News Nook: Dec 4, 2024

Indian Sector Specific News:

A) BFSI:

1) RBI Pushes Banks to Reactivate Frozen Accounts

• The RBI has asked banks to simplify the process of activating frozen accounts, especially for economically weaker people, by organizing special campaigns like Aadhaar updates and ensuring smooth KYC updates.
• Many accounts linked to government schemes like Direct Benefit Transfers were frozen due to incomplete KYC. RBI wants banks to fix these issues quickly to ensure funds reach beneficiaries without problems.
• Source: Economic Times

2) SEBI's New Rules on Index Derivatives

• SEBI has restricted weekly expiry contracts to only one index since November 20, 2024, to curb excessive speculative trading and promote market stability.
• Traders, brokers, and exchanges are adjusting to the new framework, which aims to reduce gambling-like behavior in derivative markets.
• Source: Moneycontrol

3) Adani Group Seeks SEBI Settlement Over Shareholding Violation

• The Adani Group has approached SEBI to settle allegations of misclassifying shareholdings and violating minimum public shareholding rules, which date back to 2020.
• SEBI has demanded ₹2,500 crore from Adani entities, with directors from Adani Enterprises and Ambuja Cements also proposing settlements.
• Source: Livemint

4) SEBI Cancels Trafiksol SME IPO, Orders Refund

• SEBI has canceled Trafiksol ITS Technologies' SME IPO, which was under BSE investigation, and directed the company to refund investors within one week under BSE supervision.
• Post-refund, the allocated shares will be transferred to a company-held demat account for cancellation, ensuring investor protection.
• Source: Economic Times

B) Automobile:

1) IndiGo Sues Mahindra Over '6E' Trademark in Electric Car Name

• IndiGo has filed a trademark lawsuit against Mahindra Electric for using '6E' in its upcoming BE 6E electric car, claiming it could dilute the airline's brand and confuse consumers.
• The Delhi High Court deferred the case after Justice Amit Bansal recused himself, with the next hearing set for December 9, 2024.
• Source: Business Standard

C) Pharma:

1) PMBI Blacklists Six Medicine Suppliers for Quality Non-Compliance

• Over the past five years, PMBI has blacklisted six suppliers, including ANG Lifescience and Ridley Life Science, for failing to meet quality standards in medicines supplied to Jan Aushadhi Kendras.
• PMBI ensures quality by procuring only from WHO-GMP-certified suppliers and testing each drug batch in NABL-accredited labs before distribution.
• Source: Pharmabiz

D) Telecommunication:

1) New Telecom Suspension Rules Notified

• The Department of Telecommunications issued the Telecommunication (Temporary Suspension of Services) Rules, 2024, on November 22, under the Telecom Act, 2023.
• Draft rules were released earlier for public consultation, but stakeholder responses remain undisclosed.
• Source: Internet Freedom Foundation (IFF)

E) Agriculture:

1) Government Initiatives to Boost Agricultural Industry

• The government is supporting agricultural innovation through financial assistance under the "Innovation and Agri-Entrepreneurship Development" program, offering up to Rs. 25 lakh to startups in agriculture and allied sectors for scaling up.
• The Agriculture Infrastructure Fund (AIF) scheme provides loans to support infrastructure projects and facilitates sustainable farming, aiming to reach ₹1 lakh crore by 2025-26 while promoting innovation, rural industrialization, and collaboration between entrepreneurs and farmers.
• Source: PIB Delhi

F) Energy:

1) India's Natural Gas Consumption Trends in October 2024

• India's natural gas consumption reached 6019 MMSCM in October 2024, with the fertilizer sector leading at 29%, followed by CGD at 21%, and power generation at 11%.
• The CGD sector saw a 7% increase in demand, while the power sector experienced a 23% drop in consumption, and the fertilizer sector reported a 9% decline compared to the previous year.
• Source: Economic Times

2) Rajya Sabha Passes Bill to Boost Oil and Gas Investment

• The Rajya Sabha passed the Oilfields (Regulation and Development) Amendment Bill, 2024, which aims to enhance investment in oil and gas exploration.
• The bill was introduced in August 2024 and passed through a voice vote.
• Source: Economic Times

3) India's Power Consumption Grows 5% in November 2024

• India's power consumption increased by 5.14% to 125.44 billion units (BU) in November 2024, compared to 119.30 BU in November 2023.
• Peak power demand rose slightly to 207.42 GW in November 2024 from 204.56 GW in the same month last year.
• Source: Business Standard

G) FMCG:

1) The Bear House to Open Six New Stores by 2025

• The Bear House plans to expand its retail presence with six new stores in Bengaluru, Hyderabad, New Delhi, and Mumbai by 2025, each covering around 2,000 sq. ft.
• This expansion is part of the brand's strategy to enhance its omni-channel approach, combining online convenience with in-store experiences to cater to rising demand in key metropolitan regions.
• Source: Indian Retailer

H) Infrastructure:

1) ED Seizes Luxury Cars and Assets in Orris Group Real Estate Fraud Probe

• The Enforcement Directorate (ED) seized luxury cars, Fixed Deposits (FDs), and Bank Guarantees worth ₹31.22 crore during raids at 14 locations in Delhi-NCR, related to an alleged ₹500 crore real estate fraud.
• Four luxury cars, including Mercedes, Porsche, and BMW models, were seized from the residence of one of Orris Group's promoters, and their bank accounts and lockers were frozen.
• Source: Hindustan Times

Indian Economy and Government Initiatives:

• Congress criticized the Modi government for India's slowing GDP growth, blaming its economic policies for rising unemployment, inflation, and inequality.
• Critics argue that India's focus on large, centralized solar power plants, supported by government subsidies, benefits corporations like the Adani Group while neglecting decentralized solutions that could directly empower consumers and reduce energy costs.

Bonus Briefs:

• The Japanese Yen is getting stronger compared to other major currencies, which suggests that investors are becoming more cautious and risk-averse. However, the US stock market hasn't been affected by this change yet, and it's uncertain when it will start to notice these warning signs.
• The U.S.-China tensions and the shift toward industrial policies have led to the formation of a new trade, finance, and currency bloc.
• France's decision to cancel a planned budget reform has boosted European stock markets, including France's CAC 40, and positively impacted U.S. stocks, while concerns about interest rate changes by the ECB and Fed, along with global economic shifts, are keeping investors cautious.