Banking and Financial News – 05 May 2014

SKS removes Vikram Akula, others from promoters list (The Mint) - India’s lone listed microlender SKS Microfinance Ltd said that founder Vikram Akula and three other entities are no longer counted among its promoters because they had exited from the company. Akula founded SKS as a non-profit organization in 1997 and converted it into a non-banking financial company in 2005. SKS listed on the stock exchange in August 2010.

RIL moves Delhi HC for quashing of FIR on gas pricing (The Mint) – Terming the first information report (FIR) by the erstwhile Aam Aadmi party (AAP) government on gas pricing as “motivated” and a “political” gimmick, Reliance Industries Ltd (RIL) moved the Delhi high court seeking its quashing on the ground that the issue fell within the domain of the centre and is well beyond the power of the state government. “The very act of registration of an FIR by the state government to inquire into the policy decision taken by the Union government is ultra-vires to the Constitution...and the respective field of their jurisdiction in the matters relating to the legislation and executive are clearly demarcated under the same. It is submitted that it does not permit encroachment by one authority upon the jurisdiction earmarked for another... any attempt by the state to inquire into the affairs of the Union (both on its legality or alleged criminality) is thus against the basic tenets of federal structure of Indian Constitution,” the plea said. The Arvind Kejriwal-led Delhi government had lodged an FIR naming petroleum minister M .Veerappa Moily, Mukesh Ambani and others on gas pricing issue and had alleged that the Congress-led UPA government “favoured” RIL with an eye on 2014 general election and BJP maintained “silence” hoping to gain corporate funding for the polls.

Banking and Financial Terms

Micro Finance : Micro Finance aims at alleviation of poverty and empowerment of weaker sections in India. In micro finance, very small amounts are given as credit to poor in rural, semi-urban and urban areas to enable them to raise their income levels and improve living standards.

Courtesy : The Mint