Weekly News Analysis (29 April - 5 May 2024

29 April 2024 (Monday)
Investing in Dubai Property for Indians

What's The matter: Dubai's property market entices wealthy Indians with frequent fairs,
social media ads, and flexible payment plans. However, these seemingly attractive deals
might violate India's Foreign Exchange Management Act (FEMA).
What are the FEMA Regulations:

1) An individual Indian can send a maximum of $250,000 annually for overseas property
purchases.
2) Family members can combine their yearly limits ($250,000 each) for bigger property
acquisitions.
3) FEMA prohibits property purchases with payments spread over years ('instalment
plans') as it creates a foreign exchange obligation.
What are the problems in those ads/offers:

1) Many Dubai property deals advertise low down payments (15-20%) with extended
instalments. Experts warn such plans might be disguised financing arrangements,
violating FEMA.
2) Borrowing funds from a local or offshore lender abroad is also not permitted for
Indian residents.
Loopholes that are allowing these:

1) Some FEMA consultants believe instalments for under-construction projects might be
permissible, but careful contract review is crucial.
2) The recent relaxation of the UAE's Golden Visa program allows borrowing for
property purchase, potentially offering a solution.
ONDC Initiative of Government

What's the matter: The Indian government is actively promoting the Open Network for
Digital Commerce (ONDC). This involves encouraging major e-commerce players like
Amazon and Flipkart to integrate ONDC storefronts within their platforms. This aims to
significantly increase ONDC's user base and improve operational efficiency.
What is ONDC: The Open Network for Digital Commerce (ONDC) is a government-backed
initiative designed to create an open and neutral e-commerce ecosystem in India. Unlike
traditional platforms dominated by a few companies, ONDC functions as a network, allowing
buyers and sellers to connect directly through various buyer apps and seller platforms.
Journey of ONDC:
● Launched in January 2023
● Network participants have increased from 24 to 81 in 14 months.
● ONDC operates in 13 categories, expanding from its initial 3.
● Over 622 cities now process more than 100 ONDC orders monthly.
● The network has facilitated over 49.79 million transactions since launch.
● The dominant category on ONDC currently is mobility services (like ride-hailing),
contributing over 50% of total transactions.
● ONDC is actively expanding into sectors like groceries, fashion, food and beverages,
electronics, and homeware.
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Benefit of integration:
1) ONDC offers access to a wider range of sellers, particularly smaller businesses,
beyond established platforms.
2) ONDC makes it easier for smaller sellers to join the e-commerce ecosystem without
hefty commissions or complex onboarding processes.
3) ONDC's open architecture allows for innovation in buyer apps, seller tools, and
logistics solutions.
Challenges in ONDC Integration:

1) Attracting users to the platform and establishing brand recognition compared to
existing giants is a hurdle.
2) While ONDC is collaborating with the National Restaurants Association of India
(NRAI), convincing restaurants of the benefits and ensuring smooth food delivery
services requires further development.
3) ONDC directly competes with well- entrenched e-commerce platforms like Amazon,
Flipkart, Swiggy, and Zomato.
Past developments in integration:

1) Amazon had previously shown interest in integrating its logistics network and
SmartCommerce services (for small businesses) with ONDC.
2) Flipkart's logistics arm, Ekart, is already integrated with ONDC.
Changes in CSR Norms

What's the matter: The current Corporate Social Responsibility (CSR) norms in India might
not be effective. Some companies are not spending the required funds, and the penalty for
non-compliance might not be a strong enough deterrent. Seeing all these The government of
India is considering changes to the corporate social responsibility (CSR) norms.
What is CSR: CSR (Corporate Social Responsibility) is the responsibility of companies to

take actions that benefit society and the environment, beyond just making profits. And that's
why each company must have to spend some part of their earnings in CSR activities.
Data on CSR Funds:

● Total CSR expenditure in FY22: ₹26,279 Crore
● Number of companies that did not spend any CSR funds in FY22: 3,984
Changes Proposed:
1) Increase penalties for companies not spending CSR funds.
2) Widen the scope of activities that qualify for CSR spending.
3) Clarify the local area spending stipulations for CSR.
Why changes are introduced:

1) The current penalty structure is not discouraging companies from not fulfilling their
CSR obligations.
2) The current list of approved CSR activities might be too restrictive.
3) There is ambiguity regarding the mandatory nature of spending CSR funds in the
local area.

4) There is a loophole in the current penalty system that companies can potentially hold
back unspent CSR funds in fixed deposits and pay the capped penalty of ₹1 crore,
making the penalty a less effective deterrent.
Other Key News

1) Roads that repair themselves could soon become a reality in the country, with the
National Highways Authority of India (NHAI) beginning work on adopting a new
technology for the purpose
2) The booming interest in AI technology is driving a surge in demand for CAIOs.
3) The market for after-sales service for smartphones in India is booming, driven by
rising sales of premium handsets and extended warranties.
4) Election Commission of India has declared the elections held in six polling stations of
the Outer Manipur parliamentary constituency as ‘void’.
5) MDH Spices has denied allegations that its products have traces of cancer causing
agent ethylene oxide calling them untrue and lacking any substantiating evidence.

30 April 2024 (Tuesday)
Tata Sons to boost Air India and Vistara Merger

What's the matter: Tata Sons, the parent company of Tata Airlines, is expediting the merger
of Air India and Vistara to create a single airline by the end of 2024. This move aims to
streamline Tata's aviation business, resulting in a single full-service airline (Air India &
Vistara) and a single low-cost airline (AirAsia India & Air India Express).
Benefits of merger:
1) Increased Efficiency
2) Cost Savings
3) Improved Operations
Main reason of Merger: Both airlines operate flights to similar destinations at similar times
but Separate resources are used at airports (e.g., check-in counters). It is increasing the cost
of operation so merging these will eliminate duplication and improve efficiency.
Necessity for the merger:

1) Flight operations manuals need to be merged.
2) Vistara's flying staff (pilots) will require conversion courses (around 40 days).
3) The merger will be gradual to avoid flight disruptions.
4) Clarity on roles for non-flying staff is expected by May-June 2024 (as per Vistara
CEO).
FB Seek Flexibility in Regulatory Framework

What's the matter: Foreign banks are facing challenges complying with LEF due to Nostro
accounts and thus they are requesting more flexibility in complying with the Reserve Bank of
India's (RBI) Large Exposures Framework (LEF).
What is Nostro Accounts: These are accounts a bank holds with an overseas lender in the
foreign currency. They facilitate international trade by enabling fund flows.
What is the current LEF Limit: LEF restricts a bank's exposure to a single counterparty
(including Nostro accounts) to 20% of its capital base, with a 5% exception allowed under
special circumstances.
What did Foreign Bank demand: They want Nostro account inflows (meant for quick
transactions) to be excluded from LEF calculations to avoid breaching exposure limits.
Reason given by Foreign bank:

1) These inflows aren't permanent and are used for specific upcoming transactions.
2) Counting them as exposure creates an unnecessary burden.

RBI's Directive on Fair Lending Practices
What's the matter: The Reserve Bank of India (RBI) identified unfair practices in how some
lenders charged interest on loans and directed them to follow the Fair Practices Code.
Unfair Practice Identified:

1) Lenders charged interest from the date the loan was approved or the agreement
signed, instead of the date the borrower actually received the money.
2) In cases where loans were disbursed by cheque, lenders started charging interest
from the date on the cheque, even though the borrower might have received it days
later.
Directives of RBI to stop this:

1) The RBI instructed lenders to return any excess interest and charges collected due to
these unfair practices.
2) The RBI encouraged lenders to disburse loans through online account transfers for
faster and more transparent transactions.
3) Lenders were told to only charge interest for the period the loan was actually
outstanding, not for the entire month if disbursement or repayment happened within
the month.
4) The practice of collecting advance instalments and still calculating interest on the full
loan amount was deemed unfair and needs correction.
Other Key News

1) The Supreme Court on Monday restrained CBI from taking any precipitative action
against the officials of the West Bengal government in the case pertaining to alleged
illegal recruitment of teaching and nonteaching staff by the state’s School Service
Commission.
2) It’s been a sizzling April for summer products such as air-conditioners, refrigerators,
air-coolers, soft drinks and ice-creams, with sales surging 40-50%.
3) The Union home ministry has cancelled the Foreign Contribution Registration Act
(FCRA) licences of six non-governmental organisations (NGOs) for their alleged
violation of the FCRA rules, misuse of foreign grants, religious conversion
4) Tata Sons has raised its shareholding in Tata Play to 70% by acquiring Singaporean
government-owned investment firm Temasek’s 10% stake in the company for about
$100 million (close to ₹835 crore).
5) Infant food Cerelac has about half of the upper limit of added sugar as set by Indian
food and safety regulator FSSAI, packaged foods maker Nestle India’s chairman
Suresh Narayanan said at a media round table on Monday

1 May 2024 (Wednesday)
Godrej Family Seals Terms of Division

What's the matter: The Godrej family announced a shareholding realignment within the
group on Tuesday, after a meeting that extended late into the evening.
What is realignment: Realignment is the process of changing the way a company operates
to align with internal and external factors.
Way of realignment:
● Jamshyd Godrej & his niece Nyrika Holkar along with their families:
○ Oversee Godrej Enterprises Group (GEG), encompassing Godrej & Boyce
and its affiliates spanning various industries
■ Jamshyd Godrej & Smita Godrej Crishna (Mother of Nyrika
Holkar):
● Godrej Enterprises Group (GEG)
● Adi Godrej & Nadir Godrej along with their families:

○ Godrej Industries Group (GIG), which includes Godrej Industries, Godrej
Consumer Products, Godrej Properties, Godrej Agrovet and Astec
Lifesciences.
● Pirojsha Godrej:
○ Executive vice chairperson of Godrej Industries and succeeded Nadir Godrej
as chairperson in August 2026.
Aim of Realignment: To preserve harmony and align ownership more effectively in

recognition of the varied visions among the Godrej family members
Benefit of this Realignment:

1) Enhance strategic direction
2) Enhance agility
3) Enhance Focus
4) Expedite the generation of long-term value for shareholders and all stakeholders
SC Rejects Govt Plea on Spectrum Allocation

What's the matter: The Indian government wanted the Supreme Court to revisit its 2012
decision and allow for administrative allocation (assignment by the government) of spectrum
in specific cases. But the Supreme Court rejected the plea due to various reasons.

Background of the Case: In 2012, the Supreme Court ruled that spectrum, a vital resource
for telecommunications, should be allocated through auctions to ensure transparency and
fairness (2G spectrum allocation case). But now the Indian government wanted to revisit the
decision and thus they filed a plea in the Supreme Court.
Reason of rejection of plea:

1) The government was seen as trying to get the 2012 order reviewed under the guise
of seeking clarification.
2) There wasn't a strong justification for revisiting the case after such a long time (over
11 years).
3) The government had already withdrawn a review petition filed in 2012.
Reason given by government to revisit judgement: Auctions might not be feasible for all
situations, including:
1) Non-commercial uses like national security, disaster relief, and space
communication.
2) Captive use (spectrum used for internal operations within a company).
3) Occasional or one-time use.
RBI Tightens Regulations on P2P Lending

What's the matter: The Reserve Bank of India (RBI) banned peer-to-peer (P2P) lending
platforms from offering default loss guarantees (DLG) to investors in order to strengthen
oversight of the digital lending sector.
What is P2P: P2P (Peer-to-Peer) lending platform acts as a marketplace that connects
borrowers directly with lenders.
What is DLG: DLG (Default Loss Guarantees) is a guarantee offered by a company (often
an affiliate of the P2P platform) to compensate lenders for a portion of their losses if a
borrower defaults on a loan.
Impact of move on P2P:

1) Many P2P platforms relied on affiliate companies (like Uni, MobiKwik) to find
customers.
2) These affiliates offered DLGs, typically covering up to 5% of loan defaults.
3) The RBI's ban on DLGs will likely affect P2P platforms that heavily relied on this
strategy.
Challenges arise due to this move:

1) P2P platforms may face higher customer acquisition costs without DLGs to attract
investors.
2) Investors seeking to diversify their portfolios might be discouraged due to the
increased risk.

Railway Station name change in UP
What's the matter: The Centre has approved renaming 8 Amethi railway stations in Uttar
Pradesh. A no-objection-certificate (NOC) has been issued to rename these 8 stations. Out
of which 7 have been renamed successfully on demand by locals. The Remaining one has
to get a No-Objection Certificate (NOC) from the Union Minister.
List of renamed stations:

S.No. Old Name New Name
1 Fursatganj Railway Station Tapeshwarnath Dham
2 Kasimpur Halt Jais City
3 Jais City Guru Gorakhnath Dham
4 Bani Swami Paramhans
5 Misrauli Maa Kalikan Dham
6 Nihalgarh Maharaja Bijli Pasi
7 Akbarganj Maa Kalikan Dham
Mumbai Real Estate Market Boom

What's the matter: The Mumbai real estate market is experiencing a significant resurgence
driven by strong demand, stable prices, and a growing preference for homeownership.
Points related to boom:

1) Mumbai's property registrations hit a new high in April 2024.
2) Stamp duty collection reached ₹1,047 crore, the highest ever for April. This
represents a 16% increase compared to April 2023.
3) The number of registered properties surpassed 11,475, marking the second-best
April in terms of registrations.
Reason of boom:
1) Strong demand from homebuyers despite rising interest rates and property prices.
2) Positive economic sentiment and overall stability in property prices.
3) Growing preference for homeownership.
4) Robust economic growth fueling the market.

Market Trend:
1) Increase in registrations for smaller apartments (under 500 sq ft) to 45% (up from
41% in March).
2) Slight decrease in registrations for mid-sized apartments (500 sq ft - 1,000 sq ft) to
40% (from 43%).
3) Stable registrations for larger apartments (above 1,000 sq ft) at 15%.
4) Mumbai's central and western suburbs lead the surge with over 73% of registrations
due to new launches, modern amenities, and good connectivity.
SEBI Approves Measures in gift city

What are the measure:
● Foreign Portfolio Investors (FPIs):
1) SEBI allows increased participation of NRIs and OCIs in Indian markets
through FPIs.
2) These FPIs must be based in and regulated by International Financial
Services Centres (IFSCs) in India.
3) NRIs and OCIs can contribute up to 100% of the FPI's corpus, subject to
conditions:
a) Submitting PAN cards of all NRI/OCI investors and their economic
interest.
b) Providing declarations for investors without PAN cards.
c) Disclosing indirect holdings through NRI/OCI majority-controlled firms.
d) This move aims to attract India-focused offshore funds to IFSCs.
● Mutual Funds:
1) SEBI simplifies norms for passive equity schemes to invest in sponsor group
companies.
2) These schemes can now invest up to the weightage of the group companies
in the underlying index.
3) An overall cap of 35% investment in sponsor group companies remains.
4) This levels the playing field for all asset management companies (AMCs).
5) Previously, mutual funds were restricted to 25% investment in sponsor group
companies.
● Measures to Address Market Abuse:

1) SEBI mandates AMCs to establish institutional mechanisms to deter market
abuse like front-running.
2) These mechanisms include enhanced surveillance, internal controls, and
escalation processes.
3) Face-to-face recording requirement for dealers and fund managers is relaxed
temporarily.
4) This relaxation is subject to implementation of the anti-abuse mechanisms by
AMCs.

● Debt Securities:
1) SEBI allows issuing non-convertible debentures (NCDs) and redeemable
preference shares (NCRPS) through private placement.
2) The minimum face value is reduced to Rs. 10,000 with mandatory
appointment of a merchant banker.
3) This aims to increase participation of non-institutional investors in the bond
market.
4) These instruments will be plain vanilla (without complex features) and can
offer interest or dividends.
5) Credit enhancements for these instruments are permitted.
Other Key News

1) The Reserve Bank of India (RBI) has cautioned banks about gold loan disbursals
being made through fintech startups
2) The Election Commission of India has asked chief electoral officers to seal and store
symbol loading units (SLUs) for the remaining five phases of the Lok Sabha
elections.
3) JDS on Tuesday suspended its Hassan MP and NDA candidate Prajwal Revanna
from the party over his alleged involvement in obscene videos.
4) The Election Commission of India has deferred elections to Anantnag-Rajouri Lok
Sabha seat in Jammu and Kashmir to May 25 from May 7, citing logistical issues due
to adverse weather conditions.
5) The Election Commission of India on Tuesday reported 66.14% voter turnout for
Phase 1 of the Lok Sabha elections and 66.7% in Phase 2 — a 2.8 to 3.3 percentage
point drop from 2019 figures.
6) Eight newspapers owned by Alden Global Capital sued OpenAI and Microsoft on
Tuesday, accusing the tech companies of illegally using news articles to power their
AI chatbots.
7) The decline in polling percentage in the first two phases of the ongoing general
election compared to the previous polls has spurred the Election Commission of India
(ECI) to push telecom operators to send SMSes to voters to encourage them to
exercise their franchise in larger numbers in the subsequent phases
8) Demand for gold bars and coins, which are primarily bought as investment, rose 19%
in the quarter ended March 31, at par with the first three months of 2022 when the
growth was the strongest since 2014.

2 May 2024 (Thursday)
China in India's Electronics Market

What's the matter: The Indian government might be considering allowing Chinese
electronics companies to invest in India on a case-by-case basis, especially in high-tech
areas on some strict conditions.
What are the conditions to invest:

1) Investment must lead to significant growth in domestic component manufacturing.
2) Technology expertise shouldn't be available from other sources (South Korea, Taiwan
etc.).
3) Indian partner likely to have a dominant stake in the joint venture.
Current Status:
1) This is not a confirmed policy yet and might be decided by the new government after
elections.
2) Indian electronics companies are lobbying for this change.
India's April GST Collection boost

What's the matter: India’s goods and services tax (GST) collection hit an all-time high of
₹2.1 lakh crore in April, underlining the robust economy and kicking off the new fiscal year
on a strong note.
Numbers of Boost in GST:

● Total GST Collection: ₹2,10,267 Crore
○ IGST: ₹99,623 Crore
○ CGST: ₹43,846 Crore
○ SGST: ₹53,538 Crore
○ Cess: ₹13,260
● Total refund: ₹18,267 Crore
● Net GST Collection: ₹1,92,000 Crore
● Growth:
○ YoY (Year on Year) Growth in GST Collection: 12.4%
○ YoY (Year on Year) Rise in Domestic Transaction: 13%
○ YoY (Year on Year) Growth in net GST Collection: 15.5%
Advantage of this boost:

1) Creates room for the much-anticipated reform of the GST regime when the new
government takes charge after general elections.
2) Will give a good boost to the growth of Indian Economy in the FY25

Reason for this boost: The concerted efforts of the GST officials including zero tolerance
for non-filers, coupled with rigorous measures to combat fake invoicing and the registrations
has significantly bolstered GST collections in the state’s coffers.
Other Key News

1) With elections underway, politics has become a lucrative topic for digital content
creators, akin to cryptocurrency and finance during the boom years at the peak of the
pandemic.
2) Kaiser Permanente, a US health insurance giant, is in advanced talks to lead a
$200-250 million investment in Innovaccer, a healthcare software company.
3) The special cell of Delhi Police will investigate the bomb threat to over 100 schools in
Delhi-NCR received through emails on Wednesday.
4) Anuj Thapan, one of the four accused arrested in connection with the firing outside
Bollywood actor Salman Khan’s residence last month, died allegedly by suicide in a
Mumbai Police lockup early on Wednesday.
5) A court in Delhi on Tuesday dismissed the bail plea of former Delhi deputy chief
minister and AAP leader Manish Sisodia, who is in jail since February 26 last year for
his alleged role in the Delhi excise policy case.
6) Physical smartphone sales in India are rising, with offline retailers capturing a bigger
market share.

3 May 2024 (Friday)
Reliance Retail Ventures Investment

What's the matter: Abu Dhabi Investment Authority (ADIA) and KKR invested ₹12,864 crore
($1.5 billion) in Reliance Logistics and Warehouse Holdings (RLWH), a new company set up
by Reliance Retail Ventures Ltd (RRVL) in December 2022. This investment is separate from
the Intelligent Supply Chain Infrastructure Trust (InvIT) structure RRVL established last year
for some of its warehousing assets.
Performance of RRVL in FY24:

● Global Investment from Investors: ₹17,814 crore
● Investment from RIL: ₹2,500 crore
Details of RIL till FY24:

● Total Store Count: 18,836
● Total Retail Area: 79.1 mn sq ft
Details of the investment:

● Total Investment: ₹12,864 crore ($1.5 billion)
○ Senior debt: ₹7,075 crore
○ Subordinated non-convertible debentures (NCDs): ₹5,275 crore
○ Equity infusion: 514 crore
Details of the deal:

1) Similar to the InvIT, RLWH will have long-term lease agreements with RRVL and RRL
for at least 20 years, ensuring stable cash flow with a potential for extension beyond
20 years.
2) KKR and ADIA's investment could increase to $2 billion in the future.
Delhi HC Grants Stay Order in ICAI Dispute

What's the matter: The Delhi High Court has issued a stay order against the Institute of
Chartered Accountants of India (ICAI) regarding its disciplinary actions taken against EY's
affiliate firms and partners.
Background of matter: ICAI has been investigating potential violations by 171 Indian
chartered accountant firms linked to international networks. EY firms responded to ICAI's
queries and participated in hearings. ICAI's disciplinary committee ruled against EY which
EY Affiliates challenged in the High Court of which a stay order came.

Actions of ICAI:
1) ICAI had barred two retired partners from EY's affiliate firms (SV Ghatalia & Co. and
SR Batliboi & Associates group) for 3 years and imposed a fine of ₹5 lakh each.
2) ICAI also ordered these affiliate firms to terminate partnerships with international
entities like EY Global, citing a violation of the Chartered Accountants Act, 1949.
Reasons for ICAI Judgement:

1) Referral work and payments to international entities, allegedly prohibited by the Act.
2) Partners using business cards and email IDs that suggested a closer association with
the international EY entity than permitted.
Manufacturing Activity (April 2024)

Manufacturing Strength:
1) India's manufacturing activity grew at a strong pace in April, though slightly slower
than the previous month's 16-year high.
2) The Purchasing Managers' Index (PMI) stood at 58.8, indicating the second-fastest
improvement in operating conditions in 3.5 years.
3) This is positive as a PMI above 50 suggests expansion.
Demand and Exports:

1) Domestic and international demand for Indian manufactured goods remained healthy.
2) New orders rose at the second-fastest pace since 2021.
3) However, merchandise exports for the last fiscal year (FY24) dipped 3% to $437
billion.
4) The government expects export performance to improve in the current fiscal year due
to a recovering global economy.
Inventory and Costs:

1) Higher buying levels resulted in manufacturers accumulating stocks at one of the
highest rates since 2005.
2) Raw material and labour costs increased slightly, leading to a modest rise in input
costs.
3) However, inflation remained below historical averages.
4) Manufacturers were able to pass on these cost increases to consumers due to
buoyant demand, maintaining profit margins.
Other Key News

1) Coca-Cola India-owned bottling company Hindustan Coca-Cola Beverages (HCCB)
is planning an initial public offering (IPO), betting on growth prospects in the country
of 1.4 billion people
2) Prime Minister Narendra Modi said that the INDIA bloc has sent out a clear message
to carry out ‘vote jihad’, urging “Muslims to get together and vote”.
3) Congress president Mallikarjun Kharge on Thursday rejected Prime Minister
Narendra Modi’s charge that Congress would make use of the quota for Scheduled
Castes (SCs), Scheduled Tribes (STs) and Other Backward Classes (OBCs) to hand
over reservation to Muslims, and asserted that for the Congress every Indian is its
vote bank.
4) A top Indian medical scientist has asked people not to panic as any side effect of a
Covid-19 vaccine is a “rare occurrence”.
5) Premji Invest is in advanced talks to acquire a majority stake in Nainital Bank at a
valuation of around ₹800 crore divesting the 98% stake of Bank of Baroda.
6) Manipal Group chairman Ranjan Pai’s investment office Claypond Capital and private
sector lender Axis Bank are in talks to invest in gold loan startup Rupeek
7) Pension funds managed under the National Pension System (NPS) are steadily
increasing their investment in government bonds (sovereign debt).
8) Paytm Money, the wealth management platform of One 97 Communications Ltd, has
appointed Rakesh Singh as its chief executive, replacing Varun Sridhar
9) mid-sized IT firms emerged as bright spots in the IT sector, strategically targeting
specific markets and adapting to changing trends.
10) Rising temperatures in many parts of India are set to inflate air-conditioning costs at
telecom tower installations, crucial for ensuring uninterrupted operations of base
stations for 24x7 mobile connectivity

4 May 2024 (Saturday)
Ayana Renewable Power stake sale
What's the matter: 5 companies have made non-binding offers to acquire a controlling
stake in Ayana Renewable Power, majority owned by National Investment and Infrastructure
Fund (NIIF).
Companies Interested:
1) JSW Neo Energy
2) Sekura Energy
3) Masdar
4) Sembcorp
5) Macquarie
Current shareholding of Ayana Renewable Power:

● National Investment and Infrastructure Fund (NIIF): 51%
● British International Investment (formerly CDC Group): 32%
● Green Growth Equity fund of Eversource Capital: 17%
Sale Process:
1) Bids submitted on April 19, 2024.
2) Shortlist of suitors to be announced in the next few weeks.
3) 2-3 shortlisted entities will be allowed for detailed due diligence.
Company Details:
● Registered and corporate office: Bengaluru, India
● Company Valuation:
○ Estimated enterprise value: $2 billion (around)
○ Equity funding by existing investors: $721 million.
○ Debt: $1.2 billion (around)
● Project and Capacity:
○ Total project pipeline: More than 4 GW (solar, wind, hybrid)
○ Operational capacity: 1.3 GW (Andhra Pradesh, Karnataka, Rajasthan)
○ Projects under development: 2.8 GW (with PPAs)
○ Upcoming projects (without PPAs): 800 MW (commissioning expected in
FY25 & FY26)
BHIM App on ONDC

What's the matter: BHIM (Bharat Interface for Money) to join ONDC (Open Network for
Digital Commerce). Separate division within BHIM will handle e-commerce operations.
Aim of move: To increase BHIM adoption against competitors like Google Pay and
PhonePe.
Reason for move: To compete and reduce the dominance of big apps like Phone Pay and
Google Pay.
Reason for larger dominance of google pay and phone pay:

1) Extensive marketing efforts with cashbacks.
2) Focus on merchant acquisition.
3) Consumer preference for familiar QR codes.
BHIM's Revival Attempts:

1) Recent surge in BHIM downloads (21.5% weekly increase) after Paytm regulations.
2) Appointment of ONDC's ex-executive Rahul Handa as BHIM's COO.
3) BHIM 2.0 project to revamp user experience.
4) Partnership with ONDC expected to boost BHIM usage.
Apple Records Strong Growth in India

What's the matter: Apple set a new March quarter revenue record in India despite a global
decline of 4% and iPhone sales in India grew 19-20% year-over-year, driven by Pro models
and discounts making India 4th largest iPhone market (Q1 2024).
Reason of growth:
1) Increased iPhone production in India to enhance competitiveness.
2) Expansion of retail stores and developer ecosystem.
3) Growing demand for premium iPhone models.
Future outlook:
1) Apple sees "enormous opportunities" in India with a large and growing population.
2) High brand excitement and low market share indicate significant potential for future
growth.
3) Focus on the entire ecosystem, including developers and operations, suggests
continued investment in India.
Drug Regulator Revokes State for NOC

What's the matter: India’s drug regulator has withdrawn powers delegated to the state
licensing authorities to issue no objection certificates (NOC) for manufacture of unapproved,
banned or new drugs for export purposes.
Reason to took this step: Substandard Indian drugs causing health concerns in several
countries (Gambia Case)

Gambia Case:
● What is it: Cough syrups imported by The Gambia were alle gedly found to be
contaminated with diethylene glycol (DEG) and ethylene glycol (EG), resulting in
cases of acute kidney injury among kids.
● How it was revealed: An investigation led by the United States Centers for Disease
Control and Prevention (CDC) and Gambian scientists in March “strongly suggested”
that medications contaminated with DEG or EG imported into the country led to the
cases among children.
What about existing NOC: The industry can apply again from the zonal offices through
online mode from May 15 as the NOC issued by state or union territory authority will get
discontinued w.r.t. 15 May.
Other Key News

1) The Godrej Group factions, Godrej Industries Group (GIG) and Godrej Enterprises
Group (GEG), will not be competing in the real estate business using the same
Godrej brand either during the six years of their non-compete agreement or even
after that.
2) Chief executives and CXOs of 10 top global and Indian consumer-facing companies
forcast a robust year ahead amid grim economic commentary for several global
markets.
3) The Supreme Court on Friday verbally observed that it could consider granting
interim bail to Delhi chief minister Arvind Kejriwal due to the Lok Sabha elections.
4) The Institute of Chartered Accountants of India (ICAI) on Friday asserted that it has
statutory power to initiate action against errant auditors and firms, defending its last
week order against auditing major EY's three affiliates for professional misconduct.
5) The growing health food awareness in India, further boosted by social media
influencers, is increasingly spilling over to corporate cafeterias.
6) The Delhi High Court on Friday observed that the service charge levied by
restaurants and hotels along with GST was a “double whammy” for customers even
as it suggested a change in the “service charge” terminology.
7) The Enforcement Directorate (ED) has recovered 268 bitcoins coins worth ₹138
crore from a Haldwani resident whose premises were raided last week on the
instance of US authorities investigating his alleged involvement in an international
drug trafficking group.
8) Go First will not challange the Delhi High Court order that told the Directorate
General of Civil Aviation (DGCA) to deregister all its 54 aircraft by Friday.

5 May 2024 (Sunday)
Liquid Product: The New Trend
What's the matter: A Kantar report reveals a 13% and 20% growth in liquid fabric softeners
and washes, respectively, compared to the overall FMCG market growth of 5%. Sales of
liquid products are outpacing those of solids and powders.
Reason of boost:
1) Online shopping has facilitated easier access to a wider variety of liquid products,
including those from new players.
2) Consumers are increasingly drawn to premium, convenient, and differentiated liquid
options.
3) Established FMCG players like HUL, ITC, and Colgate-Palmolive are actively
expanding their liquid product portfolios across brands and price points. Startups are
also entering the fray with innovative offerings.
4) Supermarkets are also driving the shift, with Reliance Retail witnessing higher sales
of machine wash liquids compared to powders.
How Company react on it:

● HUL:
○ Built a strong liquid product portfolio worth nearly Rs 4,000 crore and
relaunched popular brands like Surf Excel and Vim in liquid formats.
● ITC:
○ Focus on expanding its liquid offerings through brands like Fiama,
Dermafique, Savlon, and Nimwash.
● Colgate-Palmolive:
○ Focus on expanding its Palmolive brand beyond oral care, emphasising body
wash and other liquid products.
Kotak Mahindra growth Regulations

What's the matter: Kotak Mahindra Bank is stepping up efforts and investments to resolve
technology concerns raised by the banking regulator and regain approval to resume normal
operations.
What is the regulation: The RBI imposed restrictions on the bank, prohibiting it from
onboarding new customers online or issuing new credit cards. This action was taken due to
the bank's shortcomings in meeting the regulator's technology standards.
Impact of Regulation:
1) The restrictions will hinder customer acquisition, especially through digital channels
(Kotak811).
2) Operating costs increased for the bank, with technology expenses accounting for a
significant portion.
Good growth with restriction: The bank reported an 18% rise in net profit to ₹4,133 crore
for the quarter ending March 31, 2024 driven by the following factors:
1) Interest Income from Lending
2) Lower Provisions
3) Income Tax Refunds
IDBI Bank performance in Q4FY24

What's the matter: IDBI Bank delivered a positive performance in the quarter ending March
2024 (Q4 FY24), with a significant increase in net profit.
Points of growth:
1) Net profit increased by 44% year-on-year to ₹1,628 crore.
2) Net interest income grew 12% year-on-year to ₹3,688 crore.
Reason of this growth:

1) The surge in advances (loans) by 16% is a major contributor to the profit increase.
2) The sharp decline in provisions (funds set aside for bad loans) signifies improved
asset quality, leading to higher profits.
Other Key News

1) KKR will acquire Healthium Medtech (formerly Sutures India) from private equity
owner Apax Partners for an enterprise value of ₹7,000 crore ($840 million).
2) An Indian Air Force detachment was attacked in Poonch area of Jammu on Saturday
evening in which over a dozen personnel were injured, a few of whom are critical.
3) The Directorate General of Foreign Trade (DGFT) on Saturday issued a notification
permitting the export of onions with the Minimum Export Price (MEP) to $550 per
tonne and 40% export duty.
4) The Special Investigation Team (SIT) probing the allegations of sexual assault
against Hassan MP Prajwal Revanna and his MLA father HD Revanna on Saturday
took the latter into custody moving swiftly after a local court denied him anticipatory
bail in connection with an alleged case of abduction of avictim from her house.
5) Bhavesh Gupta, chief operating officer (COO) and president of One 97
Communications (OCL), the parent company that owns and operates the Paytm
brand, has resigned, the fintech firm informed stock exchanges


Weekly News Analysis (29 April - 5 May 2024

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Weekly News Analysis (29 April - 5 May 2024

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29 April 2024 (Monday)

Investing in Dubai Property for Indians

What are the FEMA Regulations:

What are the problems in those ads/offers:

Loopholes that are allowing these:

ONDC Initiative of Government

Challenges in ONDC Integration:

Past developments in integration:

Changes in CSR Norms

What is CSR: CSR (Corporate Social Responsibility) is the responsibility of companies to

Data on CSR Funds:

Why changes are introduced:

Given By E-Newspaper Brigade

Other Key News

Given By E-Newspaper Brigade

Tata Sons to boost Air India and Vistara Merger

Necessity for the merger:

FB Seek Flexibility in Regulatory Framework

Reason given by Foreign bank:

Given By E-Newspaper Brigade

Unfair Practice Identified:

Directives of RBI to stop this:

Other Key News

Given By E-Newspaper Brigade

Godrej Family Seals Terms of Division

● Adi Godrej & Nadir Godrej along with their families:

Aim of Realignment: To preserve harmony and align ownership more effectively in

Benefit of this Realignment:

SC Rejects Govt Plea on Spectrum Allocation

Given By E-Newspaper Brigade

Reason of rejection of plea:

RBI Tightens Regulations on P2P Lending

Impact of move on P2P:

Challenges arise due to this move:

Given By E-Newspaper Brigade

List of renamed stations:

1 Fursatganj Railway Station Tapeshwarnath Dham

2 Kasimpur Halt Jais City

3 Jais City Guru Gorakhnath Dham

4 Bani Swami Paramhans

5 Misrauli Maa Kalikan Dham

6 Nihalgarh Maharaja Bijli Pasi

7 Akbarganj Maa Kalikan Dham

Mumbai Real Estate Market Boom

Points related to boom:

Given By E-Newspaper Brigade

SEBI Approves Measures in gift city

● Measures to Address Market Abuse:

Given By E-Newspaper Brigade

Other Key News

Given By E-Newspaper Brigade

China in India's Electronics Market

What are the conditions to invest:

India's April GST Collection boost

Numbers of Boost in GST:

Advantage of this boost:

Given By E-Newspaper Brigade

Other Key News

Given By E-Newspaper Brigade

Reliance Retail Ventures Investment

Performance of RRVL in FY24:

Details of RIL till FY24:

Details of the investment:

Details of the deal: