QBiz: CIC Issues Show-Cause to RBI Governor; SBI to Sell 11 NPAs

1. Aircel-Maxis Case: NSE’s Ashok Chawla Now Under SEBI Probe

The Securities and Exchange Board of India (SEBI) is evaluating Ashok Chawla’s eligibility to continue as chairman of the National Stock Exchange (NSE) after the Central Bureau of Investigation (CBI) named him in a charge sheet, prompting multiple complaints, two people aware of the matter said. SEBI received the complaints in the first week of October and started its scrutiny the same week, said the first of the two people, both of whom asked not to be identified.

The charges against Chawla relate to a CBI probe into suspected corruption in the Aircel-Maxis case. On 19 July, CBI, as part of its investigation, filed a charge sheet naming 18 individuals, including Chawla. On 1 October, Special CBI judge OP Saini set for the investigative agency a deadline of 26 November to secure the government’s nod to prosecute Chawla and others.

(Source: LiveMint)

2. RBI Kick-starts Process to Set Up PCR for Capturing Details of Borrowers

The Reserve Bank has initiated steps to set up a wide-based digital Public Credit Registry (PCR) to capture details of all borrowers, including willful defaulters and also the pending legal suits in order to check financial delinquencies. The PCR will also include data from entities like market regulator Sebi, the corporate affairs ministry, the Goods and Service Tax Network (GSTN), and the Insolvency and Bankruptcy Board of India (IBBI) to enable the banks and financial institutions to get 360 degree profile of existing and prospective borrowers on a real-time basis.

The Reserve Bank has invited expression of interest (EOI) for developing the registry from companies with a turnover of over Rs 100 crore in the last three years.

(Source: LiveMint)

3. SBI Puts Up 11 NPA Accounts for Sale to Recover Rs 1,019 Crore Dues

SBI has put up 11 non-performing assets (NPAs) for sale to ARCs and financial companies to recover dues of nearly Rs 1,019 crore. The country’s largest lender said the e-auction of these NPA accounts will take place on 22 November.

“In terms of the bank’s policy on sale of financial assets in line with the regulatory guidelines, we place these accounts for sale to ARCs/Banks/NBFCs/FIs,” SBI said in an auction notice on its website.

Of these 11 accounts, Janki Corp Ltd has the highest outstanding dues of Rs 592.53 crore.

(Source: LiveMint)

4. 75 Lakh New Tax Filers Added to IT Net

About 75 lakh new tax filers have been added to the income tax payers list in the country this fiscal till now, a senior official said. The target for the taxman is to add 1.25 crore fresh tax filers by the end of the 2018-19 financial year that ends in March next year, as per a directive of the Central Board of Direct Taxes (CBDT).

The CBDT frames policy for the Income Tax Department (ITD). “About 75 lakh fresh tax fliers have been added to the income tax list till now in this fiscal. A number of policy and enforcement measures undertaken to check tax evasion are the reasons that can be attributed for achieving these numbers. “The department is hopeful that it will achieve the target of adding 1.25 crore tax filers as there are still few months left for the 2018-19 financial year to close,” the official said.

(Source: The Hindu Business Line)

5. CIC Issues Show-Cause Notice To RBI Governor Urjit Patel For Non-Disclosure Of Willful Defaulters

The Central Information Commission has issued a show-cause notice to Reserve Bank of India Governor Urjit Patel for "dishonouring" a Supreme Court judgment on disclosure of willful defaulters' list.

The CIC has also asked the Prime Minister’s Office, the Finance Ministry, and the RBI to make public, former RBI Governor Raghuram Rajan’s letter on bad loans.

Irked over the denial of information on the disclosure of the names of willful defaulters who have taken bank loans of Rs 50 crore and above by the RBI in spite of a Supreme Court order, the CIC has asked Patel to explain why a maximum penalty not be imposed on him for "dishonouring" the verdict, which had upheld a decision taken by the then Information Commissioner Shailesh Gandhi, calling for disclosure of names of willful defaulters.

(Source: BloombergQuint)

5. Higher Gold Prices Dampen Jewellery Sales this Festival Season

The sudden spike in gold prices to Rs 33,000 per 10 gram-level is expected to drag down the demand for the yellow metal during Dhanteras and the festival season.

The sharp depreciation of rupee against dollar for the last few days has been pushing up gold prices despite weak demand.

(Source: The Hindu Business Line)

6. Govt Plans to Sell Up to 25% Stake in TCIL via IPO in Jan-March Quarter

The Finance Ministry is planning an initial public offering (IPO) to sell up to 25 percent stake in telecom engineering and consultancy firm TCIL in the January-March quarter of the current fiscal, an official said.

The ministry is planning to list four Central Public Sector Enterprises (CPSEs) and work on launching the IPO of Telecommunications Consultants India Ltd (TCIL) has begun, the official added.

(Source: Business Standard)

7. Reliance Industries Uses Blockchain for Export Payment

In a first for India, British banking major HSBC has executed a trade finance transaction involving an export by Reliance Industries to an American client using the blockchain, which massively reduced the time taken for processing the documents.

The blockchain-enabled letter of credit transaction facilitated a shipment between Reliance and the US-based Tricon Energy, a joint statement issued by HSBC India and Reliance said.

(Source: The Financial Express)

8. UPI-Based Payments for IPOs from 1 Jan 2019 in a Three-Phased Manner

Capital market regulator Sebi on Thursday, 1 November, said Unified Payments Interface (UPI) payment mechanism for public issues will commence from 1 January, 2019.

The move will help reduce the time period between closing of an initial public offering (IPO) and listing of the security from six working days to just three working days.

The implementation of new payment system for IPOs will be carried out in a three-phased manner.

(Source: Business Standard)

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