Page 13 - Banking Finance September 2020

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Modi launched a mobile app e-Gopala Citigroup Global Markets India, DSP Ordinance preventing the initiation of
that will provide solutions to farmers Merrill Lynch, ICICI Securities, JM Fi- insolvency proceedings against compa-
on livestock related issues and inaugu- nancial, and SBI Capital Markets are nies for defaults in the six-month pe-
rated Semen Station with state-of-the the book-running lead managers to the riod starting March 25 under the Insol-
art facilities in Purnea with an invest- issue. UTI AMC is the second-largest vency and Bankruptcy Code (IBC).
ment of Rs 84.27 crore on 75 acres of asset management company in India in L Viswanathan, partner at Cyril
land made available by the Bihar gov- terms of total assets under manage-
ernment. ment (AUM). The company caters to Amarchand Mangaldas, said the ex-
tension was in line with the time given
After the launch, the Prime Minister individual and institutional investors to lenders and borrowers to restruc-
interacted with farmers focusing on through a wide variety of funds and ture loans by the RBI, and "therefore
services.
the livestock and fisheries sector. The if a restructuring is not initiated within
PMMSY is a flagship scheme for focused the timeline stipulated by the RBI,
and sustainable development of fisher- Covid wipes out an esti- lenders will have the right to initiate
ies sector in the country with an esti- mated 500 million jobs insolvency proceedings for future de-
mated investment of Rs 20,050 crore faults."
for its implementation during 2020-21 worldwide
to 2024-25 as part of Aatmanirbhar The damage to labor markets from the Rs 1,350-cr J&K package
Bharat package. coronavirus is proving worse than an-
ticipated, according to the Interna- 5% interest grant for all
The investment of Rs 20,050 crore
tional Labour Organization, which also
under PMMSY is the highest ever in the borrowers
sees a much slower recovery at the end
fisheries sector, the PMO said. Jammu and Kashmir Lieutenant Gover-
of this year.
Out of this, an investment of about Rs The ILO said that global working hour nor Manoj Sinha announced a Rs 1,350
12,340 crore is proposed for benefi- crore relief and rehabilitation package
losses so far this year have been "con-
ciary-oriented activities in marine, in- for the business community in Jammu
siderably larger" than previously esti-
land fisheries and aquaculture and mated. In the second quarter, working and Kashmir, in light of the Covid-19
about Rs 7,710 crore investment for hours were 17% lower compared with economic slowdown.
fisheries infrastructure.
the end of 2019, equivalent to almost The main component of the package
500 million jobs. That's up from 400 is 5% interest subvention (a grant by
UTI AMC set to go public million projected in June. the government) to all borrowers "ir-
with Rs. 3,000-cr issue The organization also estimates that respective of size", which would cost
UTI Asset Management Company (UTI labor income losses around the world the administration Rs 950 crore, and
AMC) is planning to launch its Rs. -- excluding the offset from govern- would be available for six months in
3,000-crore initial public offering (IPO) ment support programs -- amounted to the current financial year, the LG said,
on September 29. The IPO is a pure $3.5 trillion so far. terming the move unprecedented.
offer for sale (OFS). State Bank of In- "There are special circumstances here.
dia, Life Insurance Corporation of India Govt extends suspension For the last several years, people in-
(LIC), Punjab National Bank, Bank of of new insolvency cases by volved in business, trade, industry or
Baroda, and T Rowe Price Interna- artisans have faced a lot of difficulties.
tional are selling shares. The issue will 3 months I am happy to announce that the ad-
close on October 1, and the details of The government extended the time ministration has approved a Rs 1,350
the price band are not known. The IPO period, in which defaults by companies crore package for the business sector
includes a reservation of up to 200,000 cannot be grounds for initiating insol- which has been battling an economic
shares to eligible employees. The offer vency proceedings, by three months, crisis," Sinha said, adding that the pack-
constitutes 30.75 per cent of the post according to a notification by the Cor- age was in addition to the announce-
paid-up capital of the company. porate Affairs Ministry. ments by the Prime Minister under the

Kotak Mahindra Capital, Axis Capital, The government, in June, issued an Aatma Nirbhar Bharat Abhiyan.

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