Here is today’s important banking news to keep you updated and help you prepare for IBPS and other bank exams:
Important Banking News: Sebi Fines 3 Firms for Failing to Get SCORES Registration
- Markets watchdog Sebi has slapped a total fine Rs 4.5 lakh on three firms for failing to register with its online complaint redressal system within the stipulated time.
- In three separate orders, the Securities and Exchange and Exchange Board of India (Sebi) has levied a fine of Rs 1.5 lakh each on Champion Commercial, Classic Leasing & Finance and Camellia Trading & Investment.
- The regulator in April 2013 had directed all listed companies to obtain Sebi Complaints Redressal System (SCORES) authentication within the stipulated time. However, these firms failed to comply with the order.
- Thereafter, a letter dated December 2, 2013, was issued to these companies, whereby these firms were once again advised to submit the requisite information regarding SCORES authentication by December 18, 2013.
- These companies again failed to comply with the direction. Champion Commercial obtained SCORES authentication on March 20, 2015, while Classic Leasing & Finance obtained it on March 14, 2014.
- Camellia Trading & Investment got its SCORES authentication on July 9, 2015. Launched by Sebi in June 2011, SCORES provides a centralised database of all complaints. Online movement of complaints to the listed companies concerned and upload of their Action Taken Reports (ATRs) are done through this system.
- It also helps investors view, track and follow up the action taken on their grievances. The online redressal system has significantly helped in reducing the processing time of complaints.
Important Banking News: Reliance Power Seeks to Exit Krishnapatnam UMPP
- Looking to exit the stalled 4,000 MW Krishnapatnam power project, Reliance Power has written to Andhra Pradesh government suggesting that it could be done on similar lines to that of Tilaiya UMPP, which was acquired by procurers from the company.
- The Anil Ambani group firm Reliance Power has said the Krishnapatnam UMPP, which was awarded to it in 2007, could not be taken forward due to escalated coal cost from Indonesia, among other factors.
- The Krishnapatnam Ultra Mega Power Project (KUMMP) is located in Andhra Pradesh while Tilaiya plant was in Jharkhand.
- Reliance Power has informed the Andhra Pradesh government the procurers of Tilaiya UMPP — which was stalled for over five years — have accepted the termination of power purchase agreement and decided to purchase the entire shareholding in the project Special Purpose Vehicle from the company by way of mutual discussion with the developers.
- “We are fully confident that the issues pertaining to KUMPP can also be resolved in the same spirit by following similar principle by parties,” CEO of Reliance Power N Venugopala Rao said in a letter to the Andhra Pradesh government last month.
- Coastal Andhra Power Limited (CAPL), a Reliance Power Limited subsidiary, was awarded the Krishnapatnam UMPP in 2007 and the power produced by the project was to be shared by four states — Andhra Pradesh, Maharashtra, Tamil Nadu and Karnataka.
- Southern Power Distribution Company Limited, an Andhra Pradesh government power utility, on behalf of power procurers of rest of the states had in 2012, issued a notice to CAPL that it would encash the bank guarantee of Rs 300 crore as penalty besides terminating the contract as the project work has been stopped for over three months.
- Citing high coal prices from Indonesia among others, CAPL had stopped the work at Krishnapatnam UMPP. The tariff for the project was fixed at Rs 2.33 per unit.
- Reliance Power said the company was writing this letter without prejudice to any CAPL’s rights and contentions against the procurers including a petition pending before the Delhi High Court and other arbitrations before Indian Council of Arbitration.
- The company had given the termination notice in April last year for terminating the contract for the Tilaiya UMPP in Jharkhand.