OPINION, P6 ECONOMY, P2 MARKETS, P10 EDITORIAL BANKING BILL GETS RS NOD CONTRARY TO EXPECTATIONS FM Sitharaman says depositors’ interest to be better protected No clamour or rush for loan restructuring, says SBI chairman A 5% trend GDP growth may be the new normal for India District residency programme for PG medical a good idea, but pvt schools shouldn't be burdened NEW DELHI, WEDNESDAY, SEPTEMBER 23, 2020 FOLLOW US ON TWITTER & FACEBOOK. APP AVAILABLE ON APP STORE & PLAYSTORE WWW.FINANCIALEXPRESS.COM READ TO LEAD VOL. XLVI NO. 176, 20 PAGES, `6.00 (PATNA `6.00, RAIPUR `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: 37,734.08 ▼ 300.06 NIFTY: 11,153.65 ▼ 96.90 NIKKEI 225: 23,360.30 ▲ 40.93 HANG SENG: 23,716.85 ▼ 233.84 `/$: 73.59 ▼ 0.18 `/€: 86.39 ▲ 0.34 BRENT: $41.78 ▲ $0.34 GOLD: `50,623 ▼ `635 SMELL A RAT The curve may not be flattening Low positivity in UP, Bihar, Gujarat which account for a high share of tests, mainly RATs, is driving down India’s positivity ISHAAN GERA New Delhi, September 22 ON MONDAY, INDIA reported its lowest tally of daily infectionsinthelast20days,adding 75,083 cases and recording 1,01,468 recoveries. In fact, over the last four days, India has reported more recoveries than infections. Share of India's tests (%) Positivity rate (%) Bihar 20 15 10 5 0 18.6 4.9 3.8 Jul 1 12.1 4.3 0.4 Aug 1 Sep 22 Usually, a higher recovery and a lower positivity should be a sign of the curve flattening but in India’s case, this may not be true. An analysis of daily testing andinfectiondataacrossstates show the recent drop in infections,and,hence,positivityrate may be largely due to some states pulling back on testing and others using more of the less reliable rapid antigen test (RAT) kits. On Monday, for instance, Delhinearlyhalvedtestinglevels from 62,669 a week ago to 33,733 while Bihar conducted 1.73 lakh tests, most of them using RATkits. Continued on Page 5 Infections slowing due to faulty testing As share of RAT in total tests rises, infection levels fall Share of India's tests (%) Positivity rate (%) Delhi 16 12.8 12 6.3 7.6 8 7.9 4 3.6 3.6 0 Jul 1 Aug 1 Sep 22 66% of Delhi's tests, 75% of UP's tests, 90% of Gujarat's and Bihar's daily tests are RAT Share of India's tests (%) Positivity rate (%) Uttar Pradesh 20 15 10 5 0 13.8 3.3 Jul 1 14.6 4.2 9.2 BOARD SEAT DENIED THE FINAL COUNTDOWN Tata Sons offers to buy stake, Valli to take legal recourse now Mistry says time to part ways SAJAN C KUMAR Chennai, September 22 SC restrains Mistry firms from pledging shares till Oct 28, next date of hearing FE BUREAU New Delhi, September 22 WITH TATA SONS on Tuesday offering to buy out the Shapoorji Pallonji Group’s 18.4% stake in the holdco and the SPgroup saying itwas time to separate from the Tata Group,aseventy-yearrelationship is coming to an end. The decision to part ways has been triggered by concerns on the part of the Tata Group that shares ofTata Sons,pledged by the SP Group, could end up in the wrong hands. TATAVS MISTRY NCLAT restores Mistry as Tata Sons chairman Dec 18, 2019 SC stays NCLAT order Jan 10, 2020 SP Group slaps notice for damages from Tata Sons board for blocking fund raising deal May 29 Sept 3 Sept 17 SC seeks response fromTatas on the cross-appeal on Mistry firms seeking proportionate representation on Tata Sons board Tatas move SC to restrain SP Group from raising capital by pledging its shares in Tata Sons Sept 18 Tata Sons hits back, terming the allegations as ‘fertile imagination’ On Tuesday,in a setback for the SP Group, the Supreme Court stayed a move by the formertopledgeitsharestillOctober 28. With its finances strained, the SP Group decided tomakelanexitfromTataSons. “Today,ShapoorjiPallonjiGroup stated before the Supreme CourtthatseparationfromTata Groupisnecessaryduetopotential impact this continuing litigationcouldhaveonlivelihoods andtheeconomy,”thecompany said. “The past oppressive actions,andthelatestvindictive move by Tata Sons that impact the livelihoods of the wider SP Group community leads to the inexplicableconclusionthatthe mutual co-existence of both groups at Tata Sons would be infeasible,”itsaidinastatement. Continued on Page 5 SEPT 19, 2017 MVMurugappan dies WITH AN OVERWHELMING 91.36% of the shareholders of the Murugappa Group voting against a board seat for Valli Arunachalam in the holding company, Ambadi Investments (AIL), the daughter of the former executive chairman MVMurugappan has said she will “pursue justice and take all steps for the same”. Arunachalam, karta of MV Murugappan HUF, told FE she wouldnotshyawayfromtaking the matterto court. “For more than a year now,I have been asking for a board seat,pendingthesettlement,to make sure our rights are preservedasapromoterandmajor shareholder. Finally, they agreed to allowmyboard nomination, but they did not appoint me in the interim,and asked me to wait for the next JAN 4, 2020: Arunachalam publicly seeks board seat at Ambadi Investments 3.4 Aug 2 Sep 22 Share of India's tests (%) Positivity rate (%) Gujarat 12 9 6 3 0 10.5 6.6 4.3 2.7 Jul 1 2.3 5.1 Aug 1 Sep 22 DEBT FUNDS Tighter norms on the anvil: Tyagi FE BUREAU Mumbai, September 22 THE SECURITIES AND Exchange Board of India (Sebi) is working on a slew of norms for debt schemes of mutual funds such that a liquidity crisis that led to the shuttering of six schemes does not recur. Sebi chairman Ajay Tyagi on Tuesday said an expert committee would frame policies for a stress testing methodologythatwould encompass liquidity, credit and market risks for all open-ended debt-oriented schemes. The panel will determine the minimum asset allocation for such schemes in liquid assets, based on the assets, type of investors and outcomeofstresstesting.Acircular is expected “very soon” Tyagi said at the 25th Annual General Meeting of theAssociationofMutualFundsinIndia. In a bid to improve the liquidityin bond markets beyond thetop-ratedpapers,Tyagisaid Sebi was also evaluating a limited purpose central clearing corporationforguaranteedset- Mutual funds shouldn’t attempt to behave like banks. They don’t have the ‘lender of last resort’ comfort as banks have from RBI. The true reflection of their portfolio in its net asset value on a daily basis is the cornerstone of transparency and investors’ trust. —AJAY TYAGI , SEBI CHAIRMAN tlementoftri-partyrepotrades in all investment grade corporate bonds, including those below AAA rated, to boost repo trading in corporate bonds. Continued on Page 16 Skewed system FE BUREAU Power subsidies refuse to go away The National Tariff Policy, 2016 caps crosssubsidy among electricity consumers at 20% of average of cost of supply. Alas, no state has strictly followed this; industrial and commercial consumers continue to be over-burdened, at the cost of the country’s economic competitiveness. 7.33 8.26 0.08 0 Tamil Nadu 5.77 8.03 Uttar Pradesh 8.56 Delhi Tariff cap* 2.2 8.95 4.53 4.2 7.69 Agriculture 10.69 5.11 5.02 7.89 Industrial Domestic Tariffs in `/kWh Karnataka *For all categories of consumers, as per 2016 Tariff Policy Households Electricity prices (US cents/kWh) 35 30 25 20 15 10 5 0 Germany Japan UK US Source: Energy prices & Taxes, IEA Industry India Data of 2016 New Delhi AUG 5 2020 Arunachalam proposes her candidature to office ofdirector AUG 10, 2020: AILsends out AGM notice for Sept 21 meeting to discussArunachalam’s request SEPT 22, 2020 AILshareholders reject resolution seeking directorship for Arunachalam AGM, which was more than 9 months away,”she wrote in an e-mailed response to FE. Continued on Page 16
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