1. Vijaya Mallya”s UB Engineering files Insolvency Petition
Pune based UB Engineering which belongs to Vijay Mallya led UB group has filed for insolvency in the National Company Law Tribunal (NCLT). The company owes around 450 crores to five banks viz Axis Bank, Yes Bank, Corporation Bank, IDBI Bank and Lakshmi Vilas Bank.
Insolvency is the state of being unable to pay the money owed, by a person or company, on time; those in a state of insolvency are said to be insolvent. There are two forms: cash-flow insolvency and balance-sheet insolvency. Accounting insolvency happens when total liabilities exceed total assets (negative net worth).
2. Inflows in equity MFs hit 18 months high in December 2016
Inspite of heavy volatility, heavy inflow of funds has managed to increase the MF sector balances during the quarter ended December 2016 which is a positive note. A total of 10,000 crore on a net basis entered the MF sector, which is said to be the highest since June 2015. The total number of equity accounts has surpassed 39 million marks, and the investors’ base has crossed 50 million. The clever investors invest during the volatile period and hope to increase their earnings.
3. Relaxed norms for IFSC companies:
In order to bring in more companies under the International Financial Services Centre (IFSC) in the form of relaxation in the regulatory guidelines has been suggested. This exempts entities from Corporate Social Responsibility (CSR) norms for five years along with other recommendations. A first of this type is being set up in Gujarat which forms a part of Special Economic Zone (SEZ). Any financial institution set up at the centre will be treated as a non-resident Indian entity located outside India.
The Corporate Affairs ministry has come out with notifications on exempting specified IFSC Public and Private Companies. Companies Act 2013 defines a Public Company as one having a paid up share capital of at least 5 lac while Private ones are those with a minimum paid up share capital of 1 lac. The entities should have the suffix of “IFSC” or “International”. Section 135, which relates to CSR, would not be applicable to the specified IFSC Public Company for five years.