Page 25 - Business Finance
GAIL (India) may head north after setting record date
GAIL (India) has fixed 10 July 2019 as the record date for the purpose of ascertaining the eligibility of shareholders for issuance of bonus shares in the ratio of 1:1 i.e. one new bonus equity share for every one existing equity share. The announcement was made after market hours yesterday, 20 June 2019.
NCLT admits insolvency plea by SBI against Jet Airways
The local bench of National Company Law Tribunal (NCLT) on Thursday admitted the insolvency application filed by the State Bank of India (SBI) against grounded Jet Airways.A Bench of judges V P Singh and Ravi Kumar Duraisamy admitted the petition under Section 7 of the Insolvency and Bankruptcy Code (IBC).The Bench said that the matter is of national importance and directed resolution professional, Ashish Chhawchharia of Grant Thornton, to complete the process within three months as against 180 days (six months) prescribed in the IBC.The tribunal also rejected an intervention application moved by Netherlands-based operational creditors, citing lack of cross-border jurisdiction.The matter will be further taken up on July 5 for the filing of a progress report by the resolution professional.Two separate bankruptcy petitions filed by operational creditors -- Shaman Wheels and Gaggar Enterprises -- who claimed Rs 8.74 crore and Rs 53 lakh respectively from the cash-strapped airline has ...
Oil jumps 6% on Trump threat after Iran downs spy drone
World oil prices spiked more than six percent Thursday on President Donald Trump warning Iran made "a very big mistake" after it boasted of downing a US spy drone. The developments accelerated day-on-day gains in US oil benchmark WTI in late New York morning trading. Europe's Brent Crude rose by nearly five percent at one point, before both contracts pulled back somewhat. Iran shot down the drone near the Strait of Hormuz, a major choke point for world crude shipments, spurring market fears of a confrontation that could badly constrain supplies. Further solid support for oil prices, as for global stock markets, also came from the US Federal Reserve signalling it could soon cut interest rates, while the dollar and US Treasury yields fell. The Bank of England, leaving key interest rates unchanged, warned against the rising danger of a no-deal Brexit, which analysts took as a sign that it, too, seems ready to take a more accommodating stance. Iran's Revolutionary Guards said Thursday ...
Indian retaliatory tariffs to hit Californian farmers: Congressman
The retaliatory tariffs imposed by India on several American products - particularly agricultural items like walnut, almond and apple - will badly hit millions of farmers in California, an influential American lawmaker said Thursday. India announced a hike in customs duties on as many as 28 US products, including almond, apple, pulses and walnut, in response to higher tariffs imposed by Washington on Indian products like steel and aluminium. The commerce ministry on Friday made public India's intention to go ahead with imposition of duty on American products, a move New Delhi had previously deferred in the hope of striking a trade deal. "This trade war can't be fought at the expense of Central Valley farming communities," Congressman T J Cox said as farmers in California have started reaching out to the lawmakers and the US government on the adverse impact they are facing due to the trade war between India and the United States. "70 percent tariffs on CA's top crops are India's latest
IL&FS Fin Services laundered Rs 5,000 cr of shareholder funds, ED tells court
The Enforcement Directorate Thursday told a court here that the IL&FS Financial Services (IFIN), a subsidiary of the crisis-hit IL&FS Group, alone has allegedly laundered over Rs 5,000 crore of shareholder funds. In a remand application submitted to the special court here, the ED claimed the group was being run as a "personal fiefdom" by the directors, who indulged in enhancing turnover for ensuring better credit rating for group companies and also bonus-like incentives. The ED filed the application a day after arresting IL&FS's former joint managing director Arun Saha and former managing director of IL&FS Transportation Networks Ramachand Karunakaran. The duo was remanded in ED custody till next Tuesday. The total debt of IL&FS has inflated to Rs 91,000 crore due to "arbitrary sanctioning of loans or credit facilities, including routing of money through third-parties", the ED said in the application. "In IFIN, it is suspected that there has been laundering of more
Disagree with ICRA's rating revision: Reliance Power
Reliance Power Thursday said it disagrees with the revision in its long-term rating by ICRA to 'C issuer not cooperating', adding that it continues to show strong operational performance. ICRA cited deterioration in the company's financial position coupled with its stretched liquidity profile for the rating revision. The short-term rating remains unchanged at 'A4 issuer not cooperating'. "We inform that ICRA Limited (ICRA) has revised the long-term rating on rated instruments of the company to 'C issuer not cooperating'," Reliance Power said in a regulatory filing. However, the company said it believes that ICRA has not appropriately factored in facts while revising the rating. "The company respectfully disagrees with the revision in the rating," Reliance Power said, adding that it continues to show strong operational performance. "Sasan UMPP recorded highest PLF in the country at 95 per cent in FY'19. Rosa Power Project has been operating at high availability of 89 per cent," ...
Two Cong MLAs appointed heads of state board, corporation
Karnataka Chief Minister H D Kumaraswamy Thursday appointed two Congress MLAs as heads of state board and corporation with cabinet ranking, in a move to placate disgruntled law makers. The move comes close on the heels of the cabinet expansion, which saw induction of two independents into the coalition Ministry. Among the appointees are Congress MLAs Sudhakar K and Venkataramanaiah as chairpersons of State Pollution Control Board and Bangalore International Airport Area Planning Authority (BIAAPA) respectively. While, JD(S) MLA Nisarga Narayana Swamy, who earlier held BIAAPA has been appointed chairman of Satellite Town Ring Road (STRR) Planning Authority, with cabinet ranking. Retired IFS officer C Jayaram, who resigned from the Pollution Control Board to make way for Sudhakar, has been appointed as Chairman of the Zoo Authority of Karnataka. The coalition leaders are likely to appoint a few disgruntled MLAs as Chairmen to some boards and corporations, that are still ...
Establishing digital village, addressing call drops priorities: Telecom MoS
Union Minister of State for Telecommunications Sanjay Shamrao Dhotre Thursday said setting up of 1-1.25 lakh digital villages, improving network quality and revival of BSNL and MTNL are his top priorities. "We have to set up 1-1.25 lakh digital villages this year. Second, we have to improve quality (of services) like call drops and (put in place) revival plan for BSNL and MTNL," Dhotre told reporters on sidelines of a Broadband India Forum event. In the interim budget, the government said there are more than three lakh common service centres operating across the country delivering government services that are available digitally to people in rural areas and helping the government create digital villages. The government had announced that it will create 1 lakh digital villages in the next five years. Then finance minister Piyush Goyal had unveiled the government's vision for 2030 while presenting the interim budget in which digital technologies will play a pivotal role. Goyal had said .
L&T to get 3 seats on Mindtree Board; Subroto Bagchi to step down
Construction major L&T, which is in the midst of a hostile takeover of Mindtree Ltd, has secured three board positions at the IT services firm, giving the former a firm control over the company where it is eyeing over 66 per cent stake. Also, Mindtree co-founder Subroto Bagchi, who will retire next month, has not offered himself for re-appointment to the Board. In a BSE filing on Thursday, Mindtree said L&T CEO and MD S N Subrahmanyan will join its Board as Non-Executive Director with effect from July 16 when Mindtree is scheduled to hold its annual general meeting (AGM). The Nomination and Remuneration Committee and the Board of Directors of Mindtree have also approved and recommended the appointments of Jayant Damodar Patil and Ramamurthi Shankar Raman as non-executive directors, subject to shareholders' approval at Mindtree's AGM, it added. Patil is a whole-time director and Senior Executive Vice-President for L&T's Defence business, while Raman presently oversees the ..
Jet Airways' bankruptcy process begins, stock soars 150%
Jet Airways Thursday became the first domestic airliner to go into bankruptcy as the NCLT admitted an insolvency petition filed by State Bank on behalf of 26 lenders, sending its share price soaring a whopping 150 percent after having plumbed life-lows for many days. While SBI made a claim of Rs 967 crore from the once largest airline (Rs 505 crore in working capital loans, and an overdraft of Rs 462 crore; apart from a term loan of Rs 1,292 crore), it owes over Rs 8,500 crore to 25 other financial creditors and over Rs 13,000 crore to hundreds of vendors and the 23,000-odd employees. The airline formally stopped flying on April 17 after being on the verge since late last year and banks voted for bankruptcy on June 17. The NCLT tribunal comprising VP Singh and Ravikumar Duraisamy set a 90-day deadline to the resolution professional--Ashish Chhauchharia of Grant Thornton to conclude the resolution process, even though the bankruptcy law allows 180 days for the same, ...
India emerges as top overseas market for BBC News
India has emerged as the top overseas market for BBC News, with a 20 million hike in audience reach to hit 50 million in 2018, according to latest figures released in London. The Global Audience Measure (GAM), an annual update of numbers consuming the British Broadcasting Corporation (BBC) output weekly, found that the UK's public broadcaster hit a new high of 426 million a week an increase of 50 million (13 per cent). "Indian audiences are very important to the BBC and we're pleased that the results and growth reflect our ongoing investment and commitment to providing Indians with access to impartial and trusted global news," said Jamie Angus, Director of the BBC World Service Group. India, where BBC News now operates in nine languages, is joined by Kenya and the US as the fastest growing regions for the broadcaster. BBC News registered an audience of 394 million globally, a rise of 47 million, with BBC World Service in English, and 42 languages, account for 319 million of that ...
Sundaram Finance to acquire BNP stake in two JVs for Rs 1,000
Non-banking finance company Sundaram Finance Ltd Thursday said it has reached agreements with its partner BNP Paribas for acquiring stakes held by the latter in their two joint venture companies for a total consideration of around Rs 1,000 crore. Subject to necessary regulatory approvals, the entire 49 per cent equity stake held by BNP Paribas Securities Servies in Sundaram BNP Paribas Fund Services Ltd would be acquired for Rs 15 million (Rs 1.5 crore). Similarly, the 49.9 per cent stake of BNP Paribas Personal Finance in Sundaram BNP Paribas Home Finance Limited would be acquired for about Rs 999.66 crore, according to NSE filings by the city-based Sundaram Finance Ltd. The sum of total acquisitions is around Rs 1,000 crore. Following the acquisitions, the two joint ventures would become wholly owned subsidiary of Sundaram Finance. The acquisitions were subject to approval by the Securities and Exchange Board of India and likely to be completed by next month. Sundaram ..
Fitch Affirms Bharti Airtel at 'BBB-' with stable outlook
Ratings firm Fitch Thursday affirmed Bharti Airtel's credit rating at 'BBB-' with stable outlook, citing around 31-33 per cent revenue market share despite intense competition and expectations of recovery in its mobile business. "Bharti's ratings are supported by its diversified and integrated business profile, with operations spanning the mobile, fixed-line, digital TV, tower and enterprise sectors in India as well as mobile operations in 14 African markets. It has held on to its Indian mobile revenue market share of around 31-33 per cent despite intense competition," Fitch said in a statement. BBB' ratings indicate that expectations of default risk are currently low. The capacity for payment of financial commitments is considered adequate, but adverse business or economic conditions are more likely to impair this capacity. The suffix minus indicates chances of a rating downgrade. For stable outlook, it said that it expects recovery in Bharti Airtel's Indian mobile segment and ...
ETF Securities Australia launches first Indian ETF
ETF Securities Thursday launched the first Indian ETF in Australia, and Reliance Nippon Life Asset Management Ltd (RNAM) has entered into an arrangement with the former to provide advisory services to investors. Listed on the Australian Securities Exchange with the code NDIA, the ETF will provide Australian investors a unique opportunity to tap into the world's fastest-growing major economy, RNAM said in a statement. NDIA tracks India's Nifty 50 Index, which holds the country's fifty-biggest companies listed on the National Stock Exchange (NSE), it said. It accounts for 13 sectors representing about 66.80 per cent of the free float market capitalisation of the stocks listed on the NSE, it added. "This product offers investors the chance to gain exposure to a USD 2.6-trillion economy that still has tremendous potential to grow as India reaps the benefits of structural reforms," ETF Securities Australia Head Kris Walesby said.
Oil prices jump 6% as Trump says Iran made 'very big mistake'
Oil prices jumped Thursday on rising US-Iran tensions, with gains accelerating on a cryptic tweet by US President Donald Trump after Iranian forces shot down a US spy drone. "Iran made a very big mistake!" Trump tweeted in his first public reaction to the strike. Near 1505 GMT, US benchmark West Texas Intermediate climbed 6.3 per cent to USD 57.13 a barrel, while Brent futures in London gained 4.7 per cent to USD 64.69 a barrel.
Sebi bars trading members from pledging certain securities of clients
Trading members have been barred from pledging to banks and NBFCs the securities of clients lying in certain accounts even with their authorisation, with markets regulator Sebi putting in place stricter norms. The latest requirements, which also come against the backdrop of crisis in the NBFC sector, would be effective from September 1. This would be applicable for clients' securities lying with the Trading Member (TM)/ Clearing Member (CM) in client collateral, client margin trading securities and client unpaid securities accounts. "Securities lying with TM/CM in client collateral account, client margin trading securities account and client unpaid securities account shall not be permitted to be pledged/transferred to Banks/NBFCs for raising funds by TM/CM," the regulator said in a circular. Besides, "with regard to securities that have not been paid for in full by the clients (unpaid securities), a separate client account titled - client unpaid securities account - shall be opened ..
Sri Lanka in talks with China for USD 1 billion loan
Sri Lanka is seeking a loan of nearly USD 1 billion from China for energy and highways as the island recovers from the devastating Easter Sunday bombings, the finance ministry said Thursday. Talks are underway with China's Asian Infrastructure Investment Bank (AIIB) to raise the new loan in addition to the USD 1.2 billion obtained from international agencies this year, the ministry said. "We have been discussing with the AIIB to obtain nearly an additional USD 1,000 million for further development of the Power and Highway sectors," the ministry quoted Finance minister Mangala Samaraweera. Sri Lanka's former government borrowed heavily to rollout ports, highways and railroads, but several ambitious infrastructure projects ended up as white elephants and left the country facing a mountain of debt -- mainly to China. Unable to service its loans, the government of Prime Minister Ranil Wickremesinghe leased a Chinese-built port at Hambantota to a Beijing company for USD 1.12 billion in ...
NCLAT directs NCLT-Kolkata to hear insolvency plea against Duncans Industries
The NCLAT Thursday set aside orders of the NCLT Kolkata-bench, and directed it to hear the insolvency plea against Duncans Industries afresh filed by A J Agrochem, an operational creditor of the tea firm. Allowing the petition of Agrochem, a two-member NCLAT bench headed by Chairman Justice S J Mukhopadhaya has directed the National Company Law Tribunal (NCLT) to hear its plea and pass an appropriate order. On October 5, 2018 the NCLT had rejected the insolvency plea on the ground that the provisions of the IBC are not applicable unless the Operational Creditor "seeks consent of the Central Government to start the Corporate Insolvency Resolution Process" in view of Section 16G(1) (c) of the Tea Act, 1953. "We set aside the impugned order dated October 5, 2018 and remit the case to the Adjudicating Authority, Kolkata Bench, (NCLT) Kolkata to pass appropriate order under Section 9 of the I&B Code after notice and hearing the parties," the National Company Law Appellate ...
BoE warns risk of no-deal Brexit has increased
The prospect of Britain crashing out of the European Union without a deal has risen since last month, the Bank of England warned Thursday, as it kept interest rates unchanged. "Domestically, the perceived likelihood of a no-deal Brexit has risen" since May, the BoE said in a statement after its Monetary Policy Committee (MPC) kept the central bank's main borrowing cost at 0.75 percent. "Since the Committee's previous meeting... downside risks to growth have increased. Globally, trade tensions have intensified," said the BoE, whose Governor Mark Carney is set to step down on January 31, having extended his tenure twice owing to Brexit uncertainty. "As expected, recent UK data have been volatile, in large part due to Brexit-related effects on financial markets and businesses," it added. The central bank on Thursday downgraded its forecast for second-quarter UK economic growth to zero from 0.2 percent. The UK's "economic outlook will continue to depend significantly on the nature and ...
AU Small Finance Bank to raise up to Rs 500cr via bonds
AU Small Finance Bank said Thursday it will raise up to Rs 500 crore by issuing bonds. The money will be raised in one or more tranches up to Rs 500 crore, it said in a regulatory filing. The board of directors at their meeting held on Thursday considered and approved to augment the capital by an issue of Basel III compliant, rated, unlisted, tier II, unsecured non-convertible redeemable debentures, the filing said. Shares of the company closed 1.06 per cent down at Rs 674.05 on BSE.
