Sebi makes investing in mutual funds cheaper, caps expense ratio at 1.05%
The Securities and Exchange Board of India (Sebi) on Tuesday announced major changes to the fee structure for the Rs 25-trillion mutual fund (MF) industry, a decision that will hit the profits of asset management companies (AMCs) but result in savings for investors. The regulator has capped the so-called total expense ratio (TER) for fund houses with equity assets up to Rs 500 billion at 1.05 per cent, down from as much as 1.75 per cent charged earlier. AMCs with lower assets under management (AUM) will be allowed to charge a higher TER, based on slabs.
Infosys loses arbitration case against Rajiv Bansal over severance package
Infosys, the country’s second-largest information technology services firm, has lost an arbitration battle against its former chief financial officer Rajiv Bansal over his severance package. The arbitration tribunal has directed the IT firm to pay Bansal the pending amount of Rs 121.70 million with interest. Infosys’s counterclaim for refunding the previously paid severance amount of Rs 52 million has also been rejected. Law experts and corporate governance professionals are of the opinion that Infosys has a limited scope of contesting the award in a higher court, as the company will have to convince the court with fresh reasons for admissibility of the case.
RHC holdings case: Daiichi moves NCLT seeking stay on insolvency proceedings
Japanese drug major Daiichi Sankyo, which is in court to recover Rs 3,500 crore from former Ranbaxy promoters Malvinder and Shivinder Singh as part of the arbitration award by a Singapore tribunal, on Tuesday moved the National Company Law Tribunal (NCLT) to stay the insolvency proceedings against RHC Holding initiated by HDFC Bank. RHC Holding is the holding company through which the Singh brothers had made the sale of Ranbaxy to Daiichi. A two member NCLT bench asked both RHC Holding and its lender HDFC Bank to file a reply on the matter within a week. The matter will next be heard on October 4.
PFC files insolvency plea against Rattan India Power
Power Finance Corp (PFC) has filed an insolvency plea against Rattan India Power, formerly known as Indiabulls Power, at the National Company Law Tribunal (NCLT) to recover the unpaid loans. A two-member Bench of NCLT on Tuesday adjourned the matter to November 26 as the Supreme Court has ordered status quo in insolvency pleas against power companies. The apex court, had in an order passed on September 11, asked the banks not to file any insolvency cases till November when it would hear the matter.
CCI slaps 38-cr penalty on 18 sugar mills and two trade bodies for rigging bids for ethanol blending
The Competition Commission of India (CCI) has imposed a ₹38 crore penalty on 18 sugar mills and two trade associations, ISMA and EMAI, for rigging bids in joint tenders floated by public sector oil marketing companies (OMCs). The case pertains to the notification issued by the Petroleum Ministry in 2013 mandating 5 per cent blending of ethanol with motor spirit or gasoline. Per the notification, the OMCs — Indian Oil, Hindustan Petroleum Corporation and Bharat Petroleum Corporation — had invited quotations from alcohol manufacturers for supply of ethanol through a joint tender dated January 2, 2013.
IL&FS Transportation Network to get Rs 4.25 bn compensation from NHAI
IL&FS Transportation Networks said Tuesday state-run NHAI would pay it a compensation of Rs 4.25 billion for losses suffered by it due to cost overrun in a project in Uttar Pradesh. NHAI and IL&FS Transportation Networks have reached a settlement over various claims filed against NHAI in relation to the project, the company said in a BSE filing. IL&FS Transportation Networks said Tuesday state-run NHAI would pay it a compensation of Rs 4.25 billion for losses suffered by it due to cost overrun in a project in Uttar Pradesh. NHAI and IL&FS Transportation Networks have reached a settlement over various claims filed against NHAI in relation to the project, the company said in a BSE filing.
SC asks Numetal to establish subterfuge charge against ArcelorMittal in divesting shares
The Supreme Court Tuesday asked Russia’s VTB Bank-promoted company NuMetal to establish that there was “subterfuge” on part of its rival bidder ArcelorMittal in divesting its shares in two debt-ridden firms before bidding for Essar Steel. The observation by a bench of Justices R F Nariman and Indu Malhotra came when NuMetal accused steel and mining major ArcelorMittal of cheating Indian banks of Rs 7,000 crore owed by Uttam Galva Steels Ltd and KSS Petron by selling its shares just before for Essar Steel.
About the Author
