Govt may ease rules to help companies boost overseas borrowings

News Network
January 21, 2020

Jan 21: Indian policymakers may make it easier for companies to tap foreign funding, as a prolonged cash squeeze makes it tough for firms to borrow at home.

Investors are speculating about potential steps Finance Minister Nirmala Sitharaman could unveil when she presents the nation’s budget on Feb. 1. These measures may include freeing up firms to borrow at higher rates and offering tax breaks to global funds.

“The government will need to relax local rules to make it easier for Indian companies to raise debt overseas and tide over the funding crunch in the onshore market,” said Raj Kothari, London-based head of trading at Jay Capital Ltd. “At the same time, they need to ensure that the borrowers tapping offshore markets abide with stricter corporate governance so as to avoid further defaults.”

A prolonged crisis in India’s shadow bank sector and a pile of bad loans at traditional lenders is making it expensive for Indian companies, other than the best-rated firms, to access funding. The government has tried a series of measures to spur domestic credit, including providing so-called credit enhancement and allowing tiny firms to restructure debt.

Here are some steps Sitharaman may consider to spur foreign borrowing:

• She could raise the cap of 450 basis points above Libor, which limits overall foreign debt costs for Indian companies

• This could help lower-rated firms sell bonds abroad. Indian companies rated BBB currently borrow at more than 10%, about 3.8 percentage points more than their top-rated peers;

• Sitharaman could waive the withholding tax foreign investors need to pay on holdings of rupee-denominated debt sold by Indian companies abroad

• The waiver was offered between September 2018 to March 2019, but wasn’t extended as the highest global interest rates since the financial crisis deterred Indian borrowers. Since then, the three-month Libor has dropped by about 1 percentage point

• She could permit Indian property developers and housing finance lenders to sell overseas bonds for reasons beyond affordable housing projects

• New funding lines to the real estate sector, arguably ground zero of India’s economic slowdown, could help kickstart consumption and investment as the industry is the nation’s biggest job-creator.

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News Network
April 24,2020

Thiruvananthapuram, Apr 24: The month of Ramzan will be observed from Friday in Kerala.
The crescent moon was seen at Kappad beach in Kozhikode on Thursday.

Amid nationwide lockdown in the wake of COVID-19, there will be no group prayers at mosques. The devotees have been directed to offer prayers at homes.

Palayam Mosque Imam, VP Suhaib said, "Usually at mosques in Thiruvananthapuram, devotees used to come to break the fast... But this year, amid lockdown, we direct people to prepare food at home and break the fast with family. Also, there will not be group prayers at mosques. People should pray at home."
"Imams and scholars have strictly directed people to observe all Ramzan-related prayers at home. There is no other option... Human life is the most important thing. Only if life exists, belief and religion can exist," he added.

Prime Minister Narendra Modi had on March 24 announced a 21-day nationwide lockdown as a precautionary measure to contain the spread of COVID-19. Later, the lockdown was extended till May 3.

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Agencies
July 7,2020

Washington, Jul 7: The US military "will continue to stand strong” in relationship to a conflict between India and China or anywhere else, a top White House official said on Monday, after the navy deployed two aircraft carriers to the South China Sea to boost its presence in the region.

"The message is clear. We're not going to stand by and let China or anyone else take the reins in terms of being the most powerful, dominant force, whether it's in that region or over here,” White House Chief of Staff Mark Meadows told Fox News.

“And the message is clear. Our military might stands strong and will continue to stand strong, whether it's in relationship to a conflict between India and China or anywhere else,” Meadows said in response to a question.

He was told that India banned Chinese apps because Indian soldiers were killed by Chinese troops last month and asked what's mission of the two aircraft carriers - the Ronald Reagan and the Nimitz - and what's America's mission.

The troops of India and China are locked in an eight-week standoff in several areas in eastern Ladakh including Pangong Tso, Galwan Valley and Gogra Hot Spring. The situation deteriorated last month following the Galwan Valley clashes that left 20 Indian Army personnel dead as the two sides significantly bolstered their deployments in most areas along the LAC.

The Chinese military on Monday began withdrawing troops from the Galwan Valley and Gogra Hot Spring after National Security Advisor Ajit Doval and Chinese Foreign Minister Wang Yi held lengthy talks on Sunday. Doval and Wang are also the special representatives on the India-China boundary talks.

The United States has sent two of its aircraft carriers to the South China Sea. “Our mission is to make sure that the world knows that we still have the preeminent fighting force on the face of the globe,” Meadows said.

President Donald Trump has invested more in the US military, more in not only the hardware, but the men and women who serve so sacrificially each and every day, he said. “He (Trump) continues to do so,” he added.

China is engaged in hotly contested territorial disputes in both the South China Sea and the East China Sea. Beijing has built up and militarised many of the islands and reefs it controls in the region. Both areas are stated to be rich in minerals, oil and other natural resources and are vital to global trade.

China claims almost all of the South China Sea. Vietnam, the Philippines, Malaysia, Brunei and Taiwan have counter claims over the area.

Appearing on the same Fox News on Monday talk show with host Brian Kilmeade, influential Republican Senator Tom Cotton said that the US aircraft carriers are headed to the South China Sea to thwart off any Chinese misadventure against Taiwan or other countries in the region.

"That's one of the reasons why we have those aircraft carrier groups in the South China Sea. I mean, look what China did in the southwest. It's essentially invaded India over the last few weeks and killed Indian soldiers,” Cotton said.

"No country on China's periphery, right now, is safe from Chinese aggression. All those countries want a close relationship with the United States. We ought to have one,” Cotton said.

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News Network
July 16,2020

Noida, Jul 16: A key aide of 1993 Mumbai blasts case convict Abu Salem who worked in his illegal property business in NCT of Delhi has been arrested by the Special Task Force (STF) of the Uttar Pradesh police, officials said on Thursday.

Gajendra Singh, who was also close to gangster Khan Mubarak, was nabbed in Mumbai late Wednesday night by the Noida unit of the STF, they said.

"Gajendra Singh had taken Rs 1.80 crore from a Delhi-based businessman in 2014 in a property-related case. When he was pressured to return the money, Singh had Khan Mubarak's shooters open fire at the businessman in sector 18 of Noida," Additional Superintendent of Police, STF, Raj Kumar Mishra said.

The businessman was in his car when the attack took place, and he narrowly escaped, the officials said.

Mishra said Singh had paid the shooters Rs 10 lakh, and the agency has cracked the money trail of the transaction.

"Gajendra Singh also invested Abu Salem and Khan Mubarak's money into properties in Delhi-NCR," the officer added.

Singh was wanted in a couple of cases registered at a police station in Noida where he has been lodged now for further proceedings, the STF said. 

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