Regulations
NSEL scam: EOW attaches Rs 2,000 crore assets of FTIL
The Economic Offences Wing of Mumbai police has attached assets worth Rs 2,000 crore belonging to Financial Technologies India Ltd (FTIL), owned and founded by Jignesh Shah, official sources revealed.
 
The assets, which include FTIL's headquarters renamed 63 Moons, have been seized under the Maharashtra Protection of Interest of Depositors Act, bank accounts and deposits.
 
Reacting to the EOW move, FTIL termed the move as without "legal basis" and said the company would challenge it before the court soon.
 
"We have received a letter from EOW dated 18/7/2016 at 6 pm today on 19/7/2016 securing assets of FTIL. 63 Moons is a listed company having 63000+ shareholders and about 1000+ employees. We will take all legal remedies to protect their interest. There is no legal basis for the said action and we will be moving court soon on the said letter," said FTIL in a late evening statement.
 
The development comes barely a week after Shah's arrest by Enforcement Directorate (ED) in connection with the Rs 6,000 crore scam at National Spot Exchange Ltd (NSEL), which is owned by FTIL.
 
The ED said it had collected evidence of money-laundering against Shah, and he has been remanded to judicial custody till August 1 by a Special PMLA (Prevention of Money Laundering Act) Court.
 
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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IMF cuts 2016 global growth forecast to 3.1% amid Brexit uncertainty
The International Monetary Fund (IMF) on Tuesday revised down its forecast for global growth in 2016 and 2017 in view of the uncertainty surrounding Britain's exit from the European Union.
 
The IMF expects the global economy to grow 3.1 per cent in 2016 and 3.4 per cent in 2017, both 0.1 per cent lower than its forecasts in April, Xinhua news agency reported.
 
"The outcome of the UK vote, which surprised global financial markets, implies the materialisation of an important downside risk for the world economy. As a result, the global outlook for 2016-2017 has worsened, despite the better-than-expected performance in early 2016," the IMF said.
 
The uncertainty surrounding the Brexit is projected to take a toll on confidence and investment, including through its repercussions on financial conditions and market sentiment more generally, it added.
 
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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Nifty, Sensex lack momentum – Tuesday closing report
We had mentioned in Monday’s closing report that Nifty, Sensex may remain weak. The major indices of the Indian stock markets were in the red for most of the session on Tuesday and closed with small gains with a rally at the fag end of the session. The trends of the major indices in the course of Tuesday’s trading are given in the table below:
 
 
Profit booking, coupled with disappointing quarterly results and negative global cues, depressed the Indian equity markets on Tuesday. Consequently, the key indices traded on a flat-to-negative note during the mid-afternoon session, as heavy selling pressure was witnessed in fast moving consumer goods (FMCG), banking and consumer durables stocks. On the NSE, there were 582 advances, 788 declines and 53 unchanged at the close of trading on Tuesday.
 
The benchmark indices opened on a flat note, in sync with their Asian peers. The equity markets soon rose on the back of the government's decision to infuse capital into public sector banks. In a statement, the Ministry of Finance announced a capital infusion of Rs22,915 crore towards the recapitalisation of 13 public sector banks during 2016-17. However, the key indices ceded their gains, as profit booking, disappointing quarterly results and weak global crude oil prices hampered the upward trajectory. Besides, reduced chances of further monetary policy easing by the European Central Bank (ECB) in its upcoming monetary policy review dampened investors' sentiments. Nevertheless, value buying, healthy progress of monsoon season and expectations of GST (Goods and Services Tax) getting passed supported prices at the lower levels. Most of the banking and auto sector stocks faced resistance at higher levels due to profit booking, while IT sector stocks traded with mixed sentiments.
 
The Royal Bank of Scotland (RBS) has informed its customers about the closure of all its 10 branches in India and withdrawal of its retail and wealth management services. The British bank told its customers through its website to close their RBS accounts and make alternate arrangements for their banking, wealth management and demat accounts on or before August 31. According to RBS, six branches -- Bengaluru, Hyderabad, Pune, Gurgaon, Noida and Vadodara -- would be shut from October 1 onwards. The remaining four branches -- Chennai, Kolkata, Mumbai and New Delhi -- will be closed in due course, the bank said. The bank has also listed different dates for closure of its various services. According to RBS, its private banking and wealth management business was transferred to Sanctum Wealth Management Private Ltd. with effect from April 1. 
 
Global credit rating agency Moody's Investors Service on Tuesday said Housing Development Finance Corporation Ltd's (HDFC) masala bond issue would pave the way for non-banking finance companies (NBFC) and government related issuers (GRI). Masala bonds would find favour with NBFCs as the Reserve Bank of India (RBI) has issued a discussion paper proposing new limits for bank's lending to the finance companies. These masala bonds -- although denominated in Indian rupees -- are listed on the international market and offered and settled in US dollars, providing easier access for foreign investors. Indian housing finance major HDFC recently raised Rs3,000 crore through such bonds. It is the first Indian company to issue such bonds and follows issuances by International Finance Corporation (IFC) and Asian Development Bank (ADB). "We expect the market to deepen further with more issuers following HDFC Ltd.'s issuance," Alka Anbarasu, Moody's Vice President and Senior Analyst was quoted as saying in a statement. "In addition, the Indian rupee has depreciated by about 5.3% on a year-on-year basis, allaying some investor concerns about emerging market currency risk at a time when financing conditions have become less favourable for many developing countries," added Anbarasu. HDFC shares closed at Rs1,340, down 0.39% on the BSE.
 
FMCG major Hindustan Unilever on Monday said its net profit rose 10% to Rs1,174 crore in the quarter ended June, as compared to Rs1,069 crore in the corresponding period last year. "Net profit at Rs1,174 crore, was up 10%, aided by a one-time write back of provision for pension benefits arising from plan amendments," the company said in a statement. The company has proposed to make an investment of about Rs1,000 crore towards the setting up of a new manufacturing unit in the vicinity of its existing factory premises at Doom Dooma in Assam, it said. Net sales from operations stood at Rs7,988 crore in the quarter under review as compared to Rs7,713 crore in the same quarter last year. The new unit is expected to be commissioned in early 2017 and will augment production capacity of personal care products. HUL shares closed at Rs894.00, down 2.87% on the BSE.
 
The top gainers and top losers of the major indices are given in the table below:
 
 
The closing values of the major Asian indices are given in the table below:
 
 

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