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Thursday, July 07, 2022

The Expresso Business Update

Your Business Expresso is served! The Indian Express brings to you the latest updates from the world of Indian and international business. Your one stop shop for all finance and business stories.

Episode 451 June 23, 2022

Business News at 9:30 am on 23rd June 2022

“You are listening to the Expresso Business Update. Here is the latest news from the world of Indian and International business brought to you by The Indian Express and The Financial Express.

Let’s begin. In India’s biggest bank fraud case, the Central Bureau of Investigation has registered a fresh case against DHFL, its erstwhile promoters Kapil Wadhawan and Dheeraj Wadhawan, who are already in judicial custody, for defrauding a consortium of 17 banks, led by Union Bank of India, to the tune of Rs 34,615 crore. The action came on a complaint from UBI, which had extended credit facilities to the tune of Rs 42,871 crore between 2010 and 2018. The bank has alleged that Kapil and Dheeraj Wadhawan in criminal conspiracy with others misrepresented and concealed facts, committed criminal breach of trust and abused public funds to cheat the consortium to the tune of Rs 34,614 crore by defaulting on loan repayments from May 2019 onwards. The audit of DHFL account books showed that the company allegedly committed financial irregularities, diverted funds, fabricated books, round tripped funds to “create assets for Kapil and Dheeraj Wadhawan” using public money.

Meanwhile, the Centre has decided to add dividend payment and share buybacks to the performance matrix of central public sector enterprises starting the current financial year, a move aimed at improving investor interest in these firms. According to sources, the performance-related pay for the CPSE staff will be linked to total return to shareholders, which will include annual targets on dividends and buybacks, apart from market capitalisation, the only criterion being followed at present. The TRS will be part of the annual memorandum of understandings, which the government-owned firms sign with the administrative ministries concerned. An inter-ministerial committee, which includes finance ministry and the Niti Aayog, apart from various administrative ministries, has endorsed the new norms, the sources added.

On to the industry sector. The board of directors of Zomato will meet on June 24 to likely approve the acquisition of e-grocery startup Blinkit. While Zomato, in a regulatory filing on Wednesday, did not say whether the upcoming board meet was related to the Blinkit deal, it just said that it is to discuss a potential acquisition. The stock exchange filing said, Pursuant to Regulation 29 of listing regulations, as amended, this is to inform you that a meeting of the board of directors of Zomato is scheduled to be held on Friday, June 24, 2022, to discuss a potential acquisition transaction by the company, the consideration for which may be discharged through an issuance of equity shares of the company by way of a preferential issue. This means that the deal with Blinkit will not involve any cash outgo on the part of Zomato but will be a share swap deal.

Moving on. Domestic air passenger traffic made a strong rebound in May, as it recorded a five-fold jump in volumes on a year-on-year basis, with Indian airline companies carrying 12 million passengers on local routes, according to the data from Directorate General of Civil Aviation. Last month’s domestic air traffic numbers are also close to the levels seen in May 2019, when Indian carriers ferried 12.2 million passengers. With the second wave of Covid-19 at its peak last year, the air passenger traffic on domestic routes was at a mere 2.1 million in May 2021. Despite the rising jet fuel prices and increasing fares, domestic air traffic was up a good 11% from the preceding month as well. This was a good pick-up from a mere 1.7% increase that was registered in April over March.

In relief for telecom operators, the Department of Telecommunications has finally removed the 3% floor rate on spectrum usage charges, a move which would in the long run make such payments zero on their entire spectrum holding. FE had reported in its Tuesday edition that operators had expressed their disappointment on Monday at a pre-bid conference that the government, despite committing to remove the floor in September 2021, had not yet notified it. They had pointed out that the non-removal would make the whole exercise of not charging SUC now onwards meaningless. The notification issued on the removal of the floor said that spectrum acquired through auctions held after September 15, 2021, in different access spectrum bands, will not attract SUC.
Lastly, let’s hear what to expect of the stock market today. Indian equity markets are likely to open higher on Thursday, weekly F&O expiry day, as SGX Nifty hinted at a flat to positive start for benchmark indices BSE Sensex and NSE Nifty 50. Nifty futures were trading 55 points, or 0.36 percent, higher at 15,452 on the Singapore Exchange. Wall Street’s main indexes ended with slim losses on Wednesday after as investors digested US Fed Chair Jerome Powell’s comments on central bank’s aim to bring down inflation. Asian markets were firm in early trade. Japan’s Nikkei 225 index rose 0.22%, while the broader Topix index added 0.41%.

You were listening to the Expresso Business Update by The Indian Express and The Financial Express. Ask your digital assistant device to play the latest business news from the Indian Express and stay up to date with the happenings in the finance and business stories. s stories.

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Business News at 9:30 am on 23rd June 2022"You are listening to the Expresso Business Update. Here is the latest news from the world of Indian and International business brought to you by The Indian Express and The Financial Express. " Let's begin. In India’s biggest bank fraud case, the Central Bureau of Investigation has registered a fresh case against DHFL, its erstwhile promoters Kapil Wadhawan and Dheeraj Wadhawan, who are already in judicial custody, for defrauding a consortium of 17 banks, led by Union Bank of India, to the tune of Rs 34,615 crore. The action came on a complaint from UBI, which had extended credit facilities to the tune of Rs 42,871 crore between 2010 and 2018. The bank has alleged that Kapil and Dheeraj Wadhawan in criminal conspiracy with others misrepresented and concealed facts, committed criminal breach of trust and abused public funds to cheat the consortium to the tune of Rs 34,614 crore by defaulting on loan repayments from May 2019 onwards. The audit of DHFL account books showed that the company allegedly committed financial irregularities, diverted funds, fabricated books, round tripped funds to “create assets for Kapil and Dheeraj Wadhawan” using public money. Meanwhile, the Centre has decided to add dividend payment and share buybacks to the performance matrix of central public sector enterprises starting the current financial year, a move aimed at improving investor interest in these firms. According to sources, the performance-related pay for the CPSE staff will be linked to total return to shareholders, which will include annual targets on dividends and buybacks, apart from market capitalisation, the only criterion being followed at present. The TRS will be part of the annual memorandum of understandings, which the government-owned firms sign with the administrative ministries concerned. An inter-ministerial committee, which includes finance ministry and the Niti Aayog, apart from various administrative ministries, has endorsed the new norms, the sources added. On to the industry sector. The board of directors of Zomato will meet on June 24 to likely approve the acquisition of e-grocery startup Blinkit. While Zomato, in a regulatory filing on Wednesday, did not say whether the upcoming board meet was related to the Blinkit deal, it just said that it is to discuss a potential acquisition. The stock exchange filing said, Pursuant to Regulation 29 of listing regulations, as amended, this is to inform you that a meeting of the board of directors of Zomato is scheduled to be held on Friday, June 24, 2022, to discuss a potential acquisition transaction by the company, the consideration for which may be discharged through an issuance of equity shares of the company by way of a preferential issue. This means that the deal with Blinkit will not involve any cash outgo on the part of Zomato but will be a share swap deal. Moving on. Domestic air passenger traffic made a strong rebound in May, as it recorded a five-fold jump in volumes on a year-on-year basis, with Indian airline companies carrying 12 million passengers on local routes, according to the data from Directorate General of Civil Aviation. Last month’s domestic air traffic numbers are also close to the levels seen in May 2019, when Indian carriers ferried 12.2 million passengers. With the second wave of Covid-19 at its peak last year, the air passenger traffic on domestic routes was at a mere 2.1 million in May 2021. Despite the rising jet fuel prices and increasing fares, domestic air traffic was up a good 11% from the preceding month as well. This was a good pick-up from a mere 1.7% increase that was registered in April over March. In relief for telecom operators, the Department of Telecommunications has finally removed the 3% floor rate on spectrum usage charges, a move which would in the long run make such payments zero on their entire spectrum holding. FE had reported in its Tuesday edition that operators had expressed their disappointment on Monday at a pre-bid conference that the government, despite committing to remove the floor in September 2021, had not yet notified it. They had pointed out that the non-removal would make the whole exercise of not charging SUC now onwards meaningless. The notification issued on the removal of the floor said that spectrum acquired through auctions held after September 15, 2021, in different access spectrum bands, will not attract SUC. Lastly, let's hear what to expect of the stock market today. Indian equity markets are likely to open higher on Thursday, weekly F&O expiry day, as SGX Nifty hinted at a flat to positive start for benchmark indices BSE Sensex and NSE Nifty 50. Nifty futures were trading 55 points, or 0.36 percent, higher at 15,452 on the Singapore Exchange. Wall Street's main indexes ended with slim losses on Wednesday after as investors digested US Fed Chair Jerome Powell's comments on central bank's aim to bring down inflation. Asian markets were firm in early trade. Japan's Nikkei 225 index rose 0.22%, while the broader Topix index added 0.41%. You were listening to the Expresso Business Update by The Indian Express and The Financial Express. Ask your digital assistant device to play the latest business news from the Indian Express and stay up to date with the happenings in the finance and business stories. s stories.
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