Allowing mutual funds to segregate distressed debt securities in a scheme, a practice called side-pocketing is a clear moral hazard.
Mergers and acquisitions beyond a certain threshold require the approval of the Competition Commission of India (CCI), which keeps a tab on unfair business practices across sectors.
The UK-based steel major had won both assets in July and according to the resolution plan, was expected to pay lenders Rs 4,810 crore by October
Debt-ridden Amtek Auto today said it has signed a share purchase agreement with Nippon Steel and Sumitomo Metal Corporation to sell its stake in its joint venture (JV) company SMI Amtek Crankshaft.
Amtek's subsidiary Castex Technologies and Metalyst Forgings were also locked at 5 percent upper circuit each at Rs 4.31 and Rs 28.20 on the BSE, respectively.
The regulator had initiated adjudication proceedings to inquire about the alleged violation of the code of conduct and mutual fund regulations by JP Morgan Asset Management India Pvt Ltd, JP Morgan MF and JP MF India Pvt Ltd and also to inquire into alleged violation mutual fund norms by Surti.
Sebi agreed to settle proposed adjudication proceedings in the case after it was approached by JP Morgan Asset Management India Pvt Ltd, JP Morgan MF and JP MF India Pvt Ltd with a plea under the settlement regulations "without admitting or denying the findings of fact and conclusion of law".
Amtek, which is one of the 12 large accounts identified by the Reserve Bank of India under Insolvency and Bankruptcy Code, has been facing bankruptcy proceedings over defaults of Rs 12,700 crore worth of loans.
US-based hedge fund Deccan Value is leading the race to bid for Amtek Auto, which has a debt pile of Rs 12,700 crore.
In a clarification note Bharat Forge said it has also participated in the process of acquiring Amtek Auto, along with other potential bidders.
The event comes three months after Amtek Auto, one of the 12 debt-ridden firms identified by the Reserve Bank of India (RBI), was taken to bankruptcy court.
Sudarshan Sukhani of s2analytics.com is of the view that one can sell Glenmark Pharma and Idea Cellular and buy Titan Company and prefers Maruti Suzuki over Amtek Auto.
Ashwani Gujral of ashwanigujral.com is of the view that one can sell Ajanta Pharma and PVR and buy Delta Corp.
Amtek Auto's loss widened sharply to Rs 889.6 crore in the quarter ended June 2017, from Rs 319.7 crore in year-ago quarter, hit by lower revenue and exceptional inventory loss.
"The application filed by Corporation Bank under section 7 of the Insolvency and bankruptcy Code, 2016... before NCLT, Chandigarh has been admitted by the tribunal," the company said in a BSE filing.
Sandeep Wagle of powermywealth.com recommends selling Indiabulls Real Estate and Suven Life Sciences.
The company's debt as of March 2016 stood at more than Rs 14,000 crore.
Founder Arvind Dham and his family own a 52.4 percent stake in Amtek Auto.
The company in its board meeting held on June 10 has decided to issue 2,68,33,876 equity shares on preferential basis to Assets Care & Reconstruction Enterprise.
On April 28, 2017 Ancient Suppliers bought 39,75,000 shares of Amtek Auto.
SBI | Bajaj Auto | Tata Power | GVK Power | Amtek Auto | Motherson Sumi | Bharat Forge | Jayshree Chemical | MTNL | Reliance Capital | Sintex | Hindustan Zinc | Music Broadcast | Healthcare Global | Sagar Cements | NBCC and Pfizer are stocks, which are in the news today.
Auto parts maker Amtek Auto is facing a tough challenge of reducing debts on its books. In hopes to solve this problem, company’s Chairman and founder Arvind Dham is looking at the option of selling assets owned by him, reports Mint.
The company's extra-ordinary general meeting (EGM) to be held on March 25 to consider issue of 2.35 crore equity shares to 2 promoter companies i.e. Aisa International & Amtek Laboratories on preferential basis.
The company's EGM is scheduled to be held on March 23 to consider issue of 44 lakh equity shares to Amtek Auto at Rs 100 per share and 24 lakh warrants to Amtek Auto at Rs 100 each on preferential basis.
In an interview to CNBC-TV18 SP Tulsian, sptulsian.com shared his reading and outlook on the market and also gave recommendations on various stocks.