New Source Of Funding For Start-ups

Rs1 crore

What is it? The minimum paid-up capital required for start-ups to list their shares in the Bombay Stock Exchange. Paid-up capital is the money put in by company’s founders and investors.

Why is it important? This is substantially lower than Rs10 crore post-issue paid-up capital required to list a company’s shares at both the Bombay Stock Exchange and the National Stock Exchange. The move could open up alternate funding for start ups at early stage where they are dependent entirely on venture capitalists.

Tell me more: Start-ups wanting to list should have positive net worth (that is their value of assets should be higher than value of liabilities) for last three years, as compared to normal requirement of profitability for last three years.

 

 1,690

What is it? The list of defaulters who haven’t yet paid the penalty imposed by the market regulator, the Securities and Exchange Board of India (SEBI).

Why is it important? The defaulters list has reduced by 129 in the last 50 days. Public listing of defaulters has served two purposes: one, it has put pressure on defaulters to clear the dues. Two, the public would know the names of people or entities which are yet to pay penalties imposed by the SEBI.

Tell me more: The range of penalties imposed varies between Rs10,000 to Rs10 crore, and the earliest default case dates back to December 1998.

 

6.85 lakh 

What is it? The number of new subscribers who have enrolled under the Employees’ Provident Fund (EPF) Scheme in April this year. EPF is a social security scheme where both employers and employees contribute 12% of basic pay and house rent allowance.

Why is it important? This number is treated as proxy for new jobs created in the organized sector, while other attribute this to formalization of the economy after the Goods and Services Tax were introduced. New subscribers under the Employees’ State Insurance Scheme, another social security scheme, was 1.01 million in April 2018. EPF applies to companies with more than 20 employees, while ESIC is for firms with more than 10 employees.

Tell me more: EPF data between September 2017 and March 2018 was revised downwards to 3.4 million as compared to earlier estimate of 3.9 million. No reasons were provided by the Statistics ministry.

 

132,263

What is it? The increase in Spain’s population in 2017 to 46.66 million, according to the country’s National Statistics Institute.

Why is it important? The increase is due to influx of migrants – around half a million last year – the highest in a decade. The net increase in migration was estimated at 146,604. Spain’s death rate outpaced birth rate at the fastest pace since 1941 when the records began.

Tell me more: Leaders from 16 European Union states met in Brussels last Sunday to find a consensus on migrants, but they failed to reach a solution. Latest UN data shows only 50,000 migrants have reached EU across the sea this year, but it remains a top concern in many countries.

 

$100 million

What is it? The amount of credit India would offer to Seychelles to purchase defence hardware equipment.

Why is it important? This is one of the 6 agreements signed between India and the island nation during the ongoing visit of Seychelles President Danny Antoine. The issue of proposed Indian military base in Island of Assumption was discussed, and both sides agreed to ‘work for the welfare of each other’.

Tell me more: The national assembly of Seychelles did not ratify an earlier agreement signed between the two countries to set-up military base in Island of Assumption. The statement released after the meeting of Prime Minister Narendra Modi and Danny Antoine was silent on how the military base issue will be tackled.

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New Battle Lines Are Drawn

 

77%

What is it?The percentage stake in Flipkartthat Walmart has agreed to buy for $16 billion.

Why is it important?This is the biggest e-commerce deal in the worldand Walmart’s biggest foreign investment. It would help the US retailer get access to India’s nascent e-commerce market, which is expected to grow to $200 billion in a decade. Walmart will also bring its US rivalry with Amazon to Indiaand new battlelines would be drawn between two of the world’s most deep-pocketed firms, in what is being seen as a game-changer for the Indian e-commerce market.

Tell me more:Of the $16 billion, $2 billion is the actual investment in the company, with the rest being used to buy out other stakeholders. Softbank has exited Flipkart, and the rest of the business will be held by co-founder Binny Bansal, China’s Tencent Holdings, Tiger Global Management and Microsoft.

 

4

What is it? The number of judges among the Supreme Court’s five senior-mostwho met on Wednesday to discuss the reiteration of Justice KM Joseph’s candidature for elevation to the apex court.

Why is it important? This is the first time the five judges—who make up the SC collegium that recommends SC judicial appointments to the Centre—met since May 2, when they discussed the Centre’s rejection of Justice Joseph’s candidature but deferreda decision on it. Justice Joseph’s appointment is one of the points of contention inside the SC, as well as between the SC and the Centre.

Tell me more: Justice J Chelameswar was on leave and was not present at the meeting. He is retiring on June 22 and he has declined an invite to a farewellfrom the SC Bar Association.

 

 

$4.6 billion

What is it? The amount Bharti Airtel is reportedly looking to pare from its net borrowings over the next three years.

Why is it important? The telecom firm plans to do this by listing its African unit and potentially sell partial stake in its tower business, in a move that would likely help it protect its investment grade rating. Bharti’s net debt increased 45% to $14.6 billion over four years as it invested in spectrum and infrastructure, and protected its market share, after Reliance Jio initiated a pricing war.

Tell me more: The Sunil Mittal-backed firm reported a net profit of Rs 83 crore in the January to March quarter, a 78% drop on a year-on-year basis. This was its eighth consecutive drop in quarterly net profit.

 

205

What is it? The number of companies whose shares will be delisted by the Bombay Stock Exchange beginning May 11.

Why is it important? The move comes in the backdrop of a government clamp down on shell companies. There are three lists: 188 companies that have remained suspended for above six months, 14 companies whose status on the Ministry of Company Affairs website shows “under liquidation/liquidated” and 3 companies delisted by the National Stock Exchange.

Tell me more: Promoters of these 188 companies have to repurchase shares from public shareholders as per the fair value determined by a BSE-appointed independent valuer.

 

105

What is it? The number of goals scored by Manchester City in 37 matches in the 2017-18 English Premier League season.

Why is it important? On Wednesday, champions Manchester City beat Brighton 3-1. In the process, they went past the single-season record of goals scored in a 20-team EPL format introduced in 1995-96: 103 goals by Chelsea in 2009-10.

Tell me more: Manchester City yesterday also broke the record for the most points in a single season. They now have 97 points, two more than Chelsea in 2004-05. They will be looking to hit 100 pointsin their last game on Sunday against Southampton, which is placed 17th.

 

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Retail investors show new faith in equity SIPs

In the BSE Sensex’s recent conquest of the 30,000-point milestone, retail investors are demonstrating behaviour that mutual funds have been seeking for a long time: stability through markets good and bad. An analysis of assets under management (AUMs) held by retail investors in equity funds since 2009—when the Sensex hit 10,000—shows a departure from the traditional retail narrative of trying to time the market. Instead, they are investing in greater numbers, especially through systematic investment plans (SIPs), the antidote to the market-timing habit.

Retail AUMs in equity funds

Between September 2014 and March 2017, when the Sensex gained 11%, folios (mutual fund accounts) of individual investors expanded 35% and equity AUMs 76%. Even when the Sensex fell twice (13% and 8%), both metrics kept gaining.

 

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Retail folios

Since a rising market lifts asset values, more than AUMs, a better metric of new investments is number of folios. And since September 2014, retail folios have risen consistently, even in a choppy market.

 

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Investments via equity SIPs

As of March 2017, there were 13.5 million SIP accounts. In 2016-17, the industry added an average of 0.62 million SIP accounts per month and total monthly contributions increased by 39%.

 

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News in Numbers, Feb 03, 2017: 2G scam’s half a dozen

6

What is it? Number of those acquitted, including erstwhile telecom minister Dayanidhi Maran and two companies, in two different cases on the Aircel-Maxis 2G deal, by judge, OP Saini, at the special Central Bureau of Investigation (CBI) court in Delhi on Thursday.

Why is it important? The efforts of the CBI and Enforcement Directorate, probing the wide-ranging offences in India’s 2G scam, took a beating with the exoneration. Maran was mired in the controversial spectrum allocation, favouring Aircel, and brokering a deal in Aircel for Maxis since 2010 onwards. In one of the cases, there was an alleged money-laundering of Rs 742.58 crore in kickbacks, by two companies South Asia FM and Sun Direct TV. The other involved criminal conspiracy of pressurising one of Aircel’s promoters to sell his stake to Malaysian Maxis Group.

Tell me more: The others acquitted include Maran’s brother Kalanithi, Kalanithi’s wife Kavery Kalanithi, South Asia FM (SAFL) Managing Director K Shanmugam and the companies SAFL and Sun Direct TV.

 

5

What is it? Number of states in the US where federal judges have objected, in part, to president Donald Trump’s executive orders for restricting entry to people of seven nationalities and refugees.

Why is it important? Trump’s move is not only inviting widespread protests but also facing legal challenges by federal judges in the country. Most of them are taking up parts of the order as challenged by cases brought to them by affected parties. US District Judge Andre Birotte Jr followed four other instances to limit the order issued last Friday to bring relief to plaintiffs in a case. But he widened the sphere of his ruling by including anyone from the seven countries with a valid immigrant visa to the US, unlike the earlier rulings

Tell me more: Reports claim that immigration/customs officials were ignoring the judges’ earlier orders by refusing access to the detainees who had moved court. At the same time, the Trump administration tweaked their’s to allow green card or valid US permanent residence holders to enter, irrespective of nationality.

 

10

What is it? Number of warheads on China’s recently-tested long-range missile.

Why is it important? A flight-test in January is being seen as China flexing its military muscles, even though its nuclear stockpile might be smaller than United State’s traditional rival, Russia. The missile, DF-5C, is clear evidence of China increasing its nuclear arsenal. Its warhead count has likely gone up from the estimated 250. Not just over trade relations with the US, China has also had recent disagreements over its military activities in the South China Sea.

Tell me more: Chinese state television had broadcast another nuclear missile, DF-41’s deployment and strike path into the US last week.

 

$487 million

What is it? Amazon.com’s international losses in the fourth quarter, ended December 31.

Why is it important? It increased by four times year-on-year. The business arm, which includes Amazon’s India concerns, grew 18% to $ 13,965 million but could not keep losses at bay. Last month, Amazon India’s FY15 losses were found to be Rs 1,724 crore, rising by five times. The perseverance of the US-based e-commerce company goes to show its deep pockets as it is prepared to dig its heels in a promising market by advertising and discounting aggressively.

Tell me more: While its North America and cloud Amazon Web Services arms posted profits, this was its international business’ biggest operating loss. In many of its international markets, Amazon also offered its Prime Videos at no additional cost to its Prime members, streaming original content that it had produced.

 

Rs 1,085

What is it? The listing price of the Bombay Stock Exchange (BSE) on rival bourse, the National Stock Exchange, on Friday.

Why is it important? The shares listed at a premium of 34.6% of its IPO issue price of Rs 806. Investor faith in the stock of the world’s 10th-largest and India’s largest bourse gets reiterated by its debut, as it beats the 5-15% premium that analysts expected it to launch at. It reflects the 51.22 times oversubscription of its IPO in January.

Tell me more:  At 10:30 am, it was trading at Rs 1,119.50.

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