General Affairs
In A First, Joint BIMSTEC Military Exercises Begin Near Pune
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In a first such initiative, militaries of BIMSTEC member nations barring Nepal today began a week-long anti-terror exercise at Aundh near Pune to enhance cooperation in dealing with the challenge of terrorism in the region.
Indian Army officials said the exercise is focused on boosting inter-operability among the forces and exchanging best practices to contain terror related activities.
The exercise is taking place nearly two weeks after leaders of the BIMSTEC (Bay of Bengal Initiative for Multi-Sectoral Technical and Economic Cooperation) countries, in their summit talks in Kathmandu, resolved to join hands to combat the scourge of terrorism effectively.
The Nepal government has decided against participating in the military drill.
The BIMSTEC is a regional grouping comprising Bangladesh, India, Myanmar, Sri Lanka, Thailand, Bhutan and Nepal. The grouping accounts for 22 per cent of the global population, and has a combined gross domestic product of USD 2.8 trillion.
The officials said special "tactical level" anti-terror operations will be practiced in semi urban setting.
"It is the most significant military exercise in the region in recent years," Indian Army spokesperson Col Aman Anand said.
India has been pushing for making the BIMSTEC a vibrant form for regional collaboration as cooperation under the SAARC (South Asian Association of Regional Cooperation) framework was not moving forward.
Citing continuing support to cross-border terrorism from Pakistan, India has been maintaining that it was difficult to proceed with SAARC initiative under current circumstances. BIMSTEC excludes Pakistan.
During the Kathmandu summit, the leaders deliberated on a range of issues including ways to effectively deal with terrorism and radicalisation.
India had organised the BIMSTEC Leaders' Retreat in Goa in October 2016 during which the grouping had endorsed New Delhi's effort to corner Pakistan on terror.
Indian Army officials said the exercise is focused on boosting inter-operability among the forces and exchanging best practices to contain terror related activities.
The exercise is taking place nearly two weeks after leaders of the BIMSTEC (Bay of Bengal Initiative for Multi-Sectoral Technical and Economic Cooperation) countries, in their summit talks in Kathmandu, resolved to join hands to combat the scourge of terrorism effectively.
The Nepal government has decided against participating in the military drill.
The BIMSTEC is a regional grouping comprising Bangladesh, India, Myanmar, Sri Lanka, Thailand, Bhutan and Nepal. The grouping accounts for 22 per cent of the global population, and has a combined gross domestic product of USD 2.8 trillion.
The officials said special "tactical level" anti-terror operations will be practiced in semi urban setting.
"It is the most significant military exercise in the region in recent years," Indian Army spokesperson Col Aman Anand said.
India has been pushing for making the BIMSTEC a vibrant form for regional collaboration as cooperation under the SAARC (South Asian Association of Regional Cooperation) framework was not moving forward.
Citing continuing support to cross-border terrorism from Pakistan, India has been maintaining that it was difficult to proceed with SAARC initiative under current circumstances. BIMSTEC excludes Pakistan.
During the Kathmandu summit, the leaders deliberated on a range of issues including ways to effectively deal with terrorism and radicalisation.
India had organised the BIMSTEC Leaders' Retreat in Goa in October 2016 during which the grouping had endorsed New Delhi's effort to corner Pakistan on terror.
Sonia Gandhi, Son Rahul's Request In Tax Case Rejected By High Court
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Congress leaders Sonia Gandhi and son Rahul Gandhi's requests challenging the reopening of their tax assessment for the year 2011-12 was dismissed by the Delhi High Court on Monday.
"The writ petitions have failed... the I-T department has powers to reopen tax proceedings. Petitioners can approach I-T department with grievances," the judges were quoted as saying.
The Income Tax Department in March this year had served a notice to the Gandhis saying that their tax filings will be reviewed. The Congress leaders had challenged the notice in the court.
The judges also dismissed the petition of Congress leader Oscar Fernandes who too had challenged the reopening of his tax assessment for the same year.
Earlier this year in May, the Delhi High Court had refused to stop an income tax investigation into Young Indian, a company which has Sonia and Rahul Gandhi as its main stakeholders, asking it to first approach tax authorities.
At the heart of the case was Associated Journals Limited, publisher of three newspapers, including the National Herald, an English daily founded and edited by Jawaharlal Nehru before he became India's first prime minister.
In 2008, the company shut down with an alleged unpaid debt of about 90 crore rupees.
BJP leader Subramanian Swamy has accused Rahul Gandhi, PM Nehru's great-grandson, and Sonia, of setting up Young Indian Company to buy the debt using Congress party funds even though Associated Journals allegedly had real estate assets worth at least 2,000 crores, which would have cleared the debt.
Mr Swamy alleged that the Young Indian Company then owned all of the equity in Associated Journals and rented out its properties to profit its shareholders, including Rahul and Sonia Gandhi, who together controlled 76 per cent.
The Gandhis in January 2016 won an appeal to be exempted from personal appearances in court to answer allegations that they used their leadership of the Congress to misuse party funds for personal profit.
"The writ petitions have failed... the I-T department has powers to reopen tax proceedings. Petitioners can approach I-T department with grievances," the judges were quoted as saying.
The Income Tax Department in March this year had served a notice to the Gandhis saying that their tax filings will be reviewed. The Congress leaders had challenged the notice in the court.
The judges also dismissed the petition of Congress leader Oscar Fernandes who too had challenged the reopening of his tax assessment for the same year.
Earlier this year in May, the Delhi High Court had refused to stop an income tax investigation into Young Indian, a company which has Sonia and Rahul Gandhi as its main stakeholders, asking it to first approach tax authorities.
At the heart of the case was Associated Journals Limited, publisher of three newspapers, including the National Herald, an English daily founded and edited by Jawaharlal Nehru before he became India's first prime minister.
In 2008, the company shut down with an alleged unpaid debt of about 90 crore rupees.
BJP leader Subramanian Swamy has accused Rahul Gandhi, PM Nehru's great-grandson, and Sonia, of setting up Young Indian Company to buy the debt using Congress party funds even though Associated Journals allegedly had real estate assets worth at least 2,000 crores, which would have cleared the debt.
Mr Swamy alleged that the Young Indian Company then owned all of the equity in Associated Journals and rented out its properties to profit its shareholders, including Rahul and Sonia Gandhi, who together controlled 76 per cent.
The Gandhis in January 2016 won an appeal to be exempted from personal appearances in court to answer allegations that they used their leadership of the Congress to misuse party funds for personal profit.
Supreme Court Issues Notice To CBSE On Plea Alleging Fee Violation Order
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The Supreme Court on Monday issued notice to the CBSE on a plea seeking contempt action against the board for allegedly "disobeying" the top court's order and charging exorbitant fees of up to Rs. 1,200 from students for obtaining copies of evaluated answer-sheets.
A bench of Justices Ranjan Gogoi, Navin Sinha and K M Joseph asked the Central Board of Secondary Education (CBSE) to respond to the plea within six weeks.
The contempt plea has alleged that the CBSE has wilfully and deliberately disobeyed the directions of the apex court, which had in 2016 said that the board should 'scrupulously' follow its 2011 verdict holding that the students have the fundamental and legal right to access their evaluated answer-sheets under the Right to Information Act.
It has claimed that despite the apex court's direction, the CBSE had published a notification prescribing fee of Rs. 1,000 and Rs. 1,200 for students of Class 10th and 12th respectively to obtain the evaluated answer-sheets.
The petition has claimed that as per the court's direction, the fee prescribed under the 2012 RTI Rules should be charged from the students for obtaining the answer-sheets.
It sought setting aside of the CBSE notification prescribing fee of Rs. 1,000 and Rs. 1,200 for the students for obtaining copies of the evaluated answer-sheets.
The plea has also sought a direction to the CBSE to provide copies of evaluated answer-sheets to the examinee's only as per provisions of the RTI Act, 2005 and at the fees prescribed under 2012 Rules.
A bench of Justices Ranjan Gogoi, Navin Sinha and K M Joseph asked the Central Board of Secondary Education (CBSE) to respond to the plea within six weeks.
The contempt plea has alleged that the CBSE has wilfully and deliberately disobeyed the directions of the apex court, which had in 2016 said that the board should 'scrupulously' follow its 2011 verdict holding that the students have the fundamental and legal right to access their evaluated answer-sheets under the Right to Information Act.
It has claimed that despite the apex court's direction, the CBSE had published a notification prescribing fee of Rs. 1,000 and Rs. 1,200 for students of Class 10th and 12th respectively to obtain the evaluated answer-sheets.
The petition has claimed that as per the court's direction, the fee prescribed under the 2012 RTI Rules should be charged from the students for obtaining the answer-sheets.
It sought setting aside of the CBSE notification prescribing fee of Rs. 1,000 and Rs. 1,200 for the students for obtaining copies of the evaluated answer-sheets.
The plea has also sought a direction to the CBSE to provide copies of evaluated answer-sheets to the examinee's only as per provisions of the RTI Act, 2005 and at the fees prescribed under 2012 Rules.
With Tejas Fighter Jet's Milestone, India Lands In Elite Club
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In a big achievement, a made-in-India Tejas fighter jet today refuelled mid-air placing India in an elite group of countries having air-to-air refuelling system for military planes. The aircraft is being manufactured by Hindustan Aeronautics Limited and some dry runs were conducted earlier.
The milestone was achieved at 9.30 am when 1,900 kg of fuel was transferred from the mid-air refuelling tanker of IAF's IL78 to the Tejas LSP8 at an altitude of 20,000 feet, HAL said in a release.
The refueling increases the fighter jets endurance and adds a lethal punch. Apart from this, it also increases its range. The feat was achieved days after the Indian Air Force (IAF) successfully did a dry run of mid-air refuelling using the Russian-built IL-78 MKI tanker.
The IAF IL78 was piloted by Wing Commander Siddharth Singh with designers from HAL and Aeronautical Development Agency monitoring the system parameteres from the Gwalior ground station.
According to HAL, the speed of Tejas was 270 knots when all the internal tanks and drop tanks were refuelled.
The Indian Air Force currently operates nine Tejas fighters built to an Initial Operating Clearance standard. These jets are being flown by No. 45 Squadron, the Flying Daggers, based at Sulur Air Force Station in Tamil Nadu.
There are still a handful of development strides that the Tejas needs to achieve to be the multi-role jet the Indian Air Force seeks. Though Israeli built Derby air-to-air missiles have been successfully integrated onto the Tejas, the jet still needs to integrate a Russian built GSh-23 gun besides expanding its flight envelope.
Simultaneously, the Tejas needs to be more easy to maintain, a process that engineers at Hindustan Aeronautics are working on. Pilots at the National Flight Test Centre will also be testing the Tejas's low-speed recovery system, a safety feature designed to automatically increase thrust to the engine in the event that the fighter is flown at close to the speed at which it can stall mid-air.
The milestone was achieved at 9.30 am when 1,900 kg of fuel was transferred from the mid-air refuelling tanker of IAF's IL78 to the Tejas LSP8 at an altitude of 20,000 feet, HAL said in a release.
The refueling increases the fighter jets endurance and adds a lethal punch. Apart from this, it also increases its range. The feat was achieved days after the Indian Air Force (IAF) successfully did a dry run of mid-air refuelling using the Russian-built IL-78 MKI tanker.
The IAF IL78 was piloted by Wing Commander Siddharth Singh with designers from HAL and Aeronautical Development Agency monitoring the system parameteres from the Gwalior ground station.
According to HAL, the speed of Tejas was 270 knots when all the internal tanks and drop tanks were refuelled.
The Indian Air Force currently operates nine Tejas fighters built to an Initial Operating Clearance standard. These jets are being flown by No. 45 Squadron, the Flying Daggers, based at Sulur Air Force Station in Tamil Nadu.
There are still a handful of development strides that the Tejas needs to achieve to be the multi-role jet the Indian Air Force seeks. Though Israeli built Derby air-to-air missiles have been successfully integrated onto the Tejas, the jet still needs to integrate a Russian built GSh-23 gun besides expanding its flight envelope.
Simultaneously, the Tejas needs to be more easy to maintain, a process that engineers at Hindustan Aeronautics are working on. Pilots at the National Flight Test Centre will also be testing the Tejas's low-speed recovery system, a safety feature designed to automatically increase thrust to the engine in the event that the fighter is flown at close to the speed at which it can stall mid-air.
New Exoplanet Twice The Size Of Earth Found 245 Light Years Away
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Using data from NASA's Kepler Space Telescope, an international team of scientists has discovered a new exoplanet twice the size of Earth and about 145 light years away.
The exoplanet 'Wolf 503b' is in the Virgo constellation and it orbits its star every six days and is thus very close to it, about 10 times closer than Mercury is to the Sun.
"'Wolf 503b' is one of the only planets with a radius near the gap that has a star that is bright enough to be amenable to more detailed study that will better constrain its true nature," explained Bjorn Benneke, Professor at the Universite de Montreal in Canada.
"It provides a key opportunity to better understand the origin of this radius gap as well as the nature of the intriguing populations of 'super-Earths' and 'sub-Neptunes' as a whole," he said.
In order to better characterise the system 'Wolf 503b' is part of, the astronomers first obtained a spectrum of the host star at the NASA Infrared Telescope Facility.
This confirmed the star is an old "orange dwarf", slightly less luminous than the Sun but about twice as old, and allowed a precise determination of the radius of both the star and its companion, the researchers explained, in a paper published in the Astronomical Journal.
Further, the 'Wolf 503b' system is relatively closer to Earth, and thus very bright.
"By investigating the nature of 'Wolf 503b', we'll understand more about the structure of planets near the radius gap and more generally about the diversity of exoplanets present in our galaxy," said Merrin Peterson, a graduate student at the varsity.
The exoplanet 'Wolf 503b' is in the Virgo constellation and it orbits its star every six days and is thus very close to it, about 10 times closer than Mercury is to the Sun.
"'Wolf 503b' is one of the only planets with a radius near the gap that has a star that is bright enough to be amenable to more detailed study that will better constrain its true nature," explained Bjorn Benneke, Professor at the Universite de Montreal in Canada.
"It provides a key opportunity to better understand the origin of this radius gap as well as the nature of the intriguing populations of 'super-Earths' and 'sub-Neptunes' as a whole," he said.
In order to better characterise the system 'Wolf 503b' is part of, the astronomers first obtained a spectrum of the host star at the NASA Infrared Telescope Facility.
This confirmed the star is an old "orange dwarf", slightly less luminous than the Sun but about twice as old, and allowed a precise determination of the radius of both the star and its companion, the researchers explained, in a paper published in the Astronomical Journal.
Further, the 'Wolf 503b' system is relatively closer to Earth, and thus very bright.
"By investigating the nature of 'Wolf 503b', we'll understand more about the structure of planets near the radius gap and more generally about the diversity of exoplanets present in our galaxy," said Merrin Peterson, a graduate student at the varsity.
Business Affairs
Raghuram Rajan blames 'over optimistic bankers' for bad loans, NPA mess
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Former RBI Governor Raghuram Rajan is said to have blamed the 'over optimism of bankers' and 'growth slowdown' for sky-high non-performing assets (NPAs) in his reply to 30-member Lok Sabha Committee on Estimates. The panel, headed by BJP veteran Murli Manohar Joshi, had asked Rajan for a briefing on the banking sector's mounting bad loans.
According to CNBC-TV18, Raghuram Rajan told the panel that banks didn't do 'due diligence' on large loans and relied on promoter, SBI Capital Markets and IDBI. The former RBI governor added that post-2008 slowdown made growth projections of banks unrealistic.
Rajan reportedly blamed the policy paralysis that delayed the ongoing projects due to slow decision-making in the UPA government after it was accused of various scams.
The former RBI chief is learnt to have said that banks extended more loans to prevent 'zombie' loans from turning non-performing assets. The laws didn't allow banks to seize property and banks chose to evergreen loans, Rajan reportedly told the committee.
Holding banks' management accountable, the former RBI boss said that high NPAs were due to bankers' exuberance, incompetence and corruption. He also blamed lack of monitoring and extending loans to companies which had history of defaults.
Bad loans touched Rs 8.99 lakh crore as of December 31, 2017, with PSBs accounting for over 86 per cent of the pie.
Rajan, who was RBI governor for three years till September 2016, is currently the Katherine Dusak Miller Distinguished Service Professor of Finance at Chicago Booth School of Business.
A member of the committee had earlier told India Today that Joshi wrote a letter to Rajan on August 7, where he said that the "committee admires his experience and knowledge and if he is unable to testify to the summons in person, the committee would like a written testimony of his expert view on the NPA crisis, how it has been created and how India should tackle it".
Refuting the notion of slow credit growth under his tenure, Rajan said that PSU banks' personal and housing loans didn't slow despite Asset Quality Review (AQR).
Niti Aayog vice chairman Rajiv Kumar had recently said that it wasn't demonetisation but deleveraging of credit under Rajan's tenure that led to economic slowdown.
Pinning the blame squarely on Rajan's policies as governor of central bank, Kumar had said the economic growth was declining due to rising NPAs in the banking sector. "When this government came into office, this figure was about 4 lakh crore. It rose to 10.5 lakh crore by the middle of 2017," he added.
"Under the former RBI Governor Raghuram Rajan, they had instituted new mechanisms to identify stressed and non performing assets. This is why the banking sector stopped giving credit to the industry. In fact, in some cases like MSMEs, credit growth shrank. Even in the large industries, the growth of credit came down to measly 1 per cent in some quarters," Niti Aayog vice chairman had claimed.
"This has been the highest deleveraging of commercial credit to the industry in India's economic history," Kumar had said.
According to CNBC-TV18, Raghuram Rajan told the panel that banks didn't do 'due diligence' on large loans and relied on promoter, SBI Capital Markets and IDBI. The former RBI governor added that post-2008 slowdown made growth projections of banks unrealistic.
Rajan reportedly blamed the policy paralysis that delayed the ongoing projects due to slow decision-making in the UPA government after it was accused of various scams.
The former RBI chief is learnt to have said that banks extended more loans to prevent 'zombie' loans from turning non-performing assets. The laws didn't allow banks to seize property and banks chose to evergreen loans, Rajan reportedly told the committee.
Holding banks' management accountable, the former RBI boss said that high NPAs were due to bankers' exuberance, incompetence and corruption. He also blamed lack of monitoring and extending loans to companies which had history of defaults.
Bad loans touched Rs 8.99 lakh crore as of December 31, 2017, with PSBs accounting for over 86 per cent of the pie.
Rajan, who was RBI governor for three years till September 2016, is currently the Katherine Dusak Miller Distinguished Service Professor of Finance at Chicago Booth School of Business.
A member of the committee had earlier told India Today that Joshi wrote a letter to Rajan on August 7, where he said that the "committee admires his experience and knowledge and if he is unable to testify to the summons in person, the committee would like a written testimony of his expert view on the NPA crisis, how it has been created and how India should tackle it".
Refuting the notion of slow credit growth under his tenure, Rajan said that PSU banks' personal and housing loans didn't slow despite Asset Quality Review (AQR).
Niti Aayog vice chairman Rajiv Kumar had recently said that it wasn't demonetisation but deleveraging of credit under Rajan's tenure that led to economic slowdown.
Pinning the blame squarely on Rajan's policies as governor of central bank, Kumar had said the economic growth was declining due to rising NPAs in the banking sector. "When this government came into office, this figure was about 4 lakh crore. It rose to 10.5 lakh crore by the middle of 2017," he added.
"Under the former RBI Governor Raghuram Rajan, they had instituted new mechanisms to identify stressed and non performing assets. This is why the banking sector stopped giving credit to the industry. In fact, in some cases like MSMEs, credit growth shrank. Even in the large industries, the growth of credit came down to measly 1 per cent in some quarters," Niti Aayog vice chairman had claimed.
"This has been the highest deleveraging of commercial credit to the industry in India's economic history," Kumar had said.
Looking to park money for short term? Consider this instrument for 9.1% return
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Looking to invest money for short-term, but equities are not your cup of tea? You may consider investing in a fixed-income instrument as one from Tata Group's stable has just hit markets. Tata Capital Financial Services Limited (TCFSL), a wholly-owned subsidiary of Tata Capital and a non-deposit taking Non-Banking Financial Company (NBFC), launched secure and non-secure non-convertible debentures (NCDs) on Monday, offering up to 9.1 per cent interest rates for various time frames.
In its maiden NCD offering, Tata Capital Financial is looking to raise up to Rs 7,500 crore, of which, base issue size is worth Rs 2,000 with an option to retain over-subscription of up to Rs 7,500 crore. The issue opened for subscription on Monday, and will close on September 21, with an option for early closure or extension as decided by the company's board. Before we come to the details of the issue, let's understand what NCDs are:
What are NCDs?
NCDs are debt financial instruments with a fixed tenure. These are issued by companies to raise capital for business purposes. Unlike convertible debentures, NCDs can't be converted into equity shares of the issuing company at a future date. The interest rate on NCDs is higher than traditional instruments such as fixed deposits (FDs) or recurring deposits (RDs) and these are fairly liquid, too, i.e. one can sell their NCDs before maturity in the secondary market.
Tax implications on NCDs
There is no tax deducted at source (TDS) on NCDs, but the interest income on them is taxed as per individual's tax slabs. If you sell it before one-year in the secondary market, a short-term capital gain tax is levied as per your tax slabs, while long-term capital gains tax is imposed at 20 per cent rate with indexation.
Tata Capital NCD: Interest rates and tenures
NCDs are available in three tenures: Three years, five years and ten years, and the coupon interest rates on them are between 8.8 per cent and 9.1 per cent payable every year.
1) 3-year secured NCD: 8.8 per cent per annum
2) 5-year secured NCD: 8.9 per cent per annum
3) 10-year un-secured NCD: 9.1 per cent per annum
Face value, minimum investment
The face value of the NCD bond is Rs 1000, and buying minimum 10 bonds are mandatory i.e. you need to invest at least Rs 10,000 and in the multiple of Rs 1000 thereafter.
Allocations will be made on first-come, first-served basis with 30 per cent of the issue size reserved for retail category. The cut-off amount of investment to be classified as retail category is Rs 10 lakhs across options of the NCD.
Credit rating
Rating agencies Crisil and Care have assigned 'highest degree of safety' rating i.e. AAA rating to the issue.
Should you invest?
While interest rates are on a higher trajectory, the rates on FDs are still hovering around 7 per cent. That said, secured NCDs with a stable rating could be a better option for short to medium term, but one should avoid investing in them for long-term as these are prone to interest rate risk. When interest rates rise, prices of fixed income securities fall and when interest rates drop, the prices increase.
Brokerage ICICI Securities advise subscribing to the Tata Capital NCD as they believe the rates offered are attractive.
"Interest rates offered by AAA-rated corporate, have seen a sharp up move with yield on three-year AAA rated bonds rising, from 7.1 per cent in September 2017 to 8.8 per cent in September 2018, a rise of 170 bps in one year. The higher spread between inflation and bond yield is indicating that the current higher yield offered by good rated companies is a good investment opportunity," the brokerage said in a research note.
In its maiden NCD offering, Tata Capital Financial is looking to raise up to Rs 7,500 crore, of which, base issue size is worth Rs 2,000 with an option to retain over-subscription of up to Rs 7,500 crore. The issue opened for subscription on Monday, and will close on September 21, with an option for early closure or extension as decided by the company's board. Before we come to the details of the issue, let's understand what NCDs are:
What are NCDs?
NCDs are debt financial instruments with a fixed tenure. These are issued by companies to raise capital for business purposes. Unlike convertible debentures, NCDs can't be converted into equity shares of the issuing company at a future date. The interest rate on NCDs is higher than traditional instruments such as fixed deposits (FDs) or recurring deposits (RDs) and these are fairly liquid, too, i.e. one can sell their NCDs before maturity in the secondary market.
Tax implications on NCDs
There is no tax deducted at source (TDS) on NCDs, but the interest income on them is taxed as per individual's tax slabs. If you sell it before one-year in the secondary market, a short-term capital gain tax is levied as per your tax slabs, while long-term capital gains tax is imposed at 20 per cent rate with indexation.
Tata Capital NCD: Interest rates and tenures
NCDs are available in three tenures: Three years, five years and ten years, and the coupon interest rates on them are between 8.8 per cent and 9.1 per cent payable every year.
1) 3-year secured NCD: 8.8 per cent per annum
2) 5-year secured NCD: 8.9 per cent per annum
3) 10-year un-secured NCD: 9.1 per cent per annum
Face value, minimum investment
The face value of the NCD bond is Rs 1000, and buying minimum 10 bonds are mandatory i.e. you need to invest at least Rs 10,000 and in the multiple of Rs 1000 thereafter.
Allocations will be made on first-come, first-served basis with 30 per cent of the issue size reserved for retail category. The cut-off amount of investment to be classified as retail category is Rs 10 lakhs across options of the NCD.
Credit rating
Rating agencies Crisil and Care have assigned 'highest degree of safety' rating i.e. AAA rating to the issue.
Should you invest?
While interest rates are on a higher trajectory, the rates on FDs are still hovering around 7 per cent. That said, secured NCDs with a stable rating could be a better option for short to medium term, but one should avoid investing in them for long-term as these are prone to interest rate risk. When interest rates rise, prices of fixed income securities fall and when interest rates drop, the prices increase.
Brokerage ICICI Securities advise subscribing to the Tata Capital NCD as they believe the rates offered are attractive.
"Interest rates offered by AAA-rated corporate, have seen a sharp up move with yield on three-year AAA rated bonds rising, from 7.1 per cent in September 2017 to 8.8 per cent in September 2018, a rise of 170 bps in one year. The higher spread between inflation and bond yield is indicating that the current higher yield offered by good rated companies is a good investment opportunity," the brokerage said in a research note.
Last date for filing GSTR 1 for July 2017 to September 2018 extended till October 31
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The Finance Ministry on Monday extended the last date for filing final sales return GSTR-1 for July 2017 to September 2018 period till October 31 and also waived the late fee for the delayed filing of returns.
It said that the number of taxpayers who have filed summary sales return GSTR-3B is substantially higher than the number of taxpayers who furnished GSTR-1.
"In order to encourage taxpayers to furnish Form GSTR-1, a one-time scheme to waive late fee payable for delayed furnishing of GSTR-1 for the period from July 2017 to September 2018 till October 31, 2018, has been launched," the ministry said.
Under the Goods and Services Tax (GST), businesses with a turnover of over Rs 1.5 crore has to file final sales return or GSTR-1 by the 11th of next month. Accordingly, GSTR-1 for the month of September 2018, was required to be filed by October 11, 2018. This date has now been extended to October 31.
For taxpayers having aggregate turnover up to Rs 1.5 crore, the due date for furnishing GSTR-1 for the quarters from July 2017 to September 2018, too has been extended till October 31, 2018.
Businesses with a turnover of up to Rs 1.5 crore can file returns quarterly with returns for one quarter needed to be filed by the 31st day of next month.
"For registered persons having aggregate turnover up to Rs 1.5 crores in Kerala, or whose principal place of business is in Kodagu (Karnataka) and Mahe (Puducherry), the due date for furnishing GSTR-1 for the quarter July 2018 to September 2018 would continue to remain as November 15, 2018," the ministry said.
It further said that those taxpayers who will now be migrating to GST the last date for furnishing the details of outward supplies of goods or services or both in GSTR-1 and for filing the return in GSTR-3B for the months of July 2017 to November 2018 has been extended till December 31, 2018.
".... the registered person shall not be entitled to take input tax credit in respect of any invoice after the due date of furnishing of the return for the month of September following the end of financial year to which such invoice pertains; or furnishing of the relevant annual return, whichever is earlier. The taxpayers are thus, advised to furnish their returns on time to ensure that input tax credit does not become time barred," the ministry added.
AMRG & Associates Partner Rajat Mohan said, "This extension would entitle taxpayers to enjoy an additional window to correct their errors in tax filings before the tax credit for the recipients become time-barred for the financial year 2017-2018. Taxpayers should take this additional time to reconcile their books with customers before filing GSTR -1 for the month of September 2018".
Goods and Services Tax (GST), which subsumes 17 local taxes, was rolled out on July 1, 2017.
It said that the number of taxpayers who have filed summary sales return GSTR-3B is substantially higher than the number of taxpayers who furnished GSTR-1.
"In order to encourage taxpayers to furnish Form GSTR-1, a one-time scheme to waive late fee payable for delayed furnishing of GSTR-1 for the period from July 2017 to September 2018 till October 31, 2018, has been launched," the ministry said.
Under the Goods and Services Tax (GST), businesses with a turnover of over Rs 1.5 crore has to file final sales return or GSTR-1 by the 11th of next month. Accordingly, GSTR-1 for the month of September 2018, was required to be filed by October 11, 2018. This date has now been extended to October 31.
For taxpayers having aggregate turnover up to Rs 1.5 crore, the due date for furnishing GSTR-1 for the quarters from July 2017 to September 2018, too has been extended till October 31, 2018.
Businesses with a turnover of up to Rs 1.5 crore can file returns quarterly with returns for one quarter needed to be filed by the 31st day of next month.
"For registered persons having aggregate turnover up to Rs 1.5 crores in Kerala, or whose principal place of business is in Kodagu (Karnataka) and Mahe (Puducherry), the due date for furnishing GSTR-1 for the quarter July 2018 to September 2018 would continue to remain as November 15, 2018," the ministry said.
It further said that those taxpayers who will now be migrating to GST the last date for furnishing the details of outward supplies of goods or services or both in GSTR-1 and for filing the return in GSTR-3B for the months of July 2017 to November 2018 has been extended till December 31, 2018.
".... the registered person shall not be entitled to take input tax credit in respect of any invoice after the due date of furnishing of the return for the month of September following the end of financial year to which such invoice pertains; or furnishing of the relevant annual return, whichever is earlier. The taxpayers are thus, advised to furnish their returns on time to ensure that input tax credit does not become time barred," the ministry added.
AMRG & Associates Partner Rajat Mohan said, "This extension would entitle taxpayers to enjoy an additional window to correct their errors in tax filings before the tax credit for the recipients become time-barred for the financial year 2017-2018. Taxpayers should take this additional time to reconcile their books with customers before filing GSTR -1 for the month of September 2018".
Goods and Services Tax (GST), which subsumes 17 local taxes, was rolled out on July 1, 2017.
SpiceJet to launch its air cargo services SpiceXpress from September 18
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No-frills airline SpiceJet announced the launch of its dedicated air cargo services today and inducted its first freighter aircraft in Delhi, a Boeing 737-700. To be called SpiceXpress, the new service will kick-off operations on September 18, and will initially cover Delhi, Bengaluru, Amritsar, Guwahati, Hong Kong and Kabul. This new unit will operate as a separate business unit under SpiceJet Limited.
"With our proven operational capability, this is an extension of our 'belly cargo' service to a 'dedicated freighter' with Boeing 737 aircraft. We are very excited about the tremendous potential the logistics industry offers. There is a huge untapped market for air cargo services in India and a player like SpiceJet - with its low cost structure - is best suited to address this need," Ajay Singh, Chairman and Managing Director, SpiceJet, said in a statement.
The airline said that the first four freighters are scheduled to be inducted by March 2019. With that, its cargo capacity would go up to 900 tonnes a day in a phased manner, up from about 500 tonnes daily at present. SpiceJet currently offers cargo capacity on its passenger aircraft fleet of 36 Boeing and 22 Q400s operating across 47 domestic and 7 international destinations. According to the company, the added capacities will enhance its existing cargo competence to 60 domestic destinations by the end of this year. By 2022, it aims to further ramp up to 150 destinations across India, Asia and Europe.
Much like SpiceJet's commercial passenger aircraft fleet, the airline's freighters fleet will consist of Boeing 737 aircraft, which will be operated on an incremental direct operating cost model. The airline SpiceJet plans to utilise common pool of resources like pilots, engineers, ground staff and airport infrastructure for SpiceXpress.
"The freighter aircraft will be acquired on pure operating leases and haven't incurred any major CAPEX, while the ground operations will be either self-handled by the existing SpiceJet ground infrastructure or shall be outsourced till we develop a certain scale of operations," said Singh.
SpiceXpress will address time and temperature-sensitive shipments across verticals, like letters and credit cards under banking, and blood, organs, and medicines under pharma. "Other shipments would include automobiles, apparels, consumer electronics, e-commerce and live animals. Besides, the airline will also ship perishables like farm fresh fruits and vegetables to the Middle East," the airline said in a release, adding that among its key features, the new service will offer Priority Based Delivery, Hour Based Delivery, Priority Cargo and Personalised Services (PSS).
SpiceJet's announcement comes at a time the air cargo traffic in the country is poised to mushroom 60% over the next five years. Furthermore, the domestic logistics industry, which provides employment to more than 22 million people, is growing at a compounded annual growth rate of 7.8% since 2013 and is expected to be worth $215 billion in the next two years.
"Eyeing the huge growth potential in both domestic and global markets, fuelled by the ever increasing e-commerce boom, SpiceJet aims to shore up SpiceXpress's existing capacity, transforming it into a full scale freighter cargo service," said the airline.
"With our proven operational capability, this is an extension of our 'belly cargo' service to a 'dedicated freighter' with Boeing 737 aircraft. We are very excited about the tremendous potential the logistics industry offers. There is a huge untapped market for air cargo services in India and a player like SpiceJet - with its low cost structure - is best suited to address this need," Ajay Singh, Chairman and Managing Director, SpiceJet, said in a statement.
The airline said that the first four freighters are scheduled to be inducted by March 2019. With that, its cargo capacity would go up to 900 tonnes a day in a phased manner, up from about 500 tonnes daily at present. SpiceJet currently offers cargo capacity on its passenger aircraft fleet of 36 Boeing and 22 Q400s operating across 47 domestic and 7 international destinations. According to the company, the added capacities will enhance its existing cargo competence to 60 domestic destinations by the end of this year. By 2022, it aims to further ramp up to 150 destinations across India, Asia and Europe.
Much like SpiceJet's commercial passenger aircraft fleet, the airline's freighters fleet will consist of Boeing 737 aircraft, which will be operated on an incremental direct operating cost model. The airline SpiceJet plans to utilise common pool of resources like pilots, engineers, ground staff and airport infrastructure for SpiceXpress.
"The freighter aircraft will be acquired on pure operating leases and haven't incurred any major CAPEX, while the ground operations will be either self-handled by the existing SpiceJet ground infrastructure or shall be outsourced till we develop a certain scale of operations," said Singh.
SpiceXpress will address time and temperature-sensitive shipments across verticals, like letters and credit cards under banking, and blood, organs, and medicines under pharma. "Other shipments would include automobiles, apparels, consumer electronics, e-commerce and live animals. Besides, the airline will also ship perishables like farm fresh fruits and vegetables to the Middle East," the airline said in a release, adding that among its key features, the new service will offer Priority Based Delivery, Hour Based Delivery, Priority Cargo and Personalised Services (PSS).
SpiceJet's announcement comes at a time the air cargo traffic in the country is poised to mushroom 60% over the next five years. Furthermore, the domestic logistics industry, which provides employment to more than 22 million people, is growing at a compounded annual growth rate of 7.8% since 2013 and is expected to be worth $215 billion in the next two years.
"Eyeing the huge growth potential in both domestic and global markets, fuelled by the ever increasing e-commerce boom, SpiceJet aims to shore up SpiceXpress's existing capacity, transforming it into a full scale freighter cargo service," said the airline.
Sensex plunges 467 points, Nifty closes below 11,500 amid weak rupee, US-China trade war fears
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The Sensex and Nifty closed lower today after the indices came under selling pressure amid lower Asian markets, widening current account deficit and rupee touching fresh all time lows. While the Sensex closed 467 points or 1.22% lower at 37,922, the Nifty fell 151 points or 1.30% to 11,438 level.
Brokers said weakness was seen in most Asian markets as investors were cautious amid fears of a possible escalation in the US-China trade conflict.
Top Sensex losers were Sun Pharma (3.72%), M&M (3.44%) and Vedanta (3.44%). Top Nifty losers were Bajaj Finance (4.98%) , IndiaBulls Housing Finance (4.23%) and Bajaj Finserv (4.02%).
Of 30 Sensex stocks, 26 closed in the red.
Axis Bank (0.99%) was the top Sensex gainer after the private sector lender announced that Amitabh Chaudhry has been appointed as managing director and CEO from January 1, after incumbent Shikha Sharma steps down at the end of this year.
The stock rose to its 52-week high level of 675.70 rising more than 4.63% in early morning trade.
Mustafa Nadeem, CEO at Epic Research said, "Nifty stumbles close to 11400 as it continues to move in a downward trend. Most sectors were down by 1.5% to 2% as selling pressure intensified further post lunch as bears stronghold tightened to drag indices close to 11400, a point of inflection in the medium term.
A bearish flag was observed in price action on the Daily scale with consolidation between 11,400 to 11,600. A flag pattern, bearish, is a continuation pattern that is observed in between a trending market. Technically, 11,400 is a strong point of support for bulls to safeguard the strength while a close below this level will open the floodgates for lower levels of 11,100.
Support is now seen at 11400 - 11380 and below that on a breach may extend to 11110 - 11150. On the upside, bulls would need to breach the resistance placed at 11600, previous swing top."
Meanwhile, the BSE mid cap and small cap indices fell 277 points (1.68%) and 180 points (1.07%), respectively.
On sectoral basis, auto and banking stocks were the top losers with BSE auto index losing 431 points and BSE banking index falling 317 points respectively.
Of 19 BSE sectoral indices, 18 closed lower. The BSE IT index was the sole gainer rising 0.02% on weakening of rupee.
The Indian currency fell 94 paise intra day to 72.67 level, a fresh all-time low on rising crude oil prices, strengthening dollar and a widening current account deficit. The rupee has lost over 13% since the beginning of this year.
India's current account deficit (CAD) widened to $15.8 billion, which was around 2.4 per cent of the country's Gross Domestic Product (GDP), in the quarter ending June as compared with $15 billion in the same quarter a year before. The weak trade data dampened sentiment on Dalal Street.
The Tata Global Beverages stock rose in early trade today after the firm said it has restructured its international operations. The stock rose over 5% in early trade and hit a fresh intra day high of 235.20 on BSE.
The stock opened at 224 level and hit an intra day low of 221.45 level. However, it closed marginally lower at 222.75 level.
Market breadth was negative with 1048 stocks closing higher compared to 1684 ending in the red on BSE.
Global markets
The intensifying trade war between the US and China led most Asian stocks lower on Monday. Japan's benchmark Nikkei 225 climbed 0.4 percent to 22,392.93, after the country's gross domestic product surpassed expectations by growing at a 3 percent annual rate in the April-June quarter. The Kospi in South Korea gained 0.2 percent to 2,285.51. But Hong Kong's Hang Seng index tumbled 1.3 percent to 26,636.63. The Shanghai Composite index fell 1.1 percent to 2,673.88. Australia's S&P/ASX 200 was less than 0.1 percent lower at 6,141.40.
US President Donald Trump declared he was considering tariffs on an additional $267 billion in Chinese goods in addition to the $200 billion already facing the risk of duties, raising tensions between the world's two biggest economies. Additional duties on Chinese goods would hurt US manufacturers who use them as raw material and semi finished products in their factories.
US stock indexes fell on Friday after President Donald Trump said he's ready to impose tariffs on essentially every good that's imported from China. The S&P 500 index fell 0.2 percent to 2,871.68, ending the day with its fourth straight loss. The Dow Jones industrial average shed 0.3 percent to 25,916.54. The Nasdaq composite was 0.3 percent lower at 7,902.54.
Brokers said weakness was seen in most Asian markets as investors were cautious amid fears of a possible escalation in the US-China trade conflict.
Top Sensex losers were Sun Pharma (3.72%), M&M (3.44%) and Vedanta (3.44%). Top Nifty losers were Bajaj Finance (4.98%) , IndiaBulls Housing Finance (4.23%) and Bajaj Finserv (4.02%).
Of 30 Sensex stocks, 26 closed in the red.
Axis Bank (0.99%) was the top Sensex gainer after the private sector lender announced that Amitabh Chaudhry has been appointed as managing director and CEO from January 1, after incumbent Shikha Sharma steps down at the end of this year.
The stock rose to its 52-week high level of 675.70 rising more than 4.63% in early morning trade.
Mustafa Nadeem, CEO at Epic Research said, "Nifty stumbles close to 11400 as it continues to move in a downward trend. Most sectors were down by 1.5% to 2% as selling pressure intensified further post lunch as bears stronghold tightened to drag indices close to 11400, a point of inflection in the medium term.
A bearish flag was observed in price action on the Daily scale with consolidation between 11,400 to 11,600. A flag pattern, bearish, is a continuation pattern that is observed in between a trending market. Technically, 11,400 is a strong point of support for bulls to safeguard the strength while a close below this level will open the floodgates for lower levels of 11,100.
Support is now seen at 11400 - 11380 and below that on a breach may extend to 11110 - 11150. On the upside, bulls would need to breach the resistance placed at 11600, previous swing top."
Meanwhile, the BSE mid cap and small cap indices fell 277 points (1.68%) and 180 points (1.07%), respectively.
On sectoral basis, auto and banking stocks were the top losers with BSE auto index losing 431 points and BSE banking index falling 317 points respectively.
Of 19 BSE sectoral indices, 18 closed lower. The BSE IT index was the sole gainer rising 0.02% on weakening of rupee.
The Indian currency fell 94 paise intra day to 72.67 level, a fresh all-time low on rising crude oil prices, strengthening dollar and a widening current account deficit. The rupee has lost over 13% since the beginning of this year.
India's current account deficit (CAD) widened to $15.8 billion, which was around 2.4 per cent of the country's Gross Domestic Product (GDP), in the quarter ending June as compared with $15 billion in the same quarter a year before. The weak trade data dampened sentiment on Dalal Street.
The Tata Global Beverages stock rose in early trade today after the firm said it has restructured its international operations. The stock rose over 5% in early trade and hit a fresh intra day high of 235.20 on BSE.
The stock opened at 224 level and hit an intra day low of 221.45 level. However, it closed marginally lower at 222.75 level.
Market breadth was negative with 1048 stocks closing higher compared to 1684 ending in the red on BSE.
Global markets
The intensifying trade war between the US and China led most Asian stocks lower on Monday. Japan's benchmark Nikkei 225 climbed 0.4 percent to 22,392.93, after the country's gross domestic product surpassed expectations by growing at a 3 percent annual rate in the April-June quarter. The Kospi in South Korea gained 0.2 percent to 2,285.51. But Hong Kong's Hang Seng index tumbled 1.3 percent to 26,636.63. The Shanghai Composite index fell 1.1 percent to 2,673.88. Australia's S&P/ASX 200 was less than 0.1 percent lower at 6,141.40.
US President Donald Trump declared he was considering tariffs on an additional $267 billion in Chinese goods in addition to the $200 billion already facing the risk of duties, raising tensions between the world's two biggest economies. Additional duties on Chinese goods would hurt US manufacturers who use them as raw material and semi finished products in their factories.
US stock indexes fell on Friday after President Donald Trump said he's ready to impose tariffs on essentially every good that's imported from China. The S&P 500 index fell 0.2 percent to 2,871.68, ending the day with its fourth straight loss. The Dow Jones industrial average shed 0.3 percent to 25,916.54. The Nasdaq composite was 0.3 percent lower at 7,902.54.
General Awareness
World Hindu Congress (WHC)
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What to study?
For Prelims and Mains: Key facts on WHC and significance of these conferences, Parliament of World Religions in Chicago.
Context: The second World Hindu Congress is being held in Chicago, Illinois, U.S.
It is inspired by the Hindu principle, Sumantrite Suvikrante or THINK COLLECTIVELY, ACHIEVE VALIANTLY.
On the eve of the 125th anniversary of Swami Vivekananda’s historic address to the Parliament of World Religions in Chicago, Hindus from around the world and of all backgrounds are invited to actively participate.
About WHC:
The World Hindu Congress (WHC) is a global platform for Hindus to connect, share ideas, inspire one another, and impact the common good. It offers Hindus an opportunity to introspect towards improvement and tap into our collective resources to seek tangible solutions to the most pressing issues of our age.
Held once every four years, WHC’s seven parallel conferences showcase how the values, creativity, and entrepreneurial spirit of the global Hindu community find expression in a variety of spheres, including economic, education, media, organizational, and political, as well as the unique leadership and contributions of Hindu women and youth.
WHC also serves as a platform to address critical issues impacting Hindus worldwide, including human rights, discrimination, and cultural assaults.
Why World Hindu Congress?
In the past, Hindus have held a number of forums and conferences intermittently. But the outcomes of resulting resolutions and implementation of action plans have been sporadic at best. Many of these events never covered dimensions critically important to Hindus such as education, media, politics, and economy with regularity. Moreover, not many of these events were cross-dimensional in nature.
Hindus have both spiritual and secular needs. Unfortunately, many of the secular needs and challenges have been left for others to handle. The WHC seeks to fill in this very important gap.
The World Hindu Congress is an informal organization organized by World Hindu Foundation. But it is dependent on the efforts of volunteers representing Hindu organizations from around the world. Each Congress will be held in a different part of the world. All Hindu organizations, associations, and institutions are encouraged to participate and invited to become partners in World Hindu Congress.
What to study?
For Prelims and Mains: Key facts on WHC and significance of these conferences, Parliament of World Religions in Chicago.
Context: The second World Hindu Congress is being held in Chicago, Illinois, U.S.
It is inspired by the Hindu principle, Sumantrite Suvikrante or THINK COLLECTIVELY, ACHIEVE VALIANTLY.
On the eve of the 125th anniversary of Swami Vivekananda’s historic address to the Parliament of World Religions in Chicago, Hindus from around the world and of all backgrounds are invited to actively participate.
About WHC:
The World Hindu Congress (WHC) is a global platform for Hindus to connect, share ideas, inspire one another, and impact the common good. It offers Hindus an opportunity to introspect towards improvement and tap into our collective resources to seek tangible solutions to the most pressing issues of our age.
Held once every four years, WHC’s seven parallel conferences showcase how the values, creativity, and entrepreneurial spirit of the global Hindu community find expression in a variety of spheres, including economic, education, media, organizational, and political, as well as the unique leadership and contributions of Hindu women and youth.
WHC also serves as a platform to address critical issues impacting Hindus worldwide, including human rights, discrimination, and cultural assaults.
Why World Hindu Congress?
In the past, Hindus have held a number of forums and conferences intermittently. But the outcomes of resulting resolutions and implementation of action plans have been sporadic at best. Many of these events never covered dimensions critically important to Hindus such as education, media, politics, and economy with regularity. Moreover, not many of these events were cross-dimensional in nature.
Hindus have both spiritual and secular needs. Unfortunately, many of the secular needs and challenges have been left for others to handle. The WHC seeks to fill in this very important gap.
The World Hindu Congress is an informal organization organized by World Hindu Foundation. But it is dependent on the efforts of volunteers representing Hindu organizations from around the world. Each Congress will be held in a different part of the world. All Hindu organizations, associations, and institutions are encouraged to participate and invited to become partners in World Hindu Congress.
For Prelims and Mains: Key facts on WHC and significance of these conferences, Parliament of World Religions in Chicago.
Context: The second World Hindu Congress is being held in Chicago, Illinois, U.S.
It is inspired by the Hindu principle, Sumantrite Suvikrante or THINK COLLECTIVELY, ACHIEVE VALIANTLY.
On the eve of the 125th anniversary of Swami Vivekananda’s historic address to the Parliament of World Religions in Chicago, Hindus from around the world and of all backgrounds are invited to actively participate.
About WHC:
The World Hindu Congress (WHC) is a global platform for Hindus to connect, share ideas, inspire one another, and impact the common good. It offers Hindus an opportunity to introspect towards improvement and tap into our collective resources to seek tangible solutions to the most pressing issues of our age.
Held once every four years, WHC’s seven parallel conferences showcase how the values, creativity, and entrepreneurial spirit of the global Hindu community find expression in a variety of spheres, including economic, education, media, organizational, and political, as well as the unique leadership and contributions of Hindu women and youth.
WHC also serves as a platform to address critical issues impacting Hindus worldwide, including human rights, discrimination, and cultural assaults.
Why World Hindu Congress?
In the past, Hindus have held a number of forums and conferences intermittently. But the outcomes of resulting resolutions and implementation of action plans have been sporadic at best. Many of these events never covered dimensions critically important to Hindus such as education, media, politics, and economy with regularity. Moreover, not many of these events were cross-dimensional in nature.
Hindus have both spiritual and secular needs. Unfortunately, many of the secular needs and challenges have been left for others to handle. The WHC seeks to fill in this very important gap.
The World Hindu Congress is an informal organization organized by World Hindu Foundation. But it is dependent on the efforts of volunteers representing Hindu organizations from around the world. Each Congress will be held in a different part of the world. All Hindu organizations, associations, and institutions are encouraged to participate and invited to become partners in World Hindu Congress.
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