Banking, Financial and Economic Awareness of 03 December 2019

1. Flipkart shares sold to Walmart’s FIT Holdings SARL

• The shares were sold by Binny Bansal to Luxembourg-based FIT Holdings SARL, which chiefly controls Walmart’s businesses in India.
• In August 2018, Walmart had purchased a 77% controlling stake in Flipkart.
• Walmart:
  • Founder: Sam Walton
  • CEO: Doug McMillon
• Flipkart:
  • Founders: Sachin Bansal and Binny Bansal
  • CEO: Kalyan Krishnamurthy
  • Subsidiaries: Myntra, Jabong.com, PhonePe

2. Aditya Ghosh to be a member of OYO’s board of directors

• Aditya Ghosh will now become a member of OYO’s board of directors.
• He is currently India & South Asia CEO for OYO Hotels & Homes.
• Rohit Kapoor, the current CEO of real estate businesses of OYO, will be new India & South Asia CEO for OYO Hotels & Homes.
• Oyo Rooms (also known as Oyo Homes & Hotels):
  • It was founded in 2013.
  • Founder & CEO: Ritesh Agarwal

3. More than 3.38 lakh companies deregistered during last two financial years

• Ministry of Corporate Affairs has deregistered these companies because they failed to file their annual returns for two or more financial years continuously.
• Corporate Affairs Ministry's Registrar of Companies (RoCs) removes the names of companies from the Register of Companies.
• The names of companies, which have not filed annual returns for two or more financial years continuously and have not applied for dormant status under Companies Act, 2013 are removed by RoCs.

4. Shares of Karvy Stock Broking Limited (KSBL) returned to clients and it's trading license suspended

• National Securities Depository Limited (NSDL) has returned shares of Karvy Stock Broking Limited (KSBL) to clients and National Stock Exchange (NSE) has suspended its trading license.
• SEBI had found that Karvy was diverting client’s shares without their consent to raise funds and, therefore issued an order on November 22 to prohibit this.
• The lenders of Karvy have moved Securities and Appellate Tribunal (SAT) against the SEBI order.
• Karvy Stock Broking Limited (KSBL)
  • It is an Indian company that provides financial services.
  • Chairman: C. Parthasarathy.
• Securities and Appellate Tribunal (SAT):
  • It was established under the SEBI Act, 1992.
  • It hears appeals against orders passed by following regulatory bodies:
    1. Securities and Exchange Board of India(SEBI)
    2. Pension Fund Regulatory and Development Authority (PFRDA)
    3. Insurance Regulatory Development Authority of India (IRDAI)

5. HDFC Bank and Walmart India to jointly launch Credit cards

• These credit cards will be provided to members of Walmart India's Best Price Modern Wholesale stores.
• Through these cards, registered members of Walmart India will pay for their purchases and get incentives in the form of credit, rewards and cash backs.
• Walmart India:
  • It is a subsidiary of Walmart Inc.
  • Presently, it has 27 Best Price Modern Wholesale stores in nine states.
  • It will start a new store in Kurnool, Andhra Pradesh.
  • President and CEO: Krish Iyer.

6. Agreement between KVGB and Canara HSBC for bancassurance

• An agreement has been signed between KVGB and Canara HSBC for bancassurance.
• Under the agreement, the products of Canara HSBC OBC Life Insurance Co Ltd will be sold by Karnataka Vikas Grameen Bank (KVGB).
• Karnataka Vikas Grameen Bank (KVGB):
  • It is a Regional Rural Bank (RRB).
  • It was formed in 2005 as per Narasimhan Committee's recommendations.

7. IFC invests $200 million in Mahindra and Mahindra Financial Services

• IFC has funded $75 million from its own account in Mahindra and Mahindra Financial Services.
• It will mobilize additional $125 million as parallel loans.
• The investment will be used to provide funding for micro, small and medium enterprises (MSMEs) located in low-income States.
• Out of the total investment of $200 million, at least 50 % will be allocated to women-owned MSMEs.
• International Finance Corporation (IFC):
  • IFC is a member of the World Bank Group, which mainly focuses on private sector in developing countries.
  • Headquarters: Washington
  • CEO: Philippe Le Houérou