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CMYK
M ND-NDE
BUSINESSEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEE
THE HINDU DELHI
THURSDAY, SEPTEMBER 12, 2019 15EEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEE
NIFTY 50
PRICE CHANGE
Adani Ports. . . . . . . . . . . . . . . . . . . 373.35. . . . . . . . . 3.80
Asian Paints. . . . . . . . . . . . . . . . 1561.45. . . . . . . 20.85
Axis Bank . . . . . . . . . . . . . . . . . . . . . . 681.70. . . . . . . 10.15
Bajaj Auto . . . . . . . . . . . . . . . . . . . 2908.40. . . . . . . 90.60
Bajaj Finserv. . . . . . . . . . . . . . . 7354.20. . . . . . . 30.25
Bajaj Finance . . . . . . . . . .. . . . 3416.40. . . . . . -20.95
Bharti Airtel . . . . . . . . . . . . . . . . . 355.10. . . . . . . . -1.35
BPCL. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 386.10. . . . . . . . . 4.10
Britannia Ind . . . . . . . . . .. . . . 2666.40. . . . . . -16.30
Cipla . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 471.80. . . . . . . . -3.20
Coal India . . . . . . . . . . . . . . . . . . . . . 196.70. . . . . . . . -2.65
Dr Reddys Lab . . . . . . . .. . . . 2761.00. . . . . . . 11.80
Eicher Motors. . . . . . . . .. 17013.65. . . . . 806.90
GAIL (India). . . . . . . . . . . . . . . . . . 128.45. . . . . . . . -3.70
Grasim Ind . . . . . . . . . . . . . . . . . . . . 711.50. . . . . . . . . 5.75
HCL Tech. . . . . . . . . . . . . . . . . 0 . . 1057.70. . . . . . -26.70
HDFC . . . . . . . . . . . . . . . . . . . . . . . . . . . 2071.85. . . . . . . . . 7.60
HDFC Bank. . . . . . . . . . . . . . . . . . 2251.30. . . . . . . . . 1.70
Hero MotoCorp . . . . . .. . . . 2760.15. . . . . . . 68.55
Hindalco . . . . . . . . . . . . . . . . . . . . . . . 193.45. . . . . . . . . 4.20
Hind Unilever . . . . . . . . .. . . . 1824.30. . . . . . . . -9.75
Indiabulls HFL . . . . . . . .. . . . . . 431.45. . . . . . . . . 6.85
ICICI Bank . . . . . . . . . . . . . . . . . . . . . 394.60. . . . . . . . -0.85
IndusInd Bank . . . . . . . .. . . . 1372.15. . . . . . . 37.15
Bharti Infratel . . . . . . . .. . . . . . 253.20. . . . . . . . . 0.25
Infosys . . . . . . . . . . . . . . . . . . . . . . . . . . 820.10. . . . . . . . -9.00
Indian OilCorp . . . . . . . .. . . . . . 126.05. . . . . . . . -0.60
ITC . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 243.75. . . . . . . . -1.75
JSW Steel. . . . . . . . . . . . . . . . . . . . . . 227.70. . . . . . . . . 8.20
Kotak Bank . . . . . . . . . . . . . . . . . 1475.20. . . . . . . . . 3.90
L&T . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1363.65. . . . . . . . . 6.65
M&M . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 545.75. . . . . . . 13.20
Maruti Suzuki . . . . . . . . .. . . . 6597.30. . . . . 261.80
NTPC . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 124.50. . . . . . . . -1.85
ONGC . . . . . . . . . . . . . . . . . . . . . . . . . . . . 125.75. . . . . . . . -3.65
PowerGrid Corp . . . . .. . . . . . 201.40. . . . . . . . -1.50
Reliance Ind . . . . . . . . . . . . . . . 1234.40. . . . . . . 12.20
State Bank . . . . . . . . . . . . . . . . . . . . 285.25. . . . . . . . . 7.25
Sun Pharma . . . . . . . . . . . . . . . . . . 422.20. . . . . . . . -6.60
Tata Motors . . . . . . . . . . . . . . . . . . 134.35. . . . . . . 12.45
Tata Steel . . . . . . . . . . . . . . . . . . . . . 367.05. . . . . . . 13.25
TCS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2154.00. . . . . . -28.85
Tech Mahindra . . . . . . .. . . . . . 703.70. . . . . . . . -9.20
Titan . . . . . . . . . . . . . . . . . . . . . . . . . . . 1101.05. . . . . . . 12.70
UltraTech Cement. .. . . . 3903.40. . . . . . . . -2.20
UPL. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 577.70. . . . . . . . -9.75
Vedanta . . . . . . . . . . . . . . . . . . . . . . . . 146.30. . . . . . . . . 5.05
Wipro . . . . . . . . . . . . . . . . . . . . . . . . . . . . 248.15. . . . . . . . -7.45
YES Bank. . . . . . . . . . . . . . . . . . . . . . . . . 71.60. . . . . . . . . 8.50
Zee Entertainment . . . . . . 354.45. . . . . . . . -8.50
EXCHANGE RATES
Indicative direct rates in rupees a unitexcept yen at 4 p.m. on September 11
CURRENCY TT BUY TT SELL
US Dollar . . . . . . . . . . . . . . . . . . . .. . 71.45. . . . . . . 71.77
Euro . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . 78.61. . . . . . . 78.97
British Pound. . . . . . . . . . . . .. . 88.22. . . . . . . 88.63
Japanese Yen (100) . .. . 66.34. . . . . . . 66.63
Chinese Yuan . . . . . . . . . . . . .. . 10.04. . . . . . . 10.09
Swiss Franc . . . . . . . . . . . . . . . .. . 71.87. . . . . . . 72.19
Singapore Dollar . . . . . . .. . 51.79. . . . . . . 52.02
Canadian Dollar. . . . . . . . .. . 54.35. . . . . . . 54.60
Malaysian Ringitt . . . . . .. . 17.10. . . . . . . 17.20
Source:Indian Bank
market watch
11-09-2019 % CHANGE
Sensex dddddddddddddddddddddd 37,271 ddddddddddddddd0.34
US Dollardddddddddddddddddddd 71.66 ddddddddddddddd0.06
Brent oil ddddddddddddddddddddd 61.05 ddddddddddddd-2.69
IN BRIEF
Yes Bank shares soar onKapoor stake sale reportMUMBAI
Yes Bank’s shares soared
13.5% to ₹��71.60 on the BSE
on Wednesday after media
reports that its cofounder
Rana Kapoor was planning to
sell his stake in the bank.
According to the reports, Mr.
Kapoor and family hold
9.64% stake in the bank and
are in talks with Paytm to
sell the stake. Mr. Kapoor
was the MD & CEO of Yes
Bank, and his term ended in
January 2019, after the RBI
declined to extend his term
for three years even after the
board had endorsed it.
The Income Tax Department’s decision last monthto increase the monetary limit for the cases belowwhich it could not appeal thecourt’s decision has somewhat backfi��red — it is nowdetecting a lot of organisedtax evasions, specifi��cally designed to fall below thatthreshold.
The Department has issued a circular saying itwould fi��le special appeals incases falling below thethreshold, if it feels there isevidence of deliberate taxavoidance, an offi��cial in theFinance Ministry told TheHindu.
“The Income Tax Department periodically reviewsthe monetary limits for thefi��ling of its appeals beforethe Income Tax AppellateTribunal (ITAT), the HighCourts, and the SupremeCourt,” the offi��cial said. “The
last review was to increasethese limits, in early August.But maybe this increase hascreated some problems.”
The August increase in thelimits was a drastic one, doubling them for some cases,and more than doublingthem for others. The fl��oorfor fi��ling appeals in the ITATwas increased from ₹��20 lakhto ₹��50 lakh. The limit for ap
pealing against a High Courtorder was increased to ₹��1crore from ₹��50 lakh. Similarly, the limit for appealingagainst a Supreme Court order was increased to ₹��2 crorefrom ₹��1 crore.
“The Income Tax Department has noticed that thereare a large number of caseswhere there has been organised tax evasion using bogus
longterm capital gains andshortterm capital gains onpenny stocks,” the offi��cialadded. “In some cases, thejudicial authority has ruledin favour of the department,but in others, we feel thatnot enough due consideration was given to the provisions of the law or the factsof the case.”
In such cases, the taxauthorities have no recourse, since the cases fallbelow the threshold forappeals.
“In this context, it was decided that we would issue acircular that would allow usto fi��le a special appeal to theITAT, High Courts, and Supreme Court, even if thecase was smaller than theprescribed thresholds, forcases involving suspected organised tax evasion,” the offi��cial added. The Income TaxDepartment has since issuedthat circular and has sent itto all tax offi��cials.
Tax authorities to fi��le specialappeal even for small casesIT Dept. detects evasions specifi��cally designed to fall below threshold for appeals
TCA Sharad Raghavan
NEW DELHI
Off�� the mark: The review to raise the limits, in early August,created some problems, says an offi��cial. * K. MURALI_KUMAR
In her maiden Union Budgetin July, Finance Minister Nirmala Sitharaman, announced various capitalmarket initiatives includinga higher public holding in alllisted companies and merger of the investment routesfor foreign portfolio investors (FPIs) and nonresidentIndians (NRIs).
However, implementation of the proposals is likelyto take a long time due tothe large number of stakeholders involved and alsopossible concerns thatcould be raised by the various regulators involved inexecuting the governmentdecision.
While the Securities andExchange Board of India(SEBI) had already expressed its reservations onraising the minimum publicholding to 35% – as proposed in the Budget – fromthe current stipulated 25%,it has now emerged that theproposed merger of the NRIFPI route would also be alongdrawn process sincevarious modalities need tobe worked out between thecapital markets regulatorand the Reserve Bank of India (RBI), along with the Department of Economic Affairs (DEA).
Convergence of trio“The proposal requires deliberations between DEA,RBI and SEBI to work outthe modalities. As and whenthese are fi��nalised, the necessary action, as may be required to be taken by SEBI,would be taken separatelyin due course,” said a SEBIpaper that was presented tothe board of the regulatorybody. Experts believe that
while the merger of the NRIand FPI investment routewould make the regulatoryframework more investorfriendly, it may require theRBI to part with the Portfolio Investment Scheme (PIS)regulations and hand themover to the markets regulator, which could delay theimplementation.
“No regulator likes topart with its jurisdiction orsubjects that are under itspurview,” a lawyer specialising in securities market regulations said.
“If the two regulators cansit together and work outthe transition seamlessly,then it can be achieved, butit is easier said than done,”he added, wishing not to benamed.
Ms. Sitharaman, whilepresenting the Union Budget, proposed merging theNRIPortfolio InvestmentScheme route with the Foreign Portfolio Investmentroute to “provide NRIs withseamless access to Indianequities.”
‘No’ to raising fl��oat The budgetary proposal ofincreasing public fl��oat in alllisted entities to 35% has already met with some objections by the capital marketswatchdog.
Addressing the media onAugust 21, SEBI chairmanAjay Tyagi said that therewere many issues, includingthe implications, that needed to be examined beforedeciding to increase the public fl��oat.
Almost half of the listed,governmentowned entitiesdid not even meet the current requirement of 25% public holding and had beengiven time till August 2020to comply, he added.
‘Various regulators need to deliberate’
ASHISH RUKHAIYAR
MUMBAI
Red signal: SEBI had expressed reservations on raising the minimum public holding in listed entities to 35%. * REUTERS
NRIFPI investmentsmerger on ‘long route’
Bharti Airtel on Wednesdaylaunched the Airtel XstreamFibre that will off��er users access to broadband services aspeed of 1 Gbps for ₹��3,999 amonth.
The announcementcomes a week after rival Reliance Jio launched its JioFiber, off��ering a minimumof 100 Mbps speed with astarting plan of ₹��699. Thecompany had also announced plans for off��ering 1Gbps speed starting from₹��3,999 a month.
Bharti Airtel said itsXstream Fibre service willbe available to homes, SOHO (small offi��ce home offi��ce) and small commercialestablishments in Delhi,Gurgaon, Faridabad, Noida,Ghaziabad, Mumbai, Pune,Bengaluru, Hyderabad,Chennai, Chandigarh, Kolkata, Indore, Jaipur and Ahmedabad, from Wednesday.
Over the coming months,
Airtel Xstream Fibre wouldbe rolled out in more markets, it added.
The connection will bebundled with unlimited landline calls to any network inIndia along with benefi��tssuch as three months’ Netfl��ix subscription gift, oneyear Amazon Prime membership and access to premium content from ZEE5 andAirtel Xstream app.
Sameer Batra, CEO —Broadband, Bharti Airtel,said: “With growing proliferation of 4K HD content,highend online gaming andIoT, we have introduced the1 Gbps Airtel Xstream Fibrefor connected homes andpremises where multiple users and devices are onlineconcurrently.”
Airtel to off��er XstreamFibre at ₹��3,999 a monthBroadband can be accessed at 1 Gbps
Special Correspondent
NEW DELHI<> The product is for
connected
premises where
multiple users and
devices are online
concurrently
Union Finance Minister Nirmala Sitharaman assuredthe industry of possiblemeasures to address sectorwise challenges, as well as amajor push to infrastructure, in an informal meetingwith industry captains fromTamil Nadu on Wednesday.
The objective of the meeting was to get a sense ofground reality, amid the current economic slowdown,across various industrialsectors of the economy.
K.M. Mammen, executivedirectorchairperson, MRF,N. Srinivasan, vicechairman and MD, India Cements, T.T. Srinivasaraghavan, managing director,Sundaram Finance, SrivatsRam of Wheels India, GopalMahadevan of Ashok Leyland, R.G. Chandramogan ofHatson Agro, Arun Jain of Intellect Design Arena, Sunitha Reddy of Apollo Hospitals, P. Venketrama Raja ofRamco Group, Sanjay Jayavarthanavelu of LMW, T.Kannan of Thiagarajar Millsand Indian Bank MD Padmaja Chunduru, among others,attended the meet.
According to sources, Mr.Srinivasan said cement wasthe barometer of economylike the housing stocks in theU.S.
“After a long downturn,cement industry clockedstrong double digit growthin FY19 with higher capacityutilisation. If the big ticket
infra investments of ₹��100lakh crore over fi��ve years areimplemented along with thehousing schemes, the demand will improve,” he toldthe Minister in the meeting.
‘Thrust on exports’“The textile industry nowhas huge excess capacity inthe country. A major thrustneeds to be given to exports,especially taking advantageof the trade war betweenthe U.S. and China. On behalf of the industry, I requested the the Merchandise Export from IndiaScheme to be continued until March,” T. Kannan, chairman, Thiagarajar Mills, said.
He has also suggested thatChinese investments shouldbe attracted in the textilesector, which would help reduce the trade imbalance.
“She [the Minister] wasnot in denial mode thatthere are challenges but alsosaid that not all was doom
and gloom. There are manysectors that are doing well,”said an offi��cial, who was partof the meeting.
The automotive industryreiterated its demand forGST rate cuts to revivedemand.
“The fact that she has hada facetoface interactionwith industrialists from awide range of sectors and isopen to listening to the industry view is a positive development and augurs wellfor the future,” he added.
The Minister also assuredattendees that the views andsuggestions from the industry leaders would be used asinputs by the task force thatwas looking into the issues.
“She wanted to listen toviews across the sectors andgave enough time to addressour views. However, she didnot commit any specifi��cmeasures,” said another offi��cial who attended the meeting.
Finance Minister assuresindustry of ‘all possible steps’Sitharaman seeks inputs from corporates on ground reality
Special Correspondent
CHENNAI
Allaying fears: Finance Minister Nirmala Sitharaman said thatnot all was doom and gloom. * SANDEEP SAXENA
The Bombay High Court recently quashed an orderpassed by the Chief Commissioner (CC) of IncomeTax (IT) and waived interestpayable by Ultratech Cement under 234C (interestfor deferment of advancetax) of the Income Tax Act.
The order was passed bya division bench after hearing a plea fi��led by UltratechCement challenging an order passed on November30, 2018 by the commissioner rejecting the company’sapplication for waiver of interest under Section 234C ofthe IT Act.
Ultratech is a successor ofSamruddhi Cement Limited, incorporated on September 4, 2009 as a subsidiary of Grasim IndustriesLimited. Grasim desired todemerge its cement unitwhich would be taken overby Samruddhi.
Grasim paid advance taxon its profi��t of the cementbusiness on two occasions.
The scheme was duly notifi��ed and became eff��ectivefrom May 18, 2010.
An assessment order waspassed which took into account advance tax paid byGrasim which was adjustedagainst its tax liability givingrise to a refund.
However, Samruddhi hadnot paid advance tax instalments on two dates.
Samruddhi contended
that the advance tax was notdeposited on account of impossibility. It therefore fi��ledan application before the CCof IT seeking a waiver ofinterest.
The court said, “Grasimcontinued to discharge taxliability and paid advancetax. On account of demerger, Grasim never claimedbenefi��t of such advance tax,instead, Samruddhi claimedcredit thereof.”
The bench remarked,“We fi��nd that the Commissioner committed a seriouserror in rejecting the application for waiver of interest.The impugned order isquashed and the respondents shall waive interestpayable under 234C of theAct in terms of the CBDT Circular. Consequently, if suchinterest is already recovered, the same would become refundable.”
The CBDT in a circulardated June 26, 2006, directing that the CC of IT may reduce or waive interestcharged under Sections234A, 234B or 234C of theAct in case income chargeable to IT is received or accrued after the due date ofpayment of the fi��rst or subsequent instalments of advance tax, and which wasneither anticipated nor contemplated by the taxpayer,and the advance tax on suchincome is paid in the remaining instalment orinstalments.
Bombay HC quashes ITorder, waives interestpayable by Ultratech Division bench cites CBDT circular
Sonam Saigal
MUMBAI
Yields on sovereign bondshardened on Wednesday,on rising oil prices andhigher U.S. treasury yields.
The yield on the 10yearbenchmark governmentbond ended at 6.68% onWednesday compared toits previous close of 6.58%.
Brent crude futures, theglobal oil benchmark, rose0.93% to trade at $62.96per barrel.
Rising oil prices couldimpact the country’s fi��scaldefi��cit adversely.
Bonds yields hardeneddespite the dovish stanceof the Reserve Bank of India, which had maintainedthat supporting growthwould be its top priority.
Meanwhile, the rupeeended 5 paise higheragainst the dollar at 71.66 —the fi��fth straight session ofgain.
The Indian currencywas able to cut early lossesafter equities gained andon the back of strong Asiancurrencies.
Bond yieldsharden 10 bpsto 6.68%
SPECIAL CORRESPONDENT
Mumbai
India’s oil demand will riseat the fastest pace globallythis year and the next, evenas its economic expansionhas slowed down, oil producers’ cartel OPEC said onWednesday.
In its monthly ‘World OilDemand’ report, OPEC saidIndia’s oil demand is projected to rise by 3.21% to4.88 million barrels per day(mb/d) in 2019 from 4.73mb/d in the previous year.In 2020, it will further riseby 3.36% to 5.05 mb/d.
This outpaces China’s oildemand growth of 2.73% in2019 and 2.37% in 2020.
U.S., biggest consumerChina, however, is theworld’s secondbiggest oilconsumer at 13.06 mb/d in2019, behind only the U.S.whose consumption is projected at 20.94 mb/d.
World oil demand in 2019is expected to grow by 1.02
mb/d, which is 0.08 mb/dlower than the previous projection, OPEC said.
“The drop can be attributed to weakerthanexpected data in 1H19 from various global demand centresand slower economicgrowth projections for theremainder of the year,”OPEC said.
India’s economy grew atslower than expected 5% inAprilJune, compared with8% in the same quarter of2018, and 5.8% inJanuaryMarch.
‘India’s oil demand to riseat fastest pace globally’ OPEC lowers global growth estimate
Press trust of india
new delhi
Millennials opting for ridehailing services like Olaand Uber may not be thatstrong a factor for the current slowdown in autosales and a detailed studyis needed to arrive at anyconclusion to the contrary,according to a top offi��cialof Maruti Suzuki India(MSI).
Ownership pattern in India still has not changedand people purchase carswith an ‘aspirational aspect,’ MSI executive director (marketing and sales)Shashank Srivastava said.
On Tuesday, Finance Minister Nirmala Sitharamanhad said a change in themindset of millennials,who now prefer Ola andUber instead of committingto monthly instalments toown a car, was among thefactors responsible for theslowdown in auto sector.
Auto sales dipmay not bedue to Ola,Uber: MarutiPRESS TRUST OF INDIA
Guwahati