Topic: Reports and Indices
1. Hurun Research Institute has released Hurun India Future Unicorn Index 2022.
- As per the Hurun India Future Unicorn Index 2022, India will have 122 new unicorns in the next two to four years.
- The index has classified companies into three categories as given next.
- Would-be unicorns (those founded after 2000 and valued at least $1 billion)
- Gazelles (those most likely to become unicorns in the following two years, projected to be worth between $500 million and $1 billion)
- Cheetahs (start-ups that could go unicorn in the next four years)
- Shiprocket, a five-year-old LogisticsTech startup, tops the Gazelles category.
- Shiprocket is followed by Zepto, Turtlemint, Ather Energy and Vivriti Capital.
- Pepperfry tops the ‘Cheetahs’ category. It is followed by Bengaluru-based Juspay and FinTech firm Mswipe Technologies.
- India is third largest ecosystem for start-ups after the US and China.
- Bengaluru continues to be the start-up capital of India with 46 probable Unicorns.
- It is followed by Delhi NCR (25) and Mumbai (16). The report showed Venture capital firm Sequoia is most active investor in India’s start-up ecosystem.
- E-commerce, FinTech, and SaaS comprise 43% of the Future Unicorn Index 2022.
Topic: Banking System
2. Airtel Payments Bank has partnered with Axis Bank.
- As part of the partnership, Airtel Payments Bank will utilize reach of its digital-led neighbourhood banking model to help Axis Bank digitise last mile cash collection.
- Through this partnership, the field agents of Axis Bank can deposit the collected EMI amount at any Airtel Payments Bank outlet in the neighbourhood for transferring to the Axis Bank accounts.
- Customers of Axis Bank will be able to deposit EMI at 5 lakh banking points of Airtel Payments Bank.
- Axis Bank is the third-largest private sector bank in India. It is headquartered in Mumbai. Its MD & CEO is Amitabh Chaudhary.
Topic: Regulatory Bodies/Financial Institutions
3. SEBI has allowed Foreign Portfolio Investors (FPIs) to participate in Exchange-Traded Commodity Derivatives (ETCD) market.
- FPIs will be permitted to trade in all non-agricultural commodity derivatives and a few select broad agricultural commodity derivatives.
- Initially, they will be permitted only in cash-settled contracts.
- Institutional investors like Category III Alternative Investment Funds (AIFs), Portfolio Management Services and Mutual Funds were already permitted by SEBI to participate in ETCD market.
- SEBI has discontinued existing Eligible Foreign Entity (EFE) route, which required actual exposure to Indian physical commodities.
- Now, any FPI who wants to participate in Indian commodity derivatives with or without actual exposure to Indian physical commodities can do so through the FPI route.
- The position limits for FPIs (other than individuals, family offices and corporate bodies) will be at par with those presently applicable for mutual fund schemes.
- FPIs belonging to individuals, family offices and corporates will be permitted a position limit of 20% of the client-level position limit in a particular commodity derivatives contract.
- SEBI Board has also given approval to the creation of Limited Purpose Clearing Corporation (LPCC) for clearing and settlement of corporate bond repo transactions.
Topic: Banking System
4. Kutch Copper Ltd (KCL), a subsidiary of Adani Enterprises Ltd, has raised a debt of ₹6,071 crore by a consortium of banks.
- The consortium of banks is led by State Bank of India (SBI).
- Bank of Baroda, Canara Bank, EXIM Bank of India, Indian Bank, Punjab National Bank, and Bank of Maharashtra are other consortium members.
- Kutch Copper Ltd is establishing a copper refinery project in two phases.
- The consortium of banks has signed an agreement for the total debt requirement of Rs 6,071 crore for the KCL Project’s Phase-1 at Mundra, Gujarat.
5. RBI has imposed Rs 57.50 lakh monetary penalty on Indian Overseas Bank.
- RBI has imposed the monetary penalty for non-compliance with its directions on classification and reporting of frauds by commercial banks and financial institutions.
- RBI has carried out statutory inspection of the Indian Overseas Bank regarding its financial position and found non-compliance with certain directions.
- Indian Overseas Bank:
- It is a nationalized bank headquartered in Chennai.
- It is a government-owned bank. Partha Pratim Sengupta is its MD and CEO.
6. The deregulation of sale of domestically produced crude oil has been approved by Cabinet Committee on Economic Affairs.
- All exploration and production companies will now be free to sell crude oil from their fields in the domestic market.
- However, exports will not be permissible. Government revenues like Royalty, cess, etc. will continue to be determined uniformly across all Contracts.
- The categorization of the Coalition for Disaster Resilient Infrastructure (CDRI) as an International Organization has also been approved by Union Cabinet.
- Coalition for Disaster Resilient Infrastructure (CDRI) initiative:
- The initiative was launched by Prime Minister Narendra Modi on 23 September 2019 at the UN Climate Change Summit.
- Since its launch, six International Organizations, 31 Countries, and two private sector organizations have joined as members of CDRI.
(Source: News on AIR)
7. Science Based Targets initiative (SBTi) has validated IG International’s carbon goals.
- IG International is a fresh fruit importer. Its near-term carbon commitments, the applied methodology and target setting against the Paris Climate Agreement has been assessed and validated by SBTi.
- Paris Climate Agreement is aimed at limiting global warming to 1.5 degrees Celsius.
- Science Based Targets initiative (SBTi):
- It is a partnership between the UN Global Compact, the World Resources Institute, and the Worldwide Fund for Nature.
- It defines and supports best practices in carbon reductions and net-zero targets.
8. 47th meeting of GST Council concluded on 29 June 2022.
- In 47th Meeting, GST Council considered recommendations of four Group of Ministers (GoMs).
- These GoMs dealt with rate rationalisation, movement of gold and precious stones, system reforms, and casinos, horse racing and online gaming.
- All rate changes recommended by the 47th GST Council will be made effective from 18th July, 2022.
- The Council has decided to form a Group of Ministers to address concerns raised by the States in relation to constitution of GST Appellate Tribunal.
- The mandatory registration under CGST Act for supplying goods through e-commerce operators below the threshold of Rs 40 lakh turnover for goods not making any inter-state taxable supply has been removed. This may be effective from January 2023.
- The meeting concluded with no decision on the demand of certain states for extension of GST compensation.
- During the meeting, GST Council decided that the inverted duty structure will be corrected for a number of items. This means rate increase for household items as given in the table.
LED lamps, printing/drawing ink, power driven pumps, Tetra Pak
From 12% to 18%
Solar water heaters, finished leather
From 5% to 12%
Cut and polished diamonds
From 0.25% to 1.5%
- 18% GST will be levied on the fee that banks charge for issue of cheques. GST Council also approved Group of Minister’s plan to end exemptions.
- GST Council also decided that exemptions will be withdrawn for pre-packaged and pre-labelled food items such as grains, curd, lassi, paneer, jaggery, wheat flour, puffed rice, buttermilk and meat/fish (except frozen). Such food items will now be taxed at 5%.
- There will be no refund of accumulated input tax credit (ITC) on goods such as edible oil and coal. Exemptions have also been withdrawn for room rents.
- 12% GST will now be collected on hotel rooms having rent up to Rs 1,000 a day.
- a 5% GST will be collected on hospital room rent above Rs 5,000 per day (excluding ICU).
- GST rate has been reduced for ostomy/ orthopaedic appliances from 12% to 5%.
- GST rate has been reduced for transport of goods and passengers by ropeways from 18% to 5% with input tax credit. These rate changes will be effective July 18.
- The GoM headed by Karnataka Chief Minister Basavaraj Bommai has received a 3-month extension for rate rationalisation measures.
- Presently, online gaming has a dual rate of taxation- 18% on games of skill (not involving betting or gambling) and 28% on games of chance (involving betting and gambling).
- Online gaming apps pay GST at 18%. Casinos and horse racing attract GST of 28%.
- The GoM recommended a uniform 28% GST rate on horse racing, online gaming and casinos.
- The GoM had recommended that online gaming should be taxed at the full value of the consideration and no distinction be made on grounds of game of skill or game of chance for the purpose of the levy of GST.
- On the valuation mechanism for taxing casinos, a Group of Ministers (GoM) headed by Meghalaya Chief Minister Conrad Sangma has been asked to submit its report by July 15.
- The report of the GoM will be considered in next meeting, which may take place during first week of August at Madurai.