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Major Asian stock markets have opened the day on a negative note. Stock markets in China and Japan are trading lower by 0.8% and 0.7% respectively. Benchmark indices in the Europe and the US ended their previous session on a disappointing note. The rupee is trading at 67.34 per US$.
Indian stock markets have opened the day on a flattish note. The BSE Sensex is trading higher by 5 points (up 0.02%) and NSE Nifty is trading lower by 8 points (down 0.1%). Both, BSE Mid Cap and BSE Small Cap are trading marginally higher by 0.07% and 0.05% respectively.
As per an article in Mint, the government is aiming to implement the new bankruptcy law by the end of this fiscal year. The government has initiated the process to set up the required infrastructure to implement this law.
The process involves appointing or setting up of insolvency professionals, information utilities, tribunal and a bankruptcy regulator. Implementation will hold key importance in determining the success of this law.
The law once implemented will lead to speedy winding up of insolvent companies. Not only this, the bankruptcy law will also help the banks to curb their massive non-performing asset (NPA) problems.
Moreover, the law specifies a timeframe of 180 days to solve the matter, once the process initiates. The data provided by the World Bank states that it take more than four years to resolve an insolvency matter in India. The crisis of Kingfisher Airlines is one example. Whereas, in developed nations, it takes a year or less to resolve such matters. The law will considerably reduce this time gap and will also help India move up the Ease of Doing Business rankings.
The bankruptcy law is a big positive for the country. However, the speedy implementation of the same will be the key thing to watch out for going forward.
In another news update, National Green Tribunal (NGT) banned the registration of diesel vehicles of 2,000cc or above in Kerala. Further, the court also barred all diesel vehicles older than 10 years from plying on roads in major cities of Kerala.
Earlier in the year, the Supreme Court too had refused to lift the ban on diesel vehicles above 2,000cc in the National Capital Region (NCR). Moreover, there is a fear among auto-majors that similar action will be taken in other parts of the country.
However, there is no proof as yet that the banning of diesel vehicle will help fix the air quality in the cities. The order is a setback for the automobile companies, especially which are catering to categories above 2000 cc.
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