QBiz: FinMin for Easing e-Retail FDI Curbs; Flipkart Eyes Funds
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1. Finance Ministry Backs Easing Curbs on FDI in E-Commerce
The finance ministry has backed the scrapping of restrictions on e-commerce companies that have overseas investment, such as those on directly offering discounts to customers, said an official. “This condition (directly or indirectly influencing discounts) is arbitrary,” the person said. “It unnecessarily creates confusion.”
The foreign direct investment (FDI) policy allows companies such as Flipkart and Amazon to function as market places or platforms for buyers and sellers to transact. But discounts, a critical element of the e-commerce business model, can only be offered by sellers, not the market places.
The finance ministry is of the view that this and other curbs have given rise to confusion and could be discouraging investments.
(Source: The Economic Times)
2. Reliance Jio Joins Amazon, Media Firms in Weighing Bid for IPL Digital Rights
Mukesh Ambani’s Reliance Jio Infocomm Ltd is among companies that have bought tender documents for digital rights to broadcast the Indian Premier League (IPL) cricket tournament, indicating its interest in bidding for the rights that will be up for sale next year, said a person with direct knowledge of the matter.
Star India Pvt Ltd, Zee Entertainment Enterprises Ltd and the current IPL rights holder Sony Pictures Networks India Pvt Ltd also purchased the tender documents, said a senior Board of Control for Cricket in India (BCCI) official who spoke on condition of anonymity.
(Source: Livemint)
3. Docomo Moves US Court To Enforce London Court’s Penalty Against Tatas
Japanese telecom firm NTT Docomo on Friday said it has moved a US court to force its estranged Indian partner Tata Group to pay $1.2 billion awarded as damages by an international arbitration for breach of contract.
Tata Sons said it will resist enforcement of the arbitration award in India and also other jurisdictions, as it has been barred by Indian law and public policy for paying damages awarded for breaching a contract to buyback Docomo shares in their joint venture at a pre-agreed price.
(Source: BloombergQuint)
4. After Festive Sales Boost, Flipkart Eyes Fresh Funds
After generating bumper sales during its flagship Big Billion Days (BBD) sale this month, Flipkart plans to hit the market to raise a new, large round of funds before the end of the year, three people familiar with the matter said.
Flipkart will look for new investors to lead the next round, the three people said on condition of anonymity. The company hasn’t decided the final amount yet, but will look for at least $500 million and up to $1 billion in fresh funds, the three said.
(Source: Livemint)
5. Endurance Technologies IPO Sees Huge Demand, Subscribed 43.8 Times On Final Day
Auto component maker Endurance Technologies' initial public offering was oversubscribed 43.75 times till 6 pm on the last day of the bidding on Friday. The company's IPO received bids for 75,37,60,020 shares against the total issue size of 1,72,29,118, data available on the National Stock Exchange showed.
The quota reserved for qualified institutional buyers was subscribed 53.4 times, while that of non-institutional investors got subscribed 127.1 times. The portion reserved for retail investors was subscribed 2.5 times.
Endurance Technologies raised over Rs 348 crore by allotting shares to anchor investors.
(Source: BloombergQuint)
6. IRCTC Plans Insurance Cover for Mobiles, Laptops on Trains
Buoyed by the success of the 92 paise travel insurance policy for passengers, IRCTC is now planning to launch another scheme for passengers’ gadgets like mobile phones and laptops.
The first round of meeting in this regard was held between IRCTC officials and insurance companies, IRCTC chairman and managing director AK Manocha said.
“Offering this policy to credit card holders or government officials in the initial stage is one of the ideas we have floated to mitigate cases of false claims,” he said.
Manocha wishes to make this scheme available both in cases of rail accidents as well thefts.
(Source: Livemint)
7. Easy Loans for Start-Ups: DIPP to Send Proposal on New Credit Scheme Soon
The industry department will soon take a proposal to the cabinet to create a credit guarantee scheme of Rs 2,000 crore to encourage banks to lend to start-ups in India without collaterals, Department of Industrial Policy and Promotion (DIPP) secretary Ramesh Abhishek said on Friday.
Speaking at the India Economic Summit organised by the World Economic Forum, Abhishek said his department is also trying to fast-track the rather slow disbursement of funds through the fund of funds created for start-ups with a plan to put Rs 10,000 crore in four years.
(Source: Livemint)
8. L'Oreal May Face Action for Further Violation: FDA
The Maharashtra Food & Drug Administration (FDA) has said the Indian unit of French beauty major L'Oreal may face suspension, cancellation of licence and prosecution if further violations are found during investigation of its products.
The statement comes a day after the FDA issued a notice of recall to the company, saying two of its fairness creams had mercury in them. The notice of recall was issued after a second test was conducted on the two products using the method of analysis adopted by L'Oreal.
(Source: Business Standard)
9. Uber India Pitches for Deregulation of Transport Industry
Taxi-hailing company Uber India pitched on Friday for deregulation of the transport industry to ensure a level-playing field.
“I urge the government that let’s not put onerous regulations that might have existed before. Let’s deregulate and make it a level playing field for everybody,” Uber India president Amit Jain said at a panel discussion on ‘Cracking India’s Urban Code’ at the India Economic summit of the World Economic Forum.
Uber has seen stiff resistance from local black and yellow taxis and has had several run-ins with the government over pricing and permits.
(Source: Livemint)
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