The World Opinion

Category: Economy

  • Maruti To Raise Deferred Tax Liability Provision By Rs 850 Crore In Q2 On Indexation Removal | Auto News

    Maruti Suzuki India on Saturday said it would need to increase provision for deferred tax liability by around Rs 850 crore due to the withdrawal of indexation benefit while calculating long-term capital gains on debt mutual funds. The company was making accounting provisions for deferred tax liability on fair value gains on these investments, Maruti Suzuki India said in a regulatory filing.

    A one-time impact on profit after tax will be felt in the second quarter of the ongoing fiscal, it added. In the Finance (No.2) Act 2024, the indexation benefit has been withdrawn while calculating long term capital gains on debt mutual funds which were purchased prior to April 1, 2023, it added.

    “Due to withdrawal of indexation benefit and change in rate of tax from 20 per cent plus surcharge and cess (with indexation) to 12.5 per cent plus surcharge and cess (without indexation), accounting provision for deferred tax liability so created needs to be restated,” the automaker said.

    Consequently, it said, “The accounting provision for deferred tax liability created by the company as on June 30, 2024 would need to be increased approximately by Rs 8,500 million thereby having a one time impact on the profit after tax of the company for Q2 of FY 2024-25.”

    Maruti Suzuki India Chief Investors Relations Officer Rahul Bharti in a statement said this is only an accounting provision at this stage due to the change of tax rules by removing the Indexation benefit on the mark to market gains. “The actual tax outflow will happen subsequently at future dates as and when we redeem those mutual funds,” he added.

    Bharti asserted that this is not related to operations and will not impact the company’s operational profit. “It will affect the tax on other income in respective future dates whenever we redeem those funds,” he added.

  • SEBI Proposes Liquidity Window Facility For Debt Security Investors | Economy News

    New Delhi: Sebi has proposed to introduce a new liquidity window facility for investors in debt securities through the stock exchange mechanism, a move aimed to enhance liquidity in the corporate bond market, particularly for retail investors.

    In its draft circular released on Friday, Sebi proposed that the liquidity window facility seeks to mitigate the issue by providing a regulated mechanism for issuers to offer put options on debt securities at pre-specified dates or intervals.

    The facility will allow issuers to provide put options to investors, enabling them to sell their debt securities back to the issuer before maturity. It can be provided only for prospective issuances of debt securities through public issue process or on a private placement basis (proposed to be listed).

    The Securities and Exchange Board of India (Sebi) has invited public comments on the draft circular till September 6. As per the circular, Sebi said “an entity issuing debt securities, which are proposed to be listed, may at its option/ discretion provide the liquidity window facility for the debt securities, on an International Securities Identification Number (ISIN) basis, at the time of issuance of such debt securities and make such Liquidity Window facility available to the eligible investors in such debt securities”.

    The regulator outlined the issuers that choose to provide this facility will first obtain approval from their board of directors. The facility will be monitored by the stakeholders relationship committee in companies with listed equity.

    For pure debt-listed entities, the board or a designated committee would oversee the process. The issuer will provide liquidity window facility only after the expiry of one year from the date of the issuance of the debt securities.

    The regulator noted that issuers must determine the eligibility of investors who can access the facility, which may be restricted to retail investors or extended to all investors holding the securities in demat form.

    The markets regulator also proposed that there should not be less than 10 per cent or 15 per cent of the final issue size of the debt securities. In addition, issuers could set sub-limits for each liquidity window period, with any excess demand being accepted on a proportionate basis.

    To ensure that investors are informed, Sebi said the “liquidity window will be kept open for three working days on a monthly/ quarterly basis at the discretion of the issuer”.

    The issuers will be required to disclose the schedule of the liquidity window in the offer document. Further, investors will be notified of the availability of the facility at the start of each financial year via SMS or WhatsApp messaging.

    The markets watchdog has also mandated that issuers report the details of the securities redeemed during each liquidity window to the stock exchange, debenture trustees, and depositories within three working days.

    Additionally, information about the availability and usage of the Liquidity Window must be made publicly accessible on the websites of stock exchanges, depositories, and debenture trustees.

  • Police, Civic Bodies To Develop App For Real-Time Action Against Illegal Parking In Delhi | Mobility News

    Action Against Illegal Parking In Delhi: The Delhi Traffic Police, Municipal Corporation of Delhi and the New Delhi Municipal Council will develop a mobile application that will be used to take pictures of vehicles parked illegally and take action in real-time, Raj Niwas officials said on Saturday. The decision to develop the app was taken during a review meeting on the city’s traffic situation that was chaired by Lt Governor VK Saxena on Friday, they said.

    During the meeting, illegal parking was highlighted as an area of concern that required immediate attention, with Saxena issuing several directives to address the issue, the officials said. They said pictures of vehicles parked illegally would be uploaded on the app, allowing real-time action.

    As a pilot initiative, gardeners stationed in New Delhi Municipal Council (NDMC) areas will take pictures of the illegally-parked vehicles and upload those on the app for action. The officials are also exploring ways to incentivise the gardeners for taking up the responsibility.

    The meeting was informed that designated multi-level parking spaces were not being utilised, leading to spillovers. The traffic police was directed to address this issue and ensure parking in the multi-level car parks. They were also asked to incentivise the use of these spaces through substantial discounts, especially for electric vehicles.

    The use of e-vehicles will also be encouraged to address pollution caused by vehicular emission, the officials added. The multi-level parking spaces at Kamla Nagar and Yusuf Sarai market will be prioritised as pilot projects, the officials said.

    To minimise bottlenecks caused while parking vehicles, it has been decided to implement angular parking instead of the current perpendicular method, they said.

    The lieutenant governor also instructed the traffic police to enforce the use of bus lanes by heavy vehicles and coordinate with the Delhi government’s transport department to scrap old police vehicles lying in scrapyards, they added.

  • Hindenburg Vs Adani Saga: Does Sebi Chairperson’s Role Hint At Potential Rules Violation? | Economy News

    Hindenburg Vs Adani Saga: Sebi Chairperson Madhabi Puri Buch continued to earn revenue from a consultancy firm during her seven-year tenure, potentially breaching rules for regulatory officials, according to public documents reviewed by Reuters. Buch’s holdings potentially violate a 2008 Sebi policy that prohibits officials from holding an office of profit or receiving salary or professional fees from other professional activities.

    Allegations by US-Based Short Seller

    The matter relates to allegations made by US-based short seller Hindenburg Research last week, claiming that Buch and her husband, Dhaval Buch, previously held investments in offshore funds also used by the Adani Group. These charges, suggesting a conflict of interest in her investigations surrounding the conglomerate, were categorically denied by the couple.

    Buchs’ Response to Hindenburg’s Allegations

    Immediate and Detailed Statements Deny Allegations

    After denying the charges in an immediate response to Hindenburg’s report, the Buchs released a second, more detailed statement, categorically denying the allegations and sharing specific details, including their career history, education, and certain investments. They accused Hindenburg of attempting to attack Sebi’s credibility and indulging in character assassination.

    Hindenburg’s Reaction to the Buchs’ Statement

    In response to the Buchs’ 15-point statement, Hindenburg took to the microblogging site X (formerly Twitter) to claim that the Buchs’ responses included “several important admissions” and raised “numerous new critical questions.”

    Market Reactions and Expert Opinions

    Foreign Investors and Experts Express Concerns

    Several foreign investors have raised concerns regarding the latest Hindenburg report. Eminent market expert Mark Matthews stated he would wait for the Supreme Court’s opinion, while veteran investor Marc Faber suggested that those involved should resign if the allegations are proven true.

    Adani Group’s Denial and SEBI’s Advisory

    In its report, Hindenburg alleged that the Buchs held stakes in an offshore fund where substantial investments were made by associates of Vinod Adani. The Adani Group has denied these accusations. Capital market regulator Sebi has advised investors to remain calm and exercise due diligence before reacting to such reports.

    AMFI Backs SEBI Chairperson

    The Mutual Fund industry body, AMFI, has voiced support for the Sebi chairperson, stating that the US short-seller is trying to create a trust deficit in the market ecosystem. (Note: This story is sourced from ZeeBiz.com.)

  • Bengaluru, Pune Get New Metro Lines; Thane To Get Integral Ring Metro Rail Project Corridor: Railway Minister | Railways News

    NEW DELHI: The Union Cabinet on Friday approved metro rail projects in Pune and Thane in assembly poll-bound Maharashtra, and in Karnartaka capital Bengaluru. The Cabinet, in a meeting chaired by Prime Minister Narendra Modi, has approved two corridors of the Bangalore Metro Rail Project Phase-3, according to Union minister Ashwini Vaishnaw.

    In a statement, the government said the Cabinet has also approved the Swargate-to-Katraj Underground Line Extension of the existing PCMC-Swargate Metro Line of the Pune Metro Phase-I project. This new extension is known as the Line-1 B extension and will span 5.46 km. It will have three underground stations and connect key areas such as Market Yard, Bibwewadi, Balaji Nagar and the Katraj suburbs of Pune, the statement said.

    “The project, aimed at providing seamless connectivity in Pune, is set to be completed by February 2029. The estimated cost of the project is Rs 2,954.53 crore, with funding to be equally shared by the Government of India and the Government of Maharashtra, along with contributions from bilateral agencies, etc,” it said.

    The statement said the Union Cabinet also approved the Thane Integral Ring Metro Rail Project Corridor. The 29-km corridor will run along the periphery of the west side of Thane city with 22 stations. The network is encompassed by the Ulhas river on one side and the Sanjay Gandhi National Park on the other, it said.

    This will provide sustainable and efficient mode of transport, facilitating the city to realise its economic potential and ease traffic congestion. The project is also expected to contribute to reduction of greenhouse gas emissions, the statement said. “The estimated cost of the project is Rs 12,200.10 crore, with equal equity from Government of India and Government of Maharashtra as well as part-funding from bilateral agencies,” it said.

    “Funds would also be raised through innovative financing methods such as by selling station naming and access rights for corporate, monetisation of assets, and value capture financing route,” the statement said. The approval for the metro projects in Thane and Pune comes a few months ahead of the Maharashtra assembly elections, the poll dates for which are yet to be announced.

    On the approval of two corridors of the Bangalore Metro Rail Project Phase-3, the government said the total completion cost of the project is Rs 15,611 crore. “The Union Cabinet, chaired by the Prime Minister Narendra Modi, today approved the Phase-3 of Bangalore Metro Rail Project with two elevated corridors for a length of 44.65 Km with 31 stations,” the statement said.

    “Corridor-1 from JP Nagar 4thPhase to Kempapura (along Outer Ring Road West) for a length of 32.15 km with 22 stations and Corridor-2 from Hosahalli to Kadabagere (along Magadi Road) for a length of 12.50 km with 9 stations. On operationalisation of Phase-3, Bengaluru city will have 220.20 km of active metro rail Network,” statement said.

    The Phase-3 of Bangalore Metro Rail Project represents a significant advancement in the city’s infrastructure development. The Phase-3 acts as a major expansion of the metro rail network in the city, it said. Phase-3 will add approximately 44.65 km of new metro lines, connecting the western part of Bengaluru that were previously underserved, it stated.

    “Phase-3 will integrate key areas of the city which includes Peenya Industrial Area, IT industries on Bannerghatta road and Outer Ring Road, Textile and Engineering items Manufacturing units on Tumkuru Road and ORR, Bharat Electronics Limited (BEL), Major educational institutions like PES University, Ambedkar College, Polytechnic College, KLE College, Dayanandsagar University, ITI etc,” the statement said.

    Improved last-mile connectivity to commercial centres, industrial hubs, educational institutions, and healthcare facilities will facilitate better access for residents, it also added.

  • Maruti Suzuki Starts Exporting Made-in-India Fronx To Japan | Auto News

    Maruti Suzuki Fronx Export To Japan: Maruti Suzuki India on Tuesday started exporting its ‘Made-in-India’ SUV- Fronx, to Japan. The first shipment of more than 1,600 Fronx SUVs departed Pipavav Port in Gujarat for Japan. The Fronx is Maruti Suzuki’s second vehicle to be exported to Japan, following the Baleno, which debuted in 2016. Maruti Suzuki’s parent firm, Suzuki Motor corporation, plans to debut the SUV in Japan this autumn.

    The Fronx is exclusively produced in Maruti Suzuki’s factory in Gujarat. Expressing his excitement, Hisashi Takeuchi, Managing Director and CEO of Maruti Suzuki India Limited, said, “I am proud to share that our ‘Made-in-India’ Fronx will soon be seen on the roads in Japan. Japan is one of the most quality-conscious and advanced automobile markets in the world.”

    Fronx was launched in India in the second quarter of 2023. In July 2023, the company commenced export of Fronx to destinations like Latin America, the Middle East and Africa.

    Union Commerce Minister Piyush Goyal praised the nation’s growing manufacturing prowess, stating that Maruti Suzuki’s SUV exports to Japan are evidence of the “Make In India” campaign’s success. 

    The Union Minister said in the post on social media platform “X”, that it is truly a proud moment as these SUVs are being exported for the first time to Japan.

    In the post, he wrote, “A truly proud moment as a consignment of over 1,600 ‘Made In India’ SUVs from @Maruti_Corp is exported for the first time to Japan.”

    In the fiscal year 2023-24, the company exported over 2.8 lakh units to more than 100 countries, holding a commanding 42 per cent share in the country’s passenger vehicle exports.

    The company achieved a record-breaking export figure of 70,560 units in Q1 FY 2024-25, marking the highest-ever Q1 export performance in its history.

    (Inputs- ANI/IANS)

  • Why Did X Have To Pay Rs 5 Crore To Fired Employee? Find Out Here | Economy News

    New Delhi: X, formerly known as Twitter has found itself in legal hot water. The company has been ordered to pay €550,000 (around ₹5 crore) in compensation to Gary Rooney, a former employee who was dismissed in December 2022.

    Gary Rooney had been working at Twitter’s Ireland unit since September 2023, as reported by fortune. However, in December 2022, he was unfairly dismissed. On Tuesday, Ireland’s Workplace Relations Commission ruled in his favour, ordering X (formerly Twitter) to pay him €550,000. This is the largest compensation ever awarded by the agency.

    Shortly after taking over Twitter, in November 2022 Elon Musk sent out an email to all employees with a tough choice to commit to  “long hours at high intensity” or be let go with three months’ severance pay. Employees, including Gary Rooney, were given just one day to decide by clicking “yes” to accept these new working conditions.

    In the email, Elon Musk stated, “If you’re certain you want to be part of the new Twitter, please click yes on the link below.” He added that employees who chose not to click would receive three months’ severance pay.

    The Conflict

    X claimed that Gary Rooney had voluntarily resigned by not clicking “yes” on Elon Musk’s ultimatum. However, Ireland’s Workplace Relations Commission disagreed.“It is not OK for Mr. Musk, or indeed any large company to treat employees in such a manner in this country or jurisdiction. The record award reflects the seriousness and the gravity of the case,” said Barry Kenny, Rooney’s solicitor, in a statement to Bloomberg.

    Elon Musk, the billionaire behind Tesla took over Twitter in October 2022 for $44 billion. Shortly after, he laid off nearly half of the company’s workforce and gave an ultimatum to those who remained which ultimately led to Gary Rooney’s dismissal.

  • Realme Unveils World’s Fastest Charger That Charge Phone In Under 5 Minutes; Is It Safe to Use? | Technology News

    New Delhi: Chinese smartphone brand Realme has introduced the new 320W SuperSonic fast charging technology in the world for smartphones in the future. However, the brand hasn’t revealed which phone will get this new fast-charging technology. 

    Notably, the new tech has been demonstrated at the Realme 828 Fanfest event in China by the company. To recall, the Chinese company Realme introduced 240W fast charging, with its Realme GT 3 smartphone.

    320W SuperSonic Charge is officially unveiled today! Click the video to learn more about the technology behind it and see how long it takes to charge a phone fully!#realme828Fanfest #320WFastestCharge pic.twitter.com/osefpxcRlT
    — realme Global (@realmeglobal) August 14, 2024

    In Realme’s demo video, the 320W SuperSonic charge technology promises to be a game-changer, as it can fully charge a phone with a 4,420mAh battery in four minutes and thirty seconds. Meanwhile, Xiaomi’s 300W charging tech took around 5 minutes to charge the device with a 4,100mAh battery. 

    Realme has also introduced a folded battery, with 4,420 mAh capacity.

    Is Fast Charging Technology Safe To Use? 

    To address safety concerns for high-power charging, Realme representatives have introduced the “AirGap” voltage transformer, designed to isolate high voltages from smartphone batteries during electrical faults, such as circuit breakdowns, to prevent damage.

    This transformer uses “contact-free electromagnetic conversion” technology. It reduces the voltage to 20 volts, thereby safeguarding battery life and ensuring the fast charger maintains a 93% power efficiency while charging.

  • MSCI Inclusion May See USD 250 mln Inflows In Adani Energy Solutions; Stock Gains 3.8 Per Cent | Economy News

    New Delhi: The shares of Adani Energy Solutions Ltd (AESL) at the last trading session on Wednesday jumped 3.8 per cent despite the flattish markets, as the street is expecting strong inflows by the end of August from the inclusion in the MSCI Index—inflows of USD 250 million according to brokerage houses.

    On Tuesday MSCI announced that it has lifted ‘Embargo’ on Adani Group stocks, which means the stock is eligible for inclusion in the MSCI India Index, after removing the group company last year in late January 2023, due to uncertainty over free-float.

    Lifting this restriction means that any recent changes in free float plus equity raises are eligible for inclusion. Furthermore, stocks that were excluded can be included again.

    Earlier in August, Adani group’s power transmission, distribution and smart metering company completed a USD 1 billion QIP, which has led to a significant increase in the company’s free float.

    Adani Enterprises, another group company has also proposed fundraising of nearly USD 2 billion. If it goes through, it could also see USD 110 million inflows, according to brokerage firms.

    However, Adani Total Gas, another group stock which was also removed from the MSCI Index last year is unlikely to be included in the near future as the stock is trading significantly below the previous year’s high.

  • Gold Imports Dip 4.23 Per Cent To USD 12.64 Billion In Apr-July | Economy News

    New Delhi: India’s gold imports, which have a bearing on the country’s current account deficit (CAD), dipped by 4.23 per cent to USD 12.64 billion during April-July 2024-25 due to global economic uncertainties, according to government data.

    The imports stood at USD 13.2 billion in April-July 2023. In July alone, the imports declined by 10.65 per cent to USD 3.13 billion as against USD 3.5 billion in the same month last year. The inbound shipments were also in negative during June (-38.66 per cent) and May (-9.76 per cent).

    In April, the imports jumped to USD 3.11 billion from one billion in April 2023. According to a jeweller, the high prices are discouraging the imports but it will go up from September as the festive season will start in India and the import duty cut benefit is also there.

    The government has slashed the customs duty on gold and silver to 6 per cent from 15 per cent. Gold prices rose Rs 300 to Rs 73,150 per 10 grams in the national capital on August 14 amid a jump in precious metal rates in the international markets.

    In 2023-24, India’s gold imports surged by 30 per cent to USD 45.54 billion. Switzerland is the largest source of gold imports, with about 40 per cent share, followed by the UAE (over 16 per cent) and South Africa (about 10 per cent).

    The precious metal accounts for over 5 per cent of the country’s total imports. Despite the dip in gold imports, the country’s trade deficit (difference between imports and exports) widened to USD 23.5 billion in July and USD 85.58 billion during the first four months of this fiscal.

    India is the world’s second-biggest gold consumer after China. The imports mainly take care of the demand by the jewellery industry. The gems and jewellery exports during April-July this fiscal contracted by 7.45 per cent to USD 9.1 billion. India recorded a current account surplus of USD 5.7 billion or 0.6 per cent of GDP in the March quarter. 

    For FY24, the current account deficit narrowed to USD 23.2 billion or 0.7 per cent of GDP against USD 67 billion or 2 per cent of GDP in FY23.

    A current account deficit occurs when the value of goods and services imported and other payments exceeds the value of the export of goods and services and other receipts by a country in a particular period.

    As per the government data, silver imports jumped to USD 648.44 million during April-July 2024 as against USD 214.92 million in the year-ago period. India is seeking a review of certain provisions of the free trade agreement with the UAE, which came into force on May 1, 2022.

    The review assumes significance as experts have raised serious concerns over the spurt in imports of precious metals from the UAE under the trade agreement.

    Seeking an urgent review of the pact, think tank Global Trade Research Initiative (GTRI) has stated that the India-UAE CEPA allows unlimited imports of gold, silver, platinum, and diamonds from the UAE into India with zero tariffs in the coming years.


    This will lead to significant annual revenue losses, move import business from banks to a few private traders, and replace top suppliers with Dubai-based firms, the GTRI report has said.

    It highlighted that currently, gold can be imported from Dubai at 5 per cent duty, but this will drop to zero in three years if the alloy contains 2 per cent platinum. GTRI has also claimed that many imports do not meet Rules of Origin conditions and, hence, do not qualify for concessions.