Beginning 1 October, listed companies will have to disclose defaults on loan repayments within one working day. They will have to keep the stock exchanges informed in case they have defaulted in payment of interest on loans taken from any financial intermediary as well as external commercial borrowings, and instalments for any other debt instrument with micro details such as the date of default, name of the bank/financial institution, the amount of default and also their debt exposure to the particular financial intermediary. They are also required to keep the credit rating agencies concerned in the loop.
The ninth anniversary of Lehman Brothers Holdings Inc. filing for bankruptcy was rather muted last week. With every passing year, articles in newspapers and discussions on TV channels looking back at the changes in global financial world in the wake of the collapse of the US’s fourth-largest investment bank have been tapering off even as we grapple with new realities.
At first glance, the title of professor of finance at the Universe of Chicago and former Reserve Bank of India (RBI) governor Raghuram Rajan’s latest book, I Do What I Do, sounds combative. Following the best practice of governance, Rajan didn’t discuss anything related to central banking in India for a year after he left RBI. The launch of his book in three Indian cities last week also coincided with the completion of the first year of his successor at RBI Urjit Patel, the publication of the central bank’s balance sheet which revealed that close to 99% of the currency demonetised has come back to the system, and a sharp drop in India’s economic growth in the first quarter of current fiscal year ending 30 June.
Raghuram Rajan had taken over as governor of the central bank in the world’s fastest-growing major economy in the thick of the taper tantrum in September 2013 when the local currency was depreciating every day against the dollar and inflation was in double digits. His predecessor D. Subbarao had witnessed the collapse of iconic US investment bank Lehman Brothers a few days after he had taken over, leading to the transatlantic financial crisis.