QBiz: Chinese Investment to be Fast-tracked; JioMart on WhatsApp
Your daily lowdown of all the top business news for the day.
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1. India Plans to Fast Track Chinese Investments After Policy Change
India plans to fast track the review of some investment proposals from neigbouring countries such as China following concerns new screening rules could hit plans of companies and investors, three sources told Reuters on Saturday.
To avoid opportunistic takeovers during the coronavirus outbreak, India said this week that all foreign direct investment from countries sharing a land border would require prior government clearance, meaning they can’t go through a so-called automatic route.
Advisers to Chinese firms have said they are concerned the process could take several weeks and hit deals and investment timelines. Auto firms such as SAIC’s (600104.SS) MG Motor and Great Wall (601633.SS), and investors Alibaba (BABA.N) and Tencent (0700.HK) have placed major bets on India.
(Source: Reuters)
2. FPIs Pull Out Rs 10,347 Crore From Capital Markets in April So Far
Remaining risk-averse amid the coronavirus pandemic, overseas investors have withdrawn net Rs 10,347 crore from Indian capital markets in April so far. Between April 1-24, foreign portfolio investors (FPI) pulled out a net sum of Rs 6,822 crore from equities and Rs 3,525 crore from the debt segment, depositories data showed.
The total net outflow stood at Rs 10,347 crore. However, the quantum of outflows has reduced from March, when FPIs had withdrawn a record Rs 1.1 lakh crore on net basis from Indian markets (both equity and debt).
(Source: Financial Express)
3. Reliance Starts WhatsApp-Based Online Portal in Locked-Down India
Reliance Industries Ltd. started testing its online shopping portal three days after Facebook Inc. said it will invest $5.7 billion in digital assets controlled by billionaire Mukesh Ambani. JioMart, an e-commerce venture of Reliance Retail, went live in three neighborhoods surrounding Mumbai, leveraging a deal that gives it access to WhatsApp’s 400 million users in India currently under the world ’s most expansive lockdown.
The starting of the portal takes Asia’s richest man a step closer to his goal of setting up a digital platform to take on Amazon.com Inc. and Walmart Inc.’s Flipkart Online Services Pvt. for a slice of India’s e-commerce market that KPMG says is set to grow to $200 billion by 2027. Facebook hopes a partnership with JioMart will help make WhatsApp the primary way small
(Source: BloombergQuint)
4. CBIC Clears Rs 10,700 Cr GST, Customs Duty Refund in 16 Days
The Central Board of Indirect Taxes (CBIC) has cleared over Rs 10,700 crore worth refunds in GST and customs duty between April 8-23.
In the 'Special Refund and Drawback Disposal Drive', the CBIC officers have cleared over 1.07 lakh Goods and Services Tax and IGST refund claims worth Rs 9,818.12 crore.
Over 1.86 lakh customs and duty drawback refund was processed totalling Rs 915.56 crore, the CBIC said in a tweet.
"CBIC is committed to help GST Taxpayers/Exim Trade during #COVID19. Expeditious sanction of refunds during Special Refund Drive provide relief to trade, especially MSMEs," it said.
(Source: The Economic Times)
5. Gold Sizzles as World Economy Fizzles: Will 2020 be the Year of Yellow Metal?
Gold was the ‘Student of the year’ for 2019 with a spectacular performance vis-a-vis financial asset classes. This came as a huge respite for gold lovers, especially Indians who have a a natural tendency to own gold – at times way beyond what may be needed. Hence the joy may be outflowing to gold investors as the winning streak continues well into 2020. In 2020, year to date, gold has returned ~21% annualised return!
So, what justifies this gold rush?
For starters, gold is an asset which has to be mined, and there is no other way to produce gold. This is unlike the currencies which can be printed to infuse liquidity into the financial markets. Here, gold assumes the role of the ‘last person standing’ as faith in fiat currencies falter.
(Source: The Economic Times)
6. Government Promotes Air India Chief Rajiv Bansal to Secretary-level Rank
Air India chief Rajiv Bansal has been promoted to the secretary-level rank, according to a Personnel Ministry order issued on Sunday. The Appointments Committee of the Cabinet (ACC), headed by Prime Minister Narendra Modi, has approved in-situ upgradation of a total of 10 officers to the level of special secretary in the rank and pay of secretary by temporarily upgrading the posts held by them.
Bansal, a 1988 batch Indian Administrative Service (IAS) officer of the Nagaland cadre, has been given the rank and pay of secretary to the government of India, the order said. He was appointed the chairman and managing director of Air India in February this year at the rank of additional secretary.
(Source: Financial Express)
7. Finance Commission Chief NK Singh Against RBI Lending to Centre
NK Singh, chairman of the 15th Finance Commission, said the Fiscal Responsibility and Budget Management (FRBM) Act allows the Reserve Bank of India (RBI) to lend to the government, but he doesn’t favour such a move.
Singh said states can use the escape clause of 0.5 % over the 3% of gross state domestic product mandated target in their FRBM law for any additional spending for Covid-19 battle. Any further relaxation would need changes to the FRBM law. “ Section 5 of the FRBM Act allows RBI to directly lend to the government,” Singh told reporters in a video conference on Friday after a two-day meeting of the finance commission’s economic advisory council. “In my view it (should) perhaps not be done.”
(Source: The Economic Times)
8. Govt Simplifies Oil, Gas Block Processes; Provides for Self-certification, Deemed Approval
In perhaps the most far-reaching easing of rules, the government has simplified procedures for oilNSE -2.56 % and gas exploration and production by providing for self certification for a host of compliance, such as a discovery notification and deemed consent for investment in fields in a stipulated time.
With a view to make it easier to do business, the government has provided that notification of a discovery and tests to confirm them will not require approval and documents will be accepted on self-certification basis, according to the notification issued on April 25.
Work programme and field development plan or their revisions will be deemed to be approved on expiry of 30 days of submission of documents under self-certification. Only issues requiring government nod will be grant of petroleum exploration or mining license, transfer of stake and extensions.
(Source: The Economic Times)
9. India Post Delivers Rs 412 Cr Cash in Doorstep Banking Revolution
The lockdown has set off a banking revolution. Irrespective of which bank you have an account with - in a city or a village without a branch - you can call the local post office and ask it to deliver cash. In as little as 10-15 minutes, the postman or postwoman will reach your home. For this, you need not have an account with the post office.
Between March 24 and April 23, post offices across India delivered Rs 412 crore in over 21 lakh such transactions, mostly in rural and unbanked ar .. areas, through a network of 1.36 lakh post offices which have been equipped with 1.86 lakh handheld AePS devices.
“This has been made possible due to AePS facility of India Post Payments Bank (IPPB) through which one can withdraw money at the doorstep even if he or she has an account in any other bank,” said Pradipta Kumar Bisoi, secretary, department of posts.
(Source: The Economic Times)
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