Round Table Meet: NPA resolution to help consolidation in steel industry in 2018
Stating that India is moving closer to become the world’s second largest steel producer, steel minister Chaudhary Birender Singh said on Tuesday that the target of more than doubling domestic steel-making capacity to 300 million tons (MT) by 2030-31, as envisaged in the New Steel Policy 2017, could be met smoothly. However, he cautioned that Indian steel companies need to have raw material linkages at affordable prices in order to become globally competitive. “It is important to have some degree of predictability in iron ore prices,” he said, adding that a committee set up by his ministry was working on this issue.
Check NPAs above Rs 500 mn for possible fraud, alert CBI: Govt tells banks
Jolted by the Punjab National Bank fraud, the finance ministry on Tuesday directed managing directors of public sector banks to examine non-performing asset (NPA) accounts of more than Rs 500 million for possible fraud and report any cases of willful default to the Central Bureau of Investigation (CBI). The ministry also set a 15-day deadline for PSBs to put in place an effective system to address rising operational and technological risks. These directions are part of the reforms that the government had packaged with the recapitalization plan for banks. In a couple of tweets, Financial Services Secretary Rajiv Kumar asked banks to involve the Enforcement Directorate and the Directorate of Revenue Intelligence (DRI) for any violations of the Prevention of Money Laundering Act, the Foreign Exchange and Management Act, and export-import norms.
Sebi likely to accept Infosys consent plea in Rajiv Bansal case
The Securities and Exchange Board of India (Sebi) is likely to accept information technology major Infosys’ consent plea to settle charges of disclosure lapses pertaining to the severance package paid to former chief financial officer (CFO) Rajiv Bansal. According to sources, the matter involves “minor disclosure lapses”, which, according to Sebi rules, could attract a penalty of a mere Rs 800,000. The consent process had reached an advanced stage, and the regulator could issue an order announcing a consent settlement within a month, said a person privy to the development.
Probe NPAs of over Rs 50 crore; make plans to combat risks: Finmin to PSBs
Stung by the fraud at Punjab National Bank and more such cases being unearthed at other lenders, the government has ordered all state-run banks to examine non-performing loans of more than Rs 50 crore for any sign of similar wrongdoing. They have been given 15 days to prepare a “pre-emptive” action plan to address risks.
This raises the prospect of investigations in high-profile bankruptcy cases that are undergoing resolution, putting their promoters under the scanner if any scam is uncovered. The directive comes a day after PNBBSE -1.07 % revised its estimate of the fraud involving jewellers Nirav Modi and Mehul Choksi and their companies to Rs 12,622 crore from Rs 11,300 crore earlier.
PNB asks BDO to conduct forensic audit of Nirav Modi companies
Punjab National Bank (PNBBSE -1.73 %) appointed BDO to conduct a forensic audit of jeweler Nirav Modi’s companies, according to people directly briefed on the matter. The bank issued a formal appointment letter to the Belgium-headquartered audit firm on February 27 that was signed by PNB executive JK Gupta. Modi, his uncle Mehul Choksi and their companies have been accused of defrauding the bank of as much as Rs 12,700 crore.BDO was tasked with carrying out an audit of five Nirav Modi group entities–Firestar Diamond, Firestar International, Solar Export, Stellar Diamonds and Diamond R US.
Trai chief rejects Vittorio Colao’s criticism of India’s regulatory regime
Telecom regulator RS Sharma rejected criticism of the authority’s order on predatory pricing, saying India’s older operators are free to go to court against it. He pointed out that the telecom companies had done so previously and lost. Telecom Regulatory Authority of India (Trai) chairman Sharma also countered Vodafone Group CEO Vittorio Colao’s criticism of the country’s regulatory regime, saying it was doing everything it can toward ease of doing business and had adopted a light-touch approach. “The Trai regulation (on predatory pricing) is absolutely clear,” Sharma told ETon the sidelines of Mobile World Congress in Barcelona.
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