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QBiz: SEBI to Get Tough on Infosys; Jio Pays Rs 195 Cr AGR Dues

Your daily round-up of the latest business news on QBiz.

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1. SEBI Plans to Get Tough on Infosys, Order Forensic Probe of Allegations

The markets regulator is set to order a forensic audit into Infosys Ltd’s books following whistleblowers’ allegations that its top executives were involved in financial irregularities, two people with direct knowledge of the matter said.

The Securities and Exchange Board of India’s (SEBI’s) decision comes after Infosys’s internal audit committee on 10 January concluded that the charges made by the whistleblowers were substantially without merit. The findings of the internal audit were shared with the regulator.

“The findings that it has come to is immaterial to Sebi’s probe. The regulator’s investigation so far has in fact warranted a deeper analysis. Sebi is in the process of appointing a forensic auditor for a thorough examination of the allegations of unethical practices," said one of the two people cited above, requesting anonymity.

(Source: Mint)

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2. Jio Pays Its Rs 195 Crore Dues; Other Telcos to Pay Only After SC Hearing

With the deadline for paying the adjusted gross revenue (AGR) dues ending on Thursday, 23 January, telecom operators Bharti Airtel and Vodafone Idea intimated the department of telecommunications (DoT) that they will not be paying their dues totalling Rs 88,625 crore, for now. They said they would wait for the outcome of their modification petition listed for hearing before the Supreme Court next week.

The companies said that they will comply with the court’s order and pay but since the court has agreed to hear their petition regarding staggered payment, they would like to wait for it before they make the payment.

Meanwhile, DoT directed its departments not to take any coercive action, until further orders, against telecom operators if they fail to clear their AGR dues as per the Supreme Court order.

(Source: Financial Express)

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3. Govt Seeks Rs 10,000-Cr Interim Dividend From RBI to Bridge Fiscal Gap

The central government has demanded Rs 10,000 crore as interim dividend from the Reserve Bank of India (RBI) for financial year 2019-20 (FY20) to bridge the fiscal gap, sources said. This is the third consecutive year when the government has demanded interim dividend.

This demand comes at a time when the government is falling short of its revenue targets due to dwindling tax and low disinvestment receipts. It could account for the dividend in the upcoming Union Budget on 1 February. RBI is, however, yet to take a final call on the government’s demand.

(Source: Business Standard)

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4. One Nation, One Road Tax May Soon Be a Reality

The Union government is making a renewed push to get states on board to levy a uniform road tax for personal vehicles across the country, a senior government official said.

The move is expected to bring relief to automobile buyers, while also helping protect revenue of states as some consumers tend to purchase vehicles in states with lower taxes, resulting in a loss of revenue for those with higher taxes.

“In a recent meeting with the Centre, states have said they are on board to implement uniform (road) tax," the official cited earlier said on condition of anonymity.

Senior officials of some states, however, said they are weighing the Centre’s proposal, as a rejig in tax rates will have fiscal implications. A senior Kerala government official said the state will take a final call after its budget session, slated to begin in the next few weeks.

(Source: Mint)

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5. Banking Consortium Declares Rs 14,000-Cr ABG Shipyard Loan 'Fraud' Account

The ICICI Bank-led banking consortium to ABG Shipyard has declared its Rs 14,000-crore exposure to the company as a ‘fraud’ account. State Bank of India (SBI), ICICI Bank, and IDBI Bank have the lion’s share of exposure – in excess of 50 percent.

With the account being declared ‘fraud’, banks are not expected to make additional provisioning; it has been already classified a non-performing asset. ABG Shipyard was among the ‘dirty dozen’ companies referred by the Reserve Bank of India (RBI) to be taken up under the Insolvency & Bankruptcy (IBC) mechanism.

(Source: Business Standard)

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8. Voda Idea’s Fund Plans Hinge on SC

Vodafone Idea Ltd, which is struggling to stay afloat after the top court ordered it to pay Rs 50,000 crore in past dues to the government, has initiated talks with investors to raise funds, two people directly involved in the process said.

The plan to raise funds from financial investors, including private equity firms will, however, depend on whether the Supreme Court modifies its October judgement to allow for easier terms of payment and the government provides a waiver on interest payments, the two people said on condition of anonymity.

“The company is talking to investors to raise external financing, given that both Vodafone and Birla group are unlikely to pump in more money. Investors are drawing comfort from the fact that the price war is over and with recent price hikes, they expect average revenue per user to grow substantially," one of the two people said.

(Source: Mint)

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7. PNB Housing Finance Net Falls 22%, Asset Quality Deteriorates

Mortgage lender PNB Housing Finance on Thursday posted a 22 percent decline in its net profit to Rs 237 crore for the December quarter, compared with Rs 303 crore a year ago, due to an increase in finance cost, contraction in margins and a dismal growth in interest income. Sequentially, the net profit was down 54 percent. The dent in the bottom line was despite a benefit of Rs 30 crore in the form of deferred tax in the quarter under review.

The Q3 net interest income (NII) saw a muted growth of Rs 566 crore, compared with Rs 558 crore last year. The net interest margin (NIM) declined to 2.98 percent, compared to 3.06 percent a year ago and 3.19 percent in the previous quarter.

(Source: Financial Express)

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8. RBI Ups Investment Limit for FPIs in Govt, Corporate Bonds

The Reserve Bank of India on Thursday, 23 January, raised the investment limit for FPIs in government and corporate bonds to bring in more foreign funds into the market.

Currently, short-term investments by a foreign portfolio investors (FPI) should not exceed 20 percent of the total investment of that FPI in either central government securities (including treasury bills) or state development loans or corporate bonds.

The short-term investment limit has now been increased from 20 percent to 30 percent in both cases, the RBI said in a circular.

The central bank has also made a relaxation in the voluntary retention route (VRR) for FPI investments in debt. The investment cap through VRR has been doubled to ₹1.5 lakh crore, the RBI said in another circular.

(Source: IANS)

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9. If I Was Not a Minister Today, Would Be Bidding for Air India: Piyush Goyal

As the government works on divesting its stake in debt-laden Air India, Union Minister Piyush Goyal on Thursday, 23 January, said if he was not a minister, he would be bidding for the airline. Air India has been in the red for long and the government is now in the process of finalising the contours of its disinvestment.

Responding to a query about proposed disinvestment of Air India, BPCL and other companies, Goyal said in the first term, the government had inherited an economy that was in terrible shape. Steps were taken to put the economy back in shape and if the government had looked at divesting these jewels, it would not have got great value.

(Source: PTI)

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