1. Angel Tax Breather: Scheme to Accredit Investors in Works
India is eyeing a new framework for recognising investors so that they won’t be subject to the so-called angel tax provisions on their funding of startups. The Department for Promotion of Industry and Internal Trade (DPIIT) is looking to put in place such a regime so that investors will be able to fund startups without any limit.
“We are examining if a mechanism can be created for accrediting investors,” said a government official aware of the matter, details of which are being discussed.
The DPIIT will hold discussions with stakeholders on the proposed framework, which will help startups raise funds from accredited investors without any hitch. The accreditation regime is being envisaged as a simple procedure, said the person cited above.
(Source: The Economic Times)
2. Mid-level IT Employees Staring at Another Round of Pink Slips
Mid-level IT employees in the software services sector could be staring at another round of job losses as Artificial Intelligence (AI) takes over their roles, especially in the area of project management.
In the $167-billion Indian IT industry, project managers constitute 5-7 percent of the 3.8-million workforce. Though all of them may not be rendered redundant, a large chunk of them might struggle to retain their jobs because of the increasing role played by AI.
(Source: The Hindu Business Line)
3. Oyo Checks in Rs 1,400 Crore, You Get a More Comfortable Stay
Hospitality chain Oyo Hotels and Homes announced an investment of Rs 1,400 crore ($200 million) in India and launched the Collection O brand targeted at millennial travellers on Tuesday, 12 March.
The funds will be directed to “further double down on expansion plans, improve customer experience and ensure increase in continued asset owner success,” the company said.
The Economic Times had reported on 24 December 2018 that the company, which was in the process of raising $1 billion, planned to invest $200 million from the funding round in India.
(Source: The Economic Times)
4. Etihad Quiet on Interim Funding Plan; Jet Airways Grounds Four More Planes
Etihad Airways has kept the Jet Airways rescue plan on hold even after a memorandum of understanding (MoU) between the two partners, it is learnt.
In an indication that hurdles remain before the lenders-led resolution plan can be executed, the Etihad board did not take a decision on the proposed deal, especially on interim funding, in a meeting on Monday, 11 March, sources in the know said.
Jet Founder-Chairman Naresh Goyal, in a recent communication to Etihad group CEO Tony Douglas, had made it clear that the Abu Dhabi-based carrier must infuse Rs 750 crore urgently as planes were getting grounded and dues to lessors and staff were pending.
(Source: Business Standard)
5. Industrial Growth Slows Down in Jan
Industrial growth slipped in January, failing to build on modest recovery in the month before while consumer inflation inched up in February though remaining well below the central bank’s target, strengthening the case for another rate cut in the next monetary policy review.
Inflation, as measured by the Consumer Price Index (CPI), rose to a four-month high of 2.57 percent from 1.97 percent in January, data released by the statistics office on Tuesday, 12 March, showed.
The simultaneously released Index of Industrial Production (IIP) showed a 1.7 percent rise in industrial output in January. Industrial growth was 2.6 percent in December, revised upward from 2.4 percent estimated initially.
(Source: The Economic Times)
6. SBI Cleaning House; Puts Rs 2,338 Crore Bad Loans on Sale
State Bank of India (SBI) on Monday, 11 March, put on sale six non-performing accounts (NPAs) worth Rs 2,338 crore on sale, including its exposures to Indian Steel Corp (Rs 929 crore) and Jai Balaji Industries (Rs 859 crore).
All six assets are being offered on a 100 percent cash basis, with haircuts ranging between 29 percent and 76 percent. The other accounts up for sale are Kohinoor Planet Construction and Gati Infrastructure (Rs 251 crore), Mittal Corp (116 crore), MCL Global Steel (100 crore) and Shree Vaishnavi Ispat (Rs 82.52 crore).
The auction for Jai Balaji, Indian Steel Corporation, MCL Global Steel, Kohinoor Planet and Gati are being held as per the Swiss challenge method, based on existing offers from bidders who will have the right to match the highest bid.
(Source: Financial Express)
7. RBI to Infuse Rs 12,500 CR Via OMOs
The Reserve Bank of India (RBI) on Tuesday, 12 March, said it would infuse Rs 12,500 crore into the system through open market operations on Thursday, 14 March.
Based on an assessment of prevailing liquidity conditions and also of the durable liquidity needs going forward, the RBI has decided to conduct purchase of the government securities under open market operations (OMOs) for Rs 12,500 crore on 14 March, the central bank said.
The purchase will happen through multi-security auction using the multiple price method.
(Source: PTI)
8. RCom Lenders Contend to Have First Right Over IT Refunds
Lenders of Reliance Communications (RCom) on Tuesday, 12 March, contended before the NCLAT that they have the first right over Rs 260 crore, which the debt-ridden company has received as the income tax refund.
The SBI along with other members of Joint Lenders' Forum (JLF) said that under the RBI guidelines, they have the right over the retention and trust account in which the refunds have been deposited.
A two-member bench headed by Chairman Justice S J Mukhopadhaya will continue the hearing on Wednesday, 13 March, in the matter.
(Source: PTI)
9. Zomato Now Valued at $3.6 Billion, Ahead of Swiggy
HSBC Global Research has valued Zomato at $3.6 billion, or about Rs 25,000 crore, around 70 percent higher than the valuation ascribed to the restaurant discovery and food-delivery firm when it raised capital recently.
The jump in valuation also pushes Zomato ahead of its fierce rival Swiggy that was valued at $3.3 billion post a $1 billion funding it announced in December.
The brokerage arm of diversified financial services firm HSBC has upped Zomato’s valuation while taking stock of its publicly traded shareholder InfoEdge, which holds 26 percent in the Gurugram-headquartered Zomato.
In a detailed report on InfoEdge, HSBC said Zomato’s business has changed fundamentally, with food delivery now contributing about 70 percent of total revenue.
(Source: The Economic Times)
(At The Quint, we question everything. Play an active role in shaping our journalism by becoming a member today.)