Softbank looks to pick up stake in the proposed Vodafone-Idea combine
Masayoshi Son’s Softbank, which is about to close its mega $100 billion Vision Fund, could emerge as a new investor in the proposed Idea-Vodafone combine, according to four people aware of the development. Softbank is learnt to be in talks with Vodafone Plc to buy a minority stake in its Indian unit which is likely to be merged with Idea Cellular. While discussions are still on and there is no guarantee about the outcome, people familiar with the situation say it is possible that the Japanese investor may end up with 15-20 % in the merged entity.
Finance Ministry to finalise capital infusion of Rs 8K-cr within 15 days
The Finance Ministry is giving final touches to infusing around Rs 8,000 crore in public sector banks (PSBs) as part of its second and final tranche for the current fiscal, 2015-16. The second round of capital infusion is almost ready and in the next few days it should go to Finance Minister Arun Jaitley for approval, sources said. The entire process should be over within a fortnight and then the respective bank would start receiving funds, sources added.
Negative impact of note ban on economy reversing: S&P
The negative impact of demonetisation on economic activity has begun to reverse, S&P Global Ratings said. In its APAC Economic Snapshots, S&P also said that fiscal deficit target of 3.2 percent for the next financial year announced in Budget is “reasonably ambitious”. “The negative effects of India’s demonetisation on economic activity have begun to reverse. However, it is still far from returning to pre-November 2016 trends,” it said. India had on November 8, 2016, announced demonetisation of 500 and 1,000 rupee notes. The US-based agency had in December said note ban will have a “higher disruptive impact” on informal, rural, and cash-based segments of the economy.
With Jio turning pay, rationality returning to telecom sector: Nitin Soni, Fitch Ratings
In a chat with ET Now, Nitin Soni, Fitch Ratings, says as far as the monetisation of data is concerned, it is a positive move for the industry that Jio is willing to protect the ARPU at Rs 300. Edited excerpts: Yesterday, Mukesh Ambani outlined the plans in store for core telecom earning. What impact could have on other telecos as well? The plan which has been announced by Reliance Jio is that they are protecting their average revenue per user for about Rs 300 which is more than the industry ARPU right now. Industry ARPU is about Rs 200 for most of the incumbents.
Demonetisation to pull down India GDP growth rate to 6%: IMF
India’s demonetisation drive may have a larger-than-anticipated negative impact on the economy in the near term through weaker private consumption, but will likely deliver positive benefits in the medium-term by curbing tax evasion, the International Monetary Fund (IMF) said on Wednesday. IMF, in a report on so-called Article 4 consultation under which it holds annual discussions on policy matters with member-countries, said India’s economic growth is expected to slow to about 6% in the second half (October-March) of fiscal 2016-17, before gradually rebounding in the course of 2017-18. In the first half (April-September) of FY2016-17, the economy grew at 7.2%.
Sebi issues consultation paper to review stock exchanges norms
The Securities and Exchange Board of India (Sebi) on Wednesday has issued a consultation paper to review regulations for stock exchanges, clearing corporations and depositories. Capital market regulator has sought comments till March 31 in this regard. The proposal is in line with recommendations of a committee headed by Bimal Jalan, former Governor of the Reserve Bank of India (RBI). The committee had recommended that Sebi should review the operations of the market infrastructure institution (MII) after every five years on account of the rapid evolution of the stock market. Other factors underlined by the committee included technological developments, introduction of new products, global integration and growth of financial markets, trade and capital flows.
Finmin questions Sebi on NSE co-location audit
The Finance Ministry has questioned the Securities and Exchange Board of India (Sebi) about its move to direct the National Stock Exchange (NSE) to conduct a forensic audit on itself. In an October 2016 letter, North Block queried the market regulator why the investigation on the allegation against the exchange’s co-location facility was instead not done under its own supervision. “The Finance Ministry has asked Sebi to elaborate on the rationale of advice of NSE to conduct forensic investigation on its lapses rather than conducting it through its technical advisory committee (TAC),” Sebi said in a note presented to its board members.
NPPA warns stent makers, importers against shortage
Drug pricing regulator NPPA has asked stent makers and importers to ensure that production as well as supply of stents remains at the level that was there before the introduction of price cap. Warning of action in case of shortage, the National Pharmaceutical Pricing Authority (NPPA) said all manufacturers and importers were under “legal obligation to maintain smooth production and supply of coronary stents of all brands which were available in the country before price cap”. If any specific complaint is received, along with proof of withdrawal, action will be taken along with prosecution, the notification said.
TCS to remain net cash positive despite Rs16K cr buyback: S&P
Ratings agency S&P expects IT services major TCS to remain net cash positive even if its Rs 16,000 crore-buyback offer gets fully subscribed. The ratings and outlook on Tata Consultancy Services are not affected by the company’s Rs 16,000 crore offer for share repurchases, Standard & Poor’s said in a statement. Earlier this week, TCS announced a Rs 16,000-crore share buyback biggest in the Indian capital market, as it looks to return surplus cash to shareholders.
Bharat Electronics Share Sale Subscribed 2 Times on First Day
The stake sale in state-owned aerospace and defence company Bharat Electronics Ltd. saw strong demand from institutional buyers, who placed bids worth over Rs 3,100 crore on the first day of the offer on Wednesday. The share sale attracted bids for over 2.09 crore shares as against 89.34 lakh shares offered to institutional investors, garnering subscription of 2.34 times, according to the stock exchange data. Most of the bids came at Rs 1,500.05 per share, higher than the floor or minimum bid price of Rs 1,498. At this price, subscription of over 2.09 crore shares totalled over Rs 3,100 crore. The government is selling 1.11 crore shares or 5 percent stake in Bharat Electronics through offer for sale (OFS) route. The share sale would fetch Rs 1,600 crore to the exchequer.
India needs to create ‘bad bank’ quickly – Arvind Subramanian
India’s finance ministry on Wednesday backed a call by the Reserve Bank of India to set up an institution similar to a “bad bank,” saying urgency was needed to address troubled loans weighing on the banking sector that were hobbling investment and growth. Arvind Subramanian, the finance ministry’s chief economic adviser, said that delaying a cleanup would further reduce private-sector investment and make the problem worse for Asia’s third-largest economy. His comments backed forthright views expressed in a speech on Tuesday by Viral Acharya, the new deputy governor of the RBI, who said India’s failure to tackle bad loans was the result of a piecemeal approach that had given “all discretion” to lenders.
NSE, BSE seek clarification from Infosys on whistleblower emails on Panaya
The National Stock Exchange of India Ltd and BSE Ltd have sought clarifications from Infosys Ltd on claims made in two anonymous emails against management and board of the company, which said it had started a probe into the allegations. For now, Infosys management, led by chief executive officer Vishal Sikka, have strongly denied any charges of impropriety, and termed the charges malicious and aimed at tarnishing the image of India’s second largest software company and its management.
Source: Livemint
PM Narendra Modi calls for accountability, efficiency to improve telecom services
Clearly unhappy over poor telecom services, Prime Minister Narendra Modi today pressed for efficiency and accountability at all levels to bring about a visible change in the situation at the earliest. He reviewed the progress towards handling and resolution of grievances related to the telecom sector while chairing a meeting of Pro-Active Governance and Timely Implementation (PRAGATI), an ICT-based multi-modal platform for interacting with various departments and states. “Most of the grievances are related to issues of poor service quality, connectivity and non-functioning of landline connections,” a PMO statement said. During the meeting, Secretary, Department of Telecom, outlined the steps taken so far in this regard, it said.
Realtors express concern on Supreme Court ruling on consumers vs builders disputes
Realtors body CREDAI today expressed concern that the Supreme Court judgement that flat buyers can jointly approach the apex consumer commission NCDRC will open the floodgates of legal cases against builders. The Supreme Court has upheld the order of the National Consumer Disputes Redressal Commission (NCDRC) that flat buyers can jointly approach it in case of a dispute with a builder. According to the Consumer Protection Act, if the cost involved is less than Rs 1 crore, the complainant has to first file the plea at the district consumer forum. Commenting on the Supreme Court judgement regarding the Rs 1 crore criteria for the plea in NCDRC, Credai President Getamber Anand said.
European Union says it is open to accommodate more Indian skilled professionals
The European Union said it is ready to accommodate more Indian IT professionals and denounced any form of protectionism in global trade, amid anxiety in India over the Trump administration’s possible clampdown on H1B visa. Pushing for deeper trade ties with India, a delegation of European Parliament’s Committee on Foreign Affairs also expressed “regret” over failure by both sides to resume the stalled dialogue to firm the long-pending EU-India trade and investment pact.
Source: India Times
No plan to re-introduce Rs. 1,000 note: Shaktikanta Das
There is no plan to re-introduce the Rs. 1,000 note and the focus is on increasing the production and supply of Rs. 500 and lower denomination currency, Economic Affairs Secretary Shaktikanta Das tweeted on Wednesday. “Complaints of cash out in ATMs being addressed. Request everyone to draw the cash they actually require. Overdrawal by some deprives others,” he said in another tweet. Last week, Finance Minister Arun Jaitley said the remonetisation situation with regard to replenishing the scrapped currency was “almost normal” now and the Reserve Bank of India was monitoring the supply on a daily basis.
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