CMA HP Updates – 20th Sept 2019

Updates Banking and Finance Business News

CMA HP Knowledge Sharing Desk, 20th SEP 2K19, Happy Morning wishes to you and your beloved ones

TERM OF THE DAY
 
PULL THE PLUG

Close a venture that is losing money or has no prospects of success.

Example: The developers decided to pull the plug if the project did not work out as intended.

CORPORATE NEWS

IDBI Bank okays preferential issues to LIC, government

IDBI Bank on Thursday approved the proposal for preferential issue to the government and LIC aggregating after their infusion of Rs 4,557 crore and Rs 4,743 crore, respectively, a total capital infusion of a little over Rs 9,000 crore.

At 12.45, the IDBI Bank share price was down by 2.52 per cent at Rs 27.10.

The board of directors, at a meeting on September 19, approved the proposal for preferential issue of capital to the government and LIC aggregating up to Rs 4,557 crore and Rs 4,743 crore, respectively, subject to regulatory approvals, if any, the bank’s regulatory filing said.

Govt eases rules for patents filed by women, govt departments, patent protection abroad

The government has simplified the rules for patents filed by small entities, women and government entities, and incentivised Indian companies who apply for patents abroad.

The Department for Promotion of Industry and Internal Trade (DPIIT) has notified the rules further to amend the Patents Rules, 2003 and expedited the examination a patents if the applicant is a startup, small entity, an institution established by a Central, Provincial or State Act, which is owned or controlled by the government, an institution wholly or substantially financed by the government.

IBC, DEBT RECOVERY & RESTRUCTURING RELATED NEWS

SFIO asks rating companies to share info on fees given by IL&FS

The Serious Fraud Investigation Office and other regulators have asked four credit rating companies for information on money they received from IL&FS and its subsidiaries as rating and non-rating fees to determine if there was any round-tripping of funds or favours granted, said three people familiar with the development.

The investigation arm of the ministry of corporate affairs and the IL&FS board asked CARE Ratings, ICRA, India Ratings & Research and Brickwork Ratings to provide the fee data for the past 10 years.

IL&FS starts repaying Rs 5,071 crore to creditors of 3 group firms

Debt-laden Infrastructure Leasing and Financial Services (IL&FS) has started repaying the creditors of three group entities, with outstanding claims of Rs 5,071 crore, according to an affidavit filed before an appellate tribunal on Thursday.

IL&FS reached an agreement to restructure the debt of Moradabad Bareilly Expressway Ltd, Jharkhand Road Project Implementation Company Ltd and West Gujarat Expressway Ltd without any haircut for the lenders.

Updates Banking and Finance Business News

MSME & STARTUP RELATED NEWS

Banks to organise ‘loan melas’ in 400 districts within a month: Nirmala Sitharama

To boost liquidity in the economy, Finance Minister Nirmala Sitharaman said public sector banks will organise credit “Shamiana meetings” in 400 districts beginning October 3 to provide loans to NBFCs and retail borrowers, including homebuyers and farmers.

“PSBs will focus on giving loans to the ‘RAM‘ category — retail, agriculture and MSMEs,” Sitharaman said at a press conference after meeting PSU bank heads.

Govt asks banks not to declare any stressed MSME as NPA till March 2020

In a major relief for micro, small and medium enterprises (MSME), Finance Minister Nirmala Sitharaman on Thursday announced that stressed MSMEs would not be declared non-performing assets (NPA) till March 31, 2020.

RERA RELATED NEWS

To refund buyers, Rera to auction unsold flats of defaulting builders

In a major relief to lakhs of aggrieved buyers who are forced to wait for possession of their homes for years, the Uttar Pradesh Real Estate Regulatory Authority (UP-Rera) has decided to auction unsold flats of defaulting builders to pay back investors seeking refund in delayed housing projects.
 
“I tell people to not use the RERA Act to walk out of the project. RERA Act is there to give you a home. A completed home.” – Gautam Chatterjee, MahaRERA Chairman
 
Maharashtra has been at the forefront in implementing the Real Estate (Regulation and Development) Act (RERA) and MahaRERA has seen the maximum registration of housing projects across the country. In an effort to understand the challenges faced by MahaRERA officials and also understand whether implementation of the act has helped consumers, Moneylife interviewed MahaRERA’s Chariman Gautam Chatterjee.

Updates Banking and Finance Business News

OTHER NEWS

Essel Group gets more time from NBFCs, mutual funds to repay debt

Subhash Chandra-led Essel Group has got additional time from mutual funds and non-banking financial companies (NBFC) to meet repayment schedule, according to a media report.

The Essel Group had an overall debt of around Rs 16,000 crore as of March, and around Rs 11,000 crore of this was raised from mutual funds and NBFCs by pledging promoter shares across group firms, including ZEEL.

“Mutual funds and NBFCs are said to have agreed to provide more time to Essel Group promoters to meet the repayment schedule. Enough time would be provided to realise adequate value from sale of assets,” Bloomberg Quint reported.

SEBI sets up panel to suggest norms for social stock exchanges

The Securities and Exchange Board of India (SEBI) said on Thursday it has constituted a working group on Social Stock Exchanges (SSE) under the chairmanship of Ishaat Hussain, Director, SBI Foundation.

The working group shall examine and make recommendations with respect to possible structures and mechanisms, within the securities market domain, to facilitate the raising of funds by social enterprises and voluntary organizations

Govt may set up Rs 20,000-cr fund for stalled non-NPA housing projects in 45 days

The government is targeting to implement in the next one-and-a-half month its decision to set up a Rs 20,000-crore fund for those stalled housing projects that have neither been declared insolvent nor turned bad loans, sources said. To expedite the process, the finance ministry on Thursday held consultations with real estate developers and property consultants for their suggestions as it wants to roll out this fund in the next 45 days, they added.

Govt reworking its strategy to enhance direct tax mop-up: CBDT Member Ranjan

The government is reworking its strategy to boost revenue collection from direct taxes which has been lagging behind so far, a senior CBDT official said on Thursday.

The government has set a direct tax collection target of Rs 13.35 lakh crore for the current fiscal, which includes Rs 7.66 lakh crore from corporate tax and Rs 5.69 lakh crore as income tax.

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Updates Banking and Finance Business News

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