Current Affairs

1. NSE signs agreement with NASADQ for post-trade technology, strategic partnership

The National Stock Exchange (NSE), in a move to upgrade its existing clearing and settlement systems, has struck a partnership with US technology bourse NASADQ, whereby the latter will provide a customised real-time clearing, risk management and settlement technology to the local exchange.The new technology system would be completely in place over the next 24 to 36 months.

2. PSU Banks to Set up AMCs, AIFs for Loan Resolution

The government had accepted these proposals that were contained in a report submitted by a committee of bankers led by Punjab National Bank chairman Sunil Mehta. There is no plan for a bad bank.

State-run banks will take the lead in setting up an asset management company (AMC) for the resolution of loans above ₹500 crore as part of further efforts aimed at rescuing bad assets and restoring lenders to health so that they can focus on credit growth to push forward India's ongoing economic recovery.

The initiative will be run by the banks without government involvement, will be in harmony with all current laws and will function as an adjunct to the Insolvency and Bankruptcy Code (IBC) process.

The state-run lenders will also set up alternate investment funds (AIFs) to raise money and back the asset management company.

AIFs will be set up under Category 2 of the Securities and Exchange Board of India (Sebi) guidelines, which include private equity funds (PE) funds and funds for distressed assets.

The report recommends a fivepronged approach for loans up to Rs 50 crore, loans of Rs 50-500 crore and loans above Rs 500 crore. There are about 200 accounts that owe more than Rs 500 crore to banks for a total exposure is about Rs 3.1 lakh crore.

The committee has also suggested an asset trading platform for both performing and non-performing assets.

Under the SME Resolution Approach (SRA), loans up to Rs 50 crore would be dealt using a templated approach supported by a steering committee and the resolution will be completed in a time-bound manner within 90 days.

The Mehta committee has further proposed a Bank Led Resolution Approach (BLRA) for loans between Rs 50 and Rs 500 crore. Financial institutions will enter into an inter-creditor agreement to authorise the lead bank to implement a resolution plan in 180 days.

The lead bank would then prepare a resolution plan including the empanelment of turnaround specialists and other industry experts for operational revival of the asset. In case the lead bank is unable to complete the resolution process within 180 days, the asset will be resolved through the Insolvency and Bankruptcy Code (IBC).

3. KVIC launches e-marketing system

The Khadi and Village Industries Commission (KVIC) launched its, in-house developed,single-umbrella e-marketing system named Khadi Institution Management and Information System (KIMIS) in New Delhi. The system can be accessed from anywhere in the country for the sale and purchase of Khadi and Village Industries products.

This software will give real-time data of sales and will also give the updated status of stocks of khadi bhawans and godowns, allowing better planning and control of inventory of the KVIC.

4. Jharkhand to set up country's first Khadi mall

The first 'Khadi Mall' of the country will be opened in Jharkhand. The land in the Heavy Engineering Corporation (HEC) campus will be made available to the Khadi Board to develop the country's first Khadi mall.