Fraud-hit PNB faces dilemma over revealing price-sensitive information
The ongoing events at Punjab National Bank (PNB) have put the state-owned lender in a problem regarding revealing price-sensitive information. The challenge before the management is ensuring simultaneous disclosure of key information to stock exchanges and investigating agencies. Given the turn of recent events, the bank has not been able to disclose all developments in a uniform manner. On February 5, PNB informed the stock exchanges that it “has come across a suspected fraud involving one branch, wherein certain irregularities have been observed on account of people risk.” Initially, the bank said the amount involved was only Rs 2.8 billion.
ED to hand over Nirav Modi, Vijay Mallya properties to NBCC
The Enforcement Directorate (ED) could soon hand over attached properties, including Nirav Modi and Vijay Mallya’s, to state-owned construction company National Buildings Construction Corporation (NBCC), which will rent these out for commercial or residential purposes. Business Standard has learnt the decision was taken earlier this week at a meeting in the finance ministry. Finance secretary Hasmukh Adhia chaired the meeting. ED director Karnal Singh and NBCC chairman Anoop Mittal attended the meeting. The ED manages attached properties. There is no provision under the Prevention of Money Laundering Act (PMLA) for renting out of seized properties to earn revenue. The Act is expected to be amended soon to enable putting immovable assets on rent.
IBC panel for allowing lenders to invoke personal guarantees
The panel reviewing the Insolvency and Bankruptcy Code (IBC) has proposed that lenders to defaulting companies should be allowed to invoke personal guarantees, which in most cases are those of the promoters, even if the resolution process has been initiated, said people with knowledge of the matter. If accepted, this will be a significant move in the light of a recent decision by the National Company Law Appellate Tribunal (NCLAT) that State Bank of India cannot invoke personal guarantees and liquidate assets in the case of Veesons Energy, which is facing bankruptcy proceedings.
NITI Aayog works on strategy to leverage block chain technology
NITI Aayog, the government’s premier think tank, is working on a national strategy for block chain which will identify the areas where the country can implement the technology and also list out the means for doing so. A policy paper is expected to be released by July, officials said. This comes after finance minister Arun Jaitley had in his Budget 2018-19 speeches asked the Aayog to prepare a roadmap for block chain. By April, the Aayog will share a discussion paper that it is preparing with all the states and central ministries, said a government official, who did not wish to be identified.
Breather for depositors as joint panel gets more time to submit FRDI Bill report
In what is seen as a breather for depositors in the banking system, the Lok Sabha on Friday gave more time for the joint panel looking into the FRDI Bill to submit their report. The joint committee of Parliament can now submit its report up to the last day of the Monsoon Session 2018, according to the motion adopted by the Lok Sabha. BJD Member Bhartruhari Mahtab moved this motion for adoption by the lower house on Friday. The joint panel was to earlier submit its report before the last day of the ongoing budget session. An extension of time period would now mean that depositors need not fret about their monies getting used for any ‘bail in’ exercises anytime soon.
Former SEBI officials can help tone up corporate governance of India Inc
Vedanta recently announced the appointment of former chief of SEBI UK Sinha as a Non-Executive Independent Director from March 13. Sinha, who earlier served as chairman of the Securities and Exchange Board of India from February 2011 to March 1, 2017, has been instrumental in ushering in key capital market reforms. “Under his leadership, SEBI introduced significant regulatory amendments to the various Acts enhancing corporate governance and disclosure norms,” the company said while appointing him. Navin Agarwal, Chairman, and Vedanta, said: “We warmly welcome UK Sinha on the board. Sinha is an architect of strong regulatory regime for India’s capital markets. As a corporate with highest standards of corporate governance and ethics, we believe this will be a befitting association.”
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