MF Global files for bankruptcy protection

MF Global’s fall into bankruptcy was widely speculated after the company posted over $191 million quarterly loss last week. With its huge exposure to European markets, there were also concerns about the firm's creditworthiness amid downgrades by various rating agencies

New York: Ending days of uncertainty, troubled securities company MF Global Holdings on Monday filed for bankruptcy protection, making it the first major American entity to be shattered by the European debt turmoil, reports PTI.

MF Global Holdings and MF Global Finance USA have filed for bankruptcy under Chapter 11—that allows reorganisation of its businesses.

The group has presence in India through various entities including MF Global - Sify Securities India Pvt Ltd and MF Global Commodities (I) Pvt Ltd, according to its website.

MF Global’s fall into bankruptcy was widely speculated after the company posted over $191 million quarterly loss last week. With its huge exposure to European markets, there were also concerns about the firm's creditworthiness amid downgrades by various rating agencies.

As per the court document, MF Global has assets of $100 to $500 million while the liabilities were worth around $10 to $50 million.

MF Global’s largest creditor is JPMorgan Chase Bank, with claims to the tune of $1.2 billion, the filing with the US Bankruptcy Court in the Southern District of New York said.

Going by reports, the company has been bogged down mainly by huge bets on European sovereign debt and was exploring various options including potential suitors.

The entity, run by former Goldman Sachs executive Jon Corzine, is a leading broker of commodities and listed derivatives.

According to its website, MF Global provides access to more than 70 exchanges worldwide.

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Non-food credit offtake grows at 18.7% in September

According to experts, the high growth in personal loan disbursement is on account of festive season and increase in individual spending. This has led to a high overall rate of credit growth despite high interest rates

Mumbai: Non-food credit offtake from banks by major sectors recorded a growth of 18.7% in September this year, notwithstanding the high interest rate regime. The growth is on par with the expansion in the same month last year, reports PTI.

While the farm sector and the industry reported lower credit offtake in September, it was higher in cases of services and personal loans, as per the latest data released by the Reserve Bank of India (RBI).

“On year-on-year basis, non-food bank credit increased by 18.7% in September 2011, the same as in the previous year,” RBI said.

According to experts, the high growth in personal loan disbursement is on account of festive season and increase in individual spending. This has led to a high overall rate of credit growth despite high interest rates, they said.

The total outstanding non-food credit disbursement stood at Rs37.96 lakh crore in September, up from Rs31.99 lakh crore in the same month of the previous fiscal.

As per the data, the total credit disbursement to agriculture and allied areas grew by only 7.9% at Rs4.33 lakh crore in September.

“Credit to industry increased by 22.9% in September as compared with 24.4% in the previous year...” the RBI said.

The total credit disbursement to industry—which includes infrastructure, metals, food processing, rubber, plastic and their products and engineering—was Rs17.42 lakh crore in September.

“Credit to the services sector increased by 19.3% in September 2011, higher than 17.4% in the previous year,” the RBI said.

The sector saw bank credit offtake rise to Rs9.12 lakh crore in September this year from Rs7.64 lakh crore in the corresponding month last year.

Within services, while segments like transport, computer software, tourism and wholesale trade witnessed slower growth in the offtake of credit during the month, disbursements to non-banking financial companies saw a big jump.

“Credit growth to NBFCs on a year-on-year basis in September 2011 at 46.2% was significantly higher than 18.5% in the previous year,” the apex bank said.

Bank credit disbursement to the NBFC segment stood at Rs1.83 lakh crore in September this year, as against Rs1.25 lakh crore in the same month last year. Credit disbursement to NBFCs stood at Rs10.60 lakh crore in September 2009.

Credit extended to the personal loan sector also went up by 15.2% during September 2011 compared to a growth of 8.6% during the same month a year ago.

During the month under review, total credit offtake by the sector stood at Rs7.08 lakh crore, as against Rs6.15 lakh crore in September 2010. In September 2009, the sector had availed credit to the extent of Rs5.66 lakh crore.

The RBI had in June revised its non-food credit growth projection for this fiscal downward to 18% from the earlier estimate of 19%.

The decline in growth projections is on account of the RBI’s monetary tightening policy. The apex bank has raised its key policy rates 13 times since March 2010 in a bid to tame inflation, which is currently above 9%.

Last fiscal, non-food credit offtake increased by 21.5%, much above the RBI’s projection of 20%.

Gross commercial bank credit, which also includes food credit, grew by 18.9% in September on an annual basis, as against a growth of 18.7% in the same month of 2010.

This is on account of a massive 35.5% jump in food credit offtake during the month under review, as against only a 17.7% growth in September last year.

Food credit offtake stood at Rs65,734 crore in September this year compared to Rs48,525 in September last year. Food credit offtake had stood at Rs41,240 crore in September 2009.

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Govt to introduce new PAN form for non-residents

In the new form, the applicants will have to submit all the information they are required to provide while complying with the Know Your Customer norms of SEBI, a senior CBDT official said

New Delhi: The Income Tax (I-T) department will introduce a separate permanent account number (PAN) application form for non-residents in which NRIs, PIOs and entities having interest in India will have to provide additional information to the Central Board of Direct Taxes (CBDT), reports PTI.

The new form—49AA—will help the department gather information on non-Indian entities and individuals, like Persons of Indian Origin (PIOs), politically exposed persons (PEPs), persons linked to PEPs and those involved in activities like gambling, gaming and lottery, a senior CBDT official said.

“This will also help us gather tax-related information from foreign entities and individuals which we can share with tax havens like Switzerland, if required. The new form will come into effect from Tuesday,” the official added.

At present, residents and non-residents are required to apply for PAN on same application form. The new PAN form will have to be used by fresh applicants only, the official clarified.

PAN is needed for paying income tax and filing returns by individuals as well as business entities.

In the new form, the applicants will have to submit all the information they are required to provide while complying with the Know Your Customer (KYC) norms of the Securities and Exchange Board of India (SEBI), the official added.

The existing PAN application form 49A, he added, too will be modified to include information that citizens are required to submit while applying for Aadhar number under the Unique Identification Authority of India (UIDAI) scheme.

“Now, form 49A has been synchronised with Aadhar. By doing this, we will get additional information,” the official added.

 

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