Jet Fuel Price Hiked 5%, Commercial LPG By Rs 209

Jet fuel or ATF price on Sunday was hiked by 5 per cent -- the fourth straight monthly increase since July, and commercial cooking gas (LPG) rates were raised by a steep Rs 209 per 19-kg cylinder, in line with the firming up seen in international benchmarks.

However, the price of domestic LPG - the one used in household kitchens for cooking purposes - remained unchanged at Rs 903 per 14.2-kg cylinder.

Aviation turbine fuel (ATF) price was increased by Rs 5,779.84 per kilolitre, or 5.1 per cent, in the national capital to Rs 118,199.17 per kl from Rs 112,419.33, according to a price notification of state-owned fuel retailers.

The increase comes on back of the steepest-ever 14.1 per cent increase (Rs 13,911.07 per kl) effected on September 1, and a 8.5 per cent or Rs 7,728.38 per kl increase on August 1.

The fourth straight increase in prices of jet fuel, which makes up for 40 per cent of an airline's operating cost, will increase the burden on already financially strained airlines.

On July 1, ATF price had gone up by 1.65 per cent or Rs 1,476.79 per kl. In four increases, ATF prices have gone up by a record Rs 29,391.08 per kl.

Alongside, oil firms raised the price of commercial LPG - the one used in establishments such as hotels and restaurants - by Rs 209.

A 19-kg commercial LPG cylinder will now cost Rs 1,731.50 in the national capital and Rs 1,684 in Mumbai.

The increase reserves most of the Rs 157.5 per cylinder cut in commercial LPG price effected on September 1 and Rs 100 cut effected from August 1.

Saudi contract price (CP), the benchmark used for pricing of LPG, has increased following a firming up trend in crude oil prices witnessed in last few weeks over supply concerns.

Oil companies, which had on August 30, cut domestic LPG rates by Rs 200 per 14.2-kg cylinder, did not change the price of 14.2-kg cylinders.

State-owned Indian Oil Corporation (IOC), Bharat Petroleum Corporation Ltd (BPCL) and Hindustan Petroleum Corporation Ltd (HPCL) revise cooking gas and ATF prices on the 1st of every month based on the average international price in the previous month.

Petrol and diesel prices continued to remain on freeze for a record 18th month in a row. Petrol costs Rs 96.72 per litre in the national capital and diesel comes for Rs 89.62 per litre.

State-owned fuel retailers are supposed to revise petrol and diesel prices daily, based on a 15-day rolling average of benchmark international fuel prices, but they haven't done that since April 6, 2022.

Prices were last changed on May 22, when the government cut excise duty to give relief to consumers from a spike in retail rates that followed a surge in international oil prices.

(Except for the headline, this story has not been edited by NDTV staff and is published from a syndicated feed.)

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Jet Fuel Price Hiked 5%, Commercial LPG By Rs 209

Jet fuel or ATF price on Sunday was hiked by 5 per cent -- the fourth straight monthly increase since July, and commercial cooking gas (LPG) rates were raised by a steep Rs 209 per 19-kg cylinder, in line with the firming up seen in international benchmarks.

However, the price of domestic LPG - the one used in household kitchens for cooking purposes - remained unchanged at Rs 903 per 14.2-kg cylinder.

Aviation turbine fuel (ATF) price was increased by Rs 5,779.84 per kilolitre, or 5.1 per cent, in the national capital to Rs 118,199.17 per kl from Rs 112,419.33, according to a price notification of state-owned fuel retailers.

The increase comes on back of the steepest-ever 14.1 per cent increase (Rs 13,911.07 per kl) effected on September 1, and a 8.5 per cent or Rs 7,728.38 per kl increase on August 1.

The fourth straight increase in prices of jet fuel, which makes up for 40 per cent of an airline's operating cost, will increase the burden on already financially strained airlines.

On July 1, ATF price had gone up by 1.65 per cent or Rs 1,476.79 per kl. In four increases, ATF prices have gone up by a record Rs 29,391.08 per kl.

Alongside, oil firms raised the price of commercial LPG - the one used in establishments such as hotels and restaurants - by Rs 209.

A 19-kg commercial LPG cylinder will now cost Rs 1,731.50 in the national capital and Rs 1,684 in Mumbai.

The increase reserves most of the Rs 157.5 per cylinder cut in commercial LPG price effected on September 1 and Rs 100 cut effected from August 1.

Saudi contract price (CP), the benchmark used for pricing of LPG, has increased following a firming up trend in crude oil prices witnessed in last few weeks over supply concerns.

Oil companies, which had on August 30, cut domestic LPG rates by Rs 200 per 14.2-kg cylinder, did not change the price of 14.2-kg cylinders.

State-owned Indian Oil Corporation (IOC), Bharat Petroleum Corporation Ltd (BPCL) and Hindustan Petroleum Corporation Ltd (HPCL) revise cooking gas and ATF prices on the 1st of every month based on the average international price in the previous month.

Petrol and diesel prices continued to remain on freeze for a record 18th month in a row. Petrol costs Rs 96.72 per litre in the national capital and diesel comes for Rs 89.62 per litre.

State-owned fuel retailers are supposed to revise petrol and diesel prices daily, based on a 15-day rolling average of benchmark international fuel prices, but they haven't done that since April 6, 2022.

Prices were last changed on May 22, when the government cut excise duty to give relief to consumers from a spike in retail rates that followed a surge in international oil prices.

(Except for the headline, this story has not been edited by NDTV staff and is published from a syndicated feed.)

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AM Naik Steps Down As Chairman Of L&T Group

AM Naik stepped down as the chairman of L&T Group on Saturday.

He handed over the reins of the $23 billion conglomerate to SN Subrahmanyan at an event in Mumbai.

AM Naik, 81, will now be the chairman of the employees trust. He will focus on increasing many philanthropic initiatives that he has been undertaking for the past few years, according to a statement.

India Post unveiled a postage stamp on AM Naik on the occasion.

AM Naik's attention going forward will be on his philanthropic initiatives, including the Naik Charitable Trust which focuses on education and skill-building of the underprivileged, and the Nirali Memorial Medical Trust dedicated to facilitating super speciality healthcare at subsidised cost.

AM Naik joined the company in 1965 as a junior engineer and went on to become its Group Chairman.

In the nearly three decades in leadership roles, AM Naik helped the company grow to its present size and stature, the statement said. 

(Except for the headline, this story has not been edited by NDTV staff and is published from a syndicated feed.)

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AM Naik Steps Down As Chairman Of L&T Group

AM Naik stepped down as the chairman of L&T Group on Saturday.

He handed over the reins of the $23 billion conglomerate to SN Subrahmanyan at an event in Mumbai.

AM Naik, 81, will now be the chairman of the employees trust. He will focus on increasing many philanthropic initiatives that he has been undertaking for the past few years, according to a statement.

India Post unveiled a postage stamp on AM Naik on the occasion.

AM Naik's attention going forward will be on his philanthropic initiatives, including the Naik Charitable Trust which focuses on education and skill-building of the underprivileged, and the Nirali Memorial Medical Trust dedicated to facilitating super speciality healthcare at subsidised cost.

AM Naik joined the company in 1965 as a junior engineer and went on to become its Group Chairman.

In the nearly three decades in leadership roles, AM Naik helped the company grow to its present size and stature, the statement said. 

(Except for the headline, this story has not been edited by NDTV staff and is published from a syndicated feed.)

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Interest Rate For 5-Year Recurring Deposit Scheme Hiked To 6.7%

The government on Friday increased the interest rate on five-year recurring deposit scheme by 20 basis points for the October-December quarter. The interest has been hiked from 6.5% to 6.7%. All other small savings instruments will offer the same interest rates.

The revised rates were notified by the Department of Economic Affairs of the Ministry of Finance on September 29. “The rates of interest on various Small Savings Schemes for the third quarter of financial year 2023-24 starting from 1st October, 2023 and ending on 31st December, 2023 have been revised,” the office memorandum read.

According to the notification, only the interest rate for the five-year recurring deposit scheme has been increased. The Savings Scheme will continue to have 4% interest rate while the one, two, and three-year recurring deposit schemes will continue to offer 6.9%, 7%, and 7% interest rate.

There is an interest rate of 8.2% on the the Senior Citizen Savings Scheme and 7.4% on the Monthly Income Account Scheme. Other schemes with unchanged interest rates include the National Savings Certificate, Public Provident Fund Scheme, Kisan Vikas Patra, and Sukanya Samriddhi Account Scheme.

On Thursday, the bond yields of the government increased with the benchmark yield posting its biggest in single-session rise this year. The 10-year benchmark 7.18% ended at 7.2414% after ending at 7.1704% in the previous session. The biggest single-session rise has been recorded since November last year, reported Reuters.

The interest rates on small savings schemes are decided by the government and depend upon the market yields of government securities.  

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Interest Rate For 5-Year Recurring Deposit Scheme Hiked To 6.7%

The government on Friday increased the interest rate on five-year recurring deposit scheme by 20 basis points for the October-December quarter. The interest has been hiked from 6.5% to 6.7%. All other small savings instruments will offer the same interest rates.

The revised rates were notified by the Department of Economic Affairs of the Ministry of Finance on September 29. “The rates of interest on various Small Savings Schemes for the third quarter of financial year 2023-24 starting from 1st October, 2023 and ending on 31st December, 2023 have been revised,” the office memorandum read.

According to the notification, only the interest rate for the five-year recurring deposit scheme has been increased. The Savings Scheme will continue to have 4% interest rate while the one, two, and three-year recurring deposit schemes will continue to offer 6.9%, 7%, and 7% interest rate.

There is an interest rate of 8.2% on the the Senior Citizen Savings Scheme and 7.4% on the Monthly Income Account Scheme. Other schemes with unchanged interest rates include the National Savings Certificate, Public Provident Fund Scheme, Kisan Vikas Patra, and Sukanya Samriddhi Account Scheme.

On Thursday, the bond yields of the government increased with the benchmark yield posting its biggest in single-session rise this year. The 10-year benchmark 7.18% ended at 7.2414% after ending at 7.1704% in the previous session. The biggest single-session rise has been recorded since November last year, reported Reuters.

The interest rates on small savings schemes are decided by the government and depend upon the market yields of government securities.  

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India In Talks With More Jurisdictions On Cross-Border Payments: RBI

Reserve Bank Deputy Governor T Rabi Sankar on Friday said the high cost of remittances for countries despite the available technology was "unconscionable", and India is in talks with more jurisdictions to make a material impact on cross-border payments.

Mr Sankar, during a virtual address at the BCC&I Indo-Pacific Economic Conclave, said according to World Bank research, global cross-border remittance in 2022 was estimated to be USD 830 billion, and India was the top recipient.

"As per the World Bank's remittance prices worldwide database, the global average cost of a retail size of remittance (retail size - USD 200) was 6.2 per cent in the fourth quarter of 2022. For some countries, this cost can be as high as 8 per cent.

"Such a high cost in today's context, when data connectivity is so cheap, is simply unconscionable. I believe that given the available technology, the present situation is not sustainable," he said.

The top RBI official said India has been making efforts to tackle the challenge of the high cost of remittances, and the newly introduced central bank digital currency (CBDC) offers a potential solution in this context.

"If we come up with a technologically viable solution to link the CBDC systems across countries, it can dramatically bring down cost of cross-border payments by completely bypassing the legacy correspondent banking system," Mr Sankar said.

He, however, said this will require international cooperation and agreement on multiple legal and technological protocols, "something which should be quite doable in today's hyper-connected global economy", especially when the welfare gains are substantial.

"We are in talks with some other jurisdictions to make a material impact on the high cost of remittances," said Mr Sankar.

In February this year, India and Singapore had enabled the UPI-PayNow linkage to enable users in either country to make convenient, safe, instant and cost-effective cross-border transfers using their respective mobile apps.

"We have followed up on this in July by signing an MoU with the Central Bank of the UAE (for) cooperation regarding interlinking on mutual payments and messaging systems, among other things," Mr Sankar added.

The RBI deputy governor also talked about the risks that private digital currencies pose for countries like India and other emerging economies.

Such currencies impede the ability of emerging market countries to manage their external sector or maintain policy independence, he said.

"Within the set of private virtual currency, the inherent flaws, vulnerabilities and risks posed by stablecoins outweigh their purported benefits. In fact, all the perceived benefits of stablecoins can perhaps be more easily and responsibly achieved by linking CBDCs or fast payment systems of differential jurisdictions," Mr Sankar said.

Meanwhile, speaking at a special session on 'India Leads - Towards 3rd Largest Economy', Ajay Seth, Secretary, Department of Economic Affairs, called for more private investment in the infrastructure sector, and a "creative redevelopment" of cities.

"That is a sector in particular, which is attracting very little private capital. At the moment, just about 5 per cent of investment in infrastructure is coming from private capital. And, that is not sustainable in the sense that capacities of the governments are limited, and thereby, we have to create opportunities for the private sector to come in.

"Our journey in the future will depend on the quantum of our success in the 'Amrit Kaal'. The role of our cities and an orderly transition to urbanisation is going to play a major part," Mr Seth said.

Prime Minister Narendra Modi has described the coming 25 years until the centenary of India's Independence in 2047 as 'Amrit Kaal'.

Mr Seth said more focus is required on the energy sector, which at present is "not exactly open for the market forces".

The cost recoveries in the sector are not optimum for economic forces to have a sound play, he said.

The senior government official also listed reskilling and financial sector efficiencies in terms of cost and ease of intermediation as critical aspects in India's journey towards becoming the third largest economy in the world.

(Except for the headline, this story has not been edited by NDTV staff and is published from a syndicated feed.)

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India In Talks With More Jurisdictions On Cross-Border Payments: RBI

Reserve Bank Deputy Governor T Rabi Sankar on Friday said the high cost of remittances for countries despite the available technology was "unconscionable", and India is in talks with more jurisdictions to make a material impact on cross-border payments.

Mr Sankar, during a virtual address at the BCC&I Indo-Pacific Economic Conclave, said according to World Bank research, global cross-border remittance in 2022 was estimated to be USD 830 billion, and India was the top recipient.

"As per the World Bank's remittance prices worldwide database, the global average cost of a retail size of remittance (retail size - USD 200) was 6.2 per cent in the fourth quarter of 2022. For some countries, this cost can be as high as 8 per cent.

"Such a high cost in today's context, when data connectivity is so cheap, is simply unconscionable. I believe that given the available technology, the present situation is not sustainable," he said.

The top RBI official said India has been making efforts to tackle the challenge of the high cost of remittances, and the newly introduced central bank digital currency (CBDC) offers a potential solution in this context.

"If we come up with a technologically viable solution to link the CBDC systems across countries, it can dramatically bring down cost of cross-border payments by completely bypassing the legacy correspondent banking system," Mr Sankar said.

He, however, said this will require international cooperation and agreement on multiple legal and technological protocols, "something which should be quite doable in today's hyper-connected global economy", especially when the welfare gains are substantial.

"We are in talks with some other jurisdictions to make a material impact on the high cost of remittances," said Mr Sankar.

In February this year, India and Singapore had enabled the UPI-PayNow linkage to enable users in either country to make convenient, safe, instant and cost-effective cross-border transfers using their respective mobile apps.

"We have followed up on this in July by signing an MoU with the Central Bank of the UAE (for) cooperation regarding interlinking on mutual payments and messaging systems, among other things," Mr Sankar added.

The RBI deputy governor also talked about the risks that private digital currencies pose for countries like India and other emerging economies.

Such currencies impede the ability of emerging market countries to manage their external sector or maintain policy independence, he said.

"Within the set of private virtual currency, the inherent flaws, vulnerabilities and risks posed by stablecoins outweigh their purported benefits. In fact, all the perceived benefits of stablecoins can perhaps be more easily and responsibly achieved by linking CBDCs or fast payment systems of differential jurisdictions," Mr Sankar said.

Meanwhile, speaking at a special session on 'India Leads - Towards 3rd Largest Economy', Ajay Seth, Secretary, Department of Economic Affairs, called for more private investment in the infrastructure sector, and a "creative redevelopment" of cities.

"That is a sector in particular, which is attracting very little private capital. At the moment, just about 5 per cent of investment in infrastructure is coming from private capital. And, that is not sustainable in the sense that capacities of the governments are limited, and thereby, we have to create opportunities for the private sector to come in.

"Our journey in the future will depend on the quantum of our success in the 'Amrit Kaal'. The role of our cities and an orderly transition to urbanisation is going to play a major part," Mr Seth said.

Prime Minister Narendra Modi has described the coming 25 years until the centenary of India's Independence in 2047 as 'Amrit Kaal'.

Mr Seth said more focus is required on the energy sector, which at present is "not exactly open for the market forces".

The cost recoveries in the sector are not optimum for economic forces to have a sound play, he said.

The senior government official also listed reskilling and financial sector efficiencies in terms of cost and ease of intermediation as critical aspects in India's journey towards becoming the third largest economy in the world.

(Except for the headline, this story has not been edited by NDTV staff and is published from a syndicated feed.)

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"Portfolio Rebalancing": IHC On Stake Sale From 2 Adani Firms

International Holding Company (IHC) will sell its stake in two Adani Group companies, the Abu Dhabi-based firm said in a note to the markets.

IHC said it has "entered into a definitive agreement with a buyer to dispose of its FDI (foreign direct investment) in Adani Green Energy Ltd and Adani Transmission Ltd".

IHC did not name the buyer. It also did not say the sale price.

IHC said the stake sale were part of its "overall portfolio rebalancing strategy", and that it was completing regulatory paperwork to complete the transaction.

The company emphasised that "its partnership with Adani and dedication to the Indian market remain steadfast."

IHC in April 2022 invested about $500 million each in Adani Green Energy, and Adani Transmission, and a further $1 billion in the group's flagship Adani Enterprises.

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"Portfolio Rebalancing": IHC On Stake Sale From 2 Adani Firms

International Holding Company (IHC) will sell its stake in two Adani Group companies, the Abu Dhabi-based firm said in a note to the markets.

IHC said it has "entered into a definitive agreement with a buyer to dispose of its FDI (foreign direct investment) in Adani Green Energy Ltd and Adani Transmission Ltd".

IHC did not name the buyer. It also did not say the sale price.

IHC said the stake sale were part of its "overall portfolio rebalancing strategy", and that it was completing regulatory paperwork to complete the transaction.

The company emphasised that "its partnership with Adani and dedication to the Indian market remain steadfast."

IHC in April 2022 invested about $500 million each in Adani Green Energy, and Adani Transmission, and a further $1 billion in the group's flagship Adani Enterprises.

(Disclaimer: New Delhi Television is a subsidiary of AMG Media Networks Limited, an Adani Group Company.)

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Deadline For Adding Nominees To Mutual Funds Extended, New Date Is...

Markets regulator SEBI on Wednesday extended the deadline for mutual fund account holders till January 1, to nominate a beneficiary or opt out of it by submitting a declaration form, failing which their folios will be frozen.

Earlier, the deadline for existing mutual fund holders to provide a choice of nomination was on or before September 30. 

The move is aimed at helping investors secure their assets and pass them on to their legal heirs.

"Based on representations received from the market participants, it has been decided that the provision... about the freezing of folios, shall come into force with effect from January 1, 2024, instead of September 30, 2023," SEBI said in a circular.

Further, SEBI asked asset management companies (AMCs) and RTAs to encourage the unit holder to fulfill the requirement for nomination/ opting out of the nomination by sending a communication on a fortnightly basis by way of emails and SMS to all such unit holders who are not in compliance with the requirement of nomination.

The Securities and Exchange Board of India (SEBI), in its circular on June 15, 2022, made it mandatory for mutual fund subscribers to submit the nomination details or declaration to opt out of the nomination on or after August 1, 2022.

The deadline was extended several times.

Market experts are of the view that many mutual fund folios in the past have been opened without nominating anyone to whom the assets should be transmitted in case something happens to the account holders.

This means that the rightful heirs had difficulty in getting the assets transmitted to them due to the hassles of different kinds of documentation requirements.

On Tuesday, the regulator extended the deadline by three months to December-end for existing demat account holders to provide a choice of nomination or formally opt out of nomination through a declaration form.

Additionally, the submission of 'choice of nomination' for trading accounts has been made voluntary by SEBI as a move towards ease of doing business. 

(Except for the headline, this story has not been edited by NDTV staff and is published from a syndicated feed.)

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Deadline For Adding Nominees To Mutual Funds Extended, New Date Is...

Markets regulator SEBI on Wednesday extended the deadline for mutual fund account holders till January 1, to nominate a beneficiary or opt out of it by submitting a declaration form, failing which their folios will be frozen.

Earlier, the deadline for existing mutual fund holders to provide a choice of nomination was on or before September 30. 

The move is aimed at helping investors secure their assets and pass them on to their legal heirs.

"Based on representations received from the market participants, it has been decided that the provision... about the freezing of folios, shall come into force with effect from January 1, 2024, instead of September 30, 2023," SEBI said in a circular.

Further, SEBI asked asset management companies (AMCs) and RTAs to encourage the unit holder to fulfill the requirement for nomination/ opting out of the nomination by sending a communication on a fortnightly basis by way of emails and SMS to all such unit holders who are not in compliance with the requirement of nomination.

The Securities and Exchange Board of India (SEBI), in its circular on June 15, 2022, made it mandatory for mutual fund subscribers to submit the nomination details or declaration to opt out of the nomination on or after August 1, 2022.

The deadline was extended several times.

Market experts are of the view that many mutual fund folios in the past have been opened without nominating anyone to whom the assets should be transmitted in case something happens to the account holders.

This means that the rightful heirs had difficulty in getting the assets transmitted to them due to the hassles of different kinds of documentation requirements.

On Tuesday, the regulator extended the deadline by three months to December-end for existing demat account holders to provide a choice of nomination or formally opt out of nomination through a declaration form.

Additionally, the submission of 'choice of nomination' for trading accounts has been made voluntary by SEBI as a move towards ease of doing business. 

(Except for the headline, this story has not been edited by NDTV staff and is published from a syndicated feed.)

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BYJU's To Lay Off 3,500 Employees "Overhired" During Pandemic: Report

Edtech major BYJU's may lay off up to 3,500 employees during the current fiscal as it looks to consolidate teams and enhance regional focus, sources privy to the development said.

According to one of the sources, BYJU's had "overhired" people at the time of Covid pandemic due to sudden jump in online education, but the demand has now receded, for which the company needs to do the course correction.

"There has been no retrenchment as of now. The company is in the process of restructuring and assessing demand across various units. Around 1,000 people were already serving notice periods, and another 1,000 have not completed their performance improvement parameters. Assessment is still underway. About 3,000-3,500 may be impacted due the whole exercise," a source, who did not wish to be identified, told PTI.

The sources said this will be the last lay off at BYJU's payroll and the entire exercise will be over by October end.

"The final phase of restructuring intends to optimise business by bringing together multiple divisions and creating a clear accountability-driven structure. The 3,000-3,500  is an estimate and not the target of the company," the source said.

When contacted, BYJU's spokesperson said: "We are in the final stages of a business restructuring exercise to simplify operating structures, reduce the cost base and better cash flow management. BYJU'S new India CEO Arjun Mohan will be completing this process in the next few weeks and will steer a revamped and sustainable operation ahead." The sources said that several business units were created to meet the growth requirement during the pandemic and there were few product experiments that were carried out but they did not work out well.

"There will be now simple organisation structure divided between K12 education and other competitive examinations. It will focus on consumer behaviour services. Regional teams will have more accountability. There will be a large focus on hybrid models and tuition centres which need to be run in a decentralised manner with regional focus," the source said.

The lay-off exercise is expected to impact 300-400 mid-level employees.

"Most of the business built up during Covid was with focus on new customers. BYJU's is going through the same phase like other big technology companies, where lay-offs have happened due to course correction and to build sustainable business models. BYJU's will enhance focus on existing customers," the source said.

With this, total number of employees at BYJU's will fall in the range of 31,000-33,000 compared to 50,000 workforce at group level that it announced in October 2022.

The sources said most of the employees under third-party payroll and across subsidiaries like BYJU's Future School, formerly Whitejat Jr, were impacted.

The total number of reductions also included those leaving the organisation voluntarily, they said.

(Except for the headline, this story has not been edited by NDTV staff and is published from a syndicated feed.)

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BYJU's To Lay Off 3,500 Employees "Overhired" During Pandemic: Report

Edtech major BYJU's may lay off up to 3,500 employees during the current fiscal as it looks to consolidate teams and enhance regional focus, sources privy to the development said.

According to one of the sources, BYJU's had "overhired" people at the time of Covid pandemic due to sudden jump in online education, but the demand has now receded, for which the company needs to do the course correction.

"There has been no retrenchment as of now. The company is in the process of restructuring and assessing demand across various units. Around 1,000 people were already serving notice periods, and another 1,000 have not completed their performance improvement parameters. Assessment is still underway. About 3,000-3,500 may be impacted due the whole exercise," a source, who did not wish to be identified, told PTI.

The sources said this will be the last lay off at BYJU's payroll and the entire exercise will be over by October end.

"The final phase of restructuring intends to optimise business by bringing together multiple divisions and creating a clear accountability-driven structure. The 3,000-3,500  is an estimate and not the target of the company," the source said.

When contacted, BYJU's spokesperson said: "We are in the final stages of a business restructuring exercise to simplify operating structures, reduce the cost base and better cash flow management. BYJU'S new India CEO Arjun Mohan will be completing this process in the next few weeks and will steer a revamped and sustainable operation ahead." The sources said that several business units were created to meet the growth requirement during the pandemic and there were few product experiments that were carried out but they did not work out well.

"There will be now simple organisation structure divided between K12 education and other competitive examinations. It will focus on consumer behaviour services. Regional teams will have more accountability. There will be a large focus on hybrid models and tuition centres which need to be run in a decentralised manner with regional focus," the source said.

The lay-off exercise is expected to impact 300-400 mid-level employees.

"Most of the business built up during Covid was with focus on new customers. BYJU's is going through the same phase like other big technology companies, where lay-offs have happened due to course correction and to build sustainable business models. BYJU's will enhance focus on existing customers," the source said.

With this, total number of employees at BYJU's will fall in the range of 31,000-33,000 compared to 50,000 workforce at group level that it announced in October 2022.

The sources said most of the employees under third-party payroll and across subsidiaries like BYJU's Future School, formerly Whitejat Jr, were impacted.

The total number of reductions also included those leaving the organisation voluntarily, they said.

(Except for the headline, this story has not been edited by NDTV staff and is published from a syndicated feed.)

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New Angel Tax Rules For Valuing Investments In Unlisted Start-Ups

The Income Tax Department has notified new angel tax rules that comprise a mechanism to evaluate the shares issued by unlisted startups to investors.

While previously the angel tax - a tax levied on capital received on the sale of shares of a startup above the fair market value - applied only to local investors, the Budget for the 2023-24 fiscal (April 2023 to March 2024) widened its ambit to include foreign investments.

As per the Budget, the excess premium will be considered as 'income from sources' and taxed at the rate of up to over 30 percent. 

However, startups registered by the DPIIT are exempt from the new norms.

The Central Board of Direct Taxes (CBDT) in a September 25 notification spelled out the valuation methodology.

As per the changes in Rule 11UA of I-T rules, the Central Board of Direct Taxes (CBDT) provides that the valuation of compulsorily convertible preference shares (CCPS) and equity shares issued by unlisted startups can be based on the fair market value.

The amended rules also retain the five new valuation methods proposed in the draft rules for consideration received from the non-residents -- (i) Comparable Company Multiple Method, (ii) Probability Weighted Expected Return Method, (iii) Option Pricing Method, (iv) Milestone Analysis Method, and (v) Replacement Cost Method.

Deloitte India Partner Sumit Singhania said from an investors' standpoint, revised rules offer a wider range of valuation methodologies to work with, and that ought to make compliance less onerous henceforth.

"Also, safe harbour permitting 10 percent deviation from fair value makes room for valuation adjustments when needed. Overall, the trajectory is to align tax valuation methodologies with permissible exchange control norms," Singhania said.

Nangia & Co LLP Partner Amit Agarwal said the amendments to Rule 11UA of the Indian Income Tax Act bring positive changes by offering taxpayers flexibility through multiple valuation methods, simplifying the valuation date consideration, incentivising venture capital investments, facilitating investments from notified entities, providing clarity on CCPS and encouraging foreign investments.

"The inclusion of a tolerance threshold for minor valuation discrepancies further enhances efficiency and fairness in tax assessments, ultimately benefiting both taxpayers and the government.

"These changes offer taxpayers a broader range of valuation methods to choose from, including internationally recognised approaches, thereby attracting foreign investments and fostering clarity. Moreover, the notified final rule introduces an additional sub-clause specifically addressing CCPS," Agarwal said.

SW India Managing Partner and Co-founder Atul Puri said the CBDT has amended Rule 11UA to arrive at the fair market value of unquoted shares issued to resident and non-resident investors.

Rule 11UA at present prescribes two methods for the valuation of unquoted shares -- DCF (Discounted Cash Flow) method and NAV (Net Asset Value) method for resident investors.

However, there was no specific reference to the valuation of shares issued to non-resident investors, and this would lead to confusion and litigation between tax officers and non-resident investors.

Amended Rule 11UA includes five more valuation methods available as an option to non-resident investors, in addition to DCF and NAV methods. However, the option to value equity shares as per any of these five methods is not available to resident investors.

"The amended Rule 11UA is a welcome move, which brings in more clarity for both investor and investee, basis which an appropriate valuation method can be adopted, thereby reducing the chances of any future litigation and addressing illegitimate or non-genuine transactions while promoting investments in eligible startups," Puri said.

AKM Global Tax Partner Amit Maheshwari said the new angel tax rules have very well taken care of an important aspect of the CCPS valuation mechanism, which was not the case earlier since most of the investments in India by VC funds are through the CCPS route only.

"The extension of 10 percent safe harbour to CCPS investments as it was earlier meant for equity shares will give a necessary margin of safety for taking care of foreign exchange fluctuations and is a welcome move," Maheshwari added.

The CBDT had in May come out with draft rules on the valuation of funding in unlisted and unrecognised startups for levying income tax, commonly termed as 'Angel Tax', and had invited public comments on it.

The amended rules are aimed at bridging the gap between the rules outlined in FEMA and the income tax.

So far, only investments by domestic investors or residents in closely held companies or unlisted firms were taxed over and above the fair market value. This was commonly referred to as an angel tax.

The Finance Act, 2023, has said that such investments over and above the FMV will be taxed irrespective of whether the investor is a resident or non-resident.

Post the amendments in the Finance Act, concerns have been raised over the methodology of calculation of fair market value under two different laws.

IndusLaw Partner Shruti K P said a tolerance limit of 10 percent of the valuation price has also been allowed for both equity and CCPS issuances.

"Clarity on valuation norms for CCPS was long overdue and is indeed a welcome move, which may alleviate concerns on tax implications of CCPS issuances, especially to foreign investors," Shruti said. 

(Except for the headline, this story has not been edited by NDTV staff and is published from a syndicated feed.)

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New Angel Tax Rules For Valuing Investments In Unlisted Start-Ups

The Income Tax Department has notified new angel tax rules that comprise a mechanism to evaluate the shares issued by unlisted startups to investors.

While previously the angel tax - a tax levied on capital received on the sale of shares of a startup above the fair market value - applied only to local investors, the Budget for the 2023-24 fiscal (April 2023 to March 2024) widened its ambit to include foreign investments.

As per the Budget, the excess premium will be considered as 'income from sources' and taxed at the rate of up to over 30 percent. 

However, startups registered by the DPIIT are exempt from the new norms.

The Central Board of Direct Taxes (CBDT) in a September 25 notification spelled out the valuation methodology.

As per the changes in Rule 11UA of I-T rules, the Central Board of Direct Taxes (CBDT) provides that the valuation of compulsorily convertible preference shares (CCPS) and equity shares issued by unlisted startups can be based on the fair market value.

The amended rules also retain the five new valuation methods proposed in the draft rules for consideration received from the non-residents -- (i) Comparable Company Multiple Method, (ii) Probability Weighted Expected Return Method, (iii) Option Pricing Method, (iv) Milestone Analysis Method, and (v) Replacement Cost Method.

Deloitte India Partner Sumit Singhania said from an investors' standpoint, revised rules offer a wider range of valuation methodologies to work with, and that ought to make compliance less onerous henceforth.

"Also, safe harbour permitting 10 percent deviation from fair value makes room for valuation adjustments when needed. Overall, the trajectory is to align tax valuation methodologies with permissible exchange control norms," Singhania said.

Nangia & Co LLP Partner Amit Agarwal said the amendments to Rule 11UA of the Indian Income Tax Act bring positive changes by offering taxpayers flexibility through multiple valuation methods, simplifying the valuation date consideration, incentivising venture capital investments, facilitating investments from notified entities, providing clarity on CCPS and encouraging foreign investments.

"The inclusion of a tolerance threshold for minor valuation discrepancies further enhances efficiency and fairness in tax assessments, ultimately benefiting both taxpayers and the government.

"These changes offer taxpayers a broader range of valuation methods to choose from, including internationally recognised approaches, thereby attracting foreign investments and fostering clarity. Moreover, the notified final rule introduces an additional sub-clause specifically addressing CCPS," Agarwal said.

SW India Managing Partner and Co-founder Atul Puri said the CBDT has amended Rule 11UA to arrive at the fair market value of unquoted shares issued to resident and non-resident investors.

Rule 11UA at present prescribes two methods for the valuation of unquoted shares -- DCF (Discounted Cash Flow) method and NAV (Net Asset Value) method for resident investors.

However, there was no specific reference to the valuation of shares issued to non-resident investors, and this would lead to confusion and litigation between tax officers and non-resident investors.

Amended Rule 11UA includes five more valuation methods available as an option to non-resident investors, in addition to DCF and NAV methods. However, the option to value equity shares as per any of these five methods is not available to resident investors.

"The amended Rule 11UA is a welcome move, which brings in more clarity for both investor and investee, basis which an appropriate valuation method can be adopted, thereby reducing the chances of any future litigation and addressing illegitimate or non-genuine transactions while promoting investments in eligible startups," Puri said.

AKM Global Tax Partner Amit Maheshwari said the new angel tax rules have very well taken care of an important aspect of the CCPS valuation mechanism, which was not the case earlier since most of the investments in India by VC funds are through the CCPS route only.

"The extension of 10 percent safe harbour to CCPS investments as it was earlier meant for equity shares will give a necessary margin of safety for taking care of foreign exchange fluctuations and is a welcome move," Maheshwari added.

The CBDT had in May come out with draft rules on the valuation of funding in unlisted and unrecognised startups for levying income tax, commonly termed as 'Angel Tax', and had invited public comments on it.

The amended rules are aimed at bridging the gap between the rules outlined in FEMA and the income tax.

So far, only investments by domestic investors or residents in closely held companies or unlisted firms were taxed over and above the fair market value. This was commonly referred to as an angel tax.

The Finance Act, 2023, has said that such investments over and above the FMV will be taxed irrespective of whether the investor is a resident or non-resident.

Post the amendments in the Finance Act, concerns have been raised over the methodology of calculation of fair market value under two different laws.

IndusLaw Partner Shruti K P said a tolerance limit of 10 percent of the valuation price has also been allowed for both equity and CCPS issuances.

"Clarity on valuation norms for CCPS was long overdue and is indeed a welcome move, which may alleviate concerns on tax implications of CCPS issuances, especially to foreign investors," Shruti said. 

(Except for the headline, this story has not been edited by NDTV staff and is published from a syndicated feed.)

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India Among Top 3 Fastest Growing Markets In Asia In 2024: JPMorgan

India could be among the three fastest growing markets for JPMorgan in the Asia Pacific region next year, alongside Australia and Japan, said a top official at the Wall Street bank.

"People are starting to get excited about the whole China plus one element and while other countries have benefitted, India could be the largest beneficiary," said Filippo Gori, JPMorgan's CEO for Asia Pacific told Reuters, referring to a strategy for businesses diversifying supply chains beyond China.

This is because India has the scale to absorb part of the supply chain that many companies around the world are looking to move, he said in an interview in Mumbai.

Global corporations like Apple Inc have stepped up production out of India while others like Tesla are in discussions to begin manufacturing in the country.

Asia's third largest economy is seen growing 6.5 percent in the financial year ending March 31, 2024 - the fastest among major economies - and is trying to attract global corporations, including by offering tax and other incentives.

"It seems to me that the one component that is missing (in India) is more organized infrastructure, which is more scattered and less uniform than in China," said Filippo Gori, who sees low-end manufacturing moving out of China but not high-end manufacturing yet.

Deal volume for JPMorgan, across mergers and acquisitions, equity and debt fundraising, has been weak across the region this year and India has not been an exception despite the excitement.

"But the level at which inquiry and activity is picking up in India is substantial," Filippo Gori said.

JPMorgan has expanded its investment banking team in India, adding two senior managing directors in the last 12 months. It has also grown its commercial banking division, which is focused on mid-sized companies, over the last five years. 

Alongside, it has grown its corporate center business, which handles offshoring-related work, to a workforce of 50,000 now from 35,000 in 2018.

Commenting on the impact of the slowdown in China and flux in its markets, Gori said the bank had not seen a sharp slowdown in business volumes in the market yet.

"I think we need to distinguish between the headlines and the day-to-day business because China has actually been exceptionally resilient."

The bank's primary client base is international companies operating offshore in China and that business has not been impacted by geopolitics, Gori said.

"I will not rule out that there could be activity coming out of China because clearly with an economy that is going through restructuring, some dealmaking activity could come up."

(Except for the headline, this story has not been edited by NDTV staff and is published from a syndicated feed.)

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India Among Top 3 Fastest Growing Markets In Asia In 2024: JPMorgan

India could be among the three fastest growing markets for JPMorgan in the Asia Pacific region next year, alongside Australia and Japan, said a top official at the Wall Street bank.

"People are starting to get excited about the whole China plus one element and while other countries have benefitted, India could be the largest beneficiary," said Filippo Gori, JPMorgan's CEO for Asia Pacific told Reuters, referring to a strategy for businesses diversifying supply chains beyond China.

This is because India has the scale to absorb part of the supply chain that many companies around the world are looking to move, he said in an interview in Mumbai.

Global corporations like Apple Inc have stepped up production out of India while others like Tesla are in discussions to begin manufacturing in the country.

Asia's third largest economy is seen growing 6.5 percent in the financial year ending March 31, 2024 - the fastest among major economies - and is trying to attract global corporations, including by offering tax and other incentives.

"It seems to me that the one component that is missing (in India) is more organized infrastructure, which is more scattered and less uniform than in China," said Filippo Gori, who sees low-end manufacturing moving out of China but not high-end manufacturing yet.

Deal volume for JPMorgan, across mergers and acquisitions, equity and debt fundraising, has been weak across the region this year and India has not been an exception despite the excitement.

"But the level at which inquiry and activity is picking up in India is substantial," Filippo Gori said.

JPMorgan has expanded its investment banking team in India, adding two senior managing directors in the last 12 months. It has also grown its commercial banking division, which is focused on mid-sized companies, over the last five years. 

Alongside, it has grown its corporate center business, which handles offshoring-related work, to a workforce of 50,000 now from 35,000 in 2018.

Commenting on the impact of the slowdown in China and flux in its markets, Gori said the bank had not seen a sharp slowdown in business volumes in the market yet.

"I think we need to distinguish between the headlines and the day-to-day business because China has actually been exceptionally resilient."

The bank's primary client base is international companies operating offshore in China and that business has not been impacted by geopolitics, Gori said.

"I will not rule out that there could be activity coming out of China because clearly with an economy that is going through restructuring, some dealmaking activity could come up."

(Except for the headline, this story has not been edited by NDTV staff and is published from a syndicated feed.)

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High Footfalls At The 12th Global Investment Immigration Summit In Mumbai

Mumbai: The 12th Global Investment Immigration Summit held at the Sofitel, BKC Mumbai, witnessed a remarkable surge in attendees, signalling a growing interest among Indians in pursuing opportunities abroad.

Organized by BLS Global, with Acquest Advisors as the Knowledge Partner and NDTV as the media partner, the summit represented a global amalgamation of ideas and expertise. Immigration specialists from across the globe, including the US, UK, Spain, Portugal, Greece, and more, converged in India, making the event a nexus of international collaboration.

This assembly drew the participation of over 150 High Net Worth Individuals (HNIs) and industry professionals, underscoring the growing allure of global migration and investment among the Indian populace.

Mr. Sam Hussain, Director of BLS Global, extended heartfelt gratitude to the esteemed guests, speakers, and partners. His address echoed the collective vision of fostering international relationships and unlocking global opportunities, setting a positive tone for the proceedings.

The inaugural speech by Mr. Chandrakant Salunkhe, President of the SME Chamber of India, served as a clarion call to Indian entrepreneurs. He encouraged them to venture beyond borders, harness global opportunities, and catalyze international business expansion.

Mr. Paresh Karia, the seasoned CEO of Acquest Advisors, took the attendees on an enlightening journey through the current global landscape. He highlighted the profound impact of recent global events, such as the Covid-19 pandemic and the unfolding developments in Europe, on the growing allure of Residency and Citizenship by Investment options. His insights on programs like the Portugal Golden Visa, Greece Golden Visa, and Spain Golden Visa were particularly resonant, reflecting the shifting preferences of individuals from developed nations like the US and UK.

One of the pivotal moments of the summit was the comprehensive EB-5 session, moderated by Ambika Singh, a Senior Journalist with NDTV's special projects. The interactive dialogue, featuring esteemed professionals from the US and India, unravelled the complexities of the EB-5 program's legal and financial frameworks, answering pressing queries from the audience.

The summit's agenda was rich and varied, with dedicated segments exploring investment opportunities in Europe, focusing on nations like Portugal, Greece, and Spain. Post-lunch sessions delved deep into the intricacies of remitting funds overseas under the Liberalised Remittance Scheme and the recent amendments in Tax Collected at Source on overseas remittances. The presence of renowned bankers, chartered accountants, and immigration experts added layers of depth and clarity to these discussions, offering attendees a well-rounded perspective.

As the event reached its culmination, a spirited panel discussion titled "Twenty Years of Residency and Citizenship Industry in India" took centre stage. Eminent personalities like Paresh Karia, CEO of Acquest Advisors, Prashant Ajmera, Chairman of Ajmera Law Group, and Sam Hussain, Director of BLS Global, delved into the historical evolution and future trajectory of the investment immigration industry in India.

Acquest Advisors, the knowledge partner for the event, played a pivotal role in sculpting the event's content and flow. The firm's expertise and comprehensive immigration solutions have been instrumental in guiding HNIs, business owners, and start-up entrepreneurs through the maze of global migration.

Acquest, headquartered in Mumbai, extends its reach through offices in multiple locations. With a team of in-house experts and a network of seasoned professionals, including attorneys, bankers, chartered accountants, regional centres, developers, fund managers, and business sellers, the firm stands as a beacon of immigration advisory.

Paresh Karia, the dynamic CEO of Acquest Advisors, brings to the table over two decades of diverse experience in banking, investment advisory, real estate, and immigration. His thought leadership is well-recognized, making him a regular contributor to TV shows on reputable channels like CNBC and NDTV, and publications like Hindustan Times, Forbes, Fortune India, moneycontrol.com, and Bloomberg Quint.

In conclusion, the 12th Global Investment Immigration Summit in Mumbai was not just an event; it was a symposium of dreams, aspirations, and opportunities. It opened doors to global possibilities, offering a platform for knowledge exchange and fostering international collaborations.

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High Footfalls At The 12th Global Investment Immigration Summit In Mumbai

Mumbai: The 12th Global Investment Immigration Summit held at the Sofitel, BKC Mumbai, witnessed a remarkable surge in attendees, signalling a growing interest among Indians in pursuing opportunities abroad.

Organized by BLS Global, with Acquest Advisors as the Knowledge Partner and NDTV as the media partner, the summit represented a global amalgamation of ideas and expertise. Immigration specialists from across the globe, including the US, UK, Spain, Portugal, Greece, and more, converged in India, making the event a nexus of international collaboration.

This assembly drew the participation of over 150 High Net Worth Individuals (HNIs) and industry professionals, underscoring the growing allure of global migration and investment among the Indian populace.

Mr. Sam Hussain, Director of BLS Global, extended heartfelt gratitude to the esteemed guests, speakers, and partners. His address echoed the collective vision of fostering international relationships and unlocking global opportunities, setting a positive tone for the proceedings.

The inaugural speech by Mr. Chandrakant Salunkhe, President of the SME Chamber of India, served as a clarion call to Indian entrepreneurs. He encouraged them to venture beyond borders, harness global opportunities, and catalyze international business expansion.

Mr. Paresh Karia, the seasoned CEO of Acquest Advisors, took the attendees on an enlightening journey through the current global landscape. He highlighted the profound impact of recent global events, such as the Covid-19 pandemic and the unfolding developments in Europe, on the growing allure of Residency and Citizenship by Investment options. His insights on programs like the Portugal Golden Visa, Greece Golden Visa, and Spain Golden Visa were particularly resonant, reflecting the shifting preferences of individuals from developed nations like the US and UK.

One of the pivotal moments of the summit was the comprehensive EB-5 session, moderated by Ambika Singh, a Senior Journalist with NDTV's special projects. The interactive dialogue, featuring esteemed professionals from the US and India, unravelled the complexities of the EB-5 program's legal and financial frameworks, answering pressing queries from the audience.

The summit's agenda was rich and varied, with dedicated segments exploring investment opportunities in Europe, focusing on nations like Portugal, Greece, and Spain. Post-lunch sessions delved deep into the intricacies of remitting funds overseas under the Liberalised Remittance Scheme and the recent amendments in Tax Collected at Source on overseas remittances. The presence of renowned bankers, chartered accountants, and immigration experts added layers of depth and clarity to these discussions, offering attendees a well-rounded perspective.

As the event reached its culmination, a spirited panel discussion titled "Twenty Years of Residency and Citizenship Industry in India" took centre stage. Eminent personalities like Paresh Karia, CEO of Acquest Advisors, Prashant Ajmera, Chairman of Ajmera Law Group, and Sam Hussain, Director of BLS Global, delved into the historical evolution and future trajectory of the investment immigration industry in India.

Acquest Advisors, the knowledge partner for the event, played a pivotal role in sculpting the event's content and flow. The firm's expertise and comprehensive immigration solutions have been instrumental in guiding HNIs, business owners, and start-up entrepreneurs through the maze of global migration.

Acquest, headquartered in Mumbai, extends its reach through offices in multiple locations. With a team of in-house experts and a network of seasoned professionals, including attorneys, bankers, chartered accountants, regional centres, developers, fund managers, and business sellers, the firm stands as a beacon of immigration advisory.

Paresh Karia, the dynamic CEO of Acquest Advisors, brings to the table over two decades of diverse experience in banking, investment advisory, real estate, and immigration. His thought leadership is well-recognized, making him a regular contributor to TV shows on reputable channels like CNBC and NDTV, and publications like Hindustan Times, Forbes, Fortune India, moneycontrol.com, and Bloomberg Quint.

In conclusion, the 12th Global Investment Immigration Summit in Mumbai was not just an event; it was a symposium of dreams, aspirations, and opportunities. It opened doors to global possibilities, offering a platform for knowledge exchange and fostering international collaborations.

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Chief Economic Adviser On Inclusion of Indian bonds In JPMorgan Index

Chief Economic Adviser V Anantha Nageswaran on Friday said inclusion of Indian government bonds into JPMorgan's benchmark emerging market index from next year will widen investor base, and may lead to appreciation of rupee.

He also said there is potential for currency appreciation following inclusion of Indian bonds in JPMorgan index.

Global financial firm JPMorgan has said that it plans to include Indian government bonds or government securities (G-Secs) into its benchmark emerging market index from June, 2024, a move that will bring down borrowing cost for the government.

The inclusion of G-Secs will be staggered over a 10-month period from June 28, 2024 to March 31, 2025, indicating one per cent increment on its index weight.

"Obviously, the investor base for Indian government bonds widens and it will also in a way, relieve the Indian financial institutions from having to be one of the biggest buyers or subscribers of government bonds and they can actually then lend that money for more productive purposes to private sector, the commercial sector individuals etc," Mr Nageswaran said.

He said there will be a tendency for the currency to appreciate just as it happened between 2003 and 2008 when capital inflows into India surged.

"There is a demand for investors to buy the Indian government bonds... so in that sense, there is a potential for currency appreciation, when the index inclusion starts to happen or the demand from investors for the Indian government securities starts to rise," he said.

In her Budget speech for 2020-21, Union Finance Minister Nirmala Sitharaman said, "Certain specified categories of government securities would be opened fully for non-resident investors, apart from being available to domestic investors as well."

The specified securities, which will be listed on the indices, will not have a lock-in requirement.

This was long pending and there were certain issues including with regard to taxation, which the government has ironed out in the last many months.

(Except for the headline, this story has not been edited by NDTV staff and is published from a syndicated feed.)

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Chief Economic Adviser On Inclusion of Indian bonds In JPMorgan Index

Chief Economic Adviser V Anantha Nageswaran on Friday said inclusion of Indian government bonds into JPMorgan's benchmark emerging market index from next year will widen investor base, and may lead to appreciation of rupee.

He also said there is potential for currency appreciation following inclusion of Indian bonds in JPMorgan index.

Global financial firm JPMorgan has said that it plans to include Indian government bonds or government securities (G-Secs) into its benchmark emerging market index from June, 2024, a move that will bring down borrowing cost for the government.

The inclusion of G-Secs will be staggered over a 10-month period from June 28, 2024 to March 31, 2025, indicating one per cent increment on its index weight.

"Obviously, the investor base for Indian government bonds widens and it will also in a way, relieve the Indian financial institutions from having to be one of the biggest buyers or subscribers of government bonds and they can actually then lend that money for more productive purposes to private sector, the commercial sector individuals etc," Mr Nageswaran said.

He said there will be a tendency for the currency to appreciate just as it happened between 2003 and 2008 when capital inflows into India surged.

"There is a demand for investors to buy the Indian government bonds... so in that sense, there is a potential for currency appreciation, when the index inclusion starts to happen or the demand from investors for the Indian government securities starts to rise," he said.

In her Budget speech for 2020-21, Union Finance Minister Nirmala Sitharaman said, "Certain specified categories of government securities would be opened fully for non-resident investors, apart from being available to domestic investors as well."

The specified securities, which will be listed on the indices, will not have a lock-in requirement.

This was long pending and there were certain issues including with regard to taxation, which the government has ironed out in the last many months.

(Except for the headline, this story has not been edited by NDTV staff and is published from a syndicated feed.)

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India Added To JPMorgan's Emerging Markets Index. Here's What It Means

JPMorgan will include Indian government bonds in its Government Bond Index-Emerging Markets (GBI-EM) from June 2024, the Wall Street bank said on Friday.

The inclusion, a first for the country, could lead to billions of dollars of inflows into local currency-denominated government debt and bring down bond yields, while also providing some support for the rupee.

However, there is little direct impact expected on the equity markets.

WHAT PROMPTED THE INCLUSION?

The Indian government began discussing the inclusion of its securities in global indexes as far back as 2013. However, its restrictions on foreign investments in domestic debt held that back.

In April 2020, the Reserve Bank of India introduced a clutch of securities that were exempt from any foreign investment restrictions under a "fully accessible route" (FAR), making them eligible for inclusion in global indexes.

Currently, 23 Indian Government Bonds (IGBs) with a combined notional value of $330 billion are index eligible, JPMorgan said.

About 73% of benchmarked investors voted in favour of India's inclusion, it said.

HOW LARGE WILL THE INFLOWS BE?

JPMorgan said Indian bonds will eventually hold a weight of 10% in its index, following 1% additions to its weightage each month from next June.

The inclusion could result in inflows of close to $24 billion over this 10-month period, analysts estimate.

This is significantly higher than the $3.5 billion invested by foreign investors in Indian debt so far this calendar year.

Foreign holdings of outstanding bonds could rise to 3.4% by April-May 2025, from 1.7% currently, analysts estimate.

WHAT IS THE IMPACT ON BOND YIELDS, BORROWING COSTS?

India's fiscal deficit remains high at a targeted 5.9% of GDP for the year ending March 31, 2024, which will result in the government borrowing a record 15 trillion rupees (about $181 billion).

So far, banks, insurance companies and mutual funds have been the largest buyers of government debt. An additional source of funds will help cap bond yields and the government's borrowing costs.

Traders estimate the benchmark bond yield will fall 10-15 basis points to 7% over the next few months.

Corporate borrowers will also benefit as their borrowing costs are benchmarked to government bonds.

However, increased foreign flows will also make the bond and currency markets more volatile and could push the government and central bank to intervene more actively.

WHAT DOES IT MEAN FOR THE RUPEE?

Larger debt inflows from next financial year will make it easier for India to finance its current account deficit and reduce the pressure on the rupee.

Index inclusion-related inflows of close to $24 billion will cover a material part of India's $81 billion current account deficit, estimated for next financial by IDFC First Bank.

(Except for the headline, this story has not been edited by NDTV staff and is published from a syndicated feed.)

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India Added To JPMorgan's Emerging Markets Index. Here's What It Means

JPMorgan will include Indian government bonds in its Government Bond Index-Emerging Markets (GBI-EM) from June 2024, the Wall Street bank said on Friday.

The inclusion, a first for the country, could lead to billions of dollars of inflows into local currency-denominated government debt and bring down bond yields, while also providing some support for the rupee.

However, there is little direct impact expected on the equity markets.

WHAT PROMPTED THE INCLUSION?

The Indian government began discussing the inclusion of its securities in global indexes as far back as 2013. However, its restrictions on foreign investments in domestic debt held that back.

In April 2020, the Reserve Bank of India introduced a clutch of securities that were exempt from any foreign investment restrictions under a "fully accessible route" (FAR), making them eligible for inclusion in global indexes.

Currently, 23 Indian Government Bonds (IGBs) with a combined notional value of $330 billion are index eligible, JPMorgan said.

About 73% of benchmarked investors voted in favour of India's inclusion, it said.

HOW LARGE WILL THE INFLOWS BE?

JPMorgan said Indian bonds will eventually hold a weight of 10% in its index, following 1% additions to its weightage each month from next June.

The inclusion could result in inflows of close to $24 billion over this 10-month period, analysts estimate.

This is significantly higher than the $3.5 billion invested by foreign investors in Indian debt so far this calendar year.

Foreign holdings of outstanding bonds could rise to 3.4% by April-May 2025, from 1.7% currently, analysts estimate.

WHAT IS THE IMPACT ON BOND YIELDS, BORROWING COSTS?

India's fiscal deficit remains high at a targeted 5.9% of GDP for the year ending March 31, 2024, which will result in the government borrowing a record 15 trillion rupees (about $181 billion).

So far, banks, insurance companies and mutual funds have been the largest buyers of government debt. An additional source of funds will help cap bond yields and the government's borrowing costs.

Traders estimate the benchmark bond yield will fall 10-15 basis points to 7% over the next few months.

Corporate borrowers will also benefit as their borrowing costs are benchmarked to government bonds.

However, increased foreign flows will also make the bond and currency markets more volatile and could push the government and central bank to intervene more actively.

WHAT DOES IT MEAN FOR THE RUPEE?

Larger debt inflows from next financial year will make it easier for India to finance its current account deficit and reduce the pressure on the rupee.

Index inclusion-related inflows of close to $24 billion will cover a material part of India's $81 billion current account deficit, estimated for next financial by IDFC First Bank.

(Except for the headline, this story has not been edited by NDTV staff and is published from a syndicated feed.)

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JPMorgan To Add India To Its Emerging-Markets Bond Index

JPMorgan Chase & Co. will add Indian government bonds to its benchmark emerging-market index, a keenly awaited event that could drive billions of foreign inflows to the nation's debt market.

The decision is the latest sign of India's growing appeal to international investors as the country's economic growth outstrips peers, its geopolitical influence grows and global companies including Apple Inc. look for alternatives to China. While foreigners play a small role in the Indian bond market, inflows have been picking up in recent years and the country's assets have proven resilient to financial turbulence that has roiled other developing-nations.

The index provider will add Indian securities to the JPMorgan Government Bond Index-Emerging Markets starting June 28, 2024. The South Asian nation will have a maximum weight of 10% on the index, according to a statement Thursday.

Index inclusion follows "the Indian government's introduction of the FAR program in 2020 and substantive market reforms for aiding foreign portfolio investments," the team led by the firm's global head of index research, Gloria Kim, said in a statement. Almost three-quarters of benchmark investors surveyed were in favor of India's inclusion in to the index, they said.

India's milestone is a stark contrast to many emerging-market peers, not least neighboring China, whose economic woes and struggling financial markets have become a source of frustration for global investors. In fact, those troubles have only burnished India's appeal.

Foreign investors have bought $3.5 billion worth of Indian government debt this year, according to data compiled by Bloomberg. Giving global investors greater access may prompt flows of as much as $30 billion, according to HSBC Holdings Plc in a recent note.

On the equities side, India has been as one of the top investment destintions among major emerging markets this year, with its fast-growing economy and solid corporate earnings pushing the nation's equity benchmark near an all-time high. Developing-market money managers are most overweight on India in their Asia portfolios, Goldman Sachs Group Inc. analysts wrote in a report earlier this month.

While concerns over rising oil prices and higher-for-longer US interest rates have spurred outflows from local shares in September, overseas investors have bought almost $16 billion on a net basis this year. That's set to be the biggest annual inflow since 2020.

"With inflation coming under control, the inclusion will open more gates for foreign capital to flow into India," said Charu Chanana, a strategist at Saxo Markets in Singapore.

Expectations that India may be added to international gauges had been rising in recent months as providers look to diversify index constituents. Russia's invasion of Ukraine had seen it drop off indexes, while China's worsening economic woes have taken the shine off the country's sovereign debt.

That left India as the world's last big emerging market that hasn't joined others like China on the global debt indexes. Assets worth $236 billion track the JPMorgan emerging market bond indexes, the company said.

Still, authorities in India have been largely uncompromising in making changes to tax policies that would make it easier for the securities to be added to global indexes. Korea, another large emerging market, signed an agreement to open an omnibus account with Euroclear Bank SA, facilitating foreigners' access.

Currently, 23 bonds worth a combined notional $330 billion are eligible to be added into the index, JPMorgan said. Inclusion will be staggered over 10 months at roughly 1% weight per month, it said.

Foreigners have raised their holdings of such bonds to almost $12 billion, from $7.4 billion at end of 2022, in anticipation of the inclusion, according to Clearing Corp. of India data. The rupee was trading 0.4% higher in offshore trading early Friday, with the bond market yet to start trading.

FTSE Russell, another major index provider, has the nation's bonds on index watch for inclusion in its emerging market gauge.

Elsewhere, Egypt has been placed on negative watch due to the material currency repatriation hurdles reported by investors, JPMorgan said. The country's index eligibility will be assessed over the next three to six months, it said.

Bloomberg LP is the parent company of Bloomberg Index Services Ltd, which administers indexes that compete with those from other service providers.

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JPMorgan To Add India To Its Emerging-Markets Bond Index

JPMorgan Chase & Co. will add Indian government bonds to its benchmark emerging-market index, a keenly awaited event that could drive billions of foreign inflows to the nation's debt market.

The decision is the latest sign of India's growing appeal to international investors as the country's economic growth outstrips peers, its geopolitical influence grows and global companies including Apple Inc. look for alternatives to China. While foreigners play a small role in the Indian bond market, inflows have been picking up in recent years and the country's assets have proven resilient to financial turbulence that has roiled other developing-nations.

The index provider will add Indian securities to the JPMorgan Government Bond Index-Emerging Markets starting June 28, 2024. The South Asian nation will have a maximum weight of 10% on the index, according to a statement Thursday.

Index inclusion follows "the Indian government's introduction of the FAR program in 2020 and substantive market reforms for aiding foreign portfolio investments," the team led by the firm's global head of index research, Gloria Kim, said in a statement. Almost three-quarters of benchmark investors surveyed were in favor of India's inclusion in to the index, they said.

India's milestone is a stark contrast to many emerging-market peers, not least neighboring China, whose economic woes and struggling financial markets have become a source of frustration for global investors. In fact, those troubles have only burnished India's appeal.

Foreign investors have bought $3.5 billion worth of Indian government debt this year, according to data compiled by Bloomberg. Giving global investors greater access may prompt flows of as much as $30 billion, according to HSBC Holdings Plc in a recent note.

On the equities side, India has been as one of the top investment destintions among major emerging markets this year, with its fast-growing economy and solid corporate earnings pushing the nation's equity benchmark near an all-time high. Developing-market money managers are most overweight on India in their Asia portfolios, Goldman Sachs Group Inc. analysts wrote in a report earlier this month.

While concerns over rising oil prices and higher-for-longer US interest rates have spurred outflows from local shares in September, overseas investors have bought almost $16 billion on a net basis this year. That's set to be the biggest annual inflow since 2020.

"With inflation coming under control, the inclusion will open more gates for foreign capital to flow into India," said Charu Chanana, a strategist at Saxo Markets in Singapore.

Expectations that India may be added to international gauges had been rising in recent months as providers look to diversify index constituents. Russia's invasion of Ukraine had seen it drop off indexes, while China's worsening economic woes have taken the shine off the country's sovereign debt.

That left India as the world's last big emerging market that hasn't joined others like China on the global debt indexes. Assets worth $236 billion track the JPMorgan emerging market bond indexes, the company said.

Still, authorities in India have been largely uncompromising in making changes to tax policies that would make it easier for the securities to be added to global indexes. Korea, another large emerging market, signed an agreement to open an omnibus account with Euroclear Bank SA, facilitating foreigners' access.

Currently, 23 bonds worth a combined notional $330 billion are eligible to be added into the index, JPMorgan said. Inclusion will be staggered over 10 months at roughly 1% weight per month, it said.

Foreigners have raised their holdings of such bonds to almost $12 billion, from $7.4 billion at end of 2022, in anticipation of the inclusion, according to Clearing Corp. of India data. The rupee was trading 0.4% higher in offshore trading early Friday, with the bond market yet to start trading.

FTSE Russell, another major index provider, has the nation's bonds on index watch for inclusion in its emerging market gauge.

Elsewhere, Egypt has been placed on negative watch due to the material currency repatriation hurdles reported by investors, JPMorgan said. The country's index eligibility will be assessed over the next three to six months, it said.

Bloomberg LP is the parent company of Bloomberg Index Services Ltd, which administers indexes that compete with those from other service providers.

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Household Debt Doubles In FY23, Savings More Than Halves: SBI Research

The net financial savings of households plunged by close to 55 per cent in FY23 to 5.1 per cent of GDP, and their indebtedness more than doubled to Rs 15.6 lakh crore from FY21, primarily led by massive borrowings from banks, shows an analysis of latest official numbers.

According to SBI Research, a good portion of the drawdown from savings have gone to physical assets and of the Rs 8.2 lakh crore increase in household indebtedness in FY23, as much as Rs 7.1 lakh crore accounted for bank borrowings, primarily for home loans and other retail finances.

In FY23, household savings plunged to 5.1 per cent of GDP, from 11.5 per cent in FY21, a 50-year low, and 7.6 per cent in FY20, which was not the pandemic period.

It can be noted that the most important source of funds for the two deficit sectors -- general government finances and the non-financial corporations, are household savings.

The household sector in the national accounts includes, apart from individuals, all non-government, non-corporate enterprises like farm and non-farm businesses, unincorporated establishments like sole proprietorships and partnerships and non-profit institutions.

According to Soumya Kanti Ghosh, the group chief economic adviser at the State Bank of India, financial liabilities jumped by Rs 8.2 lakh crore since the pandemic, outpacing the increase in gross financial savings of Rs 6.7 lakh crore.

On the asset side of households, there was an increase of Rs 4.1 lakh crore in insurance and provident funds and pension funds during the period.

On the liability side of the households, of the Rs 8.2 lakh crore increase, as much as Rs 7.1 lakh crore accounted for an increase in household borrowings from commercial banks.

When juxtaposed this increase in borrowings from banks with the increase in bank credit, as much as 55 per cent of the retail credit to households in the last two years have gone to housing, education and vehicle purchases.

According to Ghosh, this is possible due to the low interest rate regime, resulting in a paradigm shift of household financial savings to household physical savings in the last two years.

He sees a significant long-run relationship between housing loans and households' savings in physical assets. As a result, the decline in net financial savings of households has resulted in a concomitant increase in household savings in gross physical assets.

In fact, savings in physical assets, which accounted for more than two-thirds of household savings in FY12, had declined to 48 per cent in FY21.

However, the trend is again shifting and the share of physical assets is expected to reach 70 per cent in FY23, due to a decline in share of financial assets.

Ghosh also believes that the shift to physical assets is also triggered by a recovery in the real estate sector and the increase in property prices.

Meanwhile, the household debt-to-GDP ratio has increased during the pandemic but has declined thereafter. ` The household debt as percentage of GDP was at 40.7 in March 2020, and has then fallen to 36.5 in June 2023.

Over the years, 80-90 per cent of household physical savings were in dwellings, other buildings and structures and rest in machinery and equipment.
 

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Household Debt Doubles In FY23, Savings More Than Halves: SBI Research

The net financial savings of households plunged by close to 55 per cent in FY23 to 5.1 per cent of GDP, and their indebtedness more than doubled to Rs 15.6 lakh crore from FY21, primarily led by massive borrowings from banks, shows an analysis of latest official numbers.

According to SBI Research, a good portion of the drawdown from savings have gone to physical assets and of the Rs 8.2 lakh crore increase in household indebtedness in FY23, as much as Rs 7.1 lakh crore accounted for bank borrowings, primarily for home loans and other retail finances.

In FY23, household savings plunged to 5.1 per cent of GDP, from 11.5 per cent in FY21, a 50-year low, and 7.6 per cent in FY20, which was not the pandemic period.

It can be noted that the most important source of funds for the two deficit sectors -- general government finances and the non-financial corporations, are household savings.

The household sector in the national accounts includes, apart from individuals, all non-government, non-corporate enterprises like farm and non-farm businesses, unincorporated establishments like sole proprietorships and partnerships and non-profit institutions.

According to Soumya Kanti Ghosh, the group chief economic adviser at the State Bank of India, financial liabilities jumped by Rs 8.2 lakh crore since the pandemic, outpacing the increase in gross financial savings of Rs 6.7 lakh crore.

On the asset side of households, there was an increase of Rs 4.1 lakh crore in insurance and provident funds and pension funds during the period.

On the liability side of the households, of the Rs 8.2 lakh crore increase, as much as Rs 7.1 lakh crore accounted for an increase in household borrowings from commercial banks.

When juxtaposed this increase in borrowings from banks with the increase in bank credit, as much as 55 per cent of the retail credit to households in the last two years have gone to housing, education and vehicle purchases.

According to Ghosh, this is possible due to the low interest rate regime, resulting in a paradigm shift of household financial savings to household physical savings in the last two years.

He sees a significant long-run relationship between housing loans and households' savings in physical assets. As a result, the decline in net financial savings of households has resulted in a concomitant increase in household savings in gross physical assets.

In fact, savings in physical assets, which accounted for more than two-thirds of household savings in FY12, had declined to 48 per cent in FY21.

However, the trend is again shifting and the share of physical assets is expected to reach 70 per cent in FY23, due to a decline in share of financial assets.

Ghosh also believes that the shift to physical assets is also triggered by a recovery in the real estate sector and the increase in property prices.

Meanwhile, the household debt-to-GDP ratio has increased during the pandemic but has declined thereafter. ` The household debt as percentage of GDP was at 40.7 in March 2020, and has then fallen to 36.5 in June 2023.

Over the years, 80-90 per cent of household physical savings were in dwellings, other buildings and structures and rest in machinery and equipment.
 

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Bank Of England Holds Key Interest Rate At 5.25% After 14 Hikes

The Bank of England on Thursday held its key interest rate at 5.25 percent following 14 hikes in a row to fight soaring inflation.

The decision to freeze borrowing costs came one day after official data revealed a surprise cooling of consumer price rises in Britain.

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US Federal Reserve Holds Interest Rates At 22-Year High

The US Federal Reserve voted Wednesday to keep interest rates at a 22-year high, while forecasting an additional rate hike before the end of the year to bring down inflation.

The Fed's decision to keep its key lending rate between 5.25 percent and 5.50 percent gives policymakers time to "assess additional information and its implications for monetary policy," the central bank said in a statement.

After 11 interest rate hikes since March last year, inflation has fallen sharply but remains stubbornly above the Fed's long-run target of two percent per year -- keeping pressure on officials to consider further policy action.

On Wednesday, the Fed said economic activity had been expanding "at a solid pace," while noting strong job gains and a low unemployment rate.

A recent string of positive economic data has raised hopes that policymakers can slow price increases without triggering a damaging recession.

Alongside its interest rate decision, the rate-setting Federal Open Market Committee (FOMC) also updated members' forecasts for a range of economic indicators, as well as expectations of future monetary policy.

FOMC members left the median projection for interest rates between 5.50 percent and 5.75 percent, keeping alive the possibility of another quarter percentage point hike before year-end.

They also lifted expectations for interest rates next year by half a percentage point, suggesting the Fed anticipates rates will have to stay significantly higher for longer in order to lower inflation to target.

FOMC members more than doubled the median projection for economic growth this year as well to 2.1 percent, from 1.0 in June, and sharply raised their forecast for next year.

The prediction for the unemployment rate in 2023 was lowered slightly from June, suggesting the jobs market is faring better than hoped, while the expectation for headline inflation was increased slightly.

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Court Orders Probe Agency To Reply To Naresh Goyal's Plea Challenging Arrest

The Bombay High Court on Wednesday directed the Enforcement Directorate (ED) to file its affidavit in response to Jet Airways founder Naresh Goyal's plea challenging his "illegal" arrest in a money laundering case linked to bank loan default.

Goyal, in his plea, claimed his arrest was illegal as it was done without following provisions of the Prevention of Money Laundering Act (PMLA) and also challenged orders of a special court which had sent him to the ED custody first and thereafter to jail under judicial remand.

When the plea was taken up for hearing on Wednesday by the HC, advocate Hiten Venegaonkar, appearing for the central agency, sought time to file their reply affidavit.

Senior counsel Amit Desai, appearing for the 74-year-old businessman, urged the court to grant a short date for hearing and pointed to his client's advanced age.

A division bench of Justices Revati Mohite Dere and Gauri Godse then said it has to give the other side time to respond.

"He (Goyal) can file for bail. That liberty is there... ED may challenge this plea (filed by Goyal in HC) on maintainability itself," Justice Dere noted.

The bench posted the matter for hearing on October 6 by when the financial crime-fighting agency has to file it affidavit.

Goyal is currently in judicial custody and lodged at Arthur Road Jail in Mumbai after arrest in the money laundering case linked to an alleged fraud of Rs 538 crore at Canara Bank.

The septuagenarian businessman, who once operated India's top private airline, was arrested by the ED on September 1 and produced before a special court which remanded him to custody of the central agency till September 14.

On September 14, he was remanded to judicial custody for two weeks.

Goyal, in the plea, said his arrest was arbitrary, unwarranted and done without the ED following proper procedure. He sought to be released immediately.

The money laundering case stems from an FIR of the Central Bureau of Investigation (CBI) against Jet Airways, Goyal, his wife Anita and some former company executives of the now grounded airline in connection with the alleged Rs 538-crore fraud at Canara Bank, a government lender.

The FIR was registered on the bank's complaint which alleged that it sanctioned credit limits and loans to Jet Airways (India) Ltd to the tune of Rs 848.86 crore of which Rs 538.62 crore was outstanding.

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Court Orders Probe Agency To Reply To Naresh Goyal's Plea Challenging Arrest

The Bombay High Court on Wednesday directed the Enforcement Directorate (ED) to file its affidavit in response to Jet Airways founder Naresh Goyal's plea challenging his "illegal" arrest in a money laundering case linked to bank loan default.

Goyal, in his plea, claimed his arrest was illegal as it was done without following provisions of the Prevention of Money Laundering Act (PMLA) and also challenged orders of a special court which had sent him to the ED custody first and thereafter to jail under judicial remand.

When the plea was taken up for hearing on Wednesday by the HC, advocate Hiten Venegaonkar, appearing for the central agency, sought time to file their reply affidavit.

Senior counsel Amit Desai, appearing for the 74-year-old businessman, urged the court to grant a short date for hearing and pointed to his client's advanced age.

A division bench of Justices Revati Mohite Dere and Gauri Godse then said it has to give the other side time to respond.

"He (Goyal) can file for bail. That liberty is there... ED may challenge this plea (filed by Goyal in HC) on maintainability itself," Justice Dere noted.

The bench posted the matter for hearing on October 6 by when the financial crime-fighting agency has to file it affidavit.

Goyal is currently in judicial custody and lodged at Arthur Road Jail in Mumbai after arrest in the money laundering case linked to an alleged fraud of Rs 538 crore at Canara Bank.

The septuagenarian businessman, who once operated India's top private airline, was arrested by the ED on September 1 and produced before a special court which remanded him to custody of the central agency till September 14.

On September 14, he was remanded to judicial custody for two weeks.

Goyal, in the plea, said his arrest was arbitrary, unwarranted and done without the ED following proper procedure. He sought to be released immediately.

The money laundering case stems from an FIR of the Central Bureau of Investigation (CBI) against Jet Airways, Goyal, his wife Anita and some former company executives of the now grounded airline in connection with the alleged Rs 538-crore fraud at Canara Bank, a government lender.

The FIR was registered on the bank's complaint which alleged that it sanctioned credit limits and loans to Jet Airways (India) Ltd to the tune of Rs 848.86 crore of which Rs 538.62 crore was outstanding.

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Sensex Tanks 796 Points, Nifty Below 20,000 On Selling In HDFC Bank, RIL

Benchmark indices Sensex and Nifty tumbled more than 1 per cent today due to selling in index heavyweights in tandem with weak global trends ahead of the US Federal Reserve's interest rate decision.

Falling for the second day running, the 30-share BSE Sensex tumbled 796 points or 1.18 per cent to settle at 66,800.84. During the day, it tanked 868.7 points or 1.28 per cent to 66,728.14.

The NSE Nifty declined 231.90 points or 1.15 per cent to end below the 20,000 mark at 19,901.40.

US bond yields surging to 16-year high levels and fears of high crude oil prices fueling commodity inflation also hit the investor sentiment, according to analysts.

Fresh foreign fund outflows and caution ahead of a host of interest rate decisions from global central banks also added to the overall bearish trend. Besides the US Fed meeting, the BoE (Bank of England) and the BoJ (Bank of Japan) are also scheduled to meet this week.

Among the Sensex firms, HDFC Bank emerged as the biggest loser, falling 4 per cent. JSW Steel, Reliance Industries, UltraTech Cement, Maruti, Tata Steel, Wipro, Tech Mahindra, Bharti Airtel and Larsen & Toubro were the other major laggards.

Power Grid, Asian Paints, Sun Pharma, Axis Bank, NTPC, ITC and Infosys were among the gainers.

"The domestic markets remained under pressure due to rising US bond yields and a stronger greenback. Concerns reigned over upcoming FED policy, interest rate trajectory and rising oil prices.

"Bank Nifty underperformed today due to rising cost of funds and reduction in deposits leading to moderation in net yield," said Vinod Nair, Head of Research at Geojit Financial Services.

In the broader market, the BSE smallcap gauge fell by 0.51 per cent and midcap index declined 0.33 per cent.

Among the indices, financial services fell by 1.39 per cent, commodities dropped 1.39 per cent, metal (1.25 per cent), realty (1.20 per cent), bankex (1.05 per cent), telecommunication (0.95 per cent) and oil & gas (0.68 per cent).

Utilities and power were the gainers.

In Asian markets, Tokyo, Shanghai and Hong Kong ended lower while Seoul settled with gains.

European markets were trading in positive territory. The US markets ended in negative territory on Tuesday.

Global oil benchmark Brent crude fell 1.23 per cent to USD 93.18 a barrel even as supply concerns remain due to production cuts announced by Saudi Arabia and Russia.

Foreign Institutional Investors (FIIs) offloaded equities worth Rs 1,236.51 crore on Monday, according to exchange data.

Snapping its 11-day rally, the BSE benchmark fell 241.79 points or 0.36 per cent to settle at 67,596.84 on Monday. The broader Nifty declined 59.05 points or 0.29 per cent to end at 20,133.30. Equity markets were closed on Tuesday on account of Ganesh Chaturthi.
 

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