1. K'taka Waives Rs 8,165 Cr in Farm Loans, Cites Weak Monsoon for Decision
Karnataka joined states such as Uttar Pradesh, Punjab and Maharashtra to announce part waiver of farmer loans taken from cooperative banks, as the ruling Congress gears up for elections next year.
The loan waiver of Rs 8,165 crore that would benefit 22,27,506 farmers is limited to Rs 50,000 each farmer for loans availed till 20 June.
Chief Minister Siddaramaiah, who also holds the finance portfolio, has so far maintained that waiving of loans would be a disservice to honest people who repay loans. But three consecutive years of drought and a weak monsoon this year has forced him to change track.
Source: Business Standard
2. SEBI Eases Takeover Regulations to Facilitate Bad Loan Resolution
The board of market regulator Securities and Exchange Board of India, on Wednesday, eased takeover regulations to facilitate the restructuring of stressed assets.
The regulator eased regulations for listed companies, allowing shareholders and lenders to divest their equity shareholding acquired through the conversion of debt into equity to investors, without the requirement of a mandatory open offer.
Currently, relaxations are available to lenders for undertaking restructuring of the company under the Strategic Debt Restructuring (SDR) norms of the Reserve Bank of India. Lenders are exempted from the preferential issue guidelines – SEBI (Issue of Capital and Disclosure Requirements) Regulations, 2009 – and from the open offer regulations under the SEBI (Substantial Acquisition of Shares and Takeovers) Regulations, 2011.
Source: BloombergQuint
3. Companies Reduce Supplies Ahead of Transition to GST
A leading consumer appliances maker will stop taking fresh orders from its dealers starting Thursday. This will ensure that the company clears all pending orders in the next two-three days and spends the following four-five days to update its system for transition to the goods and services tax (GST) from 1 July.
Between 25 and 30 June, the company's dispatches will either stop or slow down to a minimum.
Companies across several sectors have decided to stop dispatches or keep them to a minimum during the last days of June to ensure they are ready for the switchover to GST and their dealers and distributors are not saddled with excess stocks.
Source: Times of India
4. Lenders to Decide Fate of Bhushan and Essar Steel Today
Banks led by State Bank of India will decide on Thursday the fate of three large defaulters – Essar Steel, Bhushan Steel and Electrosteel Steels – which constitute nearly half the loans of the top 12 defaulters identified by the Reserve Bank of India, thus marking a significant phase in the effort of lenders to clean up bad loans.
These three borrowers have to repay loans worth over Rs 1 lakh crore, as the 12 accounts constitute 25%, or Rs 2.5 lakh crore, of the total bad loans in the banking system.
The lenders and borrowers will meet on Thursday to discuss the possibility of the losses that banks would have to incur in reorganising these loans, and the amount of equity that promoters will have to bring in, said two bankers who did not want to be identified.
(Source: Economic Times)
5. Uber Saga Shows Investors' Growing Role in Startups
The abrupt resignation of Travis Kalanick as Uber’s CEO under pressure from investors has focused the spotlight on the role of the governing boards of Internet companies in India as well.
Investors are increasingly becoming more involved in steering the fortunes of domestic Internet companies after pouring in millions of dollars into them in 2014 and 2015.
Source: Economic Times
6. Banks Can Deposit Banned Rs 500, Rs 1,000 Notes With RBI by 20 July: Govt
The government has permitted banks and post offices to deposit junked Rs 500 and Rs 1,000 notes with the Reserve Bank by 20 July.
This is the second window the government has provided to banks, post offices and cooperative banks for depositing the junked notes with RBI.
The earlier window was open till 31 December, a day after the 50-day period of demonetisation of high value currency.
Source: Business Standard
7. Faced With Suit, Patanjali Takes Back Trademark Application
Patanjali Ayurved has withdrawn its trademark applications for soap brand Ojas after rival Charak Pharma filed a case in the Bombay High Court alleging the brand is deceptively similar to its herbal tablets and syrups brand name Ojus.
In the court, Patanjali lawyers gave undertaking it will withdraw the application for Ojas brand name. A lawyer representing Charak Pharma said the court also directed Patanjali not to sell products under that brand.
Source: Economic Times
8. Tata Group May Be Eyeing Stake in Air India
The Tata group is believed to be discussing buying a stake in debt-laden Air India amid the government looking at various options, including full or partial privatisation, to revive the national carrier, people familiar with the development said.
When contacted, a Tata group spokesperson said, "We don't comment on speculations."
Staying afloat on taxpayers' money, Air India has been in the red for long and various proposals, including government think-tank NITI Aayog's suggestion for complete privatisation, have been made.
Source: BloombergQuint
9. Reliance Industries May Declare Jio Results Separately From Q2
Mukesh Ambani owned Reliance Industries is likely to formally declare separate results for Reliance Jio Infocomm (Jio) only from the July-September quarter and not the quarter to June.
"The board will take the final call but that’s the thought process. The company wants the business to settle down and then report numbers separately," said a person familiar with the matter. "There is no statutory requirement for RIL."
Source: Economic Times
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