HCL Technology board clears up to Rs 40-billion share buyback plan
After Tata Consultancy Services (TCS), HCL Technologies, India’s fourth-largest IT services company, has also announced a share buyback programme. The Noida-headquartered company on Thursday said it had received its board’s approval to conduct a share buyback of up to 36.3 million equity shares worth up to Rs 40 billion. The buyback price of Rs 1,100 per share is at around 9 per cent premium over its current market price of Rs 1,010 at NSE at the close of trading session on Thursday. Currently, the promoter’s holding in the company stands at 60 per cent.
Companies fear RBI rule likely to rake up past violations
Many in the corporate world are shaken by Reserve Bank of India’s queries on foreign investments that companies have received over the years, the declarations they have to give along with the information, and the probable consequences of incorrect reporting. In the elaborate format given by the regulator, a senior company official — which is likely to be the company secretary or a director — will have to sign a declaration stating, “foreign investment received and reported now will be utilized in compliance with the provision of Prevention of Money Laundering Act 2002 (PMLA) and Unlawful Activities (Prevention) Act, 1967 (UAPA)”.
Panel proposes auction of NPA security receipts worth Rs 900000 crore
The committee on bad-loan resolution led by Punjab National Bank chairman Sunil Mehta has suggested a live auction mechanism to help banks free up security receipts worth Rs 90,000 crore in their investment books that can used to revive credit growth. ET has reviewed a copy of the recommendations that seek to achieve this through an asset trading platform (ATP) recommended under Project Sashakt, the broad contours of which had been announced on July 2. The above details weren’t made public at the time.
DoT rejects RCom’s complaint on discriminatory treatment
The Department of Telecommunications (DoT) has rejected a complaint by Reliance Communications (RCom) of unfair treatment vis-à-vis Vodafone in the matter of one-time spectrum charges on grounds that the two cases were different. Officials in the ministry added that DoT intends to go ahead with an appeal in the Supreme Court against a telecom tribunal ruling asking it to release bank guarantees worth Rs 2,000 crore against one-time spectrum charges (OTSC) sought from RCom.
CCI dismisses complaints against Google; chairperson gives dissent note
Anti-trust regulator CCI today rejected allegations of unfair business practices made against Google with respect to its advertising platform, saying the internet major’s actions did not infringe provisions of the competition law. In a majority order passed by four members, the CCI concluded that there was no violation of competition norms by Google. However, Competition Commission of India (CCI) Chairperson D K Sikri passed a dissent note. The majority ruling came on complaints filed against Google LLC, Google Ireland Ltd and Google India Pvt Ltd back in 2014. The complaints were filed by one Vishal Gupta and Albion InfoTel (informants). Both entities are into remote technology support business.
NCLAT approval: Bhushan Power lenders can go ahead with resolution process
Lifting its earlier stay order, the National Company Law Appellate Tribunal (NCLAT) on Thursday allowed lenders to Bhushan Power and Steel (BPSL) to go ahead with the resolution process for the bankrupt firm and approve an appropriate resolution plan, and place it before the adjudicating authority (NCLT) to seek its go-ahead. Tata Steel, Liberty House and JSW Steel are in the fray to take over BPSL. Sources said that while Tata Steel’s bid was a little lower than that of the UK-based Liberty House, it was higher than JSW Steel’s. The committee of creditors (CoC) has earlier zeroed in on Tata Steel as the preferred bidder because its bid was more acceptable on other parameters than those of the other two.
Fallout of board battle: Tata Sons free to become private firm, rules NCLT
The Mumbai Bench of the National Company Law Tribunal (NCLT) justified Tata Sons’ conversion into a private limited company from a deemed public limited one. This was one among the various points elaborated upon in the 368-page order on the Tata-Mistry verdict on Thursday. The Bench had ruled in favour of Tata Sons on July 9.Cyrus Mistry’s family, which owns 18.4 per cent in Tata Sons’ equity capital, had moved a petition in the NCLT, opposing Mistry’s sacking in October 2016 as well as the conversion of the Tata group holding company into a private limited company.
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