The chairperson of the Securities and Exchange Board of India (SEBI), Madhabi Puri Buch, has urged investors to exercise caution when evaluating claims of stock performance made on social media platforms. Buch highlighted the need for investors to be vigilant, as some advisers are providing illegal portfolio management services. In response to these concerns, SEBI plans to establish an agency that will evaluate the accuracy and legitimacy of performance claims.
Reserve Bank of India Intervenes to Stabilize Rupee Amid Rising US Treasury Yields
The Reserve Bank of India has intervened in the foreign exchange market to prevent the rupee from reaching a record low. The central bank sold $500 million in dollar reserves through state-run banks. The rupee settled at 83.24 per dollar, just shy of the intraday low of 83.29.
GST Council Considers Taxation Measures for Corporate and Personal Guarantees
The Goods and Services Tax (GST) Council is considering tax measures for corporate and personal guarantees offered between related parties. Corporate guarantees in favor of related parties may be taxed at 18% GST on 1% of the guaranteed amount or the actual consideration, whichever is higher. Personal guarantees offered by company promoters or directors may not attract tax. These measures aim to provide clarity on levying GST and resolve conflicts between related parties.
Cricket World Cup Expected to Boost India’s Economic Growth
Economists predict that the upcoming Cricket World Cup will contribute to a 10 basis point increase in India’s economic growth. It is estimated that cricket lovers will spend between Rs 18,000-22,000 crore, resulting in a gross value added to the economy of Rs 7,000-8,000 crore. Major sporting events typically stimulate consumer spending and boost local economies.
Sajjan Jindal and SAIC Finalize Alliance for MG Motor India
Sajjan Jindal, chairman of JSW Group, and Shanghai-based SAIC Motor Corporation have finalized an agreement for an alliance involving MG Motor India. The local unit of MG Motors India is valued at around $1 billion. This partnership aims to improve the financial performance of MG Motors in the growing Indian auto market.
Aircraft Excluded from Provisions of India’s Bankruptcy Code
The corporate affairs ministry has announced that certain provisions of India’s insolvency code will not apply to aircraft, engines, and related parts. These provisions exempt transactions and agreements related to aircraft from the moratorium imposed upon the admission of an insolvency plea. This exemption may impact bankrupt airlines and could affect the revival plans of grounded airlines.
L&T Benefits from Construction Boom in Saudi Arabia
Larsen & Toubro (L&T) has seen a significant increase in its order book due to the construction boom in Saudi Arabia. L&T has emerged as one of the leading engineering, procurement, and construction contractors in West Asia. Its outstanding order book at the end of June stood at Rs 4.12 trillion, with orders worth Rs 1 lakh crore originating from the region.
Founders Seek to Buy Back Great Learning from Byju’s
The founders of Great Learning are organizing investors to buy back the online education provider from Byju’s. The management buyback would allow the founders to regain control of the firm and receive equity payouts. Byju’s, on the other hand, is in talks to sell the US kids’ reading platform Epic as part of its efforts to repay lenders and address its ongoing challenges.
ShareChat Looks to Raise Bridge Funding
ShareChat, a short-video platform backed by Google, is seeking fresh investments of around $40-50 million. The company’s valuation is expected to decline by 55% from last year, with the new investments valuing the firm at $2.2 billion. ShareChat has faced challenges in its growth projections but aims to break even following recent rationalization efforts.
Most IT Firms to Return to Office by End of Current Financial Year
By the end of the financial year 2023-24, approximately 80% of IT firms in India are expected to implement a return to office strategy. The transition to in-office work reflects the gradual recovery and normalization of business operations following the disruptions caused by the COVID-19 pandemic.
Sources:
– Securities and Exchange Board of India (SEBI)
– Reserve Bank of India
– GST Council
– Bank of Baroda
– JSW Group
– SAIC Motor Corporation
– Larsen & Toubro (L&T)
– Great Learning
– Byju’s
– ShareChat