MARKETS, P9 COMPANIES, P4 NO RETROSPECTIVE LIABILITY Sebi rejects request by FPIs to exempt them from paying GST INTERNATIONAL, P8 RISING GRAPH SUCCESS MANTRA FOR FOUNDERS MANAGING DOWNTURN Aided by last year’s low base, non-food credit growth of banks jumps to 15% Startups should aim for both growth and profitability: Nilekani SoftBank to book $34-bn gain by cutting Alibaba stake to 14.6% NEW DELHI, THURSDAY, AUGUST 11, 2022 FOLLOW US ON TWITTER & FACEBOOK. APP AVAILABLE ON APP STORE & PLAYSTORE WWW.FINANCIALEXPRESS.COM READ TO LEAD VOL XLVIII NO. 139, 50 PAGES, `10.00 (PATNA & RAIPUR `10.00) P U B L I S H E D F R O M : A H M E D A B A D , B E N G A L U R U , C H A N D I G A R H , C H E N N A I , H Y D E R A B A D , K O C H I , K O L K ATA , L U C K N O W, M U M B A I , N E W D E L H I , P U N E SENSEX: 58,817.29 ▼ 35.78 NIFTY: 17,534.75 ▲ 9.65 NIKKEI 225: 27,819.33 ▼ 180.6 HANG SENG: 19,610.84 ▼ 392.6 `/$: 79.52 ▲ 0.14 `/€: 81.33 ▼ 0.18 BRENT: $96.04 ▼ $0.27 GOLD: `52,202 ▲ `264 RBI issues strict norms for digital lending space Sebi advisories on IPOs stump market watchers Such loans to be routed only through accounts of regulated lenders Experts say such informal instructions can be challenged in a court of law MOVE AIMED AT CURBING MALPRACTICES IN THE NEWS Centre doubles Aug tax devolution THE CENTRE HAS released two installments of tax devolution to state governments amounting to `1.17 trillion for August, as against the normal monthly devolution of `58,333 crore, to arrest a decline in their capital expenditure, reports fe Bureau in New Delhi. ■ PAGE 2 Hindalco reports record profit in Q1 HINDALCO INDUSTRIES posted a consolidated alltime high net profit of `4,119 crore for the quarter ended June, reports Rajesh Kurup in Mumbai. The company had posted a net profit of `2,787 crore for the same period a year ago. ■ PAGE 4 FE BUREAU Mumbai, August 10 ALL DIGITAL LOANS must be disbursed and repaid through bank accounts of regulated entities only, without passthrough of loan service providers (LSPs) or other third parties, the Reserve Bank of India (RBI) said in its longawaited guidelines forthe seg- GROUND RULES ■ The framework is focused on the digital lending ecosystem of RBI’s regulated entities (REs) and the loan service providers (LSPs) engaged by them ■ Apart from direct disbursals and repayments, the norms mandate that any fees or charges payable to LSPs shall be paid directly by the RE ment,released on Wednesday. The guidelines, aimed at curbing rising malpractices in the digital lending ecosystem, followtherecommendationsof aworkinggroupfordigitallend- ing, whose report was made public in November 2021."The concerns primarily relate to unbridled engagement of third parties, mis-selling, breach of data privacy, unfair business ■ The loan contract must provide for a cooling-off or look-up period ■ Digital lenders' body said the guidelines are a nuanced blueprint that will help the digital lending ecosystem to continue to grow in a responsible manner conduct,chargingofexorbitant interest rates, and unethical recoverypractices,"the RBI said in the final guidelines. Continued on Page 2 JSW arm seals `10.5k-cr green energy deal FE BUREAU Mumbai, August 10 ADDING TO THE steadily growing list of mergers and acquisitions in the renewable energy space,Sajjan Jindal-led JSW Energy on Wednesday signed an agreement to acquireMytrahEnergy’s1,753 MW renewable energy portfolio for an enterprise value of about `10,530 crore. This is the largest acquisition by JSW Energy in a space where investment flows have been steadilygrowing over the last few months. For instance, in April, Shell Overseas Investment, a wholly owned Prashant Jain, joint MD & CEO, JSW Energy subsidiary of Shell, entered into agreement with Actis Solenergi to acquire 100% of Solenergi Power for $1.55 billion (`11,800 crore). In the same month, Abu Dhabi's International Holding Company announced an investment of $2 billionasprimary capital in three green energy-focused companies of Adani Group – Adani Green Energy, Adani Transmission, and Adani Enterprises. Later in June,Renew Power acquired operating wind and solar plants of 471.65 MW each from an undisclosed sellerfor$388 million (`3,000 crore). Continued on Page 2 ASHLEY COUTINHO Mumbai, August 10 THE SECURITIES AND exchange board of India (Sebi), earlier this year, issued guidelines for companies wanting to go public and seeking exemption from inclusion of certain relative/sinthepromotergroup. It said an exemptionwould be given if the company filed an affidavit from the relative stating that the person does not want to be part of the promoter group. Theabovediktatwasissued via an email to the Association of Investment Bankers of India,orAIBI,anindustrybody. It’s one of several diktats -largely in relation to IPOs -that has been sent in such manner over the past year or so.The flurry of advisories has surprised market watchers because, until recently, changes in guidelines pertaining to public share sales were mostly done through amendments in the issue of capital ON THE WRONG FOOT Domestic airfare cap to end from August 31 VARUN SINGH New Delhi, August 10 and disclosure requirements (ICDR) regulations. “Sebihasbeenissuingthese advisoriestoAIBIforoverayear now.Advisories,whichareclarificatory in nature, help interpret Sebi regulations and align companies to standard market practices,”said a senior lawyer. WITH STABILISATION IN air traffic and prices of jet fuel,the civil aviation ministry has decided to remove the caps -the lower as well as the upper levels -- from August 31. The ministry had imposed caps on domestic airfares based on flight durations when services were resumed on May 25, 2020 after a two-month lockdownduetotheCovid-19pandemic. "The decision to remove air fare caps has been taken after careful analysis of daily demand and prices of air turbine fuel (ATF). Stabilisation has set in and we are certain that the sector is poised for growth in domestic traffic in the near future," civil aviation minister Jyotiraditya Scindia said on Twitter. "The airlines/airport operators shall, however, ensure that the guidelines to contain the spread of Covid are strictly adhered to and Covid appropriate behaviour is strictly enforced by them during the travel," the civil aviation ministry said in a statement on Wednesday. Continued on Page 2 Continued on Page 2 ■ Informal diktats being issued by Sebi to AIBI with regard to IPOs ■ Until recently, changes in guidelines pertaining to public share sales were mostly done through amendments to Issue of Capital and Disclosure Requirements regulations ■ Guidelines clarificatory or interpretative in nature New Delhi ■ Advisories being sent for over a year now
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