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RBI's Data Localisation Directive to Cost Payments Firms, Jet Airways Considers Fundraising et al.

Professor of Financial Economics and Part-time Value Investor, Transfin.
Nov 12, 2018 1:35 PM 3 min read

Good evening reader,


Yesterday was Armistice Day, marking one hundred years since the end of World War I. You may have chanced upon live images beamed on Facebook courtesy the BBC - showing solemn Remembrance ceremonies in Britain and France. Or perhaps you didn't.


One hundred years is a long time. Especially for a foreign war which raged in a foreign land. Or did it?


As per the Commonwealth War Graves Commission, 1.1m Indians served overseas by the end of World War I, at the cost of 60,000 dead. 9,200 decorations were awarded, including 11 Victoria Crosses. 


The Indian Army was active from the earliest days of the war, seeing action in German colonies in China, defending the Suez Canal, to facing the bitter cold battle fields of France and Belgium. They fought in the Battle of the Somme, one of the bloodiest battles in human history where 30,000 perished within the first day


Leave alone remembrance, any mention of these historic realities is difficult to find in contemporary India.


Simply check yesterday and today's newspapers as a case-in-point.


Is failing to recognize history just another extension of our colonial hangover? Fingers crossed.


Moving on to Today’s Top 6 Business Stories through our End Of Day Wrap Up:




Payments firms Visa, MasterCard and American Express may be taxed 15% on their income in India.

International payments firms may have to pay 15% on their income in India as they set up local servers to comply with RBI’s recent directive on data localization.


With no 'permanent establishment' within India, these companies are currently out of the tax net. However, with RBI’s push for data localization, they would need to ensure that all of their "payment systems related data" is stored in servers located only in India, thereby creating a domestic operational presence triggering tax liabilities.


Govt may consider sale of 149 ONGC oil and gas fields to private and foreign companies.

Sale of the 149 small and marginal oil and gas fields will allow Oil and Natural Gas Corp. Ltd (ONGC) to focus only on big fields.


This is the second attempt at privatization of ONGC oil fields.


Jet Airways Board to consider fundraising options amidst cash crunch.

As per a Business Standard article, the Board of Jet Airways is set to discuss the company’s options for fundraising, one of them being the sale of its frequent flyer program. Tata Group has also expressed interest in acquiring stake in the airline and its loyalty program.


The airline has posted losses for two consecutive quarters, and is expected to do so again.


Ministry of Power to bring in EV infrastructure policy to boost e-mobility.

Ministry of Power is likely to bring in an Electric Vehicles (EV) Charging Infrastructure policy, which will allow individuals to set up charging stations for commercial use. The Ministry is reportedly coordinating with the Oil Ministry to set up EV charging stations at petrol pumps.




SoftBank’s Japanese mobile unit sets target to raise more than $20bn in IPO.

SoftBank plans to raise c. $21bn in Initial Public Offering (IPO) for its Japanese mobile unit.


This IPO and sale of its control in US-based telecom company Sprint to T-Mobile will allow SoftBank to lower its debt which stands at ¥18tr ($158bn) as on September 30.


Saudi Arabia edges towards a cut in oil output while Russia stays unsure.

The Saudi kingdom announced that it would cut exports next month, as OPEC debated a collective slowdown of production. Russia, Saudi Arabia and other oil producers met yesterday to discuss an output-cut to avoid the anticipated oversupply of oil in 2019.


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