RIL becomes first Indian company to hit INR10L cr m-cap. Mukesh Ambani in talks to sell media assets to Times Group. Govt wants RBI to buy out stressed assets of shadow banks. Considering capping commission of firms like Uber and Ola to 10% of total fare.
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Could You Help?: As per sources, the government has asked the Reserve Bank of India (RBI) to set up a fund to buy out stressed assets of the country’s top 25 non-banking finance companies (NBFCs).
It has also asked the Central Bank to consider a one time waiver to banks from classifying some real estate loans as bad loans.
The RBI however, has opposed the idea of opening its balance sheet to buy stressed assets of shadow banks. Reuters
Banking Bad: In India, with accumulated bad loans soaring past the INR10L cr mark recently, the idea of setting up a bad bank has sprung up time and again, with new and different packaging. Here's all you need to know about a "bad bank".
Case in Point: Markets regulator Securities and Exchange Board of India (SEBI) has widened its investigation into Karvy Stock Broking to include exchanges and a dozen brokerages.
The development comes shortly after SEBI on November 22 banned stock broker Karvy from taking new clients and from executing trades for existing clients due to client defaults to the tune of INR2,000cr. Moneycontrol
Within this backdrop, SEBI Chairmam Ajay Tyagi noted that brokers cannot be allowed to misuse clients’ securities as rules clearly prohibit it and said that the regulator is looking at improving the existing norms on related party transactions for companies and concerns over independent directors not being “truly independent” especially in promoter-dominated companies ET Markets
Stop Only At The Summit: Mukesh Ambani-led Reliance Industries has become the first Indian company to hit INR10L cr market capitalisation, making it the most valued Indian firm in terms of m-cap.
Only last week, RIL had became the first Indian firm to cross a m-cap of INR9.5L cr.
Fun Fact: Interestingly, the oil-to-telecom-retail conglomerate took only 25 sessions to rise to INR10L cr in m-cap from INR9L cr. Whereas, it had taken 285 sessions to escalate from INR8L cr to INR9L cr.
Meanwhile, RIL share price has risen 39% in the last 1 year and 40% just in 2019. The stock has been on a high since RIL and Saudi Aramco signed a non-binding letter of intent in August this year under which Saudi Aramco will buy a 20% stake in RIL's oil-to-chemical business at an enterprise value of $75bn. Adding to this was the recent tariff increase announcement by Reliance Jio. Besides these, some other factors that greatly contributed to RIL's rise were a rise in gross refining margins, strong finances of consumer businesses, the launch of the home broadband business and lower capital expenditure intensity. CNBC TV18
In Other News: Mukesh Ambani is in talks to sell his news media assets to Times Group, as he plans to unload a business that’s been losing money, quoted sources.
Bennett Coleman & Co., the publisher of the Times of India, is looking to hire advisers for due diligence on the news properties of Ambani’s Network18 Media & Investments Ltd.
The news comes as Ambani is pursuing talks to sell a stake in Network18’s entertainment division that encompasses various movie, music and comedy channels to Sony Corp.
Network18, acquired by Reliance Industries in 2014, owns and operates 56 local channels spanning news and entertainment. News properties include MoneyControl, News18, CNBCTV18.com, CricketNext and Firstpost.
Caveats: The RBI's attempts to support the slowing economy is turning out to be a bane to the Indian Rupee, which was the worst performer in emerging Asian markets this quarter.
As per analysts, the Central Bank is mopping up dollars gushing into local stocks and bonds. Moreover, weakness in the Rupee despite robust inflows is seen as a sign it wants to curb a sharp appreciation in the currency that might end up hurting the country's exports.
The RBI has bought about $18bn of foreign exchange since the end of September, according to estimates by Bloomberg Economics. While the purchases have propelled reserves to a record, the rupee has fallen about 0.7% since Sept. 30. Livemint
The Indian Rupee's depreciation bias is alive and well. Here's an analysis.
Cap the Commission: In its upcoming rules for taxi aggregators - the first of its kind in India - the central government is reportedly considering capping the commission earned by firms like Uber and Ola to a maximum of 10% of the total fare of a ride.
Presently that number is 20%.
"We are planning to release the draft (aggregator rules) for public feedback sometime next week,” an official said. “It will largely be in line with the guidelines that were shared, with a few small changes.”
As for the issue of surge pricing, it could be limited to two times the base fare. ET Tech
Backlash: The city of London recently refused to renew Uber's license, citing concerns about customer safety after vulnerabilities in the app let drivers fake their identities in thousands of rides. This might not be an outlier: instead, it could be the beginning of a global regulatory backlash against Uber and its peers in the ride hailing industry. Read more here.
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