OPINION, P8 COMPANIES, P6 FOR SALE CEA Subramanian has been a loud voice for reforms Tragic that farmers didn’t mention farm crisis to the PM in their interaction with him COMPANY POLICY VIOLATION Jindal-led JSW Steel plans bid for ArcelorMittal's Romanian plant EDITORIAL INTERNATIONAL, P14 Intel CEO resigns after probe into relationship with employee MUMBAI, FRIDAY, JUNE 22, 2018 FOLLOW US ON TWITTER & FACEBOOK. APP AVAILABLE ON APP STORE & PLAYSTORE WWW.FINANCIALEXPRESS.COM READ TO LEAD VOL. 58 NO. 147, 18 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: 35,432.39 ▼ 114.94 NIFTY: 10,741.10 ▼ 30.95 NIKKEI 225: 22,693.04 ▲ 137.61 HANG SENG: 29,296.05 ▼ 400.12 `/$: 67.99 ▲ 0.08 `/€: 78.42 ▲ 0.31 BRENT: $73.03 ▼ $1.71 GOLD: `30,437 ▼ `152 STRESSED ASSETS ● REGULATORSPEAK Says sector-specific issues need to be addressed; DFS may call another meeting soon FE BUREAU Mumbai, June 21 No special relief to power sector: RBI FE BUREAU New Delhi, June 21 Sun day Revellers practice yoga before sunrise as they welcome in the Summer Solstice at Stonehenge stone circle in southwest Britain on Thursday REUTERS IN THE NEWS Cleartrip acquires S Arabia’s Flyin CLEARTRIP HAS ACQUIRED Saudi Arabian online travel aggregator Flyin for an undisclosed amount, reports fe Bureau in Bengaluru. The transaction will close after the final regulatory and corporate approvals. With this acquisition, the combined entity will have an over 60% market share in West Asia. Cleartrip said the acquisition was aimed at strengthening its presence in the West Asian market. RIL shares at fresh closing high SHARES OF RELIANCE Industries continued their upward trajectory for the third straight session on Thursday, rising over 1% to a fresh closing high, reports PTI. The stock gained 1.22% to close at `1,032.35 on the BSE. The company's market valuation also zoomed `7,982.44 crore to `6,54,084.44 crore. TRADE TIFF WITH US India’s retaliatory tariffs to take effect on August 4 Govt notifies 29 items for extra levy, leaves out Harley bikes for now Key items for counterattack Almond Apple Phosphoric acid Diagnostic reagents Binders Additional duty (%) 20 25 15 10 10 Imports from US* ($ mn) 609.6 96.6 96.2 122.87 80.58 *In 2017 FE BUREAU New Delhi, June 21 India's surplus drops, others' rises (Goods trade surplus with US, in $bn) 2016 INDIAONTHURSDAY notified thatitsretaliatorytariffsworth close to $235 million against 29 US products will come into effect fromAugust 4.However, it has kept out Harley-Davidson bikes for now from the list of 30 items it had submitted with the World Trade Organisation (WTO) last week to counter the Trump administration’s move to unilaterally hike duties on Indian steel and aluminium exports. While the retaliatory tariffs could have come into effect 2017 375.6 US 750 810 total 146.8 151.4 EU 347 11 17.1 Canada immediately, India seems to have given some more time to the US, given an upcoming meeting.Also, the fact that the government has excluded Harley from the purview of retaliation for now (“high” IndiantariffonHarleybikeshas beenasorepointwithUSPresident Donald Trump) suggests 24.3 22.9 India China New Delhi is still keeping its doors open for meaningful engagement.AssistantUStrade representative Mark Linscott will visit India to huddle with seniorcommerceministryofficials on June 26 and begin talks on all contentious issues. Continued on Page 2 Special Feature Production curbs ‘We expect to generate ad revenues exceeding `200 cr’ Oil falls below $74/bbl Rajesh Kaul of Sony Pictures Networks speaks about the ongoing FIFA World Cup, and plans ahead for the network after losing IPL to its rival Star India ■ BrandWagon, P13 FE BUREAU Brent crude oil fell to below $74 a barrel as OPEC and its allies inched closer to reaching an agreement on relaxing output curbs at a meeting in Vienna this week. Futures in London for August delivery dropped 1.7%. 73.53 Brent ($/bbl) 71.04 79.57 May 22 Apr 10, 2018 Jun 21, 2018 QuickPick Voda-Idea merger after dues paid THE DOT is expected to clear the Vodafone India and Idea Cellular merger early next week, reports Rishi Ranjan Kala in New Delhi. However, the DoT is expected to ask Vodafone to pay `5,650 crore, or a bank guarantee, and Idea to pay `2,113 crore as one-time spectrum charges dues first. PAGE 2 66 HOT STUFF Spiced-up Swiggy is India’s 2nd food-tech unicorn SWIGGY HAS RAISED $210 million in a round led bySouth Africa’s Naspers and investmenthouseDSTGlobal,setting a stage for a battle between well-funded players in the sizzling food-delivery sector. The financing values the four-year-old start-up at well over $1 billion, according to people familiar with the deal. That makes Swiggythe second unicorn to emerge from the segment, said the people,who asked not to be identified discussing private details, after New Delhi-based Zomato. Start-ups that specialise in delivering all-time favourites from paneer tikka to muttonbiryanihavesnaggedat least half a billion dollars in financingthisyearfromsomeof the world’s largest internet ILLUSTRATION: ROHNIT PHORE BLOOMBERG Bengaluru, June 21 investorsandcompanies.Zomatoreceived$150millioninFebruaryfrom billionaire Jack Ma’s Ant Financial, while Swiggy’s latest round comes on the heels of a $100-million financing in Februaryalso led byNaspers. Itsvaluation has jumped by over a third in the course of a few months, said one of the people familiar with the deal. New investors this time included DST and Coatue Management,joining existing backers Naspers and Meituan Dianping, the Chinese fooddelivery juggernaut. Continued on Page 2 THE RESERVE BANK of India (RBI) on Thursday held its ground and refused to give any special relief to the power sectorfrom its Februarycircular that mandates early detection and time-bound resolution of stressed assets. In a meeting of stakeholders convened by the finance ministry following a directive of the Allahabad High Court, the central bank, instead, favoured expeditious resolution by the government and the firms concerned of sectorspecific issues that have led to the huge pile-up of stressed assets in the sector. RBI executive director Sudarshan Sen is understood to have also indicated that the circular does not bar banks from restructuring the stressed assets and provides enough leeway for the resolu- POWER STRUGGLE About 21% of `10.3 lakh cr gross NPAs in the banking system is from the power sector Total loans to power sector `5.2 lakh crore Total capacity of stressed assets 75 GW Dues to power developers From discoms Because of regulatory delays `14,034 cr `8,000 cr Impact of a flawed coal price index on generators: `850 cr/year tion of such bad loans. The banking regulator highlighted that apart from financial issues, the stress in theregulatedpowersectoralso stems from externalities such as irregular payments from electricitydistributioncompanies, shortage in fuel supplies and regulators delay in raising power tariffs. The RBI’s February circular requires banks to finalise a resolutionplanincaseofadefault on large accounts of `2,000 crore and above within 180 days (irrespective of sector), failing which insolvency proceedings will have to be invoked against the defaulter. Since the deadline for the resolution of the first set of such cases is end-August, power producers have been seeking urgent relief. The circular also stipulates a one-day default rule on term loans, which mandates treating a borrower who misses repayments as a defaulter the very next day. Continued on Page 2 Acting on NSE co-location case, says Sebi’s Tyagi THE SECURITIES AND Exchange Board of India (Sebi) has initiated enforcement action in the National Stock Exchange (NSE) co-location case, chairman Ajay Tyagi said at a press conference on Thursday. The regulator said the enforcement action would be completed shortly since all investigation reports had been examined. The investigations,Tyagi said,have nothing to do with NSE’s delayed initial public offering. The capital markets watchdog has been investigating alleged lapses in high-frequencytrading offered through NSE’s colocation facility. Sebi was investigating allegations that some brokers had unfair access to NSE’s high-frequency trading systems. In March, the NSE management said its attempt at settling the case had not succeeded with the consent application being returned by Sebi. Continued on Page 2 Sebi tweaks rules for IPOs, buybacks and takeovers, Page 11
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