September 2020 (Page 20)

Over 1,700 sub-investment grade mid-size companies (those with turnover of Rs 300-1,500 crore) will need debt restructuring to withstand the Covid-19 onslaught, said Ratings on Monday.

A total of 1,754 sub-investment grade firms (BB+ or lower) and 589 investment grade entities (BBB- and above) had opted for moratorium on repayment of dues during March-August 2020. The average debt size of these companies in CRISIL’s rated portfolio, excluding outliers, is around Rs 25-30 crore.

Five sectors — power, gems and jewellery, packaging, hotels, auto component and auto dealers — accounted for over 99 per cent of firms that opted for a moratorium.

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Sub-investment grade companies were grappling with a slowing economy even before the pandemic hit. The moratorium, announced by the Reserve Bank of India (RBI)

Capital regulator on Monday imposed a total of Rs 4 lakh on four entities for disclosure lapses in the matter of SRK Industries Ltd.

In four separate orders, a of Rs 1 lakh each has been levied by the regulator on Geeta Narayanan, Birendra Kumar Jain, Island Media and Entertainment Pvt Ltd and Maxgain Advisory Pvt Ltd.

Securities and Exchange Board of India (Sebi) had conducted an investigation in the matter of trading in SRK Industries’ shares by its promoters for the period of March 2010 to December 2014.

It was found that the entities had failed to make complete disclosures required under PIT (prohibition of insider trading) norms for becoming the promoters of SRK, due to a scheme of arrangement approved by High Court of Bombay and High Court of Madras for the merger