by admin | May 25, 2021 | Commodities, Commodities News, Commodity Market, Investing, Mutual Fund
New Delhi : The Securities and Exchange Board of India (SEBI) on Friday allowed mutual funds (MFs) and portfolio managers to invest in commodity derivatives to strengthen the market offerings and attract more players.
“The Board deliberated and approved the proposal contained in the memorandum to enable the participation by mutual funds and portfolio managers in exchange traded commodity derivatives in India subject to certain safeguards,” SEBI said after its board meeting here.
“Further, Category III alternative investment funds, which are already permitted to participate in commodity derivatives, have now been permitted to deal with goods received in delivery against physical settlement of such contracts, if any,” the regulator added.
Currently, the commodity markets are dominated by retail level traders and a few corporate hedgers and speculators. The entry of mutual funds and portfolio managers will attract more hedgers to the market and lead to its overall development.
Market players said the SEBI move could offer structured and attractive products to deepen the commodity derivatives market. It would also lead to more participation from the funds.
Institutional participants like mutual funds and portfolio managers will add long-term liquidity to the markets, said the member of a commodity exchange.
The participants in the commodity derivatives market comprise retail and wholesale commodity traders and a few corporate clients and punters across asset classes.
The SEBI also allowed Category III alternative investment funds to trade. Foreign companies with exposure to Indian commodities not having presence in India were also allowed to trade recently.
—IANS
by admin | May 25, 2021 | Branding, Business, Commodity Market, Investing, Large Enterprise, Marketing Basics, Markets, Online Marketing, Social Media, Technology
Rivian Automotive
San Francisco : US online retail giant Amazon is leading a $700-million funding round for electric truck startup Rivian Automotive, Rivian has said.
The latest funds will help produce its first all-electric vehicles — the R1T pickup truck and the seven-seat R1S SUV, which were revealed in the November Los Angeles Auto Show, Xinhua news agency reported.
“This investment is an important shift to sustainable mobility,” said RJ Scaringe, Rivian founder and CEO on Friday.
Scaringe said it was expected to deliver its R1T and R1S SUV to customers by late 2020. “We’re inspired by Rivian’s vision for the future of electric transportation,” said Jeff Wilke, Amazon CEO Worldwide Consumer.
The two vehicles will have up to more than 400 miles (about 644 km) of range with extraordinary performance, off-road capability and utility, said the auto company.
—IANS
by admin | May 25, 2021 | Business, Commodity Market, Investing, Mutual Fund
Mumbai : Capital markets regulator SEBI on Monday granted relaxation to non-residents from furnishing PAN card details to transfer equity shares to their immediate relatives subject to conditions.
According to the SEBI, many non-residents such as Non-Resident Indians (NRIs), Overseas Citizens of India (OCIs), Persons of Indian Origin (PIOs) and foreign nationals have been facing difficulties in transferring shares held by them since many of them do not have PAN card.
“In order to address the difficulties faced by such investors, it has been decided to grant relaxation to non-residents (such as NRIs, PIOs, OCIs and foreign nationals) from the requirement to furnish PAN and permit them to transfer equity shares held by them in listed entities to their immediate relatives…,” the SEBI said in a circular.
Accordingly, the relaxation shall only be available for transfers executed after January 1, 2016.
“The relaxation shall only be available to non-commercial transactions, i.e. transfer by way of gift among immediate relatives,” the circular said.
“The non-resident shall provide copy of an alternate valid document to ascertain identity as well as the non-resident status.”
—IANS
by admin | May 25, 2021 | Commodities, Commodities News, Commodity Market, Economy, Investing, Markets, News, Politics
Greater Noida : Prime Minister Narendra Modi on Monday said that the world has seen crude prices on a roller-coaster ride for too long and there was a need to move to responsible pricing which balances the interests of both the producer and consumer.
Addressing the Petrotech 2019 global energy conference here, Modi also emphasised on transparent and flexible markets for oil and gas.
Modi said he has always maintained that oil and gas were not only a commodity of trade but also of necessity and energy is essential whether it is for the kitchen of a common man or for an aircraft.
“For too long, the world has seen crude prices on a roller-coaster. We need to move to responsible pricing, which balances the interests of both the producer and consumer. We also need to move towards transparent and flexible markets for both oil and gas. Only then can we serve the energy needs of humanity in an optimal manner,” he said.
Modi said energy is also a key driver of socio-economic growth.
“Suitably priced, stable and sustainable energy supply, is essential for rapid growth of the economy. It also helps the poor and deprived sections of society, to partake of economic benefits.
“At the macro level, the energy sector is a pivot and key enabler of growth,” he said.
The Prime Minister said that energy supply, source and consumption patterns were changing and this could be a historic transition.
“There is a shift in energy consumption from the West to East. The US has become the world’s largest oil and gas producer after the shale revolution.”
He said solar energy and other renewable sources of energy had become more competitive and were emerging as sustainable substitutes for traditional energy forms while natural gas is fast becoming one of the largest fuels in the global energy mix.
Modi said people must have universal access to clean, affordable, sustainable and equitable supply of energy.
He said India’s contribution in the onset of an era based on energy justice is significant and the country has shown tremendous resilience as an anchor of the world economy in an uncertain global economic environment.
He said India is the sixth largest economy in the world and could be the second largest global economy by 2030.
“We are also the third largest energy consumer in the world, with demand growing at more than five percent annually. India remains an attractive market for energy companies with energy demand expected to more than double by 2040.”
Modi said India has taken a lead in energy accessibility and will achieve 100 per cent household electrification by the end of this year.
He also noted that the country’s progress is moving to a gas-based economy by bringing clean cooking fuel to poor households.
“Electricity has already reached all rural areas. This year, 100 per cent electrification of households will be achieved through the Saubhagya scheme,” he said.
“Over 6.4 crore households were given LPG connections in just three years under the Ujjwala Scheme. A ‘Blue Flame’ revolution is underway and LPG coverage has reached more than 90 per cent of the population,” said Modi.
Noting that “energy justice” is a priority for his government, the Prime Minister said: “India’s World Bank Ease of Getting Electricity ranking had improved from 111 in 2014 to 29 in 2018.”
He said globally the perception of energy consumption and supply is changing and nations are coming together to tackle climate change.
The Prime Minister also said that signs of convergence between cheaper renewable energy, technologies and digital applications was also becoming evident.
“This may expedite the achievement of Sustainable Development Goals (SDGs). Nations are coming together to tackle climate change,” he stated.
Modi said Petrotech provides “the perfect setting” to ponder over the future of energy sector.
—IANS
by admin | May 25, 2021 | Business, Commodities, Commodities News, Commodity Market, Corporate, Corporate Governance, Investing, SMEs
By Bappaditya Chatterjee,
Kolkata : Targetting 300 million kg of exports by 2020, tea planters have told the government that the key to this lies in incentivising production of orthodox (full leaf) tea and boosting the Merchandise Exports from India Scheme (MEIS).
“We are mainly focusing on exports and have given proposals to incentivising this by increasing the Merchandise Exports from India Scheme (MEIS) reward rate from 5 per cent to 11 per cent,” Indian Tea Association (ITA) immediate past-Chairman Azam Monem told IANS.
The central government was keen on planters producing tea suited for export markets instead of exporting that which is lying surplus, he said.
“To do that, we have to target exportable produce like orthodox tea. We are only making 80-100 million tonnes of orthodox tea and have asked for incentivising its production,” Monem said.
After clocking the highest exports of 256.57 million kg in 2017-18, an ambitious target of 300 million kg by 2020 has been set in the short run. The trend towards a new record in exports was evident in 2017 (January-December) itself as this stood at 251.91 million kg in the year, an increase of 29.46 million kgs over 2016.
ITA Chairman Vivek Goenka told IANS: “Enhancing the current MEIS rate of 5 per cent for bulk tea will be beneficial to become cost competitive in international markets. There are various commodities which have higher rate of MEIS. The orthodox incentive is currently at Rs 3 per kg which is low compared to higher cost of producing it.”
According to the latest data, India’s tea exports during January-November 2018 were at par at 225.76 million kg against 226.04 million kg during same period of the previous year. Exports volumes are expected to be at similar level in the calendar year.
According to a study by rating agency ICRA, global tea production increased 1.8 per cent during the first 10 months of 2018, primarily driven by an increase in the Kenyan crop. This has adversely impacted the Kenyan auction realisation, which corrected by around 12 per cent during January-October 2018.
The Sri Lankan auction realisations, in spite of low production, witnessed a considerable decline of around 10 per cent during the same period, primarily because of the uncertainties arising from the impact of the impending sanctions on Iran.
“We believe incentives would be the key to surpass the level of 250 million kg and otherwise it would be difficult even retaining this. All depends on how we will be able to cope with the international markets, which are a little suppressed. I do not expect Africa to repeat the higher production of over 60-70 million that they did last year. There should be higher penetration by Indian exporters,” Monem said.
Indian exporters are hopeful of gaining shipments to the UK, Russia, China, the UAE and also Iran, a large consumer of orthodox tea.
“We need to tap new markets for orthodox. Chile and Iraq have been targeted though it is difficult to penetrate such markets in a big way as they were dominated by Sri Lanka,” Monem pointed out.
In spite of having a record export in 2017 and shipments being at a similar level during the 11 months of 2018 as against the previous year, “tea prices at the farm gate level remained stagnant”, Bidyananda Barkakoty, Advisor to the North Eastern Tea Association, said, adding that either production needs to be brought down or domestic consumption increased and exports pushed up.
“Cutting down production globally is practically not possible. Achieving 300 million kgs of exports become imperative to have any positive impact at farm gate level price,” Barkakoty told IANS.
(Bappaditya Chaterjee can be contacted at bappaditya.c@ians.in)
—IANS
by admin | May 25, 2021 | Commodity Market, Corporate, Corporate Buzz, Economy, Finance, Investing, Markets, News
New Delhi : D Day has arrived yet again for Reid & Taylor at the National Company Law Tribual (NCLT), with its next hearing slated for February 5 in Mumbai. This is when the fate of the latest bidder Indian Gas Ltd will be decided.
During the hearings, the NCLT Bench has thrown into stark relief that they now don’t believe the Employee Association at all and are even extremely suspicious that there is a definitive effort to sabotage the process of resolution.
In the continuing saga replete with twists and turns by way of bids and withdrawals to participate in the CIRP for Reid & Taylor, despite time of statutory 270 days period having elapsed, Indian Gas Ltd with its last minute bid informing the Bench that the company, which has Rs 1,500 crore net worth, is in the hunt. But recent history may well repeat itself on Tuesday when the new bid is turned out.
The reason being that records of Registrar of Companies reveal that Indian Gas Ltd has total shareholders’ funds of Rs 5,72,31,856 and share capital of Rs 6 crore as on March 31, 2018, according to the Balance Sheet for FY 2017-18.
On closer examination into the internal financials (paid up capital) of the group entities associated with one of the Directors of Indian Gas Ltd, Thamburaj Mohan including Indian Power Projects Ltd (Rs 5 crore), MRC Services Pvt Ltd (Rs 9 lakh), Indian Gas Ltd (Rs 6 crore), Indian Integrated Energy Ltd (Rs 10 crore), Thamara Green farms Pvt Ltd (Rs 1 lakh), Thithukudi Green Farms Pvt Ltd (Rs 1 lakh), Nellai Dry Land Agro Farms Pvt Ltd (Rs 1 lakh), IMP Infra Holding Pvt Ltd (Rs 1 lakh), Venthan Enterprises Pvt Ltd (Rs 1 lakh), MRC Green Energy Pvt Ltd (Rs 1 lakh) amounting up to about Rs 21.15 crore in all.
In reality, in its submission through Rinav Manseta, Indian Gas Ltd had informed the NCLT Mumbai Bench of having a net worth of Rs 1,500 crore.
Another investor SPGP had earlier this month claimed a net worth of Rs 67 crore but eventually could prove a net worth of a meagre Rs 6 crore and then backed out apologizing to the Bench for the company’s inability to participate in the Resolution Process.
The NCLT Mumbai Bench during the hearing had said that only due to the humanitarian angle they had considered a smallest opportunity that was available to the company to revive itself even after the statutory deadline of 270 days had passed.
In the last hearing, the NCLT Mumbai Bench had noted that if the investor (Indian Gas Ltd) fails to deposit non-refundable EMD of Rs 2 crore by February 5, it will be construed that the said the person representing Indian Gas Ltd had made false statements for obtaining adjournment for which they may proceed against this person under section 420 of IPC.
Finquest had opposed the claim of Indian Gas Ltd to participate in the Resolution Process of R&T saying the time of statutory 270 days period should not be extended under any circumstances. Its counsel Zal Andhyarujina said that its client feels that Indian Gas has not come to NCLT with genuine interest.
In one of the hearings, on the issue of KPMG forensic report, the Bench noted that there is no doubt that there was fraud committed by the erstwhile promoters in the company. The Bench had then observed that there was a clear case of fraud that can be treated under IPC also and if required, the Bench can request the police and other authorities to look into it and initiate suitable proceedings.
—IANS
