Stressed Power Assets: No distress sale, says Centre
Stressed assets in the power sector would not be “sold for a song” as these projects would become viable with an upcoming surge in demand, power minister RK Singh said on Tuesday. A State Bank of India-led consortium of banks had identified as many as 11 stressed power projects with a combined capacity of 12,460 MW for possible takeover by new promoters under the so-called Samadhan scheme (see chart). Addressing the media, Singh said state-run Rural Electrification Corporation has also come up with a plan to revive stressed power assets and the finance ministry would consider this proposal as well.
Competition Commission orders probe against BCCI for ‘abuse of dominant position’
The Competition Commission has ordered a detailed investigation against the Indian cricket board BCCI for alleged abuse of dominant position with regard to running professional domestic cricket leagues in the country. The decision has come on a complaint filed by Pan India Infraprojects Pvt Ltd (formerly known as Essel Sports Pvt Ltd). In a 14-page order, dated June 1, the CCI said there is “prima-facie” a case of abuse of dominant position by the BCCI which is in violation of competition norms.
Sebi puts in place guidelines for preferential issue by InvITs
Market regulator Sebi today put in place a detailed framework for listed Infrastructure Investment Trusts (InvITs) to make preferential issue of units to institutional investors. Sebi said preferential issues need to be completed within 12 months from the date of passing of the resolution by InvIT’s unit holders. The units in a preferential issue would be offered and allotted to a minimum of two investors and a maximum of 1,000 investors in a financial year.
Emerging market blowout pressures Reserve Bank of India on rates
An emerging-market selloff that’s hit India hard presents its central bank with a choice: hold interest rates steady to keep the economy motoring or follow the example of the Philippines and Indonesia by rising to stem market pressure. The nation’s currency is down about 5% against the dollar this year and yields have spiked on government and corporate bonds. While those moves would argue for a rate increase, most economists aren’t convinced it will come on Wednesday. Of the 35 analysts surveyed by Bloomberg, 25 predict the monetary policy panel will hold the benchmark repurchase rate at 6%.
WhatsApp leak: Sebi to soon take action against market operators, companies’ senior staff
Sebi will soon take action against some market operators and senior staff members of about a dozen listed blue-chip firms for their alleged involvement in leak of price-sensitive information through WhatsApp. The companies may also face censure action by the market watchdog for alleged lapses in safeguard mechanism to check leak of unpublished price sensitive information (UPSI), including financial results before they were made public for all investors, regulatory sources said. The regulator is close to completing its probe into the matter, including for suspected unlawful gains through insider trading on the basis of leaked information, and is collating the details it had sought from all concerned companies, the officials said.
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