QBiz: Unlisted Firms May Have to Issue Shares in Demat Form & More

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1.Government Looks to Meet 75% of FY19 Selloff Target by December

The government is looking to complete nearly three-fourths of its disinvestment target by the end of December and has a pipeline of about 15 companies in which it will sell stakes to achieve this interim goal.

The government has so far raised around Rs 9,200 crore against the target of Rs 80,000 crore for FY19. It will need to generate another Rs 50,000 crore more to reach the Rs 59,000 crore year-end objective. The companies lined up for stake sales include NTPC, Coal India, MMTC and three railway funds.

(Source: Economic Times)


2. SAIL Set to Exit Non-Performing, Non-Operational Joint Ventures

India’s largest steel maker SAIL has started the process to exit some of its joint ventures that are either non-operational or non-performing, the public sector major has said in a report.

The steel maker is also exploring options to monetise its investment in certain JV companies, the latest report said.

“SAIL has initiated actions for closure/exit from certain joint venture (JV) companies which are either non-operational or non-performing,” Steel Authority of India Ltd (SAIL) said in its annual report 2017-18.

(Source: Livemint)

3. Govt Plans to Make Compulsory for Unlisted Firms to Issue Shares in Demat Form

The government will soon make it mandatory for unlisted companies to issue new shares only in the dematerialised form, senior officials said, amid intensified efforts to fight the black money menace.

Besides, the unlisted corporates would have to ensure that shares are transferred only in dematerialised (demat) or electronic form.

Initially, these regulatory requirements, expected to be effective from the first week of October, would cover more than 70,000 public companies, two senior government officials told PTI.

Officials said that to begin with, issuance of new shares and transfer of shares by unlisted companies would have to compulsorily be in the demat form and that the decision has been taken after extensive discussions with stakeholders.

(Source: Livemint)


4. 51,837 Industries in Delhi Under National Green Tribunal Scanner

The National Green Tribunal has directed the Central Pollution Control Board (CPCB) to constitute a committee to enquire about the status of 51,837 industries in the national capital which are running in residential areas without requisite approvals.

The green panel asked the apex pollution monitoring body to form a two member committee to look into the entire matter and take appropriate action in accordance with law.

“The North Delhi Municipal Corporation, East Delhi Municipal Corporation, South Delhi Municipal Corporation, Delhi State Industrial and Infrastructure Development Corporation and Delhi Development Authority will co-operate and provide all assistance to the Committee constituted by the CPCB,” a bench, headed by NGT Chairperson Justice Adarsh Kumar Goel, said.

(Source: The Financial Express)

5. Bankers Burning Midnight Oil to Resolve Rs 3.8 Trillion NPAs

With the six-month deadline set by Reserve Bank of India to finalise resolution plans for around 70 large stressed accounts worth over Rs 3.8 trillion ending on 27 August, banks are burning midnight oil to avoid bankruptcy proceedings against these defaulters who are mostly power producers.

Bankers prefer out-of-NCLT resolution as the bankruptcy resolution so far have seen them taking large haircuts which in cases like Alok Industries was a whopping 86 per cent. The RBI circular asks banks to identify projects with even a day’s default as stressed assets, and conclude resolution proceedings in 180 days. The circular came into effect on 1 March and the 180-day deadline concludes on 27 August.

(Source: The Hindu Business Line)


6. Donald Trump Says US-Mexico Trade Deal Could Be Imminent

US President Donald Trump tweeted on Saturday that the United States could reach a “big Trade Agreement” with Mexico imminently.

“Our relationship with Mexico is getting closer by the hour. Some really good people within both the new and old government, and all working closely together,” Trump wrote. “A big Trade Agreement with Mexico could be happening soon!”

Earlier, Trump has threatened to dump the 24-year-old accord between the United States, Mexico and Canada if it is not reworked to the advantage of the United States.

(Source: Livemint)

7. NBFCs to See up to 35-40% Rise in Hiring in Next 1 Year, Say Experts

Hiring activity in the non-banking financial companies (NBFC) sector is likely to expand by up to 35-40 percent in the next 12 months driven by rising innovation and growth, according to industry experts.

The ability of NBFCs to tap ‘unbanked’ customer base at a time when the banks are facing headwinds in coming out of the NPA mess is driving the growth in the sector, they explained. Experts see increased hiring in tier-II cities for roles in sales, collection underwriting and risk.

TeamLease head, recruitment services, Ajay Shah told PTI that as banks are struggling to come out of the non-performing assets (NPAs), NBFCs are in a sweet spot of growing consumer demand.

(Source: The Financial Express)


8. T Rowe Price Needn’t Trim its Stake in UTI MF, Says SEBI chief

Global asset management firm T Rowe Price International can retain its stake in UTI Mutual Fund, with market regulator SEBI taking the view that the firm has not violated cross-holding norms by holding stakes in mutual fund (MF) companies outside India.

Two other large shareholders in UTI MF — SBI and LIC — had called for a stake reduction by T Rowe Price on the grounds that SEBI’s new cross-holding norms should not make a distinction between domestic and foreign shareholders.

(Source: The Hindu Business Line)

9. A Handful of States Account for 70% of MF Assets

The mutual fund industry (MF) is on a roll with assets under management (AUM) doubling from about ₹11 lakh-crore in July 2014 to nearly ₹24 lakh-crore in July 2018. But what has not really changed much is the continued dominance of a few States and cities in the total pie.

Of the 36 States and Union Territories (UTs), just five — Maharashtra, Delhi, Karnataka, Gujarat and West Bengal — account for more than 70 per cent of the total AUM of the MF industry as of July 2018. In July 2014, their share had been about 73 per cent.

Add three more — Haryana, Tamil Nadu and Uttar Pradesh — to the equation, and the top eight States account for close to 84 per cent of the AUM as of July 2018, not very different from their nearly 85 per cent share in July 2014.

(Source: The Hindu Business Line)

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