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The curious case of Ruchi Soya shares: Ruchi shares, which were relisted at Rs 17 after equity restructuring, have been locked at the upper circuit for the past 70 trading sessions since January 27. It has been a dream run for investors in Nutrela-maker Ruchi Soya stock as it has delivered more than 8,800 per cent returns in the last five months, climbing to an all-time high of Rs 1,507.30 on June 26 compared to its relisting price of Rs 16.9 on January 27, 2020 on the BSE.In contrast, the benchmark S&P BSE Sensex has fallen 14.45 per cent during the same period. After completing the resolution process under the bankruptcy law, Ruchi Soya Industries' shares resumed trading on January 27, 2020, when it was re-listed on the stock exchanges after consolidation of equity shares of the company. On January 27, Ruchi Soya shares were valued at Rs 16.9 per share, but in just 5 months, they rose to hit a record high of Rs 1,507.30 per share today. Turnaround after debt restructuring and...

*Supreme Court snubs RBI - says interest on interest is not desirable* The Supreme Court, on June 17, 2020 said there is "no merit in charging interest on interest" for deferred loan payment instalments during the moratorium period announced in wake of the COVID-19 pandemic. A bench headed by Justice Ashok Bhushan observed that once moratorium is fixed then it should serve the desired purposes and the government should consider interfering in the matter as it cannot leave everything to banks. Once the moratorium is fixed then it should serve the desired purposes and we see no merit in charging interest on interest," the bench, also comprising Justices S K Kaul and Justice M R Shah, orally observed. The bench was hearing a plea filed by an Agra resident Gajendra Sharma, who has sought a direction to declare the portion of the RBI's March 27 notification "as ultra vires to the extent it charges interest on the loan amount during the moratorium period, which create...

What is the Federal Reserve doing for American Markets? June 8 – Fed Significantly Expands Access to Proposed Main Street Lending Facility The Fed Board introduced sweeping changes to the Main Street Lending Program as proposed in order to make it possible for a wider range of small and medium-sized businesses to apply. These program changes include: Lowering the minimum loan size for certain loans to $250,000 from $500,000; Increasing the maximum loan size for all facilities; Increasing the term of each loan option to five years, from four years; Extending the repayment period for all loans by delaying principal payments for two years, rather than one; and Raising the Fed’s participation to 95% for all loans. The Main Street Lending Facility still does not have an announced date of operation. Conclusions “We’re going to go in strong,” said Fed Chairman Jerome Powell in his press briefing Sunday evening, and “we will restore market functioning.” Despite Sunday’s emergency announcement ...

RBI warns SC against allowing waiver of interest for moratorium period: Reserve Bank of India (RBI) warned the Supreme Court of not allowing a plea seeking waiver of interest for the six month moratorium period on loan repayments, ending on August 31. The RBI, in its reply to the SC, has estimated that a “forced” waiver of interest will hurt banks by as much as Rs 2 lakh crore (1% of GDP), which will have "huge consequences" for stability of the entire financial system. RBI filed a reply, after the SC issued a notice seeking a reply from the regulator on a waiver of interest dues plea on the six-month moratorium announced by the central bank. On March 27, RBI issued a circular asking financial institutions to allow customers a moratorium on loan installments that fall between March 1 and May 31. On May 22, RBI extended the moratorium for another three months, until August 31. RBI argued that a "forced waiver is neither prudent nor appropriate". The RBI cautioned tha...

*Prime Minister Narendra Modi address to CII*: Prime Minister Narendra Modi called for the corporate leaders to take an oath to make India self-reliant. He was addressing the annual session of the Confederation of Indian Industry (CII), through via a virtual online meeting. PM Modi shared his vision on 'Getting Growth Back' with representatives of the India Inc. PM's address to the India Inc came at a crucial time for India due to various reasons including, 1) Modi govt's completion of one year of its second term in the office. 2) Companies are resuming operations after the Ministry of Home Affairs allowed relaxations amid lockdown. 3) Ratings agency Moody's on Monday downgraded India's rating for first time in 22 years. *Top highlights of the PM Modi's address to CII:* • We will take structural reforms that will change course of the country; we will together build self-reliant India. • World is looking for a trusted, reliable partner. In India, we have pote...