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After near three-year probe, Sebi action in NSE colo case in a 'few days'

After near three-year probe, Sebi action in NSE colo case in a 'few days' The exchange, its officials, brokers could face enforcement action The Securities and Exchange Board of India (Sebi) will soon initiate enforcement action against country's largest stock exchange the National Stock Exchange (NSE) and various other entities involved in an infamous co-location (colo) controversy. The market regulator has been probing the case since early 2015 following multiple complaints that some brokers got preferential access at the exchange’s colo servers. “We have received investigation reports from the forensic auditors and also from the internal team. We have taken into consideration their recommendations and will be initiating enforcement action on institution and individuals in the coming few days,” said Sebi chairman Ajay Tyagi, while briefing the press on Thursday. Tyagi further said that the issue was complex and have taken almost one year to finalise. He also clarified that …

NSE to introduce corporate governance code stricter than existing laws

NSE to introduce corporate governance code stricter than existing laws The exchange is in the process of creating incentives for listed corporates that adhere to these norms, which will be voluntary The National Stock Exchange (NSE) is in the process of introducing a corporate governance code that will be stricter than the existing laws and regulations. Vikram Limaye, MD & CEO, NSE said the exchange is in the process of creating incentives for listed corporates that adhere to these norms, which will be voluntary. He was speaking at the NSE-IGIDR conference on corproate governance. ‘’Companies are expected to sign up for these norms in exchange for improved visibility, higher liquidity and better quality investors. This initiative has been inspired by ‘Novo Mercado’ in Brazil, which has been highly successful. If introduced, it would be the first time in India that corporate governance would be driven by incentives rather than mandate,’’ said Limaye. Recently, market regulator Sebi in…

Feb 12 circular gives space for NPA resolution, RBI tells Finance ministry

Feb 12 circular gives space for NPA resolution, RBI tells Finance ministry The RBI made its stand clear at a stakeholders' meeting, called by the ministry to discuss the circular, the implementation of which was stayed for the power sector by Allahabad High Court. The Reserve Bank on Thursday indicated to the finance ministry that its February 12 circular on new framework for stressed assets provides enough space for resolution of bad loans in the power sector, according to a senior official. The RBI made its stand clear at a stakeholders' meeting, called by the ministry to discuss the circular, the implementation of which was stayed for the power sector by Allahabad High Court. The next hearing is on July 10. During the meeting, a broad consensus emerged on setting up of a task force of eminent experts to analyse issues related to the sector including fuel supplies, power purchase agreements and delays in payment by discoms. “RBI maintains that the circular does not stop the res…

IBC process to push consolidation in steel industry, says EY

IBC process to push consolidation in steel industry, says EY The Insolvency and Bankruptcy Code (IBC) will accelerate consolidation in steel industry and help many global players who have been struggling to enter India, EY said on Thursday. Many of the cases referred to the National Company Law Tribunal (NCLT), under the IBC process, are from the steel sector, said Anjani Agarwal, EY Partner and Global Steel Leader. "What will be the likely impact of that for the industry. That's the area of very interesting transformational subject and the whole landscape is suppose to change," he said. He was speaking during India Minerals and Metals Forum here. The IBC process being on a fast track resolution mechanism, a substantial part of the debt will be quickly realised or renewed and moved to a more sustainable cash flow structures, Agarwal said. "The intense competition amongst bidders also bodes well for potential write backs of the provisions of lenders. A healthier banking…

India slaps tariffs on 29 US items; new rates to kick in from August 4

India slaps tariffs on 29 US items; new rates to kick in from August 4 The latest list of tariff hikes has 18 iron and steel items, a potent political reply against Trump's tariff hikes in the sector. After a week of speculations, India on Thursday finally imposed higher tariff rates on 29 import items from the United States (US) but announced that new rates would kick in from August 4. India had last week notified the World Trade Organization (WTO) of its decision to impose ‘reciprocal tariffs’ on American products. The move comes after New Delhi got a cold shoulder from Washington DC on its request for exempting India from the higher tariffs announced by the US on steel and aluminium imports.  The government has not officially clarified why it chose to impose the new rates — which have been doubled for some items — from a later date instead of June 21, as had been widely expected. But senior officials in the commerce department suggested that it may have been done to provide the U…

Anti-profiteering body questions FMCG, pharma firms on GST prices

Anti-profiteering body questions FMCG, pharma firms on GST prices  The National Anti-profiteering Authority (NAA) is questioning tax heads and CFOs of about 150 consumer goods and pharma companies to find out if their stocks with the distributors and stockists on June 30, 2017 were sold at reduced rates after GST rollout. What happened to the stock held by consumer and pharma companies which was with the distributors and stockists on June 30, 2017? What price was charged to consumers when these products were sold to customers?  These are some of the questions the NAA sleuths have been seeking answers to. While many companies did announce a price cut after the GST was rolled out, that applied only to new stocks or those manufactured after July 1, 2017. NAA had issued letters to the companies including Nirma, HUL, P&G, Lupin and Sun Pharma in the last two weeks. Company executives were also quizzed about measures they took to ensure the benefits of GST were passed on to customers. Ind…

Credit growth among MSMEs getting better

Credit growth among MSMEs getting better
The credit growth in the micro, small and medium enterprises (MSME) sector is improving, with the overall exposure reaching the highest level in over a year, says MSME Pulse QuarterlyReport by Transunion CIBIL-SIDBI. The overall credit exposure has shown the highest growth in last five quarters at  Rs 54.20 trillion as on March 31, 2018, with MSMEs  constituting Rs 12.6 trillion(23 per cent) of the commercial credit outstanding. The Business Standard, New Delhi, 21st June 2018