QBiz: 5 Promoters Face Rs 13 Cr Fine by SEBI; Bank Stocks Plunge
Catch all the business news of the day here.
1. Sebi Slaps Over Rs 13 Cr Fine on 5 Promoters
Markets Regulator Sebi on Monday, 28 January, slapped a total fine of over Rs 13 crore on five entities belonging to promoters and persons acting in concert (PAC) of Gujarat Arth Ltd for manipulative trading and violating insider trading provisions.
In an order, the regulator imposed a fine of Rs 2.53 crore each on the five entities –Shiv Kumar Agarwal, Rosydevi Agarwal, Madhudevi Agarwal, Roselabs Ltd and Pawankumar Agarwal.
Besides, an additional penalty of Rs 7.73 lakh, 12.38 lakh and 15 lakh was imposed on Shiv Kumar, Roselabs and Pawankumar, respectively.
2. Bank Stocks Plunge the Most on Monday
As fears of IL&FS default continue to haunt markets, financials and bank stocks plunged the most on Monday, 28 January. Nifty Bank index ended nearly 2 percent lower at 26,653. The benchmark Sensex plummeted over 368 points to close at 35,657, while the Nifty tumbled 119 points to end at 10,661.55 amid weak global cues.
(Source: Financial Express)
3. ICICI Case: CBI to Call Suspects for Questioning
Advised by Union Minister Arun Jaitley to avoid "adventurism", the CBI will start calling suspects in the ICICI Bank case involving its former CEO Chanda Kochhar for questioning after completing scrutiny of documents seized during searches last week, officials said on Monday, 28 January.
The CBI is carrying out scrutiny of the documents seized during searches at the offices of Videocon Group and Nupower Renewables and Supreme Energy, run by Chanda Kochhar's husband Deepak Kochhar, they said.
4. Jet’s Debt to Equity Plan Could be Flight to Safety
Jet Airways (India) Ltd will seek approval from its shareholders to convert a portion of its debt into equity, a move that is expected to bolster the cash-strapped airline while paring the stakes of founder and chairman Naresh Goyal as well as Etihad Airways PJSC.
In an extraordinary general meeting (EGM) on 21 February, shareholders would vote on a proposal to raise its authorised share capital from Rs 200 crore to Rs 2,200 crore through a special resolution, Jet Airways said in a regulatory filing on Monday, 28 January.
5. Mutual Funds Have Exposure of Rs 11,000 Cr in Essel Group Firms
Indian fund houses have an exposure of about Rs 11,000 crore to the Essel Group companies, both on equity and debt sides. Over Rs 8,000 crore of the total exposure is currently held by 150 debt schemes by the top fund houses.
(Source: Financial Express)
6. Ajit Dayal, 4 Former Tata Group Executives to Raise $1 Bn Fund
Mutual fund veteran Ajit Dayal, former Tata brand custodian Mukund Rajan and at least three other former Tata Group executives floated a $1-billion private equity fund along with Quantum Advisors mutual fund on Monday, designed to invest solely in publicly listed companies that promote environment, social and governance (ESG) values.
7. Follow Prudential Norms For Credit Without Being Excessively Conservative: Das to Banks
Reserve Bank of India Governor Shaktikanta Das on Monday, 28 January, asked banks to extend credit while observing prudential norms without getting excessively conservative.
During his interaction with the chief executive officers (CEOs) of the state-owned banks, Das highlighted the importance of public sector banks (PSBs) for the economy at all times and especially at the current juncture in helping meet broader economic goals. He also flagged "the need for PSBs to extend credit while observing prudential norms but without excessive conservatism".
8. Moody's Affirms Ratings of Lodha Developers
Credit rating agency Moody's on Monday, 28 January, said it has affirmed the ratings of corporate family and bonds issued by realty major Lodha Developers but changed the outlook to stable from positive on weak operating sales during the first half of this fiscal.
Lodha Developers, however, said the company's two transactions – divestment of London assets and fund raise of about Rs 500 crore in Palava township – have not been considered while assigning the ratings.
9. Several State-Owned Banks Will be Profitable by Year-End: Goyal
Our Bureau The Centre is confident of several public sector banks (PSBs) turning profitable at the end of the current fiscal, Interim Finance Minister Piyush Goyal said on Monday, 28 January.
All the 21 PSBs recorded operating profits at the end of FY18, but due to higher provisioning, all of them, barring Vijaya Bank, recorded net losses. At the end of September 2018, the PSBs together recorded an operating profit of Rs 36,757 crore. Many are expected to be back in the black at the end of this fiscal, said Goyal.
(Source: Hindu Business Line)
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