OPINION, P6 COMPANIES, P4 P BHANDARI & A CHAUDHARY May inflation print shows how quickly infation can shoot up INTERNATIONAL, P8 EDITORIAL TECH FOCUS INTENSIFIES DRAGON FIRE PLI a big boost to Make in India, but govt must address pain points flagged by potential beneficiaries CCI to expedite antitrust probe against Amazon and Flipkart China warns NATO it won’t ‘sit back’ if challenged by block KOLKATA, WEDNESDAY, JUNE 16, 2021 FOLLOW US ON TWITTER & FACEBOOK. APP AVAILABLE ON APP STORE & PLAYSTORE WWW.FINANCIALEXPRESS.COM READ TO LEAD VOL. 30 NO. 193, 14 PAGES, `8.00 (NORTH EAST STATES & ANDAMAN `10.00) P U B L I S H E D F R O M : A H M E D A B A D , B E N G A L U R U , C H A N D I G A R H , C H E N N A I , H Y D E R A B A D , K O C H I , K O L K ATA , L U C K N O W, M U M B A I , N E W D E L H I , P U N E SENSEX: 52,773.05 ▲ 221.52 NIFTY: 15,869.25 ▲ 57.40 NIKKEI 225: 29,441.30 ▲ 279.50 HANG SENG: 28,638.53 ▼ 203.60 `/$: 73.32 ▼ 0.04 `/€: 88.89 ▼ 0.13 BRENT: $73.62 ▲ $0.76 GOLD: `48,445 ▲ `311 IN THE NEWS Finmin officials to quiz Infy on I-T e-filing glitches WITH TECHNICAL PROBLEMS affecting tax payer services even eight days after the launch of new income tax e-filing portal, senior finance ministry officials will be holding an interactive meeting on June 22 with Infosys officials on the glitches, reports fe Bureau in New Delhi. Sembcorp on prowl to buy RE assets in India SINGAPORE-BASED SEMBCORP Industries is eyeing the acquisition route to increase its renewable energy base in India as the company aims to raise its green power portfolio globally from the existing 3 GW to 10 GW by 2025, Vipul Tuli, CEO South Asia of Sembcorp Industries, told FE, reports Anupam Chatterjee in New Delhi. HDFC Bank app down for 1 hour; issues resolved THE MOBILE BANKING app of HDFC Bank was down again on Tuesday, reports fe Bureau in Mumbai. It later tweeted that issues were resolved and the customers could use net banking and the app for transactions. NON-COMPLIANCE Twitter no longer an intermediary Can now face criminal action over unlawful content FE BUREAU New Delhi, June 15 TWITTER HAS LOST its intermediarystatus in India fornot complyingwith the newInformation Technology Rules which came into force from May 26. The move, according to government sources, implies that in the event of any charge against the microblogging site for alleged unlawful content, it would be treated as a publisher and not an intermediary. Consequently, it would be liable for punishment under the IT Act as also other prevailing penal laws. Twitter has, thus, become the first among the likes of Facebook, Google, Instagram, WhatsApp, LinkendIn, etc, to have lost its intermediary status.The others have submitted their compliance reports to the government.“It is evident that in spite of repeated indulgence granted including a last notice on June 5,as a goodwill gesture, Twitter has not complied with the Intermediary Guideline Rules under the IT Act having statutory force as theyhave been framed in exercise of powers under Section Why F&O trading isn’t really meant for retail investors Derivatives market New IT ■ Twitter till date has not fully complied Rules came into with the rules force from ■ Govt sent it three reminders for compliance May 26 Social media firms like Twitter need to appoint certain set of resident, Indian company officers to redress grievances What happens in case of non-compliance: Twitter has now lost this legal immunity and action can be taken against it by govt ■ Social media firms have legal immunity under Section 79 as they host third-party content Rule 7 in the new law empowers the govt to initiate criminal action against the company for unlawful content 87 of the ITAct. Rule 7 of the Rules very clearly enjoin that where an intermediary fails to observe these rules the provisions of sub section (1) of section 79 of the ITAct shall not be applicable to such intermediary. Continued on Page 2 Chinese firms can now SII ready to make bid for public projects Novavax vaccine Domestic firms can only enter into technology transfer agreements KIRAN RATHEE New Delhi, June 15 THE GOVERNMENT HAS allowed domestic companies to partner with Chinese firms by way of technology transfer agreements to bid for public projects.The development is a major climbdown in India’s stand with regard to Chinese firms since it barred them in every possible manner to do business in the country in the aftermath of escalated border tensions last year. In July 2020, as a fallout of thebordertensions,thegovernment had amended its general In July 2020, the govt had barred companies from countries sharing land border with India to bid for public projects However, it had made concessions for companies from Nepal, Bhutan and Bangladesh Therefore, the move was aimed at prohibiting Chinese firms development projects.Thisway countrieslikeNepal,Bhutanand Bangladeshwereautomatically exempted and it was clear that the order was aimed at firms belonging to China, as those based in Pakistan don't participate ingovernment contracts. THEEFFICACYOFtheNovavax vaccine in trials augurs well for India as Serum Institute of India (SII) will be producing these doses in India in collaborationwiththeUSfirm,VKPaul, member, health, Niti Aayog, said. The vaccine has shown 90% efficacyin trials so far.. Serum has been carrying out bridging trials forNovavax inIndiaanditisatanadvanced stage of completion, Paul said at a ministry of health and family welfare (MoHFW) media briefing on Tuesday. Data shows that the vaccine is safeandeffective.Moreimportantly, it will be made by SII in India in large quantities when production is ramped up. SII has already accomplished all the preparatorywork. Continued on Page 2 Continued on Page 2 ■ Chinese firms like Now govt has allowed Indian firms to bid for public projects if they have ToTwith Chinese firms financial rules (GFRs), stating that bidders from any country sharingalandborderwithIndia need to first register with a “competentauthority”tobeeligibleforgovernmentcontracts. However,ithadmadeanexception for bidders from countries whereIndiahadextendedaline of credit or was engaged in FE BUREAU Pune, June 15 Huawei and ZTE were barred from taking up telecom network contracts ■ This provides some scope to the Chinese firms to do business in India Twitter appoints interim chief compliance officer for India MICROBLOGGINGSITETWITTERonTuesday said it has appointed an interim chief compliance officer and the details of the official will be shared with the IT ministry directly soon,reports PTI. The government had issued a notice to Twitter giving it one last chance to “immediately”complywiththenewITrulesandwarned Futures &Options is not really investing but punting.The retail trader hardly has the nimbleness and might to exploit the ephemeral opportunities flashing for a nanosecond on charts ■ Personal Finance, P7 that failure to adhere to the normswill lead to the platform losing exemption from liability under the ITAct. ATwitterspokespersononTuesdaysaidthe company continues to make every effort to comply with the new guidelines, and is keeping the IT ministry apprised of progress at everystep of the process. THE DELTA VARIANT, first identified in India, doubles the risk of hospitalisation compared with the Alpha variant first found in the UK, but Pfizer and AstraZeneca vaccines provide good protection against the strain, A content-first approach for promoting Tata Sky Binge app Subscribers can now access their choice of OTTcontent, on large and small screens, at home or on-the-go, all with a unified interface, single subscription and sign-on, says Tata Sky’s Pallavi Puri ■ eFE, P7 QuickPicks Govt eyes over `40,000-crore investment in ethanol output THE GOVERNMENT has a set a target to raise its ethanol output by 80% with fresh investments of `41,000 crore, as it seeks to achieve 20% ethanol blending target for gasoline sold in the country by 2025, reports Prabhudatta Mishra in New Delhi. The plan will help curb the country's ever-rising oil import bill, save `30,000 crore worth foreign exchange annually and enable sugar mills to pay cane farmers on time, a senior official said on Tuesday. PAGE 2 NPS users with up to `5L corpus can withdraw entire sum on exit THE NATIONAL Pension System (NPS) subscribers with corpus up to `5 lakh will have the facility to withdraw the entire amount upon superannuation/exit, instead investing 40% of the amount in low-yield annuities as for the other subscribers, according to a PFRDA notification, reports fe Bureau in New Delhi. The pension regulator has also enhanced the entry age into NPS from 65 years to 70 years and exit age from 70 years to 75 years in all citizen and corporate models. PAGE 3 Toyota partially resumes ops at Bidadi plant in Karnataka TOYOTA KIRLOSKAR Motor on Tuesday announced the partial resumption of operations at its manufacturing facility at Bidadi in Karnataka, reports fe Bureau in Chennai. The plant had to halt operations due to the restrictions in place across Karnataka following lockdown. Toyota will operate the Bidadi facility at 50% workforce strength from Tuesday while ensuring that that all directive of the state and central governments would be adhered to. PAGE 4 MERCHANDISE EXPORTS SURGED over 69% in May from a year before to $32.3 billion,drivenbyafavourablebase and improved demand from keymarkets.Despitethesecond pandemic wave, exports were morethan8%higherthaneven the May 2019 (pre-pandemic) level, showed the provisional data released by the commerce ministryonTuesday. Having witnessed an impressive rate of expansion last fiscal in the wake of the Covid-19 outbreak, drug and pharmaceutical exports droppedby5.4%inMayto$1.9 billion, thanks to decreasing CovidcasesintheUSandtheEU. Goods exports have now crossed the pre-Covid (same months in 2019) level for three straight months, in what appears to be a strength- Exports 195.7 -35.6 May 2020 May 2021 Top performers* (% change, y-o-y, in May) 227 Petroleum Engineering goods 179 138 114 53 *Items with exports exceeding $1 bn in May ening trade recovery.The provisional estimate of export growth for May is higher than a preliminary one of 67% reported earlier. Continued on Page 2 Basmati GI tag in EU: India hardens its stance, avers Pakistan claim unfounded INDIA HAS HARDENED its stance on seeking exclusive geographical indication (GI) tag from the EU on Basmati rice,reportsfeBureauinNew Delhi.India’spermanentrepresentativetoUNESCOVishal VSharmastatedthatPakistan “cannot use the trademark Basmati”evenasexportersin PRESS TRUST OF INDIA Mumbai, June 15 69.4 Gems & jewellery Cotton yarn, fabric, etc Garments says a studypublished inThe Lancetjournal,reportsPTI.It was found that the PfizerBioNTech vaccine offered betterprotection against the Delta variant compared to Oxford-AstraZeneca’s Covishield in India. ■ Page 8 Banking shares propel equities to new peaks Apr ‘21 (% change, y-o-y) 200 150 100 50 0 -50 VACCINE MAKER BHARAT Biotech onTuesdaysaid that it was not feasible to price its Covid vaccine (Covaxin) at `150 per dose, reports fe Bureau inPune.Thecompany said a higher price in private markets was required to offset part of the costs as the current prices were not sustainable in thelong-term.Thepriceforthe private sectorplayerswasfixed at `1,200 per dose. ■ Page 4 ● TERRIFIC TUESDAY Exports surge 69% in May on better demand FE BUREAU New Delhi, June 15 Pricing Covaxin at `150 not feasible: Bharat Biotech ‘Pfizer, Astra jabs better against Delta strain’ TRADE RECOVERY Special Features Cash market Point of discord COVID-19 EASING TENSIONS Islamabad have been clamouringforajointapprovalfor boththecountries.AfterIndia filedtoregisterthename‘Basmati’ under GI in the EU in 2018,theEuropeanCommission last year sought public comments that prompted Pakistan to also claim trademark. ■ Page 5 ATRIBUTE Major General Akash Kaushik laid a wreath at Leh War Memorial and paid homage to martyrs who laid down their lives during the Galwan Valley clash against the Chinese forces last year, in Ladakh on Wednesday Price scare FE BUREAU Bond yields spike on surge in retail inflation The benchmark 10-year bond yield closed at its highest level in more than six weeks on the back of a much larger-than-expected surge in retail inflation in May. The bond yield ended at 6.04%, after touching 6.05%, its highest since April 30 and up 4 bps on the day. Oil prices reached their highest in more than two years at $73.64 a barrel. 10-year bond yield (%) Intra-day, June 15 6.06 6.05 6.041 Brent ($/bbl) Intra-day, June 15 73.7 Inflation 73.54 73.5 6.04 73.3 6.03 73.1 6.02 6.01 6.00 6.016 Previous close: 6.004 Close Open 72.9 72.7 73.03 Previous close: 72.86 72.5 Open @IST 4:53 PM 15 10 (% change, y-o-y) 6.27 5 CPI 12.94 6.3 WPI 0 -5 -3.37 May 2020 May 2021 EQUITY BENCHMARKS SENSEX and Nifty rose for the fourth straight session to settle at fresh life-time highs on Tuesdayas investors shrugged off concerns over rising inflation to focus on positive cues coming from global markets. At the closing bell, the BSE Sensexquotedhigherby221.52 pointsor0.42%atanewpeakof 52,773.05.Theindexalsohitits all-time intraday high of 52,869.51 during the session. Likewise,the broaderNSE Nifty rose 57.40 points or 0.36% to settle at a fresh high of 15,869.25.The NSE gauge too marked its life-time intraday high of 15,901.60. On the Sensex chart,Asian Paints was the top gainer in the Sensexpack,risingover3%,followed byAxis Bank,ICICI Bank, Hindustan Unilever, IndusInd Bank, Infosys and HDFC Bank. Ontheotherhand,BajajFinserv, Dr Reddy’s,Titan,Sun Pharma, Bajaj Finance and PowerGrid were among thelaggards. Of the 30 shares in the Sensex,15 closed in the green. Sectorally,BSE realty index rose the most with 1.55% gains. It was followed by consumer discretionary goods, bank and FMCG indices. Continued on Page 2 INCREASED SCRUTINY EU court backs watchdog powers in blow to Facebook, Big Tech REUTERS June 15 EUROPE'S TOP COURT on Tuesday endorsed the power of national data watchdogs to pursue big technology firms even if they are not their lead regulators,in a setback for SiliconValley companies such as social media giant Facebook. The EU Court of Justice (CJEU) ruling could encourage national agencies to act against US tech companies such as Google, Twitter and Apple, which all have their European Union headquarters in Ireland. Many national watchdogs in the 27-member European Union have long complained about their Irish counterpart, saying that it takes too long to decide on cases. Ireland has dismissed this, saying it has to be extra meticulous in dealing with powerful and well-funded technology giants. ILLUSTRATION: ROHNIT PHORE The CJEU got involved after a Belgian court sought guidance on Mark Zuckerberg-led Facebook’s challenge against the territorial competence of the Belgian data watchdog’s bid to stop it from tracking users in Belgium through cookies stored in the company’s social plug-ins, regardless of whether they have an account or not. “Under certain conditions, a national supervisoryauthority may exercise its power to bring any alleged infringement of the GDPR before a court of a member state, even though that authority is not the lead supervisory authority with regard to that processing,” the EU Court of Justice (CJEU) said. Under landmark European Union privacy rules known as GDPR, Facebook faces oversight by the Irish privacy authority because it has its European head office in Ireland. Kolkata
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