A round-up of the biggest articles from newspapers.
Below is a shortlist of all the important articles from newspapers.
Promoters allowed to give personal guarantee on foreign assets
The RBI plans to allow personal guarantees for overseas companies by Indian promoters who have got a controlling stake, Business Standard reports.
Why it’s important: It is a major shift from the RBI’s earlier stance.
The move helps ease of doing business by fewer approvals and simplified processes.
Indian firms are also allowed to pledge their foreign stakes as well as Indian assets to raise funds.
No objection from lenders is enough instead of RBI permission in most cases.
Akasa in talks to acquire 100 Max jets with Boeing
Akasa, the new entrant in the skies backed by ace investor Rakesh Jhunjhunwala, is in negotiation with Boeing for acquiring up to 100 737 Max aircraft, Business Standard reports.
Why it’s important: Akasa is also in talks with authorities about the safety of 737 Max jets and recertifies the aircraft.
The company plans to start operation early next year.
The listed price of each 737 Max jet is around $ 100 million, but huge orders bring the price to half of it aftermarket discounts.
Chawl revamp Central Mumbai to bring down realty prices by 25%
The over-a-century-old chawls in Central Mumbai are going for redevelopment, reports Business Standard.
Why it’s important: It opens up a ? 20,000-crore opportunity for real estate companies.
It will bring down realty prices in Central Mumbai by up to 25 per cent.
The project to open up 92 acres of land in Worli, Lower Parel, and Dadar consisting of 195 four-story houses replaced with nearly 40-story buildings.
The people living in the chawls have been given free housing in the government’s transit camps.
They will get new 500-sq ft home with just Rs 100 registration fee and without any maintenance fees for 10 years.
This will free up spaces and decongest these areas in the planned manner.
Major redevopers:
The Worli chawls to be redeveloped by the Tatas.
Shapoorji Pallonji Group to redevelop the chawls on NM Joshi Road.
L&T will redevelop the Naigaon area.
Amazon chalks out plans to bail out the Future group
Amazon.com Inc. is getting ready with a plan to bail out Future Retail, reports Mint.
Why it’s important: Future Retail is cash-strapped, needs ?5,000-5,500 crore to avoid defaults.
Amazon is ready to provide funds through an alternative investment fund route.
Amazon also plans to rope in more investors for equity infusion.
Past conducts of bankrupt firms are now under the lens
The authorities are planning to investigate the past businesses of the bankrupt firms’ business, reports Mint.
Why it’s important: It is getting tougher to rescue these companies due to their past deeds.
It is seen that half of the firms in the insolvency process are ending up in liquidation.
Race for Citi’s India retail business hots up with five lenders in the fray
HDFC Bank, Kotak Mahindra Bank, DBS Bank, Axis and IndusInd emerged as the top contenders to take over Citi India’s estimated $ 2-billion retail business, The Economic Times reports.
Why it’s important: This shows the magnitude of competitive portfolios under Citi India’s businesses in credit cards, mortgages, wealth management and deposits.
Among the five, Kotak Mahindra Bank, HDFC Bank and DBS Bank are street favourites.
The annual revenue of Citi India is about $ 1billion.
Vodafone plans to settle retro tax row with government
To avoid any more headaches, Vodafone Group is ready to settle the row with the Indian government over the retrospective application of tax on the transfer of assets, reports The Economic Times.
Why it’s important: The group wants to end the decade-old tax dispute.
Once the framework for the settlement is announced by the authorities, Vodafone will apply for it.
The government is ready to refund collected taxes after the settlement.
Vodafone is supposed to pay about Rs 22,100 crore in taxes, interest and penalties.
The government is also ready to give up this demand if the company accepts not to seek any damages.
Investors to shell out more for IPO loans
High net worth investors who want to borrow and invest in IPOs will have to fork out higher costs for such loans, reports The Economic Times.
Why it’s important: Due to the last two offerings resulting in losses, the funds are getting locked up.
Lenders are hiking rates by as much as 200 basis points, or 2% for IPO loans.
Lenders increase annualised interest rates up to 9-10% as against 7-8% last week.
Lenders say funds raised for IPOs of Devyani International and Krsnaa Diagnostics will not be released before Thursday.
HNIs lost about ?96 per share in the Glenmark Life Sciences issue.
In the Rolex Rings issue, investors made losses of about ?117 per share.
HNI portions of these two IPOs were subscribed 123 times and 360 times, respectively.
