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1. I Serve Tata Steel, Not Tata Group: Nusli Wadia
Nusli Wadia, who along with Cyrus Mistry faces ouster from the Tata Steel board, has said in a letter to shareholders that he does not serve the Tata group in any capacity and hence does not need to act in the group’s interest.
Wadia, in his 15-page letter, said Tata Sons’ allegation that he has not been acting in the interest of the Tata Group, does not pass muster.
(Source: BloomberQuint)
2. Government Committee Lists Digital Measures to Cut Cash Usage
You could be charged for cash usage if the government accepts the recommendation of a panel set up to suggest ways to encourage digital payments but then you will also be able to pay equally easily using your mobile and Aadhaar-based systems.
A committee, headed by former finance secretary Ratan Watal, has suggested a 30-90 days’ timeline for implementing a number of measures that it hopes can cut in half India’s cash usage from 12% of GDP in three years.
(Source: The Economic Times)
3. Now, Get Interest on Exchange of Old Notes
The premium for illegal exchange of old currency notes has collapsed and money changers are proposing to pay interest on old notes provided the owner agrees to lock in the money for a year or more.
The dramatic turnaround within a few weeks after the currency swap could mean that people with ill-gotten wealth have either found other ingenious ways of converting their money or have decided to make use of the government’s second amnesty scheme. ET spoke to businessmen, builders and politicians to understand the issue and discovered that the sky-high premiums that existed immediately after Prime Minister Narendra Modi’s currency swap move have evaporated.
(Source: The Economic Times)
4. Acquisitions to Drive Indian Drug Firms’ Near-Term Growth: Moody’s And ICRA
Indian pharmaceutical companies will seek growth through acquisitions in the next 18-24 months, according to Moody's Investors Service and its Indian affiliate, ICRA Ltd.
Drug makers will pursue acquisitions with the "aim of deepening their geographic and product diversity, and further increasing their presence in developed and emerging markets,” the two ratings agencies said in a joint report.
(Source: BloomberQuint)
5. Ahead of Merger, State Bank Clears VRS for Staff of Associate Banks
The employees of State Bank of India’s associate banks will be soon be offered a Voluntary Retirement Scheme (VRS).
A decision to this effect was taken at its board meeting held last week, said reliable sources.
(Source: The Hindu Business Line)
6. FPIs Shunning Indian Debt for Other Markets
Foreign portfolio investors (FPIs) have stepped up their selling from the domestic bond market, following Donald Trump’s surprise victory in the US Presidential election and the demonetisation exercise at home. In the past one month, FPIs have pulled out Rs 33,886 crore ($5 billion) from the domestic market, taking the entire year-to-date 2016 selling tally to a net Rs 43,024 crore ($6.3 billion).
(Source: Business Standard)
7. Tatas Buying 1.73% in Tata Motors?
Morgan Stanley will buy 50 million shares (1.73% stake) in Tata Motors on behalf of an undisclosed client on Tuesday. The shares will be bought at an upper cap of Rs 499.8 per share, nearly a 10% premium to Monday’s closing price on BSE of Rs 454.55. At least three persons in the know said Tatas were the buyer to gain an edge in the EGM voting. A Tata Sons spokesperson said he was not aware of the development. The deal comes days ahead of an EGM called by the automaker at Tata Sons’ request to oust Tata Motors Chairman Cyrus Mistry from the board. At the top end, the deal size translates into Rs 2,500 crore.
On 22 December, shareholders of Tata Motors will vote on a resolution to remove Cyrus Mistry and Nusli Wadia as directors of the company. Tata Motors’ ADR (American depository receipt) soared nearly 5% in the US following reports of the deal. Shares of Tata Motors had ended 2% lower on Monday in the domestic market.
(Source: Business Standard)
8. India Does Not Need More Coal-Based Capacity Addition till 2022: Central Electricity Authority
Indicating a significant shift in the Indian power sector, the Central Electricity Authority (CEA) has, in its National Electricity Plan (2017-2022), said the country does not need any more coal-based capacity addition till 2022. CEA said India would add massive renewable-based capacity.
CEA in its draft plan has also mentioned adequate coal is expected to be available for the coal-based power plants during 2021-22 and 2026-27. The draft is open for comments from all stakeholders till January 2017. CEA is the apex technical authority for the power sector.
(Source: Business Standard)
9. Maharashtra to Raise Rs 26,700 Crore for Mumbai-Nagpur Expressway
Maharashtra State Road Development Corporation (MSRDC) will raise Rs 26,700 crore, half of it from the domestic market, for the 710 km Mumbai-Nagpur super-communication expressway named Samriddhi Marg. The Asian Development Bank (ADB) is expected to provide the remaining Rs 13,750 crore.
MSRDC, the nodal agency for the project, has roped in SBI Caps to mop up funds. MSRDC will fund the engineering-procurement-construction contract in its entirety and has sought the state government’s approval for approaching the ADB for the long-term loan.
(Source: Business Standard)
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