Centre may ask RBI to ease prompt corrective action framework
The Centre may ask the Reserve Bank of India (RBI) to consider revising the prompt corrective action (PCA) framework so that a complete restriction on fresh lending does not affect credit flow to business, particularly small and medium enterprises. Piyush Goyal, who recently assumed charge as finance minister till Arun Jaitley recovers from an operation, held a review meeting with the top management of 11 public sector banks under the PCA framework on Thursday. Officials of the department of financial services also held a one-on-one meeting with the executives of the banks to take stock of their plans.
Reliance Communications, Ericsson in talks to settle dues outside NCLT
Reliance Communications and Ericsson are in advanced talks to settle their dispute over the Telco’s dues outside the insolvency and bankruptcy proceedings, said people aware of the matter, a move that drove the carrier’s shares as much as 70% higher on Thursday. “Right now, talks are on but no formal proposal has been made,” one of the people said. Another person said, “The amount to be paid is being discussed for settlement.” Swedish equipment maker Ericsson has sought an undertaking that State Bank of India, one of RCom’s lenders, will pay up the dues if the Anil Ambani-controlled telco does not clear the settled amount, one person said.
Nirav Modi scam: Sebi raps PNB for disclosure lapses in quarterly results
The Securities and Exchange Board of India (Sebi) has rapped state-owned Punjab National Bank (PNB) over compliance with disclosure related norms. The beleaguered lender on Thursday informed investors, through a stock exchange notification, about a warning letter dated May 15 from Sebi regarding disclosures made in the developments pertaining to the Nirav Modi group and Gitanjali group fraud. “There are delays of 1-6 days by PNB in making disclosures to the stock exchange pertaining to filing of the reports, complaints with the Reserve Bank of India (RBI) and Central Bureau of Investigation (CBI),” the regulator has written to the lender, charging it with non-compliance of several clauses in the Listing Obligations and Disclosure Requirements (LODR).
Bidding wars: Numetal reveals Rs 370 billion new offers for Essar Steel
VTB-backed Numetal on Thursday disclosed in the National Company Law Appellate Tribunal (NCLAT) that its bid value in the second round of bidding for Essar Steel is Rs 370 billion, short of double its first offer of Rs 190 billion, and about Rs 65 billion higher than ArcelorMittal’s bid in the first round. If the bid values of the two companies are compared, Numetal’s bid value in the second round at Rs 430 billion (including capital infusion) is higher than ArcelorMittal’s first offer by Rs 45 billion. ArcelorMittal’s bid in the second round, however, is not known.
SC refuses to stay RBI virtual currency order
The Supreme Court on Thursday refused to stay the Reserve Bank of India’s decision that mandated banks, e-wallets, and payment gateway providers to withdraw support for crypto currency exchanges and other businesses dealing with virtual currencies. However, it allowed crypto currency exchanges, their shareholders, traders and other individuals to present their cases within two weeks to the RBI, which will look into the issue in accordance with the law.
RBI tweaks norms for setting up of IFSC Banking Units
Modifying the norms for setting up IFSC Banking Units, RBI said today that the parent bank will be required to provide and maintain at all times a minimum capital of USD 20 million to its IBU. In April 2015, the Reserve Bank had formulated a scheme for setting up of International Financial Services Centers (IFSC) Banking Units (IBUs) by banks in IFSCs. RBI said modification has been made based on suggestions from stakeholders to consider minimum prescribed regulatory capital at the parent level rather than at the IBU level.
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