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Sensex, Nifty end 2% lower amidst global sell-off and weak rupee



India Rupee

Mumbai, Oct 11 : A massive slide in global stock markets, along with fears of continued foreign fund outflows and a weak rupee plunged India’s key equity indices by over two per cent on Thursday.

The correction was partly triggered after International Monetary Fund head Christine Lagarde’s commented that stock market valuations had been “extremely high”. This spurred a meltdown in the US markets overnight, spilling over to Asia on Thursday.

Consequently, investors’ sentiments at both the key domestic indices were also impacted. In a volatile trading session on Thursday, the barometer index, Sensex, had crashed over 1,000 points at one point.

In addition to global equities slump, expectations that the US Federal Reserve will continue to hike rates, leading to a greater exodus of foreign funds from domestic indices, also hurt demand for the Indian currency and equities.

On Thursday, the Indian rupee touched a fresh low of 74.48 before closing at 74.12, recovering eight paise from its previous close of 74.20 per US dollar.

Heavy selling pressure was witnessed in banking, automobile, IT and capital goods stocks. All 19 sector-based indices on the BSE, except the metals index, traded in the red.

Index-wise, the NSE Nifty50 closed at 10,234.65, down 225.45 points or 2.16 per cent.

The benchmark S&P BSE Sensex, which had opened at 34,063.82 points, settled at 34,001.15 points, down 759.74 points or 2.19 per cent.

The Sensex touched an intra-day high of 34,325.18 and a low of 33,723.53.

“Market fell to a six month low after the US market dragged down yesterday due to concerns over US Fed rate hike trajectory and trade tensions,” Vinod Nair, Head of Research, Geojit Financial Services, told IANS.

“However, INR gained due to falling oil prices and slide in domestic bond yield. Oil prices declined in expectation of increased production and if this trend continues, the rupee may find some stability.”

HDFC Securities Head of Retail Research Deepak Jasani said: “Technically, while the
Nifty remains in a downtrend, we remain open to pullback rallies that could push the Nifty higher in the near term. Immediate supports are now at 10,139 points while further upside rallies could find resistance at 10,336-10,482 points.”

In terms of fund flows, provisional data with the exchanges showed that foreign institutional investors sold stocks worth Rs 2,869.41 crore, whereas the domestic institutional investors bought Rs 1,888.18-crore stocks.

The forign fund-out flow has reached at around Rs 17,000 crore this month alone.

In the last eight sessions beginning October 1, FIIs have sold shares worth about Rs 17,000 crore.

“The FII take cues from the macros of a country. India’s current macro-economic senario does not inspire confidence due to the decline in the rupee,” said Astha Jain, Senior Analyst, Hem Securities.

The Sensex had only three gainers: ONGC, up 2.86 per cent at Rs 152.90; Yes Bank, up 2.54 per cent at Rs 240; Hindustan Unilever, up 0.75 per cent at Rs 1,538.50 from its previous close.

Major losers included State Bank of India, down 5.74 per cent at Rs 262.15 (SBI);Tata Steel, down 4.60 per cent at Rs 556.25; Vedanta, down 4.45 per cent at Rs 208.25; Mahindra and Mahindra, down 4.44 per cent at Rs 730.20; Infosys, down 3.61 per cent at Rs 675 per share.


India’s Apr-Aug fiscal deficit at over 109% of budgetary target

The Central government’s total expenditure stood at Rs 12.47 lakh crore (41 per cent of BE) while total receipts were Rs 3.77 lakh crore (16.8 per cent of BE).





New Delhi, Sep 30 : India’s budgetary fiscal deficit for the April-August 2020-21 period stood at Rs 8.70 lakh crore, or 109.3 per cent of the budget estimates (BE).

The 2020-21 deficit — the difference between revenue and expenditure — has been pegged at Rs 7.96 lakh crore, as compared to the revised deficit of Rs 7.66 lakh crore for the last fiscal.

As per the Controller General of Accounts (CGA) data released on Wednesday, the fiscal deficit during the corresponding months of the previous fiscal was 78.7 per cent of that year’s target.

The Central government’s total expenditure stood at Rs 12.47 lakh crore (41 per cent of BE) while total receipts were Rs 3.77 lakh crore (16.8 per cent of BE).

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Businesses not ready with GST e-invoicing get 30-day grace period




GST Collection Down

New Delhi, Oct 1 : The Central Board of Indirect Taxes and Customs (CBIC) has announced a 30 day grace period for those businesses which are not yet ready for GST e-invoicing which comes into effect from Thursday, October 1.

In a notification on Wednesday evening, CBIC noted that even after more than nine months of the first notification in this regard, some of these taxpayers having aggregate turnover of Rs 500 crore and above are still not ready.

“Accordingly, as a last chance, in the initial phase of implementation of e-invoice, it has been decided that the invoices issued by such taxpayers during October 2020 without following the manner prescribed under rule 48(4), shall be deemed to be valid and the penalty leviable under section 122of the CGST Act, 2017, for such non-adherence to provisions, shall stand waived if the Invoice Reference Number (IRN) for such invoices is obtained from the Invoice Reference Portal (IRP) within 30 days of date of invoice,” it said.

Elucidating the relaxation, the notification said: “In case a registered person has issued an invoice dated 3rd October, 2020 without obtaining IRNA but reports the details of such invoice to IRP and obtains the IRN of the invoice on or before 2nd November, 2020 then it shall be deemed that the provisions of rule 48 (5) of the CGST Rules, 2017 are complied with and the penalty imposable under section 122 of the CGST Act, 2017 shall also stand waived.”

It further said that no such relaxation would be available for the invoices issued from November 1, 2020 and such invoices issued in violation of rule 48(4) of the CGST Rules 2017 would not be valid and all the applicable provisions of CGST Act and Rules would apply for the said violation.

The government had in December 2019 prescribed that the GST Taxpayers having aggregate annual turnover more than Rs 100 crores in any preceding Financial Year will be required to issue e-invoice for all the Business to Business (B2B) supplies, in the manner prescribed under rule 48(4) of the CGST Rules, 2017 with effect from April 1, 2020.

Further, it was also mandated under rule 48(5) of the CGST Rules, 2017 that a B2B invoice or an export invoice issued by such a taxpayer, in any other manner, shall not be treated as an invoice. In March 2020, the date of implementation of e-invoice was extended to October 1, 2020.

Keeping in view the hardships faced by the taxpayers due to COVID-19 lockdown, in July 2020, it was further prescribed that the taxpayers having aggregate turnover of Rs 500 crore and above only would be required to issue e-invoice with effect from October 1, 2020.

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SEBI amends norms for delisting of subsidiaries, debenture trustees




Mumbai, Sep 29 : The Securities and Exchange Board of India (SEBI) on Tuesday decided to amend regulations for delisting of equity shares, stipulating that the shares of the parent listed company and the listed subsidiary entity should be listed for at least three years and should not be suspended at the time of the delisting process.

Further, the subsidiary should have been a listed subsidiary of the listed holding entity for at least three preceding years.

The SEBI Board, in its meeting on Tuesday, also decided to grant exemption from the Reverse Book Building process (RBB) for delisting of listed subsidiaries, where it becomes the wholly-owned subsidiary of the listed parent pursuant to a scheme of arrangement.

“To be eligible to take this route, the listed holding company and the listed subsidiary should be in the same line of business. Both the companies should be compliant with the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, specifically, the regulations (no. 11, 37 and 94) pertaining to processing of the schemes of arrangement,” a SEBI statement said.

Further, to protect the interests of investors in the listed subsidiary, it has been stipulated that the votes cast by public shareholders of the listed subsidiary in favour of the proposal will be at least two times the number of votes cast against it in terms of the present delisting regulations.

The Board also decided to bring amendments to the SEBI (Debenture Trustee) Regulations, 1993, the SEBI (Issue and Listing of Debt Securities) Regulations, 2008 and the SEBI (Listing Obligations and Disclosure Requirements), 2015.

It approved the proposal of strengthening the role of debenture trustees so as to protect the interest of debenture holders. The debenture trustees shall exercise independent due diligence of the assets on which charge is being created.

“The DT(s) shall take required action by convening the meeting of debenture holders for enforcement of security, joining the inter-creditor agreement (under the framework specified by the RBI), etc,” the statement said.

Debenture trustees shall also carry out continuous monitoring of the asset cover, including obtaining mandatory certificate from the statutory auditor on half-yearly basis.

Further, the issuer company shall create a recovery expense fund at the time of issuance of debt securities that may be utilised by debenture trustees in the event of default, for taking appropriate legal action to enforce the security.

The board of the securities market regulator also approved the amendment of MF Regulations to introduce a Code of Conduct for Fund Managers including Chief Investment Officers and Dealers of AMCs.

Further, the Chief Executive Officer will be responsible to ensure that the Code of Conduct is followed by all such officers.

The Board also approved an amendment to MF Regulations to enable Asset Management Companies to become a self-clearing member of the recognised Clearing Corporations to clear and settle trades in the debt segment of recognised stock exchanges, on behalf of its mutual fund schemes.

It has also approved the proposal to facilitate setting up of a Limited Purpose Repo Clearing Corporation.

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