Sebi seeks comments on fresh norms for fiduciaries
To check financial frauds, regulator Sebi has proposed a new set of norms for auditors and other fiduciaries working with listed firms, under which defaulters will face stringent penal actions, including ban from securities markets and disgorgement of fees. Those found guilty of providing wrong audit or valuation reports would have to cough up any unlawful gains they might have made in the process. The proposed move assumes significance as the role of auditors and valuers has come under scanner in a number of high-profile cases such as the Satyam and Kingfisher frauds, as also the PNB scam, WhatsApp leak and the Fortis matter in the recent past.
ICICI Bank launches external probe into NPA ‘irregularities’
ICICI Bank has launched a second external probe to examine allegations of irregularities in 31 loan accounts raised by a third whistleblower complaint, said two people familiar with the matter. The bank has hired white-collar crime specialist law firm Panag and Babu to investigate the latest matter, said one of the people cited above. The firm will look into allegations that ICICI Bank inflated profits by at least $1.3 billion over eight years by delaying provisioning for 31 nonperforming asset (NPA) accounts. This will be independent of the probe being conducted by retired Supreme Court judge BN Srikrishna, said the people cited above.
India raises trade deficit issue with China at WTO
India has flagged concerns of its large trade deficit with China, visa restrictions for Indian professionals and the challenges faced in exporting IT services, meat, rice and medicines to Beijing at the World Trade Organization (WTO). Trade is skewed in favour of China at a trade surplus of $63 billion. Bilateral trade was $89.6 billion in 2017-18. “This large and growing deficit is difficult for India to sustain, and serious efforts need to be made to remedy the situation,” India said in its submission to WTO, commenting on China’s trade policy, which ET has seen. Citing complex requirements for participating in contracts of Chinese state-owned enterprises (SOE) and issues related to qualification requirements, licensing and taxation, Delhi has sought transparency in export of agriculture products including bovine meat and providing services such as IT.
Minimum public shareholding norm: Centre may seek deadline extension from Sebi for PSBs
The finance ministry may approach markets regulator Sebi to seek relaxation on the minimum 25% public shareholding norm for some public sector banks (PSBs). There are 13 PSBs, including IDBI Bank and Bank of India, in which the Centre’s holding is more than 75%. If these banks are unable to meet the norm by the August deadline, the department of financial services will have to approach Sebi for exemption, sources said. Listed public sector undertakings (PSUs), including banks, have already been provided one year extension till August 21 to comply with the norms. Due to successive capital infusion in the NPA-ridden PSBs, the government holding in them has increased and the public float deferred in the last two years.
Ten-member panel to review penal provisions under companies law
The Ministry of Corporate Affairs (MCA) has constituted a 10-member committee to review the penal provisions under the companies law and examine decriminalization of certain offences, a government release said. The committee will be headed by MCA secretary Injeti Srinivas. The members include Kotak Mahindra Bank MD Uday Kotak, former Ficci president Sidharth Birla, former Lok Sabha secretary general TK Vishwanathan, law firm Shardul Amarchand Mangaldas executive chairman Shardul S Shroff and AZB & Partners founder managing partner Ajay Bahl. The committee will submit its report to the government in 30 days, the release said.
NCLAT stays July 16 revival meet of Gujarat NRE Coke
A stay order ahead of a crucial meet of the lenders and shareholders of Gujarat NRE Coke Ltd has cast shadow on the future of the debt-laden firm which found no takers under the IBC. The company said Jindal Steel & Power Ltd, an unsecured creditor with only 0.5 per cent of the total debts of Gujarat NRE Coke, has obtained an ex-parte order from National Company Law Appellate Tribunal (NCLAT) on July 12 to stay the meetings which were scheduled on July 16. Gujarat NRE Coke had failed to get any suitor for resolution under the Insolvency and Bankruptcy Code (IBC) as an ongoing concern as no plan was accepted by its secured creditors.
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