BQuick On Sept. 22: Top 10 Stories In Under 10 Minutes
This is a roundup of the day’s top stories in brief.
1. Mistry Family Says It’s ‘Time to Separate’ From Tata Group
In a brief statement by the SP Group, promoter Mistry family has said it is time to separate from Tata.
“The current situation has forced the Mistry family to sit back and reflect on the past, present and possible future for all stakeholders. The past oppressive actions, and the latest vindictive move by Tata Sons that impact the livelihoods of the wider SP Group community leads to the inexplicable conclusion that the mutual co-existence of both groups at Tata Sons would be infeasible. The SP-Tata relationship spanning over 70 years, was forged on mutual trust, good faith, and friendship. Today, it is with a heavy heart that the Mistry family believes that a separation of interests would best serve all stakeholder groups.”
The statement comes on a day the Supreme Court barred the Mistry group from pledging or selling any Tata shares until Oct. 28, when it starts hearing final arguments in the case.
Here are the other highlights from the statement.
2. Industry Seeks A New Class Of Mutual Funds
The mutual funds’ lobby has urged the market regulator to consider creating a new category of funds that would allow rebranding of existing multi-cap schemes without much upheaval, a person aware of the matter said.
The Association of Mutual Funds in India suggested creating flexi-cap funds, which would not infringe on the true-to-label policy of the regulator, the head of a domestic asset management company told BloombergQuint on the condition of anonymity.
According to Ajay Tyagi, chairman at the Securities and Exchange Board of India, AMFI has made representations to the regulator pertaining to its circular issued earlier this month on asset allocation in multi-cap equity schemes.
While refusing to divulge any details, Tyagi, at the annual general meeting of AMFI, said the matter is being discussed.
SEBI has said that it is not their intention to force mutual funds to make investments that were not in the interest of investors.
3. Nifty’s Longest Losing Streak In Two Months
India’s equities fell for a fourth straight day, with investors piling into information technology and pharmaceutical stocks that are considered relatively insulated from the country’s gloomy economic outlook.
The S&P BSE Sensex ended 0.8% lower at 37,734 while the NSE Nifty 50 index fell 0.9% to 11,153.
This is the longest losing streak for the benchmark indices in nearly two months.
A gauge of IT companies rose 0.7%, while seven out of nine sector sub-indexes compiled by National Stock Exchange of India Ltd. dropped.
Follow the day’s trading action here.
Globally, cases crossed 3.1 crore leaving over 9.65 lakh dead.
The number of deaths linked to Covid-19 in England and Wales rose for the first time since April, the latest evidence of the pandemic’s resurgence.
Iran reported its biggest spike in daily cases since the pandemic began, and Dutch infections jumped 63% in the past week.
Imperial College London cited “promising” results from its vaccine trials.
Follow the global spread of the virus here.
10. Why No ‘Ease Of Doing Good’ In India?
Foreign Contribution (Regulation) Act amendments will hurt smaller NGOs, think tanks, research organisations in social sector, writes Ingrid Srinath. The amendments provoking the greatest concerns are:
The ban on regranting FCRA funds to other FCRA registered organisations,
The 20% cap on ‘overhead’ spending,
The requirement to provide Aadhaar details of board members and senior functionaries, and
The mandate to route all FCRA funds through the State Bank of India, New Delhi.