Nifty PSU Bank remained the top-performing index since Friday morning anticipating the Supreme Court’s ruling on Essar Steel-Arcelor Mittal case.
The Nifty PSU Bank index was the top-performing index since Friday morning anticipating the Supreme Court’s ruling on Essar Steel-Arcelor Mittal case. The index rallied nearly 5 percent after the SC set aside the NCLAT's ruling that provided for equal distribution between financial and operational creditors.
At 10:55 am, the Nifty PSU Bank was trading 4.62 percent higher with Central Bank as its frontrunner, surging 11 percent intraday on the NSE.
Meanwhile, Bank of India, Syndicate Bank, Canara Bank, and PNB climbed 7.54 percent, 7.17 percent, and 7.2 percent and 5.80 percent intraday respectively.
The largest exposure given to Essar Steel is by State Bank of India, and its share price on intraday basis was trading 5.32 percent at Rs 322.30.
In its ruling, the Supreme Court said, “The ultimate discretion on distribution is with CoC (Committee of Creditors). NCLT cannot interfere with the commercial decisions taken by the CoC. If NCLT finds legal parameters not met then it can send back to CoC.”
Essar Steel-ArcelorMittal Case: Supreme Court sets aside NCLAT judgment
The apex court also relaxed the timeline of 330 days prescribed in insolvency and Bankruptcy Code (IBC). It opened to NCLAT the opportunity to extend the timeline if required and set aside the NCLAT judgment of equal distribution of amount between financial and operational creditors.
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First Published: IST