FDI likely to rise further after GST: Moody’s
India is likely see increased foreign direct investment (FDI) inflows on the back of reforms such as introduction of the goods and services tax and the bankruptcy code, international ratings agency Moody’s said in a report on Monday. “Combined with reforms such as the introduction of a goods and services tax, which lowers the cost and complexity of doing business, and a simplified and clarified bankruptcy code, FDI is likely to rise further,” the agency said in its report on how structural reforms by Asia Pacific sovereigns could become more effective from stronger global demand.
NCLT orders StayZilla into insolvent liquidation in case file by vendor Jigsaw
The National Company Law Tribunal had ordered initiation of insolvency proceedings against hotel and homestay aggregator StayZilla, the consumer internet start-up that sparked national debates on the perils of entrepreneurship in India after its founder Yogendra Vasupal was put in jail over a commercial dispute with an advertisement vendor. The Tribunal had considered the arguments of StayZilla that pending judgment in a criminal case filed against founder Vasupal, the application for insolvency proceedings by Jigsaw should not be considered. But, the NCLT reasoned that Stayzilla had failed to show how the pending criminal case would qualify for consideration under Sub section (6) of Section 5 of the Insolvency and Bankruptcy Code, 2016. The said section refers to an existing dispute that a vendor and a client before a demand notice is sent under Section 8 of the Insolvency and Bankruptcy Code. “But, he [StayZilla] failed to point out any dispute could come under the ambit of the “disputes, if any”..”
Sebi allows REITs, InvITs to raise funds through bonds
With a view to boosting infrastructure investment in the country, markets regulator Securities and Exchange Board of India (Sebi) on Monday allowed Infrastructure Investment Trusts (InvITs) and Real Estate investment Trust (REITs) to raise capital by issuing debt securities. In addition to this, the market regulator also introduced the concept of strategic investor for REITs on the same lines as with InviTs. It also allowed single asset REIT on similar lines of InvIT.
Competition Commission admits petitions against NIIT Limited
The Competition Commission of India (CCI) has admitted petitions against skills and talent development company NIIT Limited for alleged unfair practices employed against its business partners. These petitions were filed by a group of NIIT franchisees in Hyderabad, who accused the company of using its dominant position to exploit them by way of collecting higher revenue share and through other unfair trade practices.
ICICI Lombard IPO subscribed 98% on Day 2
The initial public offering (IPO) of general insurance firm ICICI Lombard General Insurance Co. Ltd, was subscribed 98% on Monday, the second day of the share sale, data from stock exchanges showed. ICICI Lombard is a joint venture between ICICI Bank and Canada’s Fairfax. As of 5pm, the portion of ICICI Lombard shares reserved for institutional investors was subscribed 2.37 times, while those of non-institutional and retail investors saw 10% and 62% subscriptions respectively.
Three directors step down from Hotel Leelaventure board
Hotel Leelaventure on Monday said its three directors, including two nominees of JM Financial Asset Reconstruction Co., have resigned from its board. The company’s board of directors at their meeting held on Monday has accepted resignations of Vaddarse Prabhakar Shetty, Anil Ramchand Bhatia and Navnit Kulwantsingh Batheja with immediate effect, Hotel Leelaventure said in a filing to BSE.
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