ECONOMY | PAGE 2 NEWS POINT | PAGE 20 Workersseekmoretweaks inunifiedpensionscheme INTERNATIONAL | PAGE 7 Zee Entertainment CEO is media’s intrepid warrior CHENNAI/KOCHI, THURSDAY, JULY 3, 2025 Microsoft to cut 9K jobs in second wave of layoffs FOLLOW US ON TWITTER & FACEBOOK. APP AVAILABLE ON APP STORE & PLAYSTORE WWW.FINANCIALEXPRESS.COM READ TO LEAD VOL NO. XLVI 49, 20 PAGES, `12 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: 83,409.69 ▼ 287.60 NIFTY: 25,453.40 ▼ 88.40 NIKKEI 225: 39,762.48 ▼ 223.85 HANG SENG: 24,221.41 ▲ 149.13 `/$: 85.71 ▼ 0.17 `/€: 100.88 ▲ 0.17 BRENT: $67.76 ▲ $0.65 GOLD: `97,057 ▲ `157 Prepayment BULKOFSTAFFATiPHONEUNITSRECALLED charges for small biz loans scrapped SBI flags RCom a/c as fraud,to sendAnilAmbani’s name to RBI FE BUREAU Mumbai, July 2 disregard of natural justice: Ambani counsel FoxconnpullsChina workersfromIndia IN A RELIEF to individual borrowers and medium and small enterprises,the Reserve Bank of India (RBI) issued guidelines on Wednesday, stating that regulated entities cannot levy prepayment charges on loans issued by them.These guidelines will be applicable for all loans that are sanctioned or renewed on January 1, 2026. As per the guidelines,if the loan has been granted forpurposes otherthan business,regulated entities can’t levy any prepayment charge on loans. But, if it is a business loan, small finance banks, regional rural banks, middle layer NBFCs and tier-4 urban cooperative banks cannot levy any pre-payment charge on loans up to `50 lakh. The norms had to be issued as RBI found "divergent practices" among regulated entitieswith respect to levyof prepayment charges in case of loans sanctioned to MSEs that led to customer grievances and disputes. It was also found there were restrictive clauses in contracts to deter borrowers from switching to other lenders. Accordingly,as announced in the Statement on Developmental and Regulatory Policies dated October 9, 2024, a draft circular in this regard was issued on February 21 for public consultation. FE S P EC I A L S SANKALP PHARTIYAL, DEBBY WU & MARK GURMAN July 2 FOXCONN TECHNOLOGY GROUP has asked hundreds of Chinese engineers and technicians to return home from its iPhone factories in India, dealing a blow to Apple’s manufacturing push in the country. The bulk of Foxconn’s Chinese staff at iPhone plants in south India have been told to fly back in a move that began about two months ago,people familiar with the matter said, asking not to be named. More than 300 Chinese workers have left, and mostly support staff from Taiwan remain in India, one of the people said. It’s not immediately clear why Apple’s biggest iPhone assembler sent the workers home. Earlier this year, officials in Beijing verbally encouraged regulatory agencies and local governments to curb technologytransfers and equipment exports to India and SoutheastAsia inwhat is a potential attempt to prevent companies from shifting manufacturing elsewhere, Interview with Pau Bay, CEO, Ingram Micro ■ EFE, P9 Why TOT & InvIT need to run parallel NHAI should continue with both two models as they attract diverse pools of capital ■ EXPLAINER, P9 ■ It’s not MAHESH NAYAK Mumbai, July 2 immediately clear why Apple’s biggest iPhone assembler sent the workers home ■ More than 300 Chinese workers have left, and mostly support staff from Taiwan remain in India ■ Earlier this year, Beijing verbally encouraged regulatory agencies and local govts to curb tech transfers and equipment exports to India and Southeast Asia ■ The change comes as Apple prepares to ramp up production of the new iPhone 17 with its manufacturing partners in India Bloomberg News has reported. Apple’s chief executive officer Tim Cook has lauded the skill and expertise of Chinese assembly workers, highlighting it as the key reason — not just more favourable cost — for setting up the majority of Apple’s production in the country. Their removal from Indiawill not impact the qual- ity of production, but it’s likely to affect efficiency on the assembly line, according to one of the people. Still,the change comes at a bad time for Apple, as it is preparing to ramp up production of the new iPhone 17 with its manufacturing partners in India. Continued on Page 17 Project intent sluggish in Q1; pvt sector gains THE VALUE OF new ‘India a promising market’ MYSTERY MOVE investments—government and private combined—rose 43% on-year to `4.1 lakh crore inApril-June this fiscal, on a low base caused by the pollseason slump in the year-ago period, as per CMIE, reports Saikat Neogi.As government sector projects fell steeply, the private sector's share rose to a multidecadal high of 87%. Yet, the value of new projects announced was still one of the lowest in the recent quarters, except Q1FY25. ‘Projects completed’ rose 174% in Q1FY26, after four straight quarters of contraction. ■ REPORT ON PAGE 2 New projects announced Jun 2024 Total ` lakh cr % chg, y-o-y -69.4 2.9 Sep 2024 9.2 97.7 Dec 2024 9.2 2.9 21.8 Mar 2025 Jun 2025 Share of private sector (%) 79.9 30.0 43.0 4.1 65.6 68.7 86.9 86.9 9 49.5 Jun 2024 Sep 2024 Dec 2024 Mar 5 2025 Jun 2025 -55.0 Sep 2024 -35.3 Dec 2024 -30.32 Mar 2025 -38. 9 Jun 2025 STATE BANK OFIndia(SBI)has classified the loan account of Reliance Communications (RCom)as“fraud”,andisinitiating action to report Anil Dhirubhai Ambani, the company’serstwhiledirector,tothe Reserve Bank of India (RBI),the companysaidinaregulatoryfiling on Tuesday.This follows a forensic audit and a year-long exchange of show-cause notices (SCN) and responses. SBI’s letter to the company stated that the bank's Fraud IdentificationCommittee(FIC) decided to classify RCom's account as fraudulent and has cited significant irregularities, FACING THE HEAT 173.54 Source: Economic Outlook ■ RCom was admitted for insolvency proceedings in May 2018 ■ It says the ■ RCom's erstwhile classification aligns with the RBI's Master Directions on Frauds director Anil Ambani actively pursuing all legal remedies including fund diversion and loan term violations. Theclassificationalignswith the RBI's Master Directions on Frauds,which provide a framework for dealing with fraudulent activities in the banking sector.This alignment enables further regulatory and legal escalation,which may include civil and criminal prosecution. RCom was admitted for Delivery workers rest in a cramped room as they charge their e-scooter batteries at a dark store in Hyderabad PHOTO BY SHAIK SALAUDDIN, NATIONAL GENERAL SECRETARY OF THE INDIAN FEDERATION OF APP-BASED TRANSPORTWORKERS PICTURE THIS: A dozen delivery workers lie on wooden benches in a cramped room, some on the floor, while their electric scooter batteries charge. A photograph from a Zepto dark store in Ramanthapur, Hyderabad, shows just this, exposing the ugly truth behind India’s 10-minute grocery delivery promise. Dark stores seem to be living up to their name.Only 3040% of dark stores across major platforms provide basic amenities like toilets,drinking water, or proper seating areas, according to Salauddin, national general secretary of the Indian Federation of App- ■ As of March 2025, it has total debt of `47,216 cr insolvencyproceedingsinMay 2018.As of March 2025,it has total debt of `47,216 crore. “Classifying a corporate account as fraudulent is a serious step underRBI norms,typically done after a forensic audit, show-cause notice, and committee reviews,” said Ashish Pyasi, managing partner at Aendri Legal. While the company is shielded under Section 32A of the IBC,the promotermayface personal liability, including potential criminal proceedings, unless he seeks legal relief. Pyasi added that the bank gave RCom a chance to respond and present its position before classifying the account as fraudulent. Continued on Page 17 STREET BUZZ First day,stellar show by HDB ICICIPruAMCeyes `10,000crviaIPO KSHIPRA PETKAR Mumbai, July 2 ANANYA GROVER Mumbai, July 2 HDB FINANCIAL SERVICES, the NBFC arm of HDFC Bank, made a strong market debut on Wednesday. The firm’s share, whichwaspricedat`740,listed at a premium of 12.84% at `835—thebestlistingforaninitial public offering (IPO) of over `10,000 crore since the pandemic. The stock closed at `840—higher by 13.6%—with a market capitalisation of `69,758.27 crore. TheIPOreceivedbidsworth `1.61 lakh crore and was subscribed byaround 17 times. “Ourissueof`12,500crore happens to be the largest IPO by an NBFC till date,” Ramesh G,managing director and CEO of HDB Financial Services,said at the listing ceremony. “We want to reiterate that we are committedtoupholdthehighest standard of corporate gov- MARKET DEBUTS Large IPOs since Covid-19 Company ny Listing (Issue size ` cr) gain (%) Hyundai ndai Motor India -1.5 (27,859) 9) LIC -8.6 (20,557) 7) One 97 Comm -9.1 0) (18,300) nancial HDB Financial 0) (12,500) Swiggy ggy (11,327) 7) SBI Cards rds (10,341) 1) 12.8 5.6 -12.8 NTPC Green (10,000) 0) 3.3 ernance and will continuously strive to enhance stakeholder value,”he added. Continued on Page 17 US PRESIDENT DONALD TRUMP has reaffirmed that the US and India will soon strike a trade dealwith“much less tariffs”, allowing both countries to compete. “We are going to have a dealwithIndia.Andthatis goingtobeadifferentkind.It’sgoing to be a deal where we are able to go in and compete.Right now,India does not accept anybody in. I think India is going to do that, andiftheydo,wearegoing tohaveadealformuchless tariffs,” he said. ■ PAGE 3 ■ US inks trade deal with Vietnam, P7 The‘dark’truthbehindq-comm’s 10-minutedeliverypromise Based Transport Workers. Workers spend 10-12 hours daily at these facilities “with inadequate break or rest time, especially during peak demand hours,”he says. These working conditions have deteriorated further as quick commerceplatformsmove away from operating their own dark stores and adopt a franchisee model.The norm is that the movers and packers inside the dark stores must pack 90% of orders within 120 seconds to help store operators avoid penalties: `1,000 for delays of 30 minutes to one hour; `3,000 for 1-2 hours; and `5,000 for 2-4 hours. “Storeownersdon’twantto SBI's fraud classification unlikely to impact ongoing insolvency resolution letter cites significant irregularities, including fund diversion and loan term violations Kept under wraps: 120-sec packing time, 12-hr + shifts, lack of transparency & more ANEES HUSSAIN Bengaluru, July 2 ■ Company says ■ The SBI India may open up, going to have a deal soon, saysTrump Projects completed (% chg, y-o-y) g, Jun 2024 ● Order a blatant pay these fines. Instead, they put penalties on us — workers — for delays. Each store also has set targets for the day based on expected commissions from platform.Once this is met, owners themselves ask us to shut the stores and go home. This is a reason for a lot of latenight delivery disruptions across stores,” Manjunath K, a packer at a dark store facility in JP Nagar,Bengaluru,says. Whileworkers face deteriorating conditions, consumers are encountering their own transparency gaps. Unlike physical stores where expiry dates are clearly visible, quick commerce platforms do not display this information. The Food Safety and Standards Authorityof India (FSSAI) in its December 2024 advisory mandated that products delivered through online platforms have a minimum shelf life of 30% or at least 45 days before expiry,at the time of delivery. Yet,in practice,this continues to be ineffective as consumers cannot verify compliance since platforms don’t display expiry information on the app.“These platforms are buying dead-stock nearing end of shelf life from FMCG brands at a cheaper cost and pushing heavy discounts on such items,” says Sachin Taparia, founder of consumer advocacy group LocalCircles. Continued on Page 7 ICICI PRUDENTIAL ASSET Management Company — a 51:49 joint venture between ICICI Bank and UK-based Prudential PLC — is all set to file its draft red herring prospectus (DRHP) to raise up to `10,000 crore through an offer for sale (OFS) within the next few days, according to people close to the development. It will become the sixth mutual fund house to list on the bourses. According to sources, Prudential plans to raise the amountbyoffloadingpartofits stake in the joint venture. Last month,aBloombergreportsaid the companyhas hired a record 17 lead managers for the offering,whichmayvaluethefirmat about $12 billion. ICICI Prudential AMC did respond to messages and calls tillthetimeofgoingtothepress. The company is the country’s second-largest mutual fund manager by assets with `9.53lakhcroreofassetsunder managementasofMay31after SBIMutualFund.Currently,five MF companies are listed on the Indian bourses — HDFC AMC, Nippon Life India AMC,UTIAMC,Shriram AMC and Aditya Birla Sun LifeAMC. This will also be the second-largest IPO this year after the `12,500-crore IPO of HDB Financial Services. In February, the British JV partnerhad said it is evaluating a potential listing of ICICI Prudential AMC involving the partialdivestmentofitsshares,subject to market conditions, requisite approvals and other considerations. Continued on Page 17 Govt enhances scrutinyof corporate layers MANU KAUSHIK New Delhi, July 2 STRICTER NORMS IN A MOVE that would make it tougher for companies to use the web of corporate structures to divert funds and circumvent regulations,theministryofcorporate affairs has mandated higher and more detailed disclosure norms forthem. Under a new set of rules to takeeffectfromJuly14,itwould be mandatoryforcompanies to furnish information on the number of subsidiaries under each layer, in addition to detailed information on each subsidiary and their corresponding holding company. These norms would enable the Registrar of Companies (RoC) to strictly monitor compliancewiththelayeringrestrictions notified in 2017, which stipulated that a companycan't have more than two layers of subsidiaries, subject to a few exemptionsincludingforbanking and insurance companies, and pubic-sectorfirms. Under the new rules, the ministry has notified a revised form–CRL-1–where more informationoneachsubsidiary is required to be provided, including the type of registration, ownership structure, and corresponding holding companydetails. “This enhanced reporting ■ The new set of rules to take CHENNAI/KOCHI effect from July 14 ■ It would be mandatory for firms to furnish information on number of subsidiaries under each layer ■ This would be in addition to detailed info on each arm and corresponding holding firm ■ Under the new rules, the govt has notified a revised form, CRL-1 framework is a step towards greater transparency in corporate group structures. It is also expected to strengthen regulatory oversight, and ensure bettercompliancewiththelayering restrictions prescribed under the Companies Act,2013,”said SandeepJhunjhunwala,partner at Nangia Andersen LLP. All firms having arms may be required to file fresh informationintheeventofchangeinthe layerof subsidiaries,he added. 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