Government to widen probe into irregularities at National Stock Exchange
The central government may rope in multiple agencies to widen the probe into the irregularities at the National Stock Exchange during the tenure of its former chief Chitra Ramkrishna. The income tax department conducted searches at the home of Ramkrishna and former group operating officer Anand Subramanian in Mumbai to investigate tax evasion charges against them.
Why it’s important: The Securities and Exchange Board of India has charged Ramkrishna and others with governance lapses. In a bizarre development, it was revealed last week that Ramkrishna took key decisions at the National Stock Exchange from 2013 to 2016 on the advice of a Himalayan yogi.
India launches green hydrogen mission to reduce fossil fuel use
India has unveiled a green hydrogen policy that aims to provide cheaper renewable power, fee waivers for interstate electricity transmission for 25 years for projects commissioned before June 2025, land in renewable energy parks, and big manufacturing zones.
Why it’s important: The policy aims to wean Indian industry from fossil fuels by providing several incentives for manufacturers and consumers of green hydrogen. Big businesses like Reliance Industries, Adani Enterprises, the Acme Group and ReNew Power would be able to utilize green energy capacity to manufacture green fuels. Businesses across the value chain are expected to benefit.
Row erupts on localisation in proposed data protection law
Indian companies such as Reliance Industries and Paytm were opposed to international media companies like Google, Facebook, and Disney on the contentious issue of data localization in the proposed data protection bill at a public policy committee meeting of the Internet and Mobile Association of India.
Why it’s important: The government is to go back to the drawing board to completely rewrite the proposed law on data privacy to keep up with technological developments. The stances of local and foreign companies are expected given their business imperatives and convenience.
India’s banks lose Rs 44,000 crore on loans to local shipyards
Indian banks have lost around Rs 440 billion in the Indian shipyard industry by lending to three large companies. While exposure to ABG Shipyard, the biggest defaulter, was around Rs 230 billion, it was Rs 125 billion in Reliance Naval and Engineering, earlier known as Pipavav Shipyard, and another Rs 85 billion in Bharati Shipyard.
Why it’s important: Despite multiple debt restructuring, these private companies have failed to return to profitability. The fate of private shipyards remains uncertain because of unresolved issues and customers cancelling orders, choosing state-owned firms instead.
Demand for affordable homes to remain strong in country
Housing affordability in the Indian real estate market is at their highest level. Affordability would not be adversely impacted in the near term as incomes are rising faster than real estate prices, according to Deepak Parekh, chairman of Housing Development Finance Corporation, India’s largest private mortgage lender. The mortgage to GDP ratio in India is still low at 11 percent, he said.
Why it’s important: The residential property market has remained muted for the past several years, with many projects in the largest markets in Mumbai and the national capital region remaining unsold. This might change as demand is rising from homebuyers and not speculators, which was the case earlier.
Cap for UPI payments to be raised for retail investors in LIC IPO
The central government has asked Indian banks to raise per transaction limit for UPI payments to Rs 2 lakh to ensure applications by retail investors for LIC’s initial public offering through the digital payments route are successfully processed.
Why it’s important: A working group of the Department of Investment and Public Asset Management has found that there were numerous transaction failures. Discussions with the National Payments Corporation of India has revealed that such failures were due to per transaction limits imposed by individual banks.
Restaurants plan business expansion as coronavirus retreats
After a harrowing two years when business suffered due to the Covid-19 pandemic, eateries are planning expansion as demand for in-person dining and home deliveries return as many state governments have eased curfews and mobility restrictions.
Why it’s important: The hospitality sector was among the hardest hit due to the pandemic, and many small outlets have gone out of business. While some of them will find it difficult to revive their customs, many of the restaurant chains are hopeful that there would be a change in their fortunes soon.
Consumer durables impacted by Omicron wave in fiscal third quarter
The consumer durables industry was impacted in the three months to December. The combined net sales of 12 consumer durable goods companies grew by 11.2 percent on an annualized basis to Rs 136.2 billion in the third quarter, slower than the 25 percent year-on-year expansion seen in the previous four quarters, according to Capitaline data.
Why it’s important: The impact on business was due to fewer people stepping out to visit shops due to the third wave of the Covid-19 pandemic driven by the Omicron variant. Things are set to improve in the near term as the wave recedes and restrictions are eased.
Goldman Sachs sells partial stake in ReNew Power
Goldman Sachs, the single-largest shareholder of ReNew Power, has shaved its stake in ReNew Energy Global Power, the Nasdaq-listed parent, in favor of Canada Pension Plan Investment Board to comply with regulatory requirements in the US.
Why it’s important: The say of the Canadian pension fund will rise in ReNew Power, which is expecting rapid business expansion as India provides multiple incentives to wean the country from its dependence on fossil fuels, in keeping with its climate goals.
The monk who helped run a stock exchange
Who is the faceless yogi in the bizarre story of the National Stock Exchange and its former chief executive Chitra Ramkrishna? The exchange and the forensic auditor EY say that group operating officer Anand Subramanian and the mysterious yogi were the same person, but the market regulator and statements by Ramkrishna and her controversial hire Subramanian indicate there was a third person.
Why it’s important: The truth behind the irregularities at the National Stock may never be fully known. It is now important for the authorities to restore investor confidence and see to it that such transgressions and preferential treatments are not repeated.
