NSE Indices tweaks methodology of Nifty equity indices for corporate mergers

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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NSE Indices, an arm of the National Stock Exchange (NSE), on Wednesday tweaked the methodology of Nifty equity indices for handling corporate actions involving demerger.

The move is expected to help in reducing churn in index constituents resulting from corporate action involving demergers, NSE Indices said in a statement.

Under the new methodology, the demerged company will be retained in the Nifty index if Special Pre Open Session (SPOS) is conducted by the exchange.

Additionally, the spun-off business would be included in the index at a constant price — which is the difference between the demerged company’s closing price on T-1 day and the price derived during SPOS on the ex-demerger date.

T-1 day wherein T is the ex-demerger date.

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The spun-off business, which is the newly listed entity, would be removed from the index after the end of the day on the third day of its listing. If in the first two days, the spun-off business hits the price band in each day, then the exclusion date would be deferred by another three days.

If for two consecutive days the spun-off business does not hit the price band then it would be removed after the third trading day of such observation.

In case on the third-day, the spun-off entity hits the price band the exclusion of such stock would not be deferred, the statement said.

If a SPOS is not conducted by the exchange, the demerged company would be removed from the index at the beginning of T-1 day by making a suitable replacement in case of indices with a fixed number of companies.   No inclusion will be made in the case of indices with a variable number of companies.

Under current rules, the demerged company is excluded from the index, and the same is replaced with another eligible stock, soon after the equity shareholders approve of a scheme of arrangement for the demerger of a company.  Moreover, the demerged company is excluded from the index soon after the equity shareholders approve a scheme of arrangement for the demerger of a company without making a replacement in the index.

The new framework will be applicable to scheme of arrangement of all companies involving demerger which may be approved by equity shareholders of respective companies on or after April 30, NSE Indices said.

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Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Fly91 gets no objection certificate from government to start flights

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Fly91, which plans to operate a regional carrier, has received the no objection certificate from the Ministry of Civil Aviation (MoCA), according to officials.

The venture Just Udo Aviation Pvt Ltd, which will operate flights under the brand ‘Fly91’, is promoted by former Kingfisher Airline’s senior executive Manoj Chacko and former Fairfax India head Harsha Raghavan, among others.

Chacko told PTI that the regional airline will be headquartered in Goa and will operate a fleet of ATR 72-600 aircraft. A senior official said the ministry has given the No Objection Certificate (NOC) for the proposed airline.

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With the receipt of NOC, the airline will soon start the process for applying for Air Operator’s Permit with the Directorate General of Civil Aviation (DGCA), Chacko, one of the promoters, said.

The venture, which has an initial capital of Rs 200 crore, plans to start operations in the December quarter this year with two or three ATR 72-600 aircraft, Chacko said.

According to him, the airline plans to have six planes by the end of the first year of operations and 12 by the end of the second year of flying. The airline, which will mainly fly between Tier II and III cities, aims to connect around 11 cities in the first year of operations, Chacko said.

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Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Imposing tax on electricity generation illegal: Power Ministry warns states 

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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In a terse warning to all states and Union Territories, the Ministry of Power has asked not to levy or impose any tax or duty on generation of electricity especially from hydro projects. In a communique to all States’ chief secretaries on Wednesday, the ministry also raised the issue of imposition of a water cess, noting that there were no provisions in the Constitution.

The communique said, “It has come to notice that some State Governments have imposed taxes or duties on generation of electricity. This is illegal and unconstitutional. Any tax/duty on generation of electricity, which encompasses all types of generation viz. thermal, hydro, wind, solar, nuclear etc is illegal and unconstitutional.”

“Some States have imposed taxes/duties on generation of electricity under the guise of levying a cess on the use of water for generating electricity. However, though the State may call it a water cess, it is actually a tax on the generation of electricity – the tax is to be collected from the consumers of electricity who may happen to be residents in other state,” the Ministry noted.

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“This is because electricity generated within the territory of one State may be consumed in other States and no State has the power to levy taxes/duties on residents of other States,” the communique added.

States are empowered by the Constitution to levy taxes on consumption or sale of electricity in their jurisdiction, but this does not include the power to impose any tax or duty on the generation of electricity. However, though the state may call it a water cess, it is actually a tax on generation of electricity – the tax is to be collected from the consumers of electricity who may happen to be residents in other state.

Most of the hydro-electric plants in states are located /proposed to be developed on Inter-State Rivers. Any imposition of tax on the non-consumptive use of water of these rivers for electricity generation is in violation of provisions of the Constitution, the ministry argued.

Entry-53 of List-II (State List) authorizes states to put taxes on consumption or sale of electricity in its jurisdiction. This does not include the power to impose any tax or duty on the generation of electricity.

Article 286 of the Constitution explicitly prohibits states from imposing any taxes or duties on supply of goods or services or on both where the supply takes place outside the state.

Articles 287 and 288 prohibit the imposition of taxes on consumption or sale of electricity consumed by the central government or sold to the central government for consumption by the government or its agencies.

As per Entry-56 of the Union List of the Constitution, regulations of issues related to Inter-State Rivers come under the purview of the Centre.

Therefore, the ministry said there is no rationale for levy of water cess or air cess.

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KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

KV Kamath praises RBI— says it has not made single misstep in past few years

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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KV Kamath, the veteran banker and chairman of the National Bank for Financing Infrastructure and Development (NaBFID), recently praised India’s monetary policies. According to Kamath, India is taking the right steps when it comes to interest rates, and the Reserve Bank of India (RBI) has not made a single misstep in the past few years. Kamath’s praise for India’s monetary policies is a clear indication of the confidence he has in the country’s economy.

However, Kamath also expressed concern about the West and their monetary policy. He believes that their policies could have a negative impact on the global economy. Kamath’s comments highlight the need for countries to work together to ensure that their policies are aligned with the goals of global economic growth.

Also Read: Exclusive | KV Kamath doesn’t foresee a US-like bank crisis in India

One of the primary drivers of growth in India is domestic consumption. Kamath believes that India’s demographic gives the country a unique advantage in this regard. India needs a young population that can both build and consume. According to Kamath, job creation is not a concern, as back offices are being set up in India, which will lead to the creation of more jobs.

Kamath also stressed the need for better risk management. He believes that there is a need to educate both corporate and individual borrowers about the risks involved in borrowing. According to Kamath, regulators must spell out the risks properly, and there needs to be a better understanding of risk.

Watch video for entire conversation.

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Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Operation Kaveri | First flight carrying 360 Indian evacuees lands in New Delhi

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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India welcomed its first batch of 360 evacuees on Wednesday as a flight from Saudi Arabia’s Jeddah arrived in New Delhi under Operation Kaveri. The evacuees have been brought back from conflict-torn Sudan.

India’s External Affairs Minister S Jaishankar took to Twitter to give this information.

India welcomes back its own. #OperationKaveri brings 360 Indian Nationals to the homeland as first flight reaches New Delhi. pic.twitter.com/v9pBLmBQ8X

— Dr. S. Jaishankar (@DrSJaishankar) April 26, 2023

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In the video posted by ANI, returned evacuees can be heard chanting “Bharat Mata Ki Jai”, “Indian Army Zindabad” and “PM Narendra Modi Zindabad”. Several evacuees that ANI spoke to, thanked the ruling dispensation for their swift response to the crisis.

“I went there for an IT project and got stuck there. Embassy and the govt also helped a lot. Around 1000 people are present in Jeddah. Govt is doing fast evacuation,” says Surender Singh Yadav, an Indian national who returned from Sudan.

#WATCH | Delhi: “I went there for an IT project and got stuck there. Embassy and the govt also helped a lot. Around 1000 people are present in Jeddah. Govt is doing fast evacuation,” says Surender Singh Yadav, an Indian national who returned from Sudan pic.twitter.com/TGxyVKfYUn

— ANI (@ANI) April 26, 2023

“Indian govt supported us a lot. It’s a big thing that we reached here safely as it was very dangerous. I thank PM Modi and Indian Govt,” says an Indian woman at Delhi’s Indira Gandhi International (IGI) Airport.

Earlier, CNBC-TV18 reported that around 534 Indians have been evacuated from violence-hit Sudan in overnight operations. As per sources, two Indian Air Force (IAF) aircraft and one navy ship are stationed in Port Sudan.

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SBI Life Q4 Results | Profit jumps 15% to Rs 780 crore as premiums rise

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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The shares of SBI Life Insurance Company Ltd  jump 1.6 percent to Rs 1,136 on quarterly numbers. The private sector insurer on Wednesday reported a 15 percent year-on-year (YoY) jump in net profit at Rs 780 crore for the fourth quarter that ended March 31, 2023. In the corresponding quarter last year, the company posted a net profit of Rs 680 crore.

Brokerage firm Morgan Stanley maintains a overweight stance on the shares of SBI Life with a target price of Rs 1,650 per share. Value of new business (VNB) better-than-expectations owing to a sharp decline in proportion of Unit Linked Insurance Plan (ULIP) in Annualised Premium Equivalent (APE).

The value of the new business (VoNB) recorded a growth of 23 percent at Rs 1,440 crore for the March quarter. It was Rs 1,174 crore a year ago. The company said its VNB margin expanded to 31.6 percent, up from 28.4 percent a year ago, it said in an exchange filing.

VoNB is the present value of expected future earnings from new policies written during a specified period. It reflects the additional value expected to be generated through the writing of new policies during a specified period.

Also Read: Voltas Q4 net profit slides 21% but revenue up 11% as results miss estimates

The company maintained its leadership position in individual rated premium of Rs 15,220 crore with 22.3 percent private market share in FY23. It witnessed strong growth in individual new business premiums by 27 percent to Rs 20,910 crore in FY23.

The New Business Premium (NBP) grew by 16 percent to Rs 29,590 crore in FY23 aided by growth in regular premium business by 17 percent, the company said. The new business premium is the insurance premium due in the first policy year.

The Protection New Business Premium has increased by 19 percent from Rs 3,050 crore in FY22 to Rs 3,640 crore in FY23 due to growth in individual protection business by 6 percent to Rs 1,000 crore and growth in group protection business by 25 percent to Rs 2,640 crore in FY23.

The Gross Written Premium grew by 15 percent to Rs 67,320 crore in FY23 mainly due to 17 percent growth in Regular Premium (FYP) and 13 percent growth in Renewal Premium in FY23, it said.

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The company’s 13th-month persistency (based on premium considering single premium and fully paid-up policies and group business where persistency is measurable) is 88.91 percent in FY23 against 88.35 percent in FY22. Persistency ratio reflects the number of policyholders who paid their renewal premium.

Assets under management (AUM) grew by 15 percent from Rs 2,67,410 crore as on March 31, 2022, to Rs 3,07,340 crore as on March 31, 2023, with a debt-equity mix of 71:29.

SBI Life is a joint venture between the country’s largest lender State Bank of India (SBI) and BNP Paribas Cardif SA, a global insurance company in Europe.

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Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

India witnesses highest patent filings in FY23, over 58% by domestic firms

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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With over 82,000 patent filings in the last financial year, India has bettered its year-on-year growth record by over 13 percent. This includes 58 percent of filings done by domestic firms.

Stating that the National IPR awareness mission had benefited stakeholders, Controller General of Patents, Designs and Trademarks, Professor Dr Unnat Pandit told CNBC-TV18 that the 19 new Intellectual Property (IP) chairs have been announced on the occasion of World Intellectual Property Day, taking the earlier number of 14 such chairs to 33.

Stressing the need to protect IP rights for all sections of individuals and companies, he said that 22 new TISC (Technology and Innovation Support Centres) have been announced to offer support to individual patent filers, SMEs and start-ups.

While financial handholding is being offered to upcoming researchers for support; the number of IP facilitators, commonly known as IP MITRAs, has been increased from 465 to 2000 under the Scheme for facilitating start-ups Intellectual Property Protection (SIPP) to facilitate the grant of IP rights.

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Pointing to an 82 percent hike in design filings, Pandit stated that India’s move towards IP-driven development will assume more importance in the run-up to 2047 as the country has started releasing the First Examination Reports (FERs) of patents in 4.8 months compared to the time of 6 months taken by many developed nations.

India is looking to have an increased number of examiners and controllers to optimise Level 2 grants within a few months from the current period of over a year.

Speaking at a CII event earlier in the day, Deputy Commissioner of Japan’s patent office Masanori Katsura emphasised the appropriate use of IP to further strengthen India in building new technological innovations across borders.

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Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Can’t treat Allopathy, Ayurveda doctors at par, says SC, sets aside Gujarat HC order

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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The Supreme Court on Wednesday set aside a Gujarat High Court order, which had held that Ayurveda practitioners working in government hospitals should be treated at par with allopathy doctors and entitled to equal pay.

The apex court was hearing a batch of appeals challenging a 2012 Gujarat High Court order which had held that Ayurveda practitioners are entitled to be treated at par with doctors with MBBS degrees.

While recognising the importance of Ayurveda practitioners and the need to promote alternative or indigenous systems of medicine, the top court said that it cannot be oblivious of the fact that both categories of doctors are certainly not performing equal work to be entitled to equal pay.

A bench of Justice V Ramasubramanian and Justice Pankaj Mithal said allopathy doctors are required to perform emergency duties and provide trauma care.

”Nature of the science that they practise and with the advancement of science and modern medical technology, the emergency duty that allopathy doctors are capable of performing and the trauma care that they are capable of providing cannot be performed by Ayurveda doctors,” it said.

The apex court said it is also not possible for Ayurveda practitioners to assist surgeons performing complicated surgeries while doctors with MBBS degrees can perform the task.

”We shall not be understood to mean as though one system of medicine is superior to the other. It is not our mandate nor within our competence to assess the relative merits of these two systems of medical sciences. As a matter of fact, we are conscious that the history of Ayurveda dates back to several centuries.

”We have no doubt that every alternative system of medicine may have its pride of place in history. But today, the practitioners of indigenous systems of medicine do not perform complicated surgical operations. A study of Ayurveda does not authorise them to perform these surgeries. Similarly, a post-mortem or autopsy is not carried out by/in the presence of Ayurveda doctors,” it said.

The apex court said it is common knowledge that during out-patient days in general hospitals in cities or towns, doctors with MBBS degrees are made to attend to hundreds of patients, which is not the case for Ayurveda practitioners.

”Therefore, even while recognising the importance of Ayurveda doctors and the need to promote alternative/indigenous systems of medicine, we cannot be oblivious of the fact that both categories of doctors are certainly not performing equal work to be entitled to equal pay,” it said.

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Boeing CEO apologises to airlines for 737 Max delays

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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The American aircraft manufacturer has upped its monthly production plan to 38 planes from 31. The company expects to deliver upto 450 737 planes this year.

Boeing CEO Dave Calhoun has apologised to customers for the delay in delivery of its popular 737 Max aircraft after learning about a manufacturing issue in the aft fuselage section of the plane.

“The worst part of the notice of the defect that we got is the timing. It is right at the centre of their (airlines) summer schedules and we have to differ deliveries for that period, it costs some real money, so apologies to everyone, we are working very closely with them’, Calhoun told CNBC in an exclusive interview.

Air India & Akasa Air are the two Indian airlines that have placed orders for the 737 Max aircraft and sources said their expansion plans are likely to be hit as Boeing reschedules deliveries.

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Air India was expecting some 737 Max planes out of the 190 it ordered to be delivered this year itself.

Akasa Air too is awaiting 53 of the 72 aircraft it had ordered that are to be delivered by 2027.

But according to the Boeing CEO, these delays are for a short period and their annual delivery guidance is on track.

“We still believe we are within that guidance, we are clearly going to differ some things from the second quarter to third quarter & a bit to fourth quarter, but on balance we think we are in a pretty good shape to meet that guidance,” he said.

The American aircraft manufacturer has upped its monthly production plan to 38 planes from 31. The company expects to deliver up to 450 737 planes this year.

“As demand surges across our markets, we must focus together on execution and meeting our customer commitments” the CEO told employees.

On the financial front, Boeing narrowed its losses in the first quarter to $425 million, much lower than the $1.2 billion loss it reported in the same quarter last year.

The company’s sales jumped 28 percent year on year backed by strong aircraft demand worldwide. That boosted revenue in the commercial airplane unit rising 60 percent to $6.7 billion. Overall revenue stood at $17.92 billion in the March quarter.

Boeing has reiterated it expects to reach adjusted free cash flow for the year of between $3 billion and $5 billion.

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Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

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Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Startup Street | FuelBuddy’s expansion strategy, ONDC boosting digital consumption

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Doorstep delivery startup FuelBuddy is looking to expand its presence across India and Southeast Asia and soon start operations in the UAE market, after it recently raised $20 million. The New Delhi-based startup, which was founded in 2016, is also looking to improve its tech stack and expand to alternate energy such as electricity and gas.

FuelBuddy is a doorstep fuel delivery service that provides fuel to its customers wherever they are. The company has a fleet of delivery trucks that transport fuel to customers’ locations, saving them the trouble of going to a fuel station. Gautam Malhotra, Managing Director of FuelBuddy, recently spoke to CNBC-TV18 about the company’s expansion plans.

According to Malhotra, the company is looking to add 50-70 more cities to its service area in the current financial year. This would bring the total number of cities that FuelBuddy operates in to over 100. The company’s expansion plans come on the back of its recent funding round, where it raised $30 million in January 2023.

“Everybody needs fuel for the generators, for their stationary assets, even for the earthmoving equipment for construction etc,” he said.

“We are looking at minimum 50-70 more cities to add in this financial year,” he added.

Also Read | The prolonged funding winter of Indian startups — How much longer will it last?

Government-backed Open Network for Digital Commerce (ONDC) has the potential to increase India’s digital consumption by five times to around $340 billion by 2030 — a report by ONDC and McKinsey said.

CNBC-TV18 spoke to ONDC Chief Executive T Koshy about what kind of transactions the platform has witnessed in the year of operation.

“From five cities, we are there in 226 cities. In December, we had 30-40 transactions per month. Today, all the things together, we have something like 30,000 transactions a day. This is among the various segments. We started with grocery and food and started mobility recently but mobility has risen up pretty fast, 23,000 transactions may be from mobility,” he said.

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For more details, watch the accompanying video

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow