ADVERTISEMENTREMOVE AD

QBiz: SEBI Tightens Norms for Rating Firms; Jet Shares Tank 18%

Catch the top business headlines of the day here.  

Published
Business
4 min read
story-hero-img
i
Aa
Aa
Small
Aa
Medium
Aa
Large
Hindi Female

1. Debt Default Bogey Forces SEBI to Tighten Screws on Rating Firms

The ticking time bomb of debt defaults has lead the Securities and Exchange Board of India (SEBI) to put in place a rigorous disclosure regime for credit rating agencies (CRAs).

In their score card relating to a particular issuer, the CRAs now have to specify upfront key details, which they think could lead to a default. They should also provide their rationale for their rating.

(Source: Business Line)

2. In Relief to Telcos, TRAI Told to Review Reserve Price for  5G Spectrum

The government has sought a comprehensive review of the telecom regulator’s recommendations on upcoming spectrum auctions, including reserve prices, in a relief for debt-ridden telcos clamouring for lower prices.

The department of telecommunications (DoT) made the request to the Telecom Regulatory Authority of India (Trai) to ensure competition, sale of all spectrum and bringing the benefits of 5G to social sectors, a DoT official said.

ADVERTISEMENTREMOVE AD

“The government’s goals such as broadband for all and proliferation of 5G are its highest priority. Hence, we have asked Trai to review the entire architecture of auctions... the reserve price... they will look at the participation, and the possibility of greater competition...," the official cited above said on condition of anonymity, adding that it has requested Trai to respond with revised recommendations within a month.

(Source: Livemint)

3. CAIT Meets FM for Lower GST Rates on 2-Wheelers, Ice Cream; Requests Digital Payment Charge Waiver

Traders’ body CAIT has requested the newly appointed Finance Minister Nirmala Sitharaman to review the tax structure for all the items and bring about a reduction in the same, CAIT General Secretary Praveen Khandelwal told Financial Express Online. It has also asked for a lowering down of GST slab for aluminium products rate to 12 per cent and the auto parts to 5 per cent as auto parts are considered raw material, he added. CAIT suggested a reduction in the tax rate for items like hardware, mobile covers, ice cream, health drinks, paints, marble, used vehicles, and two-wheelers as well.

The erstwhile Defence Minister Nirmala Sitharaman has also released the white paper for GST reforms. The traders’ body has dealt with issues pertaining to GST, MUDRA, and digital payments etc in the Thursday meeting with the finance minister.

(Source: Financial Express)

0

4. Jet Airways Shares Tank Nearly 18% After Bourses Announce Trading Restrictions

Shares of Jet Airways on Thursday cracked nearly 18 per cent after stock exchanges decided to impose restrictions on its stock trading from June 28.

The scrip plunged 16.71 per cent to close at Rs 91.95 on the BSE. During the day, it dropped 23.18 per cent to Rs 84.80, its multi-year low.

On the NSE, shares tumbled 17.72 per cent to close at Rs 90.75.

In terms of traded volume, 35.05 lakh shares were traded on the BSE and over three crore shares changed hands on the NSE during the day.

(Source: Business Line)

5. NBFC Liquidity, AIFs Figure in FM's Pre-Budget Meet with Financial Sector

Ahead of the Union Budget, top officials from banks, insurance companies, Non-Banking Financial Companies (NBFCs) had sought an urgent solution for the liquidity crisis surrounding NBFCs and to improve banks’ ability to lend.

“The main areas of discussion during the meeting included issues relating to the capital markets, financial sector, Non-Banking Financial Companies (NBFCs) and Alternative Investment Funds (AIFs), among others," the Finance Ministry said in a statement.

The representatives suggested capital infusion in regional banks, review of interest rates of the government’s small savings schemes, creation of dedicated liquidity window for NBFCs.

(Source: Livemint)

6. Centre Reduces ESI Contribution to 4% for Industrial Workers

The Prime Minister Narendra Modi-led government on Thursday reduced the salary contribution of industrial workers who are eligible for healthcare benefits under the Employees’ State Insurance Act (ESI) Act from 6.5 per cent to 4 per cent.

ADVERTISEMENTREMOVE AD

The move is aimed at formalising India’s informal workforce and expanding social security coverage.

The ESI Act, 1948, applies to organisations with 10 or more employees, drawing a salary of up to Rs 21,000. The scheme, which is governed by the state-administered Employees’ State Insurance Corporation (ESIC), provides for medical, cash, maternity, disability, and dependent benefits to the insured.

(Source: Livemint)

7. Indiabulls Group Shares Rally After Petition Withdrawn from Supreme Court

Shares of Indiabulls Housing Finance on Thursday closed 11.78% higher after a petition alleging misappropriation of funds was withdrawn from the Supreme Court. In fact, share prices of all Indiabulls group companies rallied. Indiabulls Real Estate ended 5.06 per cent higher, Indiabulls Ventures rose 12.2 per cent and Indiabulls Integrated Services ended 4.98 per cent higher.

Abhay Yadav, who had filed a petition against promoter Sameer Gehlaut and the company alleging fund misappropriation, has withdrawn the same. Yadav in his affidavit said, “That I am not aware of the contents and allegations mentioned in the complaints or the petition. I now realise that such papers, affidavits, applications, etc signed by me have been misused to file false complaints and petitions against Indiabulls with malafide intentions.”

(Source: Financial Express)

8. Tax Sops Sought to Boost Investments in Corporate Bonds, Term Plans

Financial sector and capital market players on Thursday pitched for higher tax incentives for retail investors who put money in instruments such as corporate bonds and term plans. They also urged the government to lower duty on small savings so that mobilisation through bank deposit does not get affected.

ADVERTISEMENTREMOVE AD

These are part of suggestions given during the pre-Budget meeting the financial and capital market players had with Finance Minister Nirmala Sitharaman. Suggestions also included infusion of capital in niche/regional banks, enhanced role for the Financial Sector Development Council, review of banking NPA provisions by setting up a committee, enhancing financial literacy programmes and funding, besides others.

(Source: Business Line)

9. Debit Cards Continue Digital Payment Dominance

Debit cards continue to dominate the digital payment space, with 1.21 billion transactions worth Rs 3.39 trillion during April, data released by the Reserve Bank of India (RBI) showed.

Out of this, 808.91 million transactions worth Rs 2.84 trillion took place via ATMs, with the rest through point of sale (POS) terminals.

There were 14.27 billion debit card-based transactions in 2018-19, up 19.4 per cent from a year earlier. Value of such transactions grew 16.2 per cent on year to Rs 39.04 trillion, data showed.

(Source: Livemint)

(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.)

Read Latest News and Breaking News at The Quint, browse for more from news and business

Topics:  SEBI   QBiz   Jet Airways 

Speaking truth to power requires allies like you.
Become a Member
3 months
12 months
12 months
Check Member Benefits
Read More
×
×