NCLAT stays NCLT order on JP Associates land
In a relief to Jaiprakash Associates, the National Company Law Appellate Tribunal today stayed the NCLT order which had directed the realty firm to return nearly 760-acre land to its subsidiary Jaypee Infratech. The appellate tribunal also admitted the petition filed by the three lenders — Axis Bank, Standard Chartered Bank and ICICI Bank, and issued notices to the resolution professional (RP) of the Jaypee Infratech. A two member NCLAT bench headed by Chairman Justice S J Mukhopadhyaya said that the finding of NCLT that fraud has been committed on the mortgaged property by Jaiprakash Associates to the banks was not based on ‘evidence’ or ‘in accordance with law’.
NSE, MCX in merger talks, could submit proposal to Sebi this month
The National Stock Exchange (NSE) and the Multi Commodity Exchange (MCX) entered into merger talks ahead of the implementation of the universal exchange framework in October, said a top official. The two entities are planning to approach market regulator Securities and Exchange Board of India (Sebi) as early as this month, according to the official. The merger will help NSE and MCX cement their leadership position both in the equities and commodity derivatives space.
FSDC reconstituted to include more members
The government has reconstituted the Financial Stability and Development Council (FSDC), the apex body of financial sector regulators, and made it more broad-based. The council, headed by the finance minister, will now include the minister of state responsible for the Department of Economic Affairs (DEA), currently P Radhakrishnan. The secretary of Department of Electronics and Information Technology also becomes a member, given the importance the government gives to digital transactions and issues of data privacy.
Govt mulls new category to impose import duties on hi-tech products
The government is exploring the possibility of creating new categories in its tariff structure that will allow it to impose import duties on hi-tech products without violating a global agreement that mandates nil duties. The government has already imposed customs duties on mobile phones to encourage manufacturing in India. The finance and commerce ministries and the department of electronics are in discussions on the issue to give a ‘Make in India’ push to hi-tech products.
CCI orders probe against Grasim Industries
The Competition Commission has ordered a probe against Aditya Birla group firm Grasim Industries for alleged abuse of dominant position with regard to the sale of viscose staple fibre (VSF). The ruling has come following three separate complaints filed with the fair trade regulator. Since the “subject matter” of the three complaints was same, CCI had clubbed them and passed a common order. After finding prima-facie evidence of competition norm violations, the regulator has directed its investigation arm — the Director General (DG) — to conduct an investigation against the company.
SBI sees one-day defaults from lower-rated accounts
Lower-rated borrowers account for a large chunk of one-day defaults at State Bank of India (SBI) under the new Reserve Bank of India (RBI) guidelines, a senior banker said. According to him, ever since the one-day default norms kicked in, small companies and lower-rated borrowers have missed interest payments. “Since the highly-rated companies where we have an exposure have a better cash flow than their smaller peers, we have not seen major deadline misses from them,” he said, adding that the new circular has put the onus of repayment on the borrower.
Corporate debtors must get shareholders’ approval to initiate insolvency process
Shareholders’ approval through a special resolution is a must for a ‘corporate debtor’ to apply for initiation of insolvency process. Simply put, a company (corporate debtor) cannot now be an applicant for availing Corporate Insolvency Resolution Process (CIRP) unless its shareholders had, through a special resolution, approved the same. This has been mandated in the new insolvency ordinance that was approved by the Union Cabinet on Wednesday, sources said. The insolvency ordinance has also specified that the Limitation Act 1963 will apply for proceedings before the NCLT and NCLAT.
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