IBC panel seeks to draw more bidders, cut losses
The committee reviewing the Insolvency and Bankruptcy Code (IBC) has proposed that a case admitted for resolution can be withdrawn if 90% of creditors agree, implying that unsuccessful bidders could get back in the reckoning for an asset with a better deal. That would also mean lenders taking less of a haircut.The 14-member committee, which submitted its 90-page report to Finance Minister Arun Jaitley on Monday, also proposed a relaxation in the application of the ineligibility clause for “related parties” and “connected persons” that will benefit foreign institutional investors (FIIs), foreign portfolio investors (FPIs) and overseas venture capital investors. This and other suggestions are aimed at widening the pool of likely bidders while keeping out willful defaulters.
BDO to conduct the forensic audit of Gitanjali Gems
A consortium of 31 lenders led by ICICI Bank has mandated BDO India to conduct a forensic audit of Mehul Choksi-led Gitanjali Gems to determine modus operandi of the alleged fraud using Punjab National Bank guarantees, two people with direct knowledge of the matter told ET. The Indian arm of Belgium headquartered professional services firm BDO is the second forensic auditor named by the lenders — which have a total exposure of Rs 6,000 crore to Gitanjali after New Delhi based TR Chadha & Co.
Banking scam fallout: RBI may let PNB spread fraud losses over 1 year
The Reserve Bank of India (RBI) had agreed in principle to a request by Punjab National Bank (PNB) to spread its losses related to the Nirav Modi-Mehul Choksi fraud over four quarters, sources said. “However, we are still awaiting a written communication from the regulator,” a source at the Delhi-based public sector bank said. PNB is staring at losses on account of fraud worth Rs 145 billion in 2017-18 after letters of undertaking worth Rs 129 billion were issued by its employees to the companies owned by Nirav Modi and Mehul Choksi.
FSSAI to align licensing norms with GST
The Food Safety and Standards Authority of India (FSSAI) is working on amending the registration and licensing regulations for food businesses. It will look at reclassifying food businesses on the basis of their turnover, in a bid to align these norms with GST. FSSAI CEO Pawan Agarwal said: “We are working on bringing a comprehensive amendment to the licensing and registration regulations for food business operators. The amendments will include classification of licences for food businesses on the basis of turnover in line with GST and MSME norms.”
Vijay Mallya properties to be attached in FERA violation case
A Delhi court on Tuesday ordered the attachment of properties of fugitive tycoon Vijay Mallya in a Foreign Exchange Regulation Act (FERA) violation case. Chief metropolitan magistrate Deepak Sherawat directed the attachment under Section 83 of the Code of Criminal Procedure, which provides for attachment of property of an absconding person. The court directed the attachment through the Bangalore police commissioner and sought a status-report by 8 May. Earlier this year, the court had declared Mallya a proclaimed offender for not responding to summons in the FERA case. The court in November 2017 had given Mallya one last opportunity to appear before it by 18 December 2017.
Sebi panel suggests steps to improve governance at bourses, depositories
A Securities and Exchange Board of India (Sebi) constituted the committee to review norms for market infrastructure institutes has recommended steps to improve governance at exchanges, depositories, clearing corporations and registrar agents, according to two people with direct knowledge of the matter. According to these people, the panel headed by former Reserve Bank of India (RBI) governor R. Gandhi, suggested the mandatory rotation of key management personnel, capping salaries for such personnel at bourses and increasing the proportion of public interest directors (PIDs).
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