After their merger with Bank of Baroda, Dena Bank and Vijaya Bank will be excluded from various NSE indices. The two state-owned banks will be replaced by Corporation Bank and CreditAccess Grameen in Nifty 500, Nifty Smallcap 250 and Nifty MidSmallcap 400 indices. “The Index Maintenance Sub-Committee has decided to replace Dena Bank and Vijaya Bank from various indices on account of the scheme of arrangement for amalgamation," the NSE said in a press release.
Gitanjali Gems promoter Mehul Choksi has given up his citizenship and surrendered his passport to the Indian High Commission in Antigua, according to an NDTV news report. The move is seen as an attempt by him to avoid extradition to India. Choksi, along with his nephew Nirav Modi is wanted by multiple agencies in India for their alleged fraud in excess of Rs 12,000 crore. Antigua is one among the many islands that are collectively called the West Indies and fall in the Caribbean region. Antigua and Barbuda are two islands that together make a country.
Edelweiss Mutual Fund is launching a new fund offer (NFO) of a small-cap fund, the Edelweiss Small Cap Fund, with an added feature called Smart Trigger-enabled Plan (STeP). The Edelweiss Small Cap fund will invest at least 65% of the corpus in small-cap companies. The fund can also take an exposure of up to 35% in large-cap and mid-cap stocks or debt and money market instruments. Investors can either invest a lump sum in the NFO or through a regular SIP. However, these options would be bereft of the STeP benefit to make investments when the market declines.
The benchmark Sensex opened on a cautious note on Monday but recovered to rally 250 points, helped by continued buying in select bluechips by domestic. The NSE Nifty, too, rose 53.10 points to 10,960.05 during the day. Major gainers included Sun Pharma, RIL, Infosys, Bajaj Finance, Bharti Airtel, Tata Motors, Yes Bank, TCS, HUL, Tata Steel, NTPC, ICICI Bank, HCL Tech, Asian Paint, Vedanta, ITC, M&M, Maruti Suzuki and HDFC Bank.
Shares of Larsen & Toubro (L&T) Ltd opened over 3% lower on Monday after market regulator SEBI denied the company permission for its first ever share buyback plan. The company had planned to buy back 6.1 crore shares at Rs 1,475 a share. On Saturday, SEBI had rejected L&T’s proposal stating that the buyback plan would breach the regulatory debt-to-equity ratio as per the consolidated financial statements of the company. As per Nomura research, even a smaller buyback is not feasible since the company's current debt to equity at 2.24 times is already above the SEBI-mandated limit of 2.0 times.
The government is planning to transfer cash payments to farmers instead of offering subsidies on various agricultural inputs, sources said. The government is likely to club all farm subsidies including fertilizer costs. The move will cost the government Rs 70,000 crore annually. The additional spending is not likely to impact the country’s fiscal deficit for the current fiscal year. While the government had targeted a budget deficit of 3.3% of GDP for the current fiscal year, economists expect India to miss the goal for the second year in a row due to pressures of populist measures in the election year.
According to a ToI report, Delhi Metro Rail Corporation (DMRC) has invited expression of interest from banks and non-bank entities to install ATM at its premises. The Corporation is planning to install at least one ATM machine at every station on its network. The move is likely to benefit daily commuters besides fetching revenue for the DMRC. Last month, DMRC had unveiled a service in partnership with cab aggregators, Ola and Uber to set up kiosks at the stations. These kiosks will provide booking facility to metro commuters, along with updates on booking status and location of already booked cabs.
The income tax department has discovered several cases where taxpayers have taken credit for payment of "self-assessment tax" without actually making the payment. Such tax arrears are pegged at around Rs 5,000 crore. The non-payment of dues has resulted in the department not being able to process income tax returns (ITRs) for the last financial year. Tax authorities are now approaching the assessees to pay up the tax dues immediately. Sources in the department said that several of these taxpayers had assured to pay the arrears but have not yet deposited the tax money.
The government has instructed Google and Facebook to remove 'false and malicious' videos and other content that spreads misinformation regarding safety and quality of food in India. The government said that the 'fake' information is diluting the public's confidence over the quality of food available in India. The order follows a complaint by Food Safety and Standard Authority of India (FSSAI) CEO Pawan Agarwal to IT Secretary Ajay Prakash Sawhney. The IT Ministry said that the FSSAI has pointed out instances where the online platforms had been misused to spread wrong information about food quality.
Shares of MindTree jumped over 2% after reports of Larsen & Toubro Infotech (LTI) buying the entire stake of V G Siddhartha, the single largest shareholder of Mindtree and Cafe Coffee Day's founder. Bengaluru-based, mid-tier IT company, MindTree, last week said its Q3 consolidated net profit grew 35.1% to Rs 191.2 crore.
The Serious Fraud Investigation Office (SFIO) has sought the cancellation of the banking licence of DCB Bank for its role in the National Spot Exchange Limited (NSEL) scam. Nearly five years after the scam broke out in 2013, it has now become known that India Infoline Commodity (IICL) and DCB Bank had entered into an agreement to encourage the bank’s clients to enroll with IICL for trading on NSEL. DCB was neither authorized, nor did it take RBI's clearance to enter into an agreement with IICL to push its clients to trade on NSEL, said the SFIO investigation report.
Axis Bank’s new CEO Amitabh Chaudhry is in talks to recruit Federal Bank’s outgoing executive director Ganesh Sankaran and HDFC Bank’s Ravi Narayanan to strengthen the bank’s leadership team. Both Sankaran and Narayanan are reportedly negotiating their appointment terms for joining Axis Bank. Sankaran will step down with effect from February 15 while Narayanan quit last month after spending almost two decades with HDFC Bank.
Market regulator, SEBI, has issued a show-cause notice to textile maker Raymond for alleged statutory violations. The allegations include failure to obtain necessary approvals for related party transactions, non-disclosure of material information about litigations and non-compliance of shareholder reclassification norms. SEBI said that Raymond did not take necessary approvals from the audit committee, as mandated by Listing Obligations and Disclosure Requirements (LODR) regulations, for the leasing of JK House to some of the promoters between 2007 and 2017. The company had also excluded Ritwik Ruia from the promoter group in June 2017 without following due procedures.
LIC completed the acquisition of 51% controlling stake in IDBI Bank making it the majority shareholder of the bank. LIC and IDBI Bank are two of the most trusted brands in the country. IDBI Bank has about 1.5cr retail customers and about 18,000 employees. While LIC can utilise over 1,800 branches of IDBI as touch points for selling LIC policies, IDBI Bank will get access to a wide network of over 1 lakh employees and 11 lakh agents of LIC. In addition, LIC employees and agents will get access to preferential and value-added banking services from IDBI.
ShareChat, India’s home-grown social media startup, recently banned 50,000 profiles as part of its clean content drive which is an effort to keep the platform clean from pornographic, violent and fake content. The move comes amid backlash from government and users on toxic content that misuses and infests such platforms. ShareChat banned the profiles after running a campaign, encouraging users to identify and report problematic content and users of recently added eastern Indian languages. ShareChat allows users in India to post and communicate in 14 local languages and has a monthly active user base of 35 million.