Senior bureaucrat Injeti Srinivas has been appointed as the first chairman of the International Financial Services Centre Authority (IFSCA) for the Gandhinagar-based financial special economic zone or Gujarat International Finance Tech (GIFT) City. On Monday, the department of personnel and training (DOPT) through a notification announced the appointment of the former corporate affairs secretary as the chairman of the newly set up regulator for three years. Srinivas retired on 31May.

The Securities and Exchange Board of India (Sebi) has the power to enhance penalties and levy higher penalty than what was originally imposed, the Securities Appellate Tribunal (SAT) has ruled. The tribunal was hearing a petition filed by Icra Ltd against a second showcause notice issued by Sebi on 28 January seeking to increase the penalty amount. The credit rating agency filed a plea before SAT seeking a stay on the proceedings.

IL&FS Transportation Networks on Friday said one of the lenders of its Spain-based subsidiary, Elsamex has filed a plea for declaration of insolvency of the company. "The Management of Elsamex SAU, Spain, a wholly-owned subsidiary of the company, has informed that an application has been filed by one of their lenders in the Madrid Mercantile Court, Spain for declaration of its insolvency," IL&FS Transportation said in a filing to the BSE.

To give relief from unintended tax consequences for individuals participating in YES Bank reconstruction scheme or in regularisation of unauthorised colonies in Delhi, the Income Tax Department has notified changes in laws. These changes intend to provide relief from application of some provisions of Section 56 of Income Tax Act. Now, due to amendments in the rule, the provision of this section will not be applicable in two conditions. First one is related with unquoted shares of a company and its subsidiary and the subsidiary of such subsidiary received by a shareholder, where National Company Law Tribunal (NCLT) has, on an application moved by the Central government has suspended the Board of Directors and appointed new directors. This one will be applicable in Yes Bank reconstruction Scheme and in the matter of IL&FS

NIIF-backed Eversource Capital is set to take over IL&FS Environmental Infrastructure & Services Limited and its subsidiaries, as the former has emerged the highest bidder for them. The deal is likely to reduce the debt of IL&FS Group by close to Rs 1,500 crore, which is the combined debt of entities under IL&FS' environment businesses.

The Supreme Court on Tuesday endorsed the Bombay High Court's decision to put on hold Its Judgment quashing prosecution launched by the Serious Fraud Investigation Office (SFIO) against former auditors of scam-tainted IL&FS—BSR & Associates (a KPMG-afflliated firm) and Deloitte Haskins and Sells. A bench of Chief Justice S A Bobde and Justices M R Shah and A S Bopanna entertained an appeal filed by the Centre challenging the Bombay HC's April 21 judgment quashing prosecution against the two auditing firms, which were earlier associated with IL&FS. The bench agreed to continue the HC's decision to stay its own Judgment for eight weeks and protected the auditors and their employees against any coercive action till further orders.

DEBT-RIDDEN and scandal-hit shadow banking group IL&FS has completed the sale of a 50 per cent stake in Gujarat International Finance Tec-City (GIFT City) to the Gujarat government. The deal will generate a paltry Rs 32 crore in equity value, but will result in a Rs 1,200 crore-odd deduction in IL&FS' consolidated debt. "This development represents another key milestone in the overall resolution for the IL&FS group under the new board. As part of the overall resolution plan to address a significant portion of the Group's debt, the sale of a number of other Group assets are currently in various stages of progress," the group said in a release on Monday.

DEBT-LADEN IL&FS on Monday said it has completed the sale of its 50% stake in Gujarat International Finance Tec-City (GIFT City) to the Gujarat government, generating over Rs 32 crore for its equity value and also reducing its consolidated debt by more than Rs 1,200 crore. The stake in GIFT City was bought by Gujarat Urban Development Company (GUDCL), on behalf of the Gujarat government.

Infrastructure Leasing and Financial Services (IL&FS), which has a bad debt burden of over Rs 1 trillion, on Monday completed the sale of its 50% stake in Gujarat International Finance Tec-City Co. Ltd (GIFTCL) to the Gujarat government, represented by the Gujarat Urban Development Co., or GUDCL. IL&FS has received Rs 32.71 crore as equity value for the shares. The sale will additionally reduce its consolidated debt by over Rs 1,230 crore, IL&FS said in a press release.

BARELY three months before IL&FS Group companies ran into trouble with the first default on August 28,2018, SRBC & Co LLC (an arm of Ernst and Young), auditor to IL&FS Transportation Networks India Limited (ITNL), decided to exclude notes on the company's ability to continue operations indefinitely, which in accounting language is referred to as a going concern principle. According to the Grant Thornton forensic audit report, SRBC & Co LLC had earlier taken a decision to make such qualifications in its audit report for 2017-18. But following a meeting with IL&FS and ITNL management, it did not include this in the Emphasis of Matter (EoM) paragraph. If an auditor decides it is important to draw the attention of the readers of financial statements to a particular item, it points out the issue in an EoM paragraph in the audit report.