Issue: 1324
·
Petrol dealers seek exemption from MDR charges, warn of
margin squeeze.
·
NSE raises Rs.6,746 crore from anchor investors ahead of IPO.
·
UPI MDR: Retailers, clothing manufacturers flag impact of
0.4% charge on MSMEs.
·
PM Surya Ghar holds 132 GW market potential: ISMA.
·
India’s exports to US rise 21.83%, China shipments jump
52.35% in August.
·
WTO warns global output could fall up to 10% without stronger
multilateral trade rules.
·
FCNR (B) inflows touch $133 billion.
Kevin Warsh’s first rate
hike: US Fed raises interest by 25 bps, signals more hikes as inflation stays
elevated: The US Federal Reserve
raised interest rates by 25 basis points on Wednesday, delivering its first
rate hike since July 2023 as policymakers stepped up their fight against
stubborn inflation and signalled that borrowing costs could rise further in the
coming months. The Federal Open Market Committee (FOMC)
unanimously voted to raise the federal funds rate target range to 3.75-4
percent from 3.5-3.75 percent. The 12-0 decision marked the first major
monetary policy shift under Fed Chair Kevin Warsh, who took office in May.
(Moneycontrol)
US House passes 100% Russia
sanctions bill, India faces risk of higher tariffs: The US House of
Representatives on September 16 passed a Russia sanctions bill by a vote of
262-159, clearing the way for the legislation to be sent to President Donald
Trump and giving the White House authority to impose tariffs of up to 100
percent on goods from countries that are major buyers of Russian oil and
natural gas, potentially including India. The House approved the Senate
amendments to H.R. 5334, the vehicle for the sanctions legislation, after
lawmakers debated the measure and its tariff provisions. The Senate had
previously passed the legislation by an 86-11 vote.
(Moneycontrol)
Government Eases RCMC
Requirement for Export Consignments up to Rs.3 Lakh: Govt. has introduced a de
minimis exemption from the requirement of Registration-cum-Membership
Certificate (RCMC) or Certificate of Registration for small-value export
consignments up to Rs.3 lakh. The measure is aimed at reducing the compliance
burden for new and small exporters and facilitating exports through Postal,
Courier and other emerging channels. DGFT has amended Para 2.57 of the Foreign
Trade Policy, 2023 to provide that RCMC or Certificate of Registration will not
be required for export consignments having a Free-on-Board (FOB) value of up to
Rs.3 lakh, wherever such certificate is otherwise required under the Foreign
Trade Policy. Export consignments exceeding Rs.3 lakh will continue to require
a valid RCMC or Certificate of Registration.
(PiB)
UPI MDR could create Rs
27,000 crore revenue pool by FY28: Bernstein: A 40-basis-point MDR on UPI
transactions could create a large revenue pool. Issuing banks and UPI apps will
receive substantial portions of this estimated revenue. Merchant-side payment
apps and acquiring banks will also capture significant revenue shares. This
levy aims to sustain UPI infrastructure and support its continued expansion.
The charges remain well below card fees and exempt many smaller transactions.
(Economic Times)
RBI clarifies principal
business rules for NBFCs, CIC definition after Tata Sons CoR rejection: The Reserve Bank of India has
clarified definitions for financial activity and core investment companies.
This clarification follows the rejection of Tata Sons' application to surrender
its registration. Companies must meet specific asset and income thresholds to
be regulated by the central bank. Tata Sons, an unlisted holding company, now
faces enhanced regulatory scrutiny. The central bank's decision effectively
pushes Tata Sons towards a mandatory public listing.
(Economic Times)
UPI MDR could cost 47.2 bps
with GST for merchants: Businesses receiving UPI payments above the
exempted Rs.2,000 per transaction threshold will have to pay an 18% goods and
services tax (GST) on the applicable merchant discount rate (MDR), people aware
of the MDR arithmetic told ET. However, they would be eligible for tax offsets
should they be registered with the GST.
(Economic Times)
SC asks RBI to secure
compliance of norms on seizure of financed vehicles by NBFCs, banks: The Supreme Court mandated the
RBI to enforce lawful vehicle repossession rules. Financial institutions cannot
seize vehicles without due legal process. The court ordered a finance firm to
close loan accounts and refund money. Compensation was awarded for mental agony
and livelihood loss. This ruling ensures borrowers are not dispossessed of
vehicles arbitrarily.
(Economic Times)
Centre slashes windfall tax
on export of petrol, diesel, aviation fuel: The Centre has cut the windfall tax on petrol
exports to Rs 0.5 per litre from 1.5 per litre for the next fortnight,
effective September 16. It has also cut the levy on diesel exports by Rs 5 to
Rs 20 per litre, and on aviation turbine fuel (ATF) to Rs 15 per litre from Rs
19 per litre earlier. The Rs 0.5-per-litre levy on petrol exports will be
charged entirely as Special Additional Excise Duty (SAED). The changes mark the
latest fortnightly revision in export levies on petroleum products, which were
introduced from March 27, 2026, to ensure adequate domestic availability by
discouraging exports amid the West Asia crisis.
(Moneycontrol)
Commerce Department pitches
for five-year extension of RoDTEP scheme for exporters: In a move that could bring in more policy certainty
for exporters, the Commerce Department has sought a five-year extension of the
popular Remission of Duties and Taxes on Exported Products (RoDTEP) Scheme for
exporters, per officials. The scheme, last extended on April 1 2026 for six
months, is set to lapse on September 30. Approved by the government in November last year
for implementation over six financial years, the EPM comprises two sub-schemes
— Niryat Protsahan, with an outlay of Rs.10,401 crore, and Niryat Disha, with Rs.14,659
crore. On the RoDTEP scheme, which refunds embedded taxes and duties that are
not otherwise reimbursed, and is seen as a crucial support mechanism for MSME
exporters, the official said that the outlook was positive. The rates range
between 0.3 per cent to 3.9 per cent of the export value linked to the input
taxes paid by exporters.
(Business Line)
Sebi bars broker and
related entity for cross-segment price manipulation: The Securities and Exchange Board of India
(Sebi) on Wednesday barred stock broker Prrsaar Sampada, its related entity
Chaubara Eats and four others from the securities market for alleged price
manipulation. The market regulator also directed the impounding
of alleged wrongful gains of Rs.28.12 crore from the entities. The restriction
on Prrsaar Sampada applies only to its proprietary account. The broker is also
registered as a depository participant and research analyst. An internal
analysis by the National Stock Exchange (NSE) and Sebi had flagged that the
broker was making “abnormally high profit in the stock options segment and loss
in the stock futures segment by doing manipulative acts”.
(Business Standard)
EPFO ceiling hike: From Rs.15,000
to Rs.25,000:
The
government has approved an increase in the monthly wage ceiling for mandatory
EPFO coverage from Rs.15,000 to Rs.25,000, a move that could expand EPF and
Employees’ Pension Scheme (EPS) coverage among organised-sector employees. The
revised ceiling comes into effect after having remained unchanged since
September 1, 2014. For employees covered under EPS, pension is
calculated using the formula: Monthly EPS pension = (Pensionable salary ×
Pensionable service) ÷ 70 Here, pensionable salary is the average monthly basic
pay plus dearness allowance during the last 60 months before exiting the
pension fund. With the ceiling increasing from Rs.15,000 to Rs.25,000, the
maximum pensionable salary used in the calculation can rise, resulting in a
higher monthly pension for eligible employees.
(Business Today)
Govt holds firm on UPI MDR
as Opposition mounts pressure for rollback: The finance ministry on Wednesday asserted
that policy decisions are made independently, with the goal of building a
self-sustaining, inclusive, and affordable digital payments ecosystem, even as
there was a clamour for a rollback of the decision to impose a merchant
discount rate (MDR) of 0.4 per cent on transactions worth over Rs.2,000 made
via UPI.
(Business Standard)
Govt rolls out GOBARdhan
guidelines, assures full CBG offtake, sets price: The government has notified detailed
operational guidelines for the Rs.23,731 crore GOBARdhan scheme aimed at
developing India’s compressed biogas (CBG) sector, ensuring full offtake of a
CBG plant and also introducing a pricing mechanism. The Union Cabinet had last
month approved the scheme to convert India’s farm refuse and municipal waste
into clean fuel and organic manure. The scheme will make use of the country’s
agricultural residue, cattle dung, press mud, organic waste in cities, and
other biomass resources. Under the scheme guidelines, CBG producers have been
assured offtake of up to 100 per cent of the CBG available for sale, subject to
technical and operational feasibility.
(Business Standard)
JUNK BONDS
§
Junk
bonds are bonds that carry a higher risk of default than most bonds issued by
corporations and governments. A bond is a debt or promise to pay investors
interest payments along with the return of invested principal in exchange for
buying the bond. Junk bonds represent bonds issued by companies that are
financially struggling and have a high risk of defaulting or not paying their
interest payments or repaying the principal to investors.
§ Junk bonds are also called high-yield bonds since
the higher yield is needed to help offset any risk of default.
RBI KEY RATES
Repo
Rate: 5.25%
SDF:
5.00%
MSF
/Bank Rate: 5.50%
CRR:
3.00%
SLR:
18.00%
FOREX RATES (RBI REF. RATE)
INR
/ 1 USD : 95.9433
INR
/ 1 GBP : 129.3204
INR
/ 1 EUR : 110.7908
INR
/100 JPY: 61.8600
EQUITY INDEX
Sensex:
74336.45 (+332.63)
NIFTY:
23217.60 (+99.00)
Bnk NIFTY: 56292.45 (+497.70)
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