BACK PAGE | PAGE 16 ECONOMY | PAGE 2 Rupee’s slide raises study abroad costs INTERNATIONAL | PAGE 9 Components scheme: Govt warns firms ofpayout curbs MUMBAI, TUESDAY, MARCH 31, 2026 US offers ‘unrealistic': Iran; Trump issues newwarning FOLLOW US ON TWITTER & FACEBOOK. APP AVAILABLE ON APP STORE & PLAYSTORE WWW.FINANCIALEXPRESS.COM READ TO LEAD VOL LXVI NO. 75, 16 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: 71,947.55 ▼ 1,635.67 NIFTY: 22,331.40 ▼ 488.20 NIKKEI 225: 51,885.85 ▼ 1,487.22 HANG SENG: 24,750.79 ▼ 201.09 `/$: 94.83 ▼ 0.02 `/€: 109.00 ▼ 0.21 BRENT: $112.91 ▲ $0.34 GOLD: `1,46,126 ▲ `3,782 FE READ TO LEAD MARCH 2026 PRESENTS CO-PRESENTED BY SANJIVBAJAJ LIFETIME ACHIEVEMENT AWARD KSRAJU BANKER OF THE YEAR THE INTELLIGENT BANK COVER STORY ASSOCIATE PARTNER KNOWLEDGE PARTNER Data, machine learning and human judgement are converging to create intuitive, pre-emptive and globally connected banking. From mobilefirst services to global ambitions, the sector is being reset—where technology drives scale, but trust and safety remain paramount. Read about The Intelligent Bank in a 52-page special magazine, free with today’s edition. Also, hear from the FE Best Banks Awards winners—industry leaders at the forefront of change—as they map the future of India’s financial sector. IN THE NEWS ECONOMY PAGE 3 AMENDMENTS TO INSOLVENCY LAW GET LS NOD THE LOK SABHA on Monday approved a clutch of amendments to the Insolvency and Bankruptcy code (IBC) that will significantly reduce resolution timelines, and pave the way for structural reforms in the decade-old law, reports Manu Kaushik. The IBC (Amendments) Bill proposes new frameworks to handle complex cases. » INSIDE « M&AQ4 DEALVALUE HALVES ON UNCERTAINTIES PAGE 4 VEDANTAMOVES SCAGAINST ADANI'S JALBID PAGE 4 BANKSTIGHTEN NORMSAMID BORROWER STRESS PAGE 6 Cameroon WTO talks stall; action moves to Geneva THE US INSISTENCE on a five-year moratorium on taxation of cross border electronic transmissions, instead of two years that other countries were open to, caused the 14th Ministerial Conference of the World Trade Organization (WTO) to end inconclusively at Yaounde in Cameroon late on Sunday, reports Mukesh Jagota. ■ PAGE 2 RBI defers capital market exposure norms to July 1 RBI HAS DEFERRED the implementation of the guidelines on capital market exposures to July 1, from the earlier April 1 deadline. The extension follows representations from banks, capital market intermediaries and industry bodies seeking more time and clarity. ■ PAGE 7 Advisories may Ayear to forget for markets gain legal force Sensex closes FY26 in the Re hits 95,bond red,first time in six years yields touch 7% under ITrules KISHOR KADAM & ANJANA THERESE ANTONY Mumbai, March 30 WITH THE WEST Asia tensions continuing to dampen investor sentiment, the domestic stock markets wrapped up the final session of fiscal 2026with an over2% decline on Monday. For the Sensex,it was the first annual decline in six years. During the day, the benchmark fell 1,635.67 points, or 2.22%, to close at 71,947.55, while the Nifty declined 488.20 points, or 2.14%, to end at 22,331.40. After Monday’s losses, both benchmarks have declined by 11.49% and 11.31% in March —the worst since Covid-hit 2020. Arecord `51.09 lakh crore of investor wealth was wiped out during the month,including `9.74 lakh crore on Monday alone. As a result, the entire gains made during fiscal 2026 were erased, with investor wealth declining by `46,474 crore for the year— marking the first annual decline in three years. Overall, the Sensex recorded a drop of 7.06% in fiscal 2026.The Niftydropped 5.05%, registering its first annual decline in three years. Excluding the Covid-affected fiscal 2020, this marks the steepest annual decline for HEAVY LOSSES 71,947.55 Mar 30, 2026 Sensex ex 77,414.92 Mar 28, 2025 -7.06 % Return in % Sensex -7.06 -9.36 FY26 FY16 Investors’ wealth Nifty FY16 -6.6 FY26 FY16 80.0 % change 28.3 -5.05 -8.86 49.9 17.0 29.2 6.2 FY20 FY17 FY18 FY19 6.7 FY23 FY26 FY21 FY22 -2.2 FY24 FY25 -0.1 -24.9 both indices in a decade. Marketswill remain closed on Tuesday on account of Mahavir Jayanti. Nirav Karkera, head of research and fund manager at W by Groww,said the year can broadly be divided into three phases. “Initially, markets were weighed down by valuation concerns, foreign capital outflows,and theAI narrative. Continued on Page 10 CHRISTINA TITUS Mumbai, March 30 UNDER STRESS CURRENCY AND BOND markets ended FY26 on a bleak note on Monday. The rupee breached 95 for the first time, while the 10-year benchmark yield crossed 7% — also a first since June 2024 — capping a year marked by persistent turbulence. The Reserve Bank of India’s (RBI) proposal to tighten forex position limits fromApril 10 brieflylifted the rupee to 93.47, before it slid back to 95.12 and settled at a record low of 94.83, despite intermittent interventions. That arc broadly mirrors the year’s trajectory, shaped by a series of external shocks—from US President Donald Trump’s tariff tantrums to the ongoing West Asia conflict—which triggered record foreign portfolio outflows. Even as the RBI stepped in repeatedly to curb volatility, the currency continued to weaken. The rupee plunged 10.96% in FY26 — its steepest fall in 14 years — making it Asia’s worst-performing currency. March alone saw a 4.24% decline amid the war-led spike in crude prices, which surged to $105 per barrel from about $70 earlier in Rupee vs dollar 94.83 Mar 30, 2026 10.96 % 85.46 Mar 28, 2025 10-yr govt bond yield (%) 45 bps* 7.04 4 Mar 30, 2026 26 6.58 Mar 28, 2025 *in fiscal 2026 the year. Dealers said importers used the brief rally to lock in dollars, causing the rupee to surrender gains. Continued on Page 10 Rupee is doing‘absolutely fine’,says FM FE BUREAU New Delhi, March 30 FINANCE MINISTER NIRMALA SITHARAMAN on Monday said the country’s economic fundamentals remain robust, asserting that the rupee is performing “absolutely fine” compared with other emerging market currencies against the dollar. Addressing a supplementary question in the Lok Sabha on the recent weakening of the rupee, Sitharaman highlightedthestrengthofthe economy, fiscal position and prudent deficit management, which she said, has earned global praise. The FM also pointed to the country’s solid foreign exchange reserves as a key buffer. “Compared to other emerging economies, the rupee is doing fine.Absolutely fine,”she said. Sitharaman noted that this movement was not unique to thelocalcurrencyandthatseveral other majorAsian curren- cies have also weakened against the dollar during the same period. Certain peers, such as the South Korean Won, Thai Baht and Philippine Peso, have declined against the dollar more than the rupee, by 4.6%, 5.5% and 4.8%, respectively,she said. NIRMALA SITHARAMAN, FINANCE MINISTER Since the beginning of the WestAsia conflict on February 28,therupeehasfacednotable pressure. The currency plunged 10.96% in FY26 — its steepest fall in 14 years — making it Asia’sworst-performing currency. On Monday, the currency breached the 95-mark for the first time. Compared to other emerging economies, the rupee is doing fine...At the core of this weakness is the global backdrop Minister of State for Finance Pankaj Chaudhary said that the rupee’s value is determined by market forces and influenced by multiple globalanddomesticfactors.He assured the House that both the government and the Reserve Bank of India (RBI) are closely monitoring the currency’s movements. Chaudhary further said inflation in India has eased, with the average retail inflation declining from 6.2% in 2020-21 to 4.6% in 2024-25 and further to 1.9% in 202526 (April-February). Prices of most essential commodities have remained stable orexhibitedadecreasingtrend,hesaid. ‘Readthedictionary’:Chakraborty Manufacturing drives up hitsbackatinsinuationcharges IIPgrowth in February FE BUREAU New Delhi, March 30 ATANU CHAKRABORTY, FORMER part-time chairman of HDFC Bank, on Monday pushed back against suggestionsthathisresignationletter containedinsinuations,saying those interpreting it thatway“need to read the dictionary”. His remarks come after Securities and Exchange Board of India (Sebi) Chairman Tuhin Kanta Pandey cautioned that directors should avoid unsubstantiated insinuations and raise concernsformally within boardrooms. Chakraborty, however, maintained he had made no allegations, only highlighted a divergence in values and ethical frameworks. In an interview with CNBC-TV18, Chakraborty reiterated that his decision to step down on March 18 stemmed from an “incongruence” between his own standards of governance and those he perceived at the bank.“We do not digwells afterthe fire has taken place. There needs to be avoidanceofriskypractices,” he said, underscoring the need for preventive, not reactive,governance. He pointed to the mis-selling of additional tier-1(AT1)bonds to clients in Dubai—an issue that drew regulatory scrutiny—as emblematic of his concerns. While the bank had characterised the episode as a “technical lapse”, Chakraborty suggesteditraiseddeeperquestionsaroundconductandethics. Healsoflaggeddelaysindisciplinary action, noting that the issues persisted foryears before correctivestepsweretaken. “Somethinggoesonforeight years and suddenly we take an action… I feel these conduct issuesshouldnotariseinthefirst place.”.Hedescribedthisasreactive,notpreventivegovernance. Lastweek,thelenderterminated threeseniorexecutivesovertheir ATANU CHAKRABORTY, FORMER PART-TIME CHAIRMAN, HDFC BANK Something goes on for eight years (mis-selling of AT1 bonds) and suddenly we take action…We do not dig wells after the fire has taken place Personality differences have been overstated and were not a determining factor. The issues ran deeper than individual equations alleged role in the mis-selling linked to Credit Suisse. At the sametime,Chakrabortyavoided drawingbroaderconclusionson governanceatthelender,saying itwould be“unfair”to do so. Dismissing reports of a power struggle with Managing Director and CEO Sashidhar Jagdishan, he said “personality differences have been overblown” and clarified that the question of the CEO’s reappointment had not come up before the board.“Something whichwasnotevendiscussed— how could differences be there?”he said. Chakraborty also rejected the view that his resignation triggeredthesharpfallinHDFC Bank’s stock, attributing the decline largely to broader market factors,including geopolitical tensions. He added that the stock had been underperformingevenearlier,pointingtoconcerns such as slower CASA growth and a relatively high cost-to-income ratio. Emphasising the role of independent directors,he said their responsibility extends beyond oversight to ensuring that governance standards, customerprotection and longterm institutional integrity are upheld. KULDEEP SINGH New Delhi, March 30 INDIA’S FACTORY OUTPUT growth accelerated to 5.2% year-on-year(y-o-y)inFebruary fromanupwardrevisedgrowth of5.1%inthepreviousmonth, datareleasedbytheministryof statistics and programme implementation (MoSPI) on Monday showed.This was primarily driven by a 6% growth recordedbythemanufacturing sector and also aided by a favourable base. TheFebruaryprint,however, doesn’t reflect the likelyimpact of the ongoing West Asia crisis. Economists expect the March print to reflect the impact on factoryoutput growth. According to the data,mining and electricity grew at 3.1% and 2.3%, respectively, in February.The growth in the mining sectorslowed to a fourmonth low, while the electricity sector witnessed a threemonth low growth. The factory output, measured by the Index of Industrial Production (IIP), had recorded a 2.7% growth in February last year. Continued on Page 7 ● User content liability risk may also rise KEY PROPOSALS FE BUREAU New Delhi, March 30 GOVERNMENT ADVISORIES TO internet platforms may soon carry legal force, with direct implications for how user-generatedcontentishandled,underadraftamendment totheInformationTechnology (Intermediary Guidelines and Digital Media Ethics Code) Rules,2021. The proposal, issued by the ministry of electronics and information technology, on Monday seeks to make compliance with official advisories, clarifications and directions a partoftheduediligenceobligationsthatplatformsmustmeet toretainsafeharbourprotection undertheInformationTechnologyAct,2000. The draft is open for public consultations tillApril 14. If notified in its current form, the change would mean that the failure to follow such advisories could expose platforms to liability for content posted byusers,marking a shift from the current framework where advisories function largely as guidance without explicit legal consequences. The draft inserts a new provisionrequiringintermediaries to“comply with and give effect to” any clarification, advisory, order,direction,standard operating procedure or guideline issued by the ministry in relation to implementation of the rules.It also specifies that such communications must be issuedinwriting,citetheirlegal basis,define scope and applicability, and remain consistent with the parent lawand rules. ■ Platforms must comply with all govt-issued advisories, directions, SOPs, and more ■ This compliance will now count as part of their due diligence obligations ■ If they fail to comply, they risk losing safe harbour protection ■ Not just publishers, ordinary users’ posts could fall under stricter oversight Crucially, the draft states that compliance with these instruments will form part of due diligence underSection 79. This creates a direct link between ministry-issued advisories and the legal immunity that protects platforms from beingheldresponsibleforthirdpartycontent. The move comes amid increased regulatory focus on issues such as deepfakes, AIgenerated content and expedited takedown timelines. By embedding advisories within the due diligence framework, the government may be able to operationalise new compliance requirements without formal rule amendments each time. Continued on Page 7 Airtel raises $1 bn fordata centre arm ● Global investors back Nxtra as AI demand drives expansion FE BUREAU New Delhi, March 30 BHARTI AIRTEL ON Monday announceda$1-billioninvestment in its data centre subsidiaryNxtraData,ledbyAlpha Wave Global and Carlyle, with AnchorageCapitalalsoparticipating. This comes at a time when the telecom major is looking to scale capacity amid rising demand forAI and cloud infrastructure. Alpha Wave Global will invest $435 million, Carlyle $240 million and Anchorage Capital$35million,whileAirtel will infuse the remaining capital through its subsidiary.The transaction values Nxtra at about $3.1 billion post-closing, with Airtel retaining a controlling stake.The deal is subject to regulatoryapprovals in India. The company said proceeds will be used to expand Nxtra’s data centre network across the country and build AI-ready infrastructurecateringtoenterprises,hyperscalersandgovernment clients. Nxtra currently operates 140 million data centresandover120edgefacilities, with an installed capacity of around 300 MW. “AtNxtra,wehavebuiltoneof India’s most advanced and sustainable data centre networks, designed to meet the evolving needs of enterprises, hyperscalers, and government. CAPITAL GAINS ■ The investment is led by Alpha Wave Global and Carlyle, with participation from Anchorage Capital ■ Alpha Wave Global will invest $435 million, Carlyle $240 million and Anchorage Capital $35 million ■ Airtel will infuse the remaining capital through its subsidiary ■ The transaction values Nxtra at about $3.1 billion post-closing With300MWcapacitytoday,we aim to scale to 1 GWin the next fewyears,targeting25%market share,” Gopal Vittal, executive vice-chairman,Airtel,said. The investment comes as India’s data centre sector sees stronggrowthdrivenbydigitalisation, cloud adoption and increasing demand from largescale computing workloads. Industry estimates cited by the company project capacity to growatacompoundannualrate of about 21% between 2024 and 2030 to nearly3,400 MW. Continued on Page 7