Government makes FPI’s job easier, introduces one form for registration, bank a/c, demat and PAN
The government has introduced a single application form for foreign investors to enter into the domestic capital market as part of the exercise to improve ease of doing business. Earlier, foreign portfolio investors (FPIs) had to file a separate form to register themselves with the market regulator Sebi.Besides, they had to approach bank for opening bank account, income tax department for PAN (Permanent Account Number) and market intermediaries for DEMAT account. Finance Minister Arun Jaitley in his 2017-18 Budget Speech had said a common application form for FPIs would be devised with a view to enhance operational flexibility and ease of access to Indian capital markets.
Stressed power assets: 180-day deadline breach not end of road, say bankers
Banks may breach the 180-day deadline of August 27 for firming up a resolution plan on big-ticket stressed accounts.But that is not the end of the road as some aspects may give them a breather, bankers and experts feel.The much-awaited Allahabad High Court judgment in case of stressed power assets, less time taken for actual admission to bankruptcy court National Company Law Tribunal (NCLT) and the option to withdraw a case referred to NCLT with the consent of 90 per cent of lenders could ease the burden on lenders, especially public sector banks.
Liberty House plans to turn ABG Shipyard into steel plant
Liberty House, the London-based metals group founded by India-born billionaire Sanjeev Gupta, plans to build a steel plant in place of the existing ship-building facility if its bid to buy troubled ship maker ABG Shipyard is accepted. Gupta’s Liberty House has placed a bid of ₹ 5,200 crore for ABG Shipyard, which owes close to ₹ 19,000 crore to creditors.In the three rounds of bidding held for this asset, Liberty House has emerged as the sole bidder. The company’s resolution plan for the ship builder is pending at the Ahmedabad bench of the National Company Law Tribunal (NCLT).
Patanjali Ayurved faces uphill task without Ruchi Soya
A fast-growing market for packaged edible oil is seeing two companies battle it out to acquire debt-laden edible oils and foods company Ruchi Soya Industries Ltd. Lenders will take a lower haircut than expected, adding to cases where the insolvency process has extracted value. Adani Wilmar Ltd is set to acquire RuchiSoya, paying a handsome sum for a business that will add to its market share for sure, but also keep Patanjali Ayurved Ltd from snapping at its heels.Adani Wilmar’s bid has been accepted but Patanjali Ayurved has appealed this decision in the bankruptcy court, according to news reports. How litigation affects the outcome remains to be seen.
Govt to make it compulsory for unlisted cos to issue shares in demat form
The government will soon make it mandatory for unlisted companies to issue new shares only in the dematerialised form, senior officials said, amid intensified efforts to fight the black money menace. Besides, the unlisted corporates would have to ensure that shares are transferred only in dematerialised (demat) or electronic form. Initially, these regulatory requirements, expected to be effective from the first week of October, would cover more than 70,000 public companies, two senior government officials told PTI.
Sebi plans ‘on tap’ bond market
‘Bond tap’, which gives corporates the flexibility to time the market, prune cost, and dramatically cut down on paperwork for raising money, will soon be a reality in India. Capital market regulator Sebi is preparing the ground to allow ‘on tap public issue of bonds’ — a mechanism that will let corporates use stock exchanges to sell bonds directly to investors, including retail investors, any time and as many times during a financial year, after filing a single prospectus.
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