The government must guarantee the entire loan and the interest rate, so that there is no additional provisioning requirement.
Listed entities would have to co-operate with intermediaries registered with Sebi such as debenture trustees and credit rating agencies
Individuals likely to opt for safer bets like fixed income, PSU stocks and gold in the new year.
The financial services sector, including NBFCs and housing finance companies (HFCs), have historically been the largest borrowers from MFs.
In absolute terms, the outstanding book value of NPAs of LIC in the debt portfolio across life, pension and unit-linked funds is to the tune of Rs 32,685.39 crore at the end of December 2019.
Meanwhile in a separate notification, the RBI said that custodian banks could issue irrevocable payment commitments on behalf of FIIs to stock exchanges and clearing houses for purchase of shares under portfolio investment scheme.
Most companies do not provide correct and complete information to the Registrar of Companies (ROC) and Sebi.
The country's largest lender SBI on Thursday reported a 4.20 per cent decline in consolidated December quarter net at Rs 6,257.55 crore, largely because of a higher base in the year-ago period where it had benefitted from a Rs 4,500 crore one-off income. On a standalone basis, the city-headquartered lender's net profit came in at Rs 5,196.22 crore as against Rs 5,583.36 crore in the year-ago period and Rs 4,574.16 crore in the preceding September quarter. SBI chairman Dinesh Kumar Khara told reporters that the year-ago period had seen the resolution of the Essar Steel loans, resulting in an over Rs 4,000 crore interest income and Rs 500 crore other income benefit.
Many have downgraded EPS estimates for the Sensex in FY12.
It's a new modus operandi of scamsters to dupe investors, warns Sebi
Tai Chonbang Textile Industries Ltd plans to allot 500,000 non convertible cumulative redeemable preference shares on private placement basis.
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.
Yoga guru Baba Ramdev's Patanjali Ayurved on Wednesday made its first big acquisition when it paid Rs 4,350 crore to take over soya food brand Nutrela-maker Ruchi Soya through an insolvency process. The acquisition will help Patanjali acquire edible oil plants as also soyabean oil brands such as Mahakosh and Ruchi Gold.
To minise wasteful administrative costs, number of enterprises in strategic sectors will ordinarily be only one to four; others will be privatised/merged/brought under holding companies, she said.
In a rising interest rate regime, fixed maturity plans can offer good returns. But exit in the interim is difficult because of listing.
The equity infusion will happen at Rs 505 a unit, which is a premium of nearly 14 per cent over February 4's close of Rs 444.60.
IKF Finance Ltd said Credit Analysis and Research Ltd decided to retain 'CARE BBB' rating for its Rs 20 million non convertible debentures programme.
Mirza Tanners Ltd redeemed non-convertible debentures issued to Jammu & Kashmir Bank Ltd totaling Rs 100 million before maturity period to reduce costly funds.
Falcon Tyres Ltd fixed February 21 record date to allot one 10 per cent unsecured redeemable non-convertible debenture of Rs 15 for every share held.
National Steel Industries Ltd plans to issue on a private placement basis non convertible preference shares of face value of Rs 100 each, worth Rs 600 million.
Pantaloon Retail Ltd, the country's largest retail company, and Future Value Retail Ltd, recently carved out from Pantaloon as a 100 per cent subsidiary, plan to issue non-convertible debentures worth Rs 750 crore in the next three-four months, according to sources.
Though Kishore Biyani is selling stakes in group companies to pay off debt, a significant share price crash since January this year is making his task difficult.
Experts say the impact on the schemes' NAVs may vary in the coming days, depending upon how fund houses treat the developments on VIL and whether there are any further rating downgrades or credit events.
NCDs are unsecured loans to a firm with no provisions to exchange debt for corporate stock.
The board of Unitech Ltd, the country's second largest realty company, has approved a plan to raise Rs 5,000 crore through debt and equity issues and will convene an extraordinary general meeting on January 19, 2009 for shareholder approval. Sanjay Chandra, Unitech managing director, said today's proposal was a flexible enabling provision.
Tech M's priorities include retaining current customers, winning back business lost as a result of the crisis, retaining key associates, winning new businesses and exploring the best ways to realise operational and structural synergies between the two companies. On the possibility of layoffs and cost-cutting, Vineet Nayyar, Tech Mahindra's vice-chairman and MD, said, "I can't say anything. The company has to be viable and we will work at it. Layoffs will be the last option."
Announcing that the company had completed its fund raising for repayment of the bridge loan taken to acquire British marquee car brands Jaguar and Land Rover, Tata Motors said this was achieved by extending the final maturity of $1 billion by 18 months up to December 31, 2010.
Investment banking experts and capital market advisors, who are engaged in talks with companies that are looking at fund-raising options, said that while 13 large-cap companies were looking at raising capital to the tune of Rs 30,000 crore through QIPs, rights issues and NCDs, 20 other companies had initiated talks to raise about Rs 15,000-20,000 crore. At least 10 NCD issuances are expected during the first half to raise a total of Rs 10,000-15,000 crore.
The trends remained sluggish in the primary stock market
Life Insurance Corporation of India intends to pump in around Rs 1,05,000 crore into non-convertible debentures and equity in the current financial year, nearly 20 per cent more than the Rs 88,000 crore it invested in these instruments in 2008-09.
Tata Steel, the world's sixth largest steel-maker, will raise Rs 3,000 crore through non-convertible debentures to prepay the debt of its UK subsidiary, Tata Steel UK. The issue is Rs 1,000 crore higher than originally planned.
Most Asian stock markets steadied on Wednesday.
Investing in debt instruments requires careful attention.
Compare the post tax returns and tenure of debt instruments before investing.
Great Eastern Shipping Company Ltd fixed March 26 record date for determining holders eligible for an interim dividend to be paid on 10.5 per cent cumulative redeemable non-convertible preference shares of Rs 10 each.
HDFC, the country's largest housing finance company, is planning to raise up to Rs 1,000 crore (Rs 10 billion) through non-convertible debentures with a green-shoe option next week. Sources close to the development said the company would issue NCDs worth Rs 200 crore (Rs 2 billion), while keeping an option to raise another Rs 800 crore (Rs 8 billion) through the green-shoe option.
It alloted 6000 non-convertible debentures of face value of Rs 10 lakh
The two troubled subsidiaries of Reliance Capital have over Rs 20,000 crore debt of both the companies. Reliance Home Finance has a debt of Rs 11,500 crore and Reliance Commercial Finance owes Rs 9,000 crore to lenders.
The government is planning to relax the recent diktat of clubbing non-convertible, optionally convertible or partially convertible preference shares as External Commercial Borrowings for some companies.
Similarly, the state-owned corporation has subscribed to NCDs worth around Rs 20,000 crore (Rs 200 billion) this year, with nearly Rs 12,000 crore (Rs 120 billion) flowing into these instruments over the last three months when the global credit crisis intensified.
