PNB plans to stake a claim in insolvency proceedings of Nirav Modi Company
Punjab National Bank (PNBBSE 1.13 %) plans to take part in the bankruptcy proceeding of Firestar Diamond, a group company of jewellery designer Nirav Modi who has been accused of defrauding the state-run bank of nearly Rs 13,000 crore. According to sources, the bank is in the process of hiring legal experts to take the matter forward. The legal firm would be hired soon. Various pros and cons are being examined in order to make a watertight case for the recovery, sources said, adding the bank is part of unsecured creditor category.
Sebi board to vet National Stock Exchange colocation probe report
The Securities and Exchange Board of India (Sebi) has completed its investigation of 20 brokers in the National Stock Exchange (NSE) colocation (colo) controversy. The regulator in August last year had ordered a joint forensic audit to probe the brokers, who had allegedly gained unfair access to trading data feed between December 2012 and May 2014. According to sources, the investigation report has a detailed analysis of brokers using the colo facility to churn out thousands of trades and make huge profits.
GST: Firms fear dispute over input tax credits
Indian companies fear that input tax credit claimed for GST paid on raw materials may be disputed by tax officials later and are considering setting aside funds to cover risks arising from the rejection of their claims. Experts say there is no guarantee that the input tax credit and transitional credit (accrued under the earlier tax system) claimed by the companies will be approved when it is scrutinized by tax authorities at the end of the fiscal year. With key features of the goods and services tax (GST)—such as matching of invoices—yet to be implemented, the tax is now based on a self-declaration mechanism.
There is a need to secure full Aadhaar ecosystem: Experts
While Unique Identification Authority of India (UIDAI) has maintained its database is secure and there are no breaches of Aadhaar data from its system, security researchers warn that leaks are happening in third-party sites and it is important for the agency to ensure that its ecosystem adopts measures to keep data safe.
“Securing an entire ecosystem is more important than secure individual databases,” said security researcher Srinivas Kodali. Over the weekend, technology publication ZDnet citing an Indian security researcher said that it identified Aadhaar data leaks on a system run by a state-owned utility company Indane that allowed anyone to access sensitive information like a name, Aadhaar number, bank details.
IBC: Bidders want clarity on haircut to be offered to operational creditors
With numerous unsecured and trade creditors going to the National Company Law Tribunal (NCLT), bidders of stressed assets want clear guidelines on the number of dues to be offered to unsecured creditors in the next round. With the resolution plans of most bidders taking care of only secured creditors, operational and unsecured creditors plan to take the fight to the Supreme Court to get their dues. In Binani Cement, the resolution plan had taken into account the full dues of only one unsecured creditor, IDBI Bank, which had a say in the voting, and just 10% to another, State Bank of India, Hong Kong. In the case of Bhushan Steel, unsecured creditors were left high and dry.
India to talk tough on the trade deficit
Amid a trade war with the US, China will have to brace for some tough talks on its massive — and rising — trade surplus with India when its commerce minister Zhong Shan visits New Delhi on Monday. At the same time, both the nations are expected to find some common ground in their united opposition to unilateral trade protectionism by the US. In his meeting with Zhong under the aegis of India-China joint economic forum, commerce and industry minister Suresh ‘Prabhu will impress upon China to take concrete measures to set right the massive trade imbalance, an official said.
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