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Latest business, finance and stock market news today at 10am on June 7, 2024
Transcript of today’s latest business news at 10am on June 7, 2024
Let’s get started… RBI may allow Security Receipt holders to change the guardianship of Asset Reconstruction Companies. This change would allow ARCs to retain assets under pressure without acting as administrators, thus streamlining the resolution process. Banks, NBFCs and FPIs are the holders of RS issued by ARCs. The Security Receipt is an instrument similar to a pass-through certificate issued by ARCs to investors, which represents the investors’ rights to the realizations of the underlying assets. Under existing guidelines, when an ARC acquires distressed debt, it becomes a trustee of the underlying asset. So, currently there cannot be an administrator without debt. Bankers say the idea behind allowing the change in guardianship is to have a single trustee for pooled bad debts.
Sebi then introduced a framework of “financial disincentives” for stock exchanges and other market infrastructure institutions to address their failures in detecting abnormal or suspicious trading activities. It said, I quote, They need to be well equipped to detect market abuses, including new modus-operandi that could be adopted by unscrupulous elements and take appropriate, prompt, effective and preventive measures against such activities’, final quote. Under the new framework effective from July 1, Sebi will impose penalties in case of lapses related to surveillance at stock exchanges, clearing firms and depositories. The penalty will be based on the annual turnover of the previous financial year and the number of cases of lapses in vigilance during a financial year.
In an effort to make India carbon neutral, the country’s largest lender, the State Bank of India (SBI), aims to deploy a minimum of 7.5% of its domestic loans in the green energy sector by 2030. The loan portfolio The bank’s global total stood at Rs 37.67 trillion at the end of FY24. Sanctioned Rs 47,419 crore in loans for renewable energy projects in March 2024. During financial year 2024, the bank consolidated its environmental, social and governance (ESG) and climate finance functions under a dedicated unit, the ESG Unit and Climate Finance, SBI. Chairman Dinesh Khara said in the bank’s FY24 Corporate Responsibility and Sustainability Report.
Moving forward, the contractual employment trend that gained momentum in technology-based companies following the COVID-19 pandemic has now spread its roots across several sectors such as consumer durables, e-commerce and retail. These sectors are increasingly leveraging contractual functions to navigate short-term market demands, flexibly scale operations and build on the rapid adoption of artificial intelligence. Recent studies, including a comprehensive report from Careernet, a talent solutions provider, reveal robust growth in contractual hiring, with a compound annual growth rate of 15% since 2022, and a predicted increase of 20-25% in 2024 in compared to the previous year, with the majority of growth expected to come from Global Capability Centers.
In another development, three lenders of Go First – Central Bank of India, Bank of Baroda and IDBI Bank – have opened bids to sell a 94.71-acre land in Thane. The reserve price of the land parcel was maintained at Rs 1,965 crore. The land sale notice will be under the SARFAESI Act. Go First, currently under corporate insolvency resolution, owes Rs 3,918 crore to creditors. The property for sale is on Ghodbunder Road and in the name of Wadia Reality, it will be sold on July 22, the advertisement said. Creditors attempted to liquidate the mortgaged property after the airline declared bankruptcy in May 2023, when the Wadia group-backed carrier filed for voluntary insolvency following several years of losses.
Next up, Buy Now, Pay Later startup Simpl made another round of workforce reductions, laying off 30 more employees just a month after laying off 160 people. This strategic move comes at a time when the company intensifies its efforts to accelerate its path to profitability by mid-2025. Ashish Kulshrestha, Head of Communications, Simpl, said, quoting: ‘As an organization, we routinely review our business to improve efficiency and becoming more agile… we have adopted a series of measures to improve operational efficiency. Today’s decision to lay off 30 of our employees is a continuation of our organization-wide efforts to become a fiscally prudent company and achieve profitability by mid-2025,” the quote ends.
Lastly, GIFT Nifty indicated that Indian stock indices BSE Sensex and NSE Nifty 50 may have a subdued opening on Friday. Here’s everything you need to know before the market opens. GIFT Nifty was flat at 22,917, indicating a muted start for domestic indices NSE Nifty 50 and BSE Sensex on Friday. Earlier on Thursday, the NSE Nifty 50 advanced 201 points or 0.89% to end at 22,821.40, while the BSE Sensex jumped 692 points or 0.93% to end at 75,075. Meanwhile, the Wall Street or US market closed in a mixed situation ahead of an important report on the job market. The tech-heavy Nasdaq Composite fell 0.09% to end at 17,173.12. The S&P 500 fell 0.02% to 5,352.96. However, the Dow Jones Industrial Average rose 0.20% to 38,886.17.