1. Expert panel submits report on Adani-Hindenburg to Supreme Court
A six-member expert committee established by the Supreme Court after the publication of the damaging Hindenburg report on the Adani Group has submitted a report in a sealed cover to the top court. The matter has been listed for hearing before the chief justice on May 12. It is not known whether the panel has completed its investigation, or whether it has sought further time to conclude its findings. The Securities and Exchange Board of India sought a six-month extension to complete its probe into allegations of fraud and stock manipulation levelled by Hindenburg against the Adani Group.
Why it’s important: The Supreme Court set up the panel to investigate if there was a regulatory failure in dealing with alleged lawbreaking in the stock market in relation to the Adani Group. The panel was also asked to suggest measures to strengthen investor awareness.
2. Foreign portfolio investors buy $2.2 billion worth of equities in nine days of May
Foreign portfolio investors have bought $2.2 billion of Indian equities in the first nine days of May, taking total inflows since March to $4.5 billion. The strong inflows more than made up for the $4.1 billion outflow in the first two months of 2023. Renewed foreign interest and strong domestic support helped Indian stock to outperform the MSCI EM index by 4 percent in April.
Why it’s important: India has emerged to be a preferred destination for foreign investors, who want to ride the high projected economic growth in the country amid global uncertainty.
3. High Court upholds tribunal verdict favoring Reliance in gas sale case
The Delhi High Court has dismissed the central government’s petition accusing Reliance Industries and its partners of draining gas from their deposits and making a profit. In doing so, Justice Anup Jairam Bhambhani upheld the international arbitration award of July 2018 in favor of the Reliance-led consortium, which includes UK-based BP Plc and Niko Resources of Canada.
Why it’s important: The government had claimed that Reliance was guilty of fraud and unjust enrichment of over $1.5 billion. The court agreed with the tribunal in finding no merit in the arguments.
4. Travel agents say Rs 900 crore in ticket sales stuck with Go First
A lobby group of travel and tourism companies has claimed that around Rs 900 crore is stuck with Go First in advances and forward bookings, seeking the government’s help in securing refunds. The Travel Agents Association of India, which counts some 2,500 companies as members, put forth the estimate in a representation to civil aviation minister Jyotiraditya Scindia.
Why it’s important: The stressed airline has voluntarily filed for insolvency and stopped flight operations. The fate of the money from holiday season ticket sales remains uncertain.
5. Reserve Bank scanner on property purchases through overseas direct investment
The Reserve Bank of India has expressed concern over the use of the overseas direct investment route by some entities to purchase real estate assets. Intended for companies and trusts, it allows a limit of $1 billion per year, unlike the liberalized remittance scheme’s ceiling of $250,000 per person per year. The central bank has said buying overseas real estate as an investment is not permitted under current regulations.
Why it’s important: Wealthy Indians often create companies or family offices to manage overseas investments, sidestepping the individual remittance limit set by the liberalized remittance scheme.
6. Three Adani firms lose ecofriendly endorsement by group backed by United Nations
Three Adani group companies, including Adani Green Energy, Adani Transmission and Adani Ports, have lost their endorsement from the world’s top arbiter of corporate green goals. The three companies were removed in late April from the list of “companies taking action” published by the Science Based Targets initiative. The UN-backed group helps companies establish concrete plans to reduce emissions consistent with the Paris climate pact’s target of containing global warming.
Why it’s important: The removal of three Adani firms from the UN-backed list is a blow to the conglomerate’s attempt to reposition itself as a leader of India’s energy transition.
7. India best destination, minister tells top executives US semiconductor firms
In a major outreach to US semiconductor companies, IT minister Ashwini Vaishnaw met the top executives in San Francisco at the start of his three-day visit to the country. Over the next two days, Vaishnaw would meet executives from Intel, Micron, Western Digital, Applied Materials, HP, Analog Devices, Lam Research and AMD, among others. He will also participate in a round table hosted by SEMI, a global association representing the electronics manufacturing and design supply chain.
Why it’s important: India has launched a major scheme to become a global semiconductor hub by offering production incentives. The current outreach is part of that effort.
8. Hong Kong’s Gaw Capital in discussions to buy a majority stake in Atria Power
Hong Kong’s Gaw Capital Partners is in talks with Atria Power Corporation to acquire a majority stake in the Bengaluru-based firm for an estimated equity value of $250 million. Gaw Capital has submitted a non-binding offer. Avendus Capital is managing the sale. Atria intends to use the money to repay debt and equity financing.
Why it’s important: India’s renewable power companies catering to the commercial and industrial sector have seen strong investor interest, given the country's ambitious green trajectory.
9. ONGC to get dividends instead of crude from Russia’s Sakhalin oilfield
State-run Oil and Natural Gas Corp has stopped receiving its share of oil from Russia’s Sakhalin-1 oilfield, in which it has 20 percent participating interest, but will get dividends. Until a little after the beginning of the Ukraine war last year, ONGC used to get a proportionate share of oil from the field, which it could sell to anyone. Now all the oil from Sakhalin is sold by a new firm Russia formed last year to operate the field.
Why it’s important: This will change ONGC’s cash flows as selling Sakhalin oil had meant quick cash realizations. Stakes of other Indian firms in Russian oilfields also yield only dividends.
10. India’s software firms improve their gender scorecard by hiring more women
Despite layoffs and an overall slowdown in tech hiring, top Indian IT services companies such as TCS, Infosys, Wipro, HCL and LTIMindtree are continuing to recruit women in large numbers, improving their gender scorecard. They are taking a bunch of initiatives, starting from measures at the entry-level all the way to the senior leadership, while also making the work environment more friendly for women.
Why it’s important: The gender balance in IT firms in the country has been typically skewed heavily to favor men. An infusion of more women employees is welcome.