As per media reports, Financial Technologies (FTIL), the promoter of Multi Commodity Exchange of India (MCX) has proposed a 40% cut in its annual maintenance contract (AMC) fees with the bourse as part of the renegotiation of the controversial technology contracts. The monthly fee under the AMC is proposed to be cut to Rs 3 crore from Rs 5 crore. FTIL has also proposed introduction of an exit clause to the tech deals which the forensic audit found one-sided. If MCX agrees to this proposal, its annual outgo on technical cost may decline to ~Rs. 36 crore from Rs. 60 crore at present. MCX made PAT of Rs. 153 crore in FY14. Both the companies have declined to comment on the issue. However, if the deal goes through it shall be positive from the MCX perspective.
Mineral royalty rates raised
Government raised the royalty rates on minerals. The Cabinet in-principle approved revision of mineral royalty. This excludes coal, lignite and sand for stowing. Under the Mines and Minerals (Development and Regulation) Act, 1957, the central government revises the rate at which royalty is payable in respect of any mineral. This cannot be done more than once every three years. There are 51 minerals prescribed in the second schedule of the Act, the rates varying from mineral to mineral. Iron ore and bauxite would now see a rate rise to 15% against the earlier 10%. Manganese ore would attract a royalty equivalent to 5% from 4.2% of the notified sales price.
China Manufacturing PMI Tumbles In August – HSBC
The manufacturing sector in China continued to expand in August, although it slowed dramatically, the latest flash PMI from HSBC revealed with a score of 50.3. That was well shy of forecasts for a score of 51.5 and down sharply from 51.7 in July. Among the individual components of the survey, the manufacturing output index fell to 51.3 in August from 52.8 in the previous month.
Japan Manufacturing PMI Rises To 52.4 – Markit
The manufacturing sector in Japan continued to expand at an accelerating pace in August, the latest flash purchasing managers’ index from Markit Economics revealed with a score of 52.4. That handily beat forecasts for a score of 51.5 following the 50.5 reading in July. Among the individual components of the survey, the manufacturing output index swung to expansion after contracting in July. Backlogs of work also turned to expansion.