Companies & Sectors
RCOM sells 150 flats in Navi Mumbai for Rs330 crore

The company also expects to finalise and announce plans very shortly for monetisation of its valuable real estate measuring nearly 4 acres, situated at a prime location in New Delhi

 

Industrialist Anil Ambani-led Reliance Communications (RCOM) on Monday said it has sold nearly 150 residential flats at Sea Woods complex in Navi Mumbai for Rs.330 crore, which will be used for repayment of debt.
 
"The sale consideration for the disposal of the flats at Navi Mumbai has been finalised at over Rs.330 crore. The disposal marks the commencement of RCOM's monetisation programme for surplus real estate owned by the company.
 
"The entire proceeds from the monetisation of real estate will be utilised by RCOM for repayment of debt, as part of its overall deleveraging plans," said a company statement.
 
"RCOM has already received more than 50 percent of the sale proceeds, and the balance amount will be realised during the current financial year, upon completion of documentation, etc. presently underway," it added.
 
The company also expects to finalise and announce plans very shortly for monetisation of its valuable real estate measuring nearly 4 acres, situated at a prime location in New Delhi.
 
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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Highlights of proposed Insolvency and Bankruptcy Code

It proposes Insolvency Regulator to exercise regulatory oversight over insolvency professionals, insolvency professional agencies and informational utilities

 

Highlights of the bill for an Insolvency and Bankruptcy Code that was introduced in the Lok Sabha, the lower house of parliament, by Finance Minister Arun Jaitley on Monday:
 
- Consolidates into a single law a host of legislations that deal with the subject;
 
- Aims to speedily adjudicate such cases for higher recovery of debt and money;
 
- Allows operational creditors like employees to also call for insolvency resolution;
 
- Proposes Insolvency Regulator to exercise regulatory oversight over insolvency professionals, insolvency professional agencies and informational utilities;
 
- Moots two separate Insolvency Adjudicators -- one with jurisdiction over companies and the other over insolvency and bankruptcy resolution of individuals;
 
- Proposes to regulate insolvency professionals and insolvency professional agencies, under regulator's oversight;
 
- Proposes fast-tracking resolution of insolvency cases and improve recoveries of amount lent to companies within a timeline of 180 days, extendable by another 90 days;
 
- Proposes insolvency resolution process for individuals where the creditors and the debtor will engage in negotiations to arrive at an agreeable repayment plan of debts;
 
- Moots "Fresh Start" process for indigent individuals with income and assets lesser than specified thresholds; and
 
- Proposes insolvency information utilities which would collate, authenticate and disseminate financial information from listed companies and creditors of companies.
 
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 will push higher – Monday closing report
While the uptrend is intact, Nifty may meet with resistance at around 7,880
 
We had mentioned in Friday’s weekly report that Nifty, Sensex may head higher and that as long as the Nifty stays above 7,650, the uptrend may continue. The major indices in the Indian stock exchanges rose today despite the fact that the US market plunged deeply in the red on Friday after giving up all the gains, following the rate hike. The trends in the major indices during Monday’s trading are given in the table below:
 
 
The bellwether indices of the Indian equity markets opened on a weak note in sync with their Asian peers and last Friday's slump. However, both the indices soon rose. Finance Minister Arun Jaitley on Monday tabled in the Lok Sabha the Insolvency and Bankruptcy Bill, 2015, proposing to enact a single bankruptcy code setting deadlines for processing insolvency cases. Jaitley had announced this on Saturday, saying the government intends to bring important legislative measures on structural reforms during the remaining three days left of parliament's winter session, notwithstanding the setback on the GST Bill. The proposed law aims to reduce delays in resolution of insolvency cases and improve recoveries of amount lent to companies. The draft bill has proposed a timeline of 180 days, extendable by another 90 days, to resolve cases of bankruptcy. The new bankruptcy code will help India in the World Bank's Ease of Doing Business ranking.
 
The Indian central bank's new guidelines for calculating tenor-based lending rates, effective from April 1, 2016, will reduce pressure on the mortgage lender's net interest margin, global credit rating agency Moody's has said. In an article "Reserve Bank of India Eases Banks' Final Lending Rate Requirements, a Credit Positive" the agency said: "The new guidelines will reduce pressure on the banks' net interest margins (NIMs), a credit positive. Under the finalised guidelines, banks will gradually adopt the marginal cost of funds lending rate (MCLR) to price their loans." On December 17 this year, the Reserve Bank of India (RBI) issued guidelines for calculation of lending rates by banks adopting the marginal cost of funds lending rate (MCLR) while pricing their loans. The guidelines apply for the loans starting next fiscal and will be tenor-based benchmark rate instead of a single base rate. The components of MCLR are the marginal cost of funds, negative carry on the cash reserve ratio, operating costs and tenor premium. Indian banks currently set their base rates on either their average cost of funds, or marginal cost of funds. However, because the marginal cost of funds would result in a lower cost of funds amid declining policy rates, banks have not used it, Moody's said. "The RBI lowered policy rates by 125 basis points year-to-date while banks have reduced their base rates much less. The RBI expects the shift towards the MCLR calculation to result in lower lending rates for borrowers," the article states. The tenor-based lending rates will enable banks to price their loans more efficiently based on their funding composition and strategies, Moody's said.
 
Even as market regulator SEBI was being questioned over the introduction of new IPO application norms, the abridged form norm has turned out to be a damp squib as the ten-page form has become a 16-page set -- apart from leading to further complications rather than solving any. The Securities and Exchange Board of India (SEBI) has issued a notification introducing a 10-page format -- five sheets, printed on both sides -- replacing the 48-page version of the prospectus, to be issued with IPO application forms. The new format came into effect on December 1. A look at the application forms of recent IPOs by Narayana Hrudayalaya, Alkem Laboratories and Path Labs shows that the companies have actually come out with 16-page forms instead of 10.
 
In an irony of sorts, foreign players have begun cashing out in a big way from the Indian mutual fund industry when its total asset base is fast nearing Rs15-lakh crore mark and fund houses are upbeat about future growth prospects with retail investors joining the party. As the year 2015 draws to a close, data shows that total Asset Under Management (AUM) of the mutual fund industry crossed Rs13.5 lakh crore mark for the first time, while more than 50 lakh new investor accounts have been added this year. The performance stands out even better when seen in the context of the equities market not performing so well.
 
Shares of Sun Pharma slumped over 7% intraday on Monday as investors grow cautious about a warning letter for its Halol manufacturing unit. The drug major has received a warning letter from the USFDA over violation of manufacturing norms in its facility at Halol in Gujarat. The warning letter follows inspection of the facility in September 2014 by US Food and Drug Administration (USFDA) inspectors. Shares of Sun Pharma closed at Rs754.45, down 4.55% 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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