OPINION, P8 COMPANIES, P4 SHOBHANA SUBRAMANIAN RBI action in Axis Bank seems a case of selective outrage INTERNATIONAL, P14 EDITORIAL NEW ROLE PORN STAR CASE Changing animal trading rules a big relief to farmers, but why did it take a year? Wipro’s Rishad Premji appointed Nasscom chairman for 2018-19 Trump cries foul as FBI raids offices of his lawyer Cohen MUMBAI, WEDNESDAY, APRIL 11, 2018 FOLLOW US ON TWITTER & FACEBOOK. APP AVAILABLE ON APP STORE & PLAYSTORE WWW.FINANCIALEXPRESS.COM READ TO LEAD VOLUME XXXXXV NO. 329, 26 PAGES, `7.00 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: 33880.25 ▲ 91.71 NIFTY: 10402.25 ▲ 22.90 NIKKEI 225: 21794.32 ▲ 116.06 HANG SENG: 30728.74 ▲ 499.16 `/$: 64.99 ▲ 0.03 `/€: 80.13 ▼ 0.32 BRENT: $70.14 ▲ $1.49 GOLD: `30624.00 ▲ `98.00 DEFEXPO A RED initiative appears in today’s edition of Financial Express. These pages are an initiative of the marketing solutions team of The Indian Express Group and contain content paid for by advertisers. These pages should be read as an advertisement. ● REORGANISATION SBI to take chunk of SBI Caps SHAYAN GHOSH & BHAVIK NAIR Mumbai, April 10 STATE BANK OF INDIA (SBI) may absorb a large part of SBI Capital Markets’ (SBI Caps) client-facing businesswhich is believed to have proposed debt recasts for companies that were not warranted. Persons familiar with the developmentsaidthereorganisation may have been prompted bya nudge from the Reserve Bank of India (RBI). A review of SBI Caps’ recommendations had revealed that most of the debt restructuring exercises for clients had failed. Without offering any details of the exercise, SBI chairman Rajnish Kumar told FE that therewas no final decision yet. An email sent to SBI Capsremainedunansweredtill the time of going to press. “Finerdetailsofmostmajor debt recast exercises underSBI were worked out by SBI Caps. In several instances, a recast had resulted in the problem being postponed,it was a temporary solution,” one of the persons explained. Continued on Page 2 ASIA’S DAVOS China’s Xi pledges greater openness ● ‘SLAUGHTER’ OUT Draft animal trade rules dilute earlier ones FE BUREAU New Delhi, April 10 Vows ‘new phase’, more IP protection amid Trump trade dispute; warns against return to ‘Cold War’ mindset BLOOMBERG Boao, China, April 10 CHINESE PRESIDENT XI JINPING reiterated pledges to open sectors from banking to automanufacturinginaspeech that also warned against returning to a “Cold War mentality”amidtradedisputeswith UScounterpartDonaldTrump. Xi pledged a “new phase of opening up” in his keynote addressonTuesdaytotheBoao Forum forAsia,China’s answer to Davos. While the speech offered little new policy, Xi affirmed or expanded on proposals to increase imports, lower foreign-ownership limits on manufacturing and expand protection to intellectual property — all central issues in Trump’s trade gripes. “Human society is facing a major choice to open or close, to go forward or backward,” Xi told hundreds of investors gatheredontheresortislandof Hainan,in a speech that didn’t mention Trump’s name. “In today’s world, the trend of peace and cooperation is moving forward and the Cold War mentalityandzero-sum-game thinking are outdated.” Trade talks between the world’s biggest economies broke down last week after the TrumpadministrationdemandedthatChinatakestepstocurtail support for high-technol- with gold and theyen. Xi’s long-planned speech — marking40yearsafterthefirst economic reforms transformed China — was being closely watched after Trump’s plantohithundredsofChinese productswithduties.Thecountry faces a credibility gap after yearsofpromisestofreeupthe economy were followed by more centralised control,market-access barriers and state support for local companies. Those practices are at the centreofTrump’sthreatstolevy some $150 billion of tariffs againstChina.TheUShasasked the country to reduce its trade surplus by$100 billion,cut tariffsoncarsandstopforcedtechnologytransfers byforeign corporations,among otherthings. A White House official who watched a broadcast of Xi’s speech said the Chinese president’sreferencetoautosfollowingTrump’sTwittercomplaints about the issue appeared to be an opportunityto develop trust between the two sides. TALKING TRADE ■ Dialogue between China and the US broke down after the Trump administration last week demanded that China take steps to curtail support for hightechnology industries ■ Xi’s conciliatory tone helped bring risk appetite back to Asian markets as shares rose and Treasuries extended declines with gold and the yen ■ Xi’s long-planned speech was being closely watched after Trump’s plan to hit hundreds of Chinese products with duties ogy industries, a person familiar with the situation said.The conciliatory tone of Xi’s speech helped bring risk appetite back toAsianmarketsassharesfrom Sydney to Hong Kong rose alongside oil and metals and Treasuries extended declines Continued on Page 2 ■ China's tariff cut plans may help India, Page 2 THE GOVERNMENT HAS notified a fresh set of draft rules to curb prevention of cruelty to animals, substantially diluting the norms unveiled in May last year that crippled the cattle trade and temporarilyhit India’s buffalo meat exports. The draft Prevention of Cruelty to Animals in Animal Markets Rules, 2018,released bythe ministry of environment on March 24 omitted the word “slaughter” — the earlier rules, the implementation of which was subsequently stayed by the courts,had disallowed the sale of cattle for slaughter in animal markets. The new draft, however, merely says that“no unfit animal oryoung animal shall be sold in an animal market”. Continued on Page 2 FE BUREAU New Delhi, April 10 AFTER A LARGELY smooth roll-out of the interstate electronic way bill — a mechanism totrackcargomovementinthe goods and services tax (GST) regime—fromApril1,thegovernment on Tuesday said five states would implement the schemeforintrastatetransport as well, effective April 15. The states — Andhra Pradesh, Gujarat, Kerala,Telangana and Uttar Pradesh — together generated the bulk of interstate BLOOMBERG San Francisco, April 10 GOOGLE HAS filed an appeal in the National Company Law Appellate Tribunal (NCLAT) against a Competition Commission (CCI) order that found it guilty of ‘search bias’, sources told Reuters. In February, CCI fined Google `136 crore, saying it was abusing its dominance in web search and advertising markets. PAGE 7 BJP richest national party, total income `1,034 cr in FY17: ADR SEVEN NATIONAL parties declared a total income of `1,559.17 crore in 2016-17, with the BJP having the highest — `1,034.27 crore — an Association for Democratic Reforms study released on Tuesday said, reports PTI. “This forms 66.34% of the total income of national parties during 2016-17,” it said. The Congress followed with `225.36 crore (14.45%). Cane arrears: Take steps against defaulters, Paswan tells states CONCERNED OVER high cane arrears, food and consumer affairs minister Ram Vilas Paswan has written to chief ministers of producing states asking them to issue “strict directions to all sugar mills” and also take necessary action against defaulters to ensure dues are cleared at the earliest, report Prabhudatta Mishra and Banikinkar Pattanayak in New Delhi. PAGE 3 FACEBOOK CHIEF EXECUTIVE officer Mark Zuckerberg, in prepared testimony for the US House of Representatives, said all of Facebook’s problems are his mistake. The world’s largest socialmedia company didn’t do enough to prevent its tools from being used for harm, especially in terms of fake news, foreign interference in elections, hate speech, developer policies and data privacy, Zuckerberg, Facebook’s cofounder,said. “Itwas mymistake,and I’m sorry,” Zuckerberg added, according to a copy of the prepared testimony ahead of his appearance in front of the House Energy and Commerce Committee on Wednesday. “I started Facebook, I run it, and I’m responsible for what happens here.” Zuckerberg is due to testify to Congress on Tuesday and Facebook CEO Mark Zuckerberg (centre) arrives for a meeting with senator JohnThune, on Capitol Hill, inWashington Wednesday in the midst of the worst privacy crisis in Facebook’s history. He will try to explain how much Facebook contributes to theworld,while saying he didn’t take a broad enough view of the consequences of the company’s technology. The prepared testimony recounts many of the updates Facebook has made to improve securitysince revelations that Cambridge Analytica,a political consultant with ties to US President Donald Trump’s campaign, obtained information on as many as 87 million users without their consent. Continued on Page 2 KING OFF THE ROAD Maruti pips M&M to take top spot in utility vehicles in FY18 ARUN NAYAL & SHWETA BHANOT MEHROTRA New Delhi/Mumbai, April 10 MARUTI SUZUKI INDIA sold more utilityvehicles (UVs) than Mahindra & Mahindra (M&M) in 2017-18 to emerge the top player in the domestic passenger vehicles market with a share of 50%. Its share in 2016-17was 47.4%. Society of Indian Automobile Manufacturers (SIAM) data released onTuesdayshowedMaruti’stotalsales of UVs in 2017-18 was 253,759 units,giving it a market share of 27.53% up from 25.7% in 2016-17. Market share FY17 FY18 (in %) umes were up 15% over 201617,a pace that was nearly twice as high as the passengervehicle (PV) segment growth rate. In a first,the Japanese company notched up sales of over 1.5millionunitsacrossallproducts.At 1.65 million units,volPVs TWO-WHEELERS Maruti Suzuki HMSI 47.39 50.29 Tata Motors 5.03 5.71 TVS Gainers 26.87 28.6 14.15 14.24 Hyundai Hero MotoCorp M&M Bajaj Auto 16.73 16.31 7.78 7.69 Losers 11.37 9.77 37.89 37.57 FE BUREAU Mumbai, April 10 AION INVESTMENTSAND JSW Steel have won the approval of creditors, snapping up the bankrupt Monnet Ispat & Energy for an estimated `3,500-4,000 crore. The steelmaker’s total outstanding debt is more than `12,000 crore, indicating lenders may have taken a huge haircut. “As an upfront payment, the lenders are likely to receive around `2,750 crore,” a person familiar with the development told FE on condition of anonymity. Monnet Ispat said onTuesday said a committee of creditors (CoC) has approved the resolution plan submitted by Aion Investments and JSW Steel by a 98.97% vote. “In addition to repaying the dues to the lenders, the resolution plan also includes some investment in Monnet Ispat’s plant,” the person quoted earlier said. Total value of resolution plan likely around `3,500-4,000 crore Lenders to receive upfront payment of `2,750 crore Total debt of the company stood at `12,262 crore at end of FY17 Monnet Ispat owns integrated steel plant of 1.5 million metric tonnes per annum The meeting of the CoC,led by the State Bank of India,was held on April 7, where the resolution planwas presented to the CoC. The voting commenced on April 9 and ended on April 10, the company said in a stock exchange notification. The insolvency resolution processforMonnetIspatbegan onJuly18,2017,undertheprovisions of the Insolvency and Phased roll-out from April 15 FB problems my mistake: Zuckerberg Google moves NCLAT against CCI’s ‘search bias’verdict Creditors approve Aion-JSW bid for Monnet Ispat Energy INTERSTATE E-WAY BILL CONGRESS HEARING QuickPicks STEEL DEAL Although it has been a late entrant to the segment, productsliketheErtiga,BrezzaandSCrosshavebeenpopular.M&M, which has forlong ruled the UV segment,sold 233,915 units in 2017-18,commanding a share of 25.38%, smaller than the share of 29.20% in 2016-17. Tata Motors, whose Tiago and Nexon proved popular, improved market share in the PV segment to 5.71% in 201718 from 5.03% in 2016-17. Continued on Page 2 CESS POOL ■ AP, Gujarat, Kerala, Telangana, UP to be first to have system ■ Over 60% of all interstate bills so far came from these states ■ Other states to join later in three batches billssinceitsroll-outonApril1. InKarnataka,thee-waybillsystem has been in place since April 1 for both interstate and intrastate transport. The e-way bill is a crucial anti-evasion measure, which is expected to plug revenue leakages of `10,000 crore in business-to-consumer transactions. Earlier,theGSTCouncilhad tosuspendaplantorolloutthe system in February as the IT system crashed owing to more-than-estimated traffic. Continued on Page 2 ■ Govt to have controlling stake in GSTN, Page 3 BankruptcyCode,2016.Sumit Binani was appointed as the resolution professional (RP). On March 3, the company hadsaidtheplanreceivedfrom the Aion-JSW consortium has beencirculatedtoallthemembers of the CoC for obtaining internal approvals so that the resolution plan could be put to vote in the last week of March. Continued on Page 2 Start-ups P13 Aahaa Stores makes purchase of office supplies easy The start-up’s target customers are banks, insurance firms, NBFCs, MNCs and IT firms
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