सामयिक विषय: Economics

Demerger of home finance from Reliance Capital

Demerger of home finance from Reliance Capital

Question:- Recently Reliance’s home finance business demerged from Reliance Capital. What will be the percentage of stakes held by Reliance Capital in the Reliance Home Finance after the demerger?
(a) 41%
(b) 62%
(c) 51%
(d) 30%
Answer:- (c)
Related facts:-

  • On August 11, 2017, National Company Law Tribunal (NCLT) approved the demerger of home finance business from Reliance Capital.
  • NCLT also approved the vesting of the demerged undertaking from the company to Reliance Home Finance Ltd.
  • Reliance Capital will hold a 51 per cent stake in Reliance Home Finance, and the company will be adequately capitalised to grow lending in the next 18 months.
  • Reliance Home Finance has assets under management (including securitised portfolio) of Rs 13,022 crore as of June 30.

Resource links:
http://www.business-standard.com/article/news-ians/tribunal-approves-demerger-of-home-finance-from-reliance-capital-117081100348_1.html

Lok Sabha passes State Banks (Repeal and Amendment) Bill, 2017

Lok Sabha passes State Banks (Repeal and Amendment) Bill, 2017

Question: The State Banks (Repeal and Amendment) Bill, 2017 provides for….
(a) Merger of five associate banks with the parent SBI.
(b) Merger of SBI with Bank of Baroda
(c) Merger of SBI with Reserve Bank of India
(d) None of the above.
Ans: (a)
Related facts:-

  • On August 10, 2017, the Lok Sabha passed the State Banks (Repeal and Amendment) Bill, 2017 .
  • This Bill was introduced in Lok Sabha by the Minister of Finance, Mr. Arun Jaitley, on July 21, 2017.
  • The Bill seeks to repeal the two Acts: (i) State Bank of India (Subsidiary Banks) Act, 1959, and (ii) State Bank of Hyderabad Act, 1956.
  • These Acts established the State Bank of Bikaner, State Bank of Mysore, State Bank of Patiala, State Bank of Travancore, and State Bank of Hyderabad. These banks were subsidiaries of the State Bank of India (SBI).
  • This is consequent to the Union Cabinet granting its approval in February 2017, which allowed the SBI to acquire these subsidiaries.
  • The Bill seeks to amend the State Bank of India Act, 1955 to remove references related to subsidiary banks.

Resource links:
http://www.prsindia.org/billtrack/the-state-banks-repeal-and-amendment-bill-2017-4830/

Government to expand Logistics Data Bank project to South India

Government to expand Logistics Data Bank project to South India

Question: The Logistics Data Bank (LDB) project aims to promote
(a) The use of Information Technology
(b) Foreign Direct Investment.
(c) Regional connectivity.
(d) None of the above.
Answer:- (a)
Related facts:-

  • The Logistics Data Bank (LDB) project, unveiled in July 2016, will soon be expanded to the country’s southern region. This project has so covered only the western logistics corridor.
  • The Logistics Data Bank (LDB) projectis an endeavor to make India’s logistics sector more efficient through the use of Information Technology.
  • Under this project every container is attached to a Radio Frequency Identification Tag (RFID) and then tracked through RFID readers .
  • This helps importers and exporters in tracking their goods in transit.
  • The project covers the entire movement of containers through rail or road till the Inland Container Depot and Container Freight Station.
  • The LDB is being implemented through a Special Purpose Vehicle called Delhi Mumbai Industrial Corridor Development Corporation Logistics Data Services Ltd. (DLDSL) — that is jointly (50:50) owned by the Delhi Mumbai Industrial Corridor (DMIC) Trust and Japanese IT services major NEC Corporation.
  • The LDB project was launched at the Jawaharlal Nehru Port, Mumbai on July 1, 2016.

Resource links:-
http://www.thehindu.com/business/Economy/logistics-data-bank-project-to-expand-to-south-india/article19452586.ece
http://shipping.nic.in/showfile.php?lid=2207

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