PNB scam: Govt. moves NCLT to freeze assets of Nirav Modi, Choksi firms
The Ministry of Corporate Affairs (MCA) on Friday filed a petition against Gitanjali Gems, a listed firm promoted by Mehul Choksi, and other companies belonging to both Choksi and Nirav Modi in the National Company Law Tribunal (NCLT), Mumbai. The petition sought attachment of all assets of the 114 companies promoted by the two jewelers and their families, who are alleged beneficiaries in the Rs 114 billion Punjab National Bank (PNB) fraud case. According to a ministry source, it has sought ex-parte relief, which is typically meant for extraordinary circumstances. MCA officials along with the ministry’s joint legal director were in Mumbai and requested the tribunal to intervene in the matter on an urgent basis.
RBI announces ombudsman scheme to address complaints against NBFCs
The Reserve Bank of India (RBI) on Friday brought non-banking financial companies (NBFC) under an Ombudsman Scheme, by which an aggrieved person can file a complaint against an NBFC. The scheme, for now, will cover NBFCs that take deposits and will later include those with an asset size of Rs 1 billion and above with a customer interface. The scheme will not be applicable to infrastructure-related NBFCs and NBFCs under liquidation. According to the RBI, there are 168 deposit-taking NBFCs out of the more than 11,500 registered with the regulator. There can be complaints about interest payment, deposits, cheques, or “undue” charges. Complaints can also be raised for not intimating customers in regional languages they understand.
Sebi orders HDFC Bank to probe WhatsApp earning leak, strengthen system
The Securities and Exchange Board of India (Sebi) on Friday directed HDFC Bank Ltd to strengthen its existing systems and controls to prevent any leakage of unpublished price-sensitive information so that no entity is able to breach Sebi’s insider trading norms and make illegitimate gains. Sebi ordered the country’s largest private sector lender to submit a report on its present systems and controls and the details of the entities responsible for monitoring such systems. The bank has been ordered by the market regulator to conduct an internal inquiry into the leakage of unpublished price-sensitive information relating to its financial figures, including non-performing assets (NPAs), and take appropriate action against those responsible for the same.
SC tells govt to set up panel to probe FDI violations, tax evasion
he Supreme Court on Friday asked the government to constitute an expert committee to look into the allegations of FDI violations, malpractices and massive tax evasion by multinational accounting firms (MAFs) including Pricewaterhouse Coopers (PwC) and its network audit firms. A bench led by Justice AK Goel also asked the three-member expert panel to file its report within three months on the issue including whether the statutory code of conduct for the chartered accountants requires any change or an appropriate legislation “so as to appropriately discipline and regulate these MAFs. Besides, the panel will also consider measures for effective enforcement of the FDI policy and the FEMA Regulations and also identify remedial measures to check such violations.
PNB fraud fallout: RBI tells banks to link SWIFT with CBS by 30 April
he Reserve Bank of India (RBI) has set 30 April as the deadline for banks to integrate SWIFT (Society for Worldwide Interbank Financial Telecommunication) with core banking solutions (CBS) as it looks to strengthen internal controls in banks following the Rs11,400 crore PNB fraud.“That (30 April) could be a deadline but it is an outer limit. Today, the urgency is such that everyone wants this project to be on fast track,” Usha Ananthasubramanian, managing director and chief executive officer of Allahabad Bank, and chairman of the Indian Banks’ Association (IBA), said on the sidelines of an IBA event on Friday.
Supreme Court puts the spotlight on audit firms
The Supreme Court on Friday put the spotlight on the Big Four multinational accounting firms, directing that a committee be set up to tighten regulatory oversight over them. The order issued by the apex court directed the Union government to constitute a three-member committee of experts to scrutinize the existing regulatory regime and propose changes if required. The ruling comes at a time when the role of auditors is already under scrutiny for their failure to detect the Rs11,400 crore fraud allegedly perpetuated by group firms of jewelers Nirav Modi and Mehul Choksi in collusion with officials of state-run Punjab National Bank (PNB).
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