Covid-19 impact: States borrow Rs 12,128 cr from bond market at lower rates

States on Monday borrowed Rs 12,128 crore from the bond market at rates lower than what they had borrowed at earlier even as the 10-year G-sec yields have risen by a few basis points. The earlier plan by nine states was to borrow Rs 13,128 crore.

The cut-off yield for 10-year state development loans was at 7.60-7.65 per cent, whereas the 10-year government securities closed at 6.50 per cent.

This is a spread of 110-120 basis points, about 60-70 bps lower than the previous spread.
 

Businesses can claim GST refunds for cancelled orders, says CBIC
 

The Central Board of Indirect Taxes and Customs (CBIC) on Monday clarified that GST refunds could be claimed on advance payments received.   

“In case GST is paid by the supplier on advances received for a future event which got cancelled and for which invoice is issued before supply of service, the supplier is required to issue a credit note,” the CBIC said.

Devise plans to ensure enough capital, Irdai tells insurers
 

The Insurance Regulatory and Development Authority of India (Irdai) has asked insurers to devise strategies to ensure that they have enough capital and resources with them as the Covid-19 crisis and the subsequent lockdown will hit sectors, including insurance. 

It has asked the companies to “critically examine” their capital availability and solvency margin as required in the current fiscal year.
 

Firms can send EGM notices to shareholders through e-mails
 

The government on Monday said companies could send notices for extraordinary general meetings through e-mails to shareholder.  This decision comes amid the lockdown and social distancing requirements due to the pandemic.

This facility will also be applicable to companies planning to transact a business only through postal ballot without convening a general meeting.