1. Setback for Mistry: Tata Sons Passes Resolution To Take Company Private
Shareholders of Tata Sons Ltd passed a resolution allowing the parent of the salt-to-software group to change its legal status from a public to a privately held company, according to people familiar with the development.
All the resolutions placed before shareholders at its annual general meeting on Thursday were passed with requisite majority, those in the know told BloombergQuint on condition of anonymity. The nod comes on a day the National Company Law Appellate Tribunal granted ousted Chairman Cyrus Mistry a waiver from the minimum shareholding requirement to bring charges of mismanagement and oppression against Tata Sons.
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2. SpiceJet’s Ajay Singh Set to Take Control of NDTV
With its founders Prannoy Roy, Radhika Roy and promoter firm RRPR Holding Pvt Ltd facing a CBI probe for allegedly concealing a share transaction, NDTV is set to change hands, it is learnt. Sources confirmed to The Indian Express that Ajay Singh, co-founder and owner of SpiceJet who was part of the BJP’s 2014 poll campaign, has picked up majority holding in the news channel.
When asked if NDTV has been sold to SpiceJet’s Ajay Singh, the source said, “Yes, the deal has been finalised and Ajay Singh will take control of NDTV along with editorial rights.”
(Source: The Indian Express)
3. Stimulus Package Funding: Govt Weighs Fiscal Push For Growth
The government is considering increased spending in order to revive the economy and is open to allowing the fiscal deficit to widen beyond its target for the year. A stimulus package in the range of Rs 40,000-50,000 crore is being discussed in the government, though these figures could not be immediately confirmed.
Back-of-the-envelope calculations show that a Rs 40,000-crore increase in capital spending could lead to a fiscal deficit of 3.5 percent of the gross domestic product, against the Budget estimate of 3.2 percent. Assuming the budgeted total revenue figure for 2017-18 remains constant, for each additional spending of Rs 10,000 crore, the fiscal deficit as a percentage of GDP roughly increases by a little less than 0.1 percent.
A senior government official said a final view would be taken by Prime Minister Narendra Modi and Finance Minister Arun Jaitley soon.
(Source: Business Standard)
4. One Nation, One Tax: Nearly 3 Million GST Returns Filed in August
As many as 2.97 million assessees have filed the summary input-output return under the new goods and services tax (GST) for the month of August (‘GSTR 3B’), much less than the 4.6 million that came for the month of July.
As many as 46 percent of filers – 1.37 million – submitted returns on Wednesday, the deadline for doing so.
However, the July returns had risen after an extension of five to eight days was given to assessees, depending on whether they wanted to claim input tax credit for pre-GST stocks or not. The GST Network (GSTN), the entity handling the information technology backbone for the new structure, is hopeful that return filing would equal the tally of July.
(Source: Business Standard and PTI)
5. Economists Caution FM Arun Jaitley: Don’t Go Pranab’s Way With Stimulus
Just when it looked like good going, the Modi government faces an existential crisis: red lights are blinking on the country's major macroeconomic parameters.
Pressure is mounting on the government for policy support to pump-prime the economy, but analysts are prescribing patience.
Going for quick fixes could undo the good work done so far and cause long-lasting damage, they warn.
Finance Minister Arun Jaitley on Wednesday dropped hints that a package to boost the economy could be on the anvil.
Economists express apprehensions that the government might be going the same way as the then finance minister Pranab Mukherjee had done during the post-2008 downturn, which ended up causing more damage to the economy than good.
(Source: The Economic Times)
6. Airtel, Vodafone & Idea Race Against Time to Ready Case Against IUC Cut
Top telecom operators are racing against time to build a strong case against the regulator's decision to lower interconnect usage charge (IUC) by 57 percent to 6 paise. They plan to move court claiming 'irreversible damage' to stall the Telecom Regulatory Authority of India (Trai) plan, which comes into effect on 1 October.
An industry executive said the case or cases need to be filed by Friday latest to be heard on Monday, which is the earliest possible day to get a hearing, and carriers need to decide which of the high courts to approach. "They have to make a strong case as they will get just one shot at this".
(Source: The Economic Times)
7. Flipkart Stays on Target to Double Big Billion Days Sales to $1 Billion This Year
India’s largest e-commerce firm Flipkart said on Thursday that it was on track to double sales from its flagship sale event Big Billion Days this year, as compared to last year’s five-day event and further extend its slender lead over arch-rival Amazon India.
In a statement, Flipkart said it recorded the highest-ever single-day sales of smartphones since the category opened for the Big Billion Days sale at midnight on Thursday and said it sold 1.3 million smartphones within the first 24 hours.
In a separate interview, Flipkart senior director Smrithi Ravichandran said that the online retailer was on track to exceed most of its internal targets over the course of the five-day event.
Gross sales of 1 billion dollars would make Flipkart’s Big Billion Days one of the biggest online sale events globally and put it in the same league as Alibaba’s Singles’ Day sale in China.
(Source: Livemint)
8. SEBI Removes Wall Between Stock, Commodity Brokers
Providing a major fillip to the ease of doing business, commodity and capital market regulator SEBI on Thursday paved the way for integration of stock and commodity brokers.
The move will also reduce costs for investors as they can use a fund with one broker to take a position in both the commodity and stock market. This, to an extent, will also ease the margin requirement on investors.
In a notification issued on Thursday, SEBI said the restrictions on stockbrokers handling securities from dealing in commodity derivatives has been done away with.
Similarly, the restriction on stockbrokers handling commodity derivatives from dealing in other securities has also been done away with.
(Source: The Hindu BusinessLine)
9. TRAI Gives More Time For Views on Spectrum Auction
The telecom regulator has extended the deadlines for stakeholder comments and counter-comments on its discussion paper seeking views on the timing, pricing and quantum of spectrum to be sold in the next round of auctions, which could see 5G airwaves making a debut.
It has now sought comments and counter-comments by October 9 and October 16 instead of the earlier 25 September and 3 October deadlines, following requests from stakeholders.
Last month, Trai had issued a consultation paper seeking views on 5G spectrum caps and rollout obligations, besides pricing of 4G airwaves in seven bands, including 700 MHz band that went unsold in last auction.
(Source: The Economic Times)
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