Bharat Biotech’s nasal vaccine against Covid-19 gets regulatory nod
Drugs Controller General of India has given emergency approval to a nasal vaccine against Covid-19 jointly developed by Covaxin maker Bharat Biotech and Washington University St. Louis for primary two-dose schedule for people above 18 years of age.
Why it’s important: The nasal vaccine is the world’s second to get regulatory approval after one developed in China. Delivering a vaccine in the form of nasal drops will make it cost-effective in low-income countries.
Government wants easier public holding rule for IDBI Bank stake sale
The central government has asked Securities and Exchange Board of India for a two-year relaxation in the minimum public shareholding norms for IDBI Bank once it is privatised. Listed firms are currently required to have a public shareholding of at least 25 percent within three years of being listed. IDBI Bank is already listed but state-run enterprises are exempt from the minimum public holding rule. The bank would need to comply with this rule within three years once it is privatised.
Why it’s important: If the market regulator agrees to this, it would make the strategic sale of the state-owned bank more attractive to an investor as it will get more time for complying with the norm.
Wearing seat belts in rear seats to soon become mandatory
A few days after a car accident killed former Tata group chairman Cyrus Mistry, road transport minister Nitin Gadkari has announced that the central government will make it mandatory for all travelers in a car to wear a seat belt. Those not following the new rule will be penalised. A notification in this regard will be issued in the next 2-3 days, Gadkari said.
Why it’s important: It is already mandatory for carmakers to install seat belts in the rear but wearing it is not enforced strictly. This is a long overdue reform given the high fatality rate in India’s road accidents.
Reduction in export levies for steel products on the cards
The government may soon revise levies on steel exports, reducing them on some products and withdrawing the tax on others. The taxes imposed on 22 May could be lowered to allow the steel industry to tap overseas markets amid declining local demand and the higher risk of export opportunities reducing due to a possible recession in the West. The steel ministry took up the issue with the finance ministry after receiving several representations from the steel industry in June.
Why it’s important: The price trends in the domestic and overseas markets no longer seem to justify the export levies, which has restricted steel exports. Lower domestic demand has put pressure on margins of steelmakers.
Market regulator to scrutinise suspicious trades before block deals
Suspicious trading activity before block deals, in which a large number of shares change hands in a pre-negotiated transaction, has become part of an investigation by the Securities and Exchange Board of India. A scrutiny of the deals transacted in 2021 and 2022 showed that the stocks moved in unusual ways before the block deals. The suspicious trades were often found to have been squared off on the same day.
Why it’s important: Besides block deals, the regulator has stepped up scrutiny of front-running and other market manipulation cases this year following rising complaints by lobby groups of foreign investors.
Rupee trade with Russia delayed as banks seek more clarity from government
Banks want the Reserve Bank of India and the government to give a clear guidance on India-Russia trade to be denominated in rupees that will shield them from any action by the US authorities. One the other hand, having laid down rules on rupee-denominated trade amid US sanctions on Russian financial institutions, the central bank and New Delhi think the banks should take the plunge. The Reserve Bank has called a meeting of all leading banks on September 7 to figure out what is holding them back.
Why it’s important: Banks with large international exposures and businesses are hesitant to invite the ire of the Western nations, partly because they think the business opportunity is not that great. The deal could be a non-starter.
Government looks to privatise state-owned firms in fertiliser sector
The central may look at privatising public sector undertakings in the fertilizer sector. It is considering Rashtriya Chemicals and Fertilizers, National Fertilizers, Fertilizers and Chemicals Travancore, Fertilizer Corporation of India, and others for privatization. The process of privatizing Project & Development India is already underway, and the government has received a good response from interested parties.
Why it’s important: Fertilisers would be the first non-strategic sector where the government may implement its new divestment policy. State-owned firms in steel and tourism may be next.
Law must be strengthened to stop anti-competitive behaviour, says Jayant Sinha
Former Union minister Jayant Sinha, heading a parliamentary committee on finance, has argued for strengthening the law to allow India’s antitrust regulator to anticipate anti-competitive behavior by digital companies and stop them tipping the markets. Whether it is use of data, acquisitions, pricing, self-preferencing, an entity’s competitive behaviour should be fair and should enable competition, Sinha said in an interview.
Why it’s important: The comments on a tougher approach to anti-competitive behavior by digital firms come ahead of the panel submitting a report in this regard later this month to the Lok Sabha speaker.
Reliance Retail and Jio raise Rs 8,500 crore through commercial papers
Reliance Retail Ventures and Reliance Jio have raised about Rs 8,500 crore working capital loans collectively through short-term money market instruments this week. Both companies likely sold commercial papers that offered 5.99 percent and 5.92 percent, respectively, with about 90-day maturities.
Why it’s important: Top-rated companies are increasingly funding working capital requirements from the commercial papers market, where the rates are more competitive than bank lending rates.
Bangalore flooding forces rethink on work from home by tech firms
India´s top IT companies and startups have asked personnel to work from home as torrential rains brought chaos on streets of Bangalore, flooding roads, and snapping water and electricity supplies. Many of these software companies have been asking staff to come to office. Operations were largely unaffected as most had power backup and a hybrid work environment, where some employees logged in from home.
Why it’s important: Urban flooding has become a recurring problem in India. Work from hoe provides a partial solution but the real emphasis will have to be on more sustainable urban infrastructure.
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