CoC can withdraw insolvency process if 90% votes for such a move: IBC panel
Ambiguity surrounding out-of-court settlements of insolvency cases, such as the one for Binani Cement, might soon be a thing of the past. A high-level panel reviewing the Insolvency and Bankruptcy Code (IBC) has recommended that the committee of creditors (CoC) concerned should be give the powers to make such a move if 90 per cent of its members are in favor of it, even if the case has been sent to the National Company Law Tribunal (NCLT). “The review panel unanimously agreed that relevant rules could be amended so that insolvency cases can be withdrawn even after they are admitted to the NCLT if the CoC approves it by a vote shares of 90 per cent,” said a source.
PNB scam fallout: NCLT removes constraint on Firestar directors
The National Company Law Tribunal’s (NCLT’s) Mumbai bench on Monday granted the independent directors of Firestar International a relief in accessing their financial resources. The Bench of Judges B S V Prakash Kumar and Duraiswamy have vacated the restraint order of February 23. Firestar’s independent directors, Gautham Mukkavilli, a former executive at PepsiCo; Suresh Senapaty, who used to work with Wipro; and Sanjay Rishi, who was with American Express, had asked the court to grant them access to their financial assets. They said their role in the company was limited and they had little powers to oversee the auditing or operational functions.
RBI lets banks spread out provisioning for bond market losses over 4 quarters
The Reserve Bank of India (RBI) on Monday allowed banks to spread out the provisioning to cover losses on their government bond portfolio across four quarters, in a relief for lenders who would have otherwise faced an immediate hit to their bond portfolio due to rising yields. This dispensation to spread the so-called mark-to-market (MTM) provisioning is available for the quarters ending December 2017 and March 2018. Banks using such an option will have to make the disclosure in their notes to accounts of the quarterly results, the RBI said. The disclosure should contain details such as how much provisioning is done and the balance that is required to be done.
What is Aadhaar Virtual ID and how you can generate one
Don’t want to give your Aadhaar number out? Worried your 12-digit number and data might be misused or stolen? Well, for those of you don’t want to share your unique biometric number now have an alternative in the form of the Aadhaar Virtual ID (VID). This VID will allow you to authenticate transactions and e-know-your-customer (KYC) services instead of providing your Aadhaar number, to both private and government institutions. The Unique Identification Authority of India (UIDAI), tweeted on Monday that it has launched the facility and “soon, service providers will start accepting VID in place of Aadhaar number. For now, you can use this for online address update in your Aadhaar.”
First blockchain network: Online bill discounting exchanges implement tech
India’s first blockchain-based network went live last week, when three online bill-discounting exchange platforms came together and implemented a solution for their operations. Three platforms that offers Trade Receivables Discounting System (TReDS) — Receivables Exchange of India, A.TReDS, and M1xchange — implemented the use of blockchain in the enterprise financial segment. The Reserve Bank of India (RBI) had introduced TReDS to facilitate financing trade receivables of micro, small and medium enterprises (MSMEs) from corporate buyers through multiple financiers.
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