a summary of the most important news articles to keep you ahead of the competition.
a summary of the most important news articles to keep you ahead of the competition.
#1. Market and banking authorities closely monitor the surge in volumes of derivative trading
Reserve Bank of India governor Shaktikanta Das stated that the country's banking and stock market authorities are keeping an eye on the large amount of trade in the futures and options sector and have had talks under the Financial Stability and Development Council's auspices, according to the Mint. According to NSE statistics, derivatives turnover increased 23-fold over the previous five years to Rs 79,927 million crore at the end of March.
Why it matters: Equity futures trading volumes now exceed India's nominal GDP. Both market players and watchdogs are becoming concerned about the spike.
#2. After Hyundai Motors' IPO, more international companies consider listing in the Indian market.
According to the Business Standard, which cited investment bankers, Hyundai Motor Company's intention to list its India division may encourage other multinational corporations to contemplate doing the same. About six multinational companies are in the early stages of evaluating the possibility of listing in India in order to unleash value. In comparison to Korea, Russia, and Europe, the values provided in the Indian market are at least two to five times greater.
Why it matters: MNC interest may stem from the strong liquidity and high value offered by Indian markets. Whether the curiosity becomes action will depend on how the Hyundai initial public offering (IPO) goes.
#3. TPG Capital is leading the competition to purchase a 60% share at a $1.5 billion value in Altimetrik.
According to the Economic Times, TPG Capital has emerged as the front-runner for around 60% of Michigan-based digital services business Altimetrik, which is founded by Indian American serial entrepreneur Raj Vattikuti. The company is estimated to be worth $1.5 billion, or Rs 12,500 crore. The promoters and TPG Capital Asia, the company's Asian investment vehicle, have inked an exclusivity deal. Jefferies offers the promoter advice.
Why it matters: Over 80% of Altimetrik's workforce is headquartered in India, and the digital services company has operations in more than 20 nations. Should the deal close, it will be TPG Capital's first acquisition in India's IT-enabled services market.
#4. Leaders in EQT, Warburg Pincus, and Dr. Reddy's to purchase vaccines and Bharat serum
According to the Business Standard, Dr. Reddy's Laboratories and international private equity companies EQT and Warburg Pincus are the front-runners to buy Advent's share in the biopharmaceuticals company Bharat Serums and Vaccines. Although Mankind Pharma is also involved, their valuing strategy is more cautious.
Why it matters: In anticipation of their projected expansion, India's pharmaceutical and healthcare industries have seen a significant amount of transaction activity. Four years after acquiring a controlling ownership in the company, Advent International is preparing to leave.
#5. Corporate India advocates in the Union budget for a streamlined capital gains tax system.
In the 2019 federal budget, India Inc. wants the government to make the capital gains tax system straightforward, logical, and consistent, according to the Hindu Businessline. To increase consumption, business leaders also demanded that the corporation tax rate remain unchanged and that the personal income tax slabs be adjusted.
Why it matters: It is possible to simplify the capital gains regime's complicated structure, which was created by previous policy choices. India's consumption demand has been sluggish; this might be improved by giving the middle class more discretionary money.
#6. Families in business ask for guidance on changing carefully worded family settlement documents.
According to the Economic Times, a growing number of business families are consulting experts and legal counsel about potential changes to carefully drafted Deeds of Family Settlement intended to protect inheritances in a time when members weren't expected to travel overseas or enter previously unimagined markets.
Why it matters: More comprehensive trust agreements that protect inheritance are necessary in these changing times. Nowadays, money protection has become more important to business families than wealth management.
#7. In order to evade the cost of compliance, Indian corporations obtain finance via unlisted arms
A new law that went into effect earlier this year requires companies with publicly traded bonds wishing to issue additional non-convertible debt to disclose them on stock exchanges. As a result, these companies have been raising financing via unlisted subsidiaries, according to a study by the Mint. Subsequently, the parent firm may receive the raised funds via intercompany loans or other means.
Why it matters: The new law intended to increase openness in the corporate bond market in India is not working out as intended. It could even encourage issuers and investors to choose other fundraising routes or to voluntarily delist already listed NCDs.
#8. Under the BOT system, the Highways Authority would propose 15 road projects valued at Rs 44,000 crore.
According to the Economic Times, the National Highways Authority of India intends to put out bids for 15 road projects totaling Rs 44,000 crore and spanning 900 km under the build-operate-transfer model during the current fiscal year. The fifteen projects are a part of the government's intention to provide 53 projects totaling more than Rs 2.2 lakh crore, encompassing 5,200 km of routes under the BOT mechanism, over the course of the next three to five years.
Why it matters: If the new BOT is successful, it may signal the return of public-private partnership initiatives for roadways. To encourage private enterprises to engage in road development, the government has already made modifications to the model concession agreement.
#9. The GST Council could take a second look at retroactively taxing online gambling enterprises.
The federal GST Act is scheduled to undergo a significant revision at the GST Council meeting on Saturday. This amendment would provide the Centre and the states the authority to discharge unpaid GST dues owing to legal uncertainty or consistent business practices.
Why it matters: Should the amendment be implemented, it might potentially address the annoying problem of online gaming firms being subject to retroactive taxes.
#10. Leading software firms in India reduce office space due to a decline in staff and hybrid work
According to a Mint article, several of the leading IT businesses in India are seeing a decrease in office space due to a decrease in personnel and a shift towards hybrid work practices. The real estate footprints of Cognizant, Infosys, and Wipro shrank last year; at the end of the previous fiscal year, they had 103.2 million square feet of office space, a decrease of 3.7 percent from 107.25 million square feet the year before.
Why it matters: This phenomenon is comparable to what happened in Western nations when the epidemic caused working practices to alter, leaving many unoccupied workplaces. The shrinking may cause commercial real estate prices to drop.
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