Telecom operators in India increase tariffs by up to 40%. NSE and BSE suspend Karvy's trading licence. Temasek reportedly looking to invest $100mn in health and fitness startup Cure.fit. India Manufacturing PMI rises "unexpectedly" in November. RBI expected to cut interest rates for the sixth straight time on 5 December.
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Shut the Door: Following the controversy surrounding the misuse of INR2,300cr of its clients' money, the NSE and BSE have suspended the membership of Karvy Stock Broking with immediate effect. And the Multi Commodity Exchange of India (MCX) may reportedly also suspend Karvy next.
Karvy - 90,000 of whose clients' money has been affected - has already been banned by market regulator SEBI. Moneycontrol
That Question Again: The Karvy situation has seen investors ponder harder and longer over the ageless question - Are my investments safe?
When you make any investment in general, you're dealing with two broad categories of risks. The first is the risk of your investment's value declining over time. The second is the risk of a third party liquidating your investment and running away with your money.
These two risks are fundamentally different. The first is voluntary and a given. The second is a crime. Read more here.
Paying Through the Nose: Telecom operators in India including Bharti Airtel, Vodafone Idea and Reliance Jio have hiked mobile tariffs by up to 42%, effective December 3, in an attempt to amp up revenue, particularly following the recent SC AGR verdict that has increased their outstanding dues. Hindu BusinessLine
However, would this tariff hike necessarily translate into more stability for the Indian telcos? As per Nitin Soni, Director, Corporates, Fitch Ratings, it seems the effective tariff increase is 25-35%, however, the actual tariff hike will depend on the preference of users on whether they go with the higher data allocation or they want to pay higher tariff over the short to medium term. More on this here.
Monetary Flavours: Singapore-based investment company Temasek is reportedly looking to invest $100mn in health and fitness startup Cure.fit.
Cure.fit was founded in 2016 by Myntra co-founder Mukesh Bansal and Flipkart's ex-chief business officer Ankit Nagori. It operates fitness, food delivery, mental wellness and diagnostic verticals - respectively called Cult.fit, Eat.fit, Mind.fit and Care.fit - in 16 cities.
Cure.fit is seeking a valuation of about $800mn post the Temasek fundraise, up from its $575mn valuation less than six months ago. Deal Street Asia
Not So Long Ago: Only five months ago, Cure.fit was in the middle of a legal and negative PR storm surrounding the events that followed its acquisition of fitness company Book Your Game. Read about it here.
Welcome to the Club: Hospitality platform OYO Hotels & Homes has elevated its India and South Asia CEO as a member of its board of directors.
Ghosh will join OYO Founder & Group CEO Ritesh Agarwal, Baja Corporation Founder & CEO Betsy Atkins and other industry experts like Munish Varma, Bejul Somaia and Mohit Bhatnagar, among others, on the company's board.
In his new role, Ghosh will focus on five key areas namely, safety and security, customer experience, corporate governance, revenue management and stakeholder communications. Rohit Kapoor, currently CEO of the new real estate businesses of the company will succeed Ghosh. ET Tech
Meanwhile: A filing with the Ministry of Corporate Affairs last week revealed that OYO is not expected to be profitable until 2022. An unaudited filing showed OYO report a net loss of INR23.85bn in the fiscal year which ended 2019 vs a loss of INR3.6bn a year earlier.
In November, OYO announced that it has invested heavily in Southeast Asia with the launch of 250 branded hotels in Thailand as well as an investment of c. $300mn in Indonesia. However, its lofty ambitions face stiff competition from three Singapore-based start-ups, RedDoorz, ZEN Rooms and Zuzu Hospitality Solutions - all of whom follow the same business model that was pioneered by OYO. However, the question remains...will OYO trade on profitability as it competes in Southeast Asia> Livemint
A Happy Surprise: India’s manufacturing activity picked up unexpectedly in November to 51.2 from a two-year low of 50.6 in the previous month, beating market expectations of 49.8.
The rise in manufacturing PMI was on the back of increase in new orders and output and further expansion in export sales. Reuters
View India Manufacturing PMI chart here.
No End in Sight: The Central Bank is expected to cut interest rates for the sixth straight time on 5 December.
A cut in the repo rate this time around, is more likely to be immediately transmitted to retail borrowers as the RBI has forced banks to link loans to an external benchmark instead of a self-determined reference rate.
FYI: Economic growth has slowed to 4.5% in the September quarter, its weakest pace since 2013, despite a cumulative 135bps cut in policy rates this year. And RBI governor Shaktikanta Das, in his last policy, had said that the RBI was willing to keep rates soft as long as it takes to revive the economy. ToI
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