🔹Mkt. Updates :

*SGX Nifty +5 pts (17872) from last trade 17867 ,*

Nikkei -63 pts ,
Hangseng -27 pts ,
Around 6.52am .

US MKT CLSD , Bovespa Clsd , Ftse +9 Pts , Dax -4 pts , Cac -12 pts , Crude @ $77.18 brl (+0.84), Brent @ $84.07 brl (+0.00) , Gold @ 1852.10 (+1.90), Silver @ $21.835 (+0.12), Euro @ $1.0674, JPY @ $134.27,  INR @ 82.705

*US GOVT. 10-YEAR YIELD : 3.86%*

*Today's Corporate Action, 21 Feb Ex Date :*

AKZOINDIA
Interim Dividend - Rs. - 25.0000
AMAL
Right Issue of Equity Shares 
ANZEN
Income Distribution (InvIT) 
ASMTEC
Interim Dividend - Rs. - 1.0000
AVTNPL
Interim Dividend - Rs. - 0.4000
BHARATAGRI
E.G.M. 
CUMMINSIND
Interim Dividend - Rs. - 12.0000
DISAQ
Interim Dividend - Rs. - 100.0000
INDINFR
Income Distribution (InvIT) 
MRF
Interim Dividend - Rs. - 3.0000
NATCOPHARM
Interim Dividend - Rs. - 1.2500
ORACLECR
Interim Dividend - Rs. - 0.5000
SATINDLTD
Interim Dividend - Rs. - 0.1000
VISHWARAJ
Interim Dividend - Rs. - 0.1000
22-Feb-23 
BALRAMCHIN*
Interim Dividend - Rs. - 2.5000
BOSCHLTD
Interim Dividend - Rs. - 200.0000
COCHINSHIP
Interim Dividend - Rs. - 7.0000
DCMSRMIND
Interim Dividend - Rs. - 1.0000
GOLDIAM
Interim Dividend - Rs. - 2.0000
HERCULES
Interim Dividend - Rs. - 0.5000
IRB
Stock  Split From Rs.10/- to Rs.1/-
IRCTC
Interim Dividend - Rs. - 3.5000
MSTC
Interim Dividend - Rs. - 6.3000
OILInterim Dividend - Rs. - 10.0000
TIDEWATER
Interim Dividend - Rs. - 10.0000
TORNTPOWER
Interim Dividend - Rs. - 9.0000
TORNTPOWER
Special Dividend - Rs. - 13.0000
UNIDT
Interim Dividend - Rs. - 0.6000


*Today's Key Results/Board Meetings, 21-Feb-22 :*

ARYAN
Right Issue of Equity Shares;General
ELANTAS
Quarterly Results;Dividend 
HARISH
General   
HERITGFOOD
General   
INDAGIV
General;Quarterly Results 
LUCENT
General   
NEWINFRA
General;Quarterly Results 
PENINLAND
Preferential Issue of shares 
SABOOBR
General   
SHREEGANES
General   
UJJIVANSFB
Interim Dividend 


*SEC. IN F&O BAN FOR, 21 FEB, 2023 :*

*NIL*

*ADDITION : NIL*
*DELETION : AMBUJACEM, IBULHSGFIN*


*Today's Alert :*

*RBI to Conduct Auction of SDLS BONDS for INR 217.37 Billion*

*🌹India Daybook – Stocks in News*


*GR Infraprojects:* Declared as a lowest bidder for 2 NHAI projects worth Rs 3613 cr (Positive)

*BEML:* Company signs MoU with DMRC-led SPV for Bahrain Metro (Positive)

*Asian Paints:* Signs MoU with Gujarat government to set up manufacturing facility at Dahej (Positive)

*BEL:* Delhi Metro, BEL jointly develop signalling system (I-Ats) for operations on Delhi Metro’s Red Line (Positive)

*Kotak Bank:* From Bloomberg | Kotak Mahindra Bank to tap Egon Zehnder for CEO search (Positive)

*Bharti Airtel:* Bharti Airtel has rolled out higher minimum recharge plans across two more circles (Positive)

*Liquor stocks:* Liquor companies seek price hike as inflation dulls spirits (Positive)

*Ujjivan SFB:* Board meeting today to Consider Declaration of Interim Dividend (Positive)

*Blue Star:* Incorporated a Wholly Owned Subsidiary “Blue Star Innovation Japan LLC” in Japan (Positive)

*Sapphire Foods:* Mirae Asset Mutual Fund Bought Additional 3.54 Lakh Shares or 0.56% Equity via Open Market Purchase (Positive)

*JK Tyre:* To issue compulsorily convertible debentures worth Rs 240 Crores (Positive)

*Central Bank:* Entered into a strategic Co-Lending Partnership with Moneywise Financial Services to offer MSME Loans (Positive)

*Adani Ports:* Company pays Rs 1500 crore to SBI MF, Rs 500 crore to ABSL MF on CPs due today: Media sources (Positive)

*ACC & Ambuja Cements:* To resume operations at Gagal & Darlaghat plants in Himachal Pradesh (Positive)

*Adani Power:* Decides against bidding for a stake in state-backed electricity trader PTC India Ltd (Neutral)

*BPCL:* Company plans to raise Rs 1,500 cr via NCDs in FY23 (Neutral)

*InterGlobe Aviation:* Promoter Shobha Gangwal says sold 1.56 cr shares (4.05 % of total voting capital) on Feb 17 (Neutral)

*Peninsula:* Board meeting today to consider Fund Raising via Preferential Allotment (QIB/ Rights Issue/ Warrants, etc) (Neutral)

*Heritage Foods:* Board meeting today to consider and Approve the Basis of Allotment and Allotment of Shares to the eligible Equity Shareholders by way of Rights Issue (Neutral)

*NHPC:* The company has raised Rs 996 crore through unsecured, redeemable, non-convertible, non-cumulative and taxable 7.59 percent AD series bonds (Neutral)

STRONG #RUMOURS #MARKETS EXTEND TIMING TILL 5 PM FROM MAY 2023. #bse #nse #stockmarketindia #nifty #banknifty #options #equity #inviesting

*INSTL. INVESTORS EQUITY DERIVAT. TRADES AS ON : 21-02-2023 :*

*FIIS F & O : RS. CRS. :*

*TOTAL NET SELL : -2646* 😢

*INDEX FUT. : +966*

*INDEX OPT. : -3978*

*STOCK FUT. : +406*

*STOCK OPT. : -40*

*SEC. IN F&O BAN FOR, 22 FEB, 2023 :*

*1. IDEA*

*ADDITION : IDEA*
*DELETION : NIL*

*INSTL. INVEST. EQUITY CASH PROV. TRADES AS ON : 21-FEB-2023 :*

*FIIS : BUY +525 (5,465-4,940)* 😊

*DIIS : SELL -235 (5,318-5,553)* 😔

*BSE SENSEX : -19 (60,672)🔽*

*NSE NIFTY : -18 (17,826)*🔽

*BSE MIDCAP. : -52 (24,604)*🔽

*BSE SMLCAP. : -88 (27,914)*🔽

*B. CRUDE : $ 83.44* 🔼 😔

*GOLD: $1842=INR 56,390(10gr)* ↔️ 😳

*SILVER : RS. 68,850 (kg) (5pm) ↔️ 😳*

*FOREX : RS. $ 82.79* 🔽 😔

*7.26% GOI '32 : 7.3883%(99.1350)* 🔼😔

*7.54% GOI '36 : 7.4467% (100.76)*🔼 😔

*7.41% GOI '36 : 7.4363% (99.76)* 🔼 😔

*7.26% GOI NEW '33: 7.3629% (99.2775)*🔼😔

#stockmarket Updates :

#SGX #Nifty -70 pts (17781) from last trade 17851 ,

#Nikkei -352 pts ,
#Hangseng -17 pts ,
Around @ 6.52am .

Dow -697.10 pts ,Nsdq -294.97 pts, S&P -81.75 pts, Bovespa -764 pts , Ftse -36 Pts , Dax -79 pts , Cac -26 pts , Crude @ $76.16 brl (+0.00), Brent @ $82.73 brl (+0.00) , Gold @ 1844.70 (+0.00), Silver @ $21.89 (+0.00), Euro @ $1.0647, JPY @ $135.02,  INR @ 82.835


US GOVT. 10-YEAR YIELD : 3.94%to


Today's Corporate Action, 22 Feb Ex Date :

BALRAMCHIN*
Interim Dividend - Rs. - 2.5000
BOSCHLTD
Interim Dividend - Rs. - 200.0000
COCHINSHIP
Interim Dividend - Rs. - 7.0000
DCMSRMIND
Interim Dividend - Rs. - 1.0000
GOLDIAM
Interim Dividend - Rs. - 2.0000
HERCULES
Interim Dividend - Rs. - 0.5000
IRB
Stock  Split From Rs.10/- to Rs.1/-
IRCTC
Interim Dividend - Rs. - 3.5000
MSTC
Interim Dividend - Rs. - 6.3000
OILInterim Dividend - Rs. - 10.0000
TIDEWATER
Interim Dividend - Rs. - 10.0000
TORNTPOWER
Interim Dividend - Rs. - 9.0000
TORNTPOWER
Special Dividend - Rs. - 13.0000
UNIDT
Interim Dividend - Rs. - 0.6000


*Today's Key Results/Board Meetings, 22-Feb-22 :*

GOLDLEG
Quarterly Results  
INTENTECH
General   
KSOLVES
Interim Dividend  
MAHINDCIE
Final Dividend;Audited Results 
NINSYS
General   
VISAKAIND
Stock  Split 


*SEC. IN F&O BAN FOR, 22 FEB, 2023 :*

*1. IDEA*

*ADDITION : IDEA*
*DELETION : NIL*

#premarket #stockmarketindia
#alliesfin #nifty #banknifty
US stocks fell on Tuesday as higher yields and disappointing outlook from retailers raised concerns about the state of the consumer. Dow fell almost 2.00% wiping out gains of 2023, S&P also fell 2.00%, its worst day since December 15 and Nasdaq lost close to 2.50%.

USD index moved higher near 104.20, 10 year jumped to multimonth high of 3.95% and cboe vix moved sharply higher above 22.

Crude futures saw some pullback, WTI eased near 76, Brent fell below 83.

Indian stocks closed flat amidst volatility as fears of rates along with Adani group stock effect continued to shadow sentiments on Dalal street. PSU banking names, Metal stocks fell but buying in market heavyweight RIL and some FMCG names helped indices recoup some losses during the day.

Markets may continue to remain volatile on the back of weak global cues. Lack of cash market participation due to tightening of margin may lead to big swings in stock prices ahead of Feb series expiry. Continue to rotate positions within sectors to stay afloat as stocks may remain volatile for near term.

(as on 4.00 am IST)

*🌹India Daybook – Stocks in News*


*RCF:* Sanjay Rastogi is appointed as government nominee director on the board of RCF (Positive)

*Sapphire Foods:* The subsidiary Gamma Pizzakraft has increased stake in its subsidiary Gamma Island Food to 75 percent (Positive)

*IRB Infra:* Company declared preferred bidder for six-lane highway project in Gujarat worth Rs 2,132 crore (Positive)

*BEL:* Signs MoU with Aeronautical Development Agency, DRDO for the Advanced Medium Combat Aircraft Programme (Positive)

*Railtel:* ICRA Reaffirms Company’s Ratings & Revises The Outlook (Positive)

*ITI:* Rajesh Rai Appointed Chairman and Managing Director of the company (Positive)

*LIC Housing:* ICICI Pru MF acquires 1.11 Crore Shares or 2.03% Additional Stake from Open Market (Positive)

*Zensar Tech:* Nippon India MF acquires 39.68 Lakh Shares or 1.75% Stake from Open Market (Positive)

*Saurashtra Cement:* Promoters Pledge Released – HDFC Bank Releases 1 Crore Pledged Shares (Positive)

*Lemon Tree:* Company has signed a Franchise Agreement for a 34 room property in Manali, Himachal Pradesh (Positive)

*Concor:* Dipam calls for key meeting on Wednesday to mull Concor divestment (Positive)

*Peninsula:* To Allot Shares and Warrants To A Promoter Entity – Miranda Tools (Positive)

*Cyient:* Company announced a partnership with Thingtrax to enable manufacturers to increase efficiency and reduce costs. (Positive)

*Capacite Infraprojects:* Company said it has received a contract worth Rs 181 crore from Indian Oil. (Positive)

*Hatsun:* Board meet today to consider Proposed Investment in Swelect Taiyo Energy for the purpose of consuming solar energy under Group Captive Consumption facility (Positive)

*Visaka Ind:* Board meet today to consider a proposal for Sub-Division of Equity Shares (Neutral)

*Share India:* Board meet today to consider Modalities of Rights Issue; Consider Issue Price, Entitlement Ratio & Other Details (Neutral)

*Petronet LNG:* The company has received approval from board members for the extension of Vinod Kumar Mishra's tenure as Director (Finance) (Neutral)

*Biocon:* The biopharmaceutical company has raised Rs 1,070 crore by issuing 1.07 lakh non-convertible debentures (Neutral)

These are the *50 transactions* which IT dept is doing data mining from various sources like banks, register office, etc... Kindly do not miss any such transaction in reporting while filing your IT return or GST return. *Ensure you have reported all those 50 transactions* without fail apart from your other transactions which might not covered in these 50. This shows the future approach of IT, GST authorities while reviewing the filed returns. Slowly it will become a AI based comparabilities and system throws the differences with out assessing officers review.

Be prepared from now on...!

For Assistance connect your CA or helpdesk +919869958999 🙏

Link to this post
https://telegram.me/AlliesFin/12775

तुम आज़ाद हो मेरे बारे में
कोई भी धारणा बनाने को,

आखिर,
तुमको समझ आ जाये
इतना सस्ता भी तो मेरा क़िरदार नही....!!

सबकी दुलारी निफ्टी रानी

#nse #nifty #stockmarketindia

SGX Nifty +44 pts (17610) from last trade 17566 ,


Nikkei clsd ,
Hangseng +40 pts ,
Around @ 7.20am .


Dow -84.50 pts ,Nsdq +14.77 pts, S&P -6.29 pts , Bovespa -2024 pts , Ftse -47 pts , Dax +2 pts , Cac -9 pts , Nikkei Clsd ,Crude @ $73.93 brl (-0.02), Brent @ $80.62 brl (+0.00) , Gold @ 1833.30 (-8.20), Silver @ $21.50 (-0.17), Euro @ $1.1606, JPY @ $134.94, INR @ 72.83




*Today's Corporate Action*
*23rd Feb Ex Date*



AKASHDEEP
Stock  Split From Rs.10/- to Rs.2/-
KIRLOSENG
Interim Dividend - Rs. - 2.5000  
METROPOLIS
Interim Dividend - Rs. - 8.0000  
NCLIND
Interim Dividend - Rs. - 1.5000  
PREMCO
Interim Dividend - Rs. - 6.0000  
SUPRAJIT
Interim Dividend - Rs. - 1.0500



*Today's Board Meetings*
*23-Feb-23*



ENBETRD
Increase in Authorised Capital  
ENKEIWHEL
Audited Results  
KLBRENG-B
Issue Of Warrants  
KSB
Audited Results;Final Dividend  
MESCON
Quarterly Results  
MOTOGENFIN
General  
QRIL
Preferential Issue of shares  
SANOFI
Audited Results;Dividend  
SHREESHAY
General  
STANCAP
General  
TULSYAN
Quarterly Results  
VIVANTA
General;Stock  Split  
VKAL
Preferential Issue of shares  
VLSFINANCE*
General  






*Stock under F&O ban on NSE*
*23-Feb-23*




1 IDEA

Pre Market updates

US stocks ended mixed after a lot of back and forth during the day. Participants also digested the latest FED meet minutes that took note of tight labour market and inflation trending well above the FED range of 2%. Minutes also noted welcome reduction in inflation print but stressed that more evidence on the same is needed to change the guard. Dow lost 0.26%, S&P lost 0.16% but Nasdaq gained 0.13% at close.

USD index moved higher near 104.52, 10 year eased near 3.92% and cboe vix closed modestly lower near 22.25.

Crude futures dropped nearly 3% to two week lows on worries over aggressive rate hike hurting demand, WTI fell below 74, Brent near 80.

Indian stocks extended their losses for the fourth consecutive session to post its biggest losing streak in 5 months. BFSI names were hit the hardest as Bank Nifty closed below 40000 for the first time since October 17 2022, Oil and Gas also took a knock in Wednesday's session. Nifty closed near 17550 and Sensex closed below 60000.

Global sentiments and February series expiry related volatilty may dominate trade for today. Markets may also wait for FED's favourite gauge, the core CPE data later this week for direction. Participants may continue to use current give backs to rebalance portfolios for medium to long term. Participants with near term view may start building some long position as current sell-off in the markets may have taken stocks to oversold zone from where a sharp short term reversal may get triggered.

*News Headlines from Business News Agencies:*

*Business Standard :*

• Adani Ports repays Rs 1,500 cr to SBI Mutual Fund, Aditya Birla Sun Life.

• Fibe crosses Rs 10,000 cr in loan disbursals, eyes Rs 20,000 cr AUM by 2025

• Govt approves extension of mandatory jute packaging norms: Report

• Centre sets up panel to protect wheat as farms gear up for heat wave

• Centre pulls up Amazon, Byju's for unfair consumer practices: Report

• SBI rolls out BHIM SBIPay for S'pore-India transfer after UPI-PayNow linkage

• Vodafone inks new deal with Google on RCS messaging, Pixel devices

• FDI equity inflows decline by 15% to $36.75 bn in Apr-Dec FY23: DPIIT data

• Zomato launches home-style cooked meal delivery service, starts at Rs 89

• India 'number one' priority, have reduced wait time for visa: US Officials

• RBI MPC minutes show deepening concerns over inflation pressures

• FDI equity inflow contracts 15% to $36.7 billion in Apr-Dec: Govt data

• Govt mulling fresh bid for one vacant slot in advanced cell PLI


*Economic Times :*

• Indian economy expected to contribute more than 15% of global growth: IMF MD

• Patel Engineering bags projects worth Rs 1,026 cr

• Cabinet approves signing of India-Guyana air services agreement.

• HDFC Bank, Lulu Exchange ink deal to enhance cross-border payments between India-Gulf region

• Sebi proposes to introduce 5 new categories under ESG funds

• Govt asks all states, UTs to make 6 years minimum age for Class 1 admission

• Rajeev Raghuvanshi appointed as new Drug Controller General of India.

• UAE eyes renewables partnerships with India.

• UK overtakes India as the world’s sixth-biggest equity market

• YES Bank hikes fixed deposits (FDs) interest rates.

• India, Israel keen on finalising FTA.

• Right time for India to draw investment, says World Bank President

• Tata Motors eyes $1 billion stake sale in its electric vehicle division with zero net debt in sight

• Meta plans another round of layoffs, may fire thousands of employees soon, says report


*MINT :*

• Indian Railways completes electrification of all routes in Uttar Pradesh.

• Jio-owned Haptik to leverage ChatGPT to improve, train enterprise chatbots

• Monetary policy may remain in tightening mode, says Guv Das

• First ship leasing entity gets nod to begin operations from GIFT City.

• Abans Holdings appoints former Sebi ED Nagpal as independent director

• NSE extends trading hours for interest rate derivatives till 5pm

• Morgan Stanley ups 2023 oil demand growth estimate by 36%, flags Russia risk

• Centre issues Quality Control Order for cotton bales.

• Mukesh Ambani to stream Indian Premier League for free after paying $2.7 bn

• Axis Bank enables cross-border transaction in real time via UPI.

• HDFC Bank to hit dollar bond market after gap of 2 years.

• Abu Dhabi defence firm signs MOU with India's HAL at UAE's defence expo

• Fed is 'absolutely' committed to 2% inflation target, Williams says

• Oil drops 3% as high inflation risks stoke demand worries

*🌹India Daybook – Stocks in News*


*Tata Motors:* The company taps sovereign funds such as ADIA, Mubadala, PIF, as well as PEs Temasek, KKR, General Atlantic (Positive)

*Sonata Soft:* North America unit to acquire Quant Systems for an upfront payment of $65 million &will pay up to $95 million (Positive)

*HG Infra:* Company emerges as Lowest Bidder (L-1) for a project by Rail Vikas Nigam Limited (RVNL), HG Infra bid at Rs 466 cr (Positive)

*GSFC:* Gujarat Government appoints Raj Kumar as Chairman & Director of GSFC (Positive)

*Lemon Tree:* Company signs license pact for 47-room hotel in Bhopal (Positive)

*HeroMoto Corp:* Company initiates operations of its public charging infrastructure in Bengaluru, Delhi & Jaipur (Positive)

*Wipro:* Lab45 launches its Decentralized Identity and Credential Exchange (DICE) ID (Positive)

*Greaves Cotton:* Narasimha Jayakumar appointed CEO of Retail Business (Positive)

*Barbeque:* Acquires additional 54,829 Shares or 0.14% stake via open market purchase on 21-Feb (Positive)

*Sandur:* CEC has granted approval today, for enhancing the Company’s Mn Ore production from 2.86 lakh tonnes to 5.82 lakh tonnes (Positive)

*Sarda Energy:* South-Eastern Coalfields has issued Letter of Acceptance against Company’s bid for the Re-opening, Salvaging, Rehabilitation, Development and Operation of Kalyani Underground Mines (Positive)

*Elantas:* Gujarat Pollution Control Board has granted the Company, Consent to Operate for an additional capacity of approximately 25,000 MT/annum (Positive)

*Gujarat Gas:* Raises PNG price by Rs 1.5/scm to Rs 49.5/scm. (Positive)

*Adani Green:* Sri Lanka investment board approves $442 mln Adani Green wind power plants. (Positive)

*Biocon:* The company has fulfilled its payment obligation and has fully redeemed the commercial papers of Rs 2,250 crore (Positive)

*Tata Steel:* Company acquires 4.68 lakh shares of Neelachal Ispat Nigam (NINL) worth ₹300 cr on February 21 at a premium of ₹54/sh (Neutral)

*Mahindra CIE:* Cons loss at Rs 658 cr vs PAT of Rs 80 cr YoY, Cons revenue from ops at Rs 2,247 cr vs Rs 1,670 cr YoY (Neutral)

*Zee Ent:* NCLT admits IndusInd Bank's insolvency plea against Zee Entertainment

*Delhivery:* Internet Fund III sells Rs 1.23 cr shares of Delhivery (From Agencies)

@A1GURUKULAM

BANKNIFTY AT 200 EMA
A STRONG REASON FOR BOUNCE BACK.

TODAY EXPIRY AND TOMORROW WEEKLY CLOSING.

SO LETS WATCH FOR 2 DAYS FOR CLOSING ABOVE THIS OR BELOW TO DECIDE THEN NEXT TREND.

AAPKA SAARTHI @AXiiTSHAH

@A1GURUKULAM

NIFTY AT 200 EMA
A STRONG REASON FOR BOUNCE BACK.

TODAY EXPIRY AND TOMORROW WEEKLY CLOSING.

SO LETS WATCH FOR 2 DAYS FOR CLOSING ABOVE THIS OR BELOW TO DECIDE THEN NEXT TREND.

AAPKA SAARTHI @AXiiTSHAH

India ready to compete with dollar, trade with 64 countries will be done in rupees!
https://www.google.com/amp/s/www.news9live.com/business/india-ready-to-compete-with-dollar-trade-with-64-countries-will-be-done-in-rupees-au40-2054033/amp
After the introduction of trade in rupee with Russia, 17 Vostro accounts have been opened in the country and 64 countries, including developed countries like Germany and Israel have expressed interest in doing business through rupee.

India’s imports from Russia up 384% in April-Jan on back of rise in oil trade

◆ RBI proposed a trade settlement system in rupees in July 2022 to attract interest from abroad
◆ Several countries from Africa, and neighboring countries like Bangladesh, Nepal and Myanmar have shown interest in trading in rupees
◆ Special Vostro accounts for countries like Mauritius and Sri Lanka have already been approved by RBI

India’s decision to reduce its dependence on the US dollar in trade with other countries is proving effective. After the introduction of trade in rupees with Russia, 17 Vostro accounts have been opened in the country and 64 countries, including developed countries like Germany and Israel, have expressed interest in doing business through rupees.

The list of 12 Indian banks include UCO Bank, IndusInd Bank Ltd., Union Bank of India Ltd., Canara Bank Ltd., HDFC Bank Ltd., Yes Bank Ltd., State Bank of India, IDBI Bank Ltd., Indian Bank, Punjab National Bank, Bank of Baroda Ltd. and Axis Bank Ltd.

These are the benefits
◆ Use of rupee in cross border transactions will reduce the risk for Indian business.
◆ Protection from currency volatility not only reduces the cost of doing business, but also enables better business growth
◆ This improves the chances of Indian business growing globally.
◆ It also reduces the need to hold foreign exchange reserves. Especially in view of the dollar reserves.
◆ Foreign exchange reserves help in curbing the volatility of the exchange rate.
◆ By reducing the dependence on foreign exchange, India will become less sensitive to external influences..ie, there will be no impact due to increase or decrease in dollar.

RBI proposed a trade settlement system in rupees in July 2022 to attract interest from abroad and reduce dependence on the dollar. For the first time, Germany — a country part of the European Union — has come forward with any Asian nation’s currency i.e. the Indian Rupee.

■ If more than 30 countries agree to do business in Indian Rupee, it may be recognised as an international trading currency.
■ Apart from Russia, Sri Lanka has agreed to do business in the Indian Rupee in the initial phase.
■ Since then, several countries from Africa, and neighboring countries like Bangladesh, Nepal and Myanmar have shown interest in trading in rupees. These countries are facing a shortage of dollars in their foreign exchange reserves.

Tajikistan, Cuba, Luxembourg and Sudan are also in talks to settle trade in rupees. These four countries have taken steps for special Vostro account for trade settlement in rupees. These countries are in touch with banks operating such accounts in India. Special Vostro accounts for countries like Mauritius and Sri Lanka have already been approved by RBI.