Companies and Markets

Companies & Markets

Name & shame default strategy stepped up as NPAs mount

India’s regulator is putting a spotlight on dealings between banks and troubled borrowers by requiring listed companies to report within one working day missed interest or installment payments on loans.

Publicly traded companies in India from October 1 will need to notify the stock exchange of a default on a bank loan, following an order from the Securities and Exchange Board of India (Sebi) this month.

The move may help Indian authorities to stem mounting bad loans by putting pressure on borrowers to honour obligations and banks to improve credit vetting.

MFIs pushed to second place as banks lead micro-credit

Micro-finance institutions (MFIs) have lost their lead in micro-credit to banks for the first time in last quarter. While some of the large MFIs have become small finance banks, the industry growth has stunted post-demonetisation.

RIL mulls entry into power storage business with BP

Reliance Industries, owned by Mukesh Ambani, is considering entering the power-storage business with its partner BP Plc to expand into the country’s growing renewable energy sector, according to two people with knowledge of the plan.

The companies are considering a plan to set up energy storage projects near solar and wind energy installations, the people said, asking not to be identified, citing company policy. A decision on investment and implementation will be taken by December, they said.

Reliance didn’t respond to requests for comment. BP declined to comment.

Tata Motors to invest Rs 4K cr to speed up sales in India

Tata Motors will invest more than Rs 4,000 crore ($625 million) to boost sales of its passenger and commercial vehicles, its chief executive said on Monday, as the automaker looks to return to profit in its domestic business.

In order to cut out distractions to the company’s business turnaround focus, Tata Motors has also decided to do away with the controversial flat-level hierarchy structure and instead award designations back to its employees.

With FPIs selling on dips, Nifty may find the going tough

 

With the first quarter results season getting over and no major events lined up for this week, foreign portfolio investors’ profit booking last week and their bearish bets in the futures & options market have come into the focus this week.

Stock exchange provisional data and NSDL data shows foreign portfolio investors are booking profit, as they have sold shares worth Rs 10,718 crore so far this month.

Brokers said it would be challenging for the Nifty-50 to regain the 10,000-mark,if the current tend persists.

Essar Oil goes to Rosneft, Trafigura & UCP

Debt-laden Essar Group on Monday concluded the sale of Essar Oil, including the captive port, power and retail assets, to Russian government-controlled oil giant Rosneft and a consortium of investors including Trafigura and UCP, for $12.9 billion, making it the largest foreign direct investment into the country.

Under the terms of the deal, Rosneft has picked up 49.13 per cent stake in Essar Oil's 20-million-tonne Vadinar refinery in Gujarat, a 58-mt captive port and a power plant (1,010 mw multi-fuel) and 3,500 petrol pumps.

Investors asked to exit as uncertainty looms

With uncertainty looming over India’s second largest IT firm Infosys, analysts are advising investors to use the buyback offer to exit from the company.

Many analysts see the exit of Vishal Sikka as the CEO of the company over spat with the founders, as a major setback for the company as it derails its plan to become a next generation IT firm critical to creating value.

Experts are painting a bleak picture for the future prospects of the company that is grappling with changing dynamics of global IT industry.

250 penny stocks under I-T scanner

Close on the heels of market regulator Securities and Exchange Board of India (Sebi) cracking the whip on 331 suspected shell companies, the Income Tax Department is preparing another list of penny stocks that could be barred from being traded on bourses.

The new list could have as many as 250 names and would be shared with Sebi for further action.

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