Morning Scan: All the big stories to get you started for the day

To boost liquidity, SEBI plans T+1 Settlement
The SEBI is relooking its plans to bring in the T+1 settlement system, The Economic Times reported.

Why it's important: The new plan will increase trade turnover and liquidity in the market.
It's a faster way of settling trade than the existing T+2.
A new body has been set up with officials from exchanges, clearing corporations and depositories to study the proposal.
A quicker settlement has the potential to increase trade turnover and liquidity as well as cutting risks.
Indian markets and major other global markets are following the T+2 settlement system.
But the US is planning to shift to T+1 by 2023.

'It’s time to be cautious, not scared'
Prashant Jain, CIO, HDFC Mutual Fund, told The Economic Times in an interview that it is better to be more selective rather than just limiting exposure to small- and mid-caps.

What he says:
"Heightened retail interest in capital markets is generally associated with excessive market conditions.
The low cost of capital is both a source of buoyancy in capital markets world over and a key risk.
I would say the capital markets are flashing yellow-amber. It is time to be cautious but not scared.
Given the improving growth and profits outlook, low interest rates, no large excesses in valuations — especially in large caps — I feel over time markets are likely to yield higher than fixed income returns.
It is advisable to not just limit exposure to small and mid-caps but also be more selective."

Before the launch, India 4th largest market for 5G phones
India is yet to launch 5G services but the country is considered as the fourth largest market for 5G phones, The Economic Times reported.

Why it's important: India is just behind only China, the US and Japan in terms of shipments in April-June 2021.
India's telcos are still working on networks that support 5G.
The government is yet to auction the required airwaves for 5Gs and it is not due until next year.
India expects to bring around 25 million to 40 million 5G smartphone shipments by this year-end.

RBI plans new regulations for 'round tripping'
The RBI is planning to launch a set of new regulations for “round tripping”,The Economic Times reported.

Why it's important: This has prompted several companies, startups, MNCs put their outbound investment, fundraising, rejig plans on hold for clarity.
But some say it may create more complications.
The new plans may contain provisions similar to GAAR under tax regulations.

Tata Motors eyes PE funds for EV business
Tata Motors Ltd is in talks with private equity funds to raise around $1 billion for its new electric vehicles businesses, Mint reported.

Why it's important: The early-stage talks are going on with Blackstone Group, TPG Capital and KKR & Co.
Tata Motors is transferring its EV portfolio into a new unit with Rs 9,417 crore valuations.
Tata Motors is the largest EV maker in the country, with the Nexon EV, Tigor EV and Altroz hatchback in the kitty and plans to launch 10 EV models in four years.

Tech firms get investors fancy with huge pre-IPO funds
Indian investors are pumping money into pre-IPO funds to get a pie of major technology companies, Mint reported

Why it's important: This is because these pre-IPO funds allow investors to enter big tech companies before the IPOs that create huge value creation.
The tech sector is getting stronger in the stock markets with Zomato’s listing and Paytm, Mobikwik, Nykaa and PolicyBazaar are waiting in the pipeline.
Edelweiss Wealth Management’s Crossover Opportunities Fund raised Rs 1,500 crore so far and expects Rs 7,500 crore in the next 12-18 months.
Trifecta Capital has raised Rs 1,000 crore for pre-IPO venture capital fund.
Kotak Investment Advisors has raised Rs 1,386 crore.
IIFL Wealth is eyeing Rs 2,000 crore for its pre-IPO fund that will focus on tech companies.

Demand for retail IPOs down 64 percent this week
The four IPOs launched this week managed to garner only a third of retail applications compared with last week, Business Standard reported.

Why it's important: This is mainly because of a paucity of funds rather than waning interest in the primary market.
It is also because a huge sum was blocked in last week’s IPOs.
This week, IPOs of CarTrade Tech, Aptus Value, Nuvoco Vistas, and Chemplast Sanmar were subscribed between 1.7 times (x) and 20.3x and attracted cumulative applications of 3.74 million.
In the last week, IPOs of Devyani International, Krsnaa Diagnostics, Exxaro Tiles, and Windlas Biotech, had seen subscriptions between 22.5x and 117x, with over 10-million applications.

Cairn tax deal may depend on Vedanta case in Singapore
The Centre's plan to settle the Cairn Energy retro tax case is likely dependent on Vedanta withdrawing the arbitration from the Singapore Tribunal on the same issue, Business Standard reported.

Why it's important: Vedanta has sought damages around Rs 5,000 crore in Singapore due to the Rs 10,250-crore tax notice to its former subsidiary Cairn India.
The government has offered to refund Cairn Energy Rs 7,900 crore that it had collected under the retrospective tax under certain conditions such as withdrawing arbitration in Singapore.