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The Indian Express, June 19, 2019 The Reserve Bank of India has imposed a penalty of Rs one crore on HDFC Bank for non-compliance with directions on ‘know your customer/and anti-money laundering’ (KYC/AML) norms and on reporting of frauds. “The RBI had received a reference from customs authorities regarding submission of forged bill of entries by certain importers to the bank for remittance of foreign currency,” RBI said. “Examination in this regard revealed violations of RBI directions on ‘KYC/AML norms’ and on reporting of frauds based on which a notice was issued to the bank advising it to show cause as to why monetary penalty should not be imposed for non-compliance with the aforesaid directions,” it said. “After considering the bank’s reply, oral submissions made during the personal hearing and additional submission made by the bank after the personal hearing, the RBI came to the conclusion that the charges of non-compliance with the RBI directions were substantiated and ...

The Hindu, June 18, 2019 Venezuela’s U.S.-backed opposition on June 17 came under increasing scrutiny for a case in which two activists allegedly misappropriated funds designated to help Venezuelan security forces who deserted and crossed into Colombia. Opposition leader Juan Guaidó said his diplomatic representative in Colombia will on Tuesday provide Colombian investigators with information about an opposition probe of the case. Mr. Guaidó, who is trying to topple Venezuelan President Nicolas Maduro, says anyone found guilty of wrongdoing must be punished. “Dictatorships cover up corruption,” Mr. Guaidó tweeted. “We don’t.” Still, the alleged theft was a blow to an opposition movement that frequently accuses Mr. Maduro and his associates of large-scale corruption, contributing to the economic and humanitarian crisis that Venezuela has endured for years. Mr. Maduro was quick to highlight the alleged opposition theft, saying it shows Mr. Guaidó’s camp cannot be tr...

The Indian Express, June 19, 2019 State Bank of India (SBI) on Tuesday moved the Mumbai bench of National Company Law Tribunal (NCLT) for resolution of Jet Airways under the Insolvency and Bankruptcy Code (IBC). Jet Airways shares plunged nearly 41 per cent on the stock exchanges following the decision of lenders to take the airline to NCLT. Advertising x NCLT is likely to take up the petition on Wednesday. Other banks in the consortium which lent funds to the crippled airline are also expected to join the petition. “We are hopeful of a resolution under the IBC rather than liquidation. Bidders are likely to be attracted by exemptions under IBC. Exemption from Sebi open offer may be possible through IBC,” said a banking source. Jet Airways owes over Rs 8,500 crore to lenders. Etihad Airways, which holds around 24 per cent stake in Jet Airways, was the only shortlisted bidder to put in a bid. The Hinduja group later made its interest in Jet Airways public, and...

Business Line, June 18, 2019 The long-pending overhaul of the country’s direct tax laws could finally gain traction later this year with the Goods and Services Tax (GST) now in place and the Union government sitting pretty with an overwhelming majority. According to informed sources, the Union Budget 2019-20 could spell out the government’s intent to this effect. “There has been a move to redraw the Income Tax Act for some time and a committee was also set up. With the government now having a clear five-year mandate and the transition to GST almost complete, the focus will shift to the direct tax laws this fiscal,” said a person familiar with the development, adding that the Union Budget on July 5 could make a mention of this move. The Finance Ministry had, in November 2017, set up a Task Force to draft an appropriate direct tax legislation keeping in mind the international best practices and economic needs of the country. It was expected to submit its report within six-mon...

Dawn, Khaleeq Kiani, Updated June 19, 2019 Reporting this to the National Assembly’s Standing Committee on Finance and Revenue by FBR Chairman Shabbar Zaidi on Tuesday said the assets declaration scheme (tax amnesty) could not be extended beyond June 30 at any cost because the ­government was constrained by the IMF programme. “We are constrained by a regime of a new [IMF] programme. Extension of date (for declaration of assets) is not viable,” he said in response to various questions from members of the national assembly. He declined to share the details of amounts so far collected under the scheme or the number of declarations. He said most of such declarations are normally filed by the people in the last week. Chairman of the Standing Committee Asad Umar said the IMF executive board was due to consider Pakistan’s bailout programme on July 3 and the FBR was making it clear that amnesty scheme was not permissible under the IMF programme. He also declined to share any targ...

By PTI, June 17, 2019 The Economic Times In a huge embarrassment for the Pakistan government, the ADB has distanced itself from the "premature announcement" of Prime Minister Imran Khan's adviser that the global lender would provide a loan of USD 3.4 billion to the cash-strapped nation, saying "discussions are ongoing".  The rare rebuff by the Philippines-headquartered institution came a day after Khan's adviser on finance Abdul Hafeez Shaikh and Federal Minister for Planning, Development and Reforms Khusro Bakhtiar announced that the country would get a loan of USD 3.4 billion for budgetary support, out of which USD 2.1 billion would be released within a year.  The Asian Development Bank (ADB's) stance taking the rare step on a public holiday to issue a statement assumes significance as the cash-strapped country is trying to overcome a ballooning balance-of-payments crisis that threatens to cripple its economy.  In its statement, the A...

Firstpost, Press Trust of India, June 18, 2019 Harried bankers on Monday decided against an outright sale of Jet Airways to the lone bidder, instead voted to send it for bankruptcy to recover their Rs 8,000 crore dues. The once-largest private sector airline, started over 25 years ago by airline-ticketing-agent-turned-entrepreneur Naresh Goyal, stopped flying on 17 April after it ran out of cash and the unpaid lessors took away most of its 100-odd operational airplanes. The nascent bankruptcy process has been fraught with inordinate delays with only a fraction of the cases have been resolved within the timeline, while the asset in on the books of the once the largest airliner are just fraction of its dues which run into over Rs 36,000 crore. After a meeting of the 26 lenders on Monday, SBI in a statement said, "after due deliberations, the lenders have decided to seek resolution for Jet Airways under the bankruptcy code since only a conditional bid was received". ...

Firstpost, Reuters, Jun 18, 2019  Investor caution ahead of the Federal Reserve's interest rate meeting capped Asian stocks on Tuesday, while crude oil prices retreated as global growth worries overshadowed supply concerns stemming from recent Middle East tensions. MSCI's broadest index of Asia-Pacific shares outside Japan inched up 0.05%. Australian stocks added 0.1% while Japan's Nikkei dipped 0.05%. The Fed, facing fresh demands by U.S. President Donald Trump to cut interest rates, begins a two-day meeting later on Tuesday. The central bank is expected to leave borrowing costs unchanged this time but possibly lay the groundwork for a rate cut later this year. Fresh hopes for looser U.S. monetary policy have been a tonic for risk assets markets, which were buffeted last month by an escalation in the trade conflict between Washington and Beijing. The S&P 500 has gained 5% this month after sliding in May on trade war fears. Focus is now on how close the ...