QBiz: UBL Seeks Legal Opinion, Govt Employees Defer Strike & More

All the top business stories of the day.

Vijay Mallya. (Photo: The Quint)

1. UBL Board Seeks Legal Opinion on SEBI’s Wilful Defaulter Rules: ET

The independent directors on the board of United Breweries Ltd (UBL), which has Heinekin and Vijay Mallya as the major shareholders, are seeking legal views on the rules governing wilful defaulter, according to The Economic Times report.

Vijay Mallya, currently chairman of UBL, has also legally challenged the application of the new rules by capital market regulator on wilful defaulters and their implications for his board position at UBL. His contention is that he is a shareholder and promoter of the company.

Mallya recently resigned from the role of chairman at other companies such as Sanofi and Bayer. The new SEBI regulations restrict the company and a director who is a wilful defaulter from accessing the capital markets, except under limited circumstances.

Also Read: How Vijay Mallya Became SBI’s ‘Wilful Defaulter’

2. Central Govt Employees Defer Strike over 7th CPC: Livemint

The Central Government Employee’s Union on Wednesday announced that they are planning to postpone the strike over the proposed salary hike under the 7th Central Pay Commission (CPC) recommendations.

According to a Livemint report, the union planned to defer the strike scheduled on 11 July, after the central government formally communicated to the unions that a high-level committee would consider their demand for minimum pay that’s over and above the level suggested by the 7th CPC.

The unions have been demanding Rs 26,000 minimum salary instead of the Rs 18,000 approved by the cabinet in June, based on the Seventh Pay Commission’s report.

Also Read: What Do the Central Govt Employees Think of 7th Pay Commission?

3. Soon, ATMs Will Cash a Bearer Cheque: HBL

In a pilot run, the ATMs in National Capital Region (NCR) will soon be able to cash a bearer cheque. According to The Hindu Business Line report, NCR Corp has set up a pilot ATM that has a feature to cash bearer cheque in the Gurgaon branch of IndusInd Bank.

The world’s largest ATM maker has built in the cash-dispenser a technology that transforms it into a bank teller.

When a cheque is inserted into the machine, it alerts a teller in the back office/call centre with an image of the cheque. The teller verifies the signature and once it is authenticated, the ATM dispenses the cash. The technology is part of NCR’s ATM-based product ‘Interactive Teller’ that enables the teller to control the machine remotely.

Also Read: A Third of India’s ATMs Do Not Work

4. Nepal Selling Rice Donated to Earthquake Victims: ET

The government of Nepal is selling thousands of tonnes of rice donated by China and Bangladesh to help earthquake victims despite aid agencies warning that survivors remain at risk of food shortages, according to The Economic Times report.

Initial estimates by the World Food Programme (WFP) said that around 1.4 million people were in urgent need of emergency food supplies, prompting governments to spring into action to help the desperately poor country.

According to the state-run Nepal Food Corporation (NFC), Dhaka and Beijing donated around 11,200 metric tonnes (11,020 tons) of rice, only 20 per cent of which was distributed by the government to quake victims.

Also Read: Nepal Earthquake Anniversary: A Journalist Recollects the Horror

5. Centre Directs States to Set Up Direct Benefit Transfer Cells: ET

The Modi government has asked the states to set up their own Direct Benefit Transfer (DBT) cells to make the process of delivering benefits more reliable and time-bound. According to The Economic Times report, the move appears to be inspired by the savings of Rs 28000 crore acquired by Centre through Direct Benefits Transfer.

The Centre has appealed to all states to do so since it is they which implement the schemes and are the ‘real interface for the beneficiaries’, cabinet secretariat has said in a letter to all state chief secretaries. In 2015-16, over 30,000 crore beneficiaries received over Rs 61,000 crore through DBT under 66 schemes.

6. Flipkart to Weed Out Non-Compliant Sellers: BS

The largest e-commerce firm in India, Flipkart, has decided to weed out the sellers who do not meet the parameters set by the online shopping platform, according to a Business Standard report. The firm has taken the step with a target to streamline its service and to improve customer experience.

Flipkart, said to have around 90,000 sellers on its platform, is shedding flab as it looks to become more frugal, as global rival Amazon breathes down its neck. The firm has started a Master Seller programme to promote a few large sellers who can sell products across categories and is charging lower commission rates from them.

The message to the sellers is clear – fall in line.

Also Read: From 20 June, Flipkart Users Get Only 10 Days to Return Product

7. Centre Invests More in Economy as Foreign Investment Less Than Expected: HBL

With private investments not coming in as expected, the Centre turned the big spender in the first few months of the financial year 2016-17 to pump-prime the economy, according to The Hindu Business Line report.

At Rs 90,000 crore, the Plan Expenditure in the first two months of the fiscal was the highest in the last five years; the spending is likely to have crossed Rs 1-lakh crore in the first quarter.

The Plan Expenditure for whole of 2016-17 is estimated at Rs 5.5-lakh crore, an increase of 15.3 per cent from the Budgeted target of Rs 4.65-lakh crore last fiscal.

Key spenders during the period included the Ministries of Rural Development and Human Resource Development as well as infrastructure ministries of highways, power and railways.

Transfers to States by the Finance Ministry also doubled to Rs 7,030 crore, while the focus on Swachh Bharat and clean drinking water seems to have increased.

Also Read: Gujarat & Delhi Most Investment Friendly; Bihar, Jharkhand Worst

8. Netflix Completes Uneventful Six Months in India: Livemint

Popular online streaming service Netflix completes six months in India on Wednesday. Its only big achievement so far has been the announcement of its first original series in the country based on novelist Vikram Chandra’s Sacred Games, according to a Livemint report.

The company has partnered with Phantom Films, a film studio founded by Anurag Kashyap, Madhu Mantena, Vikramaditya Motwane and Vikas Bahl to produce the series.

According to a top executive at a home-grown over-the-top (OTT) streaming platform, Netflix hasn’t made much of an impact in India yet. In the US it may be the market leader, but in India it faces several challenges.

Netflix did not divulge any figures on the number of subscribers it has signed up in India.

Also Read: In Asia, Netflix Trips on Regulation, Content, and Competition

9. Mahindra Revamps 2-Wheeler Business, Gives VRS to 250 Employees: HBL

Home-grown auto major Mahindra & Mahindra (M&M) on Wednesday said it will restructure its two-wheeler business, as the vertical was not giving the results that it had expected earlier, according to The Hindu Business Line report.

The company has already given voluntary retirement scheme (VRS) to 250 employees as part of the makeover.

Sales of M&M’s two-wheelers had declined by 12.7 per cent at 1,33,355 units in the last financial year. Although the scooter business performed well with models like Gusto, Rodeo and Duro to boast about, the motorcycle business did not fare well as the market did not approve Mojo and Centuro models.