ECONOMY, P2 COMPANIES, P4 OALP-6 AUCTIONS 21 oil & gas blocks on offer, $300-400 m investment expected INTERNATIONAL, P8 AMBITIOUS TARGET MAHINDRA-SPEAK MOVING FORWARD Tap opportunities in post-Covid world to take exports to $400 billion: PM ‘Will measure social impact as rigorously as financial performance’ US business groups urge Biden to restart trade talks with China NEW DELHI, SATURDAY, AUGUST 7, 2021 FOLLOW US ON TWITTER & FACEBOOK. APP AVAILABLE ON APP STORE & PLAYSTORE WWW.FINANCIALEXPRESS.COM READ TO LEAD VOL. XLVII NO. 136, 26 PAGES, `10.00 (PATNA `10.00, RAIPUR `10.00) P U B L I S H E D F R O M : A H M E D A B A D , B E N G A L U R U , C H A N D I G A R H , C H E N N A I , H Y D E R A B A D , K O C H I , K O L K ATA , L U C K N O W, M U M B A I , N E W D E L H I , P U N E SENSEX: 54,277.72 ▼ 215.12 NIFTY: 16,238.20 ▼ 56.40 NIKKEI 225: 27,820.04 ▲ 91.92 HANG SENG: 26,179.40 ▼ 25.29 `/$: 74.16 ▲ 0.02 `/€: 87.56 ▲ 0.20 BRENT: $72.41 ▲ $1.12 GOLD: `47,464 ▼ `300 SERUM INSTITUTE of India CEO Adar Poonawalla on Friday said he is hopeful that Covovax, another Covid-19 vaccine being manufactured by his company in India, will be launched in October for adults and for children by the first quarter of 2022, reports PTI. IT rules: Appointed permanent officers, Twitter informs HC TWITTER ON Friday informed the Delhi High Court that it has appointed a chief compliance officer, resident grievance officer and nodal contact person on a permanent basis in compliance of the new Information Technology (IT) Rules, reports PTI. Forex reserves surge by $9.42 bn to all-time high THE COUNTRY'S foreign exchange reserves surged by $9.427 billion to record high of $620.576 billion in the week ended July 30, according to the latest RBI data, reports PTI. In the previous week ended July 23, the reserves had fallen by $1.581 billion to $611.149 billion. ROUND ONE ● FIRST SHOT Win forAmazon as SC stalls Future-RIL deal J&J seeks India EUA for Covid vaccine Upholds Singapore EA’s interim award, says it is enforceable under Indian law PRESS TRUST OF INDIA New Delhi, August 6 BACKGROUND ■ In February 2021, Delhi ■ In Oct 2020, SingaporeTribunal's HC’s single judge had upheld the EA's award & directed FRLto maintain status quo on the deal emergency arbitrator had restrained Future Retail from going aheadwith its dealwith Reliance Retail ■ However, a division bench ofDelhi HC ■ Amazon had then appealed in Supreme Court had stayed the single judge's order INDU BHAN New Delhi, August 6 THE ORDER E-COMMERCE MAJOR AMAZON scored a big victory on Friday with the Supreme CourtupholdingtheSingapore InternationalArbitration Centre’s emergencyarbitrator(EA) award restraining Future Retail (FRL) from going ahead with its `24,713-crore merger deal with Reliance Retail. A bench led by Justice RF Nariman held that an award of an EA is enforceable under the IndianArbitration and Conciliation Act, thus dismissing the argument put forward by FRL that an EA is not an arbitrator upheld thevalidity and enforceability ofthe EA's award ■ It has said that EA's order is valid under IndianArbitration and ConciliationAct ■ FRLhad argued that EAis not an arbitrator under the Indian law ■ The SC has under the Indian law as the termdoesnotfindanymention in the statute. TheSCsaidtheEAorderisan order within Section 17(1) and can be enforced under Section THE IMPLICATIONS ■ The FRL- Reliance deal cannot go ahead and NCLT, Mumbai, cannot approve it now ■ The parties will have to wait for final award by the Singapore Tribunal which concluded hearings last month 17(2) of the Arbitration and Conciliation Act.It further held such award cannot be appealed underSection17(2)of theAct. Continued on Page 2 Local start-ups urge govt to allow direct overseas listing FOUNDERS OFhomegrownstart-upssuchas Byju’s, Cred, Urban Company and BharatPe have jointlywritten to Prime Minister Narendra Modi, urging the government to allow direct overseas listing of Indian companies, reportsPTI.Intheirletter,thefounderspointed out that the current inability of unlisted companies to tap internationalmarkets forraising capitalis“animpedimenttothegrowthambitionsofIndianstart-upsastheiraccesstowider globalpoolsofcapitalisblocked”. ■ Detailed report on Page 4 ● EN ROUTE Special Features Indian EV start-up aims to take on global premium bikes Founded by Narayan Subramaniam and Niraj Rajmohan, Ultraviolette Automotive aims to take on not only e-bikes by the likes on Harley-Davidson, but also petrol bikes. ■ Motobahn, P7 A good show by HDFC in a challenging environment FY22/23/24e PAT raised by 2.5/2.1/3% due to rise in NIMs; core RoEs to stay at c12% over FY21-24e given higher growth in individual loans; ‘Hold’ retained with TP of `2,850 ■ Investor, P7 QuickPicks No yardstick to identify‘rich’ or ‘poor’ farmers, says govt THE GOVERNMENT on Friday informed Parliament that there is no yardstick to determine the financial status of rich and poor farmers, reports fe Bureau in New Delhi. This assumes significance amid demand by many experts to bring rich farmers under the income tax (I-T) net. Since there is no such yardstick, details about number of rich and poor farmers in the country are not there, agriculture minister Narendra Singh Tomar said in a written reply in the Rajya Sabha. PAGE 2 Ola receives bookings from 1,000 cities for e-scooter OLA ELECTRIC on Friday said it has received bookings from over 1,000 cities in India for its Ola Scooter, reports fe Bureau in Chennai. Updating on the much-awaited launch on August 15, Ola CEO Bhavish Aggarwal tweeted the company will deliver its electric scooter and service all across India from the very first day. “India’s EV revolution is here and how! Reservations pouring in from 1,000+ cities, towns.” PAGE 4 Reports about deal talks with Byju’s false, says Vedantu EDTECH PLATFORM Vedantu on Friday termed reports of its talks with Byju's for a potential buyout "false" and said it is not "remotely considering anything of this sort", reports PTI. Reports suggested that talks are underway between the two firms for the past few weeks and have reached an advanced stage, where Byju's is offering a $700-800 million deal to Vedantu. Vedantu co-founder and CEO Vamsi Krishna took to social media to clarify on the reports. PAGE 16 Puri: Work in progress on 1,058-km Metro network in 27 cities PRESS TRUST OF INDIA New Delhi, August 6 UNION MINISTER FOR housing and urban affairs Hardeep SinghPurionFridaysaid1,058 km of Metro network is under construction in 27 cities to boost urban mobility across the country. He was speaking after inaugurating a section of about 289 m between Mayur Vihar Pocket 1 and the Trilokpuri Sanjay Lake stations on the Delhi Metro’s Pink Line via video-conHardeep Puri ference. DMRC has been a trailblazer in urban mobility, and the missing link at the Trilokpuri section of its Pink Line was bridged with least possible disruptions, the ministersaid.Hesaid721kmof Metro line was operational in 18 cities in the country at present,while1,058kmwasunder construction in 27 cities. He praised DMRC on running services with due Covid protocols, and said in the preCovid period, its ridership was about 65 lakh per day, and the hope is to reclaim it gradually. GLOBAL HEALTHCARE MAJOR Johnson & Johnson on Friday said it has applied for Emergency Use Authorisation (EUA) of its single-dose Covid19vaccine in India. EarlieronMonday,thecompanyhad saiditremained committed to bringing its singledose Covid-19 vaccine to India and looks forward to ongoing discussionswiththeIndiangovernment.“On August 5, 2021 Johnson & Johnson Pvt Ltd applied for EUA of its singledose Covid-19 vaccine to the governmentofIndia,”aJohnson & Johnson India spokesperson said in a statement. This is an important milestone that paves the way for bringing the company’s singledose vaccine to the people of India,and the rest of the world, through a collaboration with Biological E,it added. “Bio E will be an important part of our global supply chain network,helping to supply our vaccine through the extensive collaborationsandpartnerships we have with governments, healthauthoritiesandorganisations,” the statementsaid. RATES UNCHANGED RBI ignores inflation, says it will support nascent growth Central bank raises FY22 inflation forecast by 60 bps Accommodative stance to stay to support nascent recovery Inflation forecast for FY22 raised to 5.7%, pressures transitory FE BUREAU Mumbai, August 6 Growth forecast is 9.5%, monetary and fiscal support needed RESERVE BANK OF INDIA (RBI) on Fridaywas unequivocal itwould continue to bat for growth and retain its accommodative stance for as long as necessary to “revive and sustain growth on a durable basis”. The central bank is of the view that both monetary and fiscal support is needed to nurture the‘nascent and hesitant recovery’. To this end, RBI left the repo rate unchanged at 4% even though it upped its inflation forecast for FY22 by a chunky 60 basis points to 5.7%, describing inflationary pressures as transitory and largely driven by adverse supply-side factors. Governor Shaktikanta Das said at extraordinary times like these when the central bank needed to address sev- Additional reverse repo auctions aimed at sucking out excess liquidity Banks say interest rates have bottomed out 6.28 These are extraordinary times we are dealing with...the policy action of RBI has to be nuanced, it cannot be unidirectional or just black and white. It has to be a nuanced policy response, and that is precisely what we have attempted to do. —SHAKTIKANTA DAS, GOVERNOR, RBI 10-year bond yield (%), Intra-day, Aug 6 6.26 6.237 6.24 6.22 6.20 6.18 6.208 Open Previous close: 6.207 Close eral conflicting objectives, policies needed to be nuanced rather than unidirectional. RBI also extended the date forborrowers — underthe resolution framework 1.0 — for achieving specified opera- tional parameters to October thisyear.Moreover,the on-tap TLTRO scheme for support to stressed sectors was pushed forward till end December. Continued on Page 2 Continued on Page 2 IN-PRINCIPLE NOD Shift to ‘controlling shareholders’ concept gets Sebi approval PRESS TRUST OF INDIA Mumbai, August 6 SEBI ON FRIDAY agreed “in-principle” to a proposal to move from the concept of the promoterto“controlling shareholders”,and decided to reduce theminimumlock-inperiodfor promoters afteran IPO. The watchdog has also decided to streamline the disclosurerequirementofgroup companies, the Securities and Exchange Board of India (Sebi) said in a statement after the board meeting. Sebiislookingtomoveaway fromtheconceptofthepromoterto“controllingshareholders” orpersonincontrolasnowadays several businesses, including new-age and tech companies are non-family owned and do nothaveadistinctlyidentifiable Changing landscape ■ More focus on quality of board and management has reduced relevance of the concept of promoter ■ Promoters' holding above minimum promoters' contribution to be locked in for 6 months ■ Sebi also decides to streamline disclosure requirement of group firms promotergroup. Continued on Page 2 ‘Tax demands on post-May 2012 crossborder deals not to create disputes’ WHILETHECentre’sdecision not to pursue the tax demandswithregardtoindirect transfer of Indian assets in deals prior to May 28, 2012, will help resolve the bulk of retrospective tax disputes, experts are confident prospective application of the tax won’t create much disputes either. “The law is clear so there won’t be many cases of disputes in deals after May 2012,” said Mukesh Butani, managing partner of BMR Legal,reportsPrasantaSahu in NewDelhi. ■ Report on Page 2 GETTING THERE Aditi Ashok plays a shot during Round 3 of women's golf at the Tokyo Olympics. At second spot, she remains in strong contention for India’s maiden medal in the sport US DELAY Indian IT professionals fret as 100K green cards at risk of going waste LALIT K JHA Washington, August 6 Agroup of ■ This year's quota 125 ABOUT 1 LAKH employment-based green cards are at the risk of beingwasted in less than two months, causing resentment among Indian IT professionals whose wait for legal permanent residency now runs into decades. A Green Card, known officially as a Permanent Resident Card, is a document issued to immigrants as evidence that the bearer has been granted the privilege Indian and Chinese nationals living in the US filed a lawsuit to prevent the administration fromwasting the Green Cards for employmentbased immigrants is 261,500, far higher than the usual 140,000 ■ AGreen Card is a paper issued to immigrants as evidence that the bearer has been granted the privilege ofresiding permanently in the US of residing permanently in the US. This year’s quota for employment-based immigrants is 261,500, far higher than the usual 140,000, Indian professional Sandeep Pawar told PTI. Continued on Page 14 ON THE JOB Hiring gains momentum, outpaces pre-Covid levels in July SHUBHRATANDON Mumbai, August 6 HIRING MOMENTUM GATHERED further pace in July, surpassingpre-Covidlevelsand indicating a revival in growth and hinting at a sustained recovery in business activity afterthe impact of Covid-19. TheIndianjobmarketregistered an 11% growth in July over June when it grew 15%. This is the second straight month of growth after a pandemic-linked fall in April and May 2021.According to Naukri JobSpeakreport,itsindexonhiring trends touched 2,625, the highest it has everbeen,including the pre-Covid timeline. As in the past few months, the growth has been driven by the increasign need for businesses to digitise their operations.The IT-software or softwareservicessectormaintained its steady and upward growth withan18%month-on-month increase in July, surpassing growth levels of 11% in June and 14% in May. In June this ILLUSTRATION: ROHNIT PHORE IN THE NEWS Hope to launch 2nd Covid vaccine by Oct: Serum CEO sector had see a growth of 52% over June 2019 or in pre-pandemic times. Pawan Goyal,chief business officer, Naukri.com, said July 2021 has provided conclusive proof of the revival of hiring activity after a setback in April andMay.“Themostnoteworthy and consistent growth overthe last few months belongs to the IT/ITESandthetechfunctional areas, which has stayed relatively insular to the Covid effects.Thisdemonstratesdigital transformation of Indian New Delhi businessesiswellunderwayand central to recovery efforts after thepandemic,” he said. According to findings from Xpheno, with over 2.90 lakh active white-collar jobs, July overtook June to emerge as the strongest month in FY22.Also, theclosingfiguresforJuly2021 were twice those of July 2020, whichhadaclosingfigureofjust under1.42lakh,cominginright after the lowest point of 1.32 lakhof June 2020. Continued on Page 14
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