Reliance Communications moves TDSAT against DoT show-cause notice
Reliance Communications (RCom) has moved the Telecom Disputes Settlement and Appellate Tribunal (TDSAT) against the Department of Telecommunications’ (DoT) show-cause notice for payment of Rs 774 crore for deferred spectrum payment liabilities. Sources said RCom informed the TDSAT on Monday that while the DoT has raised a demand for payment of Rs 774 crore, the said payment has already been made through encashment of bank guarantees by the DoT earlier. “Therefore, RCom only needs to renew the encashed bank guarantees, which anyway will be payable only in 2019. RCom has sought time and the TDSAT granted an extension on this till August 10,” the company said. The TDSAT has also directed the DoT that its show-cause should not to be effectuated till next hearing on August 10, sources said.
Bhushan Steel case: NCLAT asks Tata Steel to provide resolution plan details
The National Company Law Appellate Tribunal (NCLAT )on Monday asked Tata Steel to furnish a detailed plan as to how it proposes to distribute the amount earmarked for the operational creditors under its resolution plan for Bhushan Steel. Hearing a petition filed by Larsen & Toubro (L&T), the appellate tribunal asked Tata Steel to provide the details by Tuesday, when it is scheduled to hear the matter next. The engineering and construction major said against dues of Rs 961 crore, the resolution professional has admitted Rs 537 crore. However, Tata Steel’s resolution plan does not specifically mention any amount that would be accrued to L&T. “Of the Rs 1,200 crore Tata Steel had set aside for operational creditors, Rs 200 crore would be given on priority. The remaining amount would be given on absolute discretion basis. We are in the dark,” L&T’s counsel said.
Mutual Funds: How recategorisation of MF schemes impacts mid and small-cap funds
In the current year, investors are noticing a strange thing in the financial services space. While the 30-share Sensex is hitting a new high, the portfolio of most investors is not reflecting the same growth. On hindsight, one can attribute certain reasons for this divergence. Over the last many months, it is the domestic investors who have been increasingly investing in mutual funds contributing to the rise in Sensex and Nifty. In the last six months, Systematic Investment Plans (SIP) have witnessed a steady growth. As per AMFI data, SIPs in January 2018 was Rs 6,425 crore which increased to Rs 7,554 crore in June, a growth of over 17%. But for most investors, their portfolio has reported a de-growth. Over the last many months till January this year, the mid cap and small cap indicies witnessed a sharp uptrend in share price driven by earnings growth in a few cases and cyclical nature of the industry in other cases.
Parliament passes Specific Relief Amendment Bill
Parliamentary approval was accorded to the Specific Relief (Amendment) Bill, 2017, giving an affected party — whose contract has not been performed by the other party — the option to arrange for completion by a third party or by its own agency (substituted performance) with the Rajya Sabha passing the legislation. The Bill, that amends the Specific Relief Act, 1963, had earlier been passed by the Lok Sabha and is set to become a law after the President’s assent. Under the Bill, certain civil courts may be designated as special courts by the state government in consultation with the Chief Justice of a High Court to deal with cases related to infrastructure projects. Such cases must be disposed of within 12 months from the date of receipt of summons by the defendant. This period can be extended by the courts for another six months.
BSE, NSE enhance vigil on securities under surveillance
Leading stock exchanges BSE and NSE have put in place a detailed framework for short listing and reviewing of securities under graded surveillance measures (GSM), wherein investors need to be extra cautious while dealing in such stocks. These additional guidelines have been made after a joint surveillance meeting of markets regulator Sebi with exchanges last week, the bourses said in separate circulars. Under the new criteria, securities having a networth of less than or equal to Rs 10 crore and net fixed assets of less than or equal to Rs 25 crore are eligible for inclusion under the GSM framework. Also, securities with a negative price earning (PE); or having a greater than two times PE of benchmark index — Nifty 500 or S&P BSE 500 –can be included.
PNB gets Rs 2,816 crore as part of government’s capital infusion plan
State-owned PNBNSE 0.38 % today said it has received Rs 2,816 crore as capital infusion from the government via preferential allotment of equity shares. “The bank, as per…Department of Financial Services notification, has received amount of capital infusion of Rs 2,816 crore towards contribution of the central government,” PNB said in a regulatory filing. The preferential allotment of equity shares to government will be made after completing the process of regulatory approvals, Punjab National Bank said. Allahabad Bank had informed last week that it received Rs 1,790 crore as capital infusion from the government.
BSE, NSE enhance vigil on securities under surveillance
Leading stock exchanges BSE and NSE have put in place a detailed framework for short listing and reviewing of securities under graded surveillance measures (GSM), wherein investors need to be extra cautious while dealing in such stocks. These additional guidelines have been made after a joint surveillance meeting of markets regulator Sebi with exchanges last week, the bourses said in separate circulars. Under the new criteria, securities having a networth of less than or equal to Rs 10 crore and net fixed assets of less than or equal to Rs 25 crore are eligible for inclusion under the GSM framework. Also, securities with a negative price earning (PE); or having a greater than two times PE of benchmark index — Nifty 500 or S&P BSE 500 –can be included. Further, the exchanges said securities with full market capitalization of less than Rs 25 crore can be directly included under GSM stage I.
Insolvency process: CoC open to new bids for Deccan Chronicle, says NCLT
The Committee of Creditors of Deccan Chronicle Holdings Limited (DCHL) was open to examining fresh resolution applications, including a modified resolution plan submitted earlier this month by Srei group’s Vision India Fund, The Hyderabad Bench of the National Company Law Tribunal said on Monday. On Friday, the National Company Law Appellate Tribunal (NCLAT) set aside the Hyderabad Bench’s orders dated November 16, 2017, which barred Srei Infra Finance from becoming a member of Committee of Creditors (CoC) on grounds of being a related party. The appellate tribunal also excluded the appeal-to-order period of seven months and nine days and directed the bench to keep the insolvency resolution process open. The development came at a time when Hyderabad Bench was about to take a call on DCHL’s resolution professional Mamata Binani’s plea for extending the time of the resolution process.
About the Author
