OPINION, P8 COMPANIES, P6 AD CAMPAIGNS Meaningful capex revival will take 2-3 years at least Large payouts for even illegal GM seeds shows farmers will pay for good technology FIGHT AGAINST GRAFT Priyanka Chopra ends contract with Nirav Modi’s brand EDITORIAL INTERNATIONAL, P16 China takes over giant insurer Anbang; founder Xiaohui to be tried NEW DELHI, SATURDAY, FEBRUARY 24, 2018 WWW.FINANCIALEXPRESS.COM FOLLOW US ON TWITTER & FACEBOOK. APP AVAILABLE ON APP STORE & PLAYSTORE READ TO LEAD VOLUME XLIII NO. 307, 28 PAGES, `8.00 (PATNA `9.00, RAIPUR `10.00) P U B L I S H E D F R O M : A H M E D A B A D , B E N G A L U R U , C H A N D I G A R H , C H E N N A I , H Y D E R A B A D , K O C H I , K O L K ATA , L U C K N O W, M U M B A I , N E W D E L H I , P U N E SENSEX: 34,142.15 ▲ 322.65 NIFTY: 10,491.05 ▲ 108.35 NIKKEI 225: 21,892.78 ▲ 156.34 HANG SENG: 31,267.17 ▲ 301.49 `/$: 64.73 ▲ 0.32 `/€: 79.63 ▲ 0.28 BRENT: $66.24 ▼ $0.15 GOLD: `30,390 ▲ `6 RBI DIRECTIVE TO BANKS Link SWIFT to CBS by Apr 30 A similar communication was sent to banks in 2016, without a time-frame though been avoided had SWIFT and CBS been linked in sync with an RBI advisory in 2016 fraudulently issued LoUs via SWIFT without making corresponding entries in CBS, thus avoiding tighter scrutiny BANIKINKAR PATTANAYAK New Delhi, February 23 NSE asks index compilers to stay out of offshore dispute NSE, WHICH ended licensing deals with its global counterparts in an effort to rein in offshore derivatives, wants index compilers to stay out of the dispute, reports Bloomberg. CEO Vikram Limaye said in an interview that he is asking MSCI to tell its clients to not use NSE’s data for futures and options contracts based on Indian stocks. MSCI said last week the termination was an anti-competitive step and warned that the nation’s market classification could change as a result. PAGE 11 SC dismisses IndiGo’s plea against order to shift to T2 THE SUPREME Court upheld DIAL’s decision to partially shift the operations of IndiGo and SpiceJet from Terminal 1 to T2 of the IGI Airport, reports fe Bureau in New Delhi. However, it gave almost a month to IndiGo to move its operations to T2. GoAir had already shifted its operations. The SC refused to interfere with the Delhi HC's February 13 order which directed the airline to shift its operations partially to T2, but granted some relief by extending the timeline to shift. PAGE 6 RBI issues notice inviting applications for deputy guv THE RESERVE Bank of India has invited applications for the post of deputy governor (DG), reports fe Bureau in Mumbai. The prospective candidates must have expertise in bankruptcy and restructuring, a public notice said. The post of DG fell vacant after former DG SS Mundra retired on July 31, 2017. Candidates need to have at least 15 years of experience in banking and financial market operations and extensive experience as a full-time director or board member. PAGE 10 JHARNA MAZUMDAR Mumbai, February 23 IN ORDER TO push sales in a highly competitive retail market, Zara India has slashed its entry-level product price by more than 50% to `390 from `799 a year ago. The `390 price point was introduced by the Spanish retailer in the sale announced by it in January this year. However,evenafterthesale concluded,theretailerhasheld on to the price point and even added more merchandise at the price. So, when you stroll intoaZarastore,youwon’thave togohuntingtofindtheoneor two products at this price. TherearearangeoftopsandTs to be had,and that seems to be drawing in more customers. Kumar says finmin had asked banks to tighten their systems following the fraud saidoneofthestepswastolink SWIFT to the CBS to avoid potential illegal activities. PNB last week said LoUs were issued fraudulently by one of its branches in Mumbai tofirmsofjewellersNiravModi and Mehul Choksi through the SWIFT system, without making corresponding entries in the CBS,as was the procedure. Continued on Page 2 Continued on Page 2 1,817 4,148 2,623 3,612 2,315 Nuclear 6,780 Bio-energy 8,528 Small hydro 4,418 Diesel 838 Coal 1,92,972 Solar 2016 2017 2015 2013 2017 2016 882 Installed power generation capacity (MW) Total: 3,33,550 Gas Wind 17,052 2015 740 2013 4,004 4,134 8,040 WIND 1,729 SOLAR 2014 COAL 25,150 32,849 Hydro 44,963 Generation game What will be the ramifications of a new type of gene that can pass on acquired characteristics? Mice experiments with genes coding for proteins linked with schizophrenia offer some worrying insight ■ Science & Tech, P15 Summer discount on airfares for early birds ARUN NAYAL New Delhi, February 23 ■ `390 price point was introduced in January sale season ■ Price point continues even though the sale has ended Zaradidn’treplytoanemail query from FE on what prompted the shift. Continued on Page 2 IF YOU ARE planning a holiday during the summer break in May-June,the time to book your air tickets is now because fares on most routes will come cheaper than what it was last year during the same period. Owing to capacity expansion bymost carriers in the last few years, fares on four of the six busiest route in the country — Delhi-Bengaluru,DelhiKolkata,Delhi-Hyderabad and 7 6,27 11 5,4 5,549 6,62 1 5,097 4,7 DELDEL22 DEL DEL CU- HYDC MAA LRL DEL - MU DE L- B DEL BL MDE M- DEL U MU RM EL -16.6 -12.9 M Source: -0.8 -8.1 D 2.9 1 Yatra.com Change (%) from 2017 Average airfare on busy routes during May-June if booking done in February (prices in `) Snap! A single tweet wipes out $1.3 bn in market cap SNAP’S FLAGSHIP PLATFORM has lost some lustre, at least according to one social-media influencer in the KardashianJenner clan. Shares of the Snapchat parent company sank 6.1% on Thursday,wiping out $1.3 billioninmarketvalue,ontheheels of a tweet on Wednesday from Kylie Jenner,who said she doesn’t open the app any more. Whetherit’sthedemandsofher new-found motherhood,or the Special Feature QUICK AND CHEAP DIGITAL DANGERS BLOOMBERG New York, February 23 PRESS TRUST OF INDIA Mumbai/New Delhi, February 23 EXPANDING ITS PROBE into the alleged fraud at Punjab National Bank (PNB), the Enforcement Directorate (ED) on Friday summoned Nirav Modi’s wife Ami, an American citizen,for questioning even as the agency froze bank deposits and shares worth about `44 crore of the diamantaire. The ED also seized a huge collection of importedwatches from a workshop location linked to the billionaire diamond jewellery businessman. ED officials said they have put fresh freeze orders on bank accounts containing `30 crore and shares worth `13.86 crore of the Nirav Modi group under thePreventionofMoneyLaunderingAct (PMLA). It has called Modi’s uncle and Gitanjali Gems promoter Mehul Choksi for questioning on February26 at the ED office in Mumbai,they said. ANUPAM CHATTERJEE Capacity addition (MW) PUSHING VOLUMES Zara lowers cost of entry for patrons ■ DFS secretary Rajeev Call it the watershed moment for India's renewable energy sector. Coal-based thermal power not only lost its long-held top slot in the country's electricity capacity addition but was relegated to third position in 2017. Solar power added in the year was more than twice coal-based capacity. 15,951 Continued on Page 2 had confidentially advised banks to implement safeguards, without revealing the specific measures ED freezes Modi assets, seeks to grill wife Coal dethroned 2014 THE SUPREME Court asked the government to set up an expert panel to look into the allegations of FDI violations, malpractices and massive tax evasion by multinational accounting firms (MAFs), including PricewaterhouseCoopers and its network audit firms in India, reports Indu Bhan in New Delhi. It also asked the expert panel to file its report within three months on the issue including whether the statutory code of conduct for CAs require any change or an appropriate legislation “so as to appropriately discipline and regulate these MAFs”. PAGE 2 tion to ensure a legitimate employer-employee relationship is maintained while an employee is working at a third-partyworksite.” staff or auditors. Earlierthisweek,thecentral bank said it had confidentially cautioned banks of such possible misuse of SWIFTon at least three occasions since August 2016,“advisingthemtoimplement the safeguards detailed in the RBI’s communications, for pre-empting such occurrences”. While the RBI hasn't revealed the specific measures it had suggested, the source ■ RBI this week said it Power capacity addition 2016 SC asks govt to set up panel to look into malpractice by MAFs Immigration Services (USCIS) issued new guidelines on H1B visas that relate to thirdparty worksites. Apress statement from the agency said, “USCIS may request detailed documenta- extension of H-1B visas beyond the first three years ■ Intensive documentation goes into specifics on the nature of work ■ Uncertainty for the visa holder if project gets completed before the three-year period 2015 QuickPicks have to show evidence of thirdparty contracts which was earlier required only when requested ■ Need to provide exact dates and employment places as earlier it was not mandatory ■ Higher scrutiny on 2013 INDIA'S INFORMATION TECHNOLOGY (IT) industryis likely to be burdened with more paperwork and come under greater scrutiny on its use of H-1B visas, with the US government unveiling new regulations on Thursday that take effect immediately. The US Citizenship and ■ IT firms will now 2014 FE BUREAU Bengaluru, February 23 NEW RULES 2017 Indian IT is worried as US tightens H-1B visa rules 18,848 THIRD-PARTY WORKSITE 17,722 Prime Minister Narendra Modi with Canadian counterpart Justin Trudeau, his wife Sophie Gregoire Trudeau and their children in New Delhi on Friday TAKING STRONG EXCEPTION to the manipulation of the SWIFT interbank messaging mechanism at Punjab National Bank (PNB) that led to a `11,394-crore fraud, the ReserveBankofIndia(RBI)has directed all banks to link the SWIFT system to their core banking system (CBS) by as early as April 30, top official sources told FE. A similar communication to link the two systems was issued by the central bank in 2016 as well (without a strict deadline, though), and this massive fraud could have been averted had the banking system adopted it with seriousness, said a source familiar with the central bank move. The linkage will make it extremelydifficultforemployees issuing letters of undertaking (LoUs), a critical component of trade financing that is atthecentreofthelatestfraud, to bypass scrutiny of senior 15,575 Hats off New norms announced on Thursday take effect HC rejects Lalu's immediately; adds bail petition in to paperwork, heightens scrutiny fodder scam case THE JHARKHAND HC on Friday rejected the bail petition of former Bihar chief minister Lalu Prasad in a fodder scam case, reports PTI. It rejected the bail petition, saying he was the chief minister and finance minister during the scam period. The HC said all the scam cases seemed to be done in his knowledge. Hence, it was not inclined to release him on bail. ■ PNB fraud could have ■ PNB employees IN THE NEWS Pakistan back on terror financing watchlist A GLOBAL MONEYLAUNDERING watchdog has decided to place Pakistan back on its terrorist financing watchlist, a government official and a diplomat said on Friday, reports Reuters. The move is part of a broader US strategy to pressure Pakistan to cut alleged links to Islamist militants unleashing chaos in neighbouring Afghanistan and backing attacks in India. The US has spent the past week lobbying member countries of the Financial Action Task Force to place Pakistan on a so-called grey list of nations that are not doing enough to combat terrorism financing. SWIFT MOVE recent app redesign, the testament drew similar replies from her 24.5 million followers.Wall Street analysts too have begun to notice, citing recent user engagement trends noticed since the platform’s redesign. Jenner’s tweet was followed late Thursday by one from Maybelline New York, asking its followers if it should stay on the Snapchat platform. The beauty-product brand owned by Paris-based L’Oreal said its “Snapchat views have dropped dramatically,” but it still wanted to On Thursday, shares of Snapchat parent company sank 6.1% Social media influencer Kylie Jenner has large Twitter following at 24.5 m connect with its followers. Citigroup analyst Mark May downgraded the stock to sell from neutral earlier this weekafterseeinga“significant jump” in negative reviews of the app’s redesign. He expects the reviews could cause user engagement to fall, hurting financial results. Meanwhile,astheapptakes criticism,chief executive Evan Spiegel maybecome one of the highest paid executives in the US.After the company’s initial public offering last March, Spiegel got a $636.6-million stock grant thatwill be payable through 2020. “Still love you tho snap,” Jenner hedged in a later tweet. Kylie Jenner @Kylie jenner sooo does anyone else not open snapchat anymore? Or is it just me... ugh this is so sad. Delhi-Chennai — are down in the range of 1-17% if one books around the last week of February for travel sometime during May or June. The remaining two busy routes — Delhi-Mumbai and MumbaiBengaluru — though,have not seen a drop but the hike is not substantial, in the range of 13% over what it during the same period last year. These six routes comprise 70-75% of total passengers flown in a month. Continued on Page 2
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