The Reserve Bank of India has been trying to tighten regulatory norms on the sector since Infrastructure Leasing & Financial Services, the largest nonbank financial company, went bankrupt in 2018, and Dewan Housing Finance Corp and Altico Capital defaulte
The intense bidding war for beleaguered mortgage lender Dewan Housing Finance Corporation (DHFL) has been won by Piramal Group at the end of voting by the Committee of Creditors (CoC) on Friday, reported moneycontrol.
WHAT IS IL&FS CRISIS IL&FS Crisis Infrastructure Leasing & Financial Services (IL&FS) is a non-banking financial company (NBFC), or shadow bank . Established over 30 years ago, the conglomerate funds infrastructure projects across India. Some of the projects it has helped develop are 9-km Chenani-Nashri tunnel (India’s longest road tunnel), Delhi-Noida Toll Bridge, Ranchi-Patratu Dam Road, Baleshwar-Kharagpur Expressway, Tripura Power Project, and Gujarat International Finance Tech-City (GIFT). Among IL&FS shareholders are LIC, SBI, Japan s Orix Corporation, HDFC and CBI. The subsidiaries of IL&FS include transportation network subsidiary IL&FS Transportation Networks Ltd (ITNL), engineering and procurement company IL&FS Engineering and Construction Co Ltd and financier IL&FS Financial Services Ltd.
Banking on Projects
-TAMAL BANDYOPADHYAY
If the rise of Infrastructure Leasing & Financial Services (IL&FS) defied all logic and the creation of this ‘business model’ broke all sorts of laws and regulations, there was a lot of mystery shrouding its fall as well. On July 24, 2018, Ravi Parthasarathy, chairman and managing director of IL&FS, who had run the group with the authority and flamboyance of a promoter, stepped down like a professional manager, citing ill health.
A last ditch attempt was made to raise funds that could have alleviated the liquidity crisis. This was through a rights issue. It is an even bigger mystery how and why this rights issue was aborted. The rights issue was approved at the company’s AGM on 29 September 2018.… Hari Sankaran, the vice-chairman and managing director of IL&FS, unveiled a three-pronged strategy at its AGM.… And, yet, the rights issue was aborted.… Who pulled the plug on the issue? And why? Had it gone through, IL&FS could have c
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Almost everybody is waiting to see the end of 2020, the year when a virus brought our lives to a grinding halt. People lost lives, livelihoods and struggled to cope with unforeseen challenges. While the economy slowed down drastically, the Indian stock market seemed to cock a snook at the virulent virus. The Sensex soared from 41,253 on 31 December 2019 to 47,613 on 29 December 2020, giving a 15.4% return to those who made the right bets or simply sat still with their quality stocks.Â
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As people worked from home and discovered interest rates on bank term deposits sliding to a miserable 5.5%, they turned to the stock market in droves. Both depositories now report over 20 million depository participant (DP) accounts each the NSDL 20.7 million and CDSL 27.8 million. Even accounting for the fact that many investors have multiple DP accounts, over 1 million new accounts were added every month since the lock-down.Â