Latest news with #PTCs
Time of India
6 hours ago
- Business
- Time of India
Credit rating firms seek govt intervention over regulatory void on ₹1 L cr unlisted debt
Mumbai: Credit rating companies have sought the intervention of ministries of corporate affairs and finance amid an uncertainty over the future ratings of more ₹1 lakh crore of unlisted securities . The rating of these instruments, like corporate bonds and securitised papers, which comprise an integral part of the financial market for debts, has fallen between the cracks of two regulatory authorities. The ambiguity stems from the fact that the Securities and Exchange Board of India (Sebi), the primary regulator for the credit rating agencies (CRAs), has jurisdiction over only listed securities while unlisted debts raised by corporates, including company fixed deposits, are outside the domain of the Reserve Bank of India (RBI). SEBI had last year told rating firms to get a non-objection certificate from RBI for rating the unlisted papers. Since then, the central bank has allowed CRAs to rate certificates of deposits (CDs) - instruments floated by banks to raise short-term funds. But, there is no clarity on ratings of securitised papers like pass through certificates (PTCs) and unlisted corporate bonds . This is where CRAs want the ministries to step in. Issued against a basket of loans and the interest flows from them, PTCs enable lenders like non-bank finance companies as well as banks to convert relatively illiquid loans into marketable papers and create headroom to lend more while letting investors - like corporate treasuries, financial institutions, and fund houses - hold a diversified pool of assets and sometimes generate a higher return. A predominant portion of the outstanding PTCs are unlisted. Under the circumstances, the CRAs are awaiting a signal from the corporate affairs ministry that they can follow the SEBI guidelines on listed securities while carrying out the rating of unlisted securities. Thus, CRAs want to know whether they can continue to use the same rules of default recognition, application of grading scale, disclosures, and issue of press release for unlisted papers as well. The ministry is yet to respond to the letter from the rating industry body. With New Delhi is yet to give the go-ahead, some of the CRAs, in the course of various meetings, have sensitised issuers of unlisted securities as well as some of the investors that ratings of these instruments may have to be withdrawn in the absence of any clarity from the government or regulators. "More so, with SEBI reminding CRAs a few months ago that the issue needs to be sorted out. This could well be a nudge from SEBI to list more securities and thereby promote transparency. However, many issuers refrain from listing either to avoid the compliance and reporting that come with it or strike bilateral deals with investors and do not feel the urgency to list," said an industry official. Many institutional investors may keep away from unrated securities, including banks who save on capital as unrated loans and investments carry higher risk weights. But while there are takers for unrated instruments, rating helps in investment decision making by capturing the risk and pricing of an instrument. "Some are expecting RBI to clear the air for PTCs which are mostly issued by NBFCs (entities regulated by RBI). If RBI gives a green signal for PTCs, then the issue related to rating of unlisted corporate bonds has to be resolved. Company FDs are a small market," said another official. Earnings from ratings of unlisted papers, said an analyst, is a small slice of CRAs' earnings, but a lack of rating can have some implications for the wholesale debt market. For instance, CRAs' periodic reports on the PTC market are closely tracked by investors. "There are adequate regulations on investments in these unlisted securities but there is not enough regulation about their rating. SEBI understandably wants rating of any instrument to be cleared by some authority. It doesn't want to be blamed for a big loss or default which inevitably raises questions on ratings," said the person. "The market too is evolving. The assets of Alternative investment funds have surged in the last 5 to 6 years and many of these funds put money in unlisted papers," she said. Earlier, CRAs could choose on what it would rate, but those days are long over with the role and rules agencies coming under scrutiny since the IL&FS default in 2018.
Miami Herald
5 days ago
- Business
- Miami Herald
Solar stocks just got shook up from Washington
The solar industry has been trading jabs all year, but Washington may have delivered the knockout punch. Consequently, solar stocks have taken their investors on a steep slide, with the trend pointing mostly south. Don't miss the move: Subscribe to TheStreet's free daily newsletter For the better part of the year, Washington's response to any clean energy talk has been lukewarm (at best). Unsurprisingly, the ride has been rough, with bankruptcies and brutal sell-offs. Funny how the "Big Beautiful" bill could throw a wrench in what otherwise was a promising no secret that the solar industry, in general, relies on fragile economics. Related: Enphase Energy (ENPH) Downgraded From Hold to Sell Tax credits aren't just niceties; they're essentially the linchpins underpinning the entire solar value chain. Take them out of the equation, and everyone from rooftop solar financiers to utility suppliers loses demand, cost advantages, and bidding power. For residential solar businesses like Enphase (ENPH) and Sunrun (RUN) , the 30% federal Investment Tax Credit, or ITC, makes its systems affordable enough to spark demand. Additionally, it boosts fuel install volumes, software fees for Enphase, and higher leasing cash flows for Sunrun. Strip that away, and its returns shrink dramatically, as do the growth stories. Similarly, on the utility side, First Solar (FSLR) leans on Production Tax Credits, or PTCs, and transferable ITCs to score big utility-scale deals. PTCs boost returns over a ten-year period, while transferable credits help developers unlock upfront cash flow. That combo fattens the margins on its thin-film tech and makes contracts much more attractive. That said, it's worth understanding how these solar bellwethers actually make money because it's not always straightforward. Enphase sells microinverters that sit under rooftop panels, turning sunlight into usable home power. Add batteries and monitoring software, and it's a hardware-plus-subscription play. Sunrun takes a different approach, think of it as a solar utility. It leases panels and batteries to homeowners, collecting monthly payments while handling all the upkeep. Nevertheless, it's a lot more sensitive to interest rates and policy shifts. First Solar, on the flipside, plays at the utility level. It builds massive solar farms with its low-cost, U.S.-made thin-film panels while profiting from one-time sales and ongoing maintenance deals. More On Solar: First Solar Stock Falls. Wall Street Is Split on Fate of Renewables. Macy's is selling a 'well-designed' $399 solar panel for $208 that shoppers say is easy to set up Amazon is selling 'exceptional' $70 outdoor solar lights for just $35, and shoppers say they're 'the best' What ties it all together? Tax credits. ITCs and PTCs help drive demand, improve margins, and unlock greater financing. Solar stocks have nosedived, post-market Monday, June 27, and regular trading Tuesday, June 18, after Senate Republicans proposed changes to President Trump's tax and spending bill. The amendments threaten to phase out solar and wind tax credits fully by 2028. Related: Sunrun (RUN) Stock Climbs, Goldman Upgrades The shift will likely send capital fleeing from solar to sectors with longer government backing. Even First Solar stock, arguably more protected due to its U.S. footprint, has taken a massive beating. Needless to say, the timing couldn't have been any worse for solar stocks. Sunnova's recent Chapter 11 filing landed right when the residential solar space wobbled. With a $9–11 billion debt load and just $13.5 million in cash, the Houston-based installer laid off 700 employees and scrambled to sell assets for some relief. Sunnova wasn't alone, though, with Solar Mosaic also filing for bankruptcy, exposing cracks in the solar model. Then came California's controversial AB 942 bill, gutting solar resale economics. The bill forces homes with solar to switch to the NEM 3.0 net metering plan, slashing credit payouts by 80% whenever ownership changes. Hence, it's a one-two punch for an industry already on its knees. At the time of writing, the Invesco Solar ETF (TAN) is down 10% in regular trading on Tuesday, breaking below the $32 level and extending its six-month slide. Enphase has nosedived 26% so far today, bringing its losses to over 52% in six months. First Solar shed 18%, down more than 24% over the 6-month period. SunRun fared the worst, crashing 42% to $5.63 and flirting with penny stock territory. Moreover, it's now down over 54% in just a month. Related: First Solar (FSLR) Stock Slumps, Goldman Downgrades The Arena Media Brands, LLC THESTREET is a registered trademark of TheStreet, Inc.
India Today
30-05-2025
- Automotive
- India Today
Gensol misses May payment for loan on BluSmart cabs: Report
Gensol Engineering, promoted by two of the founders of electric mobility firm BluSmart, has missed a payment of about Rs 4 crore to its pass-through certificate (PTC) holders this month, reported The Economic Times (ET). The last successful repayment was made in April, said people familiar with the matter. Gensol had raised funds by issuing PTCs, which were offered to retail investors on the online platform Grip Invest. PTCs are loans given in exchange for an underlying asset, in this case, vehicles that run on the BluSmart loans were to be repaid using the cash earned by these electric cabs. But after BluSmart shut down its cab services and ongoing talks with Uber and other fleet operators failed to move ahead, repayments became Invest founder Nikhil Aggarwal confirmed the missed payment as quoted in the report. He said Gensol had raised a total of Rs 5.6 crore through the PTCs. So far, 56% of the principal has been repaid, but an amount of Rs 4.04 crore is still loans were secured against 76 electric vehicles. These vehicles are no longer in operation, as BluSmart has stopped its May 29, the Delhi High Court passed a final order, giving possession of these vehicles to the lessor, Vriksh Advisors, a subsidiary of Grip Invest. The court also allowed Vriksh to sell, operate or lease the vehicles. Aggarwal told ET that the vehicles have been inspected and found to be in good said Vriksh Advisors is now working on setting up charging stations and is in talks with fleet operators to re-deploy these vehicles on ride-sharing an industry insider pointed out that even if the vehicles begin running again, the terms of the original PTC agreement may change. He explained that revenues, commissions and pricing would differ on other platforms, and so the repayment plan would also need to be told ET that Vriksh Advisors is trying to find the best buyer or operator for the vehicles, in the hope that proceeds from the lease or sale will help repay the pending loan amounts.'People invested in BluSmart bonds and PTCs because they believed in the cab service, which had a good brand image, and they were also drawn by the high returns,' one investor told to a credit rating report issued by Care Edge Ratings on Tuesday, the bonds were issued in 2023, were due to mature in 2027, and offered a return of 13.6%.ET had earlier reported on April 21 that many BluSmart investors were expecting defaults on the bonds they had purchased through platforms like Yubi and Centricity. BluSmart had issued over Rs 100 crore worth of bonds over the past year. Of this, investors said that more than Rs 80 crore worth of non-convertible debentures (NCDs) are still due for troubles come as Gensol Engineering's promoters, brothers Anmol Singh Jaggi and Puneet Singh Jaggi, are under investigation. They are accused of diverting company funds for personal use. BluSmart has already stopped operations, and Gensol's bank accounts have been frozen following orders from the National Company Law Tribunal (NCLT) in Indian Renewable Energy Development Agency (Ireda), a government-run lender, said last week that it has moved the Debt Recovery Tribunal in Delhi against Gensol Engineering and its arm Gensol EV Lease, over a default of about Rs 729 crore. Ireda had earlier also filed an insolvency case against crisis began after market regulator Sebi launched a probe into Gensol Engineering following a stock manipulation complaint it received in June 2024. Sebi's investigation revealed that the Jaggi brothers had allegedly used loans meant for buying electric vehicles for personal In advertisement
Time of India
30-05-2025
- Automotive
- Time of India
Gensol defaults on BluSmart-linked bond repayment for May
Gensol Engineering , promoted by the founders of electric mobility firm BluSmart , has defaulted on payment of around ₹4 crore to its pass-through certificates ( PTCs ) holders this month. The last repayment that was processed successfully was in April, people aware of the matter said. The troubled solar engineering, procurement and construction company had raised these funds by issuing PTCs, which were distributed to retail investors via online platform Grip Invest. PTCs are usually loans that are raised in lieu of any underlying asset. In this case, the company had offered vehicles plied on the BluSmart platform as collateral for these loans. As the vehicles plied and generated revenue, repayments were processed out of that cash flow. Now, as the BluSmart cab service stopped and deal talks with ride hailing platform Uber and fleet operators are yet to come to fruition, the loan repayment has become uncertain. Confirming the development, Grip Invest founder Nikhil Agarwal said that while the total issue size was ₹5.6 crore, 56per cent of the principal amount has been repaid by Gensol and currently the outstanding is ₹4.04 crore. These loans were secured against 76 vehicles that were previously run on the BluSmart platform. On May 29, the Delhi High Court passed a final order and gave Vriksh Advisors, the lessor, the right to operate, sell or lease the assets. 'All vehicles are now in the possession of the lessor. The same have been inspected and found to be in good working order,' Aggarwal told ET. Vriksh Advisors is a subsidiary of Grip Invest. Aggarwal said the company has taken possession of the vehicles, inspected them, created charging facilities and is now in talks with fleet operators looking to deploy these vehicles on ride sharing platforms. A senior industry insider, however, said the repayment structure for PTCs might change even if the vehicles start running. 'Commissions, revenues, pricing and all the other factors would not remain the same across all platforms, so those things will need to be considered before starting the repayment schedule,' he pointed out. Vriksh Advisors is in the process of finding the best suitable buyer of the assets, so they can be used to repay the loans taken against them, people cited above said. 'People invested in BluSmart bonds and PTCs thinking of the cab services, which had a big brand value, and they were also attracted to the high returns offered by these instruments,' said an investor who has exposure to BluSmart bonds. According to a credit rating document issued by Care Edge Ratings on Tuesday, these bonds issued in 2023 were due to mature in 2027 and offered a coupon rate of 13.6per cent . ET had reported on April 21 that BluSmart investors were expecting major defaults on bonds they had purchased via platforms like Yubi, Centricity and others. The ride-hailing company had issued more than ₹100 crore worth of bonds over the last one year. The investor quoted above said that more than ₹80 crore of NCDs are due for repayments from BluSmart. This comes at a time when the Gensol promoters Anmol Singh Jaggi and his brother Puneet Singh Jaggi are under investigation for siphoning off funds from the company for personal consumption. While BluSmart has halted its operations, Gensol's bank accounts have been frozen under directives from the National Company Law Tribunal, Ahmedabad. State-run Indian Renewable Energy Development Agency (Ireda) last week said it has moved the Debts Recovery Tribunal, Delhi, against Gensol Engineering and its arm Gensol EV Lease, claiming a default of about ₹729 crore. Ireda had earlier filed an insolvency petition against Gensol. The entire saga started after market regulator Sebi kicked off an investigation into Gensol Engineering following a stock manipulation complaint it received in June 2024. Its findings showed that the Jaggi brothers diverted loans Gensol took to procure electric vehicles for personal use.
Time of India
24-05-2025
- General
- Time of India
Display details of fee fixation panels: Edu dept to pvt schools
1 2 Ranchi: The district education department has asked all private schools in the city to prominently display the names and contact details of their fee fixation committees (FFC) and parent-teacher committees (PTC) on their premises. Schools have been told complete this display work during the ongoing summer vacation. This directive follows earlier instructions to all private schools to constitute both the FFCs and PTCs. Department officials said only 50 out of 150 schools have complied so far. "However, many of these schools did not make the details of the committees public, which is required," Badal Raj, the district superintendent of education (DSE), said. Raj said, "The step aims to empower parents by ensuring transparency in school administration, especially concerning fee structures. If a school increases its fees, parents can now raise concerns directly with the committee members. In addition to tuition fee hikes, parents can also file complaints related to increased charges in other categories." To address such issues, a district-level committee and a dedicated monitoring cell have been set up to act on any valid complaint. These measures align with the provisions of the Jharkhand Education Tribunal (Amendment) Act of 2017, which calls for the formation of fee-related committees at both the school and district levels to prevent irregularities. The department clarified that no private school can increase its fees, whether below or above 10%, without consensus between the FFCs and PTCs. If a school seeks to increase fees beyond 10 percent, it must obtain prior approval from the district-level committee. Additionally, a reminder will be issued to schools that have not yet formed the committees. If they fail to comply, a show-cause notice will be served to them. Principal of Kairali School, Rajesh Pillai, said, "We are using the summer vacation period to put up the committee names and contact numbers. The information will be displayed before the schools reopen." Get the latest lifestyle updates on Times of India, along with Brother's Day wishes , messages and quotes !
