Defaulters owe over Rs47,000 crore to lenders

According to RBI data, the number of defaulters having an outstanding amount of Rs10 crore and above (non-suit filed accounts) of financial institutions as on 31 March 2011, stood at 723. They owe Rs26,165.51 crore, finance minister Pranab Mukherjee informed the Rajya Sabha

New Delhi: Defaulters of Rs1 crore and above owe over Rs47,000 crore to banks and financial institutions as on 31 March 2011, reports PTI.

According to the list of people who defaulted over Rs1 crore and above in payments to various lenders, a total of 4,102 defaulters owe Rs47,594.31 crore, finance minister Pranab Mukherjee said in a written reply in the Rajya Sabha.

According to Reserve Bank of India (RBI) data, the number of defaulters having an outstanding amount of Rs10 crore and above (non-suit filed accounts) of financial institutions as on 31 March 2011, stood at 723. They owe Rs26,165.51 crore, he said.

The suit-filed accounts of Rs1 crore and above involved an amount of Rs21,428.80 crore.

The minister said in order to improve the health of the financial sector, the government and the RBI have taken various steps.

This includes prescribing prudential norms for provisioning and classification of non-performing assets, guidelines for prevention of slippages, corporate debt restructuring and other restructuring schemes.

To another query, minister of state for finance Namo Narain Meena said PSU banks have granted Rs14,12,542.71 crore worth loans to industrial houses as of 31 March 2010.

On deposits, Mr Meena said about Rs1,723.24 crore worth of such funds are lying with commercial banks as on 31 December 2010.

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SEBI to set time-frame for companies’ replies to expedite IPO applications

According to the norms, a company has to come out with its public issue within 90 days of its prospectus being approved by SEBI. If it fails, the approval lapses and the company has to restart the entire process

Mumbai: In order to expedite the clearance of initial public offer (IPO) applications, the Securities and Exchange Board of India (SEBI) is considering putting in place a time-frame within which the firms will have to respond to queries by the market regulator, reports PTI.

“We are going to make it obligatory that response to SEBI’s queries has to be given in a particular time-frame and if it is not given, the case will be closed,” SEBI chairman UK Sinha said at a CII event here.

Refuting the criticism that SEBI takes longer time to clear the IPO applications, Mr Sinha said, “But we also found that if the market is not good, if you want to delay the thing, you don’t respond to SEBI’s queries. We are going to change the rules of the game.”

The merchant bankers, he further said, would have to do the due diligence in time.

According to the norms, a company has to come out with its public issue within 90 days of its prospectus being approved by SEBI. If it fails, the approval lapses and the company has to restart the entire process.

SEBI is also going for a complete overhaul of the primary market norms and review the entire IPO process for which it has set up a group.

“Our idea is to make fund raising by corporates in India more efficient both by way of time and by way of costs.

But let me also alert you that in the process there will be some additional obligations on the intermediaries,” he said.

To help investors make informed judgement, SEBI has already asked merchant bankers (issue managers) to reduce the size of the application form for IPOs and disclose their track record of the issues managed and their performance.

“We are thinking of what kind of penalty can be imposed if there are any irregularities. We are looking at the volatility at the first day of trading, we are seriously working on that,” he added.

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Share prices to make another attempt to rally: Tuesday Market Report

Nifty must hold above today’s low to reach 5,000

The sell-off that started in noon trade following the political impasse over foreign direct investment in multi-brand retail led the market lower today. The Nifty made a higher low and barely made a higher high and ended in the red. The index must hold itself above today’s low for further gains up to the level of 5,000. However, if it breaches 4,765, we may see the index moving sideways for the time being. The volume on the National Stock Exchange was 57.14 crore shares.

The market opened higher tracking the firming trend in the global arena. US stocks closed in the green overnight, ending their seven-day decline, on hopes that European leaders would come up with some solutions to solve the continent’s debt problems. The optimism also led the Asian pack higher in morning trade. Back home the Nifty added 13 points to its previous day’s tally to open trade at 4,864 and the Sensex started the day at 16,210, up 47 points.

Profit booking led the indices lower in the initial hour. However, buying in select stocks saw an upward movement in the indices, with the market emerging into the positive in the pre-noon session. The indices touched their day’s high around noon with the Nifty rising to 4,866 and the Sensex scaling 16,210.

But the gains were temporary as the benchmarks once again drifted lower amid choppy trade. The benchmarks fell to the day’s lows in the post-noon session as political developments made investors nervous. At the lows, the Nifty fell to 4,787 and the Sensex went back to 15,953.

Making a half-hearted recovery at the close, the indices managed to hold on to their psychological levels. The Nifty closed 46 points down at 4,805 and the Sensex settled 159 points lower at 16,008.

Markets in Asia closed with gains of over 1%-2% on optimism that European policymakers will chalk out a plan to contain the debt crisis. Finance ministers from the 17-member European Union are meeting in Brussels today to work out details on how the European Financial Stability Facility will boost its muscle by insuring sovereign debt with guarantees.

The Shanghai Composite gained 1.23%; the Hang Seng rose 1.21%; the Jakarta Composite climbed 1.12%; the KLSE Composite advanced 0.92%; the Nikkei 225 surged 2.30%; the Seoul Composite jumped 2.27% and the Taiwan Weighted closed 1.30% up. Bucking the trend, the Straits Times lost 0.23%.

Back home, foreign institutional investors were net sellers of stocks totalling Rs302.59 crore on Monday. On the other hand, domestic institutional investors were net buyers of shares aggregating Rs307.30 crore.

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