Transfin.
HomeNewsGuidesReadsPodcastsVideosTech
  1. News
  2. Explained

10% Quota for EWS Within the General Category, Softbank Slashes Proposed Investment in WeWork, SC Backs Monsanto's Patent Claim on Bt Cotton et al.

Professor of Financial Economics and Part-time Value Investor, Transfin.
Jan 8, 2019 2:46 PM 3 min read
Editorial

Govt announces 10% quota for economically weaker sections within the General category. Softbank slashes proposed investment in WeWork. Uber readies to take on Ola.

 

Now to Today's Top Business News Stories in Our End Of Day Wrap Up:


10% Quota for EWS Within the General Category, Softbank Slashes Proposed Investment in WeWork, SC Backs Monsanto's Patent Claim on Bt Cotton et al.

 

INTELLECTUALPROPERTY 

SC backs Monsanto's patent claim on Bt Cotton.

The What: As per a Livemint report, the Supreme Court upheld American agrochemical and agricultural biotechnology company Monsanto’s patent claim on genetically modified (GM) Bt. Cotton.
 

Perspective: This ruling sets aside an earlier order of the Delhi High Court, which had held that plant varieties and seeds cannot be patented under Indian law by companies such as Monsanto, and that royalties on GM technology would be decided by a specialised agency of the Agriculture Ministry.
 

Monsanto India shares surged 2.26% closing at INR2,630.
 

For a deeper dive into the nuances of the case, click here.

 

SOFTBANK

Softbank slashes proposed investment in WeWork. 
 

The What: As per a Business Insider report, Softbank has slashed its proposed investment of $16bn in America-based shared workspace provider WeWork to $2bn.
 

The Why: Softbank allegedly faced criticism from its biggest investors Saudi Arabia’s Public Investment Fund (PIF) and Abu Dhabi’s Mubadala Investments over the proposed amount. 
 

Deep Dive: The original deal of $16bn valued WeWork at $45bn. As per a Seeking Alpha report, this would have been c. 20x its estimated revenue for 2018. Moreover, SoftBank has already invested $8bn in the startup.

 

UBER

Uber to double engineering headcount in India.
 

The What: As per an Economic Times report, the ride-hailing company is looking to double its headcount in India by adding over 1,000 engineers to its Bengaluru and Hyderabad centres in the next 12 months.
 

Fun Fact: India accounts for more than 10% of Uber’s rides globally.
 

Zoom Out: The news comes as Uber reported a 20x increase in revenue, amounting to INR21.5cr in the fiscal ending March 2018. It also reported a 512% rise in net profit for FY18 at INR20L, up from INR3L in the previous year.

 

POLICY

Govt announces 10% quota for economically weaker sections within the General category.

Up Close: The proposed 10% reservation in jobs and higher education will be over the existing 50% reservation for the Scheduled Castes, Scheduled Tribes and the Other Backward Classes, and will take the total reservation to 60%.

Who’s on the list?: According to an Economic Times report, the beneficiaries will include those in the General category who:

  • Have family income below INR8L per annum, own less than 5 acres of land
  • Have a residential house smaller than 1000 sq ft, and residential plot smaller than 100 yards in a notified municipality area and smaller than 200 yards in a non-notified municipality area

 

Last Word: Dubbed a political ploy before the General Elections 2019 by the seasoned journalist Shekhar Gupta, the proposed amendment leaves some fundamental questions unanswered which raises doubts on its feasibility. Click here to read a quick explainer on this issue.

10% Quota for EWS Within the General Category, Softbank Slashes Proposed Investment in WeWork, SC Backs Monsanto's Patent Claim on Bt Cotton et al. 

 

MONEY

Govt retains 8% interest rate on PPF for the January to March quarter.

The What: After yielding a high annual post-tax return of 7.7%. in 2018, the government has retained the 8% interest rate on the government-backed Public Provident Fund (PPF) for the January to March quarter.

Back to the basics: Here are some basic facts one needs to know about this investment instrument:

  • A PPF account can be opened with either a post office or bank
  • The interest rate of PPF is reset on a quarterly basis by the government
  • It can be done with a maximum deposit of INR1.5 lakh and a minimum deposit of INR500 in a financial year
  • It comes with a lock-in period of 15 years


Multiple offerings: PPF is not limited to being a tax-saving instrument. Click here to see how to make the most of your PPF account.

Blast from the past: In case this section reminded you of your dormant PPF account, click here to know how you can revive it.

 

(Don't want to miss out on these End Of Week Wrap Ups? Subscribe Now to our No Nonsense Email Digest and get the day's Top 6 Business stories straight to your mailbox.)