1. VC Professionals Strike out on Their Own as Investors Back Small Funds
Several venture capital (VC) professionals, and founding members of leading VC firms, are setting up their own firms as investors look to back smaller funds, hoping their nimbler approach will deliver bigger returns.
Many new firms, such as Epiq Capital ($100 million), Pravega Ventures ($30 million), Fireside Ventures ($52 million) and Fundamentum ($100 million) were set up recently. While Epiq was launched by Rishi Navani, a former partner of Matrix Partners India, Fireside and Fundamentum were established by Helion founders Kanwaljit Singh and Sanjeev Aggarwal, respectively. Now, former managing director of Sequoia Capital Abhay Pandey joins the long list of VC fund managers leaving established firms to set up their own venture.
(Source: Livemint)
2. Rupee Sinks 30 Paise to 70.11 on US Rate Hike Worries
The rupee on Thursday, 23 August, sank 30 paise to close below the 70-mark against the US currency due to renewed worries about a hike in US interest rates amid global trade war jitters.
The domestic currency ended at 70.11 per dollar NSE 0.06 percent, a loss of 30 paise or 0.43 percent over the previous close. In day trade, the rupee had crumbled to a session low of 70.17 per dollar.
The rupee suffered its the biggest single-day drop in past one week, snapping a two-straight session recovery trend.
(Source: The Economic Times)
3. SEBI Chief Warns Lack of Competition in MF Sector Cause of Worry
Lack of competition among mutual funds (MF) and very high profits at some fund houses are worrisome for the industry, Securities and Exchange Board of India (Sebi) chairman Ajay Tyagi said.
Despite tremendous growth in the MF industry, the market share remains concentrated among a few big players, Tyagi said at a summit organized by the Association of Mutual Funds in India (Amfi). India’s top four mutual funds account for almost 50 percent of the industry’s assets under management (AUM), while the top seven account for around 70 percent of the industry AUM.
(Source: Livemint)
4. RIL Is First to Hit Rs 8 Trillion Market Cap in India
Billionaire Mukesh Ambani-led Reliance Industries (RIL) on Thursday, 23 August, became the first company in India to have crossed Rs 8-trillion market capitalisation after the company’s shares witnessed a record rally in 2018.
Many stocks also hit their lifetime highs on Thursday.
RIL’s m-cap stood at Rs 8.04-lakh crore on the BSE and the NSE as per Thursday’s closing price of Rs 1,269. The stock has rallied by over 38 percent in 2018.
(Source: The Hindu Business Line)
5. Goldman to Shut Two Hedge Funds Run out of Asia
Goldman Sachs Group Inc is shutting two hedge funds run by senior executives based in Asia, according to people with knowledge of the matter.
The funds, which together manage about $1.4 billion in assets, were run by Goldman Sachs partners Ryan Thall and Hideki Kinuhata, the people said, asking not to be identified because the information isn’t public. Kinuhata is retiring and Thall is expected to start his own fund, the people said.
(Source: Livemint)
6. PNB Scam Fallout: Outstanding Buyers’ Credit Shrinks by $25 Bn
In the aftermath of the Rs 12,600-crore scam at state-run Punjab National Bank, access to overseas credit has become increasingly difficult, especially for small and medium enterprises (SMEs). In fact, the overall outstanding buyers’ credit has shrunk by Rs 1.72-lakh crore (or $25 billion) since June 2017.
Most of this has run down after March 2018, when the Reserve Bank of India banned letters of undertaking (LoUs).
According to data compiled by trade finance firm buyerscredit.in, overall outstanding buyers’ credit (OBC) stood at Rs 3.43-lakh crore (or $49.4 billion) as of June-end 2018, compared to Rs 5.15-lakh crore or $74.21 billion as of June-end 2017.
(Source: The Hindu Business Line)
7. Ruchi Soya Lenders Approve Adani Wilmar's Rs 6,000 Crore Bid
Lenders of Ruchi Soya have approved the Rs 6,000 crore bid of Adani Wimar to acquire the debt-ridden edible oil firm, sources said. Adani Wilmar and Baba Ramdev's Patanjali group have been engaged in a long-drawn battle to take over Ruchi Soya.
Adani Wimar's bid was approved by the committee of creditors (CoC) with about 96 percent votes in favour.
The resolution professional will now seek approval from the National Company Law Tribunal (NCLT).
(Source: The Economic Times)
8. New Industrial Policy to Focus on Jobs, Push Tech Use, Cut Red Tape
The much-anticipated New Industrial Policy, which will replace the 27-year-old existing policy and pave the way for promotion of new technology and reduced regulations, has been placed before the Union Cabinet for approval.
“The New Industrial Policy is now just a Cabinet nod away. Its implementation will lead to job creation and modernisation of units, and will encourage entrepreneurs to experiment with new technology to improve efficiency,” a government official told BusinessLine.
“All ministries and departments concerned were kept in the loop throughout the drafting process. Hence, there were no major changes proposed during the inter-ministerial consultations,” the official said.
(Source: The Hindu Business Line)
9. 'Rate Hike Criticism by Donald Trump Won't Sway US Fed'
Federal Reserve Bank of Kansas City President Esther George favours two additional interest-rate increases this year as long as the US economy continues to gradually improve, adding that criticism by President Donald Trump will not influence the US central bank.
“My own forecast is that it will be appropriate to raise rates a couple more times this year,” George told Kathleen Hays in an interview on Bloomberg Television in Jackson Hole, Wyoming.
Trump complained to wealthy Republican donors at a Hamptons fundraiser on Friday that he expected Jerome Powell to be a cheap-money Fed chairman and instead the man he picked for the job had raised rates. George said she wasn’t feeling any political heat.
(Source: The Economic Times)
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