Revisiting history: Four-year-old Charles at his mother's coronation ceremony Now 73, the Prince of Wales has become king, vowing to follow in the footsteps of his beloved mother Queen Elizabeth II. MONEYCONTROL NEWS SEPTEMBER 10, 2022 / 09:32 AM IST

 

(Image credit: Royal Collection Trust)

At 73, Queen Elizabeth's eldest son Charles, formerly the Prince of Wales, has become king. He became the heir to the throne with his mother's accession in 1952.

When her coronation took place in 1953, Charles was just four. Many are revisiting a photo from the ceremony after rapid changes in British royal family because of the Queen's death.

The image, shared on social media by the Royal Collection Trust in 2019, showed him standing standing between his grandmother, Queen Elizabeth The Queen Mother, and his aunt, Princess Margaret.

Trained to become the monarch since childhood, Charles will finally be proclaimed king on September 10.

He was greeted with cheers of "God Save the King" when he returned to Buckingham Palace from Balmoral, where the Queen died on September 8.

Soon after his return, he made his first televised address as king, in which he promised to follow in the footsteps of his "darling mama".

"Queen Elizabeth's was a life well lived, a promise with destiny kept, and she is mourned most deeply in her passing," he said. "That promise of lifelong service I renew to you all today."

Upon Charles' accession to the throne, his elder son Prince William becomes the heir-apparent.

Prince William, the duke of Cambridge, will now assume the title of the Prince of Wales. His wife, Kate Middleton, will become the Princess of Wales -- the title that William and Prince Harry's mother Princess Diana held.

Commentators say the British monarchy is going through testing times, and the new king will have some challenges in store.

(With inputs from AFP). 

India, China to complete disengagement in Gogra-Hotsprings by September 12, MEA says :-ET

 

India and China have agreed on disengagement in the area of Gogra-Hot Springs and will complete the process by September 12, 2022, the Ministry of External Affairs said in a statement on Friday. The process began on September 8.

The ministry's comment came a day after the Indian and Chinese armies announced that they have begun to disengage from the Gogra-Hotsprings Patrolling Point 15, where the two sides have been locked in a standoff for over two years.

The announcement of disengagement of troops came around a week ahead of the annual summit of the Shanghai Cooperation Organisation (SCO) in Uzbekistan which is expected to be attended by Prime Minister Narendra Modi and Chinese President Xi Jinping among other leaders of the grouping.

"The two sides have agreed to cease forward deployments in this area in a phased, coordinated and verified manner, resulting in the return of the troops of both sides to their respective areas," the official spokesperson of the MEA Arindam Bagchi said in a statement.

"It has been agreed that all temporary structures and other allied infrastructure created in the area by both sides will be dismantled and mutually verified. The landforms in the area will be restored to the pre-standoff period by both sides," Bagchi said in response to queries on the issue.

Bagchi said the agreement ensures that the LAC in this area will be strictly observed and respected by both sides and that there will be no unilateral change in the status quo.

He said the 16th round of talks between the Corps Commanders of India and China was held at the Chushul Moldo meeting point on July 17, 2022.

"Since then, the two sides had maintained regular contact to build on the progress achieved during the talks to resolve the relevant issues along the LAC in the Western Sector of India-China border areas," he said.

As a result, both sides have now agreed on disengagement in the area of Gogra-Hotsprings (PP-15), he said.

Bagchi said as per the agreement, "the disengagement process in this area started on September 8 at 8:30 am and will be completed by September 12".

"With the resolution of the stand-off at PP-15, both sides mutually agreed to take the talks forward and resolve the remaining issues along LAC and restore peace and tranquility in India-China border areas," he said.

In a statement in Beijing, the Chinese defence ministry said the Chinese and Indian troops in the area of Jianan Daban have begun to disengage in a coordinated and planned way, which is conducive to the peace and tranquility in the border areas.

Indian officials said that the Jianan Daban area referred to by China is the same as Patrolling Point-15 in the Gogra-Hotsprings area referred to by the Indian Army press release issued on Thursday.

Military commanders from both sides have held 16 rounds of talks since the worst clashes in more than forty years between the two nuclear-armed neighbors erupted in the summer of 2020. The site of the latest disengagement is near the area where at least 20 Indian and four Chinese soldiers were killed in June 2020. It’s also the most significant effort to diffuse tensions since both sides moved back troops from another disputed border point in August last year.

Both sides have moved back troops from a few friction areas along their disputed 3,488 kilometer (2,170 mile) border -- but tens of thousands of soldiers remain deployed toe-to-toe in the hostile terrain.

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Germany is planning to introduce points-based 'green cards' :-ET

 

Germany is planning to announce an immigration overhaul soon, to make it easier for foreigners to relocate and work in the country.

Along with plans to make the citizenship process easier, Germany is also working on a new points-based immigration system that would allow migrants to come to Germany even without a confirmed job offer.

Here’s everything we know so far.

In an attempt to plug its acute labor shortage, the German government is introducing its own version of a "green card", the Chancenkarte, literally 'opportunity card'.

Though a visa for job seekers already exists, but the Chancenkarte is expected to make it easier and faster for people looking to find work in Germany.

To be eligible for the new 'opportunity card', foreign nationals will have to meet at least three of these four criteria:

1. A university degree or professional qualification
2. Professional experience of at least three years
3. Language skill or previous residence in Germany
4. Aged under 35

The number of cards issued will be limited by the German government on a year-by-year basis, according to demand on the labor market.

"This is about qualified immigration, an unbureaucratic process, and that's why it's important that we say that those who have the opportunity card can earn a living while they are here," Labor Minister Hubertus Heil told the WDR public radio station on last week.

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https://economictimes.indiatimes.com/nri/migrate/germany-is-planning-to-introduce-points-based-green-cards/articleshow/94089751.cms?utm_source=contentofinterest&utm_medium=text&utm_campaign=cppst

Gross direct tax collections up 35.46% y/y to touch Rs 6.48 lakh crore till September 8 :-ET

 Synopsis

The net collection is 37.24% of the direct tax collection estimated in the budget for this fiscal year, the Central Board of Direct Taxes said in a statement. "After adjustment of refunds, the net growth in corporate income tax collections is 32.73% and that in personal income tax collections(including securities transaction tax) is 28.32%," the statement said.

Gross direct tax collections in the ongoing fiscal year till September 8 totalled `6.48 lakh crore, up 35.46% compared with the tax collected in the same period of the last fiscal year. Net of refunds, direct tax collections since April 1 increased 30.17% to Rs 5.29 lakh crore, data showed.

The net collection is 37.24% of the direct tax collection estimated in the budget for this fiscal year, the Central Board of Direct Taxes said in a statement.

"After adjustment of refunds, the net growth in corporate income tax collections is 32.73% and that in personal income tax collections (including securities transaction tax) is 28.32%," the statement said.

The Income Tax Department has issued refunds amounting to Ra 1.19 lakh crore, 65.29% higher than in the yearago period. The Centre expects its net direct tax collection to exceed the Rs 14.20 lakh crore target set in the budget for this fiscal. “As the economy continues to recover from the Covid downturn, the efforts at nudging taxpayers to better compliance through a combination of technology intervention and data reporting are paying off, and tax collections continue on their upward trajectory said Rohinton Sidhwa, partner, Deloitte India.

He said a clearer picture of the trend would be available by the calendar year-end as filings come in for corporate tax returns and audit examinations also complete.

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https://economictimes.indiatimes.com/news/economy/finance/gross-direct-tax-collections-rise-35-46-y/y-to-touch-rs-6-48-lakh-crore-till-september-8/articleshow/94102457.cms?utm_source=contentofinterest&utm_medium=text&utm_campaign=cppst

RHI Magnesita India to invest ₹450 crore to double production capacity

 

Stefan Borgas, CEO of RHI Magnesita

CEO says India is the only growth market in the industry (globally) at present

Refractory maker RHI Magnesita India is planning to invest close to ₹450 crore for brownfield expansion of its existing plants across India over the next two-to-three years. It is also scouting for acquisitions to expand its production capacity in the country.

The company, which is into production and supply of high-grade refractory products, systems and solutions, currently has three manufacturing units at Bhiwadi (Rajasthan), Vizag (Andhra Pradesh) and Cuttack (Odisha).

It has an annual production capacity of around 1.42 lakh tonne across the three units. Plans are afoot to double production capacity to close to close to 2.8 lakh tonne by end of 2023.

‘Important focus region’

According to Stefan Borgas, CEO of RHI Magnesita, the company has recently scaled up the capacity of its Vizag plant by almost 30 per cent at an investment of ₹50 crore.

Also see: Another round of price hike inevitable as raw material costs remain high: Bajaj Electricals

“India is the only real growth market in the refractory industry (globally) at present and it is the most important focus region for us. We have recently scaled up the capacity of our Vizag plant and we are further working on starting production of certain high-end products in the Bhiwadi facility, which are currently imported into India from our European and American facilities. This would lead to import substitution of these products,” Borgas told BusinessLine .

Looking at acquisitions

Apart from organic expansion, the company is also looking to acquire one or two companies in the domestic market for expanding capacity.

“We have three-to-four targets (for acquisition) and we are in advanced stages of discussion (with some of them) and we hope something should fructify in the next six-to-twelve months,” Parmod Sagar, MD and CEO, RHI Magnesita India said.

Growing market share

Refractory products are vital in all high-temperature processes in the making of metals, cement, glass and ceramics. The steel industry is one of the biggest consumers of refractory products, accounting for nearly 60-70 per cent of the total production.

The refractory market in India is estimated to be close to ₹10,000 crore.

RHI Magnesita, one of the leading players in the refractories industry globally, holds close to 30-35 per cent market share in most markets it has presence in. However, in India, it currently holds a market share of around 20 per cent. The company is looking to scale up its share in the country over the next two-to-three years.

“We have to invest in capacities (expansion) in India to benefit more from the growth in the market as compared to some of our competitors,” he said.

The company recently inaugurated the regional R&D centre in India. It is investing in expanding its capability to develop Indian operations as the R&D and manufacturing hub for the greater region of India, the Middle East and Africa, he added.

Published in Business Line on November 16, 2021 Used here for the information and educational purposes of retail investors.

Russia’s exclusion may pave way for India into global bond index :ET

 

India has the biggest bond market among emerging economies that’s not covered by global indexes, but bankers say that may change soon, potentially drawing in billions of dollars in inflows. Russia’s recent exclusion is one reason why.

Morgan Stanley expects an announcement that India will be included in JPMorgan & Chase Co.’s emerging markets bond index as early as mid-September with the actual entry in the third quarter next year. Goldman Sachs Group Inc. sees that announcement coming in the fourth quarter this year and inclusion in the second or third quarter in 2023. Both expect India’s weight at 10%, the maximum for a country in the index, and potential inflows of $30 billion from the move.

Getting high-yielding Indian sovereign bonds into global indexes would make it easier for overseas investors to put their money into Asia’s third-biggest economy with its $1 trillion debt market. It would follow many false starts over the years that resulted from wariness about debt inflows and disagreements including one on tax breaks for foreigners. Russia’s exclusion from the JPMorgan gauges after it invaded Ukraine may have added to incentives for the index compilers to fill the hole with Indian debt.

JPMorgan, one of the major index providers, has been collecting feedback from investors over including India in its Government Bond Index - Emerging Markets Global Diversified, or GBI-EM. More than 60% of real money investors are ready or almost ready for India’s inclusion, a Morgan Stanley survey showed. A spokesperson for JPMorgan in India declined to comment.

“India would offer much needed diversification to the GBI-EM index given the different structure of its economy, and so would be a strong addition to the index from a long-term perspective,” said Nivedita Sunil, portfolio manager for Asia and EM debt at Lombard Odier (Singapore) Ltd. “We have held consultations with the index provider and we are broadly supportive of it.”

Bond traders in India have had their hopes dashed in the past on index inclusion. There were widespread expectations in February that the government would announce a tax break for foreign investors in the budget that would facilitate trading of the nation’s debt on platforms such as Euroclear.

Dashed Expectations

Instead, the budget was silent on the issue. Officials have said they decided not to exempt international bond transactions from taxes, and they would like settlement of bonds to be done locally.

“India has its own size and heft to act on its own,” said Aninda Mitra, head of Asia macro and investment strategy at BNY Mellon Investment Management. “But it is important to make a strategic decision and stick with it, rather than send out conflicting signals.”

Meanwhile, in the GBI-EM index Russia had a weight of about 8% before it was removed, and now there are seven countries with a weight of 10% each and 13 countries sharing the remaining 30%, according to the Morgan Stanley note.

“The exclusion of Russia has made the index more concentrated and unbalanced,” Morgan Stanley strategists Min Dai, Madan Reddy and Gek Teng Khoo wrote in a note early September. “Hence JPMorgan has more incentive to include India even without Euroclear, as long as GBI-EM investors don’t object to that.”

India is currently ‘on track’ to be placed on index watch for inclusion in JPMorgan’s bond index, according to the bank. It’s also on the FTSE Russell watch list to get into its emerging market debt index.

Bloomberg LP is the parent company of Bloomberg Index Services Ltd, which administers indexes that compete from those by other service providers.

Renewed market talk on index inclusion helped revive flows into rupee-denominated bonds last month after six continuous months of outflows. Foreign inflows will be crucial to meet the nation’s ever-growing bond supply as its funding needs expand. Yields are headed for a third month of decline with the benchmark 10-year bond yield down more than 30 basis points since June.

Authorities have taken some steps to ease rules for foreigners. Recent regulations like allowing custodian banks to pre-fund trades on behalf of foreign investors and extended settlement timings are examples, according to Goldman Sachs. Still, key issues remain.

“We think the two biggest operational challenges are account opening time and the burdensome trading requirements,” said Eric Lo, a fixed-income fund manager at Manulife Investment Management. He said it can take up to nine months to open a local India bond trading account, but operational constraints like those aren’t a “show stopper” for the firm to invest in the market.

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https://economictimes.indiatimes.com/markets/bonds/russias-exclusion-may-pave-way-for-india-into-global-bond-index/articleshow/94094508.cms?utm_source=contentofinterest&utm_medium=text&utm_campaign=cppst

EY plans to spin off audit, consulting units to ease regulatory concerns London-based EY, which in June had denied reports on its restructuring plans, said it would provide its 13,000 partners with more information before voting on the split starts on a country-by-country :-Business Standard Sep 9, 2022

 

Professional services firm Ernst & Young said on Thursday it was planning to split its audit and consulting units into two companies, as it looks to ease regulatory concerns over potential conflicts of interest.

“This is something that will change the industry,” Carmine Di Sibio, EY’s global chairman and chief executive, said in an interview.

Rivals beg to differ. Deloitte, KPMG and PricewaterhouseCoopers have all said they plan to keep consulting and auditing under one roof. These other Big Four firms hope to exploit EY’s focus on its restructuring to poach clients and employees, according to people familiar with the matter.

“That’s to be seen, who’s wrong and who’s right,” Di Sibio said. The proposed breakup “provides tremendous opportunities for our people, our clients and our partners,” he added.

The green light for the break-up from Di Sibio and other EY leaders means the plan will now go to a vote with the firm’s roughly 13,000 partners. “This is a big step…in a very complicated process,” Di Sibio said.

For years, the Big Four accounting firms, comprising EY, Deloitte, KPMG and PricewaterhouseCoopers, have been under regulatory scanner over concerns their advisory services could undermine their ability to conduct independent reviews.

London-based EY, which in June had denied reports on its restructuring plans, said it would provide partners with more information before voting on the split starts on a country-by-country basis from late 2022. It is likely to conclude in early 2023.

UK auditing and accounting regulator, the Financial Reporting Council, had asked the Big Four firms in 2020 separate auditing as a standalone business in Britain by June 2024, partly spurred by corporate failures at builder Carillion and retailer BHS.

EY affiliates, which audited payments company Wirecard AG's books, are also facing heat from the German fintech firm's investors after it collapsed in 2020. EY has denied any wrongdoing.

The far-reaching proposal would separate EY’s accountants who audit companies such as Amazon.com from its faster-growing consulting business, which advises on tax issues, deals and more.

The company is expecting to report a record revenue of $45.4 billion for its most recent financial year, up 13.5 per cent from a year earlier, according to a report from the Financial Times.

(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)

Remembering Elizabeth II, the queen who transformed Windsors into a bourgeois yet mesmerizing dynasty :-ET

 

Britain’s longest-serving monarch has died.

RIP

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https://economictimes.indiatimes.com/news/international/world-news/remembering-elizabeth-ii-the-queen-who-transformed-windsors-into-a-bourgeois-yet-mesmerizing-dynasty/articleshow/94085355.cms?utm_source=contentofinterest&utm_medium=text&utm_campaign=cppst

Finally we have a winner for the largest sale of stressed assets undertaken by any Indian Bank :-Cerberus-Arcil out of race to buy Yes loans Read more at: https://economictimes.indiatimes.com/news/india/

 Synopsis

Yes Bank will soon declare JC Flowers ARC as the winner and will transfer its distressed loans to the firm, making it a virtually zero bad loans bank.

Cerberus Capital and Asset Reconstruction Company of India (Arcil) have dropped out of the race to acquire more than ₹48,000 crore of distressed loans of Yes Bank.

They did not submit a counter-bid against a binding offer by JC Flowers ARC, two people aware of the development said.

Yes Bank will soon declare JC Flowers ARC as the winner and will transfer its distressed loans to the firm, making it a virtually zero bad loans bank.

The private bank, which received an offer of ₹11,183 crore for its distressed loan portfolio from JC Flowers ARC, invited counter-bids by September 7 under a Swiss challenge auction.

In the first round of auction, JC Flowers ARC emerged as the highest bidder, ET reported on May 20. If the Cerberus-Arcil team had given a counter-offer, JC Flowers ARC would have had the first right to match it.

Rahul Gupta, chairman and CEO of JC Flowers ARC, declined to comment.

Failed to Strike a Deal

Yes Bank and Arcil did not respond to ET's requests for comment. "The long-stop date of closing the transaction is 60 days from the official date of announcement of the deal. During this time, the bank will acquire 20% equity for ₹350 crore," said one person.

Yes Bank initially invited counteroffers by August 29 and later extended the deadline to September 7 following a request by the Cerberus-Arcil team.

Avenue Capital - which owns a majority stake in Arcil - and Cerberus Capital failed to strike a deal, following which they decided to drop out, the second person said.

JC Flowers ARC's ₹11,183 crore offer is a structured deal comprising 15% cash consideration and the balance in the form of security receipts.

The 15% cash consideration would imply that the ARC must arrange ₹1,677 crore as upfront cash payment.

It would issue security receipts for the balance 85% which would be redeemed as the ARC recovers the loans.

Yes Bank's exposure to Essel Group, Radius group and the Anil Dhirubhai Ambani Group are among the loans that would be sold to the ARC.

In May, Cerberus and JC Flowers ARC separately submitted binding offers to acquire Yes Bank's distressed loan portfolio.Though the offer from Cerberus was higher, the bank picked JC Flowers since it had an operational ARC making the transfer of stressed loans seamless, said a person cited earlier in the story.

Before bidding, Yes Bank indicated that it would prefer to sell its non-performing loans to a bidder with an operational ARC.

This prompted Cerberus to initiate talks for equity in an ARC. It offered to acquire a stake in International ARC, backed by Blackstone and later in ARCION Revitalisation, an ARC jointly owned by Apollo Global and ICICI Bank. However, talks with these two ARCs remained inconclusive.

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https://economictimes.indiatimes.com/news/india/cerberus-arcil-out-of-race-to-buy-yes-loans/articleshow/94085289.cms?utm_source=contentofinterest&utm_medium=text&utm_campaign=cppst

Vodafone paid its due loan amount to IDFC bank, what is the future of Vo...

Govt to acquire Vodafone Idea stake after share price stabilises at Rs 10 or above "There is a SEBI norm that the acquisition should take place at par value. DoT will clear the acquisition after VIL shares stabilise at Rs 10 or above," an official source told PTI.

 

Vodafone Idea: The company has prepaid a short term loan of around Rs 2700 crore to State Bank of India in a bid to shore up lenders confidence as it urgently seeks fresh bank funds to tie up equipment supply deals for 5G networks and also clear some of its near Rs15000 crore trade payables, comprising dues to tower companies, network gear vendors and other suppliers, ET report said.

The government will acquire a stake in debt-ridden Vodafone Idea after the stock price of the company stabilises at Rs 10 or above, according to an official source.

Vodafone Idea (VIL) board has offered a stake to the government at a par value of Rs 10 per share. "There is a SEBI norm that the acquisition should take place at par value. DoT will clear the acquisition after VIL shares stabilise at Rs 10 or above," an official source told PTI.

VIL shares are trading below Rs 10 since April 19. The stock declined by 1.02 per cent to trade at Rs 9.68 on BSE on Thursday. The finance ministry had cleared the proposal to acquire stake in VIL in July.

Debt-ridden Vodafone Idea (VIL) has decided to opt for converting about Rs 16,000 crore of interest liability payable to the government into equity which will amount to around 33 per cent stake in the company while promoters' holding will come down from 74.99 per cent to 50 per cent. The government has given telecom operators an option of paying the interest for four years of deferment on the deferred spectrum instalments and AGR (adjusted gross revenue) dues by way of conversion into equity of the NPV of such interest amount.

The company's total gross debt, excluding lease liabilities and including interest accrued but not due, as of September 30, 2021, stood at Rs 1,94,780 crore. The amount comprises deferred spectrum payment obligations of Rs 1,08,610 crore, AGR liability of Rs 63,400 crore that is due to the government and debt from banks and financial institutions of Rs 22,770 crore as of January 11, 2022-- when it offered conversion of interest liability into equity.

At the end of the April-June 2022 quarter, VIL's total gross debt (excluding lease liabilities and including interest accrued but not due) stood at Rs 1,99,080 crore, comprising deferred spectrum payment obligations of Rs 1,16,600 crore, AGR liabilities of Rs 67,270 crore that are due to the government, and debt from banks and financial institutions of Rs 15,200 crore.

moneycontrol.com

Finance ministry okays Vi dues conversion to govt equity :-ET Sep 8, 2022

 

Synopsis

At June end, Vi's net debt was over Rs 1.98 lakh-crore, with its deferred spectrum payment dues at over Rs 1.16 lakh-crore and debt from banks and financial institutions at Rs 15,200 crore. Its cash and cash equivalents were at Rs 860 crore.

The finance ministry has cleared a proposal to convert Vodafone Idea's ₹16,130-crore worth of accrued interest on deferred adjusted gross revenue (AGR)-related dues into equity.

The ball is now in the telecom department's court, which has to finalize the transaction as per the package announced earlier.

"It (the equity conversion) has received the finance ministry's nod in line with the approved (telecom relief) package," said an official aware of the developments.

The equity conversion, which was subject to government confirmation, has been pending since January this year. It is vital for Vodafone Idea to conclude its long-pending ₹10,000 crore external fundraise via equity as potential investors want clarity on this issue. The carrier is also talking to banks for another ₹10,000 crore in debt as it needs to invest in its 4G network and roll out 5G to effectively compete with rivals Reliance Jio and Bharti Airtel and stem subscriber losses.

Stock Movement

It also needs cash to clear some of its near Rs 15,000-crore trade payables, comprising dues to tower companies, network gear vendors and other suppliers. At June end, Vi's net debt was over Rs 1.98 lakh-crore, with its deferred spectrum payment dues at over Rs 1.16 lakh-crore and debt from banks and financial institutions at Rs 15,200 crore. Its cash and cash equivalents were at Rs 860 crore.

Once the telecom department finalises the conversion as per the telecom relief package announced last September, the government will own around 33% of Vodafone Idea's equity and become the single largest shareholder in the loss-making entity. The co-promoters - UK's Vodafone Group Plc. and the Aditya Birla Group - together will continue to hold a combined majority stake of 50.1% in the Indian telco. Vodafone will hold 31.8% and ABG, 18.3%, according to brokerage Nomura.

The Rs 16,130-crore liability is the accrued interest on the telco's accumulated licence and spectrum usage charge (SUC) dues levied on AGR and deferred spectrum payments up to FY17. Under the terms of the government's rescue package for the sector, telcos had the option to convert these statutory dues into government equity. Vodafone Idea had opted for the option.

Another senior industry executive familiar with the matter said the conversion has been held up as Vodafone Idea's stock price has been hovering below Rs 10 and as per the company law provisions, any equity infusion cannot be below par value.

When Vodafone Idea opted to convert the accrued interest into equity on January 11, its shares closed at Rs 11.80. The price has remained below Rs 10 for most of the current financial year. But the stock has risen 3.4% between September 2 and 5, shortly after the telco prepaid a near Rs 2,700 crore short-term loan to SBI.

On Wednesday, the operator's shares jumped 6.9% to close at Rs 9.77 on the BSE.

Separately, Vodafone Idea also needs to inform the telecom department by September 16 if it would also opt to convert accrued interest on deferred licence fee dues for FY18 and FY19 into equity.

If the telco opts for the second round of conversion, the government could end up holding an additional 5-7% equity in the telco, apart from the currently expected 33%, say analysts.

The company on June 22 opted for a four-year deferment of licence fee-related dues amounting to Rs 8,837 crore for FY18 and FY19. But it hasn't yet taken a call on converting the accrued interest on these deferred dues into government equity.

Read more at:
https://economictimes.indiatimes.com/news/india/finance-ministry-okays-vi-dues-conversion-to-govt-equity/articleshow/94061464.cms?utm_source=contentofinterest&utm_medium=text&utm_campaign=cppst

New milestone: Demat accounts surpass 100 million for the first time The tally was less than 41 million before Covid-19 pandemic :-Business Standard Sep 5 2022

 

The country’s demat account tally topped the 100 million-mark for the first time, in August. Over 2.2 million new accounts -- most in four months -- were opened last month, taking the cumulative figure to 100.5 million, according to data released by depository firms National Securities Depository Limited (NDSL) and Central Depository Services (CDSL).

India’s demat account tally was 40.9 million in March 2020 just before the outbreak of Covid-19 in the country.

The sharp surge in the market, greater lean hours due to the lockdown and mobility restrictions, shift to the work-from-home set-up, ease of account opening, increase in mobile and data penetration, and a drop in brokerage rates have underpinned this growth.

“The milestone of 100 million demat accounts is a testament to the acceptance of demat accounts and the securities market as an investment avenue against the backdrop of growth in household savings,” said Nehal Vora, MD & CEO, CDSL. “We witnessed a substantial increase in demat accounts in the past two years. It is equally important to note that NSDL’s custody value increased from Rs 174 trillion in April 2020 to Rs 320 trillion ($4 trillion) in August 2022. This indicates participation from both retail and institutional investors,” said Prashant Vagal, executive vice-president, NSDL.

In terms of number of accounts, CDSL, a listed firm, has a higher market share but NDSL is bigger when it comes to assets under custody (AUC). At the end of August, CDSL operated 71.6 million demat accounts with an AUC of Rs 38.5 trillion. On the other hand, NSDL had 28.9 million accounts with AUC of Rs 320 trillion.

The 100-million demat account tally isn't representative of unique investor count in the country. As an investor is allowed to open demat accounts with multiple brokerages, there is a lot of duplication. Industry players peg the unique investor tally between 60 million and 70 million. This translates into equity market penetration of less than 6 per cent. Besides direct investing, domestic retail investors are exposed to the equity markets through mutual fund (MF), insurance, and pension fund routes.

The demat account trajectory and investor count are interlinked. To illustrate, new demat openings fell to a 16-month low of 1.8 million in June, following a sharp correction in the market. But thanks to a sharp rebound in the markets from their June lows, investor confidence has once again improved.

“Growth in the demat account tally has a high correlation to the state of the market. A bullish market will get a lot of newer investors into the market fold. This is why we had that slight dip during the first quarter in new account openings but now things are again looking up. There is also a strong IPO pipeline, going by the number of filing and this, too, will help increase the demat count,” said E Prasanth Prabhakaran, MD & CEO, YES Securities.

Near-term factors aside, market players believe there is still a long runway ahead as brokerages try to penetrate into newer cities. “A large part of growth over the past two years has come from tier-2 and tier-3 cities. We have barely scratched the surface. Once investing becomes part of everyone’s life and the economy returns to high growth, structurally the broking industry has high growth potential,” said Prabhakaran.