1.MCA Zeroes in on 225,000 More Suspected Shell Companies
The government is intensifying its drive against shell companies. After taking action against 226,000 shell companies last year, the Ministry of Corporate Affairs has now zeroed in on another 225,000 suspected shell companies. The ministry has sent notices to these companies, asking whether they had filed statutory financial returns.
Minister of State for Corporate Affairs P P Chaudhary told Business Standard that companies had been given a chance to respond to the notices.
On the Rs 139-billion Punjab National Bank fraud, Chaudhary said the Serious Fraud Investigation Office (SFIO) was probing 107 companies and seven limited liability partnerships (LLPs) belonging to Nirav Modi’s Firestar Diamond Group and Mehul Choksi’s Gitanjali group.
(Source: Business Standard)
2. TCS Set To Become India’s First $100 Billion Market Cap Company
India will soon get its first $100 billion company.
Shares of Tata Consultancy Services Ltd rose as much as 6.7 percent, the most since April 2012, to Rs 3,406 apiece after the country’s largest software services provider beat fourth quarter profit estimate. The sentiment was also upbeat as the flagship of the Tata group company announced a 1:1 bonus share issue.
The surge in stock price helped the company to cross Rs 6.5 lakh crore ($98.5 billion) in market value. The company will hit $100 billion in market capitalisation once it crosses Rs 3,447 per share, assuming the current value of the rupee at 66.05 against the dollar.
(Source: Bloomberg Quint)
3. Indian Enforcement Agencies Seek Trading Ban on Virtual Currencies
India’s enforcement agencies are seeking a trading ban on bitcoin after the Reserve Bank of India recently barred banks and other payment service providers from dealing in virtual currencies.
The Central Board of Direct Taxes and the Enforcement Directorate have recommended that trading of virtual currencies like bitcoin be banned in India, an official aware of the development told BloombergQuint on the condition of anonymity. That’s because virtual currencies may be used for money laundering or financing terror activities since such transactions cannot be traced, the official said.
Representatives of the two agencies had raised these concerns at a recent meeting of the committee tasked with developing a framework for regulation of cryptocurrencies.
(Source: Bloomberg Quint)
4. Forex Reserves At Lifetime High Of $426.082 Billion
The country’s foreign exchange reserves expanded by $1.217 billion to touch a life-time high of $426.082 billion in the week to 13 April, helped by rise in foreign currency assets, the Reserve Bank of India said.
In the previous week, the reserves had increased by $ 503.6 million to reach $424.864 billion. It had crossed the $400-billion mark for the first time in the week to 8 September, 2017, but has since been fluctuating.
In the reporting week, the foreign currency assets, a major component of the overall reserves, increased by $1.202 billion to $ 400.978 billion.
Expressed in the US dollar terms, the foreign currency assets include the effect of appreciation or depreciation of the non-US currencies such as euro, pound and Japanese yen held in the reserves.
(Source: PTI)
5. Axis Bank Starts Succession Process To Replace CEO Shikha Sharma
Axis Bank Ltd has started the succession process to appoint a new managing director and chief executive officer to replace Shikha Sharma when she steps down at the end a shortened second term in December this year.
The board has roped in global leadership advisory firm Egon Zehnder to evaluate candidates for the post, the private sector lender said in an exchange filing today. Axis Bank is looking to find Sharma’s replacement before the end of her term. “This will help facilitate the smooth transition of leadership responsibilities at the bank,” the filing added.
(Source: Bloomberg Quint)
6. Cash Crunch: Over 85% ATMs Functioning, Deposits Increase in Banks
More than 85 percent automated teller machines (ATMs) started dispensing cash across the country on Friday and deposits in banks increased, leading to an improved cash flow situation, a senior finance ministry official said.
“Over 85 percent ATMs were functional on Friday. Cash deposit back to the system also improved. So, no net reduction in cash position of currency chests,” the finance ministry official said.
The share of functional ATMs will hover over 85 percent for sometime now, another finance ministry official said. The situation has improved from Monday when about 60 percent ATMs across India were dispensing cash, which went up to around 82 percent on Thursday.
(Source: Business Standard)
7. Hawkish RBI Minutes Rattle Currency, Gilts; Rupee Plunges to 13-Month Low
The jubilation over low first-half borrowing was short-lived for the bond market. The 10-year bond yield hit 7.79 percent in Friday morning trade, a level last seen in February, threatening to undo the entire gains earned since the announcement of light first-half borrowing.
Bond yields, however, recovered sharply to close at 7.66 percent, marginally higher than its previous close of 7.63 percent. The recovery was possible because of heightened buying by nationalised banks, likely as an intervention measure. It was also aided by US President Donald Trump expressing his displeasure at high oil prices, according to bond dealers.
(Source: Business Standard)
8. Shrugs off Trump Tweet to Rise for a Second Straight Week
Oil rose for a second straight week as OPEC’s commitment to rebalance the market and geopolitical risks to global supplies overshadowed US President Donald Trump’s tweet on “artificially very high” prices.
Trump’s comments came as the Organization of Petroleum Exporting Countries and allies including Russia showed willingness to further tighten oil markets and boost prices in a meeting in Saudi Arabia. West Texas Intermediate futures dropped as much as 1.2 percent early on Friday before rebounding as the impact of the tweet fizzled. They’ve risen 10 percent in two weeks.
“Trump didn’t change the fundamentals yet, he just expressed he was mad,” said Bill O’Grady, chief market strategist at Confluence Investment Management in St Louis.
(Source: Bloomberg)
(At The Quint, we are answerable only to our audience. Play an active role in shaping our journalism by becoming a member. Because the truth is worth it.)