4.3 trillion and going by the bidding activity, which was at 90%, the maximum jump in value on Wednesday would be around 10%. So, not only all the sale will be at reserve price but a large quantum of spectrum will also remain unsold.
Moving on. The Securities and Exchange Board of India may expand the disclosure requirements on end-use of proceeds for qualified institutional placements, said two people familiar with the matter. At present, issuers seeking the approval of shareholders for a QIP simply provide a broad bucket of the QIP objects when they pass a resolution for the placement. For instance, a company could say that it intends to maintain sufficient liquidity and use the net proceeds of the QIP for general corporate purposes. This could include a wide range of activities such as capital expenditure, long-term working capital and refinancing/repayment/pre-payment of borrowings. “The objects given by companies opting for a QIP fund-raise are often opaque. Sebi believes that additional disclosures might help bring in more transparency and help shareholders and investors know where and how the funds will be utilised,” said a banker, adding that the discussions at Sebi’s end are at a preliminary stage.
Now some economy news. The International Monetary Fund on Tuesday slashed its global growth projections for 2022 and 2023, and warned of a possible worldwide recession next year. IMF’s forecasts come at a time when the US economy has already shrunk by 1.5% in the March quarter and many fear that growth may have slipped into the negative zone in the June quarter as well. Chances are that the US Federal Reserve rate hikes to check runaway inflation will cause a deeper recession in the world’s largest economy by the end of the year or early next year. China’s economy is expected to have slowed down in the June quarter from a 4.8% expansion in the previous three months, partly due to Covid-related curbs. Downside risks from elevated inflation, tight monetary conditions and the Ukraine war are adding to the already “gloomy and more uncertain” global outlook, the IMF said, cautioning that the spike in inflationary pressure, if unchecked, could ultimately trigger recession.
Meanwhile, as India takes over the presidency of the G-20 grouping in December, it will have the opportunity to drum up consensus on an international strategy on post-pandemic global recovery and inflation control, equity in Covid vaccine access, green financing, digital technology and cryptocurrency regulations, analysts and official sources told FE. New Delhi will also focus on ‘Sustainable Living — Lifestyle for the Environment (LiFE) Movement’, an initiative championed by Prime Minister Narendra Modi to promote a lifestyle that is in sync with the planet. Greater cooperation in global supply-chain management and ensuring energy security may also feature in the agenda. However, among its biggest challenges will be to make Russia and the West come to any understanding on a post-Ukraine war world order.
In other news, the Supreme Court on Tuesday asked the Centre to seek the Finance Commission’s views on whether revenue allocation to states can account for “irrational freebies” announced by the political parties during election campaigns to entice the voters. A bench led by Chief Justice NV Ramana said that it is a “serious” issue and asked the Centre to file its response on August 3. It also asked for suggestions to control these freebies. Senior counsel Kapil Sibal told the Bench that the Finance Commission can take into account debt burden on states due to freebies promised by the political parties. The top court was hearing a PIL by BJP leader Ashwini Kumar Upadhyay seeking a direction to the Election Commission of India to prevent parties from promising or distributing irrational freebies.
And finally, here’s what early morning cues say about market opening today. The SGX Nifty suggests a negative start for the India indices. L&T, Bajaj Auto, Maruti Suzuki, Ethos, Tata Power are among the stocks in focus today
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