Page 12 - Banking Finance December 2017

ROUNDUP

India as favorable place A third of IPOs trading below issue price
for doing business As per report from Prime Database, shares of one in three
companies listed in 2017 have been trading below their
The World Bank's Doing Business issue price. Of the amount raised in 2017, Rs65, 086
2018 report
mentions crore was raised by companies through 28 initial public
that India offering (IPOs) on the main board of exchanges. Ten of
ranks 100th these 28 companies are trading below their offer price.
among 190
countries on ease of doing business. Non-compliance leads to de-registration of companies
The position has improved 30 ranks The Ministry of Corporate Affairs said that about 2.24 lakh companies have been
higher than the last year's data. "It de-registered for remaining inactive and not filing
has never been easier to do business financial statements for two years or more. Like-
in India. India welcomes the world to wise, around 3.09 lakh directors on the board of
explore economic opportunities our companies that failed to file financial statements
nation has to offer," Prime Minister and/ or annual returns for a continuous period of
Narendra Modi tweeted minutes af- three financial years during 2013-14 to 2015-16
ter release of the report. have been disqualified.

Adhia appointed the Over 3,000 disqualified directors have exhausted the prescribed limit of maxi-
mum number of directorships. The MCA also said that steps are under way to
new finance secretary set up National Financial Reporting Authority (NFRA), an independent body to
An official order recently mentioned test check financial statements, prescribe accounting standards and take disci-
the appointment plinary action against errant professionals.
of revenue secre-
tary Hasmukh Another initiative is also undertaken to develop software application to put in
Adhia as the new place an 'Early Warning System' to strengthen the regulatory mechanism. After
finance secretary. de-registration process, restrictions have been imposed on operation of their bank
Adhia has been accounts in accordance with the law.
involved in rollout Also, Preliminary Enquiry on the basis of information received from 56 banks in
of GST as well as direct tax reforms. respect of 35,000 companies involving 58,000 accounts has revealed that over
Adhia, a 1981 batch IAS (Indian Ad- Rs. 17,000 crores was deposited and withdrawn post-demonetisation. In one
ministrative Service) officer of Gujarat case, a company, which had a negative opening balance on November 8, 2016,
cadre, is also known for helping design deposited and withdrew Rs. 2,484 crores post-demonetisation.
social security schemes such as
Pradhan Mantri Suraksha Bima In order to address the criminality angle, the Director, Additional Director or
Yojana, Pradhan Mantri Jeevan Jyoti Assistant Director of SFIO have been recently empowered to arrest any person
Bima Yojana and Atal Pension Yojana believed to be guilty of any fraud punishable under the Act. Under Section 447
as well as the micro-financing scheme of the Act, which defines fraud, stringent punishment including imprisonment
Pradhan Mantri Mudra Yojana. up to 10 years is stipulated.
Rs. 17,000 crores transac- Maruti holds first position as exporter of passenger cars
tions in shell companies Maruti Suzuki India claims the no. 1 position as the largest passenger vehicles

Reports show that suspected 'shell' exporter pushing Hyundai Motor India Ltd behind
companies deposited and withdrew Volkswagen and General Motors. As per the lat-
Rs. 17,000 crores in the days after est data from Society of Indian Automobile
the note ban. The data, issued by the Manufacturers (SIAM), Maruti Suzuki India (MSI)
Centre, is from 56 banks for 35,000 exported 57,300 units of passenger vehicles (PVs)
companies, which had a total of as against 54,008 units in the year-ago between
around 58,000 bank accounts. April-September period this fiscal.

12 | 2017 | DECEMBER | BANKING FINANCE

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