Page 14 - Banking Finance November 2020
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         market is a "public good". SEBI hopes  patterns of people during the  Multi-modal logistics park
         the initiative will help make available  coronavirus-induced lockdown, it said.
         data on the Indian securities market to  "The impact of the pay cuts or delays  to generate 20 lakhsjobs
         researchers, policy makers and the  was the next big reason why most bor-  Union Minister of Road Transport and
         general public.                                                       Highways Nitin Gadkarisaid that the up-
                                            rowers resorted to borrowing, 27% of
                                                                               coming multi-modal logistics park
                                            respondents cited repayment of their
         Govt seeks financial bids          monthly instalments from the earlier  (MMLP) will generate 20 lakh direct and
         for monetising MTNL as-            loan as the second-biggest reason be-  indirect employment once completed.
                                            hind borrowing.                    Designed as a state of art facility,
         sets                                                                  MMLP Jogighopa is envisioned to drive
         The government has kick-started the  Manufacturing PMI rises          economic growth and trade competi-
         process of monetising land assets of                                  tiveness of the country through a truly
         telecom firm MTNL and has sought bids to decade high                  integrated, seamless, efficient, reliable
         from global property consultancy firms  India's manufacturing may be back on  and cost-effective logistics network. It
         for managing the sale process. The  track, rebalancing itself from the Covid-  is aimed to improve the logistics effi-
         Department of Investment and Public  19 impact, the purchasing managers'  ciency and facilitate the Domestic and
         Asset Management (DIPAM) has in-   index (PMI) data, released by IHS  ExportImport trade in the region. The
         vited financial bids by November 9  Markit, shows.                    state government has transferred
         from the firms for monetising flats,  India's manufacturing PMI rose to 58.9  200acres of land belonging to Ashok
         apartments and plots of MTNL which                                    Paper Mill for the project.
                                            in October, the highest it has achieved
         have been divided into 5 clusters.
                                            in more than a decade.             Gadkari said that the project once
         46% Indians borrowed to            Driven by robust sales, the pace gath-  completed would generate around 20
                                            ered by manufacturing output--a cru-  lakh direct and indirect employment.
         run households during the          cial component of the headline PMI--  He informed that the project, to be
         pandemic                           was the quickest since October 2007,  implemented with a cost of Rs. 1171
                                            contributing to the PMI's gains, the  crore in two phases, is proposed to be
         Nearly half of Indians have primarily                                 completed by 2023.
                                            monthly report by IHS Markit said.
         depended upon borrowed money to
         run their households during the ongo-  Headline PMI went past 56.8, seen in  Exchanges should clear
         ing COVID-19 pandemic, according to  September, which was an eight-year
         a report.                          high.                              listed firms' scheme of ar-
         With job losses and pay cuts across indus-  A PMI value above 50 indicates that rangements
         tries, the lower middle-income group has  activity expanded in a month over the  Now, a no-objection certificate from
         been affected severely and the pandemic  previous one. But it should be noted  stock exchanges, the National Stock
         has led to a shift in perspective towards  that the PMI is a month-over-month  Exchanges and the BSE, will be re-
         loans and borrowing preferences, said  indicator, showing improvement over  quired for listed companies for their
         the report by Home Credit India, a local  the previous month, and not over the  scheme of arrangement.
         arm of the international consumer fi-  previous year.                 Also, independent directors will have to
         nance provider with operations spanning  In addition, manufacturers spent more  certify that the scheme is not detri-
         over Europe and Asia.              on buying inputs in October too. The  mental to the company shareholders
         The report, based on a survey, showed  reopening of sectors took overall con-  and a valuer report will have to be
         that 46% respondents borrowed      fidence to a 50-month high.        tabled.
         money primarily to run their house-  But on employment, the payroll num-  These rules are a fresh dictate of SEBI
         holds.                             bers are still low, and in fact, lower  and will ensure that companies do not
         The survey was conducted among     than in the previous month, due to  take shareholders for a ride and some-
         about 1,000 respondents across seven  pandemic-related restrictions on com-  body is held responsible in case of
         cities to understand the borrowing  panies.                           lapses, experts said.


            14 | 2020 | NOVEMBER                                                           | BANKING FINANCE
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