For non-banks, the IL&FS crisis was nothing short of India's Lehman moment, which has for a foreseeable future reset the sector on multiple grounds.
The corporate affairs ministry proposed the names of Borkar & Mazumdar & Co and MM Chitale & Co for IL&FS and IFIN respectively; and GM Kapadia & Co and CNK & Associates for IL&FS Transportation Networks.
The auditors -- the local arms of the Big Four global firms Deloitte Haskins & Sells and KPMG which has BSR & Associates as an affiliate here-had challenged the jurisdiction of the NCLT to ban them.
The board will first need to unpack IL&FS - it has 169 group companies with 24 direct subsidiaries, 135 indirect subsidiaries, six joint ventures and four associate companies, says Amit Tondon.
Prime Minister Narendra Modi will visit the US for a two-day working visit starting Wednesday. He will meet with President Donald Trump and engage in bilateral discussions on trade, investment, technology, defense cooperation, counterterrorism, Indo-Pacific security, and people-to-people relations. The visit is expected to further strengthen the India-US partnership.
They have also been accused of extending loans for criminal intent of falsification of repayment by a number of borrowers, including some entities associated with large corporate groups.
Under the plan, the government has categorised IL&FS group companies into green, amber and red based on their respective financial positions.
Inflows into gold exchange-traded funds (ETFs), which manage a total of Rs 37,390 crore, have surged sharply in recent months. This trend is likely to continue, especially after the reintroduction of long-term capital gains tax (LTCG), which is likely to attract smart money into mutual fund offerings amid a robust outlook for the yellow metal. Smart money, also known as opportunistic flows, refers to strategic investments that are generally of a short-term horizon.
The ED is contemplating a special audit of the account in the backdrop of rating agencies downgrading various debt papers of IL&FS.
The exodus of FPIs from the Indian equity markets continued unabated, as they withdrew over Rs 7,300 crore (about $840 million) in the first week of this month due to global trade tensions, with the US imposing tariffs on countries such as Canada, Mexico, and China. This came following an outflow of Rs 78,027 crore in the entire January. Before that, they invested Rs 15,446 crore in December, data with the depositories showed.
Even erstwhile independent directors were being paid substantial remuneration including commission. The median annual salary of IL&FS employees was Rs 13.1 lakh.
Modi also met the construction workers who worked meticulously amid harsh conditions to complete the tunnel.
Most investors should have a 5% to 10% allocation to gold for diversification. They should stagger their investments to mitigate timing risk.
With real estate valuations falling and other deals coming unstuck, the current management's improved target faces significant challenges.
The first tranche was raised a few weeks ago and the company was looking to raise more if needed.
Besides 15 loan transactions to the Siva group of companies, the former directors also used unique methods to ensure the group did not get into the default list.
PSB executives said loans to group holding company IL&FS and entities might still be treated as "standard".
The IL&FS group has a complicated structure, with the holding company owning stakes in its financial services arm as well as the subsidiaries that operate its infrastructure assets.
Metropolitan Stock Exchange of India (MSE) plans to raise Rs 120 crore from investors in an attempt to stay afloat. The beleaguered exchange's board has approved issuance of 1.19 billion equity shares of face value Rs 1 at a premium of Rs 1 through private placements, according to a disclosure on its website.
'The increase in the limit for TDS on interest to Rs 1 lakh will ensure greater cash flow in the hands of senior citizens.'
Will have to take impairment of Rs 15,000 crore before recovering a single rupee from its arms
The report has identified 29 instances where it appears that the loans disbursed to borrowers were in turn utilised by their group companies to repay the existing debt obligations with IL&FS Financial Services Limited.
About 24 fund houses saw a decline in their debt AUMs in the past one year.
But it does not mention its views on the government demand to ban these two auditors for five years from business.
The NCLAT said the RBI cannot restrict it from prohibiting banks from 'asset classfication' and observed that any change in this order would upset the entire resolution process of the IL&FS
The ministry has also made Udayen Sen of Deloitte, and Kalpesh Mehta and Sampath Ganesh of BSR as respondents as they were the signatories of the audit reports of the company.
Based on internal evaluation and legal opinion, the management was of the opinion that the company has the ability to ultimately recover the aforesaid ICDs
Invest with a 5 to 7 year horizon so that you are able to ride out price volatility and benefit from the long-term trends of demand and macroeconomic shifts.
Did men and women of redoubtable experience and public service, upholders of the country's steel frame and paragons of corporate governance, never smell a rat?
Prime Minister Narendra Modi will pay a two-day working visit to the US from February 12 during which he will meet President Donald Trump, the external affairs ministry announced. The visit will give further impetus and direction to India-US bilateral relationship. Prior to his US visit, Modi will be in France from February 10-12 to co-chair the AI Action Summit with French President Emmanuel Macron. He will also visit Cadarache, the site of the International Thermonuclear Experimental Reactor of which India is a partner. During his visit to France from February 10-12, Modi and Macron will also address the India-France CEOs forum. The prime minister and Macron will travel to Marseille where they will inaugurate the Consulate General of India. The leaders will also visit the war cemetery and pay tribute to the sacrifices made by Indian soldiers in World War 1. Modi and Macron will visit Cadarache, the site of the International Thermonuclear Experimental Reactor (ITER). There has been a very close rapport between Trump and Modi, dating back to the US leader's first term. There is a clear convergence of interests between the two countries in several areas, including trade, investment, technology, defense cooperation, counterterrorism, Indo-Pacific security, and people-to-people relations.
Given that there are hundreds of players in the shadow banking space, it's hard to make a credible estimate of potential NPAs. That creates more scope for panic, says Devangshu Datta.
The general nervousness because of the IL&FS default will prevail in the system for now.
The IL&FS management is also talking to its second-largest shareholder, Orix Corporation of Japan, to infuse more funds into the company - in case any shareholder backs out during the rights issue.
HSBC has acquired the stake from E*Trade Mauritius ( 43.85 per cent) and an additional 29.36 per cent stake from IL&FS. In addition, HSBC has paid a non- compete fee of Rs 82.45 crore ($19.4 million) for a three-year period to IL&FS.
Almost 2,000 companies whose private provident and pension funds have invested in non-convertible debentures of IL&FS group firms are staring at the prospect of booking losses to the tune of Rs 9,000 crore or more if the interest income is added.
The Company Law Board (CLB) on Thursday allowed infrastructure finance company IL&FS to take over Maytas Properties, a company promoted by the family members of disgraced Satyam founder Ramalinga Raju.
Let reason, not emotion, guide your decisions.
rediffGURU Ulhas Joshi answers your mutual fund queries.
In a soon to be published book, 'Of Counsel: The Challenges of the Modi-Jaitley Economy,' former chief economic advisor Arvind Subramanian says though RBI has a good reputation, it does not mean it's always right, as for years, the RBI was unable to grasp the seriousness of the loan repayment problems or identify the prolonged frauds of Nirav Modi and the likes.
IL&FS Mutual Fund is eyeing acquisitions and plans to launch six more schemes to increase its assets under management to over Rs 3,000 crore (Rs 30 billion) by the end of this fiscal.
