Shares of nine retail, food chain and mutiplex companies rose 1.24% to 9.83% at 15:25 IST on BSE after reports suggested that Cabinet cleared the Model Shops and Establishments Act 2015.
Meanwhile, the S&P BSE Sensex was up 211.15 points or 0.8% at 26,735.70.
Future Enterprises (up 6.32%), Shoppers Stop (up 4.65%), Trent (up 1.24%), Provogue India (up 9.83%), V2 Retail (up 4.96%), and Koutons Retail (up 2.13%) gained.
Shares of retail food chain Jubilant Foodworks rose 3.56%.
Shares of multiplex operators PVR (up 3.02%) and Inox Leisure (up 6.99%) gained.
As per reports, eating out or watching your favorite movie 24/7 will now be a reality with the Cabinet clearance of the Model Shops and Establishments (Regulation of Employment and Conditions of Services) Act 2015 today, 29 June 2016. Approval for the Model Shop & Establishment Act, will permit eating joints, movie theatres, malls, and local markets to remain open round the clock. Aimed at generating employment prospects, the move is expected to pave way for a level playing field between online and offline retailers.
As per reports, all public amusement establishments such as shopping malls, restaurants and local markets, which are not covered under the Factories Act 1948 are covered under the Model Shop & Establishment Act. These establishments must employ at least 10 or more employees to be able to come under the Act. Government offices such as banks including the Reserve Bank of India, insurance companies and factories that are covered under the Factories Act 1948 will not be covered under the legislation. The Act aimed at increasing the ease of doing business could be a game-changer for retailers as competition will increase between online and offline players. The implementation of this Act will also generate high employment opportunities for both men and women. Women will now be permitted to render services in 24/7 establishments. Companies will be mandated to facilitate women with safe transportation services and other related facilities such as crhees during night schedules, report added.
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