A round-up of the biggest articles from newspapers.
DoT gets legal opinion to settle spectrum disputes out of court
The Department of Telecommunications is planning to settle cases such as those over one-time spectrum charges out of court, The Economic Times reported.
Why it’s important: The DoT has got a legal opinion in this regard saying it has administrative powers to do so.
The move is part of the Centre that wants to end all major legal disputes with telecom operators as it tries to help rebuild the sector into a profitable one.
But the department has received sums from various telcos toward OTSC.
And now, the DoT is looking into what bearing the out-of-court settlements may have on these amounts it has already collected.
Sebi steps up watch on sudden changes in companies as part of stock window dressing
The Sebi has plans to beef up its surveillance on companies indulging in window dressing to pump and dump stocks The Economic Times reported.
Why it’s important: It has asked stock exchanges to keep a close watch on all companies going for sudden changes.
The stock exchanges asked to track any misstatement in financial results, sudden change in accounting policies, the resignation of key managerial personnel, a sharp jump in profits ahead of fundraising or any other corporate announcements meant to push up the stock prices.
Sebi had already formed Corporation Finance Investigation Department to monitor such cases.
Sebi stepped up the scrutiny as the economic activity picked up and many penny stocks are hyperactive.
Adani eyes ARC business to buy stressed assets in infra, real estate
Adani Group is mulling to set up an asset reconstruction company (ARC), Mint reported.
Why it’s important: The new ARC will acquire distressed assets in infrastructure and real estate.
It has already applied for a licence from the RBI to open an ARC.
The ARC will purchase bad loans in distressed companies where the group has a strategic interest.
Companies on a stock-split spree to tap retail frenzy
Several of the companies in the country are going on for a stock split to leverage the market rally, Mint reported.
Why it’s important: 48 companies have already gone for the stock split in the 10 months to October.
The latest notable entry in the list is IRCTC.
Last month, 18 firms went for stock splits, compared to 11 in the preceding two months combined.
This is already a three-year high, with two months to go.
Last year, just 25 companies went for stock splits, and in 2019, 29 moved ahead with stock splits.
Pension, sovereign wealth funds show an appetite for infra investments in India
The tax exemption extended till March 2024 on overseas investments, though with riders, has made several wealth funds to look at India for better returns, Mint reported.
Why it’s important: US pension fund School Employees Retirement System of Ohio is the latest among more than a dozen foreign investors to get income tax exemption for infrastructure investments in India.
The investor has to file income tax returns and maintain segmented accounts of income and expenditure regarding the investments made.
The relief is given under Section 10 of the Income Tax Act, which deals with earnings not to be included in the taxable income.
The move will help India’s infrastructure sector at a time the government is betting on its multiplier effect to support economic growth.
Govt unlikely to meet disinvestment target: TV Somanathan
Finance Secretary TV Somanathan in an interview with Business Standard said that the Budget is being made in the context of an economy that is rapidly recovering from the effects of the pandemic.
What he says: The rate of economic growth next year could approach that of 2018-19 and earlier years.
The Federal Reserve tapering will have an impact on our monetary policy, exchange rate and many more things.
High commodity prices can offset many plans.
The sale of equity in LIC is quite likely to happen this financial year.
The disinvestment target of Rs 1.75 trillion this fiscal is unlikely to be achieved, mainly because we lost two quarters to Covid.
OIL looking at increasing crude output in next three years: CMD
Oil India (OIL) chairman and managing director Sushil Chandra Mishra in an interview with Business Standard says the company is planning to pay off all long-term debt it had raised for acquiring a controlling stake in Numaligarh Refinery (NRL) if the current crude oil price rally sustains.
What he says:
OIL has plans to increase total crude oil output from 3 MTPA to 4 MTPA by 2023-24.
In natural gas, the focus is to increase output from 7-7.5 million metric standard cubic meter per day to 12 MMCMD.
OIL has 25 blocks (of the 105 awarded) through the OALP bid rounds with the total area of OIL to 58,000 sq. km.
Plan to begin drilling during April 2022 in the Mahanadi basin.
Accelerated drilling in the Northeastern region has started now.
OIL has Rs 2,000 crore of long-term debt. Only Rs 1,100 crore of short-term debt is left. OIL is hopeful to clear it by February-March 2022.
The next big focus will be the city gas grid in the North East.
Paytm allots Rs 8,235-cr worth shares to anchor investors
Paytm allotted Rs 8,235 crore worth of shares to anchor investors, Business Standard reported.
Why it’s important: The move is part of its Rs18,300-crore IPO, which opens on Monday.
This is the largest-ever allotment made in the anchor category.
The anchor round was subscribed 10 times by 74 investors.
Paytm’s top eight anchor investors have invested more than any fund has ever done in an Indian IPO anchor round.
BlackRock (Rs 1,045 crore), Canada Pension Plan Investment Board (Rs 938 crore), Birla MF (Rs 555 crore), and GIC (Rs 533 crore) were the biggest investors in the round.