Top headlines: RBI may red flag P&SB bonds; Tatas hike stake in Air Asia

From RBI likely to red-flag Punjab and Sind Bank's Rs 5,500-crore zero-coupon bonds to PE/VC investments into India from China, Hong Kong falling 72% in CY20, here are top headlines this morning

RBI may red-flag Punjab and Sind Bank's Rs 5,500-crore zero-coupon bonds

The Reserve Bank of India (RBI) may red-flag the Rs 5,500-crore zero-coupon bonds issued towards recapitalising (recap) Punjab and Sind Bank (P&SB) in its current form, and ask it to hold the instrument in the held-to-maturity (HTM) portfolio at a discount and not at face value. “This (structure) has to be reworked. It is bad accounting, and has implications for the broader debt market. Read More

After a stupendous rally in market, returns may moderate in 2021: Experts

After a stupendous rally in the market from March lows, experts say returns may moderate in the new year. The market's trajectory in the calendar year 2021 (CY21), they believe, will be guided more by developments surrounding Covid-19 and its vaccine, oil prices, global central bank policies, and the US dollar's movement at the global level. Read More

Tatas spread wings in aviation, hike stake in AirAsia India to 84%

In a major step to consolidate the group’s aviation business, Tata Sons--the holding company for the salt to software conglomerate--has increased its stake in AirAsia India to 83.67 per cent from 51 per cent till now. The Tata group bought 32.67 per cent stake from AirAsia Berhad at Rs 276.29 crore, the Malaysian airline told the Kuala Lumpur-based exchange Bursa on Tuesday. Read More

Bank asset quality may see sharp deterioration post-moratorium: RBI

The banking and non-banking financial sectors in India showed resilience in 2019-20, but with nearly 40 per cent of the outstanding loans under a moratorium, the system may face a sharp deterioration in asset quality, the Reserve Bank of India’s (RBI’s) annual publication titled “Trend and Progress of Banking in India”, released on Tuesday, said. The report evaluated the banking sector’s performance in 2019-20 and touched upon some views for the coming days. Read More

AMP Capital forms $1 bn power transmission platform with Sterlite

Sydney headquartered-AMP Capital has teamed up with Sterlite Power - a leading private power transmission company - to set up a $1-billion platform for the development of energy transmission projects in India. This is the first such investment in India by AMP Capital for its global infrastructure equity strategy. It is a 50:50 partnership, with each investing $150 million. The existing portfolio of the platform includes four under-construction projects of Sterlite Power, majorly evacuating power from renewable energy projects. Read More

PE/VC investments into India from China, Hong Kong fall 72% in CY20

Private equity/venture capital (PE/VC) investments into India from China and Hong Kong have seen a substantial drop in 2020. Investments from these two regions combined have declined 72 per cent to $952 million this calendar year, from $3.4 billion in 2019, the data from Venture Intelligence shows. Investments from Mainland China have reduced 64 per cent to $377 million, while those from Hong Kong have fallen 75 per cent to $575 million in 2020. Also, over 150 applications concerning investments from Chinese entities have been pending since the introduction of press note 3 (PN3) for FDI in April, according to law firm Khaitan & Co. Read More

Promoters of Vedanta raises $1.4 billion to retire debt, says report

Promoters of Vedanta Ltd have pledged their holding in the company to raise $1.4 billion, mostly for repaying the debt that was coming up for maturity. In a stock exchange filing, Vedanta said its promoters raised $1 billion debt by issuing equivalent notes to Citicorp International Ltd. Separately, a unit of Vedanta Resources will issue $400 million in notes to an entity under Oaktree Capital Group. Read More

Tesla's India entry to make e-cars aspirational, but only for a few

Tesla’s proposed entry into the Indian market next year is set to generate lot of excitement around electric vehicles (EVs) and make them aspirational. However, with prices likely to start from Rs 55-60 lakh, it will be affordable to only a handful. To begin with, Tesla will take an imported route for its initial innings and therefore attract high duties. It will also not be eligible for the FAME scheme. Read More

Securities transaction tax collection increases 42% despite Covid-19 crisis

While the pandemic impacted most of the tax receipts this year, the government’s securities transaction tax (STT) zoomed up by 42 per cent in the period between April and December of FY21. According to sources in the Central Board of Direct Taxes (CBDT), so far, STT collection stands at Rs 10,805 crore for FY21, as compared to Rs 7,574 crore over the same period last year. Read More