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Economy News

Discussion in 'World Economy' started by Indian_Idol, Jun 2, 2010.

  1. lca-fan

    lca-fan Major SENIOR MEMBER

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    What about US economy which was more diverse and bigger in 2008 and yet felled down like nine pins?

    The last recession has not faded only it has been monetized by US, JAPAN & EU. Money was created out of thin air by printing dollars, yen, euros and all this dirty money has created monster bubbles across the world. Look at the return your money gives now (look at EPS, Interest rate, rents, business all are in negative territory Flipkart, Amazon, Jio all in negatives), look at the property prices across the world (people are going homeless due to high property prices, in India slums are being Created, in London people are living on Boats no home to live).

    Demonetization was the worst thing happened to Indian Economy. GST is a positive step although there are hiccups which should be cleared asap. GOI should have amended labor laws to create conditions for MII before shouting to world "come Make In India".

    Instead of demonetization (which was done due to FICN & Terror funding & not due Black Money concerns) GOI should have come up with Polymer notes & change of Size like Rs 1000 note becoming Rs 2000 note with different color scheme and polymer, Rs 500 becoming Rs 1000, Rs 100 to Rs 500, this would have avoided ATM cassette size problem. The money should have been changed no question asked but money to be deposited in Account in respective banks of account holder only. This would also have made easier to find out Bangladeshis and other illegal migrants who Should have been kicked out.

    A one time amnesty by paying regular income tax with nominal token fine and after that raising income tax exemption limits to Rs 600,000, Rs 600,000 to Rs 12,00,000 at lower rates of 8%, Rs 12,00000 to Rs 18,ooooo to 16%, Rs 18,00000 to Rs 24,ooooo to 24% and anything higher to 30%. This would have released huge amount of money in the hands of people to spend which would have driven economy like never before and together with GST would have transformed economy from informal to formal completely as there would have been no incentive to hide income.
     
  2. Zer0reZ

    Zer0reZ 2nd Lieutant FULL MEMBER

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    India currency manipulator? US is watching RBI’s forex buildup

    India’s currency management just got harder.

    The US Treasury said last week it will " closely monitor" the Reserve Bank of India’s policies after a "notable increase in the scale and persistence" of dollar purchases. While it refrained from adding India to its watch list for potential currency manipulators, it noted that foreign-exchange buying had risen to 1.8 percent of gross domestic product in the year through June, just below the Treasury’s 2 percent red line.

    The glare of this spotlight may hamper Governor Urjit Patel’s freedom to curb sharp gains in the rupee. Losing the ability to intervene could prove costly though: an overvalued currency has been cited as keeping exports expensive, hurting competitiveness at a time when global demand is recovering.

    “India obviously could change its intervention policy a bit to draw a bit less attention -- the RBI has been intervening, by all appearances, at around 64 rupees to the dollar and looked to be trying to set a de facto ceiling on the level of the rupee,” said Brad Setser, senior fellow at the US-based Council on Foreign Relations who worked at the Treasury from 2011 to 2015. “Its actions in the market haven’t been particularly subtle.”

    [​IMG]

    The RBI says it doesn’t target any level and only intervenes to smooth volatility. It didn’t reply to an email seeking comment on the Treasury report. Inclusion on the watch list carries the risk of sanctions.

    The rupee has strengthened 4.3 percent this year, heading for its first annual gain since 2010, and was trading at 65.1625 per dollar as of 10:33 a.m. in Mumbai on Wednesday. An index of the currency’s real-effective exchange rate was at 116.83 in September, near the record seen in April, indicating it is overvalued against a basket of 36 trading partners.

    ‘Edging Closer’
    India’s foreign-currency purchases have largely been driven by the need to bolster reserves since the 2013 taper tantrum, which pushed the rupee to a record low. Since then, holdings have swelled to over $400 billion as the RBI mopped up large inflows into the nation’s stocks and bonds.

    “With the potential for India to experience further portfolio and direct investment inflows, we believe there could still be space for the rupee to appreciate if the RBI steps back from its aggressive dollar-buying,” analysts at Nomura Holdings Inc. wrote in an Oct. 18 report. “India seems to be edging closer to being included on the monitoring list, unless it starts to manage the pace of its dollar buying intervention.”

    To avoid the Treasury’s ire, the RBI’s intervention -- including in the forwards market -- needs to be less than $4 billion a month, according to Khoon Goh, Singapore-based head of Asia research at Australia & New Zealand Banking Group. It has been breaching that level since May, he said.

    Risk of Sanctions
    The Treasury report comes at a time when President Donald Trump’s administration is pushing for warmer relations with India to counter China’s growing might in Asia. Secretary of State Rex Tillerson is visiting India this week, after outlining the administration’s vision for India in a key policy speech on Oct. 18.

    Placement on the Treasury’s watch list can trigger sanctions if the country satisfies three criteria: persistently intervening in currency markets, running a significant trade surplus with the US and running a large current account surplus overall. The five countries on the watch list -- China, Japan, South Korea, Germany and Switzerland -- fulfill some but not all of the conditions required to be named as a currency manipulator.

    India runs a $25 billion trade surplus with the US, its largest with any country in 2016. This is also America’s 10th-largest bilateral deficit, data compiled by Bloomberg show, though it’s far smaller than China’s $327 billion, Germany’s $66 billion and Japan’s $63 billion. Moreover, India has a ballooning current-account shortfall that contrasts with nations such as Thailand.

    “If the US is really going to go after some countries on currency, they should be looking at countries with large external surpluses like Thailand, Taiwan and Korea – not at India,” said CFR’s Setser.
     
  3. Butter Chicken

    Butter Chicken Captain FULL MEMBER

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    India may topple no. 2 Japan in crude steel production

    KOLKATA: World crude steel production increased 5.6% to 141.4 million tonnes in September from a year earlier.

    India, which is tipped to topple Japan and emerge as the second-largest global steel producer, produced 8.2 million tonnes of the alloy last month, up 1.9%. China, the world’s largest steel producer, accounted for more than half of the month’s global output, producing 71.8 million tonnes, an increase of 5.3%.
     
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  4. Pundrick

    Pundrick Lieutenant FULL MEMBER

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    US economy failed not bcoz it was formal but there was almost nil govt intervention. The so called sub-prime was result of banks giving loans at the minimum interest rate and hence they failed and some reported for bankruptcy. This was the reason USA economy went into recession, but Indian central bank and govt has always kept a reasonable control on the Capital or Debt market in our economy and this has actually help in keeping a resilient economy.

    And views about non-formal economy helped Indian during 2008 is just illogical with no base, it was the strong base of Indian economy i.e. non-interference from external factor & less export-oriented economy , actually played more significant role in getting out of that situation. But it is also true that we choosed the easiest and pro-people path to further assist the economy in maneuvering during this crisis, but we paid price in the 2010-12 period.
     
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  5. Gessler

    Gessler Lt. Colonel Technical Analyst

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    Another No.2 toppled:

    India overtakes the US to become the world’s second largest smartphone market

    Move over America, India is now the world’s second largest smartphone market.

    That’s according to a new report from Canalys which claims smartphone shipments in India crossed the 40 million mark for the first time in Q3 2017 courtesy of 23 percent annual growth. That means that India has overtaken the U.S. on sales with only China ahead of it. Given the huge gulf in populations — India’s stands at over 1.3 billion while the U.S. is around 320 million — the move had been expected for some time, but recent developments, including demonetization in late 2016, set progress back during recent quarters.

    This growth comes as a relief to the smartphone industry. Doubts about India’s market potential are clearly dispelled by this result,” Canalys analyst Ishan Dutt said in a statement.

    Despite the landmark, watchers have long said that India’s smartphone market is one that will require patience. China, for example, is far ahead with more than 110 million shipments per quarter but issues such as complicated supply chains, local retail laws, import taxes, lower GDP and poorer quality internet are likely to restrict India’s sales for some time. India may not be at China levels yet, but there are plenty of familiar names from the country that dominate the India market.

    Earlier this year, Chinese brands and Samsung squeezed India’s phone companies from the top seller list and they continue to lead the field today.

    According to Canalys’ numbers, Samsung remains top with 9.4 million shipments in Q2, up nearly 30 percent, but Xiaomi seems set to overtake it soon after growing by over 290 percent year-on-year to reach 9.2 million units.

    Chinese trio Vivo, Oppo and Lenovo rounded out the top five, while Apple is nowhere to be seen. The U.S. is said to have shipped a record 2.5 million devices in India in 2016, with progress made in urban areas. However the comparatively high price of the iPhone makes it difficult to gain wide mainstream adoption despite the introduction of lower-priced devices and discounts for older models.

    [​IMG]

    https://techcrunch.com/2017/10/27/i...ed&utm_campaign=Feed:+Techcrunch+(TechCrunch)
     
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  6. Angel Eyes

    Angel Eyes 2nd Lieutant FULL MEMBER

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    All of the money is going to CHINA indirectly.....
     
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  7. Butter Chicken

    Butter Chicken Captain FULL MEMBER

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    India’s exports to Bangladesh bounce back, record 13% growth in FY17

    KOLKATA, OCTOBER 22:
    After a subdued show for two consecutive years, India’s exports to Bangladesh reported a robust growth in 2016-17. The growth is attributed to a significant rise in export of equipment and high-value machinery for project implementation in Bangladesh.

    According to the Commerce Ministry, exports to Bangladesh touched $6.8 billion in the fiscal year ending March 2017, recording 13 per cent growth. Total bilateral trade had hit an all-time high of $7.5 billion, up 11 per cent.

    Bangladesh is the ninth largest importer of Indian goods. According to the Ministry, Indian exports increased by a modest 4.6 per cent ($6.4 billion) in 2014-15 and dropped by 6.4 per cent ($6.03 billion) in 2015-16.

    All statistics, however, show Bangladesh witnessed a marginal dip in exports in 2016-17, after a five-year long growth spell between 2011-12 and 2015-16. While Indian exports meet 11-12 per cent of Bangladesh’s total import needs, India shares less than two per cent of Bangladesh’s export basket, which primarily includes ready-made garments.
     
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  8. Som Thomas

    Som Thomas 2nd Lieutant FULL MEMBER

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    http://en.mehrnews.com/news/129058/Putin-s-Tehran-visit-to-mainly-focus-on-INSTC-talks
    Putin’s Tehran visit to mainly focus on INSTC talks
    Mon 30 October 2017 - 11:48
    [​IMG]
    TEHRAN, Oct. 30 (MNA) – The main objective on the Wed. visit of Russia’s Putin and Azerbaijan’s Aliyev to Tehran is to follow up talks on the International North–South Transport Corridor (INSTC), Deputy FM Rahimpour said Sunday.
    Speaking to reporters on Sunday, Deputy Foreign Minister for Asia-Pacific Affairs, Ebrahim Rahimpour, said Russian President Vladimir Putin and Azeri President Ilham Aliyev will convene on Wednesday in Tehran to hold the second round of trilateral summit with President Rouhani to discuss the North-South Transport Corridor project.

    The INSTC is a 7,200km long multi-mode network of ship, rail, and road route between India, Iran, Afghanistan, Armenia, Azerbaijan, Russia, Central Asia and Europe.

    The first trilateral summit between Iran, Russia and Azerbaijan was held in Baku in August 2016, with the main focus on the INSTC project.

    “The issue of transit has gained special importance during the term of President Rouhani, and I believe that Iran has ample opportunities for cooperation in the fields of tourism, transit, and trade,” Rahimpour said.

    The Iranian diplomat noted that President Putin will stay in Tehran for a one-day visit, adding “regional and international issues, as well as Iran nuclear deal will naturally be discussed during his visit. Russia is our ally and Azerbaijan has always backed the JCPOA.”

    Rahimpour maintained that Astana peace talks, the latest developments in Syria and the region as a whole will comprise other topics of discussion in the bilateral and trilateral meetings of the Russian and Azeri presidents, stressing however that the North–South Transport Corridor will take center stage during the Wednesday talks.
     
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  9. Pundrick

    Pundrick Lieutenant FULL MEMBER

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    This is one development India is desperately waiting for. Fate of Charbahar Port partially depends on this corridor and this will be one of the alternative development which will compete with OBOR in future. Security concerns will be handled more comprehensively as more players will join this corridor and in turn will help the Jaranj-Delaram road infrastructure.

    If this route is confirmed then we can improve our quest for improving our energy security and trade withe Russia,Europe and Central Asia. Plus this will give boost to the Afghanistan peace process.
     
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  10. Som Thomas

    Som Thomas 2nd Lieutant FULL MEMBER

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    FDI into India touches $114.4 billion in 2015-17: KMPG
    FDI inflow in 2015-17 is about 40% higher than the $81.8 billion recorded in the preceding three years from 2011-12 to 2013-14
    PTI
    [​IMG]
    In 2016-17, India received the highest-ever FDI flow worth $43.5 billion. Photo: AFP

    Dubai: Cumulative foreign direct investment (FDI) equity flows into India reached $114.4 billion during the last two financial years of 2015-16 and 2016-17, according to a latest report by global accounting firm KPMG.

    This is about 40% higher than the $81.8 billion recorded in the preceding three years, from 2011-12 to 2013-14. United Arab Emirates (UAE) investors announced $2.5 billion worth of investments in India in a single month—October 2017—including $1 billion investment by Abu Dhabi Investment Authority (ADIA), $1 billion by NRI-Emirati Investor’s Group and a further $462 million investment by Lulu Group in Andhra Pradesh.

    The report was prepared for the first India-UAE Partnership Summit (IUPS) held in Dubai last week. Cumulative FDI into India reached $498.9 billion in 17 years from April 2000 to June 2017, according to the department of industrial policy and promotion (DIPP), ministry of commerce.

    “In the financial year 2016-17, the country received the highest-ever FDI flow worth $43.5 billion,” KPMG said. “India also witnessed an increase in private equity/venture capital investments led by its growing start-up segment. Between January and September, 2017, India received $17.6 billion of private equity/venture capital spread across 402 deals,” it said.

    The report — released at the IUPS, organised by the Business Leaders Forum (BLF) and commissioned by KPMG headed by Vikas Papriwal, partner and head of markets, KPMG in the lower Gulf and Middle East South Asia — comes in the backdrop of the latest announcement of $1 billion by the newly- formed NRI-Emirati Investors’ Group in addition to a further $1 billion by ADIA.

    The Asian Development Bank (ADB) said the infrastructure sector in India requires $5.2 trillion worth of investments to sustain the economic growth and lend support to several government flagship programmes. “The infrastructure sector is one of the key drivers of the Indian economy. India’s infrastructure market, currently the third-largest in Asia, is anticipated to reach $6.6 trillion by 2025, constituting 12.5% of the Asia- Pacific region. As of 2016, the sector contributes nearly 8% to India’s GDP,” said the report.

    Roadways and highways are key to the development of the infrastructure sector as they offer the required base for intra and inter-state connectivity. The government has been trying to provide the necessary impetus to boost the sector. In the federal budget 2017–18, the government has allocated $9.8 billion for national highways (an increase of 11% from the previous year).

    The states are expected to provide an additional $1.2 billion for road development. In addition, the government has also announced the construction of 2,000km of coastal connectivity roads. The country is witnessing increased investments in the sector on the back of reforms and higher budgetary allocation by the government, greater funding support from international lending institutions and several MoUs being signed with several countries. In the federal budget 2017–18, the total capital and development expenditure of railways has been estimated at $20 billion, which includes $8.4 billion provided by the government.

    http://www.livemint.com/Money/8JdSz...ndia-touches-1144-billion-in-201517-KMPG.html
     
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  11. Som Thomas

    Som Thomas 2nd Lieutant FULL MEMBER

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    In a first, Apple set to scout Indian college for techies
    HYDERABAD: For the first time, Apple Inc has decided to come to an Indian engineering college with job offers. And after learning about the tech giant's presence at this year's campus recruitments, students at the International Institute of Information Technology (IIIT-H) here have found a good reason to be elated with optimism.

    "We are elated that Apple has decided to come for our campus placements this year. We are not sure of the kind of profiles that the company will be offering. However, it will provide an opportunity to the graduating students to showcase their skills before representatives of the firm," said T V Devi Prasad, head of placements at IIITH, adding that the placements for Apple are likely to be for its Hyderabad or Bengaluru facilities.

    Apart from Apple, the other big companies that have registered with IIITH are Microsoft, Google, and Philips to name a few.

    Close to 350 BTech, BE, MTech and MSc (research) students from the institute have so far registered for the placement drive that is set to begin in December.

    Officials said they observed a rise in the number of companies hiring for artificial intelligence (AI), data science, automation and deep learning this placement season. "The companies will be holding technical interviews in which students who are well acquainted with Python (a computing language) will be preferred. Majority of them are offering jobs for product development and research and development profiles," said Prasad.

    "The requirement for hardware engineers is high this year with many companies looking forward to hiring students with knowledge in application-specific integrated circuit and design verification. There is also high demand for students who have knowledge into 2D-3D graphic in mobile communication," said Prasad.

    Only one company, Indeed, has registered with the institution for an overseas offer so far.
    https://m.timesofindia.com/business...-college-for-techies/articleshow/61513413.cms
     
  12. Nilgiri

    Nilgiri Lieutenant GEO STRATEGIC ANALYST

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  13. Som Thomas

    Som Thomas 2nd Lieutant FULL MEMBER

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    Demand rise in U.S. helps Indian engineering exports
    Indian engineering exports are benefiting from an impressive turnaround in the demand in most of the developed economies , especially the U.S. which accounted for an annual growth of 91 per cent in shipments in September this fiscal, an analysis by EEPC India — the apex body for Indian engineering exporters — has shown.

    The U.S. continued to be the top-most destination for India’s engineering products in September 2017, registering a huge expansion both on monthly as well as in cumulative basis during April-September 2017-18 over the same period last fiscal, the EEPC India said in a statement on Monday.

    While the shipments of engineering exports to the U.S. went up by a whopping 91 per cent to $1.53 billion in September, 2017 from $551 million in the same month last fiscal, the April-September exports had gone up over by 47 per cent to $4.79 billion from $3.25 billion in the first half of the previous fiscal.

    “Since the demand pick up, particularly in iron and steel, all ferrous and non-ferrous metals, is evident in the global market, we expect the exports to remain buoyant , barring any major adverse event,” chairman of the EEPC India T.S. Bhasin said.

    All European nations falling under the top 25 engineering export destinations like Germany, Italy, Belgium, Netherland, France and Poland also recorded considerable growth. Engineering exports to Germany saw a jump of over 67 per cent to $288 million in September, 2017 over $172 million in the same month last fiscal. Likewise, the shipments to Italy rose by 30 per cent to $209 million from $161 million.
    http://www.thehindu.com/business/Ec...ndian-engineering-exports/article19992688.ece
     
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  14. Som Thomas

    Som Thomas 2nd Lieutant FULL MEMBER

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    BSE will be able to collect over $150 billion every year for the next 10 years: CEO Ashish Chauhan
    Chauhan said with the economy doing well, the market cap of BSE has crossed USD 2.2 trillion
    Himadri Buch@himadribuch

    [​IMG]
    BSE believes that the exchange will be able to collect more than USD 100-150 billion of funds every year for the next 10 years, said its Chief Executive Officer Ashish Chauhan.
    This belief stems from the performance of BSE in the last few years, he added.
    Experts estimate that India will require more than USD 2 trillion for improving infrastructure over the next seven to 10 years. This shows the scope of growth for the Indian economy which will trickle down to markets as well. Chauhan said that India is continuing to enhance its reputation as an attractive foreign direct investment (FDI) destination by improving the ease of doing business and liberalising regulations and sector caps for FDI.
    FDI inflows hit an all-time high of USD 60.1 billion in 2016-17. Chauhan said with the economy doing well, the market cap of BSE has crossed USD 2.2 trillion.
    Recently, S&P BSE Sensex breached the 33,000-mark — a much-awaited milestones — for the first time.
    The S&P BSE Sensex has grown by 25 percent since the start of the year, while equity market turnover grew by around 20 percent.
    Net FPIs/FIIs investment is approximately USD 17 billion in both equity and debt so far in FY18.
    Mutual funds are also contributing significantly to the growth of markets as they have been receiving robust inflows.
    Equity mutual funds have registered an inflow of over Rs 80,000 crore in April-September 2017, a three-fold growth from the year-ago period.
    This includes an investment of close to Rs 19,000 crore during the month of September alone.
    Chauhan also said that ETFs have revolutionised the investment industry in recent times. The low cost of the ETFs compared to the mutual funds and their passive form has attracted investors in huge droves. A similar surge is expected in the Indian market as well. The first ETF in India was launched in December 2001. Currently, there are 66 ETFs in Indian MF industry, of which 12 are in gold category and balance 54 in other categories. The total AUM managed under Indian ETF umbrella is close to Rs 60,314 crore as of September 2017. The total AUM of ETF has grown at an average of 39 percent on a Y-o-Y basis from the period 2012-Sept-2017.

    http://www.moneycontrol.com/news/bu...next-10-years-ceo-ashish-chauhan-2427609.html
     
  15. lca-fan

    lca-fan Major SENIOR MEMBER

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    Home » Money
    Last Published: Wed, Nov 15 2017. 01 08 AM IST
    RCom defaults on dollar debt in test for Insolvency and Bankruptcy Code

    Reliance Communications failed to pay a coupon on its 2020 dollar notes before the expiry of a grace period on Monday
    Denise Wee


    [​IMG]
    Reliance Communications’s default on dollar bonds is India’s most high-profile default on international debt since the Insolvency and Bankruptcy Code was passed in May 2016. Photo: Hemant Mishra/Mint
    Hong Kong: The first default on US dollar bonds by an Indian company in 15 months may become a closely watched test case for how international creditors will fare under the country’s new bankruptcy laws.

    Reliance Communications Ltd (RCom), the telecom operator controlled by billionaire Anil Ambani, failed to pay a coupon on its 2020 dollar notes before the expiry of a grace period on Monday, according to a person familiar with the matter. It’s India’s most high-profile default on international debt since the Insolvency and Bankruptcy Code was passed in May 2016. The company’s shares and bonds fell to record lows.

    The new bankruptcy rules are designed to speed up debt restructuring at a time when the banking system is plagued by the highest stressed-asset ratio in 17 years. An improved resolution process would not only encourage foreign money managers to increase holdings of Indian distressed debt, it could also help reduce borrowing costs for companies.

    “If the restructuring is done properly and fairly, this could set a good precedent and global creditors will take comfort that debt restructuring can have a satisfactory outcome in India,” said Dhiraj Bajaj, Singapore-based portfolio manager at Lombard Odier. “Historically, some debt restructurings have taken years and proved to be very costly for creditors from a time, capital and opportunity cost perspective.”

    While it’s unclear whether offshore creditors will utilize the new rules, Ernst & Young (EY) says bondholders can prompt firms to come up with a debt resolution plan or face liquidation if they fail to do so after 270 days. There hasn’t yet been a case where this process was initiated by offshore bondholders, according to EY.



    Under the old rules, “the only option available to bondholders was liquidation”, said Abizer Diwanji, partner and national leader, financial services, EY. “And that took forever.”

    The defaulted 2020 notes issued by RCom, once the country’s second-largest wireless operator, were trading at a record low of about 35.6 cents on the dollar as of 4.03pm in Hong Kong. The company’s shares slid 3.3% to an all-time low of Rs11.55.

    RCom had reiterated on Saturday that a standstill period for interest and principal repayments continues until December 2018. The company has proposed a debt resolution plan to lenders that includes lenders converting part of their debt to equity. A filing under the insolvency code would force the firm to come up with a debt resolution plan for all its creditors.

    Under the new rules, anyone who has debt due of more than Rs1 lakh can file for taking the company to a corporate insolvency process, according to EY’s Diwanji. The threat of bondholders taking action in courts could prompt a firm to begin talks with bond investors, according to Gunjan Shah, partner at law firm Shardul Amarchand Mangaldas and Co.

    While the problems at RCom highlight the dangers of investing in Indian companies with high debt, a successful restructuring process could ultimately make the country more attractive for investors. “Recent defaults in the Indian offshore dollar market are going to be interesting test cases for the evolving Indian regulatory system,” said Manjesh Verma, Hong Kong-based head of Asia credit specialists at Citigroup. Bloomberg



    Reliance Group companies have sued HT Media Ltd, Mint’s publisher, and nine others in the Bombay high court over a 2 October 2014 front-page story that they have disputed. HT Media is contesting the case.
    http://www.livemint.com/Money/D3Qk8...ions-defaults-in-closelywatched-India-te.html
     

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