Reliance, Infosys, TCS to Airtel: Over 500 top companies need to split CMD post; here’s why
Reliance Industries, Infosys, TCS and Bharti Airtel are among the 291 listed companies that will have to appoint a non-executive chairperson on their boards by April 1, 2020 to comply with regulator Sebi’s directive and most of these firms will need to split the roles of chairman and managing director for compliance. Currently, many companies have merged the two posts as CMD (chairman-cum-managing director), leading to some overlapping of the board and management, which could lead to conflict of interest. Under the new Sebi norms, the top 500 listed entities will have to ensure that the chairperson is a non-executive director from April 1, 2020. It will eventually lead to a split in the post of chairman and managing director.
Regulating PSBs: House panel may favour more power to RBI
The parliamentary standing committee on finance may suggest giving more power to the Reserve Bank of India (RBI) to better regulate public sector banks (PSBs) that have come under heightened public scrutiny following a string of scandals, a source told FE. Last month, RBI governor Urjit Patel appeared before the panel, headed by senior Congress leader Veerappa Moily, and is reported to have sought more power to regulate PSBs as effectively as private sector banks. “Some of the members think the government should consider giving more power to the RBI if such a move can better prevent frauds at PSBs,” said the source. The committee will also push for better governance standards at PSBs. It will likely to submit a report on reforms in banking in a month. The panel could also express its concerns against arrests of bankers without credible evidence of wrong-doing, as any such move would hamper decision making.
Kalanithi Maran, KAL Airways to move Delhi HC for control of SpiceJet
Media tycoon Kalanithi Maran and his KAL Airways will be approaching the high court (HC) in Delhi for a direction to restore him as the promoter of SpiceJet. This comes after an arbitration tribunal rejected his claims on account of non-issuance of share warrants by the airline company. The tribunal, last week, ruled in favour of SpiceJet and its present promoter-chairman, Ajay Singh, saying non-issuance of the warrants could not be treated as a breach of their prior agreement. Sources close to Maran said they had partially won, as the tribunal also asked SpiceJet to refund Rs 5.79 billion, the subscription amount Maran made for warrants and preference shares (which if done would have amounted to 24 per cent of the equity).
After big rate cuts by GST Council, only 35 goods left in 28% tax bracket
The GST Council has pruned the 28 per cent slab by cutting tax rates on 191 goods over the last one year, leaving just 35 items, including AC, digital camera, video recorders, dishwashing machine and automobiles, in the highest tax bracket. There were around 226 goods in the 28 per cent category when Goods and Services Tax (GST) was implemented on July 1, 2017. Over the last one year, the Council, chaired by Union Finance Minister and comprising state ministers, has slashed rates in 191 items. The 35 goods, which will be left in highest slab once the new GST rates are implemented from July 27, also include cement, automobile parts, tyres, automobile equipments, motor vehicles, Yachts, aircrafts, aerated drinks, betting and demerit items like tobacco, cigarette and pan masala.
SBI, others to sign inter-creditor pact today
Many banks in the country are set to sign an inter-creditor agreement on Monday to deal with stressed assets after getting a conditional approval from the Reserve Bank of India over the terms of the agreement, senior bank officials said. CEOs of a few banks, led by State Bank of India (SBI), would sign the agreement, which would bind minority lenders in accepting a resolution plan of the majority of lenders in terms of value of the loan, to endorse it, the officials said. “The RBI nominee on the board of the banks has given conditional approval to the proposal,” one of them said. The banking regulator had earlier refrained from approving the proposal on concerns that it was contrary to its February 12 circular on resolution of bad debts, which said all lenders in a consortium should approve and implement a resolution plan within 180 days of default Even if one creditor disagrees, the loan should be referred to the bankruptcy court.
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