QBiz: Fresh Hurdles for GST Bill, ITC Gets a New COO and More

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GST Bill faced fresh political hurdles in Parliament on Monday. (Photo: Reuters)

1. SEBI Claims Pearl Agrotech Siphoned off $98 Million

On Monday, the Securities and Exchange Board of India claimed in the Supreme Court that Pearl Agrotech Ltd has drawn off $98 million in Australia, over a period of time.

Wanting to gain the confidence of the Australian government in the matter, the market regulator sought permission of the apex court to take help from their government to prevent the sale of PACL’s overseas assets.

Investors have moved an Australian court and sought injunction against assets sold by PACL for $140 million. Of the $140 million, injunction has been granted against $92 million.

Counsel, SEBI

On SEBI’s plea, the court has issued a notice to the Centre. Laying stress on its earlier order again, the court restrained PACL and its promoters from selling any of their Indian or overseas assets without the permission of the court appointed panel.

(Source: BloombergQuint)

2. How Did Economic Reforms Change the Average Indian’s Diet?

25 years after the economic reforms in India, how has liberalisation affected an average Indian’s diet?

If one takes a look at the Food Balance Sheet prepared by FAOSTAT, Food and Agricultural Organisation’s (FAO) database, one can look at a comparison for India from 1961 to 2013.

What the balance sheet reflects is how much of what food item (in raw form) is being used for food purposes.

On studying it closely, the conclusion to draw would be that the average Indian is consuming more after reforms.

(Source: Livemint)

3. Jinxed GST Bill Faces Fresh Political Hurdles

On Monday, the chances of early passage of the Goods and Services Tax Bill seemed bleak.

This was in light of renewed opposition from the Congress, the growing political disaffection among the BJP, the BSP and the SP as the Uttar Pradesh elections approach and the ongoing differences between the Centre and the States.

Tuesday’s meeting, will discuss the possible redrafting of some elements of the Constitution Amendment Bill, including the provision for an additional 1 percent tax on inter-state supply of goods.

(Source: Hindu Business Line)

4. Gold Bonds Garner Bids Worth Rs 156 Crore via Exchanges

The fourth portion of sovereign gold bonds which the Reserve bank of India (RBI) issued on behalf of the Central government saw bids worth Rs 156 crore via BSE and NSE.

While NSE got 8,000 applications worth 341 kg mobilising Rs 106 crore, BSE got 3,932 applications for 158.55 kg worth Rs 49.56 crore. When combined, the exchanges got 11,932 applicants and sold 500 kg of gold worth Rs 156 crore.

(Source: Economic Times)

5. India to Amend Existing Laws to Allow Online Sale of Medicines

After amending the Drugs and Cosmetics Act, India will allow sale of medicines online.

The government is currently forming a structure within which select medicines can be sold through the internet, said S Eswara Reddy, Joint Drugs Controller at the Central Drugs Standard Control Organisation (CDSCO).

Proposals under the new Drugs & Cosmetics Act, 2016 allow for sale of non-narcotic, non-psychotropic through the online route. The CDSCO is in favour of having a negative list of medicines that cannot be bought online within the Amendment to the existing Act.

(Source: Bloomberg Quint)

6. Sanjiv Puri New COO of ITC

Sanjiv Puri has been appointed Chief Operating Officer of the ITC group, bringing years of speculation around who would succeed its longest serving chairman, Yogesh Chander Deveshwar, to an end.

In a filing with the stock exchanges, the company said the board of directors, at a meeting on 22 July re-designated Puri as COO with immediate effect.

Puri’s elevation however is not a surprise, as he was moving closer to the job for a while.

(Source: Business Standard)

7. Nifty Mid-Cap Index Reaches All-Time High

Indian stocks returned to the 11-month high and several medium-sized companies made a record as continuous inflows from foreign investors resolved any investor concern that the rally may have outpaced the outlook for earnings growth.

Maruti Suzuki India Ltd, the largest automaker, climbed to a six-month high. State Bank of India (SBI) and ICICI Bank Ltd were among the biggest gainers on the S&P BSE Sensex.

Canara Bank Ltd was the best performer on the Nifty Midcap Index, which reached an all-time high.

(Source: Livemint)

8. Centre May Withdraw Coffee Act, Draft New Legislation

On Monday, Nirmala Sitharaman, Minister for State (Independent Charge) of Commerce and Industry Nirmala Sitharaman said in the Lok Sabha that the Central government is considering withdrawal of the Coffee Act, 1942, as it is “no longer serving the purpose,” on Monday.

Over the years, the role of the Coffee Board has changed and many provisions of the existing Act have become redundant, especially after abolition of the Coffee Pooling System in 1996.

Nirmala Sitharaman

She added that it had been proposed that the Act – which was enacted 70 years ago – be repealed and a new Coffee Bill, 2016 be enacted.

(Source: Hindu Business Line)

9. Govt Approves Payment of Rs 216 Crore to Lenders of Cancelled Coal Blocks

The government has given permission to pay Rs 216 crore to lenders of cancelled coal blocks, which is just over 2 percent of coal miners’ estimates of Rs 10,000 crore exposure of banks to the mines.

The designated authority for coal mine auctions will release the payment to settle dues of five banks including ICICI Bank, State Bank of India, Punjab National Bank, UCO Bank and IDBI Bank toward compensation of land and mine infrastructure.

(Source: Economic Times)