Companies & Sectors
Reliance Capital hives off commercial finance business
Chennai : Anil Ambani-led Reliance Capital on Thursday announced hiving off its commercial finance division into a separate wholly owned subsidiary.
 
In a statement, Reliance Capital said the board of directors approved the transfer of its commercial finance division into a separate wholly owned subsidiary.
 
The move aligns with the existing corporate structure of Reliance Capital having all its operating businesses as a wholly or majority owned subsidiaries.
 
The commercial finance business has an aggregate asset under management (including securitised portfolio) of Rs.15,049 crore as on December 31, 2015.
 
"All operating businesses of Reliance Capital Ltd., except the Commercial Finance business, are held in its wholly or majority owned subsidiaries. Accordingly, to align the overall operating structure, it is proposed to transfer the Commercial Finance division of the Company into a wholly owned subsidiary," Sam Ghosh, executive director and group CEO, Reliance Capital, was quoted as saying in the statement.
 
"This will also facilitate the treatment of the company as a Core Investment Company (CIC) in terms of applicable RBI regulations," Ghosh added.
 
The proposal will enhance management focus on Reliance Commercial Finance and also provide flexibility to the company to unlock value through stake sale, Reliance Capital said.
 
The demerger will be soon filed for requisite approvals and would be effective from April 1, 2016, subject to necessary court and regulatory approvals.
 
As per the scheme, the commercial finance division of Reliance Capital would be merged into Reliance Gilts Limited, a wholly owned subsidiary of Reliance Capital, and this merged entity would be renamed Reliance Commercial Finance Limited.
 
Reliance Capital would be applying to the Reserve Bank of India for registering itself as a CIC, post the transfer, and this move would also facilitate the application of banking licence, as and when the RBI policy permits.
 
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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Prabhu promises independence of development authority
New Delhi : Railway Minister Suresh Prabhu on Thursday assured the independence of the Rail Development Authority for fixing of realistic fares.
 
The minister's assurance came while presenting the Railway Budget for 2016-17 in the Lok Sabha.
 
The formation of an independent authority was proposed last year. 
 
The authority has been envisaged to enable fair pricing of services, promotion of competition, protection of customer interest and to maintain efficient standards. 
 
The minister further elaborated that the draft bill for formation of the authority will be ready after holding extensive consultations with stakeholders.
 
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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More lower berths for elderly, e-tickets easier for disabled
New Delhi : The Indian Railways is fulfilling its social obligations towards Divyang, senior citizens and women travellers, Union Railway Minister Suresh Prabhu said on Thursday while presenting the rail budget in the Lok Sabha.
 
Prabhu said that for Divyang (differently able), the railways have introduced one-time registration for availing concessions while booking tickets online, online booking of wheelchairs and Braille-enabled new coaches. 
 
Also, the quota of lower berths has been increased for senior citizens and women. 
 
“In the coming financial year, the railways is increasing the senior citizen quota per coach by 50 percent, resulting in almost 120 lower berths per train for senior citizens,” he said.
 
The minister said that in pursuance of the objectives of Accessible India campaign, Indian Railway will ensure that all stations under redevelopment are made disabled friendly. 
 
He said that at least one disabled-friendly toilet on all platforms in A1-class stations will be built in the next financial year. 
 
To make travel hassle-free for common man on dense routes, the railways would introduce a long-distance, fully unreserved, superfast train service -- called Antyodaya Express -- on these routes, Prabhu said. 
 
Besides, there would be more unreserved coaches in some long distance trains to enhance the carrying capacity. These coaches will also have facility for potable water and a higher number of mobile charging points, the minister said.
 
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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