MARKETS, P9 COMPANIES, P4 INTERNATIONAL, P8 TO TOP YES BANK’S `93 CR FOR LAST-MILE DELIVERY BRACING FOR RECESSION Adani Enterprises FPO may fetch bankers more than `100 cr Automakers chase fleet buyers for cargo electric vehicles Spotify to cut about 6% of jobs in latest round of tech layoffs CHENNAI/KOCHI, TUESDAY, JANUARY 24, 2023 FOLLOW US ON TWITTER & FACEBOOK. APP AVAILABLE ON APP STORE & PLAYSTORE WWW.FINANCIALEXPRESS.COM READ TO LEAD VOL XLIV 221, 16 PAGES, `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: 60,941.67 ▲ 319.90 NIFTY: 18,118.55 ▲ 90.90 NIKKEI 225: 26,906.04 ▲ 352.51 HANG SENG: 22,044.65 ▲ 393.67 `/$: 81.39 ▼ 0.27 `/€: 99.82 ▲ 0.95 BRENT: $88.49 ▲ $0.84 GOLD: `56,798 ▲ `28 IN THE NEWS Pakistan plunges into darkness after grid failure MILLIONS OF PEOPLE across Pakistan’s major cities were plunged into a blackout prompted by a power grid failure, dealing another blow to the nation already reeling from surging energy costs, reports Bloomberg. ■ PAGE 8 Few corporates opt for concessional tax THE CONCESSIONAL CORPORATE tax rate of 22% introduced in 2019 is still to be chosen by large sections of India Inc, reports Surabhi. ■ PAGE 2 RBI extends locker agreement date THE RBI on Monday extended the deadline for banks to renew bank locker agreements with their customers till December 31, 2023, reports fe Bureau. ■ PAGE 9 ECLGS saved MSME loans turn into NPAs THE EMERGENCY CREDIT Line Guarantee Scheme, launched in the wake of the pandemic in May 2020, has prevented loans of `2.2 trillion to MSMEs from slipping into NPAs, according to a research report by SBI, reports Banikinkar Pattanayak. ■ PAGE 2 RESULT CORNER AXIS BANK POSTS 62% RISE IN Q3 PROFITAT `5,853 CR ■ PAGE 9 EXPLAINER Who decides what is ‘fake news’ ■ PAGE 15 FE S P E C I A L ‘India is all set to become a gaming hotspot’ HP’s Vickram Bedi on the multiple career opportunities in the gaming segment ■ EFE, P7 TRIBUNAL DIRECTS EXCHANGE TO PAY `100 CR Co-location order set aside in relief to NSE Sebi’s order on Chitra Ramkrishna, Ravi Narain also stayed ■ The members or DATA ABUSE high-frequency traders with prior access to the data indulged in front running, market abuse and fraud ASHLEY COUTINHO Mumbai, January 23 THE SECURITIES APPELLATE TribunalonMondaysetasidethe`624 crore disgorgement order against the National Stock Exchange of India (NSE) by the Securities and Exchange Board of India (Sebi). NSE hasbeendirectedto deposit `100 crore for lack of due diligence to the Investor Protection and Education Fund created by Sebi. Thetribunal,however,upheldthe direction given by Sebi to prohibit NSE from accessing the securities market forsix months and carryout system audits at frequent intervals afterthoroughappraisalofthetechnological changes introduced from time to time is affirmed. The direction of Sebi's whole time member(WTM) directing NSE to initiate enquiry against its employees was also affirmed. "NSE has a duty to ensure transparency and fair access to all the TMs (trading members). For lapses committed by NSE, directions underSections 11 and 11B could be passed and some of the directions of the WTM were rightly passed. ■ The co- location scam relates to the delayed dissemination of tick-by-tick data ■ It is alleged that certain trading members with vested interests were given preferential access to the data However,thedirectionfordisgorgement was unwarranted but the appellant NSE cannot be allowed go scot free and is required to pay a price forthe lackof due diligence on accountofhumanfailuretocomply with thecircularinletterandspirit," the SAT order said on Monday. The tribunal also set aside the direction to disgorge 25% of salary from Ravi Narain and Chitra Ramkr- Sebi passed a series of orders against NSE and former chief executives, Chitra Ramkrishna & Ravi Narain in the case ishna,founder members and former chiefs of the exchange,as well as the direction to prohibit the duo from associatingwithanylistedcompanyor amarketinfrastructureinstitutionor anyothermarketintermediaryforfive years, substituting it for the period undergonebythem.Thecourtallowed appealsforNarainandRamkrishna. Continued on Page 15 Aquarter ofApple’s production to shift to India,says Goyal Country accounts for 5-7% of the company’s output FE BUREAU Gandhinagar, January 23 APPLE MAY SHIFT a quarter of its global production to India from 57% now, commerce and industry ministerPiyushGoyal saidon Monday, showcasing the tech giant's plan as a sign of the country's emerging strength as a global manufacturing base. “They(Apple)launchedthemost recent models from India, manufactured in India,”the ministersaid at the inaugural session of the B20 India Inception Meeting,organised by the Confederation of Indian Industry (CII) here. “If I am not mistaken, they are APPLE'S INDIA STORY Apple has been assembling its flagship iPhone 14 in India since 2017 ■ Apple gets iPhones manufactured by Foxconn, Wistron and Pegatron in India PIYUSH GOYAL, Union minister ■ Its plan to scale up manufacturing in India is in consonance with the strategy to diversify more of its supply chain away from China If I am not mistaken, they are targeting to go up to 25% of their manufacturing ■ It is setting up its largest manufacturing unit in the country in Hosur near Bengaluru targeting to go up to 25% of their manufacturing,” he added. The minister, however, did not specify the timeframebywhichtheCalifornia-based firm will expand its pro- duction facility in India. Apple has beenassemblingitsflagshipiPhone 14 in India since 2017. Continued on Page 15 DESH Bill unlikely in Budget session BANIKINKAR PATTANAYAK New Delhi, January 24 THE INTRODUCTION OF a proposed Bill in Parliament to replace the special economic zones (SEZs) Act could see further delay, as the commerce and the finance ministriesarestill inthe process of finding a common ground on tax incentives and some otherkeyprovisions of the draft Bill. REVENUE FOREGONE* ON TAX SOPS FOR SEZ UNITS (` cr) 2019-20 21,562 2020-21 23,664 *Deduction of export profits People close to the development told FE that the Bill is unlikely to be tabled in the upcoming Budget ses- sion of Parliament, as was anticipated. In fact, the commerce ministrywas initially planning to introducetheDevelopmentofEnterprise and Services Hub (DESH) Bill in the winter session of the Parliament, whichgotoveronDecember23.The Budget session is scheduled from January 31 to April 6, with a near one-month recess in between. Continued on Page 15 Vistara in the black after 9 years; revenue crosses $1bn SWARAJ BAGGONKAR Mumbai, January 23 VINOD KANNAN, CHIEF EXECUTIVE OFFICER, VISTARA BUOYEDBYArecordnumberofpassengers,VistarahasturnedinnetprofitsduringtheDecember quarter at the operating level — a first in its nineyearsofoperation.However,thisisexcluding foreign currency loss and non-operating income. Withoutdisclosingtheabsoluteprofitnumbers,Vistara added that its revenues during the April-December period surpassed $1 billion.At 3.3million,Vistaracarriedthehighestnumberof passengersinaquarterinitslifetime. This comes on the back of record losses of `2,031crorereportedbythefull-servicecarrier duringFY22,whichwas35%higherthanFY21. It, however, grabbed the position of second largest airline bymarket share forFY22 behind IndiGo. It operates close to 8,500 flights per month.Theairline,ajointventurebetweenTata SonsandSingaporeAirlines,isanunlistedentity thatisintheprocessofgettingmergedintoTata group-ownedAirIndia. During 2022,Vistara grew its international network by over 180%,by adding seven additionalroutesincludingthreenewdestinations.It also grewits domestic network byover50%,by adding six newroutes including two newdestinations.Theairlinerecordedsecondhighestontime performance at four key metros and over 85%domesticloadfactorformostoftheyearin 2022.VinodKannan,chiefexecutiveofficer,Vistara,said,“With significant network and fleet With significant network and fleet expansion and sustained growth over the last few months, 2022 has been a phenomenal year for Vistara, in terms of our operational and financial performance expansion and sustained growth over the last fewmonths,2022hasbeenaphenomenalyear forVistara,intermsofouroperationalandfinancialperformance.” Vistara has augmented its operations from its hubs – Delhi and Mumbai, and currently operates more than 75 and 50 daily domestic departuresfromthetwocities,respectively.With deliveryof10aircraftandre-deliveryofeightaircraft,the airline expanded its fleet size to 53 in 2022. VC’S ARM ACTS AFTER IRREGULARITIES AT ZILINGO, GOMECHANIC Sequoia weighs audits as lapses mount ANTO ANTONY January 23 SEQUOIA CAPITAL’S REGIONAL arm in SouthandSoutheastAsiaisweighingspecial auditsofseveralinvestmentsintheregionfollowing allegations of financial irregularities atfirmssuchasZilingoandGoMechanic. The venture capital firm will work with Ernst & Young on some of these audits and will increase budget allocations to help investee companies put governance guardrails in place, according to people familiarwith the decisionwho asked not to be named discussing private information. SequoiaCapitalIndiawillalsobemoreselective when taking board seats at companies and, in some cases, might replace junior members from their team on boards with more seniorpartners,the peoplesaid. That’s a departure from previous practice where Sequoia limited due diligence to companies before investing, the people added.“Asamatterofpractice,SequoiaCapitalIndia&SoutheastAsiaconductsduedili- GUARDED APPROACH ■ This is a departure from the practicewhere Sequoia limited due diligence before investing ■ Sequoia will work with E&Yon some of the audits and will increase budget allocations to help investee companies put governance guardrails in place ■ Its Indian armwill also be more selectivewhen taking board seats and might replace junior members on boardswith more senior partners genceaheadofnew,first-timeinvestments. Wemayconductdiligenceaheadofafollowonround;atthisjuncture,wehavenotputa mandate for special audits,” a Mumbaibasedspokespersonforthecompanysaidin an emailed statement. SequoiaCapitalIndia&SoutheastAsiais the regional arm of the Silicon Valley fund thatbackedApple and Google. ■ Since starting in India more than 16 years ago, Sequoia Capital India has expanded its base to SoutheastAsia In the latest headache forSequoia Capital India, a due diligence run by EY on its portfolio company GoMechanic for other prospective investors had unearthed bookkeeping improprieties, missteps the startup’s co-founder accepted in a public statementlastweek. Continued on Page 15 CHENNAI/KOCHI