It is duty of legislature: SC turns down Subramanian Swamy’s plea for guidelines for NPAs

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New Delhi, Oct 7 | The Supreme Court on Thursday declined to entertain a plea by MP Subramanian Swamy seeking framing of guidelines to deal with the menace of NPA in the banking sector, saying, “It is the duty of the legislature” and a policy matter, which should be decided by the government and RBI.

However, the top court allowed Swamy to make a representation before the RBI.

A bench headed by Justice D.Y. Chandrachud and comprising Justices Vikram Nath and B.V. Nagarathna told Swamy, who argued in-person, “How do we frame guidelines so that non-performing assets (NPAs) do not occur? It’s for the legislature”.

Swamy contended that his plea deals with cases and methods by which a large number of NPAs do not occur again and added that this will be beneficial for everybody. He added that the court can set up a committee in the matter, and insisted “we can make out a case.”

Justice Nath said the RBI and finance ministry have been issuing guidelines, and policies are framed so that NPAs do not occur.

“There is no need for us to interfere in all of this,” the bench noted.

Swamy argued that the RBI is maintaining extraordinary secrecy in connection with information on NPAs, and added that when a bank closes down, people run from pillar to post for their funds.

He further contended that judgments referred in the petition along with others, which states how courts haven’t taken a hard-line position, that it cannot enter this domain.

Justice Chandrachud said: “We can say ultimately RBI can look at your material and take a decision at the policy level. But constituting a committee etc, cannot happen”.

Swamy’s plea stated that it is appropriate for this court to constitute an expert committee for necessary guidelines. The bench said: “In the matter of this nature the reliefs which have been sought are core issues of policy which pertain to the domain of expert bodies such as RBI”.

The bench added that it is not possible for the court to tread into policy domain.

The bench, in its order, said: “We leave it open to the petitioner to submit a representation or the plea itself as a representation to RBI, so that a view can be taken so that any guidelines be duly modified to address the grievances. Plea is accordingly disposed of.”

Source: IANS

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Share Market Closing Bell: Nifty ends below 16,100, Sensex falls 303 pts

Share Market Closing Bell: Nifty ends below 16,100, Sensex falls 303 pts

Dalal Street found no relief with incessant sell off during the month. Nifty traded on a bearish note and ended at 16025.80 with loss of 99.35 points or 0.62 percent following weak global cues on Wednesday. While Banknifty closed at 34339.50 on the higher side with marginal gain of 49.35 points.

bhaskarlive market closing

The weakness in US stocks is playing out globally with signs of higher inflation, which has spoiled investors’ appetite for the Indian market as well. Rising India VIX to 25.28 has led Indices to big intraday swings on both sides. Sectorally maximum sectors closed on the negative side as Nifty IT and Nifty Media sheds more than 3 percent each. While Nifty Financial Services ended on a positive side gaining 0.68 percent.

In nifty stocks, NTPC, HDFCLIFE, SBILIFE were the top gainers while ASIANPAINT, ADANIPORT and TECHM were the prime laggards. Coming to the OI Data, on the call side highest OI witnessed at 16200 followed by 16300 strike price while on the put side, the highest OI was at 15800 strike price. Technically, Nifty has formed three black crow patterns in the daily chart suggesting bearishness would remain intact. We expect a rise in volatility as well on monthly expiry day.

Riding against the trend may not be beneficial for short term traders. All major moving averages are lying above 16300 levels. Indicators such as MACD and RSI are still struggling to overcome the oversold zone in the daily time frame. Overall, Nifty is having support at 15800 mark while on the upside 16300 may act as an immediate resistance for monthly expiry. While Banknifty has support around 33500 while resistance is placed at 35200 on the daily chart.

Om Mehra
Research Associate
Choice Broking

Source: Choice India

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