Morning Buzz: RBI to change wilful defaulter norms, borrowing conditions for big firms eased, and more

[CAPTION](File Photo)People walk past the Reserve Bank of India (RBI) building in New Delhi, India. Picture taken March 2, 2016. Image: REUTERS/Anindito Mukherjee[/CAPTION]

RBI to change wilful defaulter norms

The Reserve Bank of India (RBI) has issued a draft paper proposing that lenders classify wilful defaulters within 6 months of an account turning a non-performing asset. The RBI has proposed that all accounts above Rs 25 lakh be monitored for wilful defaults. The classification will happen after the borrower has been provided an opportunity to be heard.
(Economic Times, Business Standard, Business Line)

Borrowing conditions for big firms eased

The Securities and Exchange Board of India (Sebi) said it would allow for more flexibility for companies to access the bond markets as well as move penalties for companies that were unable to meet the mandatory bond market borrowing quota. There will now be no penalty for failing to raise the mandatory 25 percent of incremental borrowings for the fiscal year through bond markets.
(Business Standard, Financial Express, Business Line)

Nirma to buy 75 percent of Glenmark Life Sciences

Nirma plans to acquire 75 percent of listed entity Glenmark Life Sciences at Rs 615 per share for a total consideration of Rs 5,651 crore. This marks the biggest bet of the detergent-to-cement conglomerate in the pharmaceutical space. Glenmark’s stake will drop to 7.84 percent.
(Mint, Economic Times, Financial Express)

IDFC First working on Rs 3,000 crore QIP plan

IDFC First Bank is working on a plan to raise Rs 3,000 crore through a QIP. This comes after the company has seen a 59 percent rally in its stock price so far this year. The bank has also seen two large block deals, with Warburg Pincus exiting a 4.2 percent stake and GQG Partners buying a stake in the bank.
(Economic Times)