1. WTO Upholds US Case, Rules India's Export Subsidies Illegal
The World Trade Organization (WTO) has ruled against India in a crucial trade dispute with the US, ordering all export promotion schemes to be stopped within the next four months. The WTO also said the SEZ Scheme should be closed within the next six months.
“We recommend that India withdraw the prohibited subsidies under the export oriented units (EOU), electronics hardware technology park (EOT), bio-technology parks (BTP) scheme, Export Promotion for Capital Goods (EPCG) scheme, and the Merchandise Exports from India Scheme (MEIS), within 120 days from adoption of the report,” the WTO’s dispute settlement body ruled on Thursday.
(Source: Business Standard)
Yes Bank Gets $1.2 Billion Lifeline, Rana Kapoor Role to Shrink Further
Yes Bank Ltd on Thursday said a global entity has made a binding offer to invest $1.2 billion in the cash-starved lender through an issue of new shares, boosting its stock by as much as 35%, even as concerns remain about whether the proposal will pass muster with the banking regulator.
The investment, if cleared by the Reserve Bank of India (RBI), will diminish the shareholding of Yes Bank’s original promoters Rana Kapoor and late Ashok Kapur’s wife Madhu Kapur. Such a large issuance, if made to a single investor, may result in a change of the bank’s promoters.
Yes Bank’s shares, which soared after its exchange filing, ceded some gains later to close the day 24% higher at ₹70.45 on the BSE, on a day the benchmark Sensex rose 0.19%.
(Source: LiveMint)
Sebi Asks Banks to Disclose Bad Loan Divergences Within a Day of RBI Report
India’s markets regulator has asked publicly traded banks to disclose bad loan divergences with the Reserve Bank of India’s assessment within a day of receiving a final report from the banking regulator, tightening norms for asset quality disclosures.
“The listed banks shall make disclosures of divergences and provisioning beyond specified threshold not later than 24 hours upon receipt of the Reserve Bank’s Final Risk Assessment Report rather than waiting to publish them as part of annual financial statements," the Securities and Exchange Board of India (Sebi) said on Thursday.
(Source: LiveMint)
Valued at $1 Billion in Heyday, ShopClues Sold for Just About $100 Million
This was the year ShopClues planned to launch an initial public offering. On Thursday, the Gurugram-based e-commerce was sold for just about $100 million, less than a tenth of its valuation of $1.1 billion in happier days.
After multiple attempts at selling itself, including to larger e-commerce player Snapdeal, ShopClues has found a buyer in Singapore-based e-commerce platform Qoo10 in an all-stock deal. It also reportedly held talks with Paytm Mall, eBay and Flipkart for a potential sale over the past year.
(Source: Business Standard)
Core Sector Puts Up Worst Show in 14 years, Shrinks 5.2% in Sept
India’s core sector output declined 5.2% in September, posting its worst performance in 14 years and suggesting that the economy may have slumped further in the second quarter of the current financial year.
Economists said the sharp contraction showed the severity of the industrial slowdown and a recovery may take time.
The data was released after the benchmark BSE Sensex climbed to a record level of 40,392.22, before closing lower at 40,129.05.
(Source: The Economic Times)
Apple Bounces Back in India with Record Revenue in Sept Qtr
Apple Inc said it achieved record revenue in India in the July-September period, posting growth for the second straight quarter, as brisk sales of iPhones and Mac computers helped the firm to firmly turn around its business in the country.
Analysts revised upwards their outlook for Apple’s India performance after the company widened its share of the premium smartphone market.
Researcher Canalys estimated Apple will ship 1.8 million iPhones to India this year compared with 1.6 million units in 2018.
(Source: The Economic Times)
PhonePe’s Losses Surge by 2X to Rs 1,907 Crore in FY19
Walmart-owned digital payment startup PhonePe’s losses have gone up by more than 2X to around Rs 1907.4 crore during the financial year ended March 2019 (FY19) on account of higher expenses, according to its latest filings with the registrar of companies (RoC). PhonePe’s losses increased from around Rs 791 crore reported in the previous financial year (FY18).
The startup’s losses have been rising gradually every year with a 6X increase in losses reported in FY18, and a mammoth 31X rise in losses reported in FY17.
(Source: LiveMint)
Not Planning to Exit India, says Vodafone Group
The UK’s Vodafone Group has dismissed reports claiming it plans to exit India, saying it is engaging with the government following the Supreme Court order that left it facing statutory dues worth over Rs 39,000 crore and that it is fully supportive of the local team managing its joint venture with the Aditya Birla Group.
“Vodafone is aware of the unfounded and baseless rumours circulating in some of the Indian media that we have decided to exit the market. We would like to categorically state that this is not true and is malicious,” Vodafone Group said in a statement on Thursday.
The British telecom firm said that it is “actively engaging with the government” and is “fully supportive of its local management as they continue to manage our joint venture in these challenging times”.
(Source: The Economic Times)
Paytm Mall’s Losses Contract 35% in FY19, Revenue up 25%
Paytm Mall, the ecommerce marketplace unit of Paytm, reported a 35% reduction in losses to Rs 1,171 crore in the year ended 31 March. The company reported a loss of Rs 1,806 crore in the previous financial year.
Paytm Mall saw revenue jump 25% to Rs 968 crore in FY19, from Rs 775 crore in the previous reporting period, according to regulatory filings sourced from business intelligence platform Tofler. The company was able to reduce expenditure across the board, except employee benefits, which rose to Rs 177 crore in FY19 from Rs 159 crore in the previous year. Other expenses, which contributed the largest chunk of spending, reduced to Rs 1,913 crore from Rs 2,215 crore.
(Source: The Economic Times)
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