NCLAT asks CCI to probe against Flipkart over allegations of unfair practices
The National Company Law Appellate Tribunal (NCLAT) on March 4 asked the fair trade regulator Competition Commission of India (CCI) to initiate again the probe against e-commerce major Flipkart for an alleged use of its dominant position.
A three-member bench of the NCLAT headed by Chairman Justice S.J. Mukhopadhaya has set aside the earlier order passed by the CCI in this regard. Earlier, the CCI had absolved Flipkart of unfair practices using its dominant position. The appellate tribunal has directed the CCI to ask its probe arm Director General (DG) to investigate into the allegations.
“We set aside the order passed by CCI...,” the bench said adding that the fair trade regulator “is directed to initiate probe against Flipkart.”
RBI has room to cut rates: Sanjeev Sanyal
India's central bank has room to cut rates as inflation is set to decline in coming months, the government's principal economic adviser, Sanjeev Sanyal, said on TV channel ET Now.
Sanyal said in the interview that inflation is likely to fall by at least 100 basis points and that easing interest rates is one of the tools available to shield the Indian economy from the impact of the coronavirus.
“Underlying inflation pressures are within control and headline inflation will come down sharply,” Sanyal told ET Now. Reuters
Cement industry capacity utilisation to moderate: ICRA
The domestic cement industry’s capacity utilisation is likely to moderate in FY20 to sub-70% levels, says ICRA Ratings.
The demand revival trend witnessed in recent months is likely to continue in the fourth quarter of FY20. However, sustainability of the same is critical to support the increase in prices, it added.
According to the rating agency, the cement demand growth is expected to remain flat in FY20 against the decade high growth of 13% witnessed in the previous year.
This growth along with expected higher capacity additions at 20-22 million tonnes per annum (MTPA) in FY20/FY21 (17 MTPA in FY19) is likely to result in moderation of industry’s capacity utilisation in the current fiscal.
Supreme Court sets aside RBI ban on cryptocurrency transactions
The Supreme Court on Wednesday set aside an April 6, 2018, circular of the Reserve Bank of India (RBI) prohibiting banks and financial institutions from providing services in relation to cryptocurrencies.
In a judgment globally significant for online financial transactions, the top court found the prohibitive circular too disproportionate. The central bank should have opted for a less invasive mechanism to control the pitfalls of cryptocurrency transactions, the court has indicated.
Amazon confirms first virus case among U.S. employees
Online retailer Amazon.com Inc said on Tuesday an employee in the United States tested positive for the coronavirus.
“We’re supporting the affected employee who is in quarantine,” a company spokeswoman said in an email to Reuters.
Rupee recovers 24 paise against US dollar in early deals
The rupee recovered by 24 paise to 72.95 against the US dollar in early trade on Wednesday, taking heart from the Reserve Bank’s assurance that it will take appropriate actions to preserve stability in the financial market amid growing coronavirus fears.
At the interbank foreign exchange the rupee opened at 73.10, then gained further ground and touched a high of 72.90 against the US dollar. It was last trading at 72.95, showing a rise of 24 paise over its previous close.
On Tuesday, the Indian currency had fallen by 43 paise to close at a 16-month low of 73.19 against the US dollar amid concerns over the impact of coronavirus. PTI
Spillover of global turmoil for Indian markets largely contained, says RBI
The Reserve Bank of India on March 3 tried to assuage the domestic financial markets in the wake of turmoil in the global financial markets due to the spread of SARS-nCOV and said it stands ready to take appropriate action.
The central bank said spillovers to financial markets in India have largely been contained and growing hopes of coordinated policy action to mitigate a broader fallout to economic activity has boosted market sentiment today.
“Globally, financial markets have been experiencing considerable volatility, with the spread of the coronavirus triggering risk-off sentiments and flights to safe haven. Spillovers to financial markets in India have largely been contained. Growing hopes of coordinated policy action to mitigate a broader fallout to economic activity has boosted market sentiment today,” RBI said in a statement.
AGR revenues paid by telcos to reflect in FY20
Government will account the paid AGR revenues, which is so far Rs 25,896 crore, as revenue receipts in the current fiscal that will help the Finance Ministry tide over the tax revenue shortfall expected in FY20 to some extent, sources said.
The AGR amount may also go up till the end of this fiscal (March 31, 2020).
Though officials said the amount was not much to have any bearing on the fiscal position.
Government had not accounted for this figure in the 2020-21 Budget as it was in dispute but since this part amount has been received in the current fiscal, it will be on a revenue receipt as these are actual receipts, and any futuristic projections from sub judice cases cannot be done. IANS
Reliance Capital defaults on HDFC, Axis loans
Reliance Capital has defaulted on term loans of Axis Bank and HDFC Ltd. as on January 31, the company informed the exchanges.
Reliance Capital (an NBFC) has defaulted on interest payment of ₹4.76 crore to HDFC Ltd. and ₹0.71 crore to Axis Bank.
The total principal amount for HDFC Ltd. was ₹523.98 crore with the rate for interest at 10.6-13% while the principal for Axis Bank was ₹100.63 crore at 8.25%.
Reliance Capital said the default was due to a Delhi High Court order that placed a restriction on the sale of assets belonging to the company.
Sensex, Nifty start on a choppy note
Equity benchmarks Sensex and Nifty opened on a choppy note on Wednesday tracking persistent foreign fund outflow and tepid cues from global markets as concerns over the economic fallout of coronavirus epidemic continued to weigh on investor sentiment.
The 30-share index was trading 47.12 points, or 0.12 per cent, lower at 38,576.58, and the NSE Nifty slipped 10.20 points, or 0.09 per cent, to 11,293.10.
IndusInd Bank, Tata Steel, HDFC Bank, SBI and ICICI Bank were among the top losers, while Bajaj Auto, Asian Paints, Bharti Airtel and HCL Tech were trading with gains. PTI
Floor rates needed for mobile data services, current scenario justifies TRAI’s intervention: COAI
Batting for fixation of minimum rates for mobile data services, industry body COAI has told the telecom regulator that floor price should be applied uniformly to all categories of subscribers and for all type of tariff plan offerings.
The association said while there is an urgent requirement of a floor price for data services, it does not see any such need for voice calls and voice tariffs should remain under forbearance.
The COAI has said that fixation of a floor price, despite the recent hike in tariffs, is the way forward to guarantee minimum revenue for the telcos to ensure the viability and orderly growth of the sector.
“There is a need to fix the floor price for mobile data services...At this stage we also submit that floor price structure must have a subscription/connectivity charge irrespective of use even for voice,” Cellular Operators’ Association of India (COAI) said in its latest submission to telecom regulator TRAI on ‘Tariff Issues of Telecom Services’ PTI
SBI Cards IPO subscribed 0.87 times
The initial public offer of SBI Cards and Payment Services, which opened for bidding on Monday, was subscribed 0.87 times with bids received for nearly 8.75 crore equity shares as against 10.03 crore shares on offer in the price band of ₹750 to ₹755.
Further, the portions reserved for retail investors and employees were fully subscribed even as the segment reserved for high networth individuals was subscribed 0.47 times, as per NSE website.
RBI expected to cut rates soon to soothe markets
As the spread of coronavirus infection continues to shiver investor sentiments across the globe and with the US Federal Reserve having reduced policy rates by 50 basis points (bps) on Tuesday, the Reserve Bank of India is also expected to follow suit and announce rate cut in the coming days, probably by the end of this week, HDFC Bank’s Chief Economist Abheek Barua said.
“I suspect that over the next few days we will see some kind of response from the RBI, whether it is tomorrow itself or not is an open question. The only thing that the RBI has to watch out for is by doing this is whether it would send a signal that things are really collapsing and there is a need for emergency,” Barua told IANS.
“I think RBI Governor (Shaktikanta) Das will go with rest of the central banks and if not tomorrow, over the next few days... if other banks were to cut, I think RBI will also follow.”
The Reserve Bank of India on Tuesday said that it is ready to take “appropriate actions” to ensure the orderly functioning of financial markets. IANS