scorecardresearch
Follow Us:
Monday, August 15, 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 455 June 25, 2022

Expresso Business Highlights of the week

“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. The Centre has decided to add dividend payments 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.
In a relief for telecom operators, the Department of Telecommunications 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 June 21 edition that operators had expressed their disappointment on June 20 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.
Moving on to some IPO-related updates. Noida-based India Exposition Mart received capital market regulator SEBI’s approval to raise funds through an initial public offering. The public issue comprises fresh issue of equity shares aggregating up to Rs 450 crore and an offer-for-sale of up to 1.12 crore equity shares by existing shareholders. Up to 75 per cent of the offer will be available for allocation to qualified institutional buyers, not more than 15% will be available for allocation to non-institutional investors and remaining 10 per cent will be available for retail individuals. India Exposition Mart had filed the draft red herring prospectus with SEBI in March this year, and has obtained its observations letter on 16 June 2022, an update with the markets regulator showed. The stocks will be listed on BSE and NSE, both.
In India’s biggest bank fraud case, the Central Bureau of Investigation registered a fresh case against DHFL this week, 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.
Now some updates from the technology sector. Microsoft is pulling the plug on several AI-powered facial analysis tools, including one that it said could identify a subject’s emotion from pictures and videos. Experts have heavily criticised such “emotion recognition” tools, calling it unscientific to equate external emotional displays with internal feelings. They say facial expressions thought to be universal actually differed across populations. The decision to restrict public access to these tools forms part of a larger overhaul of the company’s policies on AI ethics. Microsoft’s updated Responsible AI Standards emphasise accountability to find out who uses the services and greater human oversight into where the tools are applied.
And lastly, moving on to the aviation sector. 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.

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.

Expresso Business Highlights of the week"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. The Centre has decided to add dividend payments 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. In a relief for telecom operators, the Department of Telecommunications 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 June 21 edition that operators had expressed their disappointment on June 20 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. Moving on to some IPO-related updates. Noida-based India Exposition Mart received capital market regulator SEBI’s approval to raise funds through an initial public offering. The public issue comprises fresh issue of equity shares aggregating up to Rs 450 crore and an offer-for-sale of up to 1.12 crore equity shares by existing shareholders. Up to 75 per cent of the offer will be available for allocation to qualified institutional buyers, not more than 15% will be available for allocation to non-institutional investors and remaining 10 per cent will be available for retail individuals. India Exposition Mart had filed the draft red herring prospectus with SEBI in March this year, and has obtained its observations letter on 16 June 2022, an update with the markets regulator showed. The stocks will be listed on BSE and NSE, both. In India’s biggest bank fraud case, the Central Bureau of Investigation registered a fresh case against DHFL this week, 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. Now some updates from the technology sector. Microsoft is pulling the plug on several AI-powered facial analysis tools, including one that it said could identify a subject’s emotion from pictures and videos. Experts have heavily criticised such “emotion recognition” tools, calling it unscientific to equate external emotional displays with internal feelings. They say facial expressions thought to be universal actually differed across populations. The decision to restrict public access to these tools forms part of a larger overhaul of the company’s policies on AI ethics. Microsoft’s updated Responsible AI Standards emphasise accountability to find out who uses the services and greater human oversight into where the tools are applied. And lastly, moving on to the aviation sector. 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. 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.
share