Companies & Sectors
Infosys terms media coverage, activist investors as risk factors
Terming negative media coverage and actions of activist shareholders as risk factors, global softare major Infosys on Tuesday informed the market regulators that such activities could adversely affect its stock prices and execution of strategies.
 
"Negative media coverage and public scrutiny may affect the prices of our equity shares and ADSs (American Depository Shares), while actions of activist shareholders may affect our ability to execute strategic priorities," said the IT major in a regualtory filing to the US Securities Exchange Commission (SEC) under 'risk factors'.
 
Similar filings were made to the Indian bourses - BSE and NSE - along with its annual report for fiscal 2016-17 ahead of its 36th annual general meeting here on June 24.
 
Claiming that media coverage and public scrutiny of its business practices, policies and actions had increased in the past 12 months, the firm said negative media coverage in relation to its business, board or directors or senior management may adversely impact our reputation.
 
"Responding to allegations in the media may be time consuming and could divert attention of our directors and senior management away from business. Any unfavorable publicity may also impact investor confidence," it said.
 
Noting that such activities could interfere with its ability to execute strategic plans, the company said they may also incur significant legal fee and public relations costs.
 
"The perceived uncertainties as to our future direction could affect client and investor sentiment, resulting in volatility in the price of our securities," it said in the filing.
 
The country's second largest exporter of software services has been in the news since February following serious differences between its co-founders and the board of direcctors over corporate governance issues, increase in compensation for senior executives and high severance package to its former chief financial officer.
 
Disclaimer: Information, facts or opinions expressed in this news article are presented as sourced from IANS and do not reflect views of Moneylife and hence Moneylife is not responsible or liable for the same. As a source and news provider, IANS is responsible for accuracy, completeness, suitability and validity of any information in this article.

 

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SEBI allows options trade in commodity futures
Securities markets regulator SEBI on Tuesday allowed exchanges to commence options trade in commodities futures on a pilot basis.
 
"It is decided that initially, on a pilot basis each exchange shall be allowed to launch options on futures of only one commodity that meets the criteria prescribed," the securities market regulator said in a circular.
 
"The commodity derivatives exchanges willing to start trading in options contracts shall take prior approval of SEBI for launching such contracts."
 
According to SEBI circular, only those commodities can be traded through the specified options which were amongst the top five 'Futures Contracts' in terms of total trading turnover value of the previous twelve months.
 
"The average daily turnover of underlying futures contracts of the corresponding commodity during the previous twelve months, shall be at least: Rs 200 crore for agricultural and agri-processed commodities, Rs 1,000 crore for other commodities," the circular pointed out.
 
Disclaimer: Information, facts or opinions expressed in this news article are presented as sourced from IANS and do not reflect views of Moneylife and hence Moneylife is not responsible or liable for the same. As a source and news provider, IANS is responsible for accuracy, completeness, suitability and validity of any information in this article.

 

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RBI finds 12 accounts, totalling 25% NPAs ripe for insolvency
The RBI on Tuesday identified 12 accounts totaling 25 per cent of the non-performing assets (NPAs), or bad loans, of the banking system for insolvency proceedings, a day after Finance Minister Arun Jaitley said action was on the anvil shortly in this regard.
 
"The IAC (Internal Advisory Committee) noted that under the recommended criterion, 12 accounts totaling about 25 per cent of the current gross NPAs of the banking system would qualify for immediate reference under IBC (Insolvency and Bankruptcy Code, 2016)," the Reserve Bank of India said in a statement following the IAC's first meeting here on Monday. 
 
"The IAC recommended for IBC reference all accounts with fund and non-fund based outstanding amount greater than Rs 5,000 crore, with 60 per cent or more classified as non-performing by banks as of March 31, 2016," it said. 
 
The IAC has been constituted under the Banking Regulation (Amendment) Ordinance, 2017, passed by the government last month, that allowed more power to the RBI to tackle the NPAs issue. It has been empowered to issue directions to commercial banks to initiate insolvency proceedings for recovering bad loans.
 
"The IAC took up for consideration the accounts which were classified partly or wholly as non-performing from amongst the top 500 exposures in the banking system," the RBI said.
 
Following his annual review in New Delhi of the performance of public sector banks (PSBs) on Monday, Jaitley told reporters that he expects "precipitative action" to be taken after the recent ordinance on bad loans, and this could strengthen recovery efforts of PSBs.
 
He said the RBI is at a fairly advanced stage of preparing a list of debtors whose cases require resolution through the IBC process, and added that 81 cases have been filed under IBC, with 18 of them coming from financial creditors.
 
The NPAs of state-run banks at the end of last September rose to Rs 6.3 lakh crore (almost $100 billion), as compared to Rs 5.5 lakh crore at the end of June 2016.
 
Disclaimer: Information, facts or opinions expressed in this news article are presented as sourced from IANS and do not reflect views of Moneylife and hence Moneylife is not responsible or liable for the same. As a source and news provider, IANS is responsible for accuracy, completeness, suitability and validity of any information in this article.

 

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COMMENTS

Deepak Narain

2 weeks ago

Despite all tall claims, things are not really rosy for the common man. It is like the railway ministry was when Laloo Yadav was its minister.

SRINIVAS SHENOY

2 weeks ago

It is time the government tackles the NPA issues on a war footing, by adopting drastic measures, before it is too late.

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