Investors in a bind as banks pull the plug on bitcoin accounts
The uncertainty over regulating crypto-currencies seems to have left hundreds of Indian investors in the lurch. A number of retail investors who had bought bitcoins over the past few months are now stuck as some banks are not allowing them to deposit money earned from trading on bitcoin exchange platforms. These investors told BusinessLine that they are unable to either trade on some of the bitcoin exchanges or withdraw the invested amount into their linked bank accounts.
Racing against Flipkart, Amazon pumps record capital into India
Amazon has pumped record capital into its main India unit this financial year, adding crucial firepower with its latest infusion of Rs 1,950 crore as the global online retail giant accelerates efforts to race past larger domestic rival Flipkart. Overall, Amazon Seller Services has received Rs 8,150 crore, or about $1.3 billion, so far in 2017-18 from its US parent, as per filings submitted with the Registrar of Companies. The latest capital infusion is the fourth since Flipkart raised $4 billion (about Rs 25,380 crore) around the middle of last year.
ArcelorMittal, Japan’s Nippon Steel mulling joint bid for Essar Steel
Two global steel giants — ArcelorMittal and Nippon Steel — are teaming up to jointly bid for bankrupt Essar Steel, said two senior executives who did not want to be named. The asset is expected to go under the hammer in the second week of February. ArcelorMittal and Nippon Steel had originally planned to submit independent bids for Essar Steel, which is among the five steel companies up for sale following RBI’s directions to refer 12 companies to bankruptcy court in June last year. The other key contenders for Essar Steel are Tata SteelBSE 2.49 %, Vedanta Resources and the promoters of Essar, the Ruias, in partnership with Russia’s VTB Capital.
Brokers told to collect more margin money as stocks climb higher
The stock market’s record-breaking run has put the capital market regulator and stock exchanges on high alert. Exchanges, at the direction of the Securities and Exchange Board of India (Sebi), are asking brokers to collect higher margins from big clients including foreign institutions, rich individuals and proprietary desks having sizeable positions in futures and options. The regulator is worried about the near-record position buildup in equity derivatives that poses a potential systemic risk. Exchanges have sent letters to brokers in the past four days asking them to collect extra deposits from clients with a high exposure to derivatives.
Resolution plans under IBC may need approval of fewer lenders
The government is debating whether to lower the approval threshold for resolution plans under the Insolvency and Bankruptcy Code (IBC) in a move aimed at preventing too many insolvent companies from going into liquidation. More than 75% of creditors currently have to agree to a resolution plan, implying that just over 26% can reject it and force a company into liquidation. The government feels liquidation should be the last resort and is considering whether such plans can be approved by a two-thirds majority or even a simple majority.
Rejig in sales strategy: E-commerce discounts on iPhones may soon be over
E-commerce discounts on iPhones may soon come to an end following a sales shakeup by new country boss Michel Coulomb, said people with knowledge of the matter. Apple India has more than halved distributor margins to 1.7-2.5% and given distributors specific areas of responsibility to protect those margins. Before this, they were free to sell to any trade partner, which meant stock could be sold at a discount online by giving up some of those fatter margins.
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