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ABGSL loan-fraud: LIC grazed; ICICI, IDBI worst-hit in Rs 22,842 cr scam

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The sensational Rs 22,842 crore mega loan fraud allegedly perpetrated by the Gujarat-based ABG Shipyard Ltd (ABGSL) did not spare the IPO-bound Life Insurance Corporation of India (LIC) while the ICICI Bank and the IDBI Bank took the worst-hit among other government, private, foreign banks, NBFCs, as per official data.

The State Bank of India (SBI) which first reported the scam, has named ABG Shipyard Ltd, the corporate guarantor ABG Shipyard International Pvt Ltd, the company’s Chairman-cum-Managing Director Rishi Kamlesh Agarwal, Executive Director Santhanam Muthaswamy, Directors Sushil Kumar Agarwal, Ashwini Kumar (all from Mumbai), Ravi Vimal Nevetia (Pune), besides unknown persons and public servants.

However, the private ICICI Bank has been duped of a staggering Rs 7,089 crore – the highest – followed by the IDBI Bank Ltd, ranking second with the fraud amount of Rs 3,639 crore.

At the third position is the SBI which has admitted its exposure to the tune of Rs 2,925 crore.

The giant IPO bound LIC has also been scraped by Rs 136 crore – with the sole consolation being the entire amount is said to be ‘secured’.

The other notables defrauded are: Bank of Baroda (Rs 1,614-crore), EXIM Bank (Rs 1,327 crore), Punjab National Bank (Rs 1,244 crore), Indian Overseas Bank (Rs 1,228 crore).

There’s the international lender, Standard Chartered Bank (Rs 743 crore), Bank of India (Rs 719 crore), the erstwhile Oriental Bank of Commerce, now PNB (Rs 714 crore), SBI-Singapore (Rs 458 crore), the former Syndicate Bank, now Canara Bank (Rs 408 crore), the then Dena Bank, now Bank of Baroda (Rs 406 crore), and the defunct Andhra Bank, now Union Bank of India (Rs 350 crore).

There are entities like: IFCI Ltd (Rs 300 crore), SICOM Ltd(Rs 260 crore), Phoenix ARC Pvt Ltd (Rs 141 crore), State Bank of Mauritius – SBM Bank Ltd (Rs 125 crore), DCB Bank Ltd (Rs 106-crore).

In the sub Rs 100 crore group are: Punjab National Bank International Ltd (Rs 97 crore), Laxmi Vilas Bank Ltd (Rs 61 crore), Indian Bank Singapore (Rs 43 crore), Canara Bank (Rs 40 crore), Central Bank of India (Rs 39 crore), Punjab & Sind Bank (Rs 37 crore), and YES Bank (Rs 2 crore).

Highlighting the scam, the SBI, has pointed accusing fingers at the ABGSL and its top brass for committing the ‘criminal activities,’ but has given a clean chit to its own staff.

In the first complaint to the CBI way back on Aug 25, 2020, the SBI had stated: “The accused (ABGSL & its officials) colluded together in committing the criminal activities. However, the involvement of unknown persons and public servants may also be examined during investigations.”

It added: “The (SBI) Bank is not suspecting the involvement of its staff in the fraud perpetrated by the accused persons. The bank is not suspecting any common conspirator.”

To the CBI’s query on this aspect, the SBI said the Competent Authority had dealt with and closed the matter of ‘staff accountability’ in November 2018.

A Forensic Audit report (of Jan 18, 2019) for the period April 2012-July 2017) revealed how the ABGSL accused “colluded together and committed illegal activities, including diversion of funds, misappropriation, criminal breach of trust and for purposes other than for which the funds are released by the Bank.”

After around 20 months, the SBI lodged the complaint with the CBI, New Delhi, and the latter took cognisance 18 months later to file the FIR on February 7, 2022 – or, over three years after the SBI’s Forensic Audit first red-flagged the ABGSL mega-scam.

Business

Indian stock markets closed on account of Dussehra

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Indian stock markets will remain closed on Tuesday on account of Dussehra with trading suspended across major segments on the Bombay Stock Exchange (BSE) and National Stock Exchange (NSE).

Trading in equities, equity derivatives, securities lending and borrowing (SLB), currency derivatives and interest rate derivatives will remain closed for the day on both exchanges, according to them.

Notably, normal trading on NSE and BSE will resume on Wednesday.

However, the commodity derivatives segment will follow a different schedule. Trading will remain suspended during morning session from 9 am to 5 pm before resuming in evening. The session will continue till 11:30 pm or 11:55 pm depending on contract.

Multi Commodity Exchange of India (MCX) will not remain closed for entire day. Exchange will suspend trading during morning session from 9 am to 5 pm and reopen for evening session from 5 pm.

Investors will be able to trade commodities such as gold, silver, crude oil and base metals during evening session.

Meanwhile, National Commodity and Derivatives Exchange (NCDEX) will remain closed for both sessions on account of Dussehra.

Following Dussehra holiday, three regular trading holidays remain on NSE and BSE calendars for rest of 2026 — November 10, Tuesday, Diwali-Balipratipada; November 24, Tuesday, Prakash Gurpurb Sri Guru Nanak Dev; and December 25, Friday, Christmas.

In addition, exchanges have also scheduled a special Muhurat Trading session for November 8, 2026 on occasion of Diwali Laxmi Pujan. Timings for special session will be announced separately.

Notably, in the last session equity benchmarks closed in negative territory amid selling pressure in the banking and information technology (IT) sector stocks.

Sensex decreased over 850 points or 1 per cent to settle at 73,852.90 on Monday. Similarly, Nifty closed 257.20 points or 1.11 per cent lower at 22,888.95.

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Govt asks Meta to review Facebook and Instagram recommendation systems

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The Ministry of Electronics and Information Technology (MeitY) has asked technology giant firm Meta to review the content recommendation and ranking systems that power Facebook and Instagram, stepping up regulatory scrutiny of how social media algorithms amplify information in India, according to multiple reports.

In an advisory issued to the company, the ministry had asked Meta to ensure that its recommendation systems do not lead to the disproportionate exposure of users to a single or limited set of narratives and instead provide greater access to diverse, relevant and credible information, according to them.

The ministry also directed Meta to strengthen mechanisms for rapidly identifying, reviewing and escalating content that gains significant reach through recommendation systems when such material has the potential to contribute to public confusion, violence or disruption of public order.

Apart from that, the US-based company has been asked to implement the measures immediately and inform the government of the action taken.

The advisory specifically highlights photographs, videos and graphics related to ongoing public events where the authenticity, timing, location or surrounding circumstances may be unclear.

It calls for additional context where old or unrelated visuals are presented as current, where footage has been selectively edited or where unverified claims are made regarding emergencies, police action or other official measures.

Additionally, this marks the latest escalation in the government’s scrutiny of Meta’s moderation and recommendation systems.

Earlier in August, government officials questioned Meta executives over content recommendation algorithms, deepfakes, synthetic media and safeguards against unlawful content.

Meta has separately tightened content and advertising safeguards following concerns related to child sexual exploitation material.

The company said earlier this month it deployed new AI-driven advertising review systems and removed 5.3 million pieces of child sexual exploitation content in India during January-June 2026, with more than 98% detected proactively.

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Sensex, Nifty open flat amid mixed global cues

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Domestic equity benchmarks opened on a flat note on Monday tracking mixed global cues and momentum from last week’s gains.

Sensex opened at 74,849.30, up 120.03 points or 0.16 per cent, while Nifty began trading at 23,150.85, up 4.70 points or 0.02 per cent.

Sectorally, Nifty PSU Bank led gains and rose over 1 per cent, followed by Nifty Oil & Gas which surged 0.6 per cent.

In contrast, Nifty Private Bank, Nifty IT and Nifty Chemicals dropped up to 1 per cent.

Market experts said momentum from Nifty’s 2.8 per cent surge last week and good results from banking majors after better-than-expected IT earnings could keep the market resilient.

“However, escalation of tensions in Hormuz and consequent surge in Brent crude to $109 will act as a strong headwind,” according to them.

They further said that attractive large-cap valuations and rupee appreciation turned FII stance slightly positive, though unlikely to sustain at high crude prices. Large-caps outperforming mid and small-caps is likely to continue, with stock-specific action on Q2 results.

For Nifty, immediate support is placed at 22,950–23,000, while resistance is seen at 23,250–23,300, the experts said and added that RSI strengthened to 52.81 above its average of 34.70, while PCR stood at 1.08.

In the previous session on October 16, FIIs turned net buyers after 15 straight sessions of selling, buying equities worth about Rs 1,166 crore, while DIIs ended their 45-session buying streak with net sales of around Rs 3,661 crore.

On commodities, Brent crude traded nearly 2 per cent lower at around $107.76 per barrel, while US WTI declined about 1 per cent to $100.43.

In Asia, markets were mixed. Japan’s Nikkei traded 0.84 per cent lower, while Hong Kong’s Hang Seng and South Korea’s KOSPI rose up to 0.83 per cent. Indonesia’s Jakarta Composite fell over 5 per cent.

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