1. Monetary Policy- RBI Seen Maintaining Status Quo
Monetary policy rates are likely to remain unchanged in the hands of outgoing Reserve Bank of India (RBI) governor Raghuram Rajan on Tuesday, who will leave the decision on future rate cuts to his successor.
None out of 10 bankers and economists interviewed by Mint said that the repo rate, which is the rate at which commercial banks borrow from the central bank, will remain at 6.5%. They added that the reverse repo rate would stay at 6% and the cash reserve ratio (CRR), which is the portion of deposits that banks must hold with RBI, will also stay at the current rate of 4%.
Source: Livemint
2. Board Approval Likely Today- HDFC, Max to Clear New Merger Scheme
After discussing that the current merger terms between HDFC Life and Max Life aren’t entirely feasible, the boards of both the companies will meet on Tuesday to settle upon a new scheme of arrangement.
As the listed parent of the second company reels from a contingent liability, Max Life will merge into parent Max Financial Services (MFS), which will then be split into two parts – insurance and a residual business that will carry the contingent liability.
Source: The Economic Times
3. Implementation of Inflation Target of 4% Positive For India, Says Moody’s
After the government notified the the 5-year inflation target at 4 percent with an upper and lower tolerance limit of 2 percent, Moody’s Investors Service on Sunday said that the decision would be “credit positive” for India’s sovereign rating, for it will aid in keeping price rise pressures under check.
The changes to the monetary policy regime of the last two years mark a step towards greater policy transparency and predictability, both of which should help in policy transmission and hence monetary policy effectiveness.Marie Diron, Senior VP, Moody’s Investors Service
Source: BloombergQuint
4. 30 PSUs to Buy Back Shares to Aid Government’s Divestment Plan
Financial year 2016-2017 could prove to be a bumper year for the government for its disinvestment revenue as 30 cash-rich Public Sector Undertakings (PSUs) might start buying back their own shares.
These PSUs include big names like ONGC, CIL, NTPC and BHEL. These buybacks could fetch the government, which is the largest owner of the PSUs, a whopping Rs 80,000 crore, according to estimates.
Source: The Financial Express
5. GST May Not Lead to Inflation if Tax Rate is About 18%, Says CAIT
If the standard rate of the Goods and Services Tax (GST) is fixed at somewhere near 18 percent, it will probably not lead to any significant inflation in the country, the Confederation of All India Traders (CAIT) said on Sunday.
It believes 18 percent would be an ideal rate, but added that the finalisation of the tax rate depends a lot on how goods and services under the exempted category are classified and also under nominal tax rate which may be 1 percent.
Source: The Financial Express
6. Core Sector Growth Picks Up in First Quarter, But Lower Than in 2014-15
Eight core sectors of the economy showed a massive growth of 5.2% in June this year; almost double the 2.8% seen in May. Industries like coal, cement and electricity experiences stellar growth this month, with output of each substantially rising on a month-on-month basis.
The latest statistics also show that the growth in these core areas in the first quarter of the fiscal year is also well above what it was a year ago. However, the growth is comparatively lower than the first quarter two years ago, in 2014-15.
Source: Livemint
7. DIPP Secretary Clarifies Local Sourcing Norms For Foreign Investors in Retail
Divulging the latest changes made in local sourcing norms for foreign investors who wish to set up single brand retail stores in India, Ramesh Abhishek, the secretary of the Department of Industrial Policy and Promotion (DIPP) on Sunday explained that the “three-year exemption period would apply only for those companies which have state of art technology”. The changes were initiated in June this year.
In an exclusive interview with BloomberQuint, Abhishek clarified that following this exemption for three years, foreign companies will have to stick to the defined norm of 30 percent local sourcing.
Source: BloombergQuint
8. Myntra Ties up With New Seller to Comply with FDI Regulations
In a move to comply with FDI’s new regulations for e-commerce companies, online fashion retailer Myntra has tied up with a new seller called Tech Connect Retail Pvt Ltd, according to official documents.
Untill now, Myntra was working under a B2B (business to business) to B2C (business to consumer) structure, wherein the parent entity, Myntra Designs Pvt. Ltd, supplied products to seller Vector E-commerce Pvt. Ltd, which in turn sold them to the final customers. However, this might violate new laws relating to direct online retail.
Source: Livemint
9. Naspers Set to Acquire Citrus Pay for Rs 1,200 cr: ET
In one of the biggest deals between a foreign company and an Indian startup, South Africa-based Internet and media giant Naspers is all set to acquire Mumbai-based company Citrus Pay by the end of September, valuing the payments platform at 1,000-1,200 crore.
As per the deal, Citrus Pay will be absorbed by PayU, the online payments service provider owned and operated by the Cape Town-headquartered multinational conglomerate.
Source: The Economic Times
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