Category — Banking & Financial Services

GST May Spur Over 1,000 companies to seek public listing

Ashishkumar Chauhan, CEO of Bombay Stock Exchange says that once India’s federal government implements the Goods and Services Tax (GST) regimen, smaller firms will become tax-compliant and will float IPOs to sell their shares to the public.

Chauhan estimates that around 1,000 companies will list on his bourse over the next four years. “We have only scratched the surface,” he told Bloomberg, adding that about 74 companies raised $4.3 billion through first-time share sales on the BSE in the last fiscal year, the highest since  2010.

Raamdeo Agrawal, joint managing director at Motilal Oswal Financial Services Ltd., said that the GST was “a huge positive development. It will have short-term hiccups for six months or so. But once it is done and people have accepted it, then the control of the economy will become far better,” reports the Business Insider.

Taxes

June 11, 2017   No Comments

GMEX and India’s Metropolitan Stock Exchange to Collaborate

London-based GMEX Group and the Metropolitan Stock Exchange of India will collaborate to develop technology-driven products to enhance India’s capital markets. As part of the proposal, GMEX will acquire a 5% stake in the Exchange, and its subsidiary, the Metropolitan Clearing Corporation of India.

The collaboration includes product development in the existing segments; launching new product categories; an increased focus on technological innovations; and development of market infrastructure for new products, reports waterstechnology. Udai Kumar, CEO at the Exchange said, “The new products will enable key objectives to deepen and widen our capital markets and address the growing needs of the economy.”

Metropolitan Stock Exchange Logo

The Metropolitan Stock Exchange is the youngest of India’s three stock exchanges recognized by the Securities and Exchange Board of India, the other two being the Bombay Stock Exchange and the National Stock Exchange.

June 8, 2017   No Comments

Walmart India Trains Supplier Partners in GST Compliance

Walmart India has started a series of workshops for its supplier partners to help them evaluate their Goods and Services Tax compliance levels and prepare for the transition to the new tax structure to be rolled out from July 1. Tax rates have been finalized for 1,211 items with a majority of items listed under the 18 percent slab.

GST is not just a tax reform, it is a whole new way of doing business. With its impending implementation, it is imperative for all businesses, large and small, to get ready to embark on the GST adoption journey,” said Krish Iyer, president and CEO of Walmart India.

Taxes“These workshops are expected to educate them [supplier partners] and accelerate their preparation by providing them with a platform to answer queries and concerns. With the customer at the heart of everything we do, this initiative will ultimately lead to a positive impact on the customer as we emerge with a streamlined process both at the back-end and the front-end,” Iyer added, reports the Economic Times.

May 29, 2017   No Comments

India Receives the most FDI, Again

The fDi Report 2017 compiled by fDi Intelligence, a division of The Financial Times Ltd., says that India retained its position as the world’s topmost greenfield destination for Foreign Direct Investment for the second consecutive year, attracting  $62.3 billion in 2016.
China has overtaken the U.S. to become the second biggest destination for FDI by capital investment, with $59 billion of announced FDI, compared to $48 billion in the U.S.
A case of dollar bills
Globally, the real estate sector attracted the most capital investment, with $157.5 billion of announced FDI recorded in 2016. In value terms, coal and natural gas witnessed an inflow of $121 billion, followed by alternate and renewable energy at $77 billion, says FirstPost.

May 29, 2017   No Comments

U.S.’s Ebix Acquires Majority Stake in India’s ItzCash

Atlanta, GA-based Ebix Inc., a maker of software for the insurance and financial services industry, acquired a majority stake in Indian payments services firm ItzCash for approximately $124 million. ItzCash’s earlier investors, Matrix Partners, Intel Capital and Lightspeed Venture Partners, exited the company for returns between 3X – 5X, leaving Essel Group with a 20% stake.

Founded in 2006, ItzCash, started with digital payments, and expanded into remittances, financial services, corporate solutions, point of sale (PoS) terminals and payment gateway. The company processes 600,000 transactions per day. In 2016-17, it processed payments worth $1.6 billion through its network, reports the Livemint.

ItzCash Logo

“With the youngest tech-savvy society, the largest middle class, a 1.3 billion population, a country committed to going digital and a growth rate of 7% plus, India is an emerging economic superpower today. We are big believers in the power of exchanges and thus have been keen to take an early position in India in terms of powering financial and insurance exchanges,” said Robin Raina, chairman and chief executive of Ebix.

May 25, 2017   No Comments