1. Supreme Court Provides Interim Relief to Stressed Power Firms
The Supreme Court on Tuesday, 11 September, granted interim relief to stressed power firms, directing lenders to maintain a status quo on the Reserve Bank of India’s circular for banks to resolve these cases within 180 days.
The apex court directed that all pleas filed by the central bank related to the February circular should be transferred to it and it will hear the matter on 11 November.
Several petitioners, including GMR Energy Ltd; RattanIndia Power Ltd, a Punjab-based textile company; Association of Power Producers (APP); Independent Power Producers Association of India; Sugar Manufacturing Association from Tamil Nadu and a shipbuilding association from Gujarat, had intervened in the matter in different courts.
(Source: LiveMint)
2. Raise Limits on Loans Granted Through OTP-Based E-KYC: Niti Aayog
Niti Aayog chief executive Amitabh Kant Tuesday, 11 September, pitched for increasing the limits on loans granted through one time password-based electronic know your customer (KYC) verification.
Kant said the current system of using biometric Aadhaar-authentication for small ticket loans will increase already high operating expenses of digital lenders.
“Currently, lending through OTP-based e-KYC is capped at Rs 60,000 whereas the loan size through online digital mode, as per market data points, is approximately around Rs 3.5 lakh,” Kant said in video address at a Bankbazar event in Mumbai.
(Source: LiveMint)
3. Sensex, Nifty Fall the Most in Six Months; Rupee Tumbles to Record Low
Benchmark equity indexes Sensex and Nifty fell the most in nearly six months to their lowest close in six weeks as trade war tensions kept world markets on edge. The rupee hit a new record low against the dollar, rattling investor sentiment.
The BSE’s 30-share Sensex fell 1.34 percent, or 509.04 points, to 37,413.13 points, while the National Stock Exchange’s 50-share Nifty fell 1.32 percent to close at 11,287.50 points.
It was the biggest fall for both indices since 16 March, and the lowest close since 2 August. In the last two days, the Sensex has fallen 976.69 points or 2.54 percent.
(Source: LiveMint)
4. Essar Steel: SC To Hear ArcelorMittal’s Plea Against NCLAT Decision On Wednesday
The Supreme Court will hear ArcelorMittal’s plea on its eligibility to bid for Essar Steel Ltd on Wednesday, 12 September. While the apex court heard the petition on Tuesday, ArcelorMittal said it was eligible for bidding and it shouldn’t be forced to pay the Rs 7,000 crore dues of Uttam Galva Steels Ltd and KSS Petron Ltd.
On 7 September, the National Company Law Appellate Tribunal had noted that ArcelorMittal can be eligible for bidding only if it clears dues worth Rs 7,000 crore in Uttam Galva Steels and KSS Petron Pvt Ltd by 11 September, ArcelorMittal challenged the decision as the NCLAT allowed for Numetal Mauritius, the other bidder in the process, to be eligible after changing its shareholding structure.
(Source: BloombergQuint)
5. Aadhaar Enrolment Database Compromised, UIDAI Dismisses Reports
After an investigation by HuffPost revealed the existence of a software patch that can be used to disable critical security features of the Aadhaar enrolment software, the UIDAI has dismissed the report in a statement.
“No operator can make or update Aadhaar unless the resident himself gives his biometric. Any enrolment or update request is processed only after biometrics of the operator is authenticated and resident’s biometrics is de-duplicated at the backend of UIDAI system,” UIDAI said.
According to the HuffPost investigation, the easy availability and widespread use of the patch has potentially compromised the biometric and personal data of over a billion enrolled Indians.
(Source: BloombergQuint)
6. Government To Finalise Revamped Rules For Coal Mine Auctions
India is finalising revamped rules that govern coal auctions, an official said on condition of anonymity, as it aims to attract more bidders after poor response to recent auctions.
The move gains importance as thermal power plants — or those that generate electricity by burning coal — meet nearly three-fourths of India’s energy requirements. At least two recent coal auctions were cancelled after no bidder evinced interest. The official, while blaming the poor response on strict conditions, said the government is confident of holding fresh coal mine auctions this fiscal based on the new rules.
A high-powered committee chaired by former Central Vigilance Commissioner Pratyush Sinha, the official said, has made relevant recommendations in a report submitted to the government.
(Source: BloombergQuint)
7. Govt Policies Pose Biggest Risk to India Inc in Next 3 Yrs: Deloitte Survey
Government policies pose the biggest risks for companies over the next three years, followed by cyber security and technology disruptions, a survey of over 100 top company executives has revealed.
The primary reason for this trend is that CXOs are considering regulatory compliance as a critical value protector exercise, the Deloitte India Risk Survey 2018 noted.
The survey showed a divide on the viewpoint of risk management amongst Indian organisations.
While 44 percent of businesses harness risks to find future opportunities and drive returns, 36 percent use risk management with an aim to drive compliance and prevent losses.
(Source: Business Standard)
8. RBI Submitted a List of High Profile Fraud Cases to PMO, Says Raghuram Rajan
A list of high profile cases related to banking frauds was sent to the Prime Minister’s Office (PMO) for a coordinated action, said former RBI Governor Raghuram Rajan in a note to Parliamentary panel.
In the note to Chairman of Estimates Committee Murli Manohar Joshi, Rajan said that the size of frauds in the public sector banking system has been increasing, though still small relative to the overall volume of NPAs.
“The RBI set up a fraud monitoring cell when I was Governor to coordinate the early reporting of fraud cases to the investigative agencies. I also sent a list of high profile cases to the PMO urging that we coordinate action to bring at least one or two to book. I am not aware of progress on this front. This is a matter that should be addressed with urgency,” he said.
(Source: PTI)
9. SEBI Show-Cause Notice to Prannoy, Radhika Roy for Alleged Violation
Media firm NDTV's promoters Prannoy Roy and Radhika Roy have received a show cause notice from the capital markets regulator SEBI for alleged violation for insider trading regulations.
"Prannoy Roy and Radhika Roy, the promoters of New Delhi Television Ltd (NDTV)..., have informed the company that on September 10, 2018, they have received a show cause notice dated August 31, 2018... by the Securities and Exchange Board of India (SEBI)," NDTV said in a regulatory filing.
NDTV said the notice has been issued alleging violation of provisions of Section 12A (d) and (e) of SEBI Act read with Regulation 3(i) and Regulation 4 of SEBI (Prohibition of lnsider Trading) Regulations, 1992.
(Source: Business Standard)
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