Infosys Share Price Drops to 10-Month Low Following Whistle-Blowers Accusations Against CEO, CFO

Infosys share price today dips c. 17% following accusations of unethical practises by CEO, CFO. Uber launches public transportation services in India. Investor SoftBank to take control of WeWork at $8bn valuation. Central Bank bans use of direct selling agents to source retail loans. MPs to vote on Brexit deal today. China says doors open for foreign investment, despite the ongoing trade war.

 

INFOSYS

Infosys share price plunges to 10-month low following accusations of unethical practises against the top management.

Downhill: Infosys share price today plunged to 10-month low of INR640 (-16.65%), a day after a few anonymous employees accused its Chief Executive Officer (CEO) Salil Parekh and Chief Financial Officer (CFO) Nilanjan Roy of unethical practices in an attempt to boost revenues and profit in recent quarters. Financial Express


On It: Meanwhile, Chairman and Co-Founder Nandan Nilekani in a statement to stock exchanges has said that the Infosys audit committee is looking into whistleblower complaints, and the software giant will provide a summary of the investigations results at an "appropriate time". Livemint

 

Uber launches public transportation services in India.

 

UBER AND WEWORK

Uber launches public transportation services in India.

Past, Present and Uber: Ride-hailing giant Uber today has launched its public transport service in Delhi. 

Uber users will now see 'Public Transport' as an option alongside UberGo, Premier, and Pool. On selecting this feature, riders will be able to see the fastest and cheapest routes, real-time schedules, departure times for Metro trains and buses, and walking directions to and from nearby Metro stations and bus stops. Inc42

SoftBank to take control of WeWork at c. $8bn valuation.

A New Page: Long-term investor SoftBank is set to take control of troubled co-working space provider WeWork. As part of the plan, SoftBank will take control of WeWork by spending $4bn-$5bn on new equity, valuing WeWork between $7.5bn-$8bn - a far cry from the $47bn the company was valued at just a few months ago.

The news comes shortly after WeWork withdrew its S1 filing and CEO and Co-Founder Adam Nuemann stepped down following accusations on unruly behavior at the workplace. TechCrunch

 

RBI

RBI bans use of direct selling agents to source retail loans and carry out physical verification of documents of borrowers.

The What: In an attempt to reduce incidents of data theft and minimise operational risk for banks, the Central Bank today banned the use of direct selling agents (DSAs) to source retail loans and carry out physical verification of documents of borrowers. ET Markets

The DSA mechanism has for more than a decade contributed significantly to the rise in banks’ retail loan book because of which lenders fear that the move could slow down the growth in consumer loans and credit cards.  

Asks subsidiary to create a risk-based system for collecting premiums from banks to cover the deposit insurance of customers.

In Other News: The RBI has asked its subsidiary Deposit Insurance and Credit Guarantee Corporation (DICGC) to create a risk-based system for collecting premiums from banks to cover the deposit insurance of customers in order to hike the bank deposit insurance limit of customers from INR1L at present. BS

 

BREXIT

MPs to vote on Boris Johnson’s Brexit deal today.

Here We Go Again: The soap opera drama that is Brexit had yet another eventful day. Prime Minister Boris Johnson’s attempt on Saturday to put his newly-minted deal with the EU to vote in Parliament was pre-empted after MPs banded together to force him to request Brussels for a three-month extension so that legislation required for his deal could be discussed and passed. Johnson tried again to put his deal to a vote on Monday but the Speaker of the House denied him that opportunity. Today, the PM will try again, introducing his deal in the form of a Bill – the Withdrawal Agreement Bill. The “meaningful vote” will be debated today and voted upon around 11pm IST. CNN World

EU indicates no-deal exit is off the table.

No One's As Patient As EU: Meanwhile, the EU is watching. Brussels received Johnson’s (unsigned) letter seeking an extension – and his following letter where he said an extension would be to the detriment of both sides of the English Channel. Donald Tusk, the President of the European Council, said the EU will wait to see how Westminster will vote on the deal before deciding how to proceed further. However, he indicated that the extension request will likely be agreed to by saying a no-deal exit – which Johnson doesn’t mind – is something that will “never be our decision”. Guardian

 

OUTSIDE IN

Walmart CEO writes to PM Modi seeking clarity on business environment.

Letters Pe Charcha: Doug McMillon, Walmart’s CEO, has reportedly written to Prime Minister Narendra Modi. Changes in FDI rules for e-commerce platforms and regulatory probes over predatory pricing are some topics McMillon touched upon, besides generally seeking clarity and predictability in the country’s business environment. ET Tech

China says door will remain open for foreign investment despite trade frictions.

Takin’ Care of Business: China says it will look at trade friction with “an open mind and a big heart”. Though the world’s second-largest economy has suffered the brunt of a trade war with the US and an ageing population, rising inflation and falling consumer spending pose threats to growth prospects, it said it will continue to open sectors including telecommunications, internet and auto to foreign investment. Reuters 

FIN.

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