Friday, 30 June 2023
Virginia admissions case could be legal follow-up to affirmative action ruling
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HDFC Bank-HDFC Merger Today Biggest Transaction In History Of India Inc
Housing finance major HDFC will merge with its subsidiary HDFC Bank on Saturday as their respective boards have cleared the proposal on Friday.
Following the reverse merger, the 44-year-old institution HDFC Ltd would cease to exist from July 1 onwards. HDFC Ltd, the country's first home finance company, will lose its identity on Saturday.
"Saturday, July 1, 2023, to be the 'Effective Date' of the composite scheme of amalgamation, on which date the certified order of the NCLT sanctioning the Scheme will be filed by HDFC Investments, HDFC Holdings, HDFC Limited and HDFC Bank with the RoC," HDFC Bank said in a regulatory filing.
The board of directors of HDFC Bank in consultation with the board of directors of HDFC Limited has fixed July 13, 2023, for determining the shareholders of HDFC Ltd who would be issued and allotted the shares of HDFC Bank, it added.
Besides, July 13 has been fixed for the continuation of warrants of HDFC Limited in the name of HDFC Bank.
The board has fixed July 12, 2023, for the transfer of non-convertible debentures while July 7 for the transfer of commercial papers of HDFC Ltd in the name of HDFC Bank.
Termed as the biggest transaction in the history of India Inc, HDFC Bank on April 4, 2022, agreed to take over its parent, which is the largest pure-play mortgage lender, in a $40-billion all-stock deal, creating a financial services titan with a combined asset of over Rs 18 lakh crore.
The total business of the merged entity stood at Rs 41 lakh crore at the end of March 2023. With the merger, the net worth of the entity would be over Rs 4.14 lakh crore.
The combined profit of both entities was to the tune of about Rs 60,000 crore at the end of March 2023.
The combined shares of the HDFC twins will have the highest weighting on the indices at close to 14 per cent, much higher than the present index heavyweight Reliance Industries with a 10.4 per cent weightage.
The merger of HDFC Bank and HDFC creates a lender that ranks fourth in equity market capitalisation, behind JP Morgan Chase & Co, Industrial and Commercial Bank of China Ltd (ICBC) and Bank of America Corp, according to data compiled by Bloomberg. It's valued at about $172 billion.
With the deal getting effective, HDFC Bank will be 100 per cent owned by public shareholders, and existing shareholders of HDFC will own 41 per cent of the bank. Every HDFC shareholder will get 42 shares of HDFC Bank for every 25 shares they hold.
The merged entity brings together significant complementarities that exist between both entities and is poised to create meaningful value for various stakeholders, including respective customers, employees and shareholders of both entities from increased scale, comprehensive product offering, balance sheet resiliency and ability to drive synergies across revenue opportunities, operating efficiencies and underwriting efficiencies, a statement said.
Speaking on the completion of the merger, HDFC Bank CEO and Managing Director Sashi Jagdishan said the combined strength will enable to create a holistic ecosystem of financial services.
"We're truly happy to welcome the talented team of HDFC Ltd into the HDFC Bank family. I believe our journey will be defined by agility, adaptability, and a relentless pursuit of excellence. As we navigate the path ahead, we will embrace challenges as opportunities, learn from our experiences, and strive to be the benchmark of success and integrity in the financial services industry," he said.
It also marks the transformation of HDFC Bank into a financial services conglomerate that offers a full suite of financial services, from banking to insurance, and mutual funds through its subsidiaries, the bank said.
So far, the bank was a distributor for these products.
The merger of India's largest housing finance company HDFC Ltd with the largest private sector bank in India combines the strengths of a trusted home loan brand with an institution that enjoys a lower cost of funds.
The larger net worth would allow a greater flow of credit into the economy, it said, adding it will also enable the underwriting of larger ticket loans, including infrastructure loans and contribute further to nation-building and employment generation.
All employees of HDFC Ltd as of the effective date become HDFC Bank employees.
Over the past months, the bank has been preparing for smooth integration not only of systems and processes but also of all aspects that will make HDFC Bank a welcoming place of work for the employees from HDFC Ltd.
Post-merger, the key HDFC Bank subsidiaries include HDFC Securities Ltd, HDB Financial Services Ltd, HDFC Asset Management Co Ltd, HDFC ERGO General Insurance Co Ltd, HDFC Capital Advisors Ltd and HDFC Life Insurance Co Ltd.
(Except for the headline, this story has not been edited by NDTV staff and is published from a syndicated feed.)
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Prosecutors in Rep. George Santos' case say they gave his defense 80000 pages of material
Thursday, 29 June 2023
Pence makes a surprise trip to Ukraine and meets with Ukrainian President Volodymyr Zelenskyy
Wednesday, 28 June 2023
Rapper Kodak Black faces arrest after warrant says he missed a drug test
Tuesday, 27 June 2023
Florida ramps up mosquito control efforts due to 4 cases of locally contracted malaria
Florida ramps up mosquito control efforts due to 4 cases of locally contracted malaria
Canadian wildfires are causing unhealthy air quality again in Chicago and other parts of the US
Monday, 26 June 2023
White Florida woman charged with manslaughter in shooting of Black neighbor
8-year-old girl dies in Border Patrol custody in Harlingen Texas as agency seeks to
Sunday, 25 June 2023
Australias High Court dismisses Russias application for an injunction that would have prevented embassy's eviction
Flights at Reagan National Dulles airports resume after being halted by air traffic control woes
Civil rights icon James Meredith 90 falls at Mississippi event but has no visible injuries
Ruoning Yin 20 wins the Women's PGA Championship becoming the second Chinese player to win a major
A woman fatally shot an Uber driver who thought she was being kidnapped
Water being tested where freight train carrying hazardous material plunged into Yellowstone River
Saturday, 24 June 2023
Today in History: June 25 Anne Franks diary published
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AP PHOTOS: Napa Valley wine grapes thrive after record rainfall but cool weather may delay harvest
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Trump says US government has 'vital role' opposing abortion won't say if he backs national ban
Human remains found in California mountain area where actor Julian Sands disappeared 5 months ago
Ford Explorer recall prompts Transportation Department investigation
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Kremlin spokesman says Wagner owner Yevgeny Prigozhin will move to Belarus as part of deal to defuse rebellion tensions
Friday, 23 June 2023
Congressman wants to block US agency from slowing boats to protect endangered whales
New York doctors get legal protection to prescribe abortion pills across state lines
Thursday, 22 June 2023
Biden says calling Chinese leader a dictator did not undermine progress in the relationship expects to meet with Xi
Did initial delays in communication hamper tourist sub search?
Wednesday, 21 June 2023
Sorority says rules allow transgender woman at Wyoming chapter
Homicide detective weeps in trial of deputy who failed to confront Parkland high school shooter
Foundations buoy a new movement of renters activism
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Tuesday, 20 June 2023
Police say Harmony Montgomery's father hid and moved her body for months after murder
Georgia officials won't take over elections in state's largest Democrat-heavy county
Monday, 19 June 2023
Lawyer facing 30 to life for murdering his girlfriend dies in custody
Young climate activists take Montana to court for its role in global warming
Offshore wind foes in New Jersey gathering force legally and politically
Montana officials downplay first-of-its-kind climate trial
Roughly 100 letters with suspicious white powder sent to Kansas lawmakers officials
Vistara IndiGo To Operate Flights On New International Routes From August
The Directorate General of Civil Aviation (DGCA) has given its permission to full-service carrier Vistara and no-frills IndiGo to operate new international flights from August, a senior official said on Monday.
Vistara had proposed to launch its flight services to Bali in Indonesia from New Delhi, while IndiGo had sought the regulator's nod to introduce air connectivity to Georgia's capital Tbilisi from New Delhi, the official said.
"IndiGo operations (on) Delhi-Tbilisi (route) with effect from August 7 and Vistara operations (on) Delhi-Bali (route) with effect from August 1, have been approved," he said.
Vistara is in the process of merging with Air India, which is now owned by Tata Group.
In February this year, IndiGo announced its plans to roll out its air services to Kenya and Indonesia.
(Except for the headline, this story has not been edited by NDTV staff and is published from a syndicated feed.)
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Sunday, 18 June 2023
Americans mark Juneteenth with parties events quiet reflection on end of slavery after Civil War
Netflix hypes The Last Airbender One Piece at starry fan event
Family suing San Diego cemetery after remains of Juneteenth trailblazer missing from burial plot
Netflix hypes The Last Airbender One Piece at starry fan event
1 trooper killed 1 critically wounded in central Pennsylvania
Saturday, 17 June 2023
Collection of DNA samples to aid police postponed over ACLU objections
Arkansas city honors enslaved man who fled to Canada and was later extradited
Michigan man charged with threatening synagogue massacre
Friday, 16 June 2023
Blinken stresses need for better US-Chinese communications as he heads to Beijing
Thursday, 15 June 2023
A Missouri doctor's death is steeped in mystery and speculation. Authorities aren't talking
Robert Caro's last book on LBJ likely won't be delayed by editor Robert Gottlieb's death
Bayer reaches $6.9 million settlement with New York over advertising for weedkiller Roundup
Markets Regulator Asks Listed Firms To Confirm Or Deny Rumours From Oct 1
To streamline the disclosure requirements, Sebi has notified rules asking the top 100 listed companies by market capitalisation to confirm, deny or clarify any market rumour reported in the mainstream media from October 1.
Further, for the top 250 listed entities, the rule will kick in from April 1, 2024, the Securities and Exchange Board of India (Sebi) said in a notification.
These companies will have to "confirm, deny or clarify any reported event or information in the mainstream media which is not general in nature and which indicates that rumours of an impending specific material event" are circulating amongst the investing public, within 24 hours from the reporting of the information.
To strengthen the corporate governance at listed entities, Sebi came out with a framework to address the issue of certain shareholders enjoying special rights perpetually.
Any special right granted to the shareholders of a listed entity will be subject to the approval of the shareholders in a general meeting by way of a special resolution once every five years starting from the date of grant of such special right.
This comes amid public institutional shareholders increasingly voicing their concerns against special rights being conferred upon the promoters, founders, and certain body corporates of those companies.
Sebi noted that shareholders' agreements are drafted in such a way that those special rights (nomination rights) would continue to be available even after significant dilution of their holding in those entities. This permits the shareholders to enjoy such special rights perpetually, which is against the principle of rights being proportional to one's holding in a company.
Also, the regulator said that all directors appointed to the board of a listed entity need to go through a periodic shareholders' approval process, thereby providing legitimacy to the director to continue to serve on the board.
This would substantially address the concerns around the grant of board permanency by listed entities to certain selected persons -- mostly promoter-directors or related persons -- by invoking the rights conferred on it by the AoA of a company or by such persons being appointed as directors deliberately making them not liable to 'retirement by rotation' and without a defined tenure.
"With effect from April 1, 2024, the continuation of a director serving on the board of directors of a listed entity shall be subject to the approval by the shareholders in a general meeting at least in once every five years from the date of their appointment or reappointment, as the case may be," Sebi said.
As on March 2024, if any director is serving on the board of a listed entity without his/her appointment being subject to shareholders' approval during the last five years, the listed entity will have to take shareholders' approval in the first general meeting to be held after March 31, 2024, for his or her continuation on the board.
Sebi said that agreements whose purpose and effect is to impact the management or control or impose any restriction or create any liability need to be disclosed to the stock exchanges. However, agreements entered by a listed entity for the business operations of a company -- supply agreements, purchase agreements, etc -- would be excluded from the scope of disclosures.
Also, the regulator issued rules to strengthen the framework of slump sales executed outside the scheme of arrangement framework to safeguard the interest of minority shareholders.
It introduced the provisions in the disclosure rules for the sale, disposal, or lease of whole or substantially the whole of the undertaking of the listed company and also mandated disclosure of the objects and commercial rationale for such sale, disposal, or lease, to the shareholders.
Sebi said that for the material events or information which emanate from the listed entity, including those related to acquisitions, Scheme of Arrangement, consolidation of shares, and buyback of securities, the timeline for disclosure by the entity has been reduced from 24 hours to 12 hours.
In case of information that emanates from a decision taken in a meeting of the board of directors, the disclosure should be made within 30 minutes from the closure of such meeting.
Listed entities have been asked to disclose fraud and defaults by directors or senior management as Sebi has specified material information for investors. Currently, such disclosure by a listed entity or its key managerial personnel or promoter, and arrest of key managerial personnel or promoter are mandated.
In addition, listed entities have been asked to disclose default in payment of fines, penalties, and dues to any regulatory, statutory, enforcement, or judicial authority.
Also, the regulator asked listed entities to make disclosures in relation to cybersecurity incidents, cybersecurity breaches, or loss of data and documents in the quarterly corporate governance report.
With regard to vacancies of certain key managerial posts, Sebi said that any vacancy in the office of Chief Executive Officer, Managing Director, and Whole Time Director needs to be filled within three months from the date of such vacancy.
Listed entities will have to submit a certificate to the bourses regarding the status of payment of interest, dividend, repayment, and redemption of principal of non-convertible securities, within one working day of it becoming due.
To give these effect, Sebi has amended LODR (Listing of Obligations and Disclosure Requirements) rules, which would come into force from July 14.
(Except for the headline, this story has not been edited by NDTV staff and is published from a syndicated feed.)
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Wednesday, 14 June 2023
Los Angeles city councilman charged with embezzlement may face suspension
Federal Reserve leaves interest rates unchanged for first time in 15 months but envisions 2 more hikes this year
Rs 8100 Crore GST Evasion Via 4909 Fake Businesses Detected: Tax Official
Authorities have detected GST evasion to the tune of more than Rs 8,100 crore and it has been found that the offence was carried out through 4,909 bogus business establishments spread in parts of the country, a tax official from Madhya Pradesh said on Wednesday.
MP Commercial Tax Commissioner Lokesh Kumar Jatav said the state Goods and Services Tax (GST) Department got the initial clues of this big tax evasion during a month-long investigation of e-way bills of an establishment in Indore.
"On a detailed analysis and scrutiny of the data, a total of 4,909 suspicious business establishments were found across the country. Of these, a maximum of 1,888 establishments are in Delhi, 831 in Uttar Pradesh, 474 in Haryana, 210 in Tamil Nadu, 201 in Maharashtra, 167 in Telangana and 139 in Madhya Pradesh," he said.
Jatav said that these 4,909 establishments under investigation showed a turnover of about Rs 29,000 crore in GST returns during the financial years 2021-22 and 2022-23 and the investigation detected evasion of Rs 8,103 crore.
The tax evasion was done by taking undue advantage of input tax credit of GST through bogus business and fake bills, he said.
According to Jatav, the GST department of Madhya Pradesh would conduct a detailed investigation of tax evasion in coordination with the authorities concerned of other states and also register a first information report (FIR) against the accused.
(Except for the headline, this story has not been edited by NDTV staff and is published from a syndicated feed.)
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Tuesday, 13 June 2023
New York Rangers hire Peter Laviolette as coach to replace Gerard Gallant
Denver police suspect a drug deal led to shooting that wounded 10, including 1 suspect, during Nuggets' NBA celebration
Monday, 12 June 2023
Maryland police say man charged with murder in 3 shooting deaths and 3 injured
Subhash Chandra, Punit Goenka Barred From Company Boards By Regulator
Markets regulator Sebi on Monday barred Essel Group chairman Subhash Chandra and Zee Entertainment Enterprises Ltd (ZEEL) MD and CEO Punit Goenka from holding the position of a director or key managerial personnel in any listed company for siphoning off funds of the media firm.
The case pertains to Chandra, who was also the chairman of ZEEL during the alleged violation, and Goenka having abused their position as directors or KMPs of a listed company for siphoning off funds for their own benefit.
In its interim order, Sebi noted that Chandra and Goenka alienated the assets of ZEEL and other listed companies of Essel Group for the benefit of associate entities, which are owned and controlled by them.
The siphoning of funds appears to be a well-planned scheme since, in some instances, the layering of transactions involved using as many as 13 entities as pass-through entities within a short period of two days only, it added.
Sebi noted that the share price of ZEEL has come down from a high of close to Rs 600 per share to the current price of less than Rs 200 per share during the period FY 2018-19 to FY 2022-23. This erosion of wealth despite the company being so profitable and generating profit after tax consistently would lead to a conclusion that "all was not well with the company".
During this period, the promoter shareholding dropped from 41.62 per cent to the current level of 3.99 per cent.
Although the promoter family is only holding 3.99 per cent shares in ZEEL, Chandra and Goenka continue to be at the helm of affairs of ZEEL, the order noted.
"Noticees (Chandra and Goneka) created a façade through sham entries to misrepresent to the investors as well as the regulator that money had been returned by associate entities, whereas in reality, it was ZEEL's own funds which were rotated through multiple layers to finally end in ZEEL's account.
The noticees have attempted to ride piggyback on the success of ZEEL, the flagship company of Essel Group, to bankroll the associate entities, which are owned and controlled by them," Sebi said in its 17-page order.
The order came after Sebi conducted an examination in the wake of the resignation of two independent directors -- Sunil Kumar and Neharika Vohra -- of ZEEL in November 2019.
They had raised concerns over several issues, including the appropriation of certain Fixed Deposit (FD) of ZEEL by Yes Bank for squaring off loans of related entities of Essel Group. Vohra alleged that bank guarantees were given to a subsidiary without approval from ZEEL's board.
Sebi's investigation found that Chandra had provided a “Letter of Comfort” or LoC in September 2018, that was towards a Rs 200 crore loan outstanding from Essel Group Mobility.
Going by the letter, the Rs 200 crore FD available with Yes Bank from any of the Essel Group companies, including ZEEL, could be taken to settle it. Accordingly, Yes Bank had adjusted the loans of seven associate entities with this Rs 200 crore of ZEEL.
Later, it was found that these seven entities were owned or controlled by family members of Chandra and Goenka, Sebi noted.
When Sebi investigated further, ZEEL submitted that Rs 200 crore had been returned by the associate entities to ZEEL. Since Chandra and Goenka had signed the LoCs without consulting or informing the Board, both were found to have violated provisions of LODR (Listing Obligations and Disclosure Requirements) rules.
Accordingly, Sebi said, "Noticees shall cease to hold the position of a director or a Key Managerial Personnel in any listed company or its subsidiaries until further orders". PTI SP MR
(Except for the headline, this story has not been edited by NDTV staff and is published from a syndicated feed.)
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Biden determined to say as little as possible about Trump's indictment
$2M insurance policy in effect for Hawaii coral reefs in time for hurricane season
Biden bringing on ex-labor secretary and DNC chair Tom Perez to help with implementation push
Jury finds electric utility PacifiCorp liable in devastating Oregon wildfires
Apollo Theater CEO Jonelle Procope to leave the historic landmark on safe financial ground
Sunday, 11 June 2023
California skate park named for Black motorist fatally beaten in police traffic stop
Mississippi civil rights lawyer arrested filming traffic stop, attorney says
Australia police: initial inquiries indicate 10 dead in bus crash
Novak Djokovic wins his men's-record 23rd Grand Slam title by beating Casper Ruud in the French Open final
Saturday, 10 June 2023
Arcangelo crosses finish line first at Belmont Stakes, making Jena Antonucci first female trainer to win the race
Federal regulators promise safety review at all the major freight railroads
Manchester City wins Champions League for the first time, beating Inter Milan 1-0 in final to complete treble
North Carolina GOP votes to censure Sen. Tillis for support of LGBTQ+ rights, immigration policies
North Dakota tribe buys idle oil pipeline from Enbridge
Air India Repairs Plane Stranded in Russia, Lands In Mumbai
Air India's Boeing aircraft that was grounded in Magadan in far east Russia landed in Mumbai on Saturday evening.
The plane had taken off from Magadan earlier in the day after engineers rectified the oil system defect in one of the engines, according to the airline.
On June 6, AI 173 operating from Delhi to San Francisco carrying 216 passengers and 16 crew members was diverted to the port city of Magadan in far east Russia following a mid-air glitch in one of the engines of the Boeing 777-200LR aircraft.
All were stranded in the port city for two days and the replacement aircraft ferried them to San Francisco on June 8.
An Air India spokesperson on Saturday said the B777-200LR aircraft, bearing registration mark VT-ALH, that was grounded in Magadan, Russia (GDX) following the diversion of AI173 DEL-SFO on June 6, has departed GDX and is on its way to Mumbai.
"We can confirm that a defect in the oil system of one of the aircraft's engines has been rectified by our engineering team that flew on a ferry flight to GDX on June 7. The aircraft was checked on all safety parameters and certified serviceable before take off from GDX today," the spokesperson said in a statement.
Later in the evening, the spokesperson said the aircraft landed at Mumbai airport at around 8.16 pm.
According to a source, there were two pilots and eight cabin crew onboard the aircraft.
The airline had sent four engineers on the ferry flight to Magadan on June 7 and the issue of oil pressure in one of the engines of the stranded aircraft was fixed.
(Except for the headline, this story has not been edited by NDTV staff and is published from a syndicated feed.)
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Mass slated in solidarity with LGBTQ Catholics canceled after protests
Friday, 9 June 2023
Hundreds of journalists strike to demand leadership change at biggest US newspaper chain
Thursday, 8 June 2023
Prosecutor seeks death penalty against Kansas man accused of killing two sons
23 freight cars, new vehicles heavily damaged in train derailment in northern Arizona
Wednesday, 7 June 2023
Land trusts offer an innovative way to help the middle class afford a home
Tuesday, 6 June 2023
Portland, Oregon, to clear sidewalk tents to settle suit with people with disabilities
Sunday, 4 June 2023
California attorney general says Florida responsible for flying migrants to Sacramento
Today in History: June 5, Robert F. Kennedy assassinated
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Virginia State Police: Rescuers have located plane that crashed after flying over nation’s capital, no survivors found
Australian official pardons woman who has spent 20 years in prison for killing her 4 children
Russia says it thwarted large Ukrainian attack in Donetsk; unclear if this was start of Ukrainian counteroffensive
Indian opposition leader Rahul Gandhi calls on US audience to stand up for 'modern India'
Saudi Arabia to reduce oil output by 1 million barrels per day, while rest of OPEC+ extends previous cuts through 2024
'Spider-Man: Across the Spider-Verse' swings to massive $120.5 million opening
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