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Decline of the Fourth Estate, RBI Allows Banks to Lend More to NBFCs et al.

Professor of Financial Economics and Part-time Value Investor, Transfin.
Oct 20, 2018 1:08 PM 3 min read
Editorial

 

Goodevening reader,

 

Do you once in a while find time to look up? Just gaze at the stars, the Moon, the emptiness of space, wondering how insignificant our planet and its problems are, in the grand scheme of things that is.

 

Two things.

 

Firstly, you would probably have to drive 4 hours out of your city in any direction to catch a glimpse of the night sky sans light pollution and admire the above described poetic awesomeness.

 

Second, we just watched First Man and hence the existential hat ;)

 

The movie is truly incredible and highly recommended. Couldn't imagine a better way to throw a tribute to such a landmark event in human history. With the Apollo 11 landings' 50th anniversary coming next year, Director Damien Chazelle has timed it well for the Oscars.

 

Pro tip: Suggest going through these documentaries on the makings of the Lunar Module and the Lunar Orbit Rendevous, the Command Module, and the Saturn V rocket, before or after watching the movie. Only if you're a science and movie geek. Of course.

 

Since space exploration is the theme of today's email, will sign-off by sharing these breathtaking flyby images of Jupiter taken recently by the Juno spacecraft. Figured Saturday in the middle of the festive season may be a good time to look at the heavens.

 

Coming back still to more terrestrial issues, here's a look at Today Top 6 Business Stories through our End Of Day Wrap Up:

 

INDIA

 

ArcelorMittal emerges as highest bidder for debt-laden Essar Steel.

Arcelor Mittal has been selected as the highest bidder for Essar Steel, after it recently cleared dues worth INR7,469cr owed by Uttam Galva and KSS Petron following a SC ruling.

 

According to a story in The Economic Times, while both Arcelor-Mittal and Vedanta were very close in terms of bids, the former is likely to do a better job at restructuring the firm on back of its track record and experience.

 

Essar Steel with outstanding dues of INR49,000cr was one of the first twelve companies identified for immediate resolution under the Insolvency and Bankruptcy Code (IBC).

 

A successful deal would give the world’s largest steel producer a strong foothold in India.

 

RBI opposes creation of an independent Payment Regulatory Board (PRB).

An inter-ministerial panel set up to finalize the Payment and Settlement System (PSS) Act had proposed that the payments regulator should be an independent regulator with the chairperson appointed by the government in consultation with the RBI.

 

The RBI however, expressed its dissent citing that payments regulation must remain within the purview of the central bank.

 

RBI allows banks to lend more to NBFCs that don't finance infrastructure, on face of liquidity crunch.

The Central Bank ermits banks to raise their exposure to a single NBFC that doesn’t finance infrastructure to 15% of capital (up from 10%).

 

Jet Airways in talks to raise c. $800m from sale and leaseback of 16 of its aircrafts.

Facing stiff financial crunch on back of rising fuel prices and weakening Rupee, the airline is in talks with several parties for sale and leaseback of its 16 aircrafts.

 

The cash-strapped airline has 124 aircrafts in its fleet, including 16 that it owns—10 Boeing 777, three Airbus A 330 and three Boeing 737.

 

US/INTERNATIOANL

 

Facebook hires former deputy PM Sir Nick Clegg as Head of its Global Affairs and Communications team.

The social media giant has been facing severe scrutiny following the Cambridge Analytica data scandal and the recent data breach affecting 30 million users.

 

In a Facebook post, Sheryl Sandberg said the company needed "new perspectives to help us though this time of change". Clegg’s appointment will play a major role in pushing for laws that favour the company.

 

Phone manufacturers in Europe might have to pay Google $40 per device to carry Google apps.

The European Commission had earlier this year ruled that forcing device manufacturers to pre-install Google Search and Chrome was against its competition rules and fined the tech giant $5.1bn.

 

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