QBiz: Govt Plans Rs 21,000 Cr Extra Spending; Karvy Delays Payouts

Catch the latest business news for the day.

4 min read
Image of Finance Minister Nirmala Sitharaman used for representational purposes.

1. Govt Plans Rs 21,000 Crore Extra Spending

A day after indicating the possibility of a fiscal slippage, Finance Minister Nirmala Sitharaman on Thursday sought parliamentary approval for gross additional expenditure of Rs 21,246 crore, part of which will be used to recapitalise IDBI Bank Ltd and three state-run insurers.

The government will use the funds to infuse Rs 4,557 crore into IDBI Bank and Rs 2,500 crore into state-run insurance companies through recapitalisation bonds. This will help IDBI Bank, now controlled by state-owned Life Insurance Corporation of India, to come out of the restrictive prompt corrective action framework.

(Source: Livemint)


2. Karvy Delays Payouts to 95,000 Retail Customers

Around 95,000 clients of Karvy Stock broking Ltd, almost all of them retail investors, are staring at uncertainty as they wait to regain access to their shares and receive payouts from the broking firm.

While customers can typically change their broker by opening an account with a rival brokerage by obtaining a client master report and initiating a closure-cum-transfer request, several of Karvy’s clients have alleged that the firm is deliberately delaying payouts and preventing them from moving to another broking firm.

(Source: Livemint)

3. At Rs 9,500 Crore, Airtel’s Bid Is the Highest Offer for Rcom Assets

Bharti Airtel Ltd has offered the highest upfront cash settlement among four bidders for Reliance Communications Ltd’s assets, which are currently under insolvency proceedings, said two people directly aware of the matter.

Bharti Airtel has offered about Rs 9,500 crore to acquire the assets that include spectrum, telecom towers, fibre, data centres and real estate, the people cited above said on condition of anonymity. Upfront cash is often a key factor that creditors evaluate while deciding on a winning bidder.

(Source: Livemint)


4. Airlines Face More Turbulence as Fares Plunge in Peak Month

Airfares on India’s most popular routes have nosedived over the past month when demand is usually the strongest during a year in a worrying sign that one of the roughest stretches for the domestic aviation industry may not witness a quick turnaround, industry executives said on Thursday.

Average ticket prices between 25 October- 25 November for bookings made within a two-week window on several routes are 25 percent to 35 percent lower compared to the year-ago period, according to data from online travel company Cleartrip. Traditionally, bookings made in a two-week span prior to a flight, command the highest rates.

(Source: Livemint)

5. GST E-Invoicing Must for Businesses With Rs 100 Cr Turnover From 1 April

From 1 April next year, electronic invoicing (e-invoicing) will be mandatory for businesses with a turnover of Rs 100 crore, the government said on Thursday.

This will help curb goods and services tax (GST) evasion and make compliance easier.

The e-invoicing system will be rolled out in a phased manner from 1 January on a voluntary and trial basis, beginning with firms with a turnover of Rs 500 crore, while businesses with a turnover of Rs 100 crore or more will be required to do it from 1 February.

(Source: Business Standard)


6. After $13-Bn AGR Hit, Future of India's Tattered Telecom Hinges on Govt Aid

The Indian government's win of a long-contested dispute over telecom fees could end up a Pyrrhic victory, as the billions of dollars in levies now owed are seen as burdens too big to bear for two of the country's three main carriers.

Vodafone Idea Ltd, India's biggest carrier by user numbers, is widely regarded as most on the ropes, with parent Vodafone Group calling the situation "critical" after the unit was saddled with about $3.9 billion in fresh payments due.

(Source: Business Standard)

7. RIL Creates History, Becomes First Indian Firm to Hit Rs 10-Trn M-Cap Mark

Mukesh Ambani-led Reliance Industries’ (RIL’s) market value on Thursday surpassed the Rs 10-trillion mark, making it by far the most-valued listed firm in the country and 64th globally. Shares of the diversified conglomerate have been on fire in the past two years, underpinned by strong momentum in its telecom and retail verticals. RIL can also boast of highest net sales and profits among India Inc. The conglomerate alone now accounts for 6.5 percent of India’s total market cap.

Also, the gap between the company and TCS, the second-most valued company, has now widened to nearly 30 percent. In dollar terms, RIL is valued at $140 billion, slightly below global oil and gas peers France’s Total and China’s Petrochina. Some analysts are pegging RIL’s market cap to climb to $200 billion driven by its retail and digital businesses and assets monetisation.

(Source: Business Standard)


8. CCI Approves Total Group's 37.4% Stake-Buy, Joint Control of Adani Gas

The Competition Commission on Thursday said it has given approval to the acquisition of 37.4 percent shareholding and joint control by Total Group in Adani Gas.

The proposed combination represents an investment opportunity for Total along with its subsidiaries and affiliates (Total Group) given the future of natural gas business in India.

"Total Group believes in the initiatives taken by the Government of India to increase the reliance on natural gas instead of petroleum-based products," the Competition Commission of India (CCI) noted.

(Source: Business Standard)

9. 'No Irregularities': MCA Relief to Indiabulls Housing Finance, for Now

The Ministry of Corporate Affairs (MCA) on Thursday said it has found no irregularities in the loans given to five companies by Indiabulls Housing Finance, as alleged in a public interest litigation (PIL), sending the stock up more than 24 percent.

The ministry said this in an affidavit submitted in the Delhi High Court. It is, however, still probing the company, one of the country’s largest real estate lenders, and has sought two months’ time for filing additional affidavit in this matter. Any violations will be dealt with “as per law”, the MCA said.

(Source: Business Standard)

(At The Quint, we are answerable only to our audience. Play an active role in shaping our journalism by becoming a member. Because the truth is worth it.)

Stay Updated

Subscribe To Our Daily Newsletter And Get News Delivered Straight To Your Inbox.

Join over 120,000 subscribers!