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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Stress weighs banks down

Rs 1,000 – Rs 4,000 crore

What is it? The range of stressed assets for which state-run banks will restructure the debt into equity. For corporate bad loans above Rs 5,000 crore, companies will be referred to National Company Law Board to recover money under the insolvency and bankruptcy code.

Why is it important? Evolving a rule-based approach to deal with India’s Rs 10 trillion stressed assets problem could help in faster decision making, as bankers will feel secure that their decisions will not be scrutinised later by investigating agencies.

Tell me more: Restructuring debt into equity has not been successful, as lenders are not able to find buyers. If restructured loan is not sold within 18 months, banks will have to consider the exposure as bad debt.

 

1 million

What is it? The number of subscribers of the Employees Provident Fund Office (EPFO) who can avail home loan from the Housing and Urban Development Corp. Ltd (HUDCO) by using their retirement corpus lying with EPFO over the next two years.

Why is it important? This access to EPFO database will help HUDCO to better evaluate creditworthiness of borrowers as contribution and employment records are available with the retirement fund manager. For provident fund subscribers, they could use 90% of their corpus towards down payment or paying monthly installments.

Tell me more: Under the Pradhan Mantri Awas Yojana, borrowers with monthly family income upto Rs 12 lakh can avail maximum interest subsidy of 6.5% to buy houses.

 

> 10,000 people

What is it? The number of lives saved by Red Cross volunteers who safely buried Ebola victims in West Africa in 2014-15.

Why is it important? Community burials, when relations washed the body of Ebola victims, infected large number of people. A study estimates two people developed Ebola for every unsafe community burial. 11,310 people out of 28,000 people infected with Ebola died during 2014-15.

Tell me more: 1,500 Red Cross volunteers managed 50% of all burials during the outbreak.

 

3 million

What is it? The number of students studying in state-run schools whose learning outcome will be monitored through an annual government survey.

Why is it important? This will help monitor progress of students on regular basis as the current National Achievement Survey done by the National Council for Education Research and Training is done once in three years with a sample size of 200,000.

Tell me more: Only 28% of standard III children could do a 2-digit subtraction, and 43% can read standard I text, as per the survey conducted by Annual Status of Education.

 

Rs 16 lakh

What is it? Amount paid by a company to buy the registration number, ‘0001’ in Delhi.

Why is it important? A potential revenue source for transport departments to tap the craze to buy fancy vehicle registration numbers. The success was also because the Delhi auction was conducted online with no manual intervention.

Tell me more: So far, Delhi’s transport department has earned Rs 1.83 crore by auctioning ‘0001’ of different series between 2014 and 2017.

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IITs and unicorns

Rs 21,000

What is it? The wage ceiling for mandatory Employees’ Provident Fund coverage that the central government is considering. It’s Rs 15,000 at present.

Why is it important?  The move will bring 6 million more employees under the mandatory social security plan which includes PG, pension and insurance, with each employee contributing 12% of salary monthly to the EPF. Those in the organised sector, earning upwards of the salary, can opt in voluntarily. The cost to the Union government would be an extra Rs 1,617 crore at Rs 5,659 crore a year. According to last reported numbers, the PF portion of the corpus was Rs 360,000 crore.

Tell me more: The EPFO had suggested a threshold increase to Rs 25,000 but it would have raised cost to government by Rs 2,708 crore.

 

Rs 6.24 crore

What is it? The total value of fake Indian currencies seized by various law enforcement forces after demonetisation and introduction of new notes in November, 2016.

Why is it important? Following reports of fake currencies flooding the market after demonetisation, some replicating crucial security features on the new Rs 2,000 notes, the government reassured they were still easily identifiable and furnished the seized numbers as proof. The volume of fake notes exceed thousands.

Tell me more: In a Rajya Sabha reply, the home ministry also assured demonetisation of the new currency notes was not on the cards.

 

500,000 tonne

What is it? The volume of raw sugar that was allowed to be imported duty-free.

Why is it important? This is over 3% of the sugar production in the October-February (full year: Oct-Sep) period of 2016-17 marketing year. Sugar cane supply hit by drought in the major producing states of Maharashtra and Karnataka has led to a fall of 19% compared to 2015-16, leading to the import.

Tell me more: The move will raise global sugar prices given India’s status as the second-largest sugar producer and an exporter till last season.

 

12

What is it? The number of unicorns founded by alumni of Indian Institutes of Technology, according to a report by UK software firm, Sage.

Why is it important? That ranks IITs fourth in the list, after Stanford (51 unicorns), Harvard (37) and University of California (18). For long, IITs were criticised for not producing enough entrepreneurs, but that has been changing in the last few years. According to one count, 60% of all startups that have Series A venture funding have founders from IIT/IIM. Set up as engineering training institutes, IITs have been expanding their scope over years, and now plan to offer MBBS courses as well, starting with IIT Kharagpur.

 

Tell me more: Massachusetts Institute of Technology & University of Pennsylvania which follow IITs in the list have lead to nine unicorns each. Unlike others in the list, IITs are a group of institutions, having over 60,000 students all campuses put together. Stanford has about 16,000 students, Harvard, 22000  and MIT 11,000.

 

$3.6 billion

What is it? The investment Indian Railways will need to achieve a solar energy target of 5GW by 2025, according to a study by Council on Energy, Environment and Water.

Why is it important? Railways is a big consumer of electricity, and its move to solar will help India in achieving its larger renewables energy target, besides helping with its INDC commitment of 40% non-fossil fuel installed power capacity. Railways uses close to 2.4% of the country’s total electricity consumption, and it’s growing at 5% a year.

Tell me more: The report estimates that 1.1GW of 5GW would come from rooftop and the rest from utility scale projects. Railways has an installed capacity of 16 MW of solar as of March 2017, and has is in the process of commissioning 255 MW of rooftop solar projects.

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