MARKETS, P6 COMPANIES, P5 INTERNATIONAL, P3 Inflation: RBI guv says still have distance to cover More restaurant partners knock on Zomato doors China to raise retirement age, first time since 1978 MUMBAI, SATURDAY, SEPTEMBER 14, 2024 VOL LXIV NO. 220, 20 PAGES, `12.00 FOLLOW US ON TWITTER & FACEBOOK. APP AVAILABLE ON APP STORE & PLAYSTORE WWW.FINANCIALEXPRESS.COM READ TO LEAD 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: 82,890.94 ▼ 71.77 NIFTY: 25,356.50 ▼ 32.40 NIKKEI 225: 36,581.76 ▼ 251.51 HANG SENG: 17,369.09 ▲ 128.70 `/$: 83.90 ▲ 0.08 `/€: 93.07 ▼ 0.57 BRENT: $72.44 ▲ $0.47 GOLD: `72,761 ▲ `1,218 FE CFO AWARDS ‘Smart’ digital regulation soon, says Vaishnaw EXPRESS PHOTO: SANKHADEEP BANERJEE UPI-like model for cybersecurity on the cards FE BUREAU Mumbai September 13 THE GOVERNMENT IS working on a framework of digital regulations which would at once promote innovation in the fast-growing sector and prevent any harm to citizens from its unbridled power, Union minister of railways, electronics and information technology Ashwini Vaishnaw said on Friday. Speaking at the FE CFO Awards here, the minister said India would find a niche in digital regulation, with a “smart framework” that would comprise horizontal laws, such as the one for dataprotection,whichapplytoallsectors,andverticallegislation,wherever required to address sector-specific issues.“Itisimportanttocreateagood balance between innovation and regulation,”he stressed. The minister added that the governmentwouldalsolooktobringaUPI- likeframeworkforcybersecurity,which will help resource-scarce MSMEs and other entities to get the requisite resources to secure theirsystems. Theproposeddigitalframework,he said, is being formulated keeping in viewthe harms of emerging technologies like artificial intelligence (AI),which is creating issues like deepfakes, contentmoderationactivities and cybersecurity breaches. “The institutions, which have been built over centuries are getting negatively impacted by social media, deepfakes, and AI-generated data, which is absolutely out of syncwithreality.So,alotmoreneedsto be done on that front,”Vaishnawsaid. TheministersaidIndiaisinaposition to set the path for the most appropriate digital regulation after necessaryconsultations,given its talent pool,brain power,innovative zeal and proliferation of startups. Continued on Page 7 Union minister of railways, electronics and ITAshwini Vaishnaw (centre) with winners of the FE CFO Awards, held in Mumbai on Friday PANEL DISCUSSION ■ WINNERS LIST, PAGE 4 TECH IN CREDIT: CAN IT MOVE THE NEEDLE? DINESH KHARA, FORMER CHAIRMAN, SBI VVAIDYANATHAN MD & CEO, IDFC First Bank RAJIV SABHARWAL, MD & CEO, Tata Capital SHARAD SHARMA, founder, iSPIRT FOR TRUE FINANCIAL INCLUSION, WE NEED TO INCREASE FINANCIAL LITERACY WHAT IS IMPORTANT IN A CO-LENDING PARTNERSHIP IS TO KNOW WHO IS COLLECTING BANKING OR NONBANKING (LENDING) IS NOT ABOUT GIVING OUT MONEY. IT IS ABOUT COLLECTING MONEY REGULATORY CHANGES HAVE FALLEN BEHIND, ESPECIALLY FOR MSME LENDING False & malicious: Sebi chief, High-speed trains to NEWS husband rebut Cong charges be made in India soon IN THE KEJRIWALWALKS OUT OF JAILAFTER SC GRANTS BAIL THE SUPREME COURT on Friday granted bail to Delhi chief minister Arvind Kejriwal in the corruption case lodged by the CBI in connection with the alleged excise policy scam, saying that prolonged incarceration amounts to unjust deprivation of liberty. ■ PAGE 7 CO-LOCATION CASE: SEBI DISMISSES CASE AGAINSTNSE, OTHERS SEBI ON FRIDAY dismissed regulatory violations charges against the National Stock Exchange (NSE) and its seven former employees, including Chitra Ramkrishna and Ravi Narain, in a 2019 case pertaining to the co-location facility, citing absence of sufficient evidence. ■ PAGE 6 Claim facts distorted to create false narrative, keep legal options open AKSHATA GORDE Mumbai, September 13 SECURITIES AND EXCHANGE Board of India (Sebi) chairperson Madhabi Puri Buch and husband Dhaval Buch on Friday issued a joint statement,rejecting conflict of interest allegations levelled against them bythe Congress. In a six-page statement,the couple gave a point-by-point rebuttal,terming the allegationsadeliberatedistortionoffactstocreate a“false narrative”. Buchs also hinted at seeking legal opinion for further action in the matter. “The facts, transparently reflected in our income tax returns, have been twisted deliberately to create a false narrative. Shockingly, our income tax returnsclearlyhavebeenobtainedbyadopting fraudulent means and illegally.This is a clear breach of not onlyour right to privacy (whichisafundamentalright)butalsoaviolationoftheincometaxAct,”theBuchssaid. They also termed the accusations baseless, emphasising that they have always madefulldisclosurestotheregulatorregarding theirconsulting firm,personal property THE REBUTTAL BYTHE BUCHS THERE SEEMSTO BEAN ASSUMPTIONTHATWHENA SENIOR GOVTOFFICIAL'S SPOUSE ISAPPOINTEDASANADVISER, IT MUSTBEATTRIBUTEDTO FACTORS BEYOND PROFESSIONALMERIT” On rental income from Wockhardt “No investigation files go to the chairperson” On consulting assignments of Dhaval Buch On ICICI Bankrelated matters “Madhabi Buch never dealt with any file involving Agora, Mahindra, Pidilite, Dr Reddy’s, Alvarez and Marsal, Sembcorp, Visu Leasing or ICICI Bank after joining Sebi” Esop holdings since 2017 andincome,andalsopointedoutthatMadhabiPuriBuchhadrecusedherselffromconflictssincejoiningSebi.“Theseallegationsof conflictaredefamatory,false,vexatious,and clearlymalicious,”thestatementsaid,adding thatBuchneverdealtwithfilesrelatedtothe ICICIGroupduringhertenureatSebi. MadhabiPuriBuchalsoclarifiedthatshe had not handled any files involving Agora Advisory,Agora Partners,Mahindra Group, Pidilite, Dr Reddy’s, Alvarez and Marsal, Sembcorp, and Visu Leasing since taking charge at Sebi. Continued on Page 7 ■ Disclosed ■ Never dealt with any files related to ICICI Group firms ■ Worked in PE firm with prior permission, did not draw any salary from ICICI Swiss probe charge: Adani stocks fall AS MANY AS seven Adani Group stocks closed lower on Friday after Swiss authorities froze $311 million held by a Taiwanese resident across multiple Swiss bank accounts, allegedly with links to Adani Group, an allegation the conglomerate has firmly denied. ■ Report on Page 6 NO PRICE CUTS YET, SAY COMPANIES India Inc sees margins rising as crude falls VIVEAT SUSAN PINTO Mumbai, September 13 IN WAIT & WATCH MODE ADROP IN crude oil prices is likelyto ease cost pressures for a large number of companies across sectors — from paints and industrial segments to textiles and fastmovingconsumergoods(FMCG)—which usecrude-linkedderivativesasakeyinput. Firms,however,say they remain cautious about cutting product prices as theycarefullymonitordemandconditionsandthe impact it could have onvalue growth. Earlierthisweek,Brent crude futures slipped to nearly a three-year low of below $70 a barrel amid slowdown concerns in China.While they consolidated toaround$72levelsonFriday,mostanalysts and companies expect crude oil prices to be muted for now. Titanium dioxide,a crude derivative, accounts for about 20-25% of the raw material cost for paint companies.PlayerssuchasAsianPaintsandBergerPaints Sept 1, 2021 ■ Say margins may Brent crude prices ($ per barrel) 71.59 ■ Paint firms, which took 1-2% price hikes in July-August, to stick to those prices for now Sept 13, 2024* 72.64 improve due to falling crude prices ■ Adhesive firms say pricing action to depend on price softness in the future ■ For FMCG firms, *at 5 PM IST had taken price hikes of about 1-2% in July-August and will hold on to the price lines for now,executives said. “As the price of crude oil declines, operating margins will improve. But we are unlikely to drop product prices immediately,sincewe have to keep market conditions in mind, even as raw while crude is benign, other inputs turning inflationary a concern material prices change,”Abhijit Roy,MD & CEO,Berger Paints,said. “Our margins are in the range of about 15-17%. It may cross the 17% mark due to the softening of raw material prices. But the impact will be visible only from the third quarter,”Roy added. Sources atAsian Paints also indicated that they were unlikely to cut product prices after recently hiking rates by about 1%.The price hike had come after nearly12-18monthsandhadbeencarefully thought through, keeping in mind bothvolumeandvaluegrowth,theysaid. While both Berger Paints and Asian Paints saw a 7-12% growth in sales volumes in the June 2024 quarter, value growth had fallen by 2-3% during the period, owing to price cuts taken and a shift in product mix.Both firms are keen to reverse this trend,sectorexperts said. “Commodity prices will keep fluctuating. This time, the drop in crude is linked to demand concerns, mainly due to the slowdown in China.Paint companies in India will evaluate the demand conditions here before deciding on pricing action,” HM Bharuka, a paint industryexpertandformervice-chairmanand MD of Kansai Nerolac,said. Continued on Page 7 Railway ministry arm floats tender for local production MANU KAUSHIK New Delhi, September 13 AFTER MAKING A major headway in indigenous manufacturing of semi high-speed train coaches,the government has nowset in motionaprocessforlocalproductionofhighspeed rolling stocks. The move follows the potential rise in procuring the standardgauge coachesforIndia’s plannedbullet train projects, including the under-construction Mumbai-Ahmedabad High Speed Rail. According to official sources, the National High Speed Rail Corporation (NHSRC)undertheministryofrailways has floated tenders for“design,manufacture,supplyand commissioning of standard gauge high-speed train sets”. The race for contracts for assembling the coaches, that can run at a speed of up to 250 km per hour, compared with the maximum speed of 160 km/hour for Vande Bharat trains, is likely to be between staterun Integral Coach Factory (ICF) in Chennai and Bharat Earth Movers (BEML). However, sources said these entities may also look at forging an alliance for the venture or rope in a private player. Global railway equipment makers like ABB,Alstom and Siemens are likely to be the component suppliers. The investments needed in the projects for manufacturing of bullet train coaches would depend on the size of the projects and the technology involved, but the estimated costs of such coaches are above `460 crore per unit. Though substantial domesticvalue addition is being planned, these projects would still have large import content. THE JOURNEYAHEAD ■ Race for assembling the coaches that can run at up to 250 km/hr ■ These entities may also look at an alliance for theventure or rope in a private player Global railway equipment makers like ABB, Alstom and Siemens likely to be component suppliers ■ likely to be between staterun ICF and Bharat Earth Movers ■ Estimated cost of such train sets are above `460 cr per unit The proposed contracts would also include distributed power systems, and development of two prototype trains with 8 cars each. “This marks the first-ever effort towards development of high-speed train sets in India. It is likely that ICF could partner with BEML or a private player to jointly develop high-speed trains indigenously,” said Harshit Kapadia, vice-president (consumer durables, electrical & capital goods) at Elara Securities. Some of the components used in the high-speed trains — such as propulsion sets — are not being manufactured currently in the country. Continued on Page 7 Set to re-enter India, Govt may sell part Ford eyes Chennai of Hindustan Zinc plant for exports stake this fiscal TWOYEARSAFTERhaltingitsoperations in India, US-based Ford Motor is preparing to re-enter the market by restarting manufacturing at its Chennai plant,this timewith a focus on global exports, reports Narayanan V. On Friday,theglobalautomotivegiantannounced it had submitted a letterof intent to theTamil Nadu government, confirming its plans to utilise the Chennai facility for export manufacturing.Theannouncementcomesjustdays afterTNchiefministerMKStalinvisitedFord’s headquarters in Michigan. ■ Page 4 WITH PROMOTER VEDANTA’S recentofferforsale(OFS)testingthe marketappetiteforHindustanZinc (HZL),the government is exploring diluting a small portion of its residual stake of 29.54% in the current financial year through the same route, reports Prasanta Sahu.“We will also explore fora small tranche in the currentfinancialyear,”anofficialsaid,addingthat Vedanta’sOFSinHZLhasvalidatedthedepartmentofinvestmentandpublicassetmanagement’sviewthat the government stake sale in thefirmshouldbeinsmalltranches.■ Page 2