CBI registers FIR in ICICI-Videocon loan case. Govt to frame new rule to mandate regulators and other autonomous bodies to transfer surplus to it. Renault Chief Executive and Chairman Carlos Ghosn resigns. Yes Bank names Ravneet Gill as MD and CEO.
Now to Today's Top Business News Stories in Our End Of Day Wrap Up:
CBI registers FIR in ICICI-Videocon loan case.
Conflict of Interest: The CBI has registered a criminal case against former ICICI Bank Chief Executive Officer Chanda Kochhar, her husband and NuPower Renewables founder Deepak Kochhar and Videocon Group Managing Director Venugopal Dhoot in light of the ongoing ICICI-Videocon loan fraud case.
Hit Refresh: It is alleged that Videocon promoter Venugopal Dhoot invested heavily in Nupower months after the Group received INR3,250cr as loan from ICICI Bank in 2012.
ICICI Bank fell 2% intraday before closing at INR365.55.
Vodafone Idea to raise INR25,000cr to take on Reliance Jio.
War-Chest: Vodafone Idea plans to raise c. INR25,000cr via a rights offering to take on its competitors (Read Reliance Jio). The promoter shareholders Vodafone Group and Aditya Birla Group to infuse up to INR11,000cr and up to INR7,250cr respectively, according to a statement on Wednesday.
Also, this: Vodafone Idea is also planning to sell its 11.5% stake in Indus Towers - the cell-phone tower company it jointly owns with Bharti Infratel and Aditya Birla Telecom in an attempt to strengthen its balance sheet.
Renault Chief Executive and Chairman Carlos Ghosn resigns. Yes Bank names Ravneet Gill as MD and CEO.
A Resignation: Renault’s board is set to meet on Thursday to replace its CEO and Chairman Carlos Ghosn who resigned on Wednesday. As per reports, Renault is likely to name Thierry Bolloré, its deputy CEO as Chief Executive and Michelin Chief Jean-Dominique Senard as the Chairman of the company.
Zoom Out: Mr Ghosn is currently under arrest in Tokyo, charged of understating his compensation for eight years. He is also accused of pushing Nissan to pay another company of a Saudi Arabian friend who granted him a personal favour.
Perspective: Mr. Ghosn’s legal troubles also threatened Renault’s alliance with Japanese automakers Nissan and Mitsubishi Motors. His resignation is likely to reign in peace.
An Appointment: Yes Bank has won RBI's approval to appoint Ravneet Gill, India head at Deutsche Bank as its MD and CEO, who will succeed Rana Kapoor.
Backstory: This follows RBI's earlier directive which did not extend the bank's MD & CEO Rana Kapoor’s tenure after January 31, 2019.
Yes Bank shares rallied c. 14% during the day, before closing at INR225.50.
Piyush Goyal takes charge as Interim Finance Minister; to present the Interim Budget. Govt to spend 6.5% more on food subsidies in FY2019-20.
What You Need to Know: Railway Minister Piyush Goyal takes charge as Minister of Finance and Corporate Affairs in the absence of Arun Jaitley. Goyal is set to present the Interim Budget on 1st February.
Subsidies: The government is likely to earmark c. INR1.8tr for food subsidies in FY2019-20.
What You Need to Know: Under the National Food Security Act (NFSA), a state buys rice and wheat from farmers at a guaranteed price and sells it at about one-tenth of the market price. A bulk of the food subsidies go towards covering the cost of buying rice and wheat from farmers at a higher price and selling these grains to the poor at highly subsidised prices.
Prime Minister Narendra Modi has raised food subsidies by nearly 47% to INR1.69tr in the current fiscal year.
Govt to frame new rule to mandate regulators and other autonomous bodies to transfer surplus to it.
Surplus: As per a Business Standard report, the government has decided to frame a rule that would require regulators and other autonomous bodies, including SEBI, insurance regulator IRDAI and pensions regulator PFRDA to transfer surplus funds to the exchequer.
According to the CAG report, 14 regulators and autonomous bodies together hold surplus cash of INR6,064cr as of March 2017. The proposed transfer would help the Centre reduce its fiscal deficit.
Perspective: The development comes less than a month after a panel of six led by ex-RBI Governor Bimal Jalan was set to review the RBI’s Economic Capital Framework which will decide whether the Central Bank holds excess provisions, reserves and buffers, which could be remitted back to the govt.
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