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Cryptocurrency Future in India, The Origin of NPAs et al.

Professor of Financial Economics and Part-time Value Investor, Transfin.
Sep 11, 2018 1:57 PM 2 min read
Editorial

Good evening readers,

 

Regulators can be cruel. Period. The RBI demonstrated this trait when it, in effect, banned cryptocurrencies early this year disrupting business models which had not yet arrived in the first place. Concerns usually flagged to justify such actions appear sensible. Consumer interest, security, regulatory prudence and what not.

 

The love of the Indian regulator, however, to encapsulate such noble intentions in the form of blunt force trauma remains a mystery.

 

The sector has somehow chugged on and approached the Supreme Court for relief. After many months of to-and-fro and a refusal to grant interim relief, the final hearing in this matter starts tomorrow. Presenting below a recap of this event and 5 other top business stories through our End Of Day Wrap Up:

 

INDIA

 

ArcelorMittal reportedly increases bid for Essar Steel to INR42,000cr to compete against Numetal's INR37,000cr offer.

Lenders seek legal counsel to assess the revised offer considering NCLAT's recent push on ArcelorMittal to clear dues for related NPAs. New offer will be sufficient to secure principal claims of lenders in full.

 

Ex-RBI Governor Raghuram Rajan says most bad loans originated in 2006-2008 in note to Parliamentary Panel.

Parliament's Committee on Estimates, headed by Muril Manohar Joshi, invited Raghuram Rajan to brief it on the NPA issue. Rajan cited the lack of due diligence, especially in public sector banks, and fear of harassment by investigative agencies as principal drivers pushing up the bad loan problem.

 

Supreme Court to begin final hearings in the case of regulatory relief between cryptocurrency exchanges vs. RBI tomorrow.

Case comes following RBI's April direction pushing regulated financial institutions to break commercial links with all cryptocurrency exchanges and traders within 3 months, disrupting the new fintech sector. Exchanges approached the Supreme Court for relief.

 

Unlisted 'public' companies (entities with more than 200 shareholders) to issue new shares in demat form starting from Oct 2.

Transfer of share to be in demat or electronic form as well. Move said to be a push for enhancement of transparency, prevention of fraud, robust investor protection and governance.

 

US / INTERNATIONAL

 

Snap Inc.'s Chief Strategy Officer Imran Khan, to leave the company.

Imran Khan's departure comes while Snap is moving to reverse a poorly received redesign of its Snapchat app and after its first quarterly drop in daily active users.

 

European Parliament to vote coming Wednesday on a draft copyright directive intended to improve revenue generation for publishers

New draft to hold technology platforms like Google and Facebook more responsible for copyrighted content and give news publishers the right to negotiate payment for "digital use" by the tech firms of their content. Proposed 200 amendments will set parameters for continued negotiations in the Parliament, EU's executive body and European governments. Countries would have 2 years to implement the law once locked.

 

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