Russia’s VTB Capital-backed Numetal’s second bid for bankrupt Essar Steel valid, rules NCLT
The National Company Law Appellate Tribunal (NCLAT) on Friday ruled that Russia’s VTB Capital-backed Numetal’s second bid for bankrupt Essar Steel is eligible but gave a conditional clearance to Lakshmi Mittal-led ArcelorMittal’s bid. Only if the company cleared `7,000 crore of dues of firms (Uttam Galva and KSS Petron) it was previously associated with by September 11, will it qualify to bid. A two-member bench of the NCLAT headed by chairman Justice SJ Mukhopadhaya ruled that the first-round bids were not eligible but Numetal’s second bid submitted on March 29 after restructuring the shareholding was eligible.
Alleged FDI rule violation by e-commerce players via discounts: NCLAT asks Walmart-Flipkart to explain business model
The National Company Law Appellate Tribunal (NCLAT) has asked Wal-Mart and local e-commerce platform Flipkart, which has just been acquired by the US-based retail biggie, to explain their business models in India. The move is important as the so-called ‘deep discounts’, offered by foreign-funded e-commerce companies in alleged violation of the FDI rules, continue to be an irritant for policymakers. Ambiguity persists on how effectively such ‘non-compliance’ is being handled by the enforcement agencies. The NCLAT, which is also an appellate authority over the Competition Commission of India (CCI), has asked Wal-Mart International Holdings to file its reply before it by September 20, 2018.
FPI circular: Finance Ministry tells Sebi to gauge market impact
The finance ministry is learnt to have impressed upon the Securities and Exchange Board of India (Sebi) to keep in mind the potential impact on broader financial market stability, apart from views of various stakeholders, while reviewing its April 10 circular on the beneficial ownership of foreign portfolio investors (FPIs). “There is already some turmoil in the financial markets, primarily due to external factors. The rupee volatility has caused enough anxiety, although the Indian currency is still performing much better than many peers. The spill-over effect of a global trade war can’t be ruled out. So despite the good intentions behind the circular, Sebi may also see the potential impact on market stability and the timing of a step,” said an official source aware of the development.
Electricity Act amendments propose stiff penalties for PPA violations
The Government may get tougher with power producers and distribution companies (discoms) that violate power purchase agreements (PPAs). The proposed amendments to the Electricity Act, 2003 — in the draft Electricity (Amendment) Act, 2018 — have defined penalties for such violations. These may extend to ₹1 crore per day and may also attract suspension and cancellation of a license. Further, in the case of non-compliance of renewable-power purchase obligations, the proposed amendments specify a penalty of 1-5 per unit. The draft has also proposed that cross-subsidies within a distribution area shall not exceed 20 per cent and shall be progressively reduced and eliminated in three years.
Infosys to take 60% stake in Temasek arm for 63 crore
Infosys has formed a joint venture with Temasek, under which it will take a 60 per cent stake in Trusted Source, a wholly-owned subsidiary of the Singapore-based investment giant, for 62.6 crore. According to the deal, Infosys will pump in the funds in Trusted Source by March 2019. The investment does not include working capital, cash and net debt, the company said in a statement. Trusted Source, headquartered in Singapore, delivers IT services to Temasek and a number of other clients. It has around 200 employees. Post deal, it will work along with Infosys staff, the company said in a statement.
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