1. RIL to Take on Amazon, Flipkart; Mukesh Ambani Bats for Data Localisation
Reliance Industries (RIL) is ready to unleash its e-commerce dark horse to take on the likes of Amazon India and Walmart-owned Flipkart. Chairman and Managing Director Mukesh Ambani on Friday, 18 January, said Reliance Retail and Reliance Jio Infocomm were set to jointly launch their new e-commerce platform in the country.
At the inauguration of the three-day Vibrant Gujarat summit, Ambani said Gujarat was where the company would start operations while apprising Prime Minister Narendra Modi of the global conglomerate’s online marketplace plans.
“Jio and Reliance Retail will launch a unique new commerce platform to empower and enrich our 1.2 million small retailers and shopkeepers in Gujarat, which are part of the over 30-million (retail) community in India,” he said.
(Source: Business Standard)
2. RBI Will Take Steps to Help Sustain Growth: Shaktikanta Das
Reserve Bank of India (RBI) governor Shaktikanta Das said on Friday, 18 January, that steps will be taken to help sustain growth in the economy. Balancing inflation and growth would require careful analysis of new incoming data, Das said at the Vibrant Gujarat Global Summit, ahead of the monetary policy review in February.
“We will take necessary steps to maintain financial stability and to facilitate enabling conditions for sustainable and robust growth,” he said in his first speech after taking charge as the 25th RBI governor.
Das said the external sector requires careful monitoring given the volatility in crude oil prices and the global financial market.
(Source: Livemint)
3. Wipro Q3 Profit Beats Estimates, Revenue Growth in Line
Wipro Ltd cheered investors on Friday, 18 January, by announcing a bonus of one free share for every three they hold after posting fiscal third-quarter (Q3 2018-19) revenue growth that was in line with analysts’ estimates.
However, a soft revenue outlook for the March quarter (Q4 2018-19), with the company expecting, at best, 2% growth in constant currency terms, tempered hopes of India’s fourth-largest information technology services company having turned the corner.
Wipro’s dollar revenue improved 1.8% sequentially to $2.04 billion in the quarter ended 31 December. Revenue grew 3.7% on a year-on-year basis.
“We do not see any immediate impact of the macro headwinds that some of the large economies have cautioned (about), but we continue to remain watchful,” Wipro chief executive Abidali Neemuchwala said.
(Source: Livemint)
4. SEBI Lays Down Mechanism to Prevent Insider Trading
In a key policy move, the Securities and Exchange Board of India (SEBI) has decided to hold company promoters, irrespective of their shareholding status, responsible for violation of insider trading norms if they possess unpublished price-sensitive information (UPSI) regarding the company without any ‘legitimate’ purpose.
SEBI has specified that the term “legitimate purpose” will include sharing of the UPSI in the ordinary course of business by an insider with partners, collaborators, lenders, customers, suppliers, merchant bankers, legal advisors, auditors, insolvency professionals or other advisors or consultants, provided that such sharing has not been carried out to evade or circumvent the prohibitions of these regulations.
(Source: The Hindu Business Line)
5. Hyundai Makes First Move in India's Electric Car Battle with Rs 7,000 Crore Cheque for Tamil Nadu
The Tamil Nadu Government's Cabinet of Ministers on Friday, 18 January, approved an investment of Rs 7,000 crore by passenger carmaker Hyundai Motors that will allow the company to make its electric car foray into the country by manufacturing units from its Sriperumbudur facility near Chennai, according to two government officials aware of developments.
"The investment is for an expansion of capacity at their plant near Chennai [Sriperumbudur]. Hyundai is one of your largest manufacturers and consistent investors in the state," said an official who wished to remain unidentified.
The official said the Rs 7,000 crore investment also includes an exclusive electric vehicle incentive package for the company, and that a special incentive package has also been offered to Hyundai.
(Source: The Economic Times)
6. Centre's Divestment Target for FY20 to Likely Be Around Rs 80,000 Crore
The disinvestment target for 2019-20 is likely to be around Rs 80,000 crore, the same as that of 2018-19, said sources in the government.
The Department of Investment and Public Asset Management hopes for a successful go at privatising Air India. It also hopes to divest more India Tourism Development Corporation hotel properties, including leasing out of Hotel Ashok in Delhi.
Officials, however, are confident of meeting this year's disinvestment target.
That apart, the government is counting on a number of initial public offerings, and further tranches of its two exchange-traded funds. The finance ministry has started work on the merger of three state-owned unlisted insurers — National Insurance, Oriental Insurance, and United India Insurance — and then list the merged entity.
(Source: Business Standard)
7. FM Arun Jaitley, PSB Chiefs to Discuss NPAs in Review Meet Ahead of Interim Budget
The finance ministry’s review meeting with the chief executives of public sector banks (PSBs), ahead of the Interim Budget 2019-20, will focus on ways to reduce non-performing assets (NPAs) and boost their recovery, especially by auctioning borrowers’ properties.
Financial Services Secretary Rajiv Kumar is set to chair the meeting slated to be held on 28 January, instead of 22 January as was planned earlier.
“The meeting will be focussed on NPAs. We will discuss the steps being taken by banks to reduce and recover bad loans,” a senior finance ministry official said, requesting anonymity. “The position of NPAs and recovery made in NPA and written-off accounts” are the topmost agenda items of the meeting.
(Source: Business Standard)
8. NCLT Slaps Penalty on Tata Chemicals for Fraudulent Case Against Vendor
The National Company Law Tribunal, Mumbai, has slapped a cost of Rs 10 lakh on Tata Chemicals for filing a petition fraudulently and with malicious intent to liquidate Raj Process Equipment and Systems Pvt Ltd.
In a scathing order, VP Singh, Member (Judicial), and Ravikumar Duraisamy (Technical) said Tata Chemicals’ claims against Raj Process Equipment and Systems do not fall within the definition of operational debt.
Tata Chemicals has filed a false affidavit to prove that the actual principal amount due is Rs 9.19 crore instead of Rs 4.40 lakh, said the order. Therefore, it added, the petition is dismissed with costs of Rs 10 lakh to be paid by Tata Chemicals within 30 days in the account of the Prime Minister’s National Relief Fund.
(Source: The Hindu Business Line)
9. Sun Pharma Moves SEBI as Stock Dips on Fresh Whistle-Blower Allegations
The shares of Sun Pharmaceutical Industries plunged 8.52 percent to a six-year low on Friday, 18 January, wiping out Rs 8,735 crore from its market valuation amid reports of a new whistle-blower complaint against the country's largest drugmaker.
The stock, which dived more than 12 percent in intra-day trade under massive selling pressure, ended the day at Rs 390.75 on the BSE, with the firm’s market capitalisation settling at Rs 93,751.44 crore.
Sun Pharma urged the markets regulator to examine the role of some media houses with regard to the allegations raised by the whistle-blower. The 172-page complaint alleges that between 2014 and 2017, Aditya Medisales had had over Rs 5,800 crore transactions with Suraksha Realty, which is controlled by Sudhir Valia, a senior executive and close relative of Sun Pharma promoter Dilip Shanghvi, according to a Moneylife report.
(Source: Business Standard)
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