The newly enacted Insolvency and Bankruptcy Code is going to make debts funds easier for firms according to the newly appointed Chairman of the Insolvency and Bankruptcy Board – MS Sahoo. Speaking at a seminar in Mumbai, Mr Sahoo said that the new law will make the debt market as vibrant as the equity market. India’s financial system has a laggard in the form of an underdeveloped bond market. Lack of procedures in insolvency causes funds remain unrecovered in case of failure of companies. The Bankruptcy Code tries to overcome this difficulty. Exactly, the Code brings guidelines for early and timely settlement of failing companies without allowing the finances of the le
The 148-year-old family owned Business Conglomerate – TATA Sons’ board room storm may adversely affect domestic institutional investors like LIC. Several investment biggies including insurance companies, banks and pension funds have put their resources on various TATA Son entities. But now, with unease at the top and potential for destructive revelations, share prices may get a setback. This is what the Finance Ministry warns the public sector financial institutions who have invested heavily in the conglomerate’s businesses. The Finance Ministry has already asked LIC and other institutions to have a close watch on developments in the coming days. LIC is one of t
The World Bank observed that when technology is reshaping world, India and China may loss job from technological progress. Developments in technology, driven by automation may affect employment situation in two largest populated economies. According to the Bank, automation will affect 69% job in India and 77% in China. The Bank’s President, Jim Yong Kim in a speech at Brookings Institute, Washington, US, told that automation led by technological progress is going to disturb traditional path of economic growth in developing countries. “As we continue to encourage more investment in infrastructure to promote growth, we also have to think about the kinds of
Internet’s pioneer firm Yahoo has decided to go with US telecom firm Verizon after long years of struggle in the digital world. Silicon Valley based Yahoo’s board has agreed to sell Yahoo’s core internet operations and land holdings to Verizon for $4.8bn. The ageing internet firm has lost its charm it had many years back amidst tough competition and innovation from new boys of the digital world – Google and Facebook. Yahoo, the ace firm founded at the beginning of the internet era in 1994, has lost its sheen over the last one decade. It was one such fine organization that gave Silicon Valley the image of the entrepreneur’s city. Value of the company
Software’s pioneer entity – Microsoft is buying professional networking firm LinkedIn to boost its business. In a major acquisition move, Microsoft has offered $26.2 bn to LinkedIn which means the Seattle based operating system specialist is paying a golden premium of nearly 50%. The deal is the biggest acquisition for Microsoft which is thinking about new ways to expand sales and to grow in the digital world. Few years back, Facebook acquired Whatsapp for $19 bn signaling intense competition in the networld. Microsoft was trying constant experiments during the last few years by coming out of its traditional software tag. Acquisition of Nokia and some small companies
The Lok Sabha has passed the much awaited resolution regime or what is known as the bankruptcy code for the corporate sector. The bill titled as the Insolvency and Bankruptcy Code 2015, expected to go through the upper house smoothly, will facilitate speedy and healthy settling of unviable firms. India so far only fractured clauses in several Acts like bankruptcy proceedings in India are governed by multiple laws — the Companies Act, SARFAESI Act, Sick Industrial Companies Act etc to settle the bankruptcy issues. Absence of right procedures means corporate are not able to wind up a sick companies’ operations before its financials getting worsened. Here, all concerned,
How wives, children and relatives of world’s rulers and other elites uses tax avoidance arrangements in secretive tax havens to keep their ‘money safe’ is depicted by the just released Panama leaks. Being hidden in distant destination lockers, the owners of these money need not worry about any enquiry on the origin of their money or tax scans. Mossack Fonseca is a legal firm that weaves tailor made tax avoidance arrangements for its customers. Its activity is to arrange or create companies that need little disclosure about the identity and activities of the client. At the end a tax avoider becomes an investor. Its customer base is wide and include rich from the
One of the leading controversies of our time is the perpetual ability of the elite to keep money in foreign countries. Equally matching is the government’s inability to block it not to say its inability to bring back it. Despite higher return are in India, rich and the affluent park their money abroad because of the many inbuilt advantages with offshore options. Choices are wider - there is scope for keeping money in secret accounts and in the form of ‘companies’ to get the advantage of the most attractive feature of having offshore wealth – secrecy. “The offshore world has really only one product that is secrecy.” -asserts one of the journalis
The Attorney General gave testimony in front of the Supreme Court that wilful defaulter and Rajya Sabha MP Vijay Mallya has left the country on March 2 some unknown foreign destination. Attorney General Mukul Rastogi has asked the court to pass an order directing Mallya to appear before the bench. The court has observed its limited options to initiate action against the billionaire. “there seems to be very little left for us (to do),” – remarked Justice Nariman who is one of the judge in the two-member Division Bench hearing the case filed by the 17-member bank consortium. Attorney General also brought notice to the court that most of his assets are abroad with
The Supreme Court’s hearing on the consortium of banker’s plea against Vijay Mallya is going to be a path breaking event against wilful defaulters in the country. Consortium of 17 banks led by SBI have filed a complaint against Mallya for not allowing to leave the country. Indications are that the SC may take serious initiatives against Mallya in the context of the increasing difficulty of the system to arrest wilful defaulter practices. Over the last few weeks, opinion from different quarters are strong that the existing official machinery including RBI, SEBI and banks are not taking serous steps to stop wilful defaulters. The SC has already made notable efforts in
Dictionary on Indian Economy
- Logic of withdrawing Rs 1000 and Rs 500 notes
- Raghuram Rajan: The Gladiator returns to Chicago
- Why the GST reform is transformational?
- Good intention but poor thinking - what troubles demonetization?
- India Black Money Report: CBI underestimates black money at Rs 25 lakh crore
- High interest rate rather than inflation is the macroeconomic problem for India right now
- Japan’s first trade deficit in 30 years is part of the Global Shift
- Why we need an emergency monetization plan as well?
- Arvind Subramanian rocks with 'Chakravyuha' in Economic Survey
- NREGS: give respect to the tax payer’s money