byfintooFebruary 10, 2021
Reliance Jio, Bharti Airtel & Vodafone Idea apply to bid in spectrum auctions:
- Telecom Market leaders Reliance Jio, Bharti Airtel and Vodafone Idea have filed applications for participation in the upcoming 4G spectrum auctions which are due to start on March 1, 2021. The auction for over 2300 MHz of airwaves, valued at Rs 3.92 lakh crore at base price, though is likely to see limited bidding intensity for spectrum worth less than Rs 48,000 crore, with Jio and Airtel expected to be the main players.
- The Department of Telecommunications (DoT) is not auctioning the expensive 5G airwaves in this tranche, bulking up the existing 4G spectrum will allow Telcos to launch 5G services immediately in those bands, without waiting for the sale of airwaves in the 3300-3600 MHz bands earmarked for the next-generation technology. It is estimated that the two telcos would spend 15-20% on additional 4G airwaves, and this investment will go in select bands in the metro and category A circles, where 4G spectrum assets can now be deployed for future 5G use quickly. The upcoming spectrum auction could help Jio and Bharti fortify their 5G positioning by acquiring good magnitude of 1800 and 2300 MHz (bands that could be used for 5G), while Vodafone Idea seems to hold a meager chance to hold a position to bid for 5G bands given its weak balance sheet.
Retail investors continue to exit from equity Mutual Funds:
- Retail investors have continued to book profits in equity mutual funds, at every rise in the shares. Investor’s selling spree in the equity market has continued for the seventh consecutive month with the overall tally reaching the value of Rs. 42,256 crores. Even the debt mutual funds have witnessed a high amount of outflows, especially liquid funds. The majority profit booking has been witnessed among large-cap funds, followed by smallcap and midcap funds. This has been a good opportunity for the investors to exit from the funds not performing well.
- The skepticism regarding the corrections in some time, investors are preferring to continue to stay invested through systematic investment route (SIP), to strike a balance between utilizing the growth opportunities, and realization of high profits. Investors have been continuously investing into the equity markets through systematic investment routes especially into midcap funds, thematic funds, index funds, international funds, and balanced advantage funds to take advantage of diversification opportunities. In such markets, it is a better strategy to stay invested in the staggered manner to cash-in on the opportunities in the equity markets as well as maintaining risk mitigation measures.
Government committee recommends banning all cryptocurrencies, except those issued by state:
- With the recent saga over the cryptocurrency, further propelled by Tesla’s big bet on Bitcoin, the Indian investors having exposure in the cryptocurrencies traded overseas are in a fuss, due to the government’s stance on banning such cryptocurrencies, which has led to these investors rushing to seek legal aid over these investment’s fate in the county. The finance minister, Nirmala Sitharaman constituted a high-level Inter-Ministerial Committee (IMC) under the Chairmanship of Secretary (Economic Affairs) that has suggested that all the private cryptocurrencies, except any virtual currencies issued by the state, will be prohibited in India.
- The central government will take a decision on the recommendation of IMC and legislative proposal if any would be introduced in the Parliament following the due process. In 2018, the RBI had banned banks from processing transactions relating to cryptocurrency. While, in March 2020, the Supreme Court had overturned the ban.
- The government is exploring the use of blockchain technology proactively for ushering in the digital economy, and a cryptocurrency bill is being finalized and which is expected to be sent to the cabinet soon. The cryptocurrency bill is the pressing need of the hour since the existing regulatory bodies in the country like RBI and SEBI too do not have a legal framework to directly regulate cryptocurrencies as they are neither currencies nor assets or securities or commodities issued by an identifiable user.
LIC Policyholders will have a quota in the IPO:
- The initial public offering of Life Insurance Corporation (LIC) would be launched in the next financial year. The LIC Amendment Act has been made part of the Finance Bill, thereby bringing the required legislative amendment for launching IPO of the country’s largest life insurer.
- In the Finance Bill 2021-22, it has been proposed to have a reservation on a competitive basis, to an extent of up to 10 percent of the issue size, in favour of the life insurance policyholders of LIC, while the government will remain the majority shareholder and will continue to retain management control safeguarding the interest of policyholders. This could provide a good opportunity to the existing LIC policyholders, but the guidelines for allotment are yet to be laid out in public.
IndiGo pays Rs 2.1 crore to settle case with SEBI:
- The co-founder of InterGlobe Aviation, Rakesh Gangwal, alleged several violations of corporate governance norms, RPT norms, disclosure norms, and misrepresentation in the IPO document in October 2015 at the company. Based on its investigation, SEBI issued a show-cause in November 2020 to InterGlobe, seeking an explanation for several violations, while in December 2020, InterGlobe filed a settlement application with Sebi to settle the matter, without admitting or denying the findings of fact. Interglobe Aviation has settled a pending dispute with SEBI by agreeing to settle charges of Rs 2.1 crore, through a consent order.