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XLVII NO. 162, 36 PAGES, `8.00 (PATNA `8.00, RAIPUR `8.00) P U B L I S H E D F R O M : A H M E D A B A D , B E N G A L U R U , C H A N D I G A R H , C H E N N A I , H Y D E R A B A D , K O C H I , K O L K ATA , L U C K N O W, M U M B A I , N E W D E L H I , P U N E WWW.FINANCIALEXPRESS.COM READ TO LEAD SENSEX: 58,296.91 ▲ 166.96 NIFTY: 17,377.80 ▲ 54.20 NIKKEI 225: 29,659.89 ▲ 531.78 HANG SENG: 26,163.63 ▲ 261.64 `/$: 73.11 ▼ 0.09 `/€: 86.72 ▼ 0.05 BRENT: $72.58 ▼ $0.03 GOLD: `47,337 ▲ `339 FE BUREAU New Delhi, September 6 A SIMMERING TENSION between the executive and the judiciaryover whateachperceivesasanoverreach bytheotherintoitsturfescalatedon Monday, with the Supreme Court coming down heavily on the government for “not respecting” its views on theTribunals ReformsAct and being unresponsive to its concerns over long delays in the appointmentstothequasi-judicialbodies. At one point, Chief Justice NV Ramanasaidthedelaysinappointments to tribunals have left the court with only three options.“We can either stay the Tribunal Reforms Act or close down the tribunals...ourselves appoint the members or hand over the powers to high courts.And the third is that weinitiatecontemptproceedings.” Commenting on the latest version of the Bill to reform tribunals — the Tribunals Reforms Bill — a three-memberSC bench said itwas “a virtual replica of the provisions struckdown”bythecourttwiceear- THE SUPREME COURT on Monday rejected the appeal of 63 Moons Technologies, a debentureholderofdebt-ridden Dewan Housing Finance (DHFL), seeking a stay on the implementation of Piramal’s approved resolution plan forthe AROUND 82% of the individuals who were 'offered' work under the rural employment guarantee scheme (MGNREGS) turned up for it till September 3 in the current fiscal against around 84% in the last two years and 69% till June 1 this year, reports Surya Sarathi Ray in New Delhi. This indicates rural people are, of late, taking up more MGNREGS jobs, shedding their hesitancy to be exposed to the virus in the initial months of the current financial year. Against a total of 9.48 crore individuals who demanded work till September 3 of the current fiscal, 9.4 crore were offered work, but only 7.68 crore took up work. PAGE 2 Maruti raises car prices by up to 1.9% in third hike this year MARUTI SUZUKI India (MSI) on Monday said it has increased prices of its entire product range, except Celerio, by up to 1.9% with immediate effect, reports PTI. In a regulatory filing, the company said it has taken the decision to hike prices due to an increase in various input costs. The weighted average price rise in ex-showroom prices (New Delhi) across select models is 1.9%, it added. This is Maruti’s third price hike this year. The auto major has already raised prices in January and April this year, with an overall hike of around 3.5%. PAGE 6 RBI to mop up excess liquidity with additional operations OVL in talks to buy stakes in Russia oil, LNG projects Continued on Page 2 mortgage lender, reports fe Bureau in New Delhi. 63 Moons Technologies, which holds NCDs worth over `200 crore issued by DHFL, had challenged the NCLATorder that refused to stay the resolution plan. ■ Page 11 INDIA'STOPENERGYcompanies,includingONGC Videsh,isdiscussingbuyingastakeinRussia’smassiveVostok oil project aswell as a planned liquefied gasprojectArcticLNG-2,petroleumministerHardeep Singh Puri said,reports PTI. OVL,the overseas arm of state-owned ONGC,is evaluatingbuyingaminoritystakeintheVostokOil project, which contains combined estimated resourcesofover6billiontonnesoraround44 billion barrels,of premium crude.It,alongsidePetronetLNG,isnegotiatingtobuya 9.9% stake from Novatek. “A number of new potential investmentswerediscussedVostok Oil,ArticLNG-2(and)petrochemicals,” Puri,who was in Russia to attend the Eastern Economic Forum in Vladivostok, said in Moscow. ■ Report on Page 6 sion papers to seek stakeholders’viewson its prescriptions of the dos and don’ts for the CoC and an updated regulatory mechanismofliquidation process.The parliamentary standing committee on finance has also suggested a code of conduct for the CoC to “define and circumscribe theirdecisions”. Anoop Rawat, partner (Insolvency&Bankruptcy)at Shardul Amarchand Mangaldas&Co,said:“Giventhat CoC members have tremendous powers of decisionmaking,itwould be prudent to introduce a code of conduct which the CoC membersneedtofollowwhileparticipating in a meeting.” Key proposals A CODE OF conduct for the committee of creditors (CoC),proposedbytheinsolvency regulator in a discussion paper,will instil muchneeded discipline into the members who wield enormous power, make them more accountable and lend transparency to the resolution process under the Insolvency and Bankruptcy Code (IBC),analysts said. However, care must be taken to ensure that unscrupulouselementsand defaulting promoters don’t get to delay resolution by resorting to frivolous litigationsthatquestiontheCoC’s compliance,theyadded. The Insolvency and Bankruptcy Board of India (IBBI)hasfloatedtwodiscus- ■ CoC members to maintain integrity, must not misrepresent facts or benefit related parties ■ They have to make decisions without any bias, favour, fear, coercion, influence or conflict of interest ■ They must not acquire assets of debtor nor permit relatives to do so without disclosure ■ They must ensure timelines are adhered to and protect the debtor as a running business or its asset value Continued on Page 2 Covid-19: Hetero's Tocilizumab version gets EUA THE DRUG ControllerofIndia(DCGI)has granted emergency use authorisation (EUA)toHeterotolaunchabiosimilarversion of Tocilizumab, a Covid-19 drug for hospitalised adults, reports fe Bureau in Pune.TheHyderabad-basedcompanyon Monday said the drug would be available in the country by the end of September underthe brand nameTocira. Hetero’sTocilizumab 400mg/20ml is thebiosimilarversionofRoche’sActemra/ RoActemra drug.Tocilizumab is distributed by Cipla in India under licence from Roche. It has been used for treatment of criticalCovid-19patientstoreducefatalities.Thisdrugwasinshortsupplyduring the secondwave of the pandemic. ■ Report on Page 6 Mixed data FE BUREAU Business resumption slips, but still above pre-Covid levels After touching a record high the previous week, the Nomura India Business Resumption Index fell to 100.6 for the week ended September 5. However, it still remained above the pre-pandemic levels. August data were mixed, with GST revenues and services PMI showing improvement, but auto sales and manufacturing PMI remaining dull. Nomura India Business 110 Resumption Index (NIBRI) 100 84.9 90 99.3 92.4 80 102.8 70.1 100.6 60.4 70 60 50 Sep 5 Aug 15 Jul 4 Jul 25 Jun 13 May 2 May 23 Apr 11 Mar 21 Feb 7 Feb 28 Jan 17 Dec 6 Dec 27 Nov 15 Oct 4 Oct 25 Sep 13 ` Aug 23 40 ` Jul 12 When we invest in low volatility stocks over a long-term period, high average returns are earned by bearing lower implicit risk ■ Personal Finance, P9 THREE YEARS AFTER its much-acclaimed maiden entry into Israeli water that was symbolic of New Delhi’s growing closeness with Tel Aviv, an ONGC Videsh (OVL)-led Indian consortium has relinquished the offshore oil block due to “very poor” hydrocarbon prospectivity. The consortium of OVL, Indian Oil (IOC), Oil India (OIL) and Bharat PetroResources (BRPL) has relinquished offshore Block-32,two officialswith the partners said. When the Indian consortium in late 2017won theIsraelienergyministry’snodtobidfortheblock, itwashailedasNewDelhi’sgrowingclosenesswith Tel Aviv amid a widening chasm with Iran over its recalcitrance in awarding the Farzad-B gas field development rights to the OVL-led group. The nod forthe Offshore Block-32 bythe MinistryofNationalInfrastructure,EnergyandWater Resources came ahead of the then Israeli Prime Minister Benjamin Netanyahu’s visit to India in January 2018. Beforethatoilandgaswasnotpartofthebilateral engagements between the two sides. Continued on Page 2 lier.“We strike down one Act and a new one comes...has become a pattern,”JusticeDYChandrachudsaid. Aug 2 Low volatility stocks CJI says the court will either "close down tribunals or ourselves appoint the members or hand over the powers to high courts" ■ FE BUREAU New Delhi, September 6 Feb 16 Low volatility stocks ■ SC warns govt of initiating contempt proceedings against officials if vacancies are not filled by next Monday PRESS TRUST OF INDIA New Delhi, Sept 6 ‘New code for CoCs to bring in discipline’ THE RESERVE Bank of India (RBI) has announced additional operations to soak up excess liquidity from the banking system that has surged to the highest in at least 11 years, reports Bloomberg. RBI will drain `50,000 crore via a seven-day variable-rate reverse repo or VRRR on Tuesday, the central bank said in a statement. The central bank is already scheduled to conduct a 14-day reverse repo worth `3,50,000 crore on Thursday as part of its programme announced early August, taking liquidity withdrawal operations to as high as `4,00,000 crore by the end of September. PAGE 11 High volatility stocks emasculating tribunals by not filling vacancies, non-appointments have led to their collapse OVL & partners relinquish offshore oil block in Israel IBC Hesitancy to take up MGNREGS work falls as Covid fears subside Nifty100 Low Volatility30 ■ Says govt 63 Moons plea: SC refuses to stay Piramal DHFL buy QuickPicks Special Feature questions Centre over delayed appointments to various tribunals, says it is testing the SC’s patience Jun 21 THE CENTRE targets to create a database of 8 crore farmers in next four months after compiling details of as many as 5.5 crore farmers benefited under different central schemes, reports fe Bureau in New Delhi. The central and state governments must work together for agriculture to give a boost to the economy, Union agriculture minister Narendra Tomar said. ■ Apex court May 31 Govt aims to create database of 8 crore farmers in 4 months Top court sees ‘pattern’ in govt overturning judicial orders Apr 19 A CONSORTIUM of lenders is yet to receive any bids for the sale of debt-laden Videocon group’s energy business, even though a few firms had expressed interest earlier, reports fe Bureau in Mumbai. Following this, the CoC, led by SBI, has decided to extend the deadline for Videocon Oil Ventures’s resolution process till September 30, sources said. SC raps Centre over ‘tribunal reforms’, warns of contempt May 10 No bids for energy arm of Videocon, deadline extended ● POOR PROSPECTS Mar 8 PRIME MINISTER Narendra Modi will chair the annual summit of the five-nation grouping BRICS on Thursday in the virtual format and it is expected to focus extensively on the situation in Afghanistan, reports PTI. The meeting will be attended by Russian President Vladimir Putin, Chinese President Xi Jinping, South African President Cyril Ramaphosa and Brazil's Jair Bolsonaro, according to the ministry of external affairs. STERN WORDS Mar 29 IN THE NEWS PM Modi to chair BRICS Summit on Thursday Source: Nomura Global Economics New Delhi
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