RBI to flag bad loan issues with Finance Ministry in pre-Budget meet
The Reserve Bank of India (RBI) and the finance ministry will discuss the additional provisioning banks may be expected to make on account of the central bank’s June 7 circular, and the stress in telco loans following the Supreme Court (SC) order on adjusted gross revenue, which entails a payout of Rs 1.33 trillion to the Centre, inclusive of interest and penalties. Read more.
Centre may cap trade margins for drugs in stages; companies oppose plans
The Centre is considering rationalising trade margins for drugs first at 45 per cent and gradually lowering them and capping them at 30 per cent, possibly starting with one drug category at a time, such as antibiotics and pain and analgesics. Business Standard has learnt that some of the drug majors such as Cipla and Alkem, among others, have opposed the proposal because they have a sizeable business in unbranded generic medicines. Read more.
Budget 2020: Govt likely to assume a growth rate of 6-6.5% in real GDP
As it prepares the 2020-21 (FY21) Union Budget, the government may assume a growth rate of 6-6.5 per cent in real gross domestic product (GDP) for the next fiscal year. It is also likely to assume a deflator of around 4 per cent. Read more.
Dedicated rail freight corridors look to rope in Amazon, Flipkart
The domestic logistics industry got a boost with big e-commerce giants, such as Amazon and Flipkart, entering the arena. The industry is set to benefit again with the Dedicated Freight Corridor Corporation of India (DFCCIL) talking to e-commerce firms to rope them in for using its logistics hubs. Read more.
NBFC slowdown due to low demand and lack of market funding, says RBI
The slowdown in the non-banking financial companies (NBFCs) is mainly due to lower demand in the economy and non-availability of market funding, a recent analysis of the post-Infrastructure Leasing & Financial Services (IL&FS) crisis conducted by the Reserve Bank of India (RBI) showed. Read more.
Enforcement of share pledging in Reliance General null & void: Irdai
The Insurance Regulatory and Development Authority of India (Irdai) has cancelled the invocation of pledge and transfer of shares of Reliance General Insurance by the trustee as “null and void”, Reliance Capital (RCap) informed the stock exchanges. Read more.
Value-chain fashion retailers see a blip in business in 2019 amid slowdown
While 2019 was a year of crisis for the automobile and fast-moving consumer goods segments, the value-chain fashion retail segment witnessed little or no impact of the slowdown that gripped the country. As companies struggled to sell products, affordable fashion continued to be in demand. Read more.
Airtel raises minimum recharge for prepaid users from Rs 23 to Rs 45
Telecom operator Bharti Airtel on Sunday hiked its mandatory minimum recharge for pre-paid customers to Rs 45 from Rs 23. “…it will be mandatory to recharge with a voucher of Rs 45 or above, every 28 days to avail services,” the company said in a public notice. Read more.
Pre-trade share allocation to funds may be mandatory
Pre-trade allocations may be made mandatory by Securities and Exchange Board of India (Sebi) for all institutional investors, said two people with knowledge of the matter, reviving a proposal it had floated two years ago. However, the regulator now wants investors to disclose to exchanges in advance what quantity of shares is meant for which fund, reports The Economic Times.
GST overhaul next on agenda after budget
There will be fresh negotiations between the Narendra Modi administration and state governments to overhaul the goods and services tax (GST) after the Union budget is presented on 1 February, according to sources quoted in a report by LiveMint.
Source: Business Standard