Business & Finance
Business Today

Business Today 7-Oct-2018

A leading business magazine read by the business leaders for staying ahead and managing challenges that comes right away in the ever changing world of business.

Living Media India Limited
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26 Issues

in this issue

2 min.
kingdom gone

OVER THE NEXT few years, a number of entrepreneurs, who had shot to prominence over the past decade and a half, will either have lost their entire businesses or will see their empires shrink dramatically in size, after losing many of their companies. They will see their prized possessions either auctioned off or liquidated under the Insolvency and Bankruptcy Code. Their aggrieved lenders, with a little bit of prodding from the Reserve Bank of India (RBI), would have already taken them to the National Companies Law Tribunal (NCLT) for bankruptcy proceedings. For many tycoons, the process is already under way. Some others may see their firms going to the NCLT soon, unless they find the money to repay the banks. Thus the Ruias of Essar will lose their flagship Essar Steel,…

1 min.

STAY CONNECTED WITH US ON www.facebook.com/BusinessToday@BT_India PERSPECTIVES PM Modi Talks About Electric Cars But No Word on FAME 2 In the last 18 months, the government has been making only noises about a swift transition from internal combustion engines to battery-operated vehicles businesstoday.in/electriccars-fame2 Why Jan Dhan Is Critical to Modi’s Plans PMJDY scheme is meant to promote financial inclusion and provide at least one bank account per household across the country in four years businesstoday.in/pmjdy-operation Rajan’s Prescription to Stave Off Bad Loans Lost in ‘Political’ Translation The former RBI governor, Raghuram Rajan, had listed out the key reform areas to prevent recurrence of bad loans that the banking system is currently grappling with businesstoday.in/rajan-prescription NEWS More Rules Likely to Flush Out ‘Shell’ Companies The government’s move is to ensure that companies maintain a registered office to prevent the existence of paper companies businesstoday.in/shellcompanies-rules Floods Wash…

1 min.
future uncertain

EXACTLY 10 years since the collapse of Lehman Brothers, the recent recovery in the US and world economy is equally overshadowed by the growing unease over what the future holds in store. By all accounts, the world economy is nearly as precariously poised – if not more – as it was right after the Lehman collapse. The biggest fear revolves around the ultimate outcome when the ongoing tariff war between the US and China reaches its logical conclusion. Rising tariff barriers have truly enveloped the world economy as countries have imposed retaliatory tariffs, including Europe and several US allies. If this continues for long, it has the potential to slow down and practically disable global supply chains and world trade. Nobody knows for sure where this is headed. The second big fear…

1 min.
knee-jerk reaction

THE GOVERNMENT has made a slew of announcements -- including removal of limits on foreign portfolio investor (FPI) exposure to corporate bonds and curbs on import of non-essentials goods -- to check depreciation of rupee and ballooning current account deficit (CAD). Will this knee-jerk reaction help in the short term? The jury, it seems, is out. Economists say India’s CAD problem is structural. They say most nonpetroleum imports are now consumption-driven and any curb can only impact consumption and increase inflation. Besides, the protectionist measures will not go down well with investors and rating agencies. The only hope is oil prices taking a breather. The other measures to check the rupee fall -- which include incentivising issuance of rupee-denominated masala bonds and FPI investments in corporate bonds -- may also not make…

1 min.
circular spooks fpis

Market regulator Sebi did well to promptly address concerns around its earlier circular that barred NRIs and Persons of Indian Origin from being Beneficial Owners (BO) in FPI funds investing in India. If the Sebi accepts the HR Khan panel’s proposals, the concept of BO will only be applied to KYC norms while NRIs will be allowed to invest up to 25 per cent single-handedly and 50 per cent in concert in FPI funds. If misuse of the FPI route is to be tackled, the BO declaration should take care of it, but a blanket ban would result in huge financial losses. Lobby group AMRI (Asset Management Roundtable of India) estimated $75-billion funds could move out from Indian shores if the Sebi circular was enforced. At a time when the…

1 min.
rbi gets tough

THE RESERVE BANK of India nod to appointing Amitabh Chaudhary as the next MD and CEO of Axis Bank, after Shikha Sharma had to opt for a hasty exit, comes with a clear underlying message. Banks and their leadership – CEOs as well as boards, need to improve performance and justify their employment. “The boards have been mechanically approving extensions and re-appointments for the top brass,” a market expert said. When the RBI told the Axis Bank board to reconsider reappointing Sharma, the message on performance was clear. Subsequently, the regulator asked Yes Bank CEO, Rana Kapoor to continue until further notice. One hopes that bank boards will be more proactive now rather than needing the regulator to step in all the time.…