Insolvency proceeding: JSW Steel bid for Bhushan Power is lenders’ top pick
Lenders to Bhushan Power and Steel have zeroed in on JSW Steel as the most preferred bidder to take over the near-bankrupt company. The Sajjan Jindal-led steelmaker has offered to pay Rs 19,350 crore to lenders of Bhushan Power against their total outstanding of Rs 47,000 crore and Rs 350 crore to the operational creditors in lieu of their admitted claims of Rs 700 crore. Bankers present at the 13-hour-long meeting of the committee of creditors (CoC) held on August 14 said JSW Steel’s bid was higher by Rs 2,700 crore than that of Tata Steel and better by Rs 850 crore compared with the UK-based Liberty House’s cumulative offer of Rs 18,850 crore.
Cosmos Bank fraud: NPCI says its systems fully secure
The National Payments Corporation of India (NPCI) today said its systems are “fully secure” and the cyber fraud of more than Rs 90 crore at Pune-based Cosmos Bank happened due to a malware-based attack on the lender’s IT system. Hackers managed to siphon off over Rs 90 crore through a malware attack on the server of the bank and cloning thousands of debit cards, Cosmos Bank Chairman Milind Kale had said. The fraudulent transactions were carried out on August 11 and August 13 and the malware attack by the hackers originated in Canada, he said.
Sebi plans to stipulate framework for timely disclosure of loan default
Markets regulator Sebi is looking to stipulate a framework for timely and detailed disclosures of loan defaults by listed entities to enhance transparency. Several companies and rating agencies have come under the regulatory scanner for failing to make timely disclosure about the loan default risks. Tightening of the disclosure norms is aimed at helping banks to recognize their stressed assets as non-performing more uniformly and enhance transparency in the securities market. “Sebi aims at examining stipulation of timely and detailed disclosures pertaining to defaults on debt obligations by listed entities to enhance transparency,” the regulator said in its annual report for 2017-18.
BSE to launch liquidity enhancement plan on single stock options, index options from Sep
Leading stock exchange BSE will launch liquidity enhancement scheme on monthly single stock options and index options from next month. Under the liquidity enhancement scheme (LES), brokers and other market intermediaries are given incentives for a specified period of time to bring in liquidity and generate investor interest in securities which have limited trading activity. “The exchange shall be launching the liquidity enhancement scheme on monthly single stock options and index options of equity derivative segment with effect from September 1, 2018,” BSE said in a notice.
Lenders can sell assets of personal guarantors under IBC: Apex court
The Supreme Court on Tuesday ruled that banks can sell off assets of personal guarantors even when corporate resolution proceedings are on against the corporate debtor under the Insolvency and Bankruptcy Code. Setting aside the order of the NCLAT that held that the personal guarantors, who are generally promoters, are also entitled for protection like corporate guarantors under the moratorium declared against the ‘corporate debtor’ under IBC Section 14, a bench led by Justice RF Nariman said Parliament specifically didn’t provide for any moratorium along the lines of Section 22 of the Sick Industrial Companies (Special Provisions) Act, 1985 while enacting the Code’s Section 14.
Stressed power assets: RBI cites High Court jurisdiction issue
The Reserve Bank of India (RBI) is understood to have raised the issue of the Allahabad High Court’s jurisdiction in regard to a plea against the central bank’s February 12 circular, mandating a one-day default trigger for resolution of stressed power assets. While the central bank reiterated its stance on Tuesday that the circular cannot be relaxed exclusively for the power sector assets, the court listed the next hearing on August 20. The RBI wants all similar cases pending before high courts of Delhi, Allahabad and Madras transferred to the Supreme Court on the grounds that there is a likelihood of conflict of judicial decisions that would lead to “confusion and uncertainty for lenders, borrowers, defaulters and other involved parties”.
Cyrus Mistry case: NCLAT may pronounce interim order on August 20
The National Company Law Appellate Tribunal (NCLAT) is likely to pronounce an interim order on August 20 on Cyrus Mistry’s plea seeking an interim stay on the proposed conversion of Tata Sons into a private company from a deemed public limited firm now. The appellate tribunal reserved its order in the matter on Tuesday after the conclusion of the arguments. It will decide at a later stage the Cyrus Investments’ case challenging the July 9 order passed by the National Company Law Tribunal (NCLT), Mumbai, dismissing Mistry’s plea challenging his removal as chairman of the company.
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