Top headlines: IPO filings dry up, challenges for Maruti Suzuki, and more

From IBM dropping its facial recognition software, Irdai withdrawing its long-term covers on motor to FM telling banks to improve interest rate transmission, here are the top headlines on Wednesday

The coronavirus pandemic has posed difficulties for India's largest carmaker, Maruti Suzuki, as it faces production challenges and expects supply to outstrip demand soon. Nirmala Sitharaman has asked banks to improve their interest rate transmission and to expedite sanctioning of loans under the Emergency Credit Line scheme to provide additional funding to MSMEs hit by the lockdown. IBM has dropped its facial recognition software amid widespread protests raging in the United States following the death of George Floyd by a Minneapolis police officer. Here are the top headlines on Wednesday:

Challenge for us is supply chain rather than demand: Maruti's R C Bhargava

Maruti Suzuki, the country’s largest carmaker, expects demand for its passenger cars to outstrip supply in the months of June and July as it faces challenges in ramping up production amid the Covid-19 pandemic. “We will not be able to assemble more than 30-40 per cent of what is normal production in June. So we will have no problem in selling what we make,” R C Bhargava, chairman of Maruti Suzuki, told Business Standard. Read More...

IPO offers dry up amid Covid-19 scare; filings with Sebi lowest in 6 years

Initial public offers (IPOs) have dried up this year as uncertainty continues around the Covid-19 pandemic, with draft red herring prospectus (DRHP) filings with the Securities and Exchange Board of India (Sebi) hitting a six-year low. So far this year, only seven companies, looking to raise less than Rs 6,500 crore, have filed their DRHPs — a preliminary prospectus filed ahead of an IPO that contains key details such as the number of shares being offered, financial results, and risk factors. Read More...

FM Nirmala Sitharaman tells banks to improve interest rate transmission

Finance Minister Nirmala Sitharaman told state-owned banks on Tuesday to hold board-level talks and go for further cuts in interest rates on loans in a bid to spur economic activity “The FM told bankers that interest rate transmission is not happening as expected, and asked them to take up the matter at board level. The government was sceptical about a slower monetary rate transmission by public sector banks (PSBs) till now,” a person who was present in the meeting said, requesting anonymity. In the meeting with PSB chief executives, the FM also asked them to expedite the sanctioning of loans under the Emergency Credit Line Guarantee Scheme (ECLGS) to provide additional funding to firms to the tune of Rs 3 trillion. Read More...

MNREGA jobs are short-term, only lasting solution is projects: L&T chief

Engineering congolomerate Larsen & Tourbo (L&T) expects the current financial year to be very tough as the country gets set to rebuild its economy. S N Subrahmanyan, managing director and chief executiver officer (CEO), L&T, expects government and public sector capital expenditure to be lower by Rs 3-4 trillion this year. In an interview with Amritha Pillay, he expects more orders in the later part of the year as the government needs to announce projects to create long-term employment. Read More...

NCLT approves a resolution plan for Aircel; UVARCL likely to get assets

The National Company Law Tribunal (NCLT) on Tuesday approved a resolution plan for Aircel, submitted by asset reconstruction firm UV ARCL. It has offered just 1.5 per cent of the total bank dues of Rs 20,000 crore owed by the company. When contacted, the resolution professional refused to comment on the order. In February 2018, the telco had itself filed an application under Section 10 of the Insolvency and Bankruptcy Code, 2016 (Code) after the company failed to repay its loans. It was stated that the operator was facing trouble in a financially stressed industry, owing to intense competition, legal and regulatory challenges, high level of unsustainable debt, and increased losses. Read More...

Sebi relaxes FPO rules temporarily to help firms raise additional capital

Sebi has temporarily relaxed norms governing follow-on public offering (FPOs) to help listed firms raise additional capital. The markets regulator said firms with average market capitalisation of Rs 500 crore will now be eligible to bring out an FPO under the fast track record. Read More...

40 coal blocks likely to be on offer in a fortnight as govt eases rules

India will be offering around 40 blocks for commercial coal mining within a fortnight for investment by both government and private entities. This would be followed by roadshows in major cities of coal bearing areas. This comes at a time when the coronavirus (Covid-19) pandemic has impacted investor sentiment across the globe, besides a global push towards a low carbon economy. Officials, however, see good response coming from the industry in coal bearing states though an enabling amendment in the Mineral and Mines (Development & Regulation) Act had been done earlier this year in order to get in foreign investment. Read More...

IBM drops facial recognition software amid racial profiling concerns

IBM CEO Arvind Krishna has told the US Congress that the technology giant is no longer offering its facial recognition or analysis software and “firmly opposes” technology that is used for mass surveillance, racial profiling and violations of basic human rights and freedoms. Krishna on Monday sent the letter to Congress outlining detailed policy proposals to advance racial equality in America, which has seen widespread protests and demonstrations against the spate of recent killing of African-Americans, including that of George Floyd by a white police officer and also against repeated police brutality against the Black community. Read More...

Irdai withdraws long-term package covers in motor sector over affordability

The Insurance regulator on Tuesday withdrew a circular, which asked general insurance companies to provide long-term package covers in the motor segment, offering third-party and own-damage insurance for three and five years to new two wheelers and four wheelers, with effect from August 1, 2020 on grounds that it is creating issues for insurers and also making it unaffordable for some section of vehicle owners. The Insurance Regulatory and Development Authority (Irdai) after reviewing the performance of long term package covers and following concerns relating to its implementation since its introduction, decided to withdraw these covers. Read More...

Faster nod for clinical trials of all drugs and vaccines soon

The government has designated the Central Drugs Standard Control Organisation (CDSCO) as the first point of registration for clinical trials of all drugs and vaccines, a move expected to cut the approval time to three months from 12 months. A committee led by cabinet secretary Rajiv Gauba has also decided to set up a nodal coordination committee to ensure expeditious disposal of all applications with the decision binding on all regulators, according to the Economic Times.