IBBI notifies rules for bankruptcy probe

The Insolvency and Bankruptcy Board of India (IBBI) has notified regulations for inspection and investigation of service providers registered with it.

Under the Insolvency and Bankruptcy Code (IBC) implemented by IBBI, service providers are insolvency professional agencies, entities, professionals and information utilities.

New regulations The investigation authority has to serve a notice intimating the entity concerned about the probe at least 10 days in advance.

However, this requirement can be done away with on grounds such as apprehensions that the records of the particular service provider might have been destroyed before the probe starts.

About Insolvency and Bankruptcy Board of India (IBBI) IBBI is the regulator for overseeing insolvency proceedings of service providers like Insolvency Professional Agencies (IPA), Insolvency Professionals (IP) and Information Utilities (IU) in India.

It was given statutory powers through the Insolvency and Bankruptcy Code. It functions under Ministry of Commerce.

The Code provides for a market-determined and time-bound resolution of insolvency proceedings.

It became operational in December 2016. It covers Individuals, Companies, Limited Liability Partnerships and Partnership firms.

It attempts to simplify the process of insolvency and bankruptcy proceedings and speed up the resolution process for stressed assets in the country.

Union Government clears three export infrastructure plans under TIES

The Union Government for the first time has given approval three infrastructure proposals to address the infrastructure problem under the Trade Infrastructure for Export Scheme (TIES).

Decision in this regard was taken at the Inter-Ministerial Empowered Committee (EC) meeting on TIES, chaired by Commerce Secretary.

These three proposals include Integrated Cargo Terminal (ICT) at the Imphal International Airport, Modernisation of infrastructure facility for marine exports in Karnataka and construction of a new ‘Standard Design Factory’ building at Cochin Special Economic Zone (SEZ).

Background According to Department Related Parliamentary Standing Committee on Commerce March 2016 report, deficient infrastructure severely hurting the competitiveness of India’s exports.

Moreover, the manner in which infrastructure is being operated in the country is also obstacles to ensure competitiveness in manufacturing of goods and exports.

It is estimated that the logistic cost in India is about 14% of the GDP whereas in advanced economies like United States and European Union, it is 8% and 10% of the GDP respectively.

Besides, certain sectors dependent on logistics lose as much as 2% on sales return due to sub-optimal logistic capability.

An ASSOCHAM study also shows that due to deficient infrastructure, India runs against a disadvantage of about 11% of its trade.

It noted that India can save up to $50 billion if logistics costs are brought down from 14% to 9% of country’s GDP which will also make domestic goods more competitive in global markets.

About Trade Infrastructure for Export Scheme (TIES) The scheme replaces Assistance to States for creating Infrastructure for the Development and growth of Exports (ASIDE), a centrally sponsored scheme to address the needs of the exporters.

Its objective is to enhance export competitiveness by bridging the gap in export infrastructure, create focused export infrastructure and first-mile and last-mile connectivity.

It is being implemented from FY18 till FY20 with budgetary allocation of Rs. 600 crore.

The beneficiaries of the scheme will be all central and state agencies including Commodities Boards, Export Promotion Councils, SEZ authorities and Apex Trade Bodies recognised under EXIM policy of Central Government are eligible for financial support.

Under the scheme, the cost of projects will be equally shared by the Centre and the states in form of grant-in-aid.

In normal cases centre will borne 50% of the total equity in the project. For projects located in north-eastern and the Himalayan region states, Centre may bear 80% of the cost.

It will provide assistance for setting up and up-gradation of infrastructure projects with export linkages like Land customs stations, quality testing and certification labs, Border Haats, cold chains, trade promotion centres, dry ports, export warehousing and packaging, SEZs and ports/airports cargo terminuses.

Reliance Industries market capitalisation hits Rs 5 lakh crore mark

Mukesh Ambani-led Reliance Industries Limited (RIL) for the first time in its trading history has crossed Rs 5 lakh crore in market capitalisation.

The market cap of RIL stood at Rs 5,04,458.09 on BSE (Bombay Stock Exchange. RIL is second firm to cross Rs 5 lakh crore in market capitalisation.

It is also RIL’s highest market cap in its lifetime and also currently it is the most valued company on the bourses.

Tata Consultancy Service (TCS) was first company to hit Rs 5 lakh crore in market capitalisation milestone in July 2014.

Later in November 2014, its market capitalisation had surged to 5.43 lakh crore. Now, it is the second most valuable company in terms of market-capitalisation.

About Reliance Industries Limited (RIL) RIL is an Indian conglomerate engaged in energy, petrochemicals, textiles, natural resources, retail, and telecommunications.

It is the third most profitable company in India. It is the second largest company in India in terms of revenue after the government-controlled Indian Oil Corporation (IOC).

It was ranked 215th on the Fortune Global 500 list of the world’s biggest corporations as of 2016. It was also ranked 8th among the Top 250 Global Energy Companies by Platts as of 2016.