QBiz: RBI Amends Gold Monetisation Scheme; & More
Catch the top business stories of the day.
1. Gold Monetisation Scheme: RBI Amends Eligibility Criteria for Deposits; Check Details
Reserve Bank of India (RBI) on Wednesday, 9 January, amended the Gold Monetisation Scheme, 2015 with respect to the eligibility criteria of making deposits. “The existing sub-paragraph 2.1.1 of the scheme has been amended,” the Central Bank said via a notification issued Wednesday.
“Persons eligible to make a deposit – Resident Indians [Individuals, HUFs, Proprietorship & Partnership firms, Trusts including Mutual Funds/Exchange Traded Funds registered under SEBI (Mutual Fund) Regulations, Companies, charitable institutions, Central Government, State Government or any other entity owned by Central Government or State Government] can make deposits under the scheme,” RBI said in the notification.
(Source: Financial Express)
2. SBI Wealth Targeting 50 Centres by 2020
SBI Wealth is aiming at taking its Wealth Business footprint to 50 centres nationwide by 2020 from the present 29 centres, a top SBI official said Wednesday.
The existing centres have 100 Wealth Hubs, he said.
"Presently, SBI Wealth serves nearly 43,000 clients with Rs 24,000 crore and is looking significantly to increase its client base to 1.25 lakh with an AUM (Asset Under Management) of Rs one lakh crore in the next two years," SBI Managing Director, (Retail and Digital Banking) P K Gupta told reporters.
3. GST Will Boost India’s Economic Growth in Coming Years: India Inc
Goods and Services Tax is a step in the right direction which will usher in growth and investment in the country, the industry feels. The Indian economy is likely to grow at an average rate of 7% or more in the coming year, according to the 5th edition of the PwC-FICCI India Manufacturing Barometer: Building Export Competitiveness Survey, launched today.
Mohammad Athar, Partner and Leader – Industrial Infrastructure, PwC, said, “GST is an enabler of growth. It will impact both domestic markets and export growth. Despite the initial implementation hurdles, India Inc is positive that it improve with time and benefit them in the long run.”
(Source: Financial Express)
4. IL&FS Receive Good Response for Monetisation Process Roads Projects
Infrastructure Leasing & Financial Services (IL&FS) said Wednesday it has received a strong response to the asset monetisation process of its domestic roads vertical housed under subsidiary IL&FS Transportation Networks Ltd.
More than 30 expressions of interest were received for acquiring the domestic road vertical including domestic EPC and O&M businesses, the company said in a statement.
The company initiated divestment in certain road projects to reduce debt level which at group level is about Rs 91,000 crore.
5. Auto Firms Say Steel Import Norms Will Delay Manufacturing
The auto industry has told the government it won’t be able to comply with new curbs on local manufacturers using imported steel, saying they need more time to adapt.
Foreign steel makers need to get Indian certification for high-grade steel products being used by Indian manufacturers. Although such steel comprises only a small portion of the total steel that goes into making vehicles, it is used for making important parts such as exhaust pipes and engines.
6. Apple to Cut Iphone Production by 10%, Says Nikkei
Apple Inc, which slashed its quarterly sales forecast last week, has reduced planned production for its three new iPhone models by about 10 percent for the January-March quarter, the Nikkei Asian Review reported on Wednesday. That rare forecast cut exposed weakening iPhone demand in China, the world’s biggest smartphone market, where a slowing economy has also been buffeted by a trade war with the United States.
Many analysts and consumers have said the new iPhones are overpriced. Apple asked its suppliers late last month to produce fewer-than-planned units of its XS, XS Max and XR models, the Nikkei reported, citing sources with knowledge of the request.
(Source: Financial Express)
7. Govt Eyes About USD 1 Bn From Air India Sale
The government is eyeing around USD 1 billion (about Rs 7,000 crore) from the sale of national carrier Air India in the next financial year, a government official said.
The government will initiate the process of strategic disinvestment of Air India in the second half of 2019-20 and in between it would work towards selling some of its subsidiaries and monetise assets.
Air India has a debt burden of Rs 55,000 crore. In November last year, a ministerial panel headed by Finance Minister Arun Jaitley had approved transferring Rs 29,000 crore debt to a special purpose vehicle (SPV) – Air India Asset Holding Company.
8. Tata Steel BSL to Raise Rs 24,000 Cr From Tata Steel
Tata Steel BSL said Wednesday its board has approved a proposal to raise up to Rs 24,000 crore through an issue of preference shares to Tata Steel on private placement basis.
Tata Steel last year acquired Tata Steel BSL Limited, formerly known as Bhushan Steel Limited, through its wholly-owned subsidiary Bamnipal Steel Ltd.
"The board at its meeting held today, considered and approved issuance of Non-Convertible Redeemable Preference Shares (NCRPS) to Tata Steel Limited, on a private placement basis for an amount not exceeding to Rs 12,000 crore in accordance with applicable laws and regulations, and/or (b) Issuance of Non-Cumulative Optionally Convertible Redeemable Preference (Issue of OCRPS) of up to Rs 12,000 crore on a private placement basis to Tata Steel Limited in accordance with applicable laws, regulations, consents, approvals (as required)," Tata Steel BSL said in a filing to BSE.
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