Govt Disagrees with NCLT Order Concerning Defaulting Promoters
The government disagrees with an order passed by the Mumbai bench of the National Company Law Tribunal (NCLT) that the law disqualifying defaulting promoters from bidding does not apply to cases filed before the November ordinance. The order of the NCLT bench was flawed and does not take into account the provisions and sub-sections of the law, which state clearly that Section 29A will be applicable in cases where a resolution plan has not been stamped and approved, a senior government official said.
RBI Governor Urjit Patel seeks more powers to effectively regulate PSBs
RBI Governor Urjit Patel on Tuesday made a strong case for more powers to effectively regulate public sector banks (PSBs) as lawmakers asked him tough questions over increasing bad loans and frauds. As per sources, Patel also informed the Standing Committee on Finance that RBI is in communication with the government for discontinuing the practice of appointing RBI nominees on boards of PSBs to avoid to any conflict of interest between the regulator and regulated entities.
Adani group emerges as highest bidder with Rs 6,000 cr offer for Ruchi Soya
Billionaire Gautam Adani’s group company today offered about Rs 6,000 crore to emerge as the highest bidder for acquisition of bankruptcy-hit edible oil firm Ruchi Soya, sources with direct knowledge of the matter said. Baba Ramdev-promoted Patanjali Ayurved, the only other qualified player in the race, has bid for around Rs 5,700 crore, they added. However, Patanjali will have a right to match the offer under an auction being done under so called Swiss challenge method.
India Inc independent directors feel the heat as frauds take centre stage
Auditors are not the only ones calling it quits. With increasing instances of high-profile corporate frauds, accounting discrepancies and application of global anti-corruption laws, independent directors are finding the going tough. More than 1,000 independent directors (IDs) have quit since January last year, data from Prime Database show. That number is likely to go up substantially in 2019 when a number of IDs’ terms are reviewed for renewal. More than 1,400 IDs had signed up for five-year terms in FY15 after the Companies Act, 2013, came into force from April 1, 2014.
SEBI sets up expert panel for direct overseas listing
Very soon, Indian companies may be able to list their equity shares on overseas exchanges directly. SEBI has made a proposal to allow direct listing of Indian companies on overseas bourses, and foreign firms on Indian exchanges, and has set up an expert panel to look into it. As of now, Indian companies can list their shares through depository receipts abroad, while foreign companies are allowed to list only via the Indian depository receipt route.
Status Report: A year after, NCLT resolves only 2 cases out of 12 referred
A year after Reserve Bank of India’s (RBI) decision to nudge banks in referring 12 large defaulters to the National Company Law Tribunal (NCLT), only two cases – Bhushan Steel and Electro steel Steels – have been resolved. While Vedanta has acquired the management control of Electro steel Steels after depositing Rs 5,320 crore in an escrow account, Tata Steel has acquired Bhushan Steel for Rs 35,200 crore.
PNB fraud case: Special PMLA court issues non-bailable warrant against Nirav Modi
A special PMLA court in Mumbai on Tuesday issued a non-bailable warrant against absconding diamantine Nirav Modi accused in the Rs 13,500-crore Punjab National Bank fraud case. This development comes a day after the United Kingdom confirmed to India that Nirav Modi is in their country, even as CBI has moved Interpol to issue Red Corner Notices against him and his uncle Mehul Choksi. Nirav’s presence in the UK was confirmed by members of the British delegation led by Minister of State for Countering Extremism, Baroness Williams, who held deliberations with MoS (Home) Kiren Rijiju in New Delhi Monday.
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