The Forward Markets Commission (FMC), has permitted re-materialisation /closure of applications of e-series investors on the crisis-hit National Spot Exchange (NSEL). This will allow more than 33,000 NSEL investors to get the commodity back in physical form to sell and encash the money.
FMC said the auditor Choksy and Choksy had not found any default as the stocks of commodities matched those in demat form under the e-series contracts. It further said metals in demat form includes gold (910kg), silver (46 tonnes), platinum (19kg), copper (62 tonnes), zinc (61 tonnes), lead (49 tonnes) and nickel (17 tonnes).
Meanwhile, the Bombay High Court, while hearing a class action suit filed by Modern India, an NSEL investor, has agreed that borrowers of NSEL should be asked to make payment first.
The National Housing Bank (NHB) is considering a proposal to increase loan-to-value (LTV) ratio to 90% of the property value from 80% currently. A home loan borrower can take a loan of Rs90 lakh for property valued at Rs1 crore. However, the proposal is for loans above Rs20 lakh that carry a mortgage guarantee cover.
Competition Commission of India (CCI) has dismissed allegations that public sector lender State Bank of India (SBI) abused its dominant market position by imposing unreasonable and unfair conditions on car loan borrowers. The complainant had alleged that SBI was abusing its dominant position by not informing car loan borrowers in advance about papers required to be signed for availing a loan and compelling them to sign various standard forms which contained one-sided terms.
The CCI held that SBI did not appear to be in a dominant position in the relevant market. The Commission noted that vehicle loan market in India is largely competitive with the presence of many big players from public sector banks, private sector banks and foreign banks in addition to non-banking finance companies and cooperative banks.