Companies and Markets

Companies & Markets

RoC to grill former IL&FC brass on fund management

The Registrar of Companies (RoC) has asked indebted IL&FS’ ex-management and independent directors to explain the trail of fund and its deployment, the role of auditors and how it was paying dividends to shareholders from debt.

It is also seeking answers from IL&FS how it indiscriminately raised long-term and short-term loans through public sector banks and financial institutions.

Ex-directors extend full support to new board

Former independent directors of IL&FS have written to the new chairman, Uday Kotak, extending their “complete support” in the revival of the company. In a letter, five former independent directors, including former LIC chairman SB Mathur, have said IL&FS, despite several attempts, was unable to raise additional equity and thus the “asset-liability” mismatch continued to aggravate.

Other independent directors of the erstwhile board were Maruti Suzuki’s RC Bhargava, former IAS officer Michael Pinto, Jaithirth Rao and Rina Kamath.

Auto stocks tank over fuel prices, rate hike

Auto sector stocks fell sharply on Wednesday as investor concerns grew over high fuel prices, mixed vehicle sales numbers in September and an imminent RBI rate hike. The BSE Auto Index fell 2.90 per cent and its counterpart Nifty Auto fell 2.94 per cent, far more than Sensex and Nifty, which 50 fell by 1.51 per cent and 1.36 per cent, respectively.

Passenger vehicle makers suffered more than commercial vehicle manufacturers in line with the September auto sales data, which showed weak car and two-wheeler sales but improved commercial vehicle sales.

Walmart submits details of tax deducted from Flipkart investors

US retail giant Walmart has submitted to Income Tax (I-T) authorities its rationale for deducting tax on payments made to some Flipkart shareholders and not to others, a senior official said on Wednesday.

I-T authorities, which had previously asked Walmart to explain the logic behind its tax deductions on the $16 billion Flipkart deal, have the option to seek more clarifications from the US retailer once they study the reply.

Liquid funds see massive outflow

Liquid funds of mutual funds have seen massive outflows in the wake of the IL&FS crisis and the liquidity fears following it. CAMS data shows cash plans, or liquid funds, saw outflows of Rs 69,694 crore in September. Ultra liquid schemes also suffered net outflows of Rs 19,479 crore last month. This apart, all categories in the debt segment also saw outflows, except fixed maturity plans.

Rupee falls below 73-mark

The rupee touched a life-time low of 73.41 against the US dollar as crude prices jumped above $85 per barrel on expectations of tighter supply once the US sanctions start targeting Iran’s petroleum industry from next month.

Close to 80 per cent of crude is imported by India and oil prices at $83-84 per barrel makes the current account deficit (CAD) vulnerable.
The rupee touched a record low of 73.41 in the morning trade, while it saw some recovery during the day after it opened lower at 73.24 against Monday's close of 72.91 per dollar. The rupee finally ended at 73.34.

Rs 5 lakh is most preferred sum for health policies

While buying online, customers are largely comfortable purchasing health insurance policies for a sum assured of Rs 5 lakh. It used to be Rs 2 lakh a few years back. Nearly four out of ten Indians purchasing health insurance online prefer a minimum cover of Rs. 5 lakh, said a study by Policybazaar.com. The study took into account online buying behaviour of over 10,000 consumers across 20 states.

Rs 5 lakh is most preferred sum for health policies

While buying online, customers are largely comfortable purchasing health insurance policies for a sum assured of Rs 5 lakh. It used to be Rs 2 lakh a few years back. Nearly four out of ten Indians purchasing health insurance online prefer a minimum cover of Rs. 5 lakh, said a study by Policybazaar.com. The study took into account online buying behaviour of over 10,000 consumers across 20 states.

Irdai to meet insurers to know about exposure

Insurance regulator Irdai would meet insurers next week to figure out their exposure to IL&FS and its group companies, to secure the policyholders' funds in view of the company defaulting on interest payments. All the insurance companies will also have to make a detailed disclosure of their equity holdings in IL&FS and its group companies by October 30.

RBI eases ECB norms for oil firms

The Reserve Bank of India (RBI) on Wednesday liberalised the external commercial borrowings (ECB) rules for public sector oil marketing companies.

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