1. Almost Half Of TCS’ Minority Votes Back Cyrus Mistry
Cyrus Mistry has hailed the results of the TCS extraordinary general meeting (EGM) as a “moral victory”.
Almost 20% of shareholders of TCS, that account for more than 70% of non-promoter shareholders, supported Cyrus by voting against the resolution or abstained (expressing their disapproval of the promoter actions).Statement by the office of Cyrus Mistry
(Source: BloombergQuint)
2. Tatas Said to Raise Stake in Tata Motors Amid Leadership Battle
Tata Group increased its holdings in Tata Motors Ltd., the owner of Jaguar Land Rover, before a crucial shareholder meeting next week called to remove the automaker’s chairman Cyrus Mistry from its board, people with knowledge of the matter said.
Group holding company Tata Sons Ltd. boosted its stake by about 1.7% and is open to purchasing more equity before the 22 December extraordinary general meeting, people said, asking not to be identified as the information is private. The group held 33% in Tata Motors, of which Tata Sons owned 27% as of 30 September, according to stock exchange filings.
(Source: BloombergQuint)
3. Current Account Deficit Narrows with Import Plunge in Q2
With a sharp drop in imports, the country’s current account deficit (CAD) declined to $3.4 billion (0.6% of the gross domestic product) for the financial year’s second quarter ended September, from $8.5 billion (1.7% of GDP) in July-September 2015.
However, on a sequential basis, CAD was higher in Q2 than the $0.3-billion figure (0.1% of GDP) in April-June, according to Reserve Bank of India (RBI) data. The contraction over a year was primarily due to a lower trade deficit ($25.6 billion), brought about by a larger decline in merchandise imports, relative to exports.
(Source: Business Standard)
4. India Proposes Higher Tax Rates, Penalties to Plug Cash Ban Gaps
India’s government has proposed a higher income tax rate and a stringent penalty provision to plug loopholes in existing rules as it continues its campaign aimed at checking corruption and tax evasion.
The proposals, seeking to amend taxation laws, were presented to parliament by the Finance Minister Arun Jaitley on Monday. According to the legislation, those with unexplained wealth will be required to pay tax at 30% and a penalty at 10% of the undisclosed income, in addition to a surcharge of 33% of the tax amount.
From 9 November, Prime Minister Narendra Modi withdrew 500 and 1,000 rupee notes, taking out 86% of circulating currency. Following his sudden move, many have found illegal ways to convert the so-called black money into genuine wealth.
(Source: BloombergQuint)
5. Retail Inflation at Record Low in November
The Consumer Price Index (CPI)-based inflation fell to 3.63% in November — a record low in the new series — from 4.2% in October. The main reason for contraction in demand was demonetisation, said analysts.
In November last year, the number was quite high — 5.41%, a record then. The higher the number in the previous year, the lower the inflation looks in the current year. Technically, it is called the base effect. On 8 November this year, Prime Minister Narendra Modi announced the old series of Rs 500 and Rs 1,000 notes to be illegal tender. The withdrawal of high-value notes sucked out 86% value of the currency in the economy.
(Source: Business Standard)
6. Demonetisation Gains: Jaitley Hints at Lower Taxes at 'Some Stage'
Asserting that the 8 November demonetisation exercise of high value banknotes will bring ‘big’ benefits to the economy, Finance Minister Arun Jaitley on Tuesday held out a ray of hope for the struggling common man that tax rates could come down at “some stage” due to higher tax collections from digital payments.
Future transactions would be substantially digital and once they are substantially digital, they would come in the tax net. Therefore, the future taxation level would be much higher than what is currently being collected. This would also enable the government at some stage to make taxes more reasonable which will apply to both direct and indirect taxes.Arun Jaitley, Finance Minister
(Source: The Hindu Business Line)
7. De Beers Says Diamond Sales Hurt by India’s Money Crackdown
De Beers, the world’s biggest diamond producer, had its smallest sale of the stones so far this year as demand was hurt by India’s crackdown on black money.
The company sold $418 million worth of diamonds in its 10th cycle, compared with $476 million at its previous offering, according to a statement on Tuesday. For the same period last year, sales were $248 million.
(Source: BloombergQuint)
8. RBI Comes To Axis Bank’s Defense After Alleged Irregularities In Cash Exchange
In a rare communication pertaining to an individual bank, the Reserve Bank of India on Monday denied that it has initiated any action to cancel the banking licence of Axis Bank Ltd.
The denial, which followed a similar clarification issued by the bank on Monday morning, came in response to a report in a Hindi daily called ‘Dopahar’. The report suggested that the bank could potentially lose its banking licence following allegations of irregularities in exchange of old currency notes of Rs 500 and Rs 1000.
The Reserve Bank of India today clarified that it has not initiated any action to cancel the banking licence of Axis Bank in the wake of certain allegations about some serious irregularities in transactions relating to deposit/exchange of Specified Bank Notes in a few branches of the bank.Reserve Bank Of India Statement
(Source: BloombergQuint)
9. Yes Bank, Grofers Tie up to Deliver Cash at Doorstep
Extending facility to deliver cash at doorstep, Yes Bank has now tied-up with e-grocer Grofers allowing customers to get cash of up to Rs 2,000 when they order grocery online.
Grofers, the on-demand e-commerce mobile and web application, is opening up a new avenue for people to get cash delivered at home, by partnering with Yes Bank.Yes Bank Statement
The cash delivery service, open to all bank account holders started on Tuesday across Mumbai, Gurgaon and Bengaluru. Other cities will be added to the list gradually.
(Source: The Quint)