Citizens' Issues
Six Twitter accounts resembling PMO's official account blocked

Earlier, the PMO had asked the Twitter to shut down these accounts but after it was not done, the matter was referred to the Cyber Security Cell, which did the job

New Delhi: Six Twitter accounts, having resemblance to the Prime Minister's official account 'PMOIndia', have been closed down after objectionable content was detected on these, reports PTI.


Sources said the PMO had asked the Cyber Security Cell of the Department of Information and Technology to block these accounts as these could be mistaken as the official account of the PMO and have serious ramifications.


"These accounts contained certain content having communal overtones and it could be dangerous," a source said.


Earlier, the PMO had asked the Twitter to shut down these accounts but after it was not done, the matter was referred to the Cyber Security Cell, the sources said.


The matter is about two months old, they said.


The particular action by the PMO is separate from the recent action initiated by the Home Ministry against some internet portals after some of them were found to be helping in rumour mongering about threats to people from North East in various other parts of the country.


The PMO has initiated the action after taking relevant legal opinion and going through the respective clauses of the Information and Technology Act.


The authentic twitter account of the PM Manmohan Singh's office is 'PMOIndia' and it states that it is the "official twitter account of the Prime Minster's office. Pages may be archived under IT Act".


The account is operational and tweeting since 23rd January this year and is being operated from the national capital.


CCI rejects notice seeking nod for Aditya Birla-Pantaloon deal

CCI rejected the application seeking approval for the proposed takeover of Pantaloon by Aditya Birla Nuvo saying the final deal was yet to be approved by the boards of these companies

New Delhi: The Competition Commission of India (CCI) has rejected an application seeking its approval for takeover of Future group's Pantaloon brand business by Aditya Birla Nuvo, as the final deal was yet to be approved by the boards of the concerned companies, reports PTI.


Aditya Birla Nuvo Ltd, part of Kumar Mangalam Birla-led group, through a subsidiary has proposed to acquire a majority Pantaloon format business from Kishore Biyani-led Future group and the concerned parties had sought clearance from the Competition Commission for the deal on 16th July.


In its order dated 14 August 2012, which was posted on its website yesterday, CCI said that the application mentions about "the scheme including the proposal of demerger and merger" being yet to be approved by their boards of the concerned parties.


Both entities, according to the Commission, sought approval based on their Memorandum of Understanding (MoU) for the proposed deal.


As per the application, the companies in discussions are yet to finalise the exact scope of the assets to be acquired and the share entitlement ratio.


Further, the the terms of the proposed transaction are subject to the agreement by the companies in the scheme and other definitive documents that are to be executed, the order said.


"It is also observed from the terms and conditions in the MoU, that the said MoU is an interim arrangement since it will terminate immediately on execution of the implementation agreement or if the scheme does not get approval from the board of directors of the respective parties," it noted.


In late April, Future Group had said that Aditya Birla Nuvo would infuse Rs1,600 crore into its flagship 'Pantaloon' and would acquire a majority stake in the store chain, which would be later demerged to be listed as a separate entity.


As a part of the deal between the two companies, the Pantaloon format would be demerged from PRIL. .


The group's flagship firm, Pantaloon Retail India Ltd (PRIL) currently operates the 'Pantaloon' chain of fashion apparel and accessories stores.


As part of the proposed transaction, Aditya Birla Nuvo Ltd (ABNL) would subscribe to debentures amounting to Rs 800 crore issued by PRIL and on completion of the demerger process, the debentures would convert into equity in the demerged entity of the Pantaloon format.


Further, ABNL would take care of Rs800 crore debt of Pantaloon


In April, ABNL had said that it would also make an open offer of a minimum 26 per cent to the shareholders of the resulting entity.


The Commission said the notice, jointly submitted by the concerned companies, for the proposed deal was given pursuant to the MoU execution while awaiting the final decision from their respective boards.


"Considering the facts on record and the information provided in the notice jointly given by the parties (companies) for the proposed combination, the Commission hereby decides that the notice given by the parties is not a valid notice...," the order said.


The notice seeking approval for the deal was jointly moved by ABNL, Peter England Fashions and Retail Ltd (PEFRL), Indigold Trade and Services Ltd (ITSL), PRIL and Future Value Fashion Retail Ltd (FVFRL).


RBI tightens norms for securitisation of loans by NBFCs

The revised RBI guidelines also stipulate that NBFC cannot sell or securitize a loan unless three monthly instalments have been paid by the borrower

Mumbai: The Reserve Bank of India (RBI) has tightened the non-banking finance company (NBFC) securitisation norms by stipulating that an NBFC will have to retain at least 5% of the loan being sold to another entity, reports PTI.


The revised guidelines, issued by the RBI also stipulate that NBFC cannot sell or securitize a loan unless three monthly instalments have been paid by the borrower.


These stipulations, the central bank said are aimed at checking "unhealthy practices" and distributing risk to a wide spectrum of investors.


Giving details of the guidelines, the RBI said a loan up to two years can be securitised only after payment of three monthly instalments by the borrower. The limit for loans between two and five years is six monthly instalments and above five years, 12 monthly instalments.


With regard to minimum retention requirement (MRR) for securitisation, the guidelines said the NBFCs selling loans will have to retain 5% of the amount if the loan is for less than two year period and 10% if it is of over two years.


The originating NBFCs, it said should disclose to investors the weighted average holding period of the assets securitised and the level of their MRR in the securitisation.


They should also ensure that prospective investors have readily available access to all materially relevant data on the credit quality and performance of the individual underlying exposures, cash flows and collateral supporting a securitisation exposure, RBI said.


As per the guidelines, NBFCs should formulate policies regarding the process of due diligence to be exercised by their own officers to satisfy about the Know Your Customer requirements and credit quality of the underlying assets.


RBI also said that NBFCs will not be permitted to carry out re-securitisation of assets and synthetic securitisation, which refers to bundling of assets with different risk profile.


These guidelines have to implemented by NBFCs in two phases by October end.


Earlier, the RBI had issued similar guidelines with regards to securitisation of loans by banks.


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