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BUSINESS AND ECONOMY - December 2015

Dec 2015

Mar 24, 2021

Glenmark Becomes First Domestic Drug Firm to Get COVID Credit Line from IFC

International Finance Corporation (IFC) said that Glenmark Pharmaceuticals has become the first domestic drugmaker to get a USD 40-million (about Rs. 290 crore) credit-line from its USD 8-billion fast-track COVID-19 facility.
The loan to Glenmark will help it increase the availability of affordable, quality medicines in the country as well in other countries, including treatment for the pandemic.
The World Bank Group lender said the USD 40 million-loan is under its USD 8-billion fast-track COVID-19 facility and will help the Mumbai-based company boost its generic drug production capacity in general and respiratory drugs in particular.
IFC's partnership with Glenmark began way back in 2016, supporting its expansion and growing its research and development capacities.

RBI Imposes Penalty on Fedbank Financial Services

The Reserve Bank of India has imposed a penalty of Rs. 15 lakh on Fedbank Financial Services Limited, Mumbai. The penalty has been imposed for non-compliance with certain provisions of the directions issued by the Reserve Bank of India (RBI) contained in 'Monitoring of Frauds in NBFCs (Reserve Bank) Directions, 2016′.
The statutory inspection of the company with reference to its financial position as of March 31, 2019, revealed, inter alia, non-compliance with the directions issued by it. The inspection report of the Koyana Sahakari Bank based on its financial position as of March 31, 2019, revealed that it had exceeded the prudential inter-bank (single bank) exposure limit.

RBI Defers Limits on Non-centrally Cleared Derivative Exposures for Banks

The Reserve Bank deferred applicability of limits on non-centrally cleared derivatives exposures for banks till September-end.
The central bank announced the changes in a notification to banks as part of the large exposures framework.
Meanwhile, the RBI also amended its master directions on know your customer (KYC) guidelines for banks, dealing with the procedure on implementation of Section 51(A) of the Unlawful Activities Prevention Act (UAPA).

Govt. to Sell Stake in Rail Vikas Nigam

The government will sell up to 15 cent stake in Rail Vikas NIgam through an offer for sale (OFS). The offer to sell the government's 10 per cent stake would open for institutional investors, with a green shoe option to sell an additional 5 per cent stake in the public sector undertaking.
The floor price for the sale has been fixed at Rs. 27.50/ share.
Sale of 15 per cent stake would fetch the government about Rs. 860 crore.

Mar 23, 2021

ArcelorMittal Emerges as Sole Bidder for Uttam Galva Steels

ArcelorMittal is the sole bidder for debt-laden Uttam Galva Steels, where it was once a co-promoter. Six other firms, including JSW Steel, Jindal Steel & Power (JSPL) and Vedanta-owned ESL Steel, had submitted an expression of interest (EOI) for Uttam Galva. But after due diligence, only ArcelorMittal submitted a resolution plan.

Hinduja Group Launches New Berryllus Capital Wealth Advisory JV

The UK-headquartered Hinduja Group announced the launch of Berryllus Capital, a new joint venture (JV) focussed on investment management, investment banking and real estate advisory for ultra-high net worth families around the world.
The new JV with NASDAQ-listed Focus Financial Partners Inc, a leading partnership of independent, fiduciary wealth management firms, is dubbed a multi-family office that will cater to some of the most prominent families in the world through offices in London, Geneva and Singapore. The firm will provide advice and integrated strategies for managing client investments, philanthropic endeavours and legacies.
Founded by four well-known senior wealth advisors who are said to be focussed on the value of an independent, global, open-architecture approach, Beryllus Capital will be led by Amit Kotha a founder and veteran senior wealth advisor based in London.

LIC Introduces New Plan 'Bachat Plus'

Life Insurance Corporation of India has introduced 'Bachat Plus' — a non-linked, participating, individual, savings plan which offers combination of protection and savings. It provides financial support to the family of the deceased policyholder any time before maturity and lump sum amount at the time of maturity for the surviving policyholders.

India Slips to 56th Rank in Global Home Price Index

India has slipped 13 spots in the latest global home price index to finish last at 56th rank in the quarter ending December 2020. Against its 43rd rank a year ago, India saw a decline of 3.6% year-on-year (YoY) in home prices, leading to the drop in global position, showed Knight Frank's Global House Price Index. India was the weakest-performing country during the fourth quarter of 2020, with a decline of 3.6% in home prices, followed by Morocco with a drop of 3.3%.
According to the report, markets like New Zealand (19%), Russia (14%), the US (10%), Canada and UK (both 9%) have recorded accelerated growth in rankings in the last three months due to a growth in housing demand.
The index tracks the movement in mainstream residential prices across 56 countries and territories worldwide using official statistics. In the 12-month percentage change for the period Q4 2019 – Q4 2020, Turkey continues to lead the annual rankings with prices up by 30.3% on-year, followed by New Zealand at 18.6% and Slovakia at 16.0%.

RBI Sets up External Advisory Committee for Evaluating Banking Applications

The Reserve Bank of India (RBI) set up a standing external advisory committee, which will evaluate applications for universal banks and small finance banks (SFBs). The committee has five members, with former RBI deputy governor Shyamala Gopinath as the chairperson.
Other members include Revathy Iyer, director, central board, RBI; B Mahapatra, former executive director, National Payments Corporation of India; T N Manoharan, former chairman, Canara Bank; and Hemant G Contractor, former MD, State Bank of India, and former Chairman, Pension Fund Regulatory and Development Authority.
According to guidelines, applications for universal banks and SFBs will first be evaluated by the RBI to ensure prima facie eligibility of the applicants, after which the newly formed committee will evaluate the applications.

Mar 22, 2021

Saudi Aramco to Prioritise Energy Supply to China

Saudi Aramco will ensure China's energy security remains its highest priority for the next 50 years and beyond as new and existing energy sources run in parallel for some time.
Saudi Arabia, the world's biggest oil exporter, retained its position as China's top supplier in the first two months this year, with volumes up 2.1% to 1.86 million barrels per day (bpd).
The kingdom beat Russia to keep its ranking as China's top crude supplier in 2020 despite unprecedented production cuts in a pact between the Organization of the Petroleum Exporting Countries and its allies to balance global markets after demand plunged during the COVID-19 pandemic.

Reliance Affiliate Picks 3/4th of gas from Own CBM Block

Reliance Industries Ltd has sold three-fourth of the gas from coal seams in Madhya Pradesh to an affiliate of the company at a price of just over $6 at current oil prices.
India Gas Solutions Private Limited, a 50: 50 joint venture of RIL and UK's bp, bought 0.62 million standard cubic meters per day out of 0.82 mmscmd gas bid out in an auction last week.
State-owned gas utility GAIL India Ltd cornered 0.17 mmscmd while 0.03 mmscmd was picked by Reliance Gas Pipeline - the entity that transports gas from the coal-bed methane (CBM) blocks in Madhya Pradesh to consumers.
Reliance had last month bids for 0.82 mmscmd of coal gas from the Sohagpur coal-bed methane (CBM) block for one year beginning April 1, 2021

Mar 21, 2021

CCI Clears Tata Power's Purchase of NESCO Utility

The Competition Commission of India (CCI) approved acquisition of 51 per cent equity share of North Eastern Electricity Supply Company of Odisha (NESCO Utility) by Tata Power Company Limited (TPCL) from Grid Corporation of Odisha Limited (GRIDCO).
The proposed combination relates to the acquisition of 51 per cent of equity share capital of NESCO Utility by the TPCL from GRIDCO pursuant to the competitive bidding process initiated by the Odisha Electricity Regulatory Commission (OERC) under Section 20 of the Electricity Act, 2003.
TPCL, incorporated on September 18, 1919, is a public listed company and is primarily engaged in the business of power generation, transmission and distribution. It is a part of the Tata group.
NESCO Utility, incorporated on November 19, 1997, is engaged in the business of distribution and retail supply of power in five districts of Odisha namely Balasore, Bhadrak,Jajpur, Keonjhar and Baripada.

RBI Remains Net Purchaser of US Dollar in January

The Reserve Bank of India (RBI) remained net buyer of the US dollar in January after it bought USD 2.854 billion from the spot market.
In the reporting month, RBI purchased USD 18.225 billion and sold USD 15.371 billion in the spot market, the RBI said in its monthly bulletin for March 2021.
In December 2020, RBI net purchased USD 3.991 billion from the spot market.
In January 2020, RBI was a net buyer of USD 10.266 billion. It had purchased USD 11.486 billion and sold USD 1.22 billion during the month.

Mar 20, 2021

Government Sells Stake to Exit Tata Communications

The government exited Tata Communications after selling 10 per cent stake to Tata Sons' arm Panatone Finvest in an off-market trade.
The Government of India held 26.12 per cent stake while Panatone Finvest had 34.80 per cent, Tata Sons 14.07 per cent and the remaining 25.01 per cent was with the public before the transaction.
The stake is part of the government's disinvestment process. The government has set a target to realise Rs. 32,000 crore in this fiscal.

Bank of Japan Fine-tunes Massive Stimulus in Drive to Boost Prices

The Bank of Japan slightly loosened its grip on long-term interest rates and laid the groundwork to taper its huge asset purchases, as part of steps to make its stimulus sustainable enough to weather a prolonged battle to fire up inflation.
In a review of its policy tools announced after a two-day meeting, the BOJ said it would allow long-term interest rates to move up and down by 0.25% around its 0% target, instead of by the current implicit band of 0.2%.
To give itself more room to wind down its massive stimulus, the central bank also removed an explicit guidance to buy exchange-traded funds (ETF) at an annual pace of roughly 6 trillion yen ($55.21 billion).
Instead of buying at a set pace, the BOJ said it would step in only when markets destabilise under a 12-trillion-yen ceiling set last year when the initial COVID-19 hit jolted stock prices.

Bankers, Financial Institutions to Take around 95% Hair Cut in NOCL

Bankers and other financial institutions will take around 95 per cent hair cut in Nagarjuna Oil Corporation (NOCL). Haldia Petrochemicals (HPL) has agreed to pay Rs. 600 crore to revive NOCL and Liquidator of NOCL inturn has agreed to pay Rs. 560 crore (of the Rs. 600 crore) to Secured Financial Creditors for which the company need to owe Rs. 9,864.16 crore. On the principal the lenders will recover 25 per cent.
Earlier the National Company Law Tribunal (NCLT), Chennai gave its nod for Haldia Petrochemicals (HPL) scheme, submitted through the Liquidator V Mahesh, for the revival of Nagarjuna Oil Corporation Limited (NOCL).

Uttarakhand Govt. to Allow Completion of 7 Hydel Projects

The Centre has decided to allow the completion of seven under-construction hydropower projects in Uttarakhand, a top official in the environment ministry said, indicating the government's desire to push ahead with these projects despite opposition from activists and local residents, which has resurfaced again in recent weeks following the February 7 flash flood on the Rishi Ganga that claimed at least 72 lives and damaged two projects.
The decision has been taken by the ministries of environment, power and Jal Shakti, and will be communicated to the Supreme Court, which is hearing a matter on hydropower projects.

SC Approves SBI MF Plan for Franklin Templeton Schemes

The Supreme Court accepted the standard operating procedure (SOP) prepared by SBI Funds Management (SBI MF) to monetise assets and distribute the proceeds to unit holders of the six debt schemes of Franklin Templeton (FT) Mutual Fund. The SOP was prepared in consultation with FT Mutual Fund and market regulator SEBI.
The six shuttered schemes have already distributed Rs. 9,122 crore to investors and have accrued another Rs. 1,370 crore in cash earlier this month. The six schemes were frozen by the FT Mutual Fund in April 2020.

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