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Insurance Regulator Approves LIC-IDBI Deal, Indian Money in Swiss Banks, Amazon to Buy PillPack et al.

Professor of Financial Economics and Part-time Value Investor, Transfin.
Jul 1, 2018 10:43 AM 2 min read
Editorial

End of Week Wrap-up (June 25, 2018 -July 1, 2018) #IRDAI #LIC #IDBI #tax #SwissBank #blackmoney #demonetisation #rupee #dollar #TimesInternet #AxonCapital #IREO #Amazon #PillPack #Transfin

Editor's Comment: Insurance Regulator allows LIC to increase its current stake from c. 11% to 51% in debt-ridden IDBI Bank, making an exception to its 15% investment cap in firms for insurance companies. LIC to pump INR10,000cr-INR13,000cr capital in IDBI Bank in tranches.

 

Money of Indians in Swiss banks rises 50% to over INR7,000cr, according to Swiss National Bank. This comes as a surprise since the Indian Govt’s clampdown on black money had resulted in a downward trend in the money put in Swiss banks since 2016.

 

Rupee breaches 69/$ level for first time on back of increasing crude oil prices and the added worry of currency traders on the backdrop of the US-China trade war. However, ratings agency Moody’s has claimed that India is the least vulnerable to currency pressures as a result of a stronger dollar.

 

Times Internet buys popular video app MX player for $140mn to take on Netflix and Hotstar. MX player has 175 million users in India, and looks to add more with in-house content from Times Internet.

 

Hedge funds, Axon Capital and Christoper Hohn’s Children’s Investment fund, allege $1.5bn fraud by Indian real estate firm IREO Management, potentially one of the biggest scams ever, alleging IREO created shadow companies, dumped documents and siphoned money.

 

Amazon to enter drug business, to buy online pharmacy PillPack for $1bn, as they look to push the joint venture in healthcare with JPMorgan and Berkshire Hathaway into play.