Sebi move to ease AIF norms seen boosting IPO market
A regulatory decision allowing category-II alternative investment funds (AIFs) to sell their shares in a company any time after its initial public offering (IPO) will help the funds plan investments better and bring them on par with category-I AIFs, experts said. Category II includes private equity funds and real estate funds, while Category I includes venture capital funds and infrastructure funds. So far, Category-I investors could sell their shares any time after the IPO, while category-II investors had to hold them for at least a year.
GST impact: Small restaurants pulling away from online delivery
With new tax rules for e-commerce firms set to come in under the Goods and Services Tax regime, small restaurants and vendors are pulling away from online delivery start-ups. In the GST regime, e-commerce firms will have to deduct tax collected at source (TCS) when they make payments to restaurants or vendors using their platform. This can deter smaller restaurants with lower sales volume from going online.
Tata Power proposes to sell 51% equity in loss-making Mundra UMPP at Re 1
Tata Power has approached Gujarat Urja Vikas Nigam (GUVNL) to buy 51 per cent equity in the 4,000 Mw Mundra Ultra Mega Power Project (UMPP) for Rs 1. Adani Power and Essar Power, which also have power projects based on imported coal, are contemplating similar moves. An official said Union Power Minister Piyush Goyal met banks and state government representatives this week to discuss power projects using imported coal and a committee had been set up to look into the fallout of a Supreme Court ruling on compensatory tariffs.
RBI expands overseeing committee membership to five for bad loan resolution
The Reserve Bank of India (RBI) on Thursday reconstituted the oversight committee (OC) mechanism and increased the number of members to five from the earlier two. The panel has mandate to vet restructuring proposals for big-ticket stressed loans. Besides taking up cases under the scheme for sustainable structuring of stressed assets (S4A), it would also consider recast proposals for entities with borrowings above Rs 500 crore.
Workforce reshuffle to help Tata Motors save Rs 400 crore
Tata Motors is set to save Rs 300-400 crore in what’s termed the biggest restructuring exercise in the history of the company. The recast of the white-collar workforce has resulted in 1,200-1,300 employees getting reassigned, shifted to other units or asked to leave. The company has also slashed 2,500 positions, by eliminating a plethora of designations, all of which will add to the bottom line.
WhatsApp in talks with SBI and NPCI for payments via UPI
Messaging application WhatsApp has initiated discussions with Indian banks and other institutions to allow its users to make payments via United Payments Interface (UPI), which facilitates instant fund transfer between two bank accounts on the mobile platform. The messaging app, owned by American online social networking company Facebook, is in talks with the State Bank of India, the National Payments Corporation of India and a few other financial institutions to integrate payment.
Bankruptcy Code: Banks to refer Essar Steel, Electrosteel, Bhushan Steel to NCLT
The fate of three near-bankrupt steel companies — Essar Steel, Bhushan Steel and Electrosteel Steels — which together owe lenders nearly `1 lakh crore will now be decided by the National Company Law Tribunal (NCLT). Having failed to recover their dues or rope in either strategic or financial investors, lenders to these companies finally agreed on Thursday to resort to the Insolvency and Bankruptcy Code (IBC), bankers familiar with the development said. The decision follows a directive by Reserve Bank of India on June 13 to banks asking them to refer a dozen troubled companies – with a combined debt of close to 2.4 lakh crore – to the tribunal.
GST rollout: Amazon India orders sellers to take back stock, setsFriday deadline
India has asked many of its sellers to take back their inventory from warehouses by Friday, keeping in mind the onset of the GST regime. It has also notified that any “removal order” placed by sellers after June 23 will be processed only after June 30 and such inventory will be subjected to the GST regime. While other marketplaces are looking to liquidate their stocks before the onset of GST, Amazon India is asking its sellers to move their stocks out. According to seller sources, the company has asked them to take back their inventory from its fulfilment centres. Those sellers who cannot get their removal orders processed by Friday will have their inventories subject to GST regime and not under the current tax dispensation.
You can’t buy luxury items till you fix schools, High Court tells Uttarakhand govt
Holding the Uttarakhand government responsible for “falling standards of education” and for “miserably failing to provide bare minimum facilities” in government schools, the Uttarakhand High Court Thursday “restrained” the state government from purchasing luxury items.
“Since the state government has miserably failed to provide bare minimum facilities in schools inter alia benches, desks, blackboards, hygienic separate toilets for boys and girls, water purifiers and ceiling fans, the state government is restrained from buying luxurious cars, furniture and air conditioners till further orders,” the court said.
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