QBiz: Jio Probes Possible User Info Leak; Slow Q1 for IT Expected
The Quint brings you important business stories from the previous day.
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1. Reliance Jio Probing Possible Data Breach of Millions of Subscribers
Reliance Jio on Sunday said it was probing a report on a website that sensitive details, including mobile numbers and Aadhar number of millions of its subscribers, had been allegedly leaked on the internet, but argued that the claim was "un-verified" and "unsubstantiated".
The most recent entrant into India's competitive telecom space said in a statement that it had informed law enforcement agencies about the claims of the website and would follow up with "strict action". It assured subscribers that their data with the company was safe.
(Source: Economic Times)
2. Expect Q1 Performance of IT Companies to be Muted, Say Experts
Top IT firms in the country are expected to report muted financial performance for the April-June quarter, with margins coming under pressure on account of rupee appreciation and wage revision, according to analysts.
Indian tech majors will announce their financial results this week, starting with Tata Consultancy Services Ltd. on 13 July.
Its smaller peers, Infosys Ltd. and Wipro Ltd. are scheduled to announce their numbers on 14 July and 20 July, respectively.
(Source: BloombergQuint)
3. Govt to Make MRP, Expiry Date Mandatory on Goods Sold Online From Jan 2018
To protect online consumers, the government has made it mandatory for e-commerce companies from January 2018 to print not only the MRP on goods, but also information like expiry date and customer care details.
An amendment in this regard has been made to the Legal Metrology (Packaged commodities) Rules, 2011 by the consumer affairs ministry last month.
A six-month deadline has been given to the companies to comply with the new rule.
(Source: Business Standard)
4. 71 Pending FDI Proposals Put on Fast Track; Decision Likely in 8 to 10 Weeks
As many as 71 pending foreign investment proposals, including those of Amazon, Grofers, Urban Ladder, One97 (which runs Paytm) and Jasper Infotech (Snapdeal), are being fast-tracked.
Many of these had been pending with the recently abolished Foreign Investment Promotion Board since 2015.
The Department of Industrial Policy and Promotion (DIPP) will now distribute them to the relevant ministries and check the status of each pending application at a joint review meeting later this month.
(Source: Economic Times)
5. House Panel Asks Govt for Details on Air India Disinvestment
A parliamentary panel has sought details from the government on giving in-principal approval to its divest stake in Air India even as modalities are being worked out for the proposed divestment to revive the debt-laden national carrier.
Officials from the ministries of finance and civil aviation as well as from Air India are expected to provide views this week to the Parliamentary Standing Committee on Transport, Tourism and Culture.
(Source: Business Standard)
6. CBEC Relaxes Norms on Bonds Under GST to Help Exports Take Off
In a significant relief for exporters who have been facing difficulties under the new tax regime, the Finance Ministry has now relaxed rules for Goods and Services Tax and has said that exports can continue under existing bonds and letters of undertaking till 31 July. Exporters can now submit bonds or LUTs in the revised format for GST by the end of the month.
7. India Gets G-20 Praise on Startup Funding, Derivative Reforms
Acknowledging steps being taken by India for sustainable and inclusive growth as well as to support the global economy, the G-20 has praised the initiatives in the country for promoting ease of doing business, startup funding and labour reforms.
In its Hamburg Action Plan, adopted at the G-20 summit of leaders from the world’s 20 largest economies, the group also noted that in the financial sector, India is popularising a number of derivative instruments in exchanges or electronic trading platforms as part of measures to enhance resilience of its economy.
It further said that India is facilitating external commercial borrowings (ECBs) by startups in order to encourage innovation and promote ease of doing business, as part of the efforts being taken by the G-20 members this year for maintaining momentum on structural reforms and sustainable growth.
(Source: BloombergQuint)
8. GPS in Feature Phones a Must, Says Centre; Prices May Rise as Much as 50%
Citing consumer safety, especially of women, DoT has rejected handset makers’ demand for using alternative technology instead of GPS in low cost mobiles, while the industry warned that the decision will push up prices of such feature phones by over 50 per cent.
The government has made it mandatory to install Global Positioning System (GPS) in all mobile phones, including feature phones that will be sold in India, from 1 January 2018 so as to locate subscribers in emergency situations.
“GPS is the main tool regarding location details of the subscriber in emergency, so government has decided to implement it in all the mobile phone handsets from 1 January 2018 in a positive manner,” the DoT has said in a reply to industry body Indian Cellular Association (ICA).
(Source: Financial Express)
9. IDFC-Shriram Merger Deal Complex, May Be Painful: Analysts
The proposed merger between IDFC Ltd and Shriram Capital will not only be complex, but will also involve a painful transition, said analysts. They pointed out a range of pressure points including regulatory hurdles and a potential asset-liability mismatch for IDFC Bank Ltd, apart from cultural and people challenges.
According to the three-tier merger structure announced on Saturday, the retail arm Shriram City Union Finance Ltd will be merged with IDFC Bank Ltd; Shriram Transport Finance Ltd will become a fully owned unit of IDFC Ltd and be delisted; and IDFC would also become the holding company for the Shriram group’s insurance businesses.
(Source: Livemint)
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