News Today: RBI Places Restrictions on PMC Bank, Amazon and Flipkart to Face-Off in Festival Sale

RBI places restrictions on PMC Bank on back of violations. Flipkart and Amazon to face-off in the festival sale. Direct tax code panel proposes four separate tax brackets. Apple's new Mac Pro to be made in the USA. 

 

TELECOM

Airtel alleges Jio is reducing its outgoing call ring time, and exploiting interconnect usage charge.

Cheater!: Telecom major in India, Bharti Airtel has alleged that rival Reliance Jio has been reducing its outgoing call ringing time to 20 seconds.

Much Wow!: Reduced ring time often results in receivers missing calls from Jio users, forcing them to call back, thus creating incoming call traffic for Jio. 

Currently,  the interconnect usage charge, or IUC levied by mobile networks for handling incoming calls from rival networks is 6 paise a minute.

Zooming Out: The news comes shortly after the Telecom Regulatory Authority of India (TRAI) floated a consultation paper to see if there was a need to revise the date for scrapping IUC, given the continuing imbalance in inter-operator traffic. Livemint

Mobile voice will be the largest revenue contributor to the telecom sector in 2019-2024.

Key Drivers: As per a report on India telecom revenue forecast, mobile voice will be the largest revenue contributor to the telecom sector in 2019-2024. 

Revenues from mobile data segment are forecasted to grow at CAGR of 13.2% on back of rising mobile Internet subscriptions due to improving mobile network coverage in rural areas in India. TelecomLead

 

RBI Places Restrictions on PMC Bank, Amazon and Flipkart to Face-Off in Festival Sale

 

ECOMMERCE

Flipkart CEO Kalyan Krishnamurthy discusses the ecommerce giant’s mantra for success - affordability, collaboration and marketing.

Giant Leaps for Flipkart: Over the last six months, ecommerce giant Flipkart has been moving towards being a consumer internet destination for the value customer, and towards to this effect has launched new offerings including local language, videos, feeds, private labels, and financial inclusion products to spur adoption, says CEO Kalyan Kalyan Krishnamurthy in an exclusive interview with ET. 

Discussing Flipkart’s mantra for success, Krishnamurthy highlighted how a major chunk of Flipkart’s consumer base and 70% of its transactions come

Big discounts await consumers in festive season sale.

Bring It On: India’s biggest e commerce players Amazon and Flipkart will be seen in a face-off beginning 29th September as the two kick off their festive season sale, which will see participation from over five lakh sellers. Here’s a look at how big a discount these ecommerce sites are likely offer. Moneycontrol

 

CREDIT

Lenders of Essel group sell 7.25m shares pledged by Zee promoters.

Debt Comes for Us All: Lenders to the Essel group have sold 7.25m shares of Zee Entertainment Enterprises that were pledged by its promoters. The sales were executed for over INR200cr yesterday. 

The news comes at a time when ZEE has asked its lenders to extend its September 30 deadline for repayment of debt worth c. INR7,500cr owed to mutual funds and non-banking institutions. Meanwhile, Essel Group is looking to sell its assets ranging from a stake in a publicly traded TV network to roads. Moneycontrol

RBI places restrictions on PMC Bank, restricts withdrawal to INR1,000 per account.

In Other News: The Reserve Bank of India has placed multiple restrictions on Punjab and Maharashtra Cooperative Bank Ltd (PMC Bank), a leading co-operative bank headquartered in Mumbai, for violation of various regulations.

As per the RBI directive, depositors will be allowed to withdraw only Rs 1,000 of the total balance in every savings bank account or current account or any other deposit account. 

The Central Bank also said that the bank will also not be able to grant or renew any loans and advances, make any investment, incur any liability including borrowal of funds and acceptance of fresh deposits, disburse or agree to disburse any payment whether in discharge of its liabilities and obligations without prior approval in writing from the RBI. Hindu BusinessLine

 

RBI Places Restrictions on PMC Bank, Amazon and Flipkart to Face-Off in Festival Sale

 

TAXES

Govt’s corporate tax cut raises concerns about offsetting lost revenue.

Will It Be Enough?: The government has slashed the effect corporate tax rate from 30% to 25.75%. Markets reacted ecstatically to the move, business earnings estimates have been revised, and many expect future growth numbers to be good news for a change (GDP growth has fallen for six straight quarters).
 
However, doubts remain over how the government plans to offset the loss in tax revenue that will arise from this move, which would be about $20.45bn, or 0.7% of GDP. Fiscal leeway is already limited, and problems from other sectors like rural financial stress, liquidity crisis, decreasing consumer spending and auto slowdown, could very well play spoiler and continue to drag growth down. CNBC

Direct tax code panel proposes 4 slabs, exemption for those who earn below INR10L pa.

Slab Talk: The panel tasked with drafting new legislation on direct taxation has proposed four separate tax brackets. 10% for annual income between INR5L-10L, 20% for INR10L-20L, 30% for INR20L-2cr, and 35% for those above INR2cr. Those below annual income below INR5L would be given income tax exemption. BS

 

WORLD

AB InBev’s $5bn IPO in Hong Kong is 2019’s second-largest.

Something’s Brewing: Brazilian-Belgian drink and brewing holdings company Anheuser-Busch InBev raised c. $5bn in the Hong Kong IPO of its Asia-Pacific unit. The company has initially planned for a bigger $9.8bn IPO, but it picked the bottom of the market range citing “several factors, including the prevailing market conditions”. Nevertheless, its public listing is the second-largest this year, behind only Uber’s $8.1bn floatation in May. Reuters
 
The hefty listing signifies that investor confidence in Hong Kong is still strong, despite the still-ongoing four-months-long anti-government, pro-democracy protests that have roiled the island. BBC

While Thomas Cook collapses, Thomas Cook India thrives.

Meanwhile, in India: British tour operator Thomas Cook, one of the world’s oldest and largest, filed for compulsory liquidation on Monday, stranding hundreds of thousands of passengers and jeopardizing 21,000 jobs. However, Thomas Cook India seems unfazed by the chaotic downfall of its namesake. In fact, Thomas Cook India is thriving, with forward bookings and the recent GST cut on room tariffs. The reason? Simply that Thomas Cook India has been a separate entity since 2012, when it was acquired by Canada-based MNC Fairfax Financial Holdings. Financial Express

Apple’s new Mac Pro will be made in the USA.

Made in the USA: Apple has announced that its new Mac Pro’s final assembly will be done in Ausin, Texas, after years of relying on manufacturing facilities in Asia. Digital Trends

 

FIN.

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