News digest: SMEs face liquidation, crackdown on tax evaders, and more

Nearly 70% of stressed SMEs face liquidation

Around 70 per cent of small and medium enterprises (SMEs) undergoing insolvency proceedings face liquidation, as their promoters are the only ones presenting resolution plans. The recent ordinance amending the Insolvency and Bankruptcy Code (IBC) virtually debars promoters from bidding for their stressed assets. Experts said at least 200 of the 300-odd SMEs would have to face liquidation. Read more

Fund managers make switch to high-growth AIF industry

Marquee fund managers are making the switch from mutual funds to newly introduced alternative investment funds (AIFs), which are seeing a rapid growth in commitments thanks to a spike in the number of wealthy investors.

Last week, Franklin Templeton appointed S Naganath, chief investment officer (CIO) of rival DSP Blackrock, as head of its AIF division. Read more

Central task force plans crackdown on tax evaders

The multi-agency group (MAG) constituted by the central government to investigate the Paradise Papers on offshore financial holdings is planning to take stringent action against tax evaders named in the leaked documents. According to sources, the group, headed by the Central Board of Direct Taxes chairman and having representatives from the Enforcement Directorate, the Reserve Bank of India, and the Financial Intelligence Unit, has called its first meeting on December 1 to discuss the strategy to clamp down on the people. Read more

SBI raises rates on bulk deposits by 100 basis points

State Bank of India has raised its rate on all bulk term deposits by one per cent (100 basis points) from Friday. The revision comes after about a year and also signals the end of a rate easing cycle, said bankers, which had begun in the second quarter of 2015-16. Read more

China's auto industry accelerates in race against foreign rivals

A new auto brand, Lynk & Co., hit the market in China on Tuesday, part of an effort by domestic car makers to broaden their appeal by offering upscale vehicles capable of matching foreign rivals. Targeting young buyers by offering a next-generation vehicle with free wireless connectivity and car-sharing services, Lynk’s rollout reflects the growing ambitions of Chinese auto makers aiming to move beyond the production of cheap cars for a domestic audience. Read more