Former Tata Sons chairman Cyrus Mistry dies in motor accident
Cyrus Mistry, former chairman of Tata Sons, died in a road accident in Palghar. He was 54 and is survived by wife Rohiqa and sons Firoz and Zahan. Mistry was travelling from Udvada, a holy place for Parsis, to Mumbai. His passing away is a big loss to the world of commerce and industry, Prime Minister Narendra Modi said in a tweet.
Why it’s important: The death of Mistry, managing director of the Shapoorji Pallonji, leaves behind a leadership vacuum at the group. Mistry and brother Shapoor are the single-largest individual shareholders of Tata Sons, the holding company of India’s largest business group.
SBI, HDFC to raise up to Rs 10,000 crore by selling perpetual bonds
India’s top lenders HDFC Bank and State Bank of India plan to collectively raise up to Rs 10,000 crore through sales of perpetual bonds this week. Perpetual, or additional Tier 1 bonds, are quasi-equity instruments that will allow the bellwether lenders to raise their respective capital adequacy ratios by up to 0.3 percentage points, giving them more room to advance funds to retail and institutional borrowers.
Why it’s important: The fundraising indicates rising credit demand in a rebounding economy, which is now the world's fifth largest, overtaking the UK. The country’s credit demand has touched a 3-year high, far outpacing the rate of deposit growth.
Overseas investment inflows top Rs 51,000 crore in August, highest in 20 months
Foreign portfolio investors have invested more than Rs 51,200 crore in Indian equity markets in August, the highest inflow since December 2020. This follows a net investment of nearly Rs 5,000 crore by them in July, data with depositories showed.
Why it’s important: Foreign investors turned net buyers for the first time in July after nine consecutive months of net outflows starting October last year. It indicates improving risk sentiment amid stabilisation in crude oil prices. India will continue to attract inflows in the coming months.
Tax department finds Rs 58,000 crore in winnings at gaming firm
The Central Board of Direct Taxes has found that participants in activities of an Indian gaming company have won Rs 58,000 crore over the past three years. At 30 percent tax plus penalties, the winners will have to pay about Rs 20,000 crore, CBDT chairman Nitin Gupta has said.
Why it’s important: There has been increased scrutiny of fantasy gaming and online gaming apps by Indian authorities. The huge winnings on which tax has not been paid will strengthen voices for stricter regulations and monitoring of the sector.
Disney may offload 10% stake in Tata Play set for IPO
Disney India may sell around 10 percent of its shareholding in Tata Play, which is planning to launch an initial public offering to raise Rs 3,200 crore. Tata Play may file its draft red herring prospectus by the end of this month. Disney owns around 30 percent stake in Tata Play, the country’s largest DTH operator.
Why it’s important: Disney may offload the stake to comply with cross-holding norms in the media industry in the country. The satellite TV market in India faces significant challenges due to competition from streaming services.
Parliamentary standing committee on finance holds hearings on Big Tech
The parliamentary standing committee on finance, led by Bharatiya Janata Party leader Jayant Sinha, has held consultations and hearings on anti-competitive practices by Big Tech and is set to give its recommendations to the Lok Sabha speaker later this month. Antitrust laws are evolving globally due to swift growth in the digital economy and India needs a regulatory architecture to keep pace with it, Sinha said in an interview.
Why it’s important: The experience in recent years has shown that disruptions by Big Tech lead to monopolies in double quick time. India needs robust laws to protect the interest of consumers.
Yes Bank mulls taking over Ritz Bengaluru after company defaults on loans
The Ritz Carlton hotel in Bengaluru, developed by NEL Holdings South, could see a change in ownership as Yes Bank plans to take over the property over non-payment of Rs 300 crore in loans. Yes Bank may either sell it to a new buyer or seek a suitor when it petitions the National Company Law Tribunal.
Why it’s important: The development is a setback for Nitesh Shetty, founder of the Nitesh Group, who was once hailed as a real estate tycoon but has seen his fortunes tumble in recent times.
EV makers say new deadline on safety norms is unrealistic
All the additional safety requirements for electric vehicles, including those for batteries, which have been proposed by the government cannot be implemented with immediate effect, manufacturers have said. They claimed those measures can only be implemented in a phased, time-bound manner.
Why it’s important: The new standards come into effect from October. The government is unlikely to relent as there have been several incidents of fire involving electric two-wheelers in the recent past.
Rethink on proposed data protection law is wise, Microsoft president says
The government’s move to rethink the proposed data protection legislation has been an act of wisdom, Microsoft president and vice-chairman Brad Smith has said. India has taken an “extraordinary” leap digitally in the global economy and made about five years of progress over the past two years of the Covid-19 pandemic, he said.
Why it’s important: It is important to connect the dots on this important legislation to protect data and the government has done well not to hurry into it.
Competition regulator's verdict on Google Play Store expected by October
India’s competition watchdog is in final stage of wrapping up its investigation into search giant Google over its Play Store policies. In 2020, Google enforced a 30 percent commission for all Play Store transactions, which was criticised by stakeholders globally and in India, where it was seen as monopolistic and stifling competition.
Why it’s important: It is good for all stakeholders that the antitrust regulator makes its position known before Google’s contentious policy becomes applicable in October.