FPI body opposes more inspection powers for Sebi
A lobby group representing global banks and asset managers, such as Blackrock, Amundi, BNY Mellon and Capital Group, has written to the Securities and Exchange Board of India opposing the HR Khan committee recommendation that would give the capital markets regulator more inspection powers. The panel, in its report, proposed that Sebi should have powers to summon and inspect additional documents of those foreign portfolio investors (FPIs) which come from high risk jurisdictions.
Currently, FPIs submit only information of their beneficial owners (BO) to Sebi. However, the committee now wants the market regulator to have powers to ask for more details including complete investor data if the fund is based out of a high-risk jurisdiction.
The Asia Securities Industry and Financial Markets Association (ASIFMA) has questioned the need for Sebi to have such additional powers.
Sebi may crack down on pledged shares at next board meet: Sources
The markets regulator Sebi is planning to crack down on pledged shares and their misuse at the next board meet on June 27, and may do so by a loosely worded definition of “encumbrance” that is likely to cover an innovative structure reached at my promoters, lenders and mutual funds.
In a significant move, promoters may have to mandatorily declare within 7 days of the encumbered shares crossing 20 per cent of the share capital and also list out reason for doing so.
Sebi is believed to be concerned by the exposure of mutual funds to debt and money market instruments through structural obligations, pledges shares, non-disposal undertakings, promoter guarantees and various other complex structures. This has also become a burning issue since the saga of IL&FS, DHFL, Essel and Jet Airways.
IBC & RESTRUCTURING RELATED NEWS
Jet’s resolution process on the fast track; shares jump 9%
Shares of Jet Airways jumped nearly 9 per cent in morning trade on Monday even as media reports suggested that the insolvency resolution professional has put the grounded airline’s resolution process on the fast track.
ET reported, citing sources that the insolvency resolution professional appointed by India’s bankruptcy court for Jet Airways has put the grounded airline’s resolution process on the fast track.
Ashish Chhawchharia, partner at Grant Thornton, took charge as RP and met the airline’s management on Saturday to apprise them of the plan ahead, the report added.
Jet Airways creditors asked to submit claims by July 4
The resolution professional for Jet Airways, which was admitted to the NCLT last week for bankruptcy, has invited claims from all creditors to the grounded airline.
The airline owes over Rs 8,500 crore to a consortium of 26 banks led by State Bank, and over Rs 13,000 crore to the tens of hundreds of vendors and around 23,000-odd employees.
“The creditors of Jet Airways are hereby called upon to submit their claims with proof on or before July 4, to the interim resolution professional. Financial creditors shall submit their claims with proof by electronic means only,” resolution professional Ashish Chhawchharia of Grant Thornton said in a public notice.
All other creditors shall submit their claims with proof in person, by post or by electronic means, it added.
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Jaypee home buyers protest at Jantar Mantar, seek government intervention
Home buyers of Jaypee Infratech Sunday urged the government to direct IDBI Bank to vote in favour of state-run NBCC’s bid for the acquisition of the debt-ridden firm and prevent it from going through liquidation process. On Sunday, hundreds of Jaypee home buyers held protest at Jantar Mantar here and are planning to submit a petition to Finance Minister Nirmala Sitharaman in this regard.
In their petition to Sitharaman, the home buyers have appealed to the government to direct IDBI Bank and NBCC to resolve their differences on the resolution plan and IDBI Bank to vote for NBCC’s resolution plan.
They also demand that the majority vote of home buyers in the CoC be treated as the vote of the whole voting sub-class of home buyers.
Home buyers’ body wants Rs 10,000-crore ‘stress fund’ in budget to complete stalled projects
The government in the upcoming budget should create a Rs 10,000-crore fund to complete stalled real estate projects across the country and provide relief to over five lakh people who have booked properties, according to home buyers’ body FPCE.
In its budget recommendation to the finance minister, Forum For People’s Collective Efforts (FPCE), earlier knows as Fight for RERA, also demanded that home buyers should be categorised as primary secured creditors.
“You are aware there are over five lakh home buyers whose hard earned life savings are stuck in different real estate projects across the country due to indefinite delay and fund diversion by builders,” FPCE President Abhay Upadhyay said and pitched for the creation of a stress fund to end the mental and financial stress of these home buyers.
The memorandum further noted that “despite RERA (realty law), most of the ongoing projects have not been completed. It is time now to end this problem by creating a ‘stress fund’ to the tune of at least Rs 10,000 crore to complete stuck real estate projects on pan India basis.”
The objective should be to complete all pending real estate projects pan India within a span of five years, it said.
MSME & STARTUPS RELATED NEWS
After IL&FS crisis, SIDBI says will continue to support good NBFCs
The Small Industries Development Bank of India (SIDBI), since its inception in 1990, has been involved in the pursuit of meeting the financial and non-financial needs of the MSME sector. On the anvil are plans to introduce a new social credit model for the sector as well as giving the much needed push to village entrepreneurship. In an exclusive chat with ET, Mohammad Mustafa, CMD, SIDBI says the Bank’s main focus would be very small businesses that have difficulty in accessing credit and skill development.
Microsoft underscores its commitment to the Indian startup ecosystem
Tech giant Microsoft Monday said it was well poised to help startups embrace the next phase of growth with its cutting-edge technology platform, M12, a partner organisation of Microsoft.
“The introduction of M12, Microsoft’s venture fund in India is creating a new value for startups, venture capitals and the company itself to maintain the pace and direction of innovation,” Microsoft India President Anant Maheshwari said.
He said the tech firm has been playing a vital role in shaping and nurturing the startup community in India and across the world.
Startup India fund falls short of allocation target by over Rs 1,000 cr
The Startup India fund fell short of its capital allocation target by around Rs 1,000-1,200 crore, despite initial euphoria.
The Startup India fund, launched in 2016, had a disbursal target of Rs 3,300-3,500 crore to venture capital (VC) firms at the end of the financial year ending March 2019, according to top officials at Small Industries Development Bank of India (Sidbi) — which manages the “fund-of-funds”. The Startup India fund has allocated Rs 2,265 crore to VC funds at the end of March 2019, according to data available with Sidbi.
Bill to allow trusts set up SEZ units in Lok Sabha
Commerce and industry minister Piyush Goyal on Monday introduced a bill to allow trusts to set up units in special economic zones (SEZs).
The Union Cabinet had in February approved the introduction of the Special Economic Zones (Amendment) Bill, 2019 to replace an ordinance promulgated by the previous government.
The ordinance seeks to amend the definition of a person under the SEZ Act 2005, which will enable a trust to be considered for grant of permission to set up a unit.
The amendment seeks to provide flexibility to the central government to include ‘trusts’ in the definition of a ‘person’ in a bid to facilitate investments in these zones.
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Government sets the ball rolling for national retail policy
In line with the BJP’s manifesto to create a national policy on retail trade, the government has set the ball rolling with the first set of stakeholder consultations slated for Tuesday. The Department for Promotion of Industry and Internal Trade (DPIIT) has called a meeting of around ten retailers associations as it takes forward its agenda of putting in place a policy in 100 days.
“Establish National Traders’ Welfare Board and create a National Policy for Retail Trade for the growth of retail business,” the BJP said in its Sankalp Patra.
DPIIT was made the nodal agency for internal trade earlier this year.
I-T Dept issues notices in 380 cases of undisclosed foreign assets of Rs 12,260 crore
Budget 2019: National trade policy, FDI tweak high on retail sector’s wishlist
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Jet Airways insolvency: SBI files caveat in NCLAT to ensure no disruption in process
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Our focus is on high-rated NBFCs who render service to MSMEs: SIDBI
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