OPINION, P8 MARKETS, P10 FINANCIAL INCLUSION EDITORIAL Monsanto wins at SC, but govt ensures it loses on the ground DoT quizzes Trai on its spectrum pricing model, but DoT also to blame for fiasco INTERNATIONAL, P14 INSIDER-TRADING RBI sets up digital payments committee headed by Nilekani US court rejects Rajat Gupta's bid to overturn conviction LUCKNOW, WEDNESDAY, JANUARY 9, 2019 FOLLOW US ON TWITTER & FACEBOOK. APP AVAILABLE ON APP STORE & PLAYSTORE WWW.FINANCIALEXPRESS.COM READ TO LEAD VOL XII NO. 51, 18 PAGES, `6.00 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: 35,980.93 ▲ 130.77 NIFTY: 10,802.15 ▲ 30.35 NIKKEI 225: 20,204.04 ▲ 165.07 HANG SENG: 25,875.45 ▲ 39.75 `/$: 70.20 ▼ 0.52 `/€: 80.36 ▼ 0.67 BRENT: $58.14 ▲ $0.81 GOLD: `31,734 ▼ `30 SC restores Monsanto patent, for now IN THE NEWS Gopinath joins IMF as first female chief economist PROMINENT INDIANAMERICAN economist Gita Gopinath has joined as the chief economist of the International Monetary Fund, becoming the first woman to occupy the top post at the global lender, reports PTI. Gopinath joined last week at a time when she believes the world is posing challenges to multilateral institutions. Pvt FM channels to get nod for AIR news broadcast PRIVATE FM CHANNELS will be allowed to broadcast All India Radio news in English and Hindi, reports PTI. The FM channels will have to carry the AIR news in an unaltered format and it will be available free of cost on a trial basis till May 31 this year. Final call on the complex question by trial court; revenue streams suspect sans NoC link INDU BHAN New Delhi, January 8 MULTINATIONAL BIOTECH COMPANIES that feared a premature closure of the potentiallyexponentialIndianmarket for their genetically-modified plant seed technologies saw a rayofhopeonTuesday,withthe Supreme Court restoring Monsanto’s (now Bayer Monsanto) BT cotton patent in India till its validityis decided finallybythe lowercourt. This means that the USbased biotech major that has virtually frozen its India plans, hamstrung byadverse governmentpolicies,couldaskitslocal sub-licencees like Nuziveedu Seeds for royalties under the Patents Act; however, analysts said it could still find its hands tied in this aspect as the local firms no longerrequire annual NoCsfromthebiotechmajorto sell seeds bearing the patented technology. A Bayer spokesperson said: “The Supreme Court has restored the order of the single judge bench of the Delhi High ■ Mar 28, 2017 Delhi HC’s single judge rules that Monsanto’s termination of its sub-licence agreement for GM hybrid cotton seeds with Nuziveedu Seeds was illegal and arbitrary, asks domestic seed cos to pay all future royalty payments/ trait fee as per govt stipulations ■ May 2, 2018 HC division bench strikes down Monsanto’s patent, permits it to approach PPVFRA for registering the (plant) variety within three months PRESS TRUST OF INDIA New Delhi, January 8 gene,havingbeeninsertedinto a plant, became a plant itself and ceased to be a patentable ‘product’underthePatentsAct. The two-judge bench also said Monsanto could alternatively seek protection of its BollgardII technology,which helps the cottonplantsresistthedreaded bollworm,undertheProtection of Plant Varieties and Farmers Rights Act 2001 (which also entities the firm to trait fees but offers much less commercial scope). Continued on Page 2 Continued on Page 2 ■ July 6, 2018 ■ Jan 8, 2019 SC restores Monsanto’s patent claim till HC decides validity Court which prima facie validatesourpatentandhassentit back for a full trial by evidence considering the complexities involved. We feel confident aboutdefendinganychallenge to our patent by presenting solid scientific evidence and seek adjudication by the trial court on the issue of infringement of the patent.” The patent was rendered non-enforceable in India by a division bench of the high court in May 2018.It had concurred with the government's contention that, the patented LS passes 'historic' Bill; most parties support ALANDMARK BILL seeking to provide 10% reservation in jobs and education for the general category poor was passed by the Lok Sabha on Tuesday, with most parties backing the measure, described by the government as “historic” and in the country’s interest. As many as 323 members voted in support of Bill and only three voted against, underlining the cross-party support the politically crucial Bill elicited. Replying to an over fourand-a- half hourdebate,social justice minister Thaavarchand Gehlot sought to allay doubts raised byseveral opposition members about the legislation’s fate if challenged in the Supreme Court, saying he can say with confidence that the apex court will accept it. The Modi government’s policy and intention is good and that is why it has enabled the reservation for the poor in the general category with Constitutional amendment, he said, seeking support of all parties for the passage of the Constitution (124th Amendment) Bill 2019. SC issues notice to Monsanto, Nuziveedu Seeds, on cross-appeals ● LIFETIME ACHIEVEMENT AWARD: ARUNDHATI BHATTACHARYA ● UPPER-CASTE QUOTA Special Feature Fund play Side-pocketing in MF: Pros and cons for retail investors OF GRIT AND GRACE SHOBHANA SUBRAMANIAN Mumbai, January 8 THEY DON’T MAKE them like Arundhati Bhattacharya any more. A public sector CEO with the confidence to say no with the full knowledge it might cost her the job. “I always asked for everything in writing,” says the former chairman of State Bank of India (SBI).But didn’t it get her intotrouble?No.Theansweris matter of fact: They gave me an extension. But then Bhattacharya’s has always been a voice of reason, her expectations always rational. And she is the constant learner,quick to build on an idea even if it is from the liftmanandmakingdeepdives to keep abreast of digital banking. To top it all,she was born courageous; even as ayoung girl in small-town India, she was never scared to travel on her own. The secret of her success in her words: Stay grounded,you will be accessible and you can hear the things you need to hearnotwhatyouwanttohear. That’s how she not only survivedthepullsandpressuresof life in the country’s top public sectorbank,she thrived.Apeople’s person, Bhattacharya took on the trade unions negotiating skillfully to ensure the five associates of SBI were merged with it. After a lifetime in banking, and having left SBI a more ILLUSTRATION: ROHNIT PHORE BT COTTON credible institution, Bhattacharya is itching to be back with her books, determined to write a thesis.Abandoning her subject in college — English Literature — she is looking to use her rich experience to research financial inclusion. That doesn’t mean she won’t load up on more novels even if her side table is groaning under the weight of half a dozen tomes. But it might mean her family doesn’t get to taste her mutton vindaloo as often as it would like to. Or her roast chicken sandwiches which were such a hit during herdays in Kharagpurbecause sheusedmayonnaise—which she made herself—something of a novelty in those days. But despite her busy schedule — she is working with a couple of NGOs — Bhattacharya hopes she won’t miss out on travel and visits to flea markets to pick up some bargains. Alreadyshe’s spending a lot more time in herfavourite city — Kolkata. But it’s New York that enchants her with its many museums, public libraries and Central Park. Bhattacharya enjoyed her stint there although it was not an easy assignment. Indeed, given her daughter was very young at the time she made some very difficult choices. But then she is tough,personifying in some ways the hardy Tree of Heaven — the main metaphor in one of her favourite books A Tree Grows in Brooklyn. It hasn’t always been easy. But that’s not how India’s ace banker would have wanted it. Debt funds see outflow of `1.52 lakh crore Side-pocketing in mutual funds is like a double-edged sword, with the potential to protect as well as harm the investors, especially retail investors ■ Personal Finance, P13 FE BUREAU Inflows into the equity mutual funds at `4,442 crore in December 2018 is the lowest in the past 27 months. Debt funds saw an outflow of `1.52 lakh crore. Report on Page 11 Redemption/ repurchases for equity & debt funds QuickPicks Govt plans to infuse `4,000 cr into three state-run insurers THE CENTRE is considering infusing around `4,000 crore next fiscal into three state-run general insurance firms — National Insurance Company, Oriental Insurance Company and United India Insurance Company — that it has proposed to merge, reports Banikinkar Pattanayak in New Delhi. The capital infusion is aimed at improving the solvency of these companies, two of which (barring Oriental Insurance) are already struggling to meet the solvency ratio requirement of 1.5. PAGE 2 RBI allows card networks to offer tokenisation on third-party apps THE RBI on Tuesday permitted authorised card payment networks to offer card tokenisation services to any token requestor, or third-party app providers, subject to certain riders, reports fe Bureau in Mumbai. All existing instructions of the RBI on safety and security of card transactions, including the mandate for additional factor of authenticationand PIN entry, shall be applicable for tokenised card transactions as well. PAGE 10 TVS Motor calls for cut in GST rate on two-wheelers TVS MOTOR Company joined other twowheeler companies, including Hero MotoCorp, in seeking reduction of theGST rate on twowheelers, reports fe Bureau in Chennai. Venu Srinivasan, chairman, TVS Motor, pointed out that the mass commuting segment should not be treated on the lines of luxury goods. PAGE 6 4,442 85,489 CBI DIRECTOR 90,000 Equity -90,000 15,390 -180,000 -270,000 Jan 2018 Equity includes equity, ELSS and arbitrage; debt includes liquid, income and gilt; Source: Amfi -1,52,307 Dec 2018 IL&FS CLASSIFICATION RBI rejects bankers’ plea for six-month moratorium MITALI SALIAN Mumbai, January 8 THE RESERVE BANK of India (RBI) has turned down a requestfrombankersforaspecial dispensation forasset classification normwith respect to theirover`50,000-croreexposure to IL&FS and its subsidiaries. The request was made bybankers last month as recovery efforts is impacted as the National Company Law Appellate Tribunal (NCLAT) is hearingagovernmentpetition urging a 90-day moratorium on repayments by IL&FS and its subsidiaries. A banker, who is aware of the development,told FE:“The central bank hasn’t given anything in writing, but has verbally mentioned that no further special forbearance is requiredincaseofIL&FSgroup loans. They (RBI) have suggested that banks stick to the schedule of asset classification norms in case of these loans.” With RBI refusing to allow special dispensation, several banks will have to classify exposure to IL&FS as a nonperforming asset for the quarter ended December. Banks had sought a sixmonth moratorium on classification of their exposure to the beleaguered group. Continued on Page 2 SC allows Vedanta to reopen plant ANANTHAKRISHNAN G New Delhi, January 8 0 Debt ● COPPER SMELTER Verma back at helm, but curbs on powers (` crore) Enterprise set to become world's data steward With global data volume set to grow from 33 ZB in 2018 to 175 ZB by 2025, a robust data management strategy is key for businesses, says Seagate Technology’s BS Teh ■ eFE, P13 180,000 FE BUREAU New Delhi, January 8 THE SUPREME COURT on Tuesday set aside the October 23, 2018, order of the Central Vigilance Commission (CVC) and Union government divesting CBI director Alok Kumar Verma of his powers and functions, finding that it went against the “legislative intent” to“ensurecompleteinsulation” of the CBI director “from all kindsofextraneousinfluences”. However,the bench of chief justice of India (CJI) Ranjan GogoiandJusticesSKKauland K M Joseph made it clear that theissueofVerma’sdivestment was “still open” and asked him to not take any major policy decisions, and confine himself to routine functions, till the high-powered committee that selects the CBI director takes a callonhisfuture.Thecourtsaid thecommittee,comprisingthe Prime Minister, CJI and leader ORDER, ORDER ■ SC says issue of of the Opposition,should considerthe matter“at the earliest and, in any case,within a week from the date of this order”. CLEARING THE WAY for Vedanta Resources to reopen its Sterlite copper smelter in Tamil Nadu, the Supreme Court on Tuesday refused to staya National GreenTribunal (NGT) order allowing resumption of the plant. AbenchheadedbyjusticeRF Nariman though sought response from Vedanta on the state government’s appeal against the NGT order. It said the NGT’s order will continue till the final outcome of the appeal. It, however, stayed the MadrasHighCourt’sDecember 21 order that restrained Vedanta from reopening the plant after protests by activists and local groups.The Madurai benchofthehighcourthadsaid thatstatusquowouldremainin effect until January21. Continued on Page 2 Continued on Page 2 Verma’s divestment was 'still open'; Verma asked to not take any major policy decisions ■ Committee that selects CBI director asked to take a call on Verma's future soon Alok Verma NUMERO UNO Amazon becomes most valuable company, inching past Microsoft BLOOMBERG New York, January 8 AMAZON.COM SURPASSED MICROSOFT to become the world’s largest public company on Monday, in the latest example of the list of Wall Street’s biggest names being reordered.Sharesofthee-commerce company rose 3.4%, a rallythat gave it a market capitalisation of $797 billion, according to Bloomberg data. While this is down from Amazon’s record market cap, which topped $1 trillion in September, it was enough to push it past Microsoft at $789 billion. Shares of Microsoft, which claimed the title of the world’s mostvaluable stock in November,rose 0.1% on Monday. Such megacap technology and Internet stocks have been jockeying for the top spot for weeks, and Amazon briefly claimed the crown in early December. Both companies are now notably larger than Apple, A new king in town? Market cap ($ trillion) Apple Microsoft Amazon 1.1 0.790 1.0 0.799 0.9 0.8 0.7 0.703 0.6 Jan 2018 Source: Bloomberg Dec 2018 whichhadheldthepositionfor years. The iPhone maker now hasamarketcapofabout$702 billion, down from a record $1.1 trillion in early October. The company has been pressured by weaker-thanexpected iPhone demand in China. Last week, it cut its sales outlook, sending the stock to its lowest level since April 2017. Applecurrentlystandsasthe fourth-largestUSstock.Inthird place is Alphabet, the parent companyofGoogle,whichhasa market cap of $745 billion. S&P 500 futures gained 0.6% following a near 4% surge on Wall Street since Friday,led byAmazon and Netflix which have been recovering some of the ground they lost during a brutal end to 2018. Amazon.com reported a record-breakingholidayseason as shoppers loaded theironline baskets with items from Echo speakerstoCalvinKleinclothes, suggesting consumer optimism isn’t being deterred by a tumbling stock market.
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