New Delhi, October 21
The government has decided to merge National Spot Exchange Ltd (NSEL), which is embroiled in a Rs 5,600-crore payment crisis, with its holding group Financial Technologies. The crisis-hit NSEL is promoted by Jignesh Shah-led Financial Technologies (India) Ltd.

Issuing a draft order for the proposed merger, the government today said the move has been decided upon in "public interest".

Shares of Financial Technologies slumped 20% to hit its lowest trading permissible limit for the day after the government decided to merge crisis-ridden National Spot Exchange Ltd (NSEL) with holding group FTIL.

The stock had opened the day on a positive note but as soon as the merger news came in investors pressed the selling button. The government has sought comments from members of the two companies and the creditors on the draft order.

"All due procedures in this regard shall be followed. The members of the two companies, its creditors may provide suggestions/objections within a period of 60 days," the Ministry said.

According to the draft order, FTIL has not furnished any explanation as to what steps have been taken by NSEL or by FTIL itself as a parent company to honour the commitment of assuring safety and risk-free trading to the members and clients of the exchange. NSEL is not having the resources, financial or human, or the organisational capability to successfully recover the dues pending for over a year, the order said.

"Further, NSEL is not left with any viable, sustainable business while FTIL has necessary resources to facilitate speedy recovery of dues," it said.

"In the face of a fraud of such a magnitude involving settlement crises of Rs 5,600 crore owed to over 13,000 investors on the trading platforms of NSEL, FTIL cannot seek to take refuge behind the corporate so as to unjustifiably isolate itself from the fraudulent actions that took place at NSEL resulting in such a huge payment crisis," the order said.

Mumbai, October 21
The decisions to deregulate diesel prices and hike the natural gas prices are "credit positive" as it would bring in fiscal discipline, ratings agency Moody's said today.

"The decision to fully deregulate diesel prices signals fiscal discipline on the part of the sovereign, which we view as credit positive," Moody's Investors Service said in a note. It said the diesel deregulation will reduce the subsidy burden for the government, although fiscal savings are "likely to be limited".

Total fuel subsidies accounted for less than 1% of GDP in 2013-14. After a long wait, the government on Saturday deregulated diesel prices and raised the natural gas rates. While diesel deregulation is an important reform initiative, hike in gas prices will directly benefit oil exploration companies.

Another rating firm Fitch said the decision to deregulate would have a positive effect on the national oil marketing companies.

"The expected direct impact of both the diesel reform and natural gas price hike on Fitch's headline fiscal forecasts is limited, but the fiscal balances will be more robust to future oil shocks, since both diesel and petrol prices are now determined by the market," Fitch said.

It said deregulation will result in heightened competition for the existing dominant national retailers, and could hurt their profitability over the medium to long term.

"By allowing diesel to be marketed profitably, the sector will once again be attractive for private companies that had left when price restrictions were put in place," Fitch said. — PTI

New Delhi, October 21
Finance Minister Arun Jaitley today said the revised Constitution Amendment Bill to roll out the Goods and Services Tax (GST) would be introduced in the forthcoming winter session of Parliament.

The government has been on a reforms spree in the past couple of weeks with important measures being announced and GST is the next big one that is awaited. He said the first tranche of compensation to states for their revenue loss arising due to phasing out of Central Sales Tax (CST) may also be taken up in the winter session.

"Confident of introducing revised GST Constitution Amendment Bill in the Winter Session. Targeting winter session for transfer of first tranche of CST compensation (to states)," Jaitley said.

The government proposes to implement the Goods and Services Tax (GST) from April 1, 2016, and the new Finance Commission may be set up ahead of its schedule to look into the issues related with the new indirect tax regime.

The UPA government in 2011 introduced a Constitution Amendment Bill in the Lok Sabha to pave the way for the introduction of GST.

The states have sought a 5-year compensation mechanism from the Centre and demanded that it be included in the Bill. 

New Delhi, October 21
Jet Airways and SpiceJet today launched yet another fare war in the domestic market ahead of Diwali, announcing limited-period one-way all-inclusive economy fares starting Rs 899.

Both airlines said the low-priced tickets were on offer for travel between November 1 and December 15. While SpiceJet's sale began today and would be on till October 26, Jet's offer would start tomorrow and last till that date.

Travel industry sources expected more airlines to join the competition shortly. AirAsia India had begun such a sale with fares at Rs 999 earlier this week.

For no-frills SpiceJet, the all-in fares starting at Rs 899 were available for short distance travel between sectors like Bangalore-Chennai-Kochi. While on Bangalore-Goa sector, a one-way ticket price would start at Rs 1,599, for the rest of India, the starting fare would be Rs 2,499. — PTI

BRIEFLY

Samsung, Airtel digital TV launch integrated digital TVs
New Delhi: Samsung and Direct-To-Home (DTH) service provider Airtel digital TV on Tuesday announced partnership to launch range of integrated digital TVs (iDTV). As part of this innovation, Samsung’s range of SmartDirect TVs will come designed with an in-built Airtel digital satellite tuner which will enable DTH signal reception without the need for customers to install an external set-top-box, the company said. — PTI

HDFC Bank posts 20% increase in Q2 profit
New Delhi: HDFC Bank on Tuesday reported a 20% rise in its September quarter net profit to Rs 2,381.5 crore. The bank's total income was at Rs 13,894.7 crore in Q2, up from Rs 11,937.7 crore in the same period last year. — PTI

PNB Q2 net up 13.81% at ~575.34 crore
New Delhi: Punjab National Bank on Tuesday reported a 13.81% increase in net profit at Rs 575.34 crore for the second quarter of 2014-15. The bank's total income increased to Rs 13,020.46 crore during the second quarter ended September 30, 2014, up 11.92% from Rs 11,632.84 crore in the same period last year. — PTI

Saint-Gobain to open glass plant in Rajasthan
New Delhi: French building materials group Saint-Gobain will open a glass plant at Bhiwadi in Rajasthan next week with an investment of $185 million (Rs 1,000 crore) to strengthen its position in India's glass market. Spread over 136 acres, the plant with manufacturing capacity of close to 1,000 tonne glass a day is going to be Asia's largest facility, Saint-Gobain said.— PTI

Zomato forays into Canada; to invest $10m for expansion
New Delhi: Online restaurant guide Zomato has made a foray into Canada with the launch of its operations in Toronto and has earmarked $10 million (over Rs 61 crore) as part of its ongoing expansion strategy in that country. The company provides detailed information for over 11,000 restaurants, making it the most exhaustive social restaurant discovery service in the Greater Toronto Area, Zomato said. — PTI

SBoP opens two new branches in Chandigarh
Chandigarh: State Bank of Patiala on Tuesday opened two branches at Raipur Kalan (Chandigarh) and Peer Muchhalla (Zirakpur) taking the total network to 1,272 of the bank. The branches were inaugurated by Rashmi Fauzdar, regional director, RBI Chandigarh, in the presence of DV Suresh Kumar, general manager (retail network), SBoP, Chandigarh. — TNS