WikiLeaks founder Julian Assange to plead guilty to the U.S justice dept. File photo
| Photo Credit: AP

WikiLeaks founder Julian Assange will plead guilty in deal with U.S. and return to Australia

WikiLeaks founder Julian Assange will plead guilty to a felony charge in a deal with the U.S. Justice Department that will free him from prison and resolve a long-running legal saga that spanned multiple continents and centered on the publication of a trove of classified documents, according to court papers filed late Monday.

No talks on Teesta water sharing without involvement of Bengal Government, says Mamata Banerjee

West Bengal Chief Minister Mamata Banerjee on June 24 wrote to Prime Minister Narendra Modi saying no discussion on the Teesta river treaty should be taken up with Bangladesh without the involvement of the State Government. She emphasised that if Teesta river water was shared with Bangladesh, lakhs of people in north Bengal would be severely impacted due to inadequate availability of irrigation water.

NEET paper leak: four including 2 teachers booked in Maharashtra

The Maharashtra police have booked four persons, including two zilla parishad teachers, in connection with the National Eligibility-cum-Entrance Test-Undergraduate (NEET-UG) question paper leak case. 

Kuki-Zo groups take out protests in Manipur seeking Union Territory

The Kuki-Zo tribal bodies took out rallies across the hill districts of Manipur calling for the Centre to carve out a Union Territory (UT) for the community, to end the ongoing ethnic conflict in the State. They said a UT with a legislature, as provided under Article 239A of the Constitution, was the solution to the crisis.

BJP to launch nationwide programme to mark anniversary of Emergency, ‘expose Congress authoritarianism’

The Bharatiya Janata Party (BJP) on Monday said that it would launch a nationwide programme on June 25 to mark entering the 50th anniversary of the proclamation of the Emergency in 1975, to “expose” what it termed the “Congress party’s authoritarianism” and “disregard for the Constitution”.

Labour will reset partnership with India, says Shadow Foreign Secretary David Lammy

Days before the U.K.’s general election, the opposition Labour Party’s shadow Foreign Secretary, David Lammy, reiterated that his party would reset its relationship with India. Mr Lammy is all but certain to be the country’s next Foreign Secretary, given that Labour is most likely — as per polls — to form the next U.K. government after the country’s July 4 elections.

A fire at a lithium battery factory in South Korea kills 22 mostly Chinese migrant workers

A fire likely sparked by exploding lithium batteries swept through a manufacturing factory near South Korea’s capital on Monday, killing 22 mostly Chinese migrant workers and injuring eight, officials said.

Kremlin warns U.S. after Ukrainian strike on Crimea

The Kremlin on Monday warned the United States of “consequences” and summoned its Ambassador after Moscow said a Ukrainian strike with a U.S. missile on Crimea killed four persons. Moscow has increasingly blasted Washington and Kyiv’s Western backers for supplying weapons to be fired on Russian targets, calling them direct participants in the two-year conflict.

Legal fraternity may explore Gen AI to reduce errors, enhance efficiency

Generative Artificial Intelligence, or GenAI, is poised to transform the legal profession as many law firms and corporate legal departments are already exploring the GenAI pool, say tech savvy legal professionals and tech experts. Law firms and corporate legal departments are dipping their toes into the GenAI pool, experimenting with tools like ChatGPT and Microsoft’s Copilot, young legal professionals told The Hindu.

India’s current account turns surplus after 10 quarters in Q4 at $5.7 billion

India’s current account balance recorded a surplus of $5.7 billion (0.6% GDP) in Q4 FY24 against a deficit of $1.3 billion (0.2% GDP) a year ago as per data released by the Reserve Bank of India (RBI) on Monday. The merchandise trade deficit at $50.9 billion in Q4 FY24 was lower than $52.6 billion a year ago and Q4 services exports grew 4.1% year-on-year (YoY) on the back of rising software exports, travel and business services, the RBI said.

Everton Tea India eyes new markets to increase sales volume

Everton Tea India Pvt. Ltd. has drawn up plans to increase tea bags production capacity by 20% at its Sri City SEZ unit, near Nellore to cater to the needs of export market, said a top executive. “Currently, we are producing 2.8 million tea bags per day, and it will be increased to 3.6 million tea bags by CY25,” said its General Manager Roshan Gunawardhana during an interaction.

T20 World Cup 2024: Rohit Sharma roars as India merrily marches into semifinal

Rohit Sharma once again elevated the muscular exercise of T20 six-hitting into an aesthetic art form as his 41-ball 92 headlined India’s 24-run win in the final T20 World Cup Super 8 game against Australia at the Daren Sammy Stadium in St. Lucia, on June 24. 

Paris Olympics: India secure team quotas in archery; Deepika Kumari, Tarundeep Rai set for fourth appearances

For the first time in 12 years, India will be sending a full six-member archery contingent to the Olympics, making them eligible to compete in all the five events at the Paris Games. This was made possible after the Indian men and women secured the team quotas based on the updated world rankings on June 24.

India tour of Zimbabwe: Riyan Parag, Abhishek Sharma and Nitish Reddy get maiden call-up in Gill-led team

Shubman Gill will lead a relatively inexperienced India squad for a five-match T20I series in Zimbabwe next month. Four members of the squad — allrounders Abhishek Sharma and Nitish Reddy, middle-order bat Riyan Parag and speedster Tushar Deshpande — have earned a maiden India call-up.

The benchmark Sensex has gained more than 5,000 points since the announcement of the Lok Sabha election results on June 4 amid a rally in the broader market. On a monthly scale, the 30-share Sensex is up nearly 5% in June. 

The Sensex extended the rally for the sixth consecutive day to trade at 77,475.08, up 137.48 points (0.18%), at 3:15 pm on Thursday. 

This rally is being powered by the improvement in investor sentiment on expectations of political stability, policy continuity, solid economic growth, a healthy monsoon and easing inflation.

The volatility in the market around the poll results day was triggered by a sharp selloff by foreign institutional investors (FIIs).

 According to data available with NSDL, FPIs sold Indian equities worth ₹25,586 crore in May. However, they invested in Indian debt and debt-VRR instruments during the month. So, the FPI net outflow was ₹12,911 crore last month.

The trend has reversed now. FPIs have invested about ₹12,873 crore in the stock market in June so far, indicating a positive outlook for the economy.

The focus of the market is now on the upcoming Budget and policy decisions. Even though there may be short-term volatility, experts are positive about the equity market for the medium to long term amid easing inflation, above-normal monsoon forecast and prospects of the start of the rate cut cycle by the end of the year.

There remain concerns over the premium valuation of the market. Sensex is now at a record-high level amid the absence of any fresh trigger. Currently, at 23.5, the index’s price-to-earnings ratio (PE) is just slightly below its one-year average PE of 24.

The mid and smallcap segments are even hotter and many analysts see froth building in the space. The BSE Smallcap index is up 10%, while the BSE Midcap index has gained over 7% in June so far.

A lot will depend on what the government reveals in the Union Budget. The government is expected to keep its focus on fiscal consolidation and capital expenditure on infra, construction and manufacturing schemes which will give a boost to the economy and generate employment.

The upcoming earnings season and macroeconomic prints will also be closely observed as they will determine whether the current market valuation is justified or not.

Eleven funds, under the Qualified Domestic Limited Partner programme, have been launched so far this year. File
| Photo Credit: Reuters

Global fund launches in China have hit a record as a weakening yuan and fragile economy drive demand for foreign assets, in the latest sign of low confidence among domestic investors.

Eleven funds issued under the Qualified Domestic Limited Partner (QDLP) programme have been launched so far this year, according to data by Z-Ben Advisors, already outpacing the full-year number from any previous year.

Managers such as Blackstone, Bridgewater Associates, and Oaktree Capital Management have opened funds, though they did not disclose total fundraising.

The products, which raise money from high net worth and institutional investors and invest in overseas assets, are booming as Chinese markets flounder. The yuan is at six-month lows on the dollar, the stock market shows signs of fatigue after a rebound from 5-year lows struck in February and benchmark 10-year government bond yields have hit record lows.

“Investors’ demand for offshore products have been rising quickly this year due to a weak yuan and sentiment,” said Ivan Shi, head of research at Shanghai-based Z-Ben Advisors, adding alternative investments and foreign bonds are popular.

In April, Blackstone launched its first QDLP fund, channeling money to the firm’s Private Equity Strategies fund.

The initial sales target of $40 million was reached in less than two weeks, according to two people familiar with the matter. Blackstone declined to comment. Market participants say Chinese authorities are largely encouraging the sector and more products are on the way.

New Delhi:

Real estate developers and RWAs will be liable to pay 18 per cent GST on electricity bills if they charge from flat owners more than the power tariff prescribed by Discoms.

The Central Board of Indirect Taxes and Customs (CBIC) has issued a clarification on the applicability of GST on reimbursement of electricity charges received by real estate companies, malls, airport operators etc from their lessees/occupants.

As per the clarification, where electricity is supplied by the real estate owners, resident welfare associations (RWAs), real estate developers etc as a pure agent, it will not form a part of the value of their supply.

It further said where they charge for electricity on an actual basis that is, they charge the same amount for electricity from their lessees or occupants as charged by the state electricity boards or Discoms, they will be deemed to be acting as ‘pure agent’ for this supply, and hence GST will not be levied.

The CBIC clarification came after doubts were raised on the applicability of GST on the electricity supply by real estate companies, malls, airport operators etc to their lessees or occupants.

It is clarified that whenever electricity is being supplied bundled with renting of immovable property and/or maintenance of premises, as the case may be, it forms a part of the composite supply and shall be taxed accordingly.

The principal supply is renting of immovable property and/or maintenance of the premise, as the case may be, and the supply of electricity is an ancillary supply as the case may be.

“Even if electricity is billed separately, the supplies will constitute a composite supply, and therefore, the rate of the principal supply i.e. GST rate on renting of immovable property and/or maintenance of premise, as the case may be, would be applicable,” the CBIC said.

However, where the electricity is supplied by the real estate owners, RWAs, real estate developers etc as a ‘pure agent’, it will not be considered as a supply, and hence no tax will be levied, it added.

AMRG & Associates Senior Partner Rajat Mohan said the CBIC has provided clarification regarding the tax treatment of electricity supply when bundled with the rental of immovable property and/or maintenance of premises.

“In such cases, this arrangement is considered a composite supply and is subject to a tax rate of 18 per cent. It is important to note that billing for electricity separately will not neutralise the tax liability,” Mohan said.

However, when electricity is supplied by developers and RWAs in the capacity of a “pure agent,” it will be exempt from taxation.

“It is worth mentioning that this clarification may not offer relief to every taxpayer, as the conditions specified in the ‘pure agent’ rules are quite stringent. Moreover, the detailed breakdown of various components within electricity bills, especially in a large apartment community setting, can be complex and challenging,” Mohan added.

EY Partner Saurabh Agarwal said the recent clarification issued by the CBIC has raised significant concerns within the real estate sector.

“Going forward, the said clarification may lead to an increase in the rental cost, as landlords may factor the GST cost on electricity when determining lease rental amounts,” Agarwal said.

In cases where real estate companies convert high-tension lines to low-tension lines and charge higher rates due to transmission loss, the implications of this clarification remain a point of concern.

“This clarification provides the tax department with a basis to address previous issues and potentially issue new notices to landlords who have not charged GST on electricity reimbursements,” Mr Agarwal added.
 

New Delhi:

GST collections increased 13 per cent to Rs 1.72 lakh crore in October, the second highest-ever, helped by momentum in the economy, efforts of taxmen in checking evasion and festive demand.

“GST revenue collection for October 2023 is second highest ever, next only to April 2023, at Rs 1.72 lakh crore; records increase of 13 per cent Y-o-Y,” the finance ministry said in a statement.

The highest-ever revenue from Goods and Services Tax (GST) was recorded in April 2023 at Rs 1.87 lakh crore, while in September, it was Rs 1.63 lakh crore.

The average gross monthly GST collection in the current fiscal has also shown an 11 per cent growth year-on-year at Rs 1.66 lakh crore.

Icra Chief Economist Aditi Nayar said GST collections benefited from quarter-end adjustments related to transactions in the previous month and the overall momentum in the economy.

“With this, the pace of YoY growth jumped to a 10-month high in October 2023, which is encouraging. At present, we project the CGST collections to mildly exceed the FY2024 BE,” Ms Nayar said.

During October, revenue from domestic transactions was 13 per cent higher year-on-year.

The gross GST revenue collected in October 2023 is Rs 1,72,003 crore, out of which Rs 30,062 crore is Central GST, Rs 38,171 crore is State GST, Rs 91,315 crore (including Rs 42,127 crore collected on import of goods) is Integrated GST, and Rs 12,456 crore (including Rs 1,294 crore collected on import of goods) is cess.

The government has settled Rs 42,873 crore to CGST and Rs 36,614 crore to SGST from IGST.

The total revenue of the Centre and states in October after regular settlement is Rs 72,934 crore for CGST and Rs 74,785 crore for SGST.

NA Shah Associates Partner, Indirect Tax Parag Mehta said one of the reasons for the rise in collection is the time barring period for the 2017-18 fiscal.

“Spate of notices, anti-evasion drive, DGGST investigations etc. have led to substantial collections. Further, the period from September to December is a festive period where consumer spending is substantial on high-value items like real estate, vehicles, gold, and travel.

“The collections are bound to increase substantially again with the annual returns etc. for FY 2022-23 being filed,” Mr Mehta said.

Deloitte India Partner MS Mani said the remarkable growth in GST collections over the past few months is not only on account of the underlying strong economic factors but also due to the efforts of the tax authorities in deploying tools to compare data sets to determine short payment and evasion.

KPMG Indirect Tax Head and Partner Abhishek Jain said a mid-year collection of such an increased number is definitely worth a cheer, and the ongoing festivities-driven consumption could help this continue.

EY Tax Partner Saurabh Agarwal said with the stable collection, the government can now consider rate rationalisation as the next task.
 

New Delhi:

Apple, Dell, HP, Samsung and Lenovo are among 110 firms authorised by India to import laptops, tablets and personal computers under a new system aimed at monitoring shipments, two government sources said.

Acer, Xiaomi, IBM and ASUS have also been issued import authorisations, the two sources said, under India’s new “import management system” effective from Wednesday.

India announced the new system for laptops, tablets and personal computers last month after it rolled back an earlier plan to impose a licensing regime, following criticism from the industry and Washington.

Companies must register the quantity and value of imports on a portal, with an authorisation valid until September 2024.

India’s union trade ministry did not immediately respond to a request for comment. The sources declined to be named as details of the authorisations have not yet been made public.

New Delhi:

In a significant move, the government has permitted Indian companies to list on foreign exchanges, subject to certain conditions.

The corporate affairs ministry has notified the relevant section under the companies law in this regard.

Currently, overseas listings by local listed entities are carried out through American Depository Receipts (ADRs) and Global Depository Receipts (GDRs).

“In exercise of the powers conferred by sub-section (2) of section 1 of the Companies (Amendment) Act, 2020 (29 of 2020), the Central Government hereby appoints the 30th day of October 2023 as the date on which the provisions of section 5 of the said Act shall come into force,” the ministry said in a notification on October 30.

The rules for direct overseas listing of Indian companies are yet to be notified.

Section 5 allows certain classes of public companies to list their securities on permitted stock exchanges in permissible foreign jurisdictions or such other jurisdictions, as may be prescribed.

On October 13, a senior government official said the ministry was looking at various aspects, including the possible eligibility criteria, to prepare the rules for the direct overseas listing of companies.

On July 28, Finance and Corporate Affairs Minister Nirmala Sitharaman said the government has decided to allow domestic companies to list overseas to help them access capital from the world markets.

In May 2020, the move was announced as part of the Covid relief package.

A senior government official, on July 28, said that initially, the plan is to allow companies to list at the International Financial Services Centre in GIFT City, Ahmedabad, and later, they can list in any of the eight to nine specified overseas jurisdictions.

The Securities and Exchange Board of India (Sebi) had previously recommended a framework within which such direct listing will be facilitated, and it is expected that the Sebi framework will be the basis for future regulation in this area.

Sebi had proposed allowing listings on stock exchanges in ten “permissible jurisdictions” with strong anti-money laundering regulations, including the NYSE, Nasdaq, the LSE and Hong Kong, along with other major exchanges in Japan, South Korea, France, Germany, Switzerland and Canada.
 

New Delhi:

The government on Saturday imposed a minimum export price (MEP) of USD 800 per tonne on onion exports till December 31 this year with a view to increase availability of the vegetable in the domestic market and contain prices.

The decision will come into effect from October 29.

Besides, the government has also announced the procurement of additional 2 lakh tonnes of onion for the buffer, over and above the 5 lakh tonnes already procured.

The MEP is there for all varieties of onion except Bangalore Rose and Krishnapuram onions; and for cut, sliced, or broken in powder forms.

“Exports of onions is free. MEP of USD 800 FOB (free on board) per tonne is imposed till December 31, 2023,” the Directorate General of Foreign Trade said in a notification.

An official statement said that the step will help in maintaining sufficient availability of onion to domestic consumers at affordable prices as the quantity of stored Rabi 2023 onion is declining.

The USD 800 per tonne MEP translates into about Rs 67 per kg.

Onion from the buffer has been disposed continuously since the second week of August in major consumption centres all over the country, and also supplied to retail consumers at Rs 25 per kg through mobile vans operated by NCCF and NAFED.

“Till date about 1.70 lakh metric tonne of onion has been disposed from the buffer. The continuous procurement and disposal of onion from the buffer are undertaken to moderate the prices for consumers while ensuring remunerative prices to the onion farmers,” the statement said.

The DGFT notification added that certain onion consignments will be allowed to be exported without MEP and that included consignments that have been handed over to the Customs before this notification and is registered in their system.

Onion consignment that has entered the Customs station for exportation before this notification and is registered in the electronic systems of the concerned custodian of the Customs station with verifiable evidence of date and time stamping of these commodities having entered the customs station prior to the issuance of this notification is also permitted to be exported.

It added that export duty will not be refunded, if paid.

Onion prices have further risen to Rs 65-80 per kg in the retail market of the national capital on lower supply.

Mother Dairy, which has around 400 Safal retail stores in Delhi-NCR, is selling loose onions at Rs 67 per kg. E-commerce portal Bigbasket is selling at Rs 67 per kg, while Otipy at Rs 70 per kg.

Local vendors are selling onions at Rs 80 per kg.

Mother Dairy was selling onions at Rs 54-56 per kg on Wednesday and now the rates have touched Rs 67 per kg.

With the rise in retail prices, the Centre on Friday decided to step up the sale of buffer onion at a subsidised rate of Rs 25 per kg in retail markets in order to provide relief to consumers.

According to the Department of Consumer Affairs data, on Saturday the all-India average retail price of onion is Rs 45 per kg, but the maximum price is Rs 80 per kg. In Delhi, the average price is ruling at Rs 75 per kg.

According to the ministry, onion is being offloaded from the buffer stock in both wholesale and retail markets in those states where there is a sharp rise in prices.

Since mid-August, about 1.7 lakh tonnes of buffer onion has been offloaded in 22 states at different locations.

In retail markets, buffer onion is being offloaded through two cooperative bodies NCCF and NAFED outlets and vehicles at a subsidised rate of Rs 25 per kg.

In Delhi too, buffer onion is being sold at this subsidised rate.

A senior government official said the delay in kharif onion sowing due to weather reasons has resulted in less coverage and late arrival of the crop.

The fresh kharif onion should have started arriving by now but it has not.

With stored rabi onion getting exhausted and due to delay in the arrival of the kharif onion, there is a tight supply situation, resulting in price increases in both wholesale and retail markets, the official added.

He also mentioned that the government has doubled the buffer onion stock for the current year and this should improve domestic availability and check prices in the coming days.

For the 2023-24 fiscal year, the consumer affairs ministry through NCCF and NAFED has maintained a buffer onion stock of 5 lakh tonnes and plans to procure an additional 2 lakh tonnes of onion in the coming days.

New Delhi:

Public sector lender Punjab National Bank (PNB) today reported a 327 per cent jump in net profit to Rs 1,756.13 crore in the September quarter – the highest in the previous 14 quarters – on the back of higher interest income and improved credit quality.

The bank’s net interest income grew about 20 per cent to Rs 9,923 crore during the second quarter of current fiscal, while operating profit grew 12 per cent to Rs 6,216 crore.

Punjab National Bank MD & CEO Atul Kumar Goel said credit cost will reduce in the coming quarters and profitability of the bank will increase.

The net interest income, net profit, and operating profit are highest in the past 14 quarters, he said.

“RAM (Retail, agri and MSME sectors) will be the focus areas of PNB. In the first half of current fiscal (Apri-September), we achieved a profitabiity of over Rs 3,000 crore.

“I am hopeful that we will be able to maintain the same profitability in the third and fourth quarters,” Goel told reporters here.

The bank will open 100-150 new branches in the current fiscal, he added.

Goel further said there is no stress on the bank’s retail loan portfolio.

The portfolio, which includes vehicle, education and personal loans, stands at Rs 2.18 lakh crore. Of this, Rs 25,770 crore is unsecured loan, including Rs 17,467 crore of personal loan.

Of the Rs 17,467-crore unsecured personal loan, Rs 4,056 crore is through digital mode.

“From our side, there is no worry on unsecured personal loans… We are monitoring our loan portfolio every fortnight and if we see any sign of sickness or delinquency in personal loan, we do a root cause analysis,” Goel said.

RBI Governor Shaktikanta Das had earlier this month flagged strong growth in personal loans and said the RBI is closely monitoring the same for any signs of incipient stress.

There were reports that the banking regulator is concerned about the high growth in unsecured loans like credit cards, personal loans and microfinance, which has led to speculation on whether it will follow up with regulations to discourage such growths.

Goel said the provisioning requirement of the bank will reduce in times to come.

The bank’s provisioning declined to Rs 3,444 crore during the quarter under review, from Rs 4,906 crore in the year-ago period.

Gross NPAs as percentage of total loans declined to 6.96 per cent at the end of September, from 10.48 per cent last year.

The bank aims to bring down gross NPA to 6 per cent by March 2024, Goel said.

Net NPA is targeted to be brought down to below 1 per cent by the fiscal-end, from 1.47 per cent at present.

Goel further said the fiscal-end target of 12-13 per cent credit growth will be achieved. PNB had a 13.8 per cent credit growth in the first half of the fiscal.

He said the bank has the board’s approval for raising Rs 12,000 crore of capital.

“Of this, we have already raised Rs 6,090 crore. We do not have any immediate requirement of capital raising,” Goel added.

Shares of PNB closed at Rs 69.81 on Thursday, up 0.52 per cent over the previous close on the BSE.
 

Mumbai:

Sliding for the sixth straight session, equity benchmark Sensex today plunged about 900 points to crash below the 64,000 level due to an across-the-board selloff amid heightened tension in the Middle East.

Besides sluggish trends in global markets, deep losses in auto, financial and energy stocks as well as fresh selling by foreign investors added to the gloom, analysts said.

The 30-share BSE Sensex slumped 900.91 points or 1.41 per cent to settle below the 64,000 mark at 63,148.15. During the day, it plummeted 956.08 points or 1.49 per cent to 63,092.98.

The Nifty dived 264.90 points or 1.39 per cent to 18,857.25.

Since October 17, the BSE benchmark has tumbled 3,279.94 points or 4.93 per cent, while the Nifty fell 954.25 points or 4.81 per cent.

Mahindra & Mahindra was the biggest loser in the Sensex pack, falling 4.06 per cent, followed by Bajaj Finserv, Asian Paints, Nestle, Bajaj Finserv, JSW Steel, Titan, HDFC Bank, Tech Mahindra, Tata Motors and Larsen & Toubro.

In contrast, Axis Bank, ITC, HCL Technologies, NTPC and IndusInd Bank were the gainers.

In Asian markets, Seoul, Tokyo and Hong Kong settled lower, while Shanghai ended in the green.

European markets were trading with significant losses. The US markets ended in negative territory on Wednesday.

Global oil benchmark Brent crude declined 0.65 per cent to USD 89.54 a barrel.

Foreign Institutional Investors (FIIs) offloaded equities worth Rs 4,236.60 crore on Wednesday, according to exchange data.

The BSE benchmark tanked 522.82 points or 0.81 per cent to settle at 64,049.06 on Wednesday. The Nifty fell 159.60 points or 0.83 per cent to 19,122.15.