India Pushes SCL Modernisation, Jio Tariff Hikes, Power Grid Link with Sri Lanka, SEBI Probe Shakes IIFL, and More

India Pushes SCL Modernisation, Jio Tariff Hikes, Power Grid Link with Sri Lanka, SEBI Probe Shakes IIFL, and More.

MeitY Engages BCG for Rs 15-20 Crore SCL Mohali Modernisation Plan

The Ministry of Electronics and IT (MeitY) is advancing its efforts to upgrade the Semi-Conductor Laboratory (SCL) in Mohali with Boston Consulting Group (BCG), allocating Rs 15-20 crore for the consultancy. BCG will develop a request for proposal (RFP) to attract semiconductor companies for 28-nanometer chip technology. SCL, currently producing 180 nm chips, aims to increase capacity and support startups, R&D, and prototyping, potentially investing Rs 20,000 crore to expand wafer production.

Semi-Conductor Laboratory (SCL)

The Semi-Conductor Laboratory (SCL) is India’s premier chip manufacturing facility, currently producing 180 nm chips for strategic sectors like space, satellites, railways, and telecom. Upgrading to 28 nm technology will enhance SCL’s capacity, enabling it to support private sector and export demands. The modernisation includes augmenting the fabrication unit, acquiring advanced equipment, and securing local raw materials to reduce costs and increase yield. This initiative aims to elevate SCL to global standards in semiconductor technology.

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Source: Financial Express

Reliance Jio Implements Major Tariff Hikes Effective July 3, 2024

Starting July 3, 2024, Reliance Jio will significantly increase tariffs across all prepaid and postpaid plans. Monthly plans will now start at Rs 189 for 2GB data, while annual plans will reach up to Rs 3,599 for 2.5GB/day. Alongside, Jio introduces JioSafe and JioTranslate apps, available free for a year to Jio users. These changes aim to support Jio’s investments in 5G and AI technology.

Understanding the New JioSafe and JioTranslate Apps

JioSafe: A quantum-secure communication app offering secure calling, messaging, and file transfers. JioTranslate: An AI-powered multi-lingual communication app for translating voice calls, messages, text, and images. Both apps will be free for Jio users for a year, enhancing security and communication capabilities.

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Source: Business Today

India Seeks to Accelerate Power Grid Link Talks with Sri Lanka

India is expediting discussions with Sri Lanka to establish a power grid link for renewable energy trading. The project includes overhead and under-sea cables, with PwC India evaluating economic benefits. The aim is to sign an MoU between India’s Power Grid Corporation and Sri Lanka’s Ceylon Electricity Board. Renewed interest in the project aligns with India’s strategy to strengthen regional energy ties and follows technical feasibility studies indicating potential financial benefits.

Understanding Power Grid Links

A power grid link connects electrical grids across borders, enabling energy trading and improving supply stability. For India and Sri Lanka, this involves overhead and under-sea cables, focusing on renewable energy. Such links can enhance energy security, reduce costs, and promote regional cooperation. PwC India’s study suggests long-term financial benefits, supporting investment decisions.

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Source: Economic Times

IIFL Securities Crashes 10% Following SEBI Probe into Sanjiv Bhasin’s Alleged Stock Manipulation

Shares of IIFL Securities plunged over 10% after SEBI began investigating Sanjiv Bhasin for alleged stock manipulation. Bhasin, a consultant with IIFL, reportedly directed a private company to buy specific stocks before recommending them on media channels. His contract ended prematurely on June 17, 2024, due to health reasons. The probe examines Bhasin’s digital records and potential involvement in a ‘pump and dump’ scheme.

Understanding ‘Pump and Dump’ Schemes

A ‘pump and dump’ scheme involves artificially inflating the price of a stock through false or misleading statements, to sell it at a higher price. After the price rises (‘pump’), the perpetrators sell (‘dump’) their overvalued shares, causing the stock’s price to collapse, leaving other investors with significant losses. Such schemes are illegal and heavily regulated by financial authorities.

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Source: Live Mint

Experts Urge Increased Budget Focus on Health and Education

In pre-Budget consultations, experts urged Finance Minister Nirmala Sitharaman to increase focus on health and education sectors. For FY25, the Ministry of Health’s outlay is ₹90,659 crore, a slight rise from ₹89,155 crore in FY24. Education funding rose nearly 7% to ₹1,20,628 crore. Recommendations include improving school and hospital facilities, filling vacancies, and monitoring social sector schemes. Calls were also made to raise public spending on education and health to 6% and 3% of GDP by FY31, respectively.

Gross Domestic Product (GDP)

Gross Domestic Product (GDP) is the total monetary value of all goods and services produced within a country’s borders in a specific time period. It serves as a comprehensive measure of a nation’s overall economic activity and health. Higher GDP indicates a stronger economy, whereas a lower GDP suggests economic decline.

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Source: Economic Times

RBI Reports Drop in Household Savings and Rise in Financial Liabilities Post-Covid

The RBI’s 29th Financial Stability Report highlights a decline in household savings to 18.4% of GDP in FY23, down from the 2013-22 average of 20%. Net financial savings fell to 28.5% in FY23, compared to 39.8% previously. Household financial liabilities have risen, reflecting increased retail loan growth for consumption and investment. The central bank emphasizes close monitoring of household debt due to these trends.

Gross Domestic Product (GDP)

Gross Domestic Product (GDP) is the total monetary value of all goods and services produced within a country’s borders in a specific time period. It serves as a comprehensive measure of a nation’s overall economic activity and health. Higher GDP indicates a stronger economy, whereas a lower GDP suggests economic decline.

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Source: Business Today

SEBI Tightens Rules for Derivatives Market, Forms Expert Group

SEBI has introduced stricter entry and exit criteria for stocks in the derivatives segment to enhance market regulation and investor protection. The new rules mandate that stocks must be among the top 500 in market capitalisation and traded value, with higher limits for market-wide positions and median order sizes. An expert group will review the Futures & Options category, with findings submitted to the secondary market advisory committee. These changes aim to ensure a robust securities market ecosystem.

Derivatives

Derivatives are financial contracts whose value is derived from underlying assets like stocks, bonds, commodities, or interest rates. Common types include futures, options, and swaps. Derivatives are used for hedging risks or for speculative purposes. They allow investors to gain exposure to various asset classes without owning the actual assets.

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Source: Business Today

Reliance Retail Fast-Tracks FMCG Expansion with ₹1,053 Crore Funding

Reliance Retail Ventures has invested ₹1,053 crore in its FMCG arm, Reliance Consumer Products (RCPL), over 14 months. RCPL, operational since November 2022, received ₹792 crore in FY24 for scaling operations. Funds will support expanding distribution, setting up production hubs, and acquiring brands like Campa Cola and Maliban Biscuits. Reliance aims to overcome capacity constraints and enhance localized supply chains to boost its FMCG market presence.

Debentures

Debentures are long-term financial instruments issued by companies to borrow money. Unlike stocks, they do not provide ownership in the company. Debentures are typically unsecured, relying on the issuer’s creditworthiness, and they pay fixed interest to investors. They can be convertible, allowing conversion into equity shares, or non-convertible, remaining as debt.

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Source: Economic Times

Scheme Launched to Integrate 500,000 MSMEs into ONDC

The Indian government introduced the TEAM scheme with a ₹277 crore outlay to help 500,000 MSMEs join the Open Network for Digital Commerce (ONDC). Additionally, the Yashasvini initiative aims to empower 100,000 female entrepreneurs through skill development and training. MSME Minister Jitan Ram Manjhi emphasized the importance of these initiatives for inclusive growth and India’s 2047 Viksit Bharat goal. The schemes also include Khadi brand rejuvenation and micro-enterprise support.

Open Network for Digital Commerce (ONDC)

The Open Network for Digital Commerce (ONDC) is an Indian government initiative to democratize digital commerce and help small businesses compete with large e-commerce platforms. It aims to create an open, interoperable network where sellers can easily connect with buyers, reducing reliance on dominant e-commerce players. ONDC supports inclusivity, offering small and medium-sized enterprises (SMEs) opportunities to expand their digital presence and market reach.

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Source: Economic Times

India’s Credit Market to Benefit from Global Bond Index Inclusion

India’s inclusion in global bond indexes, starting with JPMorgan’s flagship emerging markets bond index, is set to boost the country’s fixed-income market. This move is expected to draw $3 billion monthly inflows into government bonds, subsequently lowering corporate capital costs. Aditi Mittal, co-founder of IndiaBonds.com, predicts increased foreign investment in corporate bonds, starting with state-run firms and expanding to those with lower ratings. Currently, foreign investors use only 16% of their investment limit in India’s corporate bonds.

Corporate Bond Market

Corporate bonds are debt securities issued by companies to raise capital. Investors buy these bonds and receive periodic interest payments, plus the principal amount at maturity. Corporate bonds often offer higher yields than government bonds but come with higher risk. Their performance is influenced by the issuing company’s creditworthiness and broader economic conditions.

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Source: Finance Yahoo

SEBI to Enforce Fraud Detection Mechanism in Mutual Fund Industry

SEBI announced that the ₹50 lakh crore Indian mutual fund industry is finalizing an internal mechanism to detect market frauds like front-running and insider trading. Chairperson Madhabi Puri Buch emphasized that large fund houses must implement this system within three months after SEBI’s guidelines, while others have six months. This mandatory measure, starting April 2024, includes enhanced surveillance, internal controls, and procedures to deter potential market abuse.

Front-Running in Financial Markets

Front-running is an unethical practice where a broker or trader executes orders on a security for its account while taking advantage of advance knowledge of pending orders from its customers. This practice can lead to market manipulation and is considered a serious form of misconduct.

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Source: Business Today

Tata Group Retains Title of India’s Most Valuable Brand

Tata Group, valued at $28.6 billion, has maintained its position as India’s most valuable brand, according to Brand Finance. The group’s Taj Hotels also topped as the strongest Indian brand. Infosys ranked second, while HDFC surged to third following its merger with HDFC Ltd. The report highlighted significant growth in telecom (61%) and banking (26%) sectors, with brands like Jio, Airtel, and SBI driving this trend.

Brand Value

Brand value refers to the financial worth attributed to a brand, reflecting its ability to generate revenue and influence consumer behavior. It encompasses factors like brand strength, market position, and financial performance. Higher brand value indicates strong consumer trust, loyalty, and market competitiveness.

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Source: MSN


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