COMPANIES, P5 MARKETS, P7 BACK PAGE, P24 LAUNCH IN KERALA FIRST TWO STRESS POINTS IN NEAR TERM PREFERRED NATIONS LOSE EXEMPTION Reliance brings US snack Alan's Bugles to India Sensex may touch 100,000-mark in five years: Chris Wood New angel tax norms may see more startups set up shop in GIFT City CHENNAI/KOCHI, SATURDAY, MAY 27, 2023 FOLLOW US ON TWITTER & FACEBOOK. APP AVAILABLE ON APP STORE & PLAYSTORE WWW.FINANCIALEXPRESS.COM READ TO LEAD VOL NO. XLIV 327, 28 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: 62,501.69 ▲ 629.07 NIFTY: 18,499.35 ▲ 178.20 NIKKEI 225: 30,916.31 ▲ 115.18 HANG SENG: 18,746.92 ▼ 369.01 `/$: 82.57 ▲ 0.17 `/€: 88.65 ▲ 0.14 BRENT: $77.19 ▲ $0.93 GOLD: `59,818 ▼ `315 IN THE NEWS Sebi walks the talk on ‘finfluencers’ with action on Sundar SEBI HAS SENT a strong message to financial influencers, or ‘finfluencers’, with its first action coming against PR Sundar, known for providing investment advice, reports Siddhant Mishra. It has directed Sundar, his company Mansun Consultancy and Mangayarkarasi Sundar to disgorge `6.07 crore. ■ PAGE 7 REMITS CASE BACK TO NCLT NCLAT relief for Zee, Sony merger deal Sets aside order Mahindra & Mahindra directing BSE, NSE profit grows 22% to review approval M&M REPORTED A lower-than-expected standalone net profit for the fourth quarter at `1,549 crore as robust growth in volumes was hit by an impairment provision, reports Swaraj Baggonkar. ■ PAGE 4 CBDT consultation on angel tax rules THE CBDT ON Friday issued a draft notification for method of computation of fair market value of unquoted equity shares for angel tax, reports fe Bureau. New rules have provided more flexibility for valuation of equity shares. For resident investors, four types of valuation methods are provided. EXPLAINERS India & the Cape Town convention ■ PAGE 2 Behind US visa curbs on Bangladesh ■ PAGE 24 FE S P E C I A L S India’s first astro village: Benital in Uttarakhand Benital, 12 hours from Delhi, is so remote that it has got the starriest sky in India. ■ MOTOBAHN, P8 VIVEAT SUSAN PINTO Mumbai, May 26 IN A RELIEF to Zee Entertainment Enterprises, the National Company Law Appellate Tribunal (NCLAT) on Friday set aside the National Company Law Tribunal’s (NCLT’s) order directing the BSE and NSE to review their approval to the Zee-Sony merger. The NCLT had passed the order on May 11 after markets regulator Sebi's adverse ruling against an Essel group firm in April. Setting aside the NCLT order for ‘violation of principles of natural justice’,a two-member NCLAT bench said that Zee should have been heard in the matter and has remitted the case back to NCLT. Shares of Zee rallied over 6% on the BSE on Friday, soon after the NCLAT order. It settled at `190.70 apiece at the end of trade,up 6.69% against the previous day's close. Appearing for Zee,senior advocate Mukul Rohatgi argued that NCLT's order had virtually nullified all the regulatory approvals received so far by the company as part of the merger process. Apart from the BSE and NSE approval, the shareholders of Zee hadalreadygiven theirassenttothe merger in October last year, weeks after the Competition Commission of India gave its conditional nod with some modifications. The NCLAT order comes as a big relief to Zee,which has been trying to complete its mergerwith Culver Max Entertainment (formerly Sony Pictures Networks India) for some time now. Create an emergency fund and buy health and life insurance ■ PERSONAL FINANCE, P7 90% chances of El Nino conditions developing in July SANDIP DAS New Delhi, May 26 2023* Above normal Normal Source: IMD, *2nd forecast, performance against the benchmark– long period average (LPA). LPA is average annual rainfall (87 cm) recorded between 1951-2000, 96% - 104% of LPA is considered ‘normal’ range, <96% is 'below normal', < 90% is 'deficient', >104% plus is 'above normal' & > 110% plus is 'excess'. monsoon rains of 96% of the longperiod average (LPA),same as it first saidonApril11,allaysfearsofadeficit in the 4-month season (June-September).Rainfall between 96-104% of the LPAis considered“normal”. order, saying it was in ‘violation of principles of natural justice’ Investorwealth has seen a gain ofclose to `200 trillion under PM Modi’s nine-year rule.The BSE’s m-cap,which stood at `85.21 trillion on May 26, 2014, has now reached `282.67 trillion. Heavyweights RILand TCS are the topwealth creators.The Sensex and Nifty have jumped over 152% and 151% in absolute terms, and 10.86% and 10.79% in CAGR terms. ■ Apart from BSE and NSE approval, Zee shareholders gave their assent to the merger in October 2022, weeks after CCI's nod Compiled by Siddhant Mishra and Kishor Kadam ■ NCLATorder comes as a big relief as Zee has been trying to complete merger with Sony Pictures Networks for some time now Sensex Sensex May 26, 2014 24,716.88 7,359.05 May 26, 2023 62,501.69 18,499.35 Points change 37,784.81 11,140.30 Sep 27, 2021 60,077.88 62,501.69 10.86 CAGR (%) 10.79 June 03, 2019 40,267.62 Jan 29, 2015 29,681.77 Change 197.46 Feb 03, 2021 50,255.75 May 26, 2014 Announced in December 2021, themerger,accordingtoanalysts,will createa$10-billionmediagiant,with the combined entityowning over70 TV channels, two video streaming services (Zee5 and SonyLiv) and two film studios (Zee Studios and Sony Pictures Films India). In Zee’s latest earnings call,MD & CEO Punit Goenka said that matters connected to the company had been addressed and that the media firm was taking all necessary steps within law to ensure there were no roadblocks to the merger process. May 26, 2014 (in ` trillion) Top gainers % gain Bajaj Finance 3,283 Tata Elxsi 2,764 2,650 SRF 1,503 1,439 Bajaj Finserv Cholamandalam Inv INSIDE Continued on Page 14 282.67 85.21 May 26, 2023 Top losers Top wealth creators % fall -40.10 Coal India M-cap gain in ` trillion -38.45 -37.93 -34.94 ONGC Reliance Industries -14.35 Continued on Page 2 INSIDE Go First lessors move HC to take back aircraft JKC gets more time to clear SBI's dues 24,716.88 Investor's wealth Kerala coast on June 4, the department said,three days later than the usual arrival date of June 1. Private weather forecasting agencySkymethadearliersaidmonsoonprecipitationthisyearcouldbe “belownormal”at 94% of the LPA. The IMD’s prediction of normal rains was despite it seeing 90% chancesofElNinoconditionsdeveloping in Julyand impactingAugust-September rains.It sees the probability of the country getting“normal”or“excess”rainfallintherangeof43-55%. “Adverse impact of the El Nino conditions would be largely compensated by positive Indian Ocean Dipole, a parameter which has an positive impact on the monsoon,” DS Pai,senior scientist,IMD,said. AFTER FAILING TO get any relief from the NCLAT, several Go First aircraft lessors have moved the Delhi High Court seeking deregistration of theirplanes bythe DGCA, reports fe Bureau.Theircontention is that NCLAT is not empowered to dealwith the issue of deregistration as the aircraft are not Go First’s propertybut have been leased to it. Meanwhile, Go First on Friday extended the suspension of flight operations to May 28. ■ Page 4 152.87 151.38 Returns (%) IndusTowers Zee Entertainment Lupin Ujjwala scheme to free ration in Covid TCS HDFC Bank Hindustan Unilever PAGE 9 Raises FY24 target to `60,000 crore ASSETS AWARDED UNDER ASSET MONETISATION Year 2018-19 THENATIONALHIGHWAYSAuthority of India (NHAI) has drawn up an ambitiousplantomonetise46operational highway stretches of a total lengthof2,612kilometresinthecurrent financial year to beef up resources for its road building programme.Thepipelineofprojectsthat have been identified for monetisation in 2023-24 could be valued at around `60,000crore. Thiswillbethehighestevermop- 2020-21 2021-22 2022-23 2023-24 (Target) No. of Streches 9 9 6 6 46 Length (KM) 681 566 441.3 558.6 2,612 up byNHAIvia this route,and nearly three-and-halftimesthefundsraised inFY23.Theaggressivetargetsignals its intent to pare its high debt, and reduce the increasing reliance on Budget funds to the extent possible. Earlier, NHAI had identified 30 highway stretches of 1,987 km lengthformonetisationfor2023-24 with a mop-up-target of `45,000 crore,but the list has now been expanded,byadding16 more stretches. NHAI had identified 14 stretches of1,750kmlengthformonetisation in 2022-23 but could complete the processforonlysixhighwaystretches of 558 km and raise `13,511crore. The mode of monetisation of the identifiedhighwaytrenchesthisyear, too, would be toll operate transfer (TOT) and National Highways Infra Trust,an InvIT established by NHAI. Apart from ToT and InvIT, the NHAI also raises funds through projectbased financing as was done in the case of Delhi-Mumbai Expressway. Continued on Page 2 India’s imports of Russian oil in troubled waters LLOYD'S REGISTER HAS told Mumbai-basedGatikShipManagement, which has become a major carrier of Russian oil since the Ukraine war, that it will withdraw certification of 21 of its vessels by June 3, the maritime services company told Reuters. It is the latest setback for Gatik, which was also been forced to find new flags for 36 of its ships after they were deflagged by the St Kitts &NevisInternationalShipRegistry. “Lloyd's Register is committed to facilitating compliance with sanctions regulations on the tradingofRussianoil,”itsaidinanemail to Reuters. “Where supported by evidence, we withdraw class and May 26, 2023 Nifty MAJOR MARITIME SERVICES COMPANY DROPS 21 GATIK VESSELS JONATHAN SAUL & NIDHI VERMA London/New Delhi, May 26 Deficient rains and its sparse distributional patterns could have adversely affected the farm sector output,fanned inflation and posed another hurdle to the long-awaited economicrecovery.Therainswillhit Modi govt @ 9: Indices surge over 150% ■ NCLAT set aside NCLT's May 11 ■ Appellate tribunal said Zee should have been heard in the matter and has remitted the case back to NCLT 106 96 2022 THE INDIAN METEOROLOGICAL Department (IMD) on Friday stuck to its forecast of a “normal” monsoon for this year, as it released the second long-range outlook shortly ahead of the annual phenomenon. The adverse impact of likelyEl Nino conditionswill be offset by positive “IndianOceanDipole”,ameasureof Indian Ocean surface temperature, the department said. The IMD’s latest prediction of THE BIG PICTURE MONSOON PERFORMANCE (% of LPA) 2018 91 Below normal 2019 110 Above normal 2020 109 Above normal 2021 99 Normal ICICI Bank 12.9 7.8 7.1 4.9 4.9 IN A RELIEF to Jalan Kalrock Consortium(JKC),whichhasemergedas a successful bidder to take over Jet Airways, the NCLAT on Friday granted it more time to make payments to SBI,reports fe Bureau. The appellate tribunal said the NCLT had approved the consortium’s resolution plan in January, but the matter on appeal for stay was heard byit in March,whichwas turned down. ■ Page 4 NHAI takes monetisation fast track Fundraise talks have gathered pace: Voda Idea MUKESH JAGOTA New Delhi, May 26 Ways to avoid falling into a debt trap IMD sticks to normal rains forecast CRUDE FACTS ■ Lloyd's Register to withdraw certification of 21 Gatik Ship Management's vessels by June 3 ■ India imported ■ The maritime services company's certification is vital for securing insurance and entry to ports 2.76 MT ■ Gatik emerged this year as a leading carrier of Russian oil to India using a fleet of over 40 tankers services from any vessels found by the relevant authorities to be breaching international sanctions.” Classification societies such as Lloyd’s Register in London provide services, including seaworthiness checks, certification that is vital for securing insurance and entry to ports.Lloyd’ssaid,however,that11of the Gatikvessels itwas declassifying werealsocertifiedbytheIndianRegisterof Shipping(IRClass). of Russian oil in vessels managed by Gatik in the first four months of 2023 ■ According to Refinitiv data, about 1.36 MT of Russian crude is earmarked for arrival in India in May and June on Gatik tankers Gatikdidnotrespondtoemailed requests for comment. AmajorUSinsurer,theAmerican Club, also told Reuters it was no longer providing cover for Gatik ships,while Russian insurer Ingoss- trakh said it would not work with Gatikinfuture.Neithertheinsurers, Lloyd’s Register northe flag registry spelled out the reasons. Disruption and limits In response to Russia's invasion of Ukraine, Western powers imposed a price cap on Russian crude of $60 a barrel.While non-EU countries can import seaborne Russian crude,Western shipowners and insurers are prohibited from handling such cargoes unless they are sold at or below that price. Last month,spot prices for Russiancruderoseabove$60abarreland some ship insurance executives said they were nervous of falling foul of therulesastheywereunabletoindependentlytrack thevalue of cargoes. Continued on Page 14 JATIN GROVER New Delhi, May 26 VODAFONE IDEA’S DISCUSSIONS with investors and banks for raising funds have gathered pace in the last one month, CEO Akshaya Moondra said on Friday. Speaking at an analyst call post theJanuary-Marchquarterearnings, Moondra said that the discussions are progressing well following the conversionofthecompany'sinterest duesworth`16,133croreintoequity bythe government. “Post the equity conversion, we have been actively engaged with the banks, including the banks with which we were engaged earlier.Promoters have contributed equity in the past and they are ready to contribute some more,” Moondra said, adding that the third leg of funding needs to come from external investorsandmultiplediscussionsareon. Moondra’scommentscomeaday aftercommunications and ITministerAshwiniVaishnawtoldFEthatthe government is concerned over the delay by Vodafone Idea in raising funds.“Of course, there is a concern because investment is supposed to come.Andonlyafterinvestments,the companycanrevive.Everyoneisconcerned,” Vaishnaw told FE, adding that the government is constantly encouragingthepromoterstoinvest in the firm. Meanwhile,onFriday,AdityaBirla group chairman KM Birla andVodafone Idea chairman RavinderTakkar met finance minister Nirmala Sitharaman. “Even while KM Birla was not on AKSHAYA MOONDRA, VODAFONE IDEA CEO "Promoters have contributed equity in the past and they are also ready to contribute some more equity." "We have always stated that tariffs need to go up. Current tariffs are not giving adequate returns to anyone in the industry." the board, he was engaged with the company.Of course his coming back gives a lot of confidence to investors and bankers,” Moondra said. Vodafone Idea has been trying to raise external funds worth around `10,000 for over a year now. However,adelayinduesconversionbythe governmentintoequityalsoaffected the plan.The company will use the fundstoinvestincurrent4Gnetwork expansion as well as 5G rollout to arrestits subscriberchurn. Continued on Page 2 CHENNAI/KOCHI