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Pravin Palande Economictimes The Indian equity markets have been trading at an alltime high with the Nifty 50 at 12,938 and the Sense at 44,180 as on November 18. Over the last six months, the Nifty is up 42%. Developed markets are printing money to protect against the Covid-19 meltdown. And Pzer and Moderna vaccine trail results have boosted stock markets across the world. The net eect: the market is slush with liquidity. In the last two months the market has gone up 11%, as FIIs have bought equities worth USD8 billion. All this is leading to crazy valuations with the Nifty at a PE of 35x. FOMO (fear of missing out), invest in the equity market and eventually lose out. Fund managers, too, have ridiculed retail investors as they enter at the peak, don’t make returns, and then blame the mutual funds. They have a point. Investors often stop investing when markets are down and enter the market at an all-time high. However, investors do not lose money because they come in at the peak. It’s...

  Written by  P Vaidyanathan Iyer  | New Delhi  November 18, 2020 The new stimulus package reinforces the ‘fiscal conservatism’ ideology of the government — rather than large cash transfers, the growth philosophy centres around creating an ecosystem that aids domestic demand, incentivises companies to generate jobs and boost production. Atmanirbhar Bharat 3.0  may well be Finance Minister  Nirmala Sitharaman ’s last  Covid-19   relief package ahead of  Budget  2021-22, but there is a discernible pattern to the four major announcements made over the last seven months. It reinforces the ‘fiscal conservatism’ ideology of the government under Prime Minister  Narendra Modi  — rather than large cash transfers, the growth philosophy centres around creating an ecosystem that aids domestic demand, incentivises companies to generate jobs and boost production, and simultaneously extends benefits to those in severe distress, be it firms or...

 Moneycontrol October 21,2020 The Union Cabinet is likely to take up a proposal under which domestic companies may not be allowed to pay hefty amounts to their foreign partners for technology collaboration or brand name. The centre is planning to cap royalty payments and increase withholding tax, a source said. These restrictions on royalty payments to foreign partners is something the Ministry of Finance has been planning for a while. As per the proposal, which is in its final stages and will move to the Cabinet soon, a cap of up to 4 percent will be imposed on royalty payments, the source said. The finance ministry is said to have consulted the Securities and Exchange Board of India and the Reserve Bank of India on this proposal. As per an earlier proposal, in case of technology transfer or collaboration, the royalty payment can be capped for the first four years at 4 percent of the product or company’s turnove...

 Hindustan Times Sep 23, 2020 Global investment firm KKR will invest Rs 5,550 crore into Reliance Retail ventures Limited, a subsidiary of Reliance Industries Limited, RRVL said. KKR’s investment will translate into a 1.28% equity stake in RRVL on a fully diluted basis. Early this year, KKR invested Rs 11,367 crore in Jio Platforms for 2.32 per cent stake, making this KKR’s second investment in a subsidiary of Reliance Industries. “This investment values Reliance Retail at a pre-money equity value of Rs 4.21 lakh crore. This marks the second investment by KKR in a subsidiary of Reliance Industries, following a Rs 11,367 crore investment in Jio Platforms announced earlier this year,” Reliance Industries said in a statement. Reliance Retail operates India’s largest, fastest growing and most profitable retail business serving close to 640 million footfalls across its 12,000 stores nationwide.Mukesh Ambani, Chairman and Managing Director of Reliance Industries, said: “KKR has a proven ...

The Telegraph India July 21,2020       Infrastructure Leasing and Financial Services (IL&FS) Group expects to resolve over Rs 57,000 crore of its debt, which is more than 50 per cent of its overall debt of Rs 99,000 crore. Of this, the group estimates to address around Rs 50,500 crore of its debt by March 2021 and an additional debt of Rs 6,600 crore beyond this fiscal. The Centre had appointed a new board in IL&FS in 2018, led by veteran banker Uday Kotak. Speaking to the press on Monday through a video conference, Kotak, who is the group’s non-executive chairman, said, “We are putting out transparently things that we see today and our reasonable estimate of how things look as we go forward. We are committed to this road map and we will go all out as IL&FS board and management to make it happen.” Till June 30, 2020, IL&FS has addressed debt of Rs 17,640 crore from a combination of completed asset sales, debt repayment to green entities (th...

Financial Express November 06,  2019 Rishi Raj Reliance Jio may have to shoulder the burden of around Rs 13,000 crore of past dues relating to licence fee and spectrum usage charge owed by Reliance Communications (RCom) as a fallout of the Supreme Court verdict in the adjusted gross revenue (AGR) matter. RCom, owned by Anil Ambani, owes past dues of around Rs 20,000 crore (Rs 16,456 crore licence fee and Rs 3,533 crore SUC) to the Department of Telecom (DoT). But since the company has filed for bankruptcy, DoT will have to claim the amount in the insolvency court as an operational creditor and may have to take a huge haircut, if at all any payment eventually materialises.  However, officials said they may look at claiming around Rs 13,000 crore of the total dues of the company from RJio which bought around 47.50 MHz spectrum in the 800 MHz band from RCom through trading in January 2016. The spectrum was acquired across 13 circles and is currently being ...

Money Control Ashwin Mohan  July 20,2020    India’s largest private sector mortgage financier Housing Development Finance Corporation (HDFC ) Ltd has finalised a legion of as many as 19 merchant banks for its fundraising exercise aimed at raising up to Rs 14,000 crore and bolstering its balance sheet,  multiple sources with knowledge of the matter told Moneycontrol. This is arguably the biggest consortium of merchant bankers/advisors ever taken on board by an Indian corporate for fundraising purposes in the equity capital markets and sets a new record for India Inc, these sources said. Moneycontrol was the first to report the finance powerhouse’s fundraising plans on June 17, 2020. “Morgan Stanley, Kotak Mahindra Capital, Bofa Securities, Jefferies, JP Morgan, Citi, Nomura, HSBC Securities, BNP Paribas, Credit Suisse, UBS, Goldman Sachs, SBI Capital, ICICI Securities, JM Financial, Motilal Oswal, Axis Capital, HDFC Bank and IIFL Capital are the ...

Hindustan Times 17 June 2020 Rajeev Jasyaswal The emergency credit facility was announced by the finance minister on May 13 as a part of the first tranche of the Aatmanirbhar Bharat Abhiyan (Self-reliant India Initiative) of the National Democratic Alliance government.  State-run banks have disbursed half the ₹32,050 crore loan they sanctioned to small businesses as of June 12 under the ₹3 lakh crore collateral-free emergency credit guarantee scheme launched in May to boost micro, small and medium enterprises (MSMEs) hit by the Covid-19 pandemic and subsequent lockdown. “As of 12 June 2020, #PSBs [public sector banks] have sanctioned loans worth ₹32,049.86 crore under the 100% Emergency Credit Line Guarantee Scheme [ECLGS], out of which ₹ 16,031.39 crore has already been disbursed,” the office of finance minister Nirmala Sitharaman tweeted on Tuesday. The emergency credit facility was announced by the finance minister on May 13 as a part of the first ...

The Indian Express 14 June 2020 Written by: George Mathew The central bank said cross-country cooperation with Bhutan is already in place with CTS, NACH and NEFT operational there as well. NEFT is available for one-way transfers from India to Nepal. After successfully implementing a low-cost payment system in the country, the Reserve Bank of India (RBI) is exploring the possibility of expanding its payment system abroad following “requests” from several countries. The central bank said “specific interests or requests are being received” for implementing payment systems like CTS (cheque truncation system), NEFT, UPI and messaging solutions by certain jurisdictions. “There is scope for enhancing global outreach of our payment systems, including remittance services, through active participation and co-operation in international and regional fora by collaborating and contributing to standard setting,” the RBI said in a note on ‘Oversight framework for financia...

Scroll Dated: April 30,2020 Reliance Industries on Thursday announced up to 50% pay cuts for some top oil-and-gas division employees as it deals with the economic fallout of the coronavirus pandemic, Reuters reported. Chairperson Mukesh Ambani will give up his entire compensation. Employees earning more than Rs 15 lakh a year will face a 10% cut while senior executives will have to take 30% to 50% salary cuts, the news agency reported, quoting the company’s officials. “The hydrocarbons business has been adversely impacted due to reduction in demand for refined products and petrochemicals,” Executive Director Hital Meswani said in a letter to the employees. “The situation demands that we maintain razor sharp focus on operating costs and fixed costs and all of us need to contribute to make this happen. Our Chairman [Ambani] has agreed to forgo his entire compensation.” Reliance Industries has also deferred annual cash bonus to the employees and performance-based incen...

The Indian Express   Aanchal Magazine April 04, 2020 Amid the ongoing economic slowdown, the government’s net direct tax collections have missed the downward revised target for 2019-20 by Rs 1.42 lakh crore at Rs 10.27 lakh crore, a decline of over 8 per cent from previous year’s receipts. The contraction in direct tax collections in the financial year, coming just ahead of the COVID-19 spread in India and resultant lockdown impacting business operations across the country, has been witnessed after a gap of 20 years. The Centre’s direct tax receipts had last seen a year-on-year decline in 1998-99, when collections recorded a contraction of 3.5 per cent in that financial year. All the major centres recorded a dip, with Mumbai seeing a fall of 12 per cent in its collections, while Bengaluru and Delhi recorded a slide of 10.1 per cent and 9 per cent in collections, respectively. Kanpur and Bhubaneswar posted the steepest fall of over 17 per cent each among the 18 tax ...

Dailyhunt February 27, 2020 Sitharaman Says This About Rs. 2000 Currency Notes  With buzz around Rs. 2000 currency notes that its circulation shall be gradually shelved, the finance minister cleared the air and as per the IANS report said at a meeting with PSU bank heads said that "As far as I know, no such instruction has been given to the banks (on stopping issue of Rs 2000 notes)". She said that there has been given no instruction to banks to stop issuing Rs. 2000 notes in their ATMs. The clarification comes amid news that ATMs are being recalibrated and Rs. 2000 notes are being replaced with Rs. 500 notes, while the currency shall continue to be legal tender and shall be taken off public circulation gradually. In an earlier case, Indian Bank decided to load more of Rs. 200 currency notes in its ATM while deciding to stop loading as well as dispensation of Rs. 2000 notes in its ATMs. Also, for transacting in Rs. 2000 i.e. their deposit and withdr...