IBBI amends norms, notifies procedures for home buyers under insolvency proceedings
The IBBI has notified revised norms for insolvency resolution process paving the way for home buyers to seek relief as financial creditors, putting in place clear timelines to be followed by resolution professionals and permitting withdrawal of insolvency applications subject to certain conditions. In a significant move, the Insolvency and Bankruptcy Board of India (IBBI) has mandated that a resolution professional should determine whether a corporate debtor had indulged in fraudulent transactions within a specified time period during the resolution process.
ICICI Bank, Chanda Kochhar seek more time to respond to Sebi’s show cause notice
Last month, the Securities and Exchange Board of India (Sebi) had sent a notice to ICICI Bank MD and CEO Chanda Kochhar, seeking her response on the alleged non-compliance with norms in dealings with the Videocon Group and Nupower Renewables, a company co-founded by her husband Deepak Kochhar. According to The Business Standard, the deadline to respond to the show cause notice was Thursday but ICICI Bank and Kochhar have sought more time from the market regulatory body. Sebi issued a 12-page show-cause notice to ICICI Bank and Chanda Kochhar on May 23. The notice, however, did not have adequate documents to support the allegations.
ArcelorMittal points to Essar Steel lenders’ backing in NCLAT
Lenders to Essar Steel feel that ArcelorMittal, “a serious and credible resolution applicant”, has displayed “a genuine intention and taken concrete steps” by attempting to clear over dues in defaulting firms where it was a shareholder. This was stated by ArcelorMittal, with reference to the documents presented in the NCLAT on Wednesday. A statement tweeted by ArcelorMittal said, “We welcomed the opportunity to begin presenting our case to the National Company Law Appellate Tribunal (NCLAT) on Wednesday.
RBI’s revised framework on stressed assets resolution hits IOB bottom line
Indian Overseas Bank’s net loss has widened to Rs 36.06 billion during the quarter ended March 31, 2018, from Rs 6.46 billion during the same quarter last year, owing to higher provisioning as per the revised regulatory framework by RBI. The increase in losses is mainly due to provisioning requirements, including higher provisions as per RBI guidelines on revised framework on Resolution of Stressed Assets, the bank said. Following the revised framework, the bank has classified specific restructured accounts in accordance with extant Income Recognition and Asset Classification (IRAC) norms and made a provision of Rs 7.99 billion towards such accounts during the current quarter.
Sebi sends NSE final show cause notice in algo-trading case
The Securities and Exchange Board of India (Sebi) on Wednesday issued the second and final show cause notice to National Stock Exchange of India (NSE) for allowing preferential access to some brokers, two people aware of the matter said. Starting 2010, certain brokers allegedly used NSE’s co-location facility to get early access to its algorithmic trading systems, gaining an unfair advantage until NSE changed its systems in 2014 to prevent misuse. Algorithmic trading refers to the use of electronic systems to execute thousands of orders in a split second. Members who co-locate their servers on exchange premises gain because their orders travel faster.
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