My Application Form Status

Check the status of your application form with Angel Broking.
Arq - The Hyper Intelligent Investment Engine By Angel Broking
Ministry of UD to push dense urban growth along mass transit corridors for better living experience
Feb 28,2017

To effectively address the emerging urbanization challenges, the Ministry of Urban Development has come out with a multi-pronged policy framework to promote living close to mass urban transit corridors. This new initiatives seeks to promote Transit Oriented Development (TOD) which enables people to live within walking or cycling distance from transit corridors like the Metros, Monorail and Bus Rapid Transit (BRT) corridors, currently being taken up on a large scale.

The Ministry has formulated a National Transit Oriented Development Policy which will be discussed with the States and Union Territories at a National Workshop on Urban Development to be held next week. This policy seeks to enhance the depth of understanding of States and UTs on TOD as a viable solution to many of the challenges like haphazard urban growth and sprawl, mobility, rapidly rising private vehicles on roads, pollution, housing choices etc.. This new urban design and planning in the form of TOD, is being incentivesed by the Ministry under two more initiatives viz., Metro Policy and Green Urban Mobility Scheme which also will be discussed with States and UTS for taking them on board.

Under TOD, city densification will be promoted along mass transit corridors through vertical construction by substantially enhancing FARs (Floor Area Ratio) backed by promotion of Non-motorised Transport Infrastructure for walking and cycling to transport stations, development of street networks in the influence zone of transit corridors, multi-modal integration, effective first and last mile connectivity through feeder services to enable people access public transit in 5 to 10 minutes from home and work places.

Dense living along transit corridors besides resulting in enhanced living and travel experience, will also improve ridership of mass transit systems. If properly executed, TOD could emerge as a means of financing mass transit project, for which the demand is growing.

TOD promotes integration of land use planning with transportation and infrastructure development to avoid long distance travel in cities through compact development as against the present pattern of unplanned and haphazard urban growth.

Under the new Metro Policy, TOD has been mandatory while under Green Urban Mobility Scheme, TOD has been made an essential reform and is given priority for receiving central assistance.

The Ministrys initiative comes in the context of over 300 km of Metro lines being operational in seven cities, another 600 kms of metro line projects under construction in 12 cities and over 500 km projects under consideration. The Ministry has supported BRTS projects in 12 cities which are under different stages of progress and eight more cities are set to take up BRT projects. Mass Rail Transit System of 380 km length is being taken up in Delhi.

Transit Oriented Development will be financed by channelizing a part of increases in property values resulting from investments in transit corridors through Betterment Levies and Value Capture Financing tools. Increased private sector participation will result in economic development and employment generation.

TOD Policy also aims at inclusive development by ensuring mixed neighbourhood development in the form of a range of housing choices including affordable housing and ensuring spaces for street vendors.

States and UTs will be required to incorporate TOD in the Master Plans and Development Plans of cities besides identifying Influence Zones from transit corridors for tapping revenue streams.

TOD is being taken up Ahmedabad, Delhi(kakardooma), Naya Raipur, Nagpur and Navi Mumbai and the Ministry would like this to be expanded to other cities as well.

Powered by Capital Market - Live News

Strong growth has raised Indias incomes and reduced poverty, but challenges remain: OECD
Feb 28,2017

The Indian economy is expanding at a fast pace, boosting living standards and reducing poverty nationwide. Further reforms are now necessary to maintain strong growth and ensure that all Indians benefit from it, according to a new report from the OECD.

The latest OECD Economic Survey of India finds that the acceleration of structural reforms and the move toward a rule-based macroeconomic policy framework are sustaining the countrys longstanding rapid economic expansion.

The Survey, presented in New Delhi by OECD Secretary-General Angel Gurrn++a and Indias Secretary Economic Affairs Shaktikanta Das, hails Indias recent growth rates of more than 7% annually as the strongest among G20 countries. It identifies priority areas for future action, including continuing plans to maintain macroeconomic stability and further reduce poverty, additional comprehensive tax reforms and new efforts to boost productivity and reduce disparities between Indias various regions.

India provides a welcome counter-point to a global economy that has been under-performing for years, Angel Gurrn++a said. Reforms are historic and are bearing fruit, growth is strong and other macroeconomic indicators are improving. Maintaining the reform momentum will be critical to boosting investment and creating the quality jobs needed to ensure strong and inclusive growth for future generations, with all segments of society benefitting from it.

The implementation of the landmark GST reform will contribute to making India a more integrated market. By reducing tax cascading, it will boost competitiveness, investment and job creation. The GST reform - designed to be initially revenue-neutral - should be complemented by a reform of income and property taxes, the Survey said.

The Survey points out the need to make income and property taxes more growth-friendly and redistributive. A comprehensive tax reform could help raise revenue to finance much-needed social and physical infrastructure, promote corporate investment, enable more effective redistribution and strengthen the ability of states and municipalities to better respond to local needs, according to the Survey.

The OECD points out that achieving strong and balanced regional development will also be key to promoting inclusive growth. Inequality in income and in access to core public services between states and between rural and urban areas is currently large across India, while rural poverty is pervasive. Continuing efforts to improve universal access to core public services is essential.

Recent changes in Indias federalism model have given states more freedom and incentives to modernise regulations and tailor public policies to local circumstances. Ranking states on the ease of doing business is opening a new era of structural reforms at the state level and will help unleash Indias growth potential. Further benchmarking among states and strengthening the sharing of best practices, particularly on labour regulations and land laws, could add to the reform momentum.

Raising living standards in poorer states will require increasing productivity in the agricultural sector. With employment expected to gradually shift away from the agricultural sector, urbanisation will gather pace. Thus, better urban infrastructure will be needed to fully exploit cities potential for job creation, productivity gains and improving the quality of life.

Powered by Capital Market - Live News

ASSOCHAM concerned over lukewarm response to year-old proposal for keeping shops open all 7 days
Feb 28,2017

Expressing concern over a lukewarm response on allowing small and medium scale shop-keepers to remain open for all seven days, the ASSOCHAM has impressed upon the Centre to ask the states to realise benefits of model Shops and Establishments Bill and adopt the same , for promoting retail trade which is the largest sector employer in the country.

Only Rajasthan has so far initiated an exercise for bringing in legislative provisions in sync with the model Bill proposed by the Centre over a year ago, in the Finance Minister`s Budget speech of 2016-17. The state has begun work on bringing amendments in the Rajasthan Shops and Commercial Establishments Act, 1958 to permit the small traders to keep their shops and retail outlets open throughout the week.

n++As per the Outcome Budget of 2016-17, while the Labour and Employment Minister and other senior officers in the Union ministry have written to the states for adoption of the model bill, the states too need to realise importance of the measure which can immediately bring good results and add to employment and consumer demandn++, ASSOCHAM Secretary General Mr D S Rawat said.

He said, it was rightly stressed by the Centre that if the large shopping malls can remain open all seven days of the week, why not the small and medium shops?.

Needless to say the interests of the workers employed in the shops and small outlets should be protected and they should not be made to work in double shifts without additional benefits. Besides, safety and security of the staff working late hours, particularly for women should be ensured.

n++The states need to work closely with Centre and create an eco system for making our urban landscape more safe and vibrant. The security of citizens should remain the key area of priority. Thus, the blueprint must be made in a perfect coordination of all the civic agencies like those in-charge of street lights, city transport including metro rail and the citizens societiesn++ the chamber said.

But, surely the measure would boost the traditional bazaars helping them modernize in their systems of stocking and sale. Moreover, getting them into the formal sector, would be a great booster to the economy. Besides, the sector provides a low hanging fruit for employment creation.

n++Cities with large population and those attracting domestic and foreign tourists could benefit a lot if the markets become more productive the chamber added.

Powered by Capital Market - Live News

Doubling of SIDBI Fund of Funds Operations Focusing MSME and Startups
Feb 28,2017

In its 7th meeting on the February 11, 2017 VCIC examined requests from 11 fund managers and cleared for sanction requests from 9 Funds aggregating Rs. 300 crores. It is evident that there is a significant upsurge in the fund of funds operations if seen from the number of funds supported by SIDBI during the current FY. During FY 15 and 16 sanctions were made to 11 funds (Rs. 314 crores) and 16 funds (Rs. 607 crores) respectively while the number during the current FY has already crossed Rs. 1112 crores to 30 funds.

It may be recalled that the government had announced establishment of Rs. 10,000 crore fund of funds to support AIFs who invest in Startups. This money will be released spread over two finance commission cycles (14th and 15th viz. till 2025) based on progress under the Scheme. An amount of Rs. 500 crore has been released so far to SIDBI which is managing the programme. It may added that SIDBI is also operating various other fund of fund programmes invsting in MSMEs and Startups viz. India Aspiration Fund [IAF] launched formally by Honble Finance Minister in August 2015, ASPIRE Fund focused on agri and rural enterprises launched by Honble Minister for MSME last year and Rs. 200 crore on behalf of LIC. SIDBI as manager of these Funds has constituted with the consent of the Government, a Venture Capital Investment Committee [VCIC] which includes external experts viz. Mohandas Pai, Sanjeev Bikchandani, Saurabh Srivastava, H.K.Mittal, Prof. Vaidyanathan, Kiran Karnik.

Out of the those cleared earlier by VCIC, SIDBI has so far accorded formal sanction, for an aggregate contribution of Rs. 1619.25 crores after undertaking detailed appraisal and due diligence (including Rs. 1580 crore under IAF/FFS and Rs. 39.50 crores under ASPIRE). Operations under IAF and FFS are complimentary as both target startups and the exact coverage depends on the status of compliance to the guidelines under these funds at the time of signing of the contribution agreements. FFS initially focussed on motivating AIFs to float schemes which will invest in startups alone. With difficulties expressed by the industry in this regard, the government is re-examining the issue. With the modification proposed, coverage under FFS is expected to stand at around Rs. 600 crore in respect of 15 AIFs by March 31, 2016.

These programmes are serving the objectives with which these funds were formed. For example under IAF based on the drawals of Rs. 177 crores made, the investments by the supported funds are reported to be in 124 MSMEs/Startups for an aggregate support of Rs. 452 crores. Thanks to the rise in AIFs supported under the above programmes, there is significant investment happening in startups as well, with current year expected to close with around 150 startups receiving Rs. 588 crore. This is expected to grow fast in the next year as investments by AIFs supported pickup. The investment in startups by the 15 funds as aforesaid is likely to investment approximately Rs. 187 crores in startups by March end.

The story of IAF and FFS is in line with the industry trend. AIFs have a long investment / divestment cycle of 7-10 years with investments beginning a good 6-9 months (or longer) after an AIF gets its approval from SIDBI and scales gradually thereafter. It is expected that the investment in startups by the Funds supported under FFS may cross Rs. 1200 crores over next twelve months as they raise the balance contribution from other investors and pick up the pace of investing.

Powered by Capital Market - Live News

Three Forest Research Institutes Develop High-Yielding Varieties of Plant Species
Feb 28,2017

Three institutes of Indian Council of Forestry Research and Education (ICFRE), Dehradun, have developed 20 high-yielding varieties of plant species. The Variety Releasing Committee (VRC) of ICFRE, granted approval for the release of these varieties of plant species.

Forest Research Institute, Dehradun, has worked, for more than a decade, on ten improved varieties of Melia dubia and three clones of Eucalyptus tereticornis, the timber of which is in high demand in the industry. The released cultivars of Melia, popularly known as Dreake, or Malabar Neem, not only have a high productivity per unit area, with an average of 34.57 cubic metre per hectare per annum, but also have an excellent bole form, which is a desirable characteristic for plywood industry. Similarly, the average productivity of the released varieties of Eucalyptus has been recorded as 19.44 cubic meter per hectare per annum, against the present productivity level of 5-7 cubic meter per hectare per annum. These clones have also been found to be resistant to pink disease and wall gasp. Research at Institute of Forest Genetic and Tree Breeding, Coimbatore, has resulted in the development of five inter-specific hybrids of Casuarina equisetifolia X Casuarina junghuhniana for use as timber. Similarly, Tropical Forest Research Institute, Jabalpur, developed two varieties of medicinal plant Rauvolfia serpentina.

The developed varieties have to go through stringent long field trials and testing before release.

Indian Council of Forestry Research and Education (ICFRE), Dehradun established as an autonomous organisation under Ministry of Environment, Forest and Climate Change, carries out the holistic research on forestry species. The nine Institutes under ICFRE are actively engaged in improvement of plantation tree species to improve yield, quality and productivity to meet the demand for domestic consumption by industries.

In its earlier efforts, ICFRE released 27 high-yielding clones in 2010, 2011 and 2014 of Eucalyptus camaldulensis, Eucalyptus Hybrid, Casuarina equisetifolia, Casuarina junghuhniana and Dalbergia sissoo and are in commercial production now. Of these, 27 varieties have been released in the past. Institute of Forest Genetics and Tree Breeding, Coimbatore, developed 25 varieties and remaining two varieties of Dalbergia sissoo and Eucalyptus Hybrid were developed by Forest Research Institute, Dehradun.

Powered by Capital Market - Live News

For India, Strong Growth Persists Despite New Challenges
Feb 24,2017

Indias overall outlook remains positive, although growth will slow temporarily as a result of disruptions to consumption and business activity from the recent withdrawal of high-denomination banknotes from circulation.

But the nations expansion will pick up again as economic reforms kick in, said the IMF in its latest assessment. Growth is expected at 6.6 percent in this fiscal year and at 7.2 percent in the following year.

IMF mission chief for India Paul Cashin said, The Indian economy is growing strongly and remains a bright spot in the global landscape. The halving of global oil prices that began in late 2014 boosted economic activity in India, further improved the external current account and fiscal positions, and helped lower inflation. In addition, continued fiscal consolidation, by reducing government deficits and debt accumulation, and an anti-inflationary monetary policy stance have helped cement macroeconomic stability.

The government has made significant progress on important economic reforms, which will support strong and sustainable growth going forward. In particular, the upcoming implementation of the goods and services tax, which has been in the making for over a decade, will help raise Indias medium-term growth to above 8 percent, as it will enhance the efficiency of production and movement of goods and services across Indian states.

Challenges remain, however, and there is little scope for complacency. A key concern for us is the health of the banking system, which is still dealing with a large amount of bad loans, and also heightened corporate vulnerabilities in several key sectors of the economy.

And, over the past few months, the economy has been hit by cash shortages, and accordingly we reduced our growth forecasts to 6.6 percent for fiscal year 2016/17 and to 7.2 percent in 2017/18.

Paul further said,The initiative affected notes with a total value of about 15 trillion rupees, which amounted to 86 percent of all cash in circulation. Because payment transactions in India are primarily cash-based and electronic payments infrastructure is limited, the shortage of cash has disrupted economic activity, with smaller businesses and rural regions being particularly badly affected.

Fortunately, these effects are expected to gradually dissipate by March 2017 as cash shortages ease. It also appears that measures taken to alleviate payment disruptions, such as temporarily allowing use of old banknotes for purchases of fuel and agricultural inputs, have helped mitigate the negative impact. So we expect the slowdown to be limited and relatively short-lived and the financial system to come through unscathed. Of course, potential loan repayment risks should be monitored carefully, particularly given an already elevated level of non-performing loans.

The demonetization initiative presents an opportunity to increase the size of the formal economy and broaden financial intermediation in the longer term. It can also support a widening of the tax base, help reduce the fiscal deficit, enhance bank liquidity, and give a fillip to the governments efforts to promote greater financial inclusion.

Sound economic policymaking underpinned by strong institutions is critical for sustainable growth. A recent example of a positive change in India is the implementation of flexible inflation targeting and creation of the Monetary Policy Committee, which have strengthened the credibility of monetary policy and helped maintain price stability in an increasingly complex economy.

Powered by Capital Market - Live News

NDMA prepares States to deal with Heat Wave 2017
Feb 24,2017

The two-day national workshop on Preparation of Heat Wave Action Plan in Hyderabad ended on a high note today with all stakeholders resolving to work towards mitigating the adverse impact of the imminent heat wave this year. The workshop was organised by National Disaster Management Authority (NDMA) in collaboration with the Government of Telangana.

Addressing the workshop, Shri R.K. Jain, Member, NDMA said the focus of all our efforts should be on reducing the number of deaths. We should work towards translating available data and research into specific actions to reduce the impact of heat waves, he added.

At the technical session on Effective Governance Tools for Increased Resilience to Heat Wave, the need to bring about some fundamental changes in our built environment to augment heat wave preparedness was underlined.

The session on Monitoring, Review and Updation of Heat Action Plan was chaired by Shri Kamal Kishore, Member, NDMA. The session discussed the importance of coordination amongst all agencies and regular monitoring of the heat wave situation. It highlighted the significance of reviewing and updating Heat Action Plans to suit the changes in an environment.

Discussing the need for spreading awareness on heat wave, its ill effects, symptoms and simple mitigation measures, Shri Jain emphasised on the need to extensively use IEC (Information, Education and Communication) campaigns to reach out to the masses, especially to weaker sections of society as they form the most vulnerable segment of population. He reiterated that efforts towards heat wave preparedness would mean something only if our collaborative efforts are able to save lives.

Dr. D.N. Sharma, Member, NDMA, underlined the need to fine-tune Heat Action Plans right up to the village level so that traditional knowledge and indigenous practices are integrated in their plans to enhance the efficacy of their mitigation measures.

Heat waves often lead to dehydration, heat exhaustion, stress and even a fatal heat stroke. With advance planning and preparedness, heat wave induced deaths and illnesses can be brought down. In 2016, with NDMAs Guidelines for Preparation of Action Plan - Prevention and Management of Heat-Wave and the pro-active approach of some of the most vulnerable States, the number of deaths in the country came down significantly.

Powered by Capital Market - Live News

BEL Issue got over-subscribed by 367 % in Retail Category and 234% in Non-retail Category
Feb 23,2017

The Government of India proposed to disinvest 5% of paid-up equity capital-out of its shareholding of 74.41% in BEL through Offer for Sale (OFS) mechanism. BEL is a Navratna Company under the administrative control of Ministry of Defence and is engaged in manufacturing of the state of the art equipments in the field such as communication, radars, naval systems etc.

The floor price was fixed at Rs 1,498 per shares for the OFS Issue. Issue was opened at the BSE and NSE Stock Exchanges for two days i.e. on 22nd February, 2017 for Institutional Investors and 23rd February, 2017 for Retail Investors.

On 22nd February, 2017, the Issue opened for non-retail investors against the offer size of 89.34 lakh shares. The OFS got an enthusiastic participation from the non-retail investors, which included domestic institutional investors, foreign institutional investors and the Issue was over-subscribed 234% as per data given below (at cut-off price of Rs 1499):-

Client CategoryQuantityValue (in crore)Percentage to Qty. on Offer


Insurance*n++n++n++n++n++n++n++n++n++n++n++n++n++n++n++n++n++n++n++n++n++n++n++ 1,08,63,6131,628.10122%Banks18,22,275273.1020%Mutual Funds34,14,773513.4938%FII32,80,622492.4337%Others (Clients)15,18,905174.0717%Total2,09,00,1883,081.18234%



(In crore)

%Private147.8810.86PublicLIC1435111GIC11.23New India Insurance16.98Agriculture Insurance9.50

Today, i.e. 23rd February, 2017, the Issue was opened for retail investors for 20% of the overall offer size, i.e. 22.34 lakh shares with a discount of 5% on the cut-off price. There has been overwhelming response from the retail investors as well, with the Issue being subscribed 367% in the Retail category.

Likely Clearing Price of Retail Investor will be at more than Rs 1565. On this price retail investors shall be entitled to discount of 5% on the cut off price (Rs 1499 which is more than the Institutional Floor Price).

This is one of the highest instances of interest and participation shown by the investors including domestic institutional investors, foreign institutional investors and retail investors in any Issue. The Issue has been over-subscribed by 260%.

The likely receipt to the Government of India from BEL OFS is Rs. 1670 crore (approx.).

Powered by Capital Market - Live News

The Government simplifies maintenance of registers under various Labour Laws
Feb 23,2017

The Government has simplified the maintenance of Labour registers of about 5.85 crore establishments in agriculture and non- agriculture sectors. These registers are related to details of employees, their salaries, loans/recoveries, attendance etc. This exercise will drastically reduce the number of registers being maintained by these establishments from 56 to only 5 by doing away with overlapping/redundant fields. This will help these establishments to save cost and efforts and ensure better compliance of Labour Laws.

Under various Central Labour Acts, there is a requirement of maintenance of registers depending upon the threshold of the number of employees by the establishments in agriculture and non-agriculture sectors. As per the Sixth Economic Census of Central Statistical Office conducted during 2013-2014, India has about 5.85 Crore establishments in agricultural and non-agricultural sectors combined. Out of this, 4.54 Crore establishments are in non-agricultural sector. While reviewing the requirement of filing various returns / registers/forms provided under 9 Central Acts, there were several overlapping/ redundant fields that could be rationalized.

An intention notification was issued on 4th November, 2016 for reducing the number of registers/data fields and the same was widely circulated to concerned Ministries / Departments, State Govts., other stakeholders besides placing the same in public domain. In effect, all previous registers envisaged under various Acts / Rules have been omitted and replaced with only 5 common Registers. Such an exercise has reduced number of data fields in 5 registers to only 144 from the then existing 933 fields in 56 registers.

Ministry of Labour & Employment has also simultaneously undertaken to develop a software for these 5 common Registers. After development of the software, the same will be put on the Shram Suvidha Portal of the Ministry of Labour and Employment for free download with an aim to facilitate maintenance of those registers in a digitized form.

The Labour Laws under which these registers are maintained include:

(i) The Building and Other Construction Workers (Regulation of Employment and Conditions of Service) Act, 1996

(ii) The Contract Labour (Regulation and Abolition) Act, 1970

(iii) The Equal Remuneration Act, 1976

(iv) The Inter-State Migrant Workmen (Regulation of Employment and Conditions of Service) Act, 1979

(v) The Mines Act, 1952

(vi) The Minimum Wages Act, 1948

(vii) The Payment of Wages Act, 1936

(viii) The Sales Promotion Employees (Conditions of Service) Act, 1976

(ix) The Working Journalists and Other Newspaper Employees (Conditions of Service) Act, 1955

Powered by Capital Market - Live News

CBEC launches a Mobile Application for GST to inform the taxpayers of the latest updates on GST among others
Feb 23,2017

In step with the Governments Digital India initiative, the Central Board of Excise and Customs (CBEC) has launched a mobile application for Goods and Services Tax.

Taxpayers can readily access a host of GST information such as:

n++ Migration to GST-Approach and guidelines for migration

n++ Draft Law-Model GST Law, IGST Law and GST Compensation Law

n++ Draft Rules-Rules related to Registration, Returns, Payment, Refund and Invoice

n++ Frequently Asked Questions (FAQs) on GST

n++ Various resources on GST such a videos, articles etc.

n++ Related Website Links

n++ Helpdesk/Email Contact

The Mobile Application enables taxpayers to be well informed of the latest updates on GST. Taxpayers can also provide feedback and contact CBECs 24x7 helpdesk n++CBEC Mitran++ through a toll-free number or email, at the touch of a button.

The mobile application can be downloaded free of cost on Android platforms. The iOS version will be made available shortly.

With its elegant and easy-to-use interface, the GST Mobile Application is a yet another initiative by CBEC towards improving ease of doing business and providing outstanding taxpayer services.

Powered by Capital Market - Live News

6 km long Bet Dwarka Darshan Circuit in Gujarat to be developed at a cost of Rs.16.27 cr under HRIDAY
Feb 23,2017

Ministry of Urban Development today approved development of 6 km long Bet Dwarka Darshan Circuit in Gujarat at a cost of Rs.16.27 cr under the Central Scheme Heritage City Development and Augmentation Yojana (HRIDAY).

HRIDAY National Empowered Committee chaired by Shri Rajiv Gauba, Secretary (UD) has approved the circuit connecting the famous Dwarkadish Haveli and Hanuman Dandi, the only temple housing Hanumanji and his son Makardhwaj, in Dwarka district of Gujarat. There are two important water bodies along the circuit viz., Ranchod Talav and Shankhudhar Lake.

Darshan Circuit works to be taken up include development of streets and pedestrian pathways, laying of cycle tracks along beach side, plantation, provision of benches, resting spaces, changing rooms, drinking water and toilet facilities, craft and food bazar, signages, LED lighting, plazas for vending spaces etc.

Under HRIDAY launched on January 21, 2015, heritage related infrastructure development is being taken up in 12 identified cities including Dwarka-Bet Dwarka at a total cost of Rs.500 cr. so far, projects with an investment of Rs.420 cr have been approved for all 12 mission cities.

Powered by Capital Market - Live News

Moodys: Indian bank Q3FY17 earnings show effects of demonetization; NPL trends mixed
Feb 23,2017

Moodys Investors Service says that the earnings of Indian banks for Q3 FY2017 show that the governments decision to remove a high proportion of notes from circulation (demonetization) has led to a slowdown in economic activity that weighed on demand for credit among companies and retail borrowers during Q3 FY2017.

Overall, demonetization has significantly impacted credit demand and deposit growth, but the effect on asset quality has been mixed, while retail payment systems -- such as card transactions and mobile wallets -- have benefitted, says Srikanth Vadlamani, a Moodys Vice President and Senior Credit Officer.

Moodys conclusions were contained in its just-released report on its 15 rated banks in India, Banks -- India: Q3 Earnings Highlight Pressures from Demonetization; NPL trends mixed. The Indian government announced its demonetization program on 8 November 2016.

Looking ahead, while commentary from the banks points to a rise in activity in January, it is still below the levels seen in October, and we expect the quarter ending 31 March 2017 to show more adverse trends; but the impact on asset quality from demonetization should be manageable for the banking sector, adds Vadlamani.

For example, while the banks retail segment has seen some weakness, its biggest part -- home loans -- has shown a stable performance. More importantly, economic growth seems to be recovering from demonetization, although gradually, which should cushion the impact on the banks overall asset quality.

While deposit growth has been strong this quarter, driven by the demonetization inflows, it should moderate going forward as cash availability increases and restrictions on cash withdrawals expire, a moderation will occur in deposit growth over the next 12-18 months. Overall, banks deposit base should see a sustainable increase of 1-2% on account of demonetization.

Retail payment systems such as a cards and mobile wallets have seen a significant increase in transactions, and should continue to see healthy growth. At the same time, given the low base, cash will remain the dominant source of retail transactions for the foreseeable future.

Outside of the impact of demonetization, asset quality trends were mixed.

Both of Axis Bank (Baa3 positive, baa3) and ICICI Banks (ICICI, Baa3 positive, baa3) have seen significant additions to their NPLs from outside of their already announced watchlist accounts. While we have been expecting asset quality to deteriorate for both, we had expected the deterioration to come predominantly from their watchlist accounts. A continuation of the increasing non-watchlist NPL trend would put negative pressure on the banks credit profiles.

Asset quality for private sector banks will likely deteriorate. Increased non-performing loans (NPLs) from outside the watchlists of Axis Bank (Baa3 positive, baa3) and ICICI Banks (ICICI, Baa3 positive, baa3) are pressuring their credit profiles.

Meanwhile, asset quality trends for public sector banks have been more benign, and the pace of deterioration has slowed in the past two quarters from the levels seen in FY2016.

However, IDBI Bank Ltd (Baa3 stable, b1) has been a negative exception, with the bank seeing significant additions to its NPLs during Q3 FY2017.

Net interest margins will also come under pressure as banks gradually adopt the marginal cost of funds lending rate to price their loans So far, less than 20% of the banks variable-rate loans have been repriced to MCLR as opposed to their base rate. Because the MCLR is around 85 basis points (bps) lower than base rate, we expect the downward trend in net interest margins to persist.

Powered by Capital Market - Live News

Government to issue Sovereign Gold Bonds 2016 -17 - Series IV; Applications for the bond to be accepted from February 27, 2017 to March 03, 2017
Feb 23,2017

Government of India, in consultation with the Reserve Bank of India(RBI), has decided to issue Sovereign Gold Bonds 2016-17-Series IV. Applications for the bond will be accepted from February 27, 2017 to March 03, 2017. The Bonds will be issued on March 17, 2017. The Bonds will be sold through banks, Stock Holding Corporation of India Limited (SHCIL), designated post offices and recognised stock exchanges viz., National Stock Exchange of India Limited and Bombay Stock Exchange.

The features of the Bond are given below:

Sl. No.ItemDetails1Product nameSovereign Gold Bond 2016-17 - Series IV2IssuanceTo be issued by Reserve Bank India on behalf of the Government of India.3EligibilityThe Bonds will be restricted for sale to resident Indian entities including individuals, HUFs, Trusts, Universities and Charitable Institutions. 4DenominationThe Bonds will be denominated in multiples of gram(s) of gold with a basic unit of 1 gram.5TenorThe tenor of the Bond will be for a period of 8 years with exit option from 5th year to be exercised on the interest payment dates.6Minimum sizeMinimum permissible investment will be 1 grams of gold.7Maximum limitThe maximum amount subscribed by an entity will not be more than 500 grams per person per fiscal year (April-March). A self-declaration to this effect will be obtained.8Joint holderIn case of joint holding, the investment limit of 500 grams will be applied to the first applicant only.9Issue pricePrice of Bond will be fixed in Indian Rupees on the basis of simple average of closing price of gold of 999 purity published by the India Bullion and Jewellers Association Limited for the week (Monday to Friday) preceding the subscription period.The issue price of the Gold Bonds will be ` 50 per gram less than the nominal value.10Payment optionPayment for the Bonds will be through cash payment (upto a maximum of Rs. 20,000) or demand draft or cheque or electronic banking.11Issuance formThe Gold Bonds will be issued as Government of India Stocks under GS Act, 2006. The investors will be issued a Holding Certificate for the same. The Bonds are eligible for conversion into demat form.12Redemption priceThe redemption price will be in Indian Rupees based on previous weeks (Monday-Friday) simple average of closing price of gold of 999 purity published by IBJA.13Sales channelBonds will be sold through banks, Stock Holding Corporation of India Limited (SHCIL), designated post offices as may be notified and recognised stock exchanges viz., National Stock Exchange of India Limited and Bombay Stock Exchange, either directly or through agents. 14Interest rateThe investors will be compensated at a fixed rate of 2.50 per cent per annum payable semi-annually on the nominal value.15CollateralBonds can be used as collateral for loans. The loan-to-value (LTV) ratio is to be set equal to ordinary gold loan mandated by the Reserve Bank from time to time.16KYC DocumentationKnow-your-customer (KYC) norms will be the same as that for purchase of physical gold. KYC documents such as Voter ID, Aadhaar card/PAN or TAN /Passport will be required.17Tax treatmentThe interest on Gold Bonds shall be taxable as per the provision of Income Tax Act, 1961 (43 of 1961). The capital gains tax arising on redemption of SGB to an individual has been exempted. The indexation benefits will be provided to long term capital gains arising to any person on transfer of bond18TradabilityBonds will be tradable on stock exchanges within a fortnight of the issuance on a date as notified by the RBI. 19SLR eligibilityThe Bonds will be eligible for Statutory Liquidity Ratio purposes.20CommissionCommission for distribution of the bond shall be paid at the rate of 1% of the total subscription received  by  the  receiving offices and receiving offices shall share at least 50% of the commission so received with the agents or sub agents for the business procured through them.

Powered by Capital Market - Live News

Sikkim becomes 22nd State to join UDAY
Feb 23,2017

The Government of India and the State of Sikkim signed a Memorandum of Understanding (MOU) under the Scheme Ujwal DISCOM Assurance Yojana (UDAY), for operational improvement of the States Power Distribution Department. With the signing of MoU, the total number of States covered under UDAY has reached twenty-two. Sikkim would derive an Overall Net Benefit of approximately Rs. 481 crores through UDAY by way of cheaper funds, reduction in AT&C and transmission losses, interventions in energy efficiency, etc. during the period of turnaround.

The MoU paves way for improving operational efficiency of the Power Distribution department of the State. AT&C losses and transmission losses would be brought down through compulsory distribution transformer metering, consumer indexing & GIS mapping of losses, upgrade/change transformers, meters etc., smart metering of high-end consumers, feeder audit etc., besides eliminating the gap between cost of supply of power and realisation. The reduction in AT&C losses and transmission losses to 15% and 3.50% respectively is likely to bring additional revenue of around Rs.453 crores.

Demand Side interventions in UDAY such as usage of energy-efficient LED bulbs, agricultural pumps, fans & air-conditioners and efficient industrial equipment through PAT (Perform, Achieve, Trade) would help in reducing peak load, flatten load curve and thus help in reducing energy consumption in the State of Sikkim. The gain is expected to be around Rs.25 crores.

While efforts will be made by the Power Distribution Department of the State to improve their operational efficiency, and thereby reduce the cost of supply of power, the Central government would also provide incentives to the State Government for improving Power infrastructure in the State and for further lowering the cost of power. The Central schemes such as DDUGJY, IPDS, Power Sector Development Fund (PSDF) or such other schemes of Ministry of Power and Ministry of New & Renewable Energy are already providing funds for improving Power Infrastructure in the State and additional/priority funding would be considered under these schemes, if the State/DISCOMs meet the operational milestones outlined in the scheme. Further, with improved efficiency, the State Power department would be in a better position to borrow funds at cheaper rates for Power infrastructure development/improvement in the State.

The ultimate benefit of signing the MOU would go to the people of Sikkim. Reduced levels of transmission and AT&C losses would mean lesser cost per unit of electricity to consumers. Further, financially and operationally healthy State Power Distribution department would be in a position to supply more power. Higher demand for power would mean higher PLF of generating units and therefore, lesser cost per unit of electricity which would again mean lesser cost per unit of electricity to the consumers. The scheme would also allow speedy availability of cheaper power to households in the State that are still without electricity. Availability of 24*7 power to hitherto unconnected villages/households etc. would boost the economy, provide more employment opportunities for the people of the State and thereby, improve the standard of living of the people of the State.

Powered by Capital Market - Live News

Moodys: Asian high-yield bonds unaffected by dispute on make-whole premiums in North America
Feb 23,2017

Moodys Investors Service says that the dispute between investors and bond issuers in North America regarding payment of the make-whole premium upon a default by the issuer has not reached Asia and is unlikely to ever do so.

Unlike some recent high-yield bonds for North American companies, Asian high-yield bonds covered in Moodys Covenant Quality Assessments (CQAs) do not include the no premium on default language in their indentures, says Jake Avayou, a Moodys Vice President and Senior Covenant Officer.

This language prevents bondholders from seeking certain premiums if a company breaches its covenants and defaults, and first appeared in late October 2016 in an investment grade bond issued by NIKE, Inc. (A1 stable) and a high-yield bond issued by Rackspace Hosting, Inc. (B1 stable), a portfolio company of Apollo Global Management, adds Avayou.

The languages appearance followed a decision by a US district court that favored bondholders over Cash America International Inc. The court essentially ruled that, in the case of a bond issuers voluntary breach, acceleration of the debt is not the bondholders only remedy; bondholders are also allowed to seek payment of a make-whole premium. But the court also noted that indentures could include provisions that specify n++and thereby limit n++ the remedies available to the bondholders.

That prompted issuers, private-equity firms and their counsel to use their negotiating leverage to change the language in their indentures to favor them, rather than their bondholders. The no premium on default language was included by a handful of US companies in their high-yield bond indentures in late 2016.

In early January, potential investors in four high-yield bonds in North America successfully pushed back on including the no premium on default language in their bond indentures. Their success raised awareness of the risks of including the clause in high-yield bonds and spurred more investors in North America to resist its inclusion. But this awareness and pushback occurred before the clause made its way into any Asian deals, making it less likely -- as indicated -- that issuers in Asia will be able to negotiate for its inclusion going forward.

Another reason no Asian bond has included the no premium on default clause is that Asian investors have been less willing than their North American counterparts to sacrifice structural protections in their hunt for yield.

And Asian bond issuers typically chip away at existing covenants -- for example by upsizing permitted investment and debt carve-outs and lowering fixed-charge coverage ratio thresholds in their debt incurrence covenants -- rather than introduce new provisions that weaken investor protections.

Additionally, the majority of US high-yield bonds into which the clause was introduced are led by private-equity sponsors, but there are very few such deals in Asia.

Moodys further notes that the inclusion of a equivalent premium by corporate issuers in North America, instead of the no premium on default clause, is also unlikely to reach Asia.

The equivalent premium clause provides that in the event of a default due to a willful action by the company to avoid paying the redemption premium, the company must pay an equivalent premium upon acceleration of the notes.

Moodys says that while this clause is investor-friendly, it also creates uncertainty by leaving crucial terms such as willful action and intention of avoiding payment undefined, leaving investors vulnerable to unfavorable judicial interpretations.

However, no Asian high-yield bond has included an equivalent premium clause to date, and Moodys does not expect that this provision will be introduced into the Asian market.

Powered by Capital Market - Live News