The Government has proposed to arm the regulator Securities and
Exchange Board of India (SEBI) with direct powers to carry out search and
seizure operations and for attachment of assets . This has been done with an
aim to provide stronger powers to SEBI, for taking on perpetrators of Ponzi
schemes and other fraudulent activities.
The Central Bank has tightened the asset restructuring rules for
banks after the weakest economic growth in a decade pushed up bad loans. The
new rules include raising capital requirements and forcing banks to seek
personal guarantees from controlling shareholders of companies whose loan terms
have been eased.
The Central Bank said all loans recast after April 1, 2015, should
be classified as non-performing asset (NPA). Also, from June 1, 2013, the
provisioning requirement for fresh standard restructured advances would be
increased to 5.00% from 2.75% for the interim period.
The SEBI has extended the deadline to December 31, 2013 for
companies to meet new norms that prohibit trusts administering Employee Stock
Option Plans (ESOPs) from buying their own shares in the secondary market.
The Central Bank asked lenders to stop differentiating between
home branch and non-home branch and pricing of services thereof, saying such a
system should not continue with Core Banking Solution in place.
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