSE's 14.5 crore contracts. However, NSE has seen a turnover of $1.24 trillion in this segment during the same period, compared to about $200 billion for its nearest rival Eurex.

In the index futures segment, which includes contracts for indices and not the individual stocks, NSE is the second largest bourse with 1.78 crore contracts, after Eurex that retained its top position in this category with over 2.82 crore contracts.

NSE commenced trading in index futures on June 12, 2000.

According to information available with NSE, the exchange traded a total of 4.93 crore contracts in entire derivatives segment, including futures and options contracts for both individual stocks and indices. This represented a jump of 44.57 per cent over 3.41 crore in the previous month.

In December 2006, NSE was awarded the 'Derivatives Exchange of the Year' title by Asia Risk Magazine. — PTI 

New Delhi, November 28
The official committee on Value- Added Tax (VAT) favours having a dual structure for Goods and Service Tax (GST) when it is introduced on April 1, 2010.

The committee comprising state finance ministers is agreeable to the idea of a dual structure — a central GST and a state GST, its chairman Asim Dasgupta told reporters here today.

The Empowered Group of State Finance Ministers on VAT would send its recommendations to the Centre next month after the state finance ministers give their views in writing, he said after the panel's meeting here.

"After getting the written viewpoints, we will finalise the report. But we hope to send the report to the Government of India by the month of December," he said.

In a nutshell, within the framework of GST, there would be more than one slab of tax for goods, but a single rate for services at the state level. At the central level, the rates will be decided by the union government, Dasgupta said, adding that they are likely to be on a similar pattern.

Like VAT, there would be set off — that is amount of tax paid on inputs would be reimbursed — at both the Central and state levels.

GST at the state level will subsume as many taxes on goods and services as possible and feasible, he said.

However, exact rates at the state and central level would be decided later, Dasgupta said.

He said efforts would be made to ensure that there is no double taxation on any goods and services between the Centre and states, which is there on some goods under the present dispensation.

Implementation of GST would also require Constitutional amendment at the central level and also at the state legislative level.

Already states have been given the choice to collect tax on 44 services, mostly local in nature, to compensate them for phasing out of Central Sales Tax, which is imposed on inter-state sale of goods, from this fiscal. — PTI

New Delhi, November 28
The forthcoming Auto Expo here from January 9 will witness the global launch of a new concept car, Concept A-Star, developed jointly by Maruti Suzuki India Limited (MSIL) and Suzuki Motor Corporation (SMC).

This, incidentally, is a rare occasion when a global car manufacturer has chosen the Auto Expo in India for the global launch of its concept car. After being showcased in New Delhi, the Concept A-Star will be displayed at top global motor shows during the year 2008.

The Concept A-Star is a compact car, which normally is simple and elegant in design. The Concept A-Star, while retaining elegance and simplicity, will demonstrate sportiness and emotion in a compact car.

The Concept A-Star is, in fact, the precursor to MSIL’s global compact car that will be launched in the future. The global compact car will be manufactured at MSIL’s plant in Manesar for export to Europe.

Its styling has been conceived in an Indian setting. The car is significant also because it symbolises the coming of age of MSIL’s R & D. Its R & D team first displayed capabilities in face-lifting existing models, five years ago.

For Suzuki Motor Corporation, Concept A-Star symbolises the next level of its India commitment.

New Delhi, November 28
External affairs minister Pranab Mukherjee will head a new Group of Ministers (GoM) constituted to look into the pricing of petroleum products.

The GoM also includes defence minister A K Antony, finance minister P Chidambaram, railway minister Lalu Prasad, road transport, highways and shipping minister T R Baalu, consumer affairs minister Sharad Pawar and petroleum minister Murli Deora, official sources said.

The constitution of the GoM was announced by Prime Minister Manmohan Singh last week.

The government is trying to evolve a political consenus on the sensitive issue of raising domestic fuel prices at a time when international crude oil prices are hovering around $100 a barrel. India imports nearly three-fourth of its crude oil requirement.

Public sector oil firms Indian Oil, Bharat Petroleum and Hindustan Petroleum are together losing over Rs 250 crore per day on sale of petrol, diesel, domestic cooking gas LPG and kerosene as they have not been allowed to raise retail prices despite rise in international prices.— PTI

New Delhi, November 28
India’s fast economic growth and appreciation of rupee have made its cities more expensive for expatriates this year, though they remain cheaper when compared to other leading Asian cities such as Tokyo, Hong Kong and Singapore, a latest survey says.

Seven Indian cities - Mumbai, New Delhi, Chennai, Hyderabad, Kolkata, Pune and Bangalore - have all moved up by 14-21 ranks in the survey titled ‘Worldwide cost of living ranking -2007’ prepared by Hong Kong-based solution provider for international HR professionals ECA International.

“The region’s most notable changes have been in India, where fast economic growth has pushed up the cost of many goods and services. This, coupled with the appreciation of the rupee against most major currencies, has made Indian locations significantly more expensive for expatriates,” an ECA statement said.

Mumbai and New Delhi have risen 14 and 16 places to 177 and 178th ranks, respectively, while Hyderabad is up 21 places at 189. Bangalore has risen 15 places to 205th position, distancing itself for the first time from the bottom five in the ranking, it said.

While Chennai is at the 186th place, Kolkata is at 193rd followed by Pune at 194th.The survey is topped by Korea's Seoul as the costliest city for expats in Asia followed by three Japanese cities Tokyo, Yokohama and Kobe at the second, third and fourth ranks in that order.

Hong Kong (5th), Taipei (6th), Beijing (7th), Shanghai (8th), Singapore (9th) and Guangzhou in China (10) are the other cities among the ten costliest places in Asia. Among the Asian rankings, Indian cities Mumbai and Delhi occupy 24th and 25th positions while Chennai comes at 27th place followed by Hyderabad (28), Kolkata (30) and Pune (31).Interestingly, Bangalore (37) has the least cost of living among Asian cities, followed by the Sri Lankan capital Colombo (38) and Pakistan's capital Islamabad (39).

Living costs for expatriates are affected by inflation, availability of goods and exchange rates, all of which can have a significant impact on expatriate remuneration packages, added the statement.

ECA's cost of living survey is based on comparison of a basket of 128 consumer goods and services commonly purchased by expatriates in over 300 locations worldwide.Globally, the most expensive city for expatriates is Luanda in Angola, followed by Norwegian capital of Oslo, Moscow, Stavanger (Norway) and Copenhagen (Denmark). — PTI 

Mumbai, November 28
In a problem of plenty for refinery stocks, huge investor demand due to soaring oil prices has led to futures trading being banned in three such securities — Mukesh Ambani group's Reliance Petroleum (RPL) , Ruias-promoted Essar Oil and state-run Bongaigaon Refinery.

According to a circular issued by the National Stock Exchange, RPL, Essar Oil and Indian Oil's subsidiary BRL are among the eight securities where derivative contracts have crossed 95 per cent of market-wide position limit and any fresh position has been banned in these contracts.

"Oil stocks are giving good returns amid global crude prices reaching high levels, thus leading to investors increasing their exposure to these counters," New Delhi-based brokerage house SMC Global Vice President Rajesh Jain told PTI.

"Besides, the investors are seeking to continue holding on their positions for long and are not squaring off their exposure, thus leading to the 95 per cent market-wide position limit," Jain added.

"The huge turnover in the futures of oil refining firms is due to long-term profits which the investors expect these firms will make. The expectations have gone up due to rise in global oil prices and the rupee appreciation that would boost the export of refined oil," said a broker.

In the cash segment as well, oil refining firms have been performing well and witnessed record turnover in their scrips.

RPL shares have been seeing huge turnover in both cash and derivatives segment over the past few days. Derivatives trading was banned soon after it resumed trading on Monday after a previous ban. — PTI

Chandigarh, November 28
The National Commodity and Derivative Exchange Ltd (NCDEX), India’s leading agriculture commodity exchange, has decided to launch futures contract in the ‘Shankar Kapas’ variety of cotton from tomorrow. An across-the-board demand from value chain participants — growers, processors, exporters, and traders — has encouraged the exchange to plan introduction of futures contract in this cotton variety.

“Our existing Kapas contract has been well received by the trade. We took a cue from this and jointly explored the feasibility of introducing futures contract in Shankar Kapas with value chain participants. The trade has given us a positive feedback on this initiative. With the cotton season in full swing we thought this is the appropriate time to roll out the new contract,” said Shirkant Subbarayan, chief business officer, NCDEX.

Shankar Kapas is the benchmark cotton variety grown in India, being the largest variety grown, consumed and exported. As Kapas is processed down the value chain, raw material hedging becomes important, as the margins tend to get range bound. Shankar Kapas recorded a total production of over 90 lakh bales in 2006-07. This year, the production estimates for this variety is about 115 lakh bales, valued at around Rs 11,000 crore. Although the figures indicate a bumper crop for India, prices have still remained firm as compared to the 2006-07 season, mainly due to the increased international demand for the Indian Shankar cotton.