QBiz: Brexit Costs Markets $2 Trillion; 13k Cr Black Money Found 

The Quint brings to you a collection of the most important business stories from the previous day.

3 min read
 An employee counts rupee currency notes inside a private money exchange office in New Delhi. (Photo: Reuters) 

1. Post-Brexit Global Equity Loss of over $2 Trillion, Worst Ever: S&P

According to Standard & Poor’s Dow Jones Indices, last week’s Brexit saw $2.08 trillion taken away from global equity markets, the biggest daily loss ever. The slump trumps even the Lehman Brothers bankruptcy during the 2008 financial crisis and the Black Monday stock market crash of 1987.

The losses are calculated using the S&P Global Broad Market Index (BMI), which includes equity markets in 47 countries.

Read more here.

2. Rs 13,000 Crore Black Money Unearthed from Overseas Bank Accounts

Income Tax authorities have unearthed over Rs 13,000 crore of stashed undeclared income in overseas bank accounts from just two sets of information received in 2011 and 2013.

In at least 400 cases of Indians with deposits in HSBC, Geneva – the details of which were received from the French government in 2011 – the IT authorities have unearthed undisclosed income of Rs 8,186 crore, the highest disclosure ever from offshore bank accounts, and raised a tax demand of about Rs 5,377 crore against such account-holders till 31 March 2016, according to an IT assessment report.

Read more here.

3. SEBI Set to Allow E-Commerce Firms to Sell Mutual Funds: Livemint

A Securities and Exchange Board of India (SEBI) panel on digitisation of financial services, headed by Infosys Ltd co-founder Nandan Nilekani, has recommended allowing online marketplaces such as Flipkart and Amazon to sell mutual funds to make these products more accessible to people.

The recommendation were submitted on 30 May, following which they were then forwarded to Association of Mutual Funds in India, or Amfi, by Sebi for feedback and additional inputs, reports Livemint.

4. Bajaj Finserv Likely to Buy Out Allianz’s Stake in Insurance Joint Ventures: Livemint

Bajaj Finserv Ltd is likely to buy out its German partner Allianz SE’s stakes in two insurance units – Bajaj Allianz Life Insurance Co Ltd and Bajaj Allianz General Insurance – in a deal estimated at as much as Rs10,000 crore, reports Livemint.

Allianz has been in discussions with Bajaj to increase its stake in the two insurance firms to 49%, after the government raised the foreign investment limit in Indian insurers to 49% from 26% in March 2015.

5. India to Be Made Defence Export Hub: Manohar Parrikar

Union Minister Manohar Parrikar on Monday said that concrete steps are being taken to make India an export hub in defence, and make it self-reliant.

The government has taken steps in defence sector by increasing FDI. This has been done in order to make India an export hub over the years 
Manohar Parikkar, MInister of Defence

Read more here.

6. S4A Won’t Solve the Bad Loans Problem: Livemint

The strategic debt restructuring (SDR) scheme – introduced by the Reserve Bank of India (RBI) in June 2015 to address the rising bad debt problem of the banking system – has failed.

To replace it, a new scheme christened the Scheme for Sustainable Structuring of Stressed Assets or S4A has been brought in. But the new scheme has multiple loopholes. A report published in the Livemint takes a look at why S4A is not a solution to the problem.

7. Bank of Baroda Will Sell Non-Core Assets Gradually: Chairman Ravi Venkatesan

State-owned lender, Bank of Baroda (BoB), which reported its worst year in 2015-16, has undertaken a comprehensive review of its business and has finalised a detailed set of plans to fundamentally reposition it for future, chairman Ravi Venkatesan has said.

Venkatesan said the management has conducted a detailed review of business portfolio and intends to gradually exit unprofitable businesses and segments to improve margins and free up capital

Read more here.

8. States Received 16.7% More Funds in FY16: BS

The NITI Aayog has rubbished claims that states were left with less funds in 2015-16 as compared to a year ago, despite the transfer of a higher divisible tax pool following the 14th Finance Commission’s recommendations, reports Business Standard.

The Centre transferred 42% of the divisible pool to states in 2015-16, an increase of 10 percentage points from 32% in each of the previous five years.

Net resources transferred to states stood at Rs 8.2 lakh crore in 2015-16 (RE) against Rs 6.7 lakh crore in 2014-15. However, actual transfer to states and not RE turned to be a bit less at Rs 7.7 lakh crore in 2015-16. This meant a 16.7% increase in 2015-16 over that in the previous year.

9. Sliding Rupee May Put Metal, Power Firms in a Spot: ET

As pointed out by RBI governor Raghuram Rajan, while Indian companies with foreign exposure are well-prepared to face currency volatility through hedging, those belonging to struggling sectors such as metals, power and infrastructure may face a tough time if the rupee slides at a faster pace against the dollar, reports The Economic Times.

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