Air India draws a blank: Insistence on govt control dooms privatization
In a blow to the government’s privatization drive in aviation, no bidder showed up on the last day of submitting expression of interest to buy a controlling stake in Air India. With that, the disinvestment of the national carrier, which had kicked off last June following Cabinet approval, seemed to be grounded for now. The proposal will now go back to the group of ministers (GoM) overseeing the process for a possible review of norms. With the Lok Sabha elections scheduled for 2019, a fresh process may not be easy to roll out, people in the know said, while businesses blamed “faulty guidelines’’ for the flop show.
RBI withdraws rule exceptions for NBFCs owned by govt
The Reserve Bank of India (RBI) has ended the special dispensations granted earlier for non-banking financial corporation’s (NBFCs) owned by the government. Instead, it has specified a roadmap, stretching till 2021-22, for these lenders to meet the norms on capital adequacy, provisioning and corporate governance. Among the entities affected are IFCI, Power Finance Corporation, India Infrastructure Finance Company, Indian Railway Finance Corporation, Indian Renewable Energy Development Agency and Housing & Urban Development Corporation.
Sebi slaps Rs 10 lakh fine on DLF for wrong disclosures on utilization of IPO proceeds
Regulator Sebi today imposed a penalty of Rs 10 lakh on realty major DLF for making wrong disclosures with regard to utilization of funds raised through initial public offering. The regulator conducted an investigation in the scrip of DLF for the period June-December, 2007 to ascertain any possible violation of the regulation. It found that the company had made wrong disclosures to stock exchanges regarding utilization of IPO proceeds. “I conclude that the notice (DLF) by making wrong disclosures as regards variation in projected utilization of funds vis-a-vis actual utilization of funds for the quarter ended September 2007, had violated the provisions of … Listing Agreement,” Sebi Adjudicating Officer B J Dilip said in an 18-page order.
L&T Shipbuilding’s auditors raise ‘going concern’ doubts
Multiple years of losses have substantially eroded the net worth of engineering major L&T’s shipbuilding arm and led its independent auditors to cast “significant doubt” over whether the company can continue as a “going concern”. L&T, the parent, however said its investment in L&T Shipbuilding is “strategic” and affirmed its financial support. In accounting parlance, the ‘going concern assumption’ typically means that the company will remain in business for the foreseeable future without being forced to halt operations and liquidate its assets.
AirAsia: ED to file case under PMLA today
The Enforcement Directorate (ED) will on Friday file a case under the Prevention of Money Laundering Act (PMLA) against AirAsia’s global chief Tony Fernandes, some of his colleagues, as well as erstwhile top executives and nonexecutive director R Venkataramanan at AirAsia India, a source close to the development told ETon Thursday. The ED, the key economic law enforcement agency in India, already has a case registered against AirAsia India under the Foreign Exchange Management Act.
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