Best printers for Home

Best Mixer Grinder

Best wired Earphones

Best 43 Inch TV in India

Best Wi Fi Routers

Best Home Theatre in India

Smart Watch under 5000

Best Laptops for Education

Best Laptop for Students

<keyword id="6354335" type="CITY" weightage="100" keywordseo="reserve-bank-of-india">Reserve Bank of India</keyword> (RBI), the central banking authority of the country has opposed a pact between the <keyword id="6355725" type="CITY" weightage="100" keywordseo="Tata-Group">Tata Group</keyword> and <keyword id="18313" type="CITY" weightage="100" keywordseo="NTT-Docomo">NTT Docomo</keyword>, which was made to resolve a long standing <keyword id="45001" type="UNKNOWN" weightage="100" keywordseo="dispute">dispute</keyword> between the two. 
 
It was during a hearing in the <a href="http://www.businessinsider.in/topic/Delhi-High-Court">Delhi High Court</a> that <keyword id="4271219" type="UNKNOWN" weightage="100" keywordseo="RBI-opposed-Tata">RBI opposed Tata</keyword>’s decision to pay Docomo, arguing that such payment would amount to transfer of shares, thus rendering it illegal. 
 
The dispute was over the enforcement of a $1.17-billion arbitral award by an international court to Docomo. 
 
Justice S Murlidhar, however, wanted to know if the banking authority could oppose the award's enforcement when both Tata and Docomo had agreed to settle down the matter. Tata group has already deposited the amount with the court, and the next hearing is on March 14. He also added that the case had international implications. 
 
Also read: <a href="http://www.businessinsider.in/is-rbi-regretting-demonetization/articleshow/56537156.cms">Is RBI regretting demonetization?</a> 
 
To this, RBI lawyer Mukund C told the court that any step that led to payment being made to Docomo would set an example, and that Docomo he <a href="http://www.businessinsider.in/This-is-what-makes-RBI-one-of-the-countrys-most-desirable-employers/articleshow/52832249.cms">banking regulator </a>was also concerned that the Japanese company may pursue similar enforcement in the US and the UK if it doesn't succeed in India. 
 
The court held this argument as "absurd, as RBI's writ wouldn't run overseas in any case. 
 
Also read: <a href="http://www.businessinsider.in/Tata-Teleservices-DoCoMo-To-Split-Setting-Stage-For-Negotiations-Over-Valuation/articleshow/38125072.cms">Tata Teleservices &amp; DoCoMo To Split, Setting Stage For Negotiations Over Valuation</a> 
 
"RBI has no jurisdiction outside India," the judge said. "How can you object to enforceability anywhere else in the world? If they (Tata) have assets anywhere else, they (Docomo) can move a court there for the enforcement of the award. There is no law prohibiting it," he added. 
 
When asked if the deal required special permissions, Mukund sought for time to seek instructions about the same. 
 
The case involves <a href="http://www.businessinsider.in/topic/NTT-Docomo">NTT Docomo</a> fighting Tata Sons over the right to sell its stake in the Indian wireless venture for at least half the original value, according to the terms of the 2009 agreement. Even though Tata group said that it was willing to pay the award, Indian rules prohibited it, saying that valuation has to be based on present fair value. 
 
(Image source: IB Times)

RBI opposes Tata’s decision to pay Docomo over two-year long dispute

<keyword id="6354512" type="CITY" weightage="100" keywordseo="Infosys">Infosys</keyword> has beaten big names in the IT sector to get the high-profile contract to develop and operate the technology platform for the proposed <a href="http://www.businessinsider.in/searchresult.cms?query=goods+and+services+tax+%28GST%29" target="_BLANK￿￿￿￿">goods and services tax (GST)</a>. 
 
The Bengaluru-based company has bagged the contract with a bid of Rs 1,380 crore. 
 The <keyword id="6354679" type="ORGANIZATION" weightage="100" keywordseo="GST">GST</keyword> IT system will provide a standard interface for the taxpayer including registration, filing of returns and payment of tax and a common and shared IT infrastructure between the centre, states and other bodies such as the <a href="http://www.businessinsider.in/searchresult.cms?query=Reserve+Bank+of+India+%28RBI%29" target="_BLANK￿￿￿￿">Reserve Bank of India (RBI).</a> 
 It is true that Infosys has bagged the contract and will develop the system and operate it for five years, informed <keyword id="185277" type="PERSON" weightage="40" keywordseo="Navin-Kumar">Navin Kumar</keyword>, chairman of the Goods and <keyword id="645517" type="COMPANY" weightage="100" keywordseo="services-tax">Services Tax</keyword> Network (GSTN), which was incorporated in March 2013 as a not-for-profit, non-government, private limited company. 
 
However<a href="http://www.businessinsider.in/searchresult.cms?query=Infosys" target="_BLANK￿￿￿￿">, Infosys</a>, India's second-largest software exporter has declined to comment over the development. 
 
Bigger rival <a href="http://www.businessinsider.in/searchresult.cms?query=Tata+Consultancy+Services" target="_BLANK￿￿￿￿">Tata Consultancy Services</a>, Wipro and <keyword id="43217" type="CITY" weightage="40" keywordseo="Tech-Mahindra">Tech Mahindra</keyword> were also said to be in the race for the prestigious contract, which entails designing, developing and maintaining the GST system. 
 
The central government holds 24.5% equity in GSTN and all states, including Delhi and Puducherry, and the Empowered Committee of state finance ministers together hold another 24.5%. The remaining 51% equity is with non-government financial institutions. 
 GST, hailed as a comprehensive reform of indirect taxes that could lift country's GDP by 1-2%, is stuck with the main opposition <keyword id="1575" type="ORGANIZATION" weightage="60" keywordseo="Congress">Congress</keyword> stalling the Constitutional amendment bill in the upper house of Parliament, where the ruling NDA doesn't enjoy a majority. 
 
The proposed GST would replace a plethora of indirect taxes at the central and state levels with a single levy and create a unified national market in the country from April 1, 2016, a deadline that may be missed if the Congress continues to oppose the bill. 
 
Tax experts are of the opinion that the award of this contract displays the government's intent to push the new tax. 
 "GST can only be successful if the technology backbone is strong. Recent experience in <keyword id="8695" type="COUNTRY" weightage="60" keywordseo="Malaysia">Malaysia</keyword>, which implemented GST from April this year, further amplifies it," said <keyword id="191474" type="PERSON" weightage="40" keywordseo="Pratik-Jain">Pratik Jain</keyword>, a partner at <a href="http://www.businessinsider.in/searchresult.cms?query=KPMG+" target="_BLANK￿￿￿￿">KPMG</a> in India. 
 
He said the award of the contract in the face of the delayed passage of the bill shows the government is serious about implementing the new tax as early as possible. 
 
"With ongoing work on drafting of GST law, this further gives assurance to the industry that GST is not far away. One would hope that the GST network would be ready for testing in time," he said. 
 
All states will use common IT processes under the GST and most are revamping their systems. Registrations on the portal are expected to begin from January. 
 
(Image: Indiatimes)

Infy bags the GST deal

<ul><li>Foreign institutional investors have pulled out nearly $7 billion from the Indian markets this year.</li><li>FIIs have been net buyers in only one month this financial year – September.</li><li>Nearly $13 billion worth of shares have been sold by FIIs so far, as opposed to inflows worth over $13 billion in the period last year.</li></ul>Foreign institutional investors (FIIs) have offloaded nearly $7 billion worth of shares in the last two months and since the beginning of the financial year, FIIs have sold nearly $13 billion worth of shares. During the financial year, only September has witnessed net buying from FIIs, that too only to the extent of $62 million. This comes at a time when the Nifty 50 index has gained nearly 20% since April. “Part of the reason FIIs are selling is because valuations are not cheap and the inflation risk is real in India while the Reserve Bank of India, which historically was one of the more vigilant central banks, right now seems to be more on the dovish side," said Arvind Sanger, managing partner, Geosphere Capital Management to <a href="https://economictimes.indiatimes.com/markets/expert-view/why-have-fiis-turned-big-sellers-in-the-indian-market-arvind-sanger-answers/articleshow/87904160.cms">Economic Times</a>. <table style="border-width: initial; border-style: none;" class="redcator-table-advance"></colgroup><tbody><tr><td style="border-left:solid #000000 0.5pt;border-bottom:solid #000000 0.5pt;border-top:solid #000000 0.5pt;vertical-align:bottom;background-color:#000000;padding:0pt 5.75pt 0pt 5.75pt;overflow:hidden;overflow-wrap:break-word;">Month (2021) </td><td style="border-right:solid #000000 0.5pt;border-bottom:solid #000000 0.5pt;border-top:solid #000000 0.5pt;vertical-align:bottom;background-color:#000000;padding:0pt 5.75pt 0pt 5.75pt;overflow:hidden;overflow-wrap:break-word;">Amount ($ billion) </td></tr><tr><td style="border-left:solid #000000 0.5pt;border-bottom:solid #000000 0.5pt;border-top:solid #000000 0.5pt;vertical-align:bottom;background-color:#d9d9d9;padding:0pt 5.75pt 0pt 5.75pt;overflow:hidden;overflow-wrap:break-word;">April </td><td style="border-right:solid #000000 0.5pt;border-bottom:solid #000000 0.5pt;border-top:solid #000000 0.5pt;vertical-align:bottom;background-color:#d9d9d9;padding:0pt 5.75pt 0pt 5.75pt;overflow:hidden;overflow-wrap:break-word;">-1.70 </td></tr><tr><td style="border-left:solid #000000 0.5pt;border-bottom:solid #000000 0.5pt;border-top:solid #000000 0.5pt;vertical-align:bottom;padding:0pt 5.75pt 0pt 5.75pt;overflow:hidden;overflow-wrap:break-word;">May </td><td style="border-right:solid #000000 0.5pt;border-bottom:solid #000000 0.5pt;border-top:solid #000000 0.5pt;vertical-align:bottom;padding:0pt 5.75pt 0pt 5.75pt;overflow:hidden;overflow-wrap:break-word;">-0.81 </td></tr><tr><td style="border-left:solid #000000 0.5pt;border-bottom:solid #000000 0.5pt;border-top:solid #000000 0.5pt;vertical-align:bottom;background-color:#d9d9d9;padding:0pt 5.75pt 0pt 5.75pt;overflow:hidden;overflow-wrap:break-word;">June </td><td style="border-right:solid #000000 0.5pt;border-bottom:solid #000000 0.5pt;border-top:solid #000000 0.5pt;vertical-align:bottom;background-color:#d9d9d9;padding:0pt 5.75pt 0pt 5.75pt;overflow:hidden;overflow-wrap:break-word;">-0.003 </td></tr><tr><td style="border-left:solid #000000 0.5pt;border-bottom:solid #000000 0.5pt;border-top:solid #000000 0.5pt;vertical-align:bottom;padding:0pt 5.75pt 0pt 5.75pt;overflow:hidden;overflow-wrap:break-word;">July </td><td style="border-right:solid #000000 0.5pt;border-bottom:solid #000000 0.5pt;border-top:solid #000000 0.5pt;vertical-align:bottom;padding:0pt 5.75pt 0pt 5.75pt;overflow:hidden;overflow-wrap:break-word;">-3.10 </td></tr><tr><td style="border-left:solid #000000 0.5pt;border-bottom:solid #000000 0.5pt;border-top:solid #000000 0.5pt;vertical-align:bottom;background-color:#d9d9d9;padding:0pt 5.75pt 0pt 5.75pt;overflow:hidden;overflow-wrap:break-word;">August </td><td style="border-right:solid #000000 0.5pt;border-bottom:solid #000000 0.5pt;border-top:solid #000000 0.5pt;vertical-align:bottom;background-color:#d9d9d9;padding:0pt 5.75pt 0pt 5.75pt;overflow:hidden;overflow-wrap:break-word;">-0.34 </td></tr><tr><td style="border-left:solid #000000 0.5pt;border-bottom:solid #000000 0.5pt;border-top:solid #000000 0.5pt;vertical-align:bottom;padding:0pt 5.75pt 0pt 5.75pt;overflow:hidden;overflow-wrap:break-word;">September </td><td style="border-right:solid #000000 0.5pt;border-bottom:solid #000000 0.5pt;border-top:solid #000000 0.5pt;vertical-align:bottom;padding:0pt 5.75pt 0pt 5.75pt;overflow:hidden;overflow-wrap:break-word;">0.06 </td></tr><tr><td style="border-left:solid #000000 0.5pt;border-bottom:solid #000000 0.5pt;border-top:solid #000000 0.5pt;vertical-align:bottom;background-color:#d9d9d9;padding:0pt 5.75pt 0pt 5.75pt;overflow:hidden;overflow-wrap:break-word;">October </td><td style="border-right:solid #000000 0.5pt;border-bottom:solid #000000 0.5pt;border-top:solid #000000 0.5pt;vertical-align:bottom;background-color:#d9d9d9;padding:0pt 5.75pt 0pt 5.75pt;overflow:hidden;overflow-wrap:break-word;">-3.42 </td></tr><tr><td style="border-left:solid #000000 0.5pt;border-bottom:solid #000000 0.5pt;border-top:solid #000000 0.5pt;vertical-align:bottom;padding:0pt 5.75pt 0pt 5.75pt;overflow:hidden;overflow-wrap:break-word;">November </td><td style="border-right:solid #000000 0.5pt;border-bottom:solid #000000 0.5pt;border-top:solid #000000 0.5pt;vertical-align:bottom;padding:0pt 5.75pt 0pt 5.75pt;overflow:hidden;overflow-wrap:break-word;">-3.39 </td></tr><tr><td style="border-left:solid #000000 0.5pt;border-bottom:solid #000000 0.5pt;border-top:solid #000000 0.5pt;vertical-align:bottom;background-color:#d9d9d9;padding:0pt 5.75pt 0pt 5.75pt;overflow:hidden;overflow-wrap:break-word;">Total </td><td style="border-right:solid #000000 0.5pt;border-bottom:solid #000000 0.5pt;border-top:solid #000000 0.5pt;vertical-align:bottom;background-color:#d9d9d9;padding:0pt 5.75pt 0pt 5.75pt;overflow:hidden;overflow-wrap:break-word;">-12.70 </td></tr></tbody><tbody></tbody><tbody></tbody><tbody></tbody></table> Source: NSE, as on November 26, 2021 During the financial year, the last two months have recorded nearly $7 billion worth of selling and November is on track to be the month with the highest selling. <div type="image" title="FIIs - 2020-21 vs 2021-22" msid="87927349" hostid="261" caption="&amp;lt;p&amp;gt;FII activity compared to last financial year.&amp;lt;/p&amp;gt;"></div> Some of the reasons for the pull out by FIIs include concerns around COVID-19, the inflation risk and US Federal Reserve’s plans to reduce the stimulus. If we look at some of the companies that have high <keyword id="46756" type="General" weightage="20" keywordseo="fii" source="Orion">FII</keyword> holdings, there has been a substantial withdrawal in the financial year, even without looking at the last two months. The following data does not factor in the heavy selling that has taken place in October and November. <table style="border-width: initial; border-style: none;" class="redcator-table-advance"></colgroup><tbody><tr><td style="border-left:solid #000000 0.6000000000000001pt;border-bottom:solid #000000 0.6000000000000001pt;border-top:solid #000000 0.6000000000000001pt;vertical-align:top;background-color:#000000;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Company </td><td style="border-bottom:solid #000000 0.6000000000000001pt;border-top:solid #000000 0.6000000000000001pt;vertical-align:top;background-color:#000000;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">FII holding as on March 31, 2021 </td><td style="border-bottom:solid #000000 0.6000000000000001pt;border-top:solid #000000 0.6000000000000001pt;vertical-align:top;background-color:#000000;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">FII holding as on September 31, 2021 </td><td style="border-right:solid #000000 0.6000000000000001pt;border-bottom:solid #000000 0.6000000000000001pt;border-top:solid #000000 0.6000000000000001pt;vertical-align:top;background-color:#000000;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Decline </td></tr><tr><td style="border-left:solid #000000 0.6000000000000001pt;border-bottom:solid #000000 0.6000000000000001pt;border-top:solid #000000 0.6000000000000001pt;vertical-align:top;background-color:#d9d9d9;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Shriram Transport Finance Corporations </td><td style="border-bottom:solid #000000 0.6000000000000001pt;border-top:solid #000000 0.6000000000000001pt;vertical-align:top;background-color:#d9d9d9;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">61% </td><td style="border-bottom:solid #000000 0.6000000000000001pt;border-top:solid #000000 0.6000000000000001pt;vertical-align:top;background-color:#d9d9d9;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">53.70% </td><td style="border-right:solid #000000 0.6000000000000001pt;border-bottom:solid #000000 0.6000000000000001pt;border-top:solid #000000 0.6000000000000001pt;vertical-align:top;background-color:#d9d9d9;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">-7.30% </td></tr><tr><td style="border-left:solid #000000 0.6000000000000001pt;border-bottom:solid #000000 0.6000000000000001pt;border-top:solid #000000 0.6000000000000001pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">ZEE Entertainment Enterprises Ltd </td><td style="border-bottom:solid #000000 0.6000000000000001pt;border-top:solid #000000 0.6000000000000001pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">64.20% </td><td style="border-bottom:solid #000000 0.6000000000000001pt;border-top:solid #000000 0.6000000000000001pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">57.20% </td><td style="border-right:solid #000000 0.6000000000000001pt;border-bottom:solid #000000 0.6000000000000001pt;border-top:solid #000000 0.6000000000000001pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">-7.00% </td></tr><tr><td style="border-left:solid #000000 0.6000000000000001pt;border-bottom:solid #000000 0.6000000000000001pt;border-top:solid #000000 0.6000000000000001pt;vertical-align:top;background-color:#d9d9d9;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Fortis Healthcare </td><td style="border-bottom:solid #000000 0.6000000000000001pt;border-top:solid #000000 0.6000000000000001pt;vertical-align:top;background-color:#d9d9d9;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">34.40% </td><td style="border-bottom:solid #000000 0.6000000000000001pt;border-top:solid #000000 0.6000000000000001pt;vertical-align:top;background-color:#d9d9d9;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">29.30% </td><td style="border-right:solid #000000 0.6000000000000001pt;border-bottom:solid #000000 0.6000000000000001pt;border-top:solid #000000 0.6000000000000001pt;vertical-align:top;background-color:#d9d9d9;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">-5.10% </td></tr><tr><td style="border-left:solid #000000 0.6000000000000001pt;border-bottom:solid #000000 0.6000000000000001pt;border-top:solid #000000 0.6000000000000001pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Manappuram Finance </td><td style="border-bottom:solid #000000 0.6000000000000001pt;border-top:solid #000000 0.6000000000000001pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">38.60% </td><td style="border-bottom:solid #000000 0.6000000000000001pt;border-top:solid #000000 0.6000000000000001pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">34.90% </td><td style="border-right:solid #000000 0.6000000000000001pt;border-bottom:solid #000000 0.6000000000000001pt;border-top:solid #000000 0.6000000000000001pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">-3.70% </td></tr><tr><td style="border-left:solid #000000 0.6000000000000001pt;border-bottom:solid #000000 0.6000000000000001pt;border-top:solid #000000 0.6000000000000001pt;vertical-align:top;background-color:#d9d9d9;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Apollo Hospitals </td><td style="border-bottom:solid #000000 0.6000000000000001pt;border-top:solid #000000 0.6000000000000001pt;vertical-align:top;background-color:#d9d9d9;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">54.50% </td><td style="border-bottom:solid #000000 0.6000000000000001pt;border-top:solid #000000 0.6000000000000001pt;vertical-align:top;background-color:#d9d9d9;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">51.50% </td><td style="border-right:solid #000000 0.6000000000000001pt;border-bottom:solid #000000 0.6000000000000001pt;border-top:solid #000000 0.6000000000000001pt;vertical-align:top;background-color:#d9d9d9;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">-3.00% </td></tr><tr><td style="border-left:solid #000000 0.6000000000000001pt;border-bottom:solid #000000 0.6000000000000001pt;border-top:solid #000000 0.6000000000000001pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Redington India </td><td style="border-bottom:solid #000000 0.6000000000000001pt;border-top:solid #000000 0.6000000000000001pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">42% </td><td style="border-bottom:solid #000000 0.6000000000000001pt;border-top:solid #000000 0.6000000000000001pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">39% </td><td style="border-right:solid #000000 0.6000000000000001pt;border-bottom:solid #000000 0.6000000000000001pt;border-top:solid #000000 0.6000000000000001pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">-3.00% </td></tr></tbody><tbody></tbody></table> Note: Data till September 2021 Morgan Stanley last month <a href="https://www.cnbctv18.com/economy/morgan-stanley-downgrades-india-to-equal-weight-from-overweight-citing-expensive-valuations-11263672.htm">downgraded</a> Indian equities to equal-weight from overweight citing expensive valuations. "We move tactically equal weight on India equities after strong relative gains - we expect a structural multi-year earnings recovery, but at 24 times forward price to earnings, we look for some consolidation ahead of Fed tapering, an RBI (rate) hike in February and higher energy costs," the investment banking company said. Similarly, Goldman Sachs downgraded the Indian market from overweight, stating that the recovery has already been priced in. “While we expect strong cyclical and profit recovery next year and remain medium-term constructive amid increasing digitalisation in the index, we think the recovery is well priced at current peak valuations. We, thus, take profits on our India overweight and lower it to market weight within our regional allocations,” it <a href="https://economictimes.indiatimes.com/markets/stocks/news/goldman-sachs-downgrades-india-equities-says-stocks-appear-well-priced-for-now/articleshow/87660109.cms">said</a>. SEE ALSO: <a href="https://www.businessinsider.in/stock-market/news/global-investment-banks-are-telling-their-clients-to-take-profits-from-india/articleshow/87667322.cms">Small investors ahoy! Global investment banks are telling their clients to take profits from India</a> <a href="https://www.businessinsider.in/stock-market/markets/news/tata-motors-maruti-and-hdfc-are-among-the-top-losers-as-fear-of-the-new-covid-variant/articleshow/87923451.cms">Biggies like Tata Motors, Maruti, and HDFC are among top losers as fear of new COVID variant takes the wind out of Indian stocks</a> <a href="https://www.businessinsider.in/stock-market/news/pvr-inox-mainland-china-barbeque-nations-share-price-falls-due-to-new-covid-19-variant/articleshow/87925164.cms">Shares of PVR, INOX, Burger King, Barbeque Nation tumble as investors panic over the new COVID-19 variant</a>

Foreign investors have pulled out nearly $7 billion in the last two months, and over $12 billion since April this year

<ul><li><keyword id="7946308" type="General" weightage="100" keywordseo="5g-spectrum-auctions" source="Orion">5G spectrum auctions</keyword> are almost here after years of delay.</li><li>With the AGR dues case behind them, telcos and the government are coordinating to address each other’s needs.</li><li>Yet, <keyword id="6450594" type="General" weightage="20" keywordseo="5g-spectrum" source="Orion">5G spectrum</keyword> auctions may not offer the bumper harvest that 4G did.</li><li>We decode all the reasons that telcos have to go slow with bidding for <keyword id="764355" type="General" weightage="20" keywordseo="5g" source="Orion">5G</keyword> spectrum.</li></ul>The government has been pinning its hopes on a bumper earnings from 5G spectrum sale to bolster its revenues, but experts suggest it should temper its expectations and not expect a repeat of 4G spectrum auctions. 5G spectrum auctions are scheduled to begin on July 26, 2022. All the three leading telcos – <keyword id="6354504" type="General" weightage="20" keywordseo="reliance-jio" source="Orion">Reliance Jio</keyword>, <keyword id="15491" type="General" weightage="20" keywordseo="airtel" source="Orion">Airtel</keyword> and <keyword id="1553175" type="General" weightage="20" keywordseo="vodafone-idea" source="Orion">Vodafone Idea</keyword> – have tested their networks and demonstrated that they are 5G ready. But the government has been pushing back the auctions – to settle the ongoing issue of <a href="https://www.businessinsider.in/business/telecom/news/airtel-opts-for-agr-dues-moratorium-becomes-the-second-telco-to-do-so/articleshow/87254202.cms">AGR dues</a>. India’s telecom ministry and regulator sprung into action to speed up the auction process. But, its first roadblock came in after the telcos petitioned the government for a 90% cut in base spectrum prices. However, the government cut them only by 40%. The government is banking on spectrum auctions to fill its coffers, at a time when fiscal deficit in April and May has shot up to 12% of the budgeted estimate, as opposed to 8% in the same period last year. <div type="Article" hostid="261" msid="92521472" title="Akash Ambani to head Reliance Jio - that’s just phase I of Mukesh Ambani’s succession plan" mstype="2" mssubtype="0"></div> The LIC IPO fizzled out, rising inflation and the Rupee hitting record lows in the last week resulting in a decline of billions of dollars in <a href="https://www.businessinsider.in/finance/news/rbis-efforts-to-save-rupee-has-made-a-big-dent-in-its-forex-reserves/articleshow/92654557.cms">forex reserves</a> – there are several reasons for the government to extract as much as it can from the telcos. However, given the way 5G spectrum usage policies are shaping up, a bumper harvest like it was the case with 4G seems to be difficult. <cmsannotation type="cmsannotation" annotationid="Why the govt should not expect a bumper harvest from 5G spectrum auctions" comment="subhead" text="Why the govt should not expect a bumper harvest from 5G spectrum auctions">Why the govt should not expect a bumper harvest from 5G spectrum auctions</cmsannotation> The last major spectrum auction to take place was that of 4G spectrum in 2021 – this was after the telecom industry went through years of distress and consolidation after Jio’s entry in 2016. The government scooped up ₹77,800 crore from the auctions despite only a third of the spectrum being acquired by telcos. Telcos bid for the spectrum strategically, too – with the bulk of the purchases made in the mid-range, which is capable of delivering speeds ranging from 100-900 Mbps. “Don’t expect a bidding war. More than adequate spectrum is available for the three operators,” stated a report by JP Morgan. That and getting less than the desired price cut leaves telcos with little motivation or the need to bid aggressively for 5G spectrum. <div type="Article" hostid="261" msid="92356710" title="INTERVIEW: The big picture on 5G, Big Tech-telco war with COAI’s Dr SP Kochhar" mstype="2" mssubtype="0"></div> <cmsannotation type="cmsannotation" annotationid="Private 5G networks could also play spoilsport" comment="subhead" text="Private 5G networks could also play spoilsport">Private 5G networks could also play spoilsport</cmsannotation> The government allowing private 5G networks – that is, companies like TCS, for instance, can run their own private networks by bidding for the respective category – has also raised the hackles of telcos. COAI, the industry body representing telcos, has asked the government to impose ‘tough conditions’ for allowing private companies to run their own 5G networks. COAI’s director general Dr SP Kochhar <a href="https://www.businessinsider.in/business/telecom/news/interview-the-big-picture-on-5g-big-tech-telco-war-with-coais-dr-sp-kochhar/articleshow/92356710.cms">told</a> Business Insider India that enterprises will likely contribute to 70% of 5G revenue, and if telcos can’t serve Big Tech, then they will have to draw up new business plans. “Relatively high prices and the risk of dilution to telcos’ upside, with DoT approving direct allocation of spectrum to enterprises for deploying private networks, are negatives,” stated a report by IIFL Securities. Essentially, the clients which telcos are trying to bag as 5G consumers, will turn into competitive bidders. <cmsannotation type="cmsannotation" annotationid="Spectrum sharing – sweetener for telcos, sour for the govt" comment="subhead" text="Spectrum sharing – sweetener for telcos, sour for the govt">Spectrum sharing – sweetener for telcos, sour for the govt</cmsannotation> Another reason why 5G spectrum auction could fizzle out is spectrum sharing – according to a report, TRAI is apparently considering allowing telcos to share airwaves. This will solve two problems – first, telcos can monetize spectrum where they have it in excess, or if they need additional spectrum but don’t own it in a given circle, they can lease it from another telco. This should also alleviate liquidity concerns for the telcos involved. Secondly, telcos will also be discouraged from having idle airwaves. “But now with merely three players in the market with only two of them looking for serious investments, and the government's plan to offer spectrum through an annual schedule, there seems limited need to invest at a high price,” said a report by Motilal Oswal. <div type="Article" hostid="261" msid="92382529" title="5G in India – does the aam aadmi even need it?" mstype="2" mssubtype="0"></div> While spectrum sharing exists today, it’s restrictive and requires both the telcos to hold licenses in the same circle and frequency. TRAI is <a href="https://economictimes.indiatimes.com/industry/telecom/telecom-news/trai-looking-at-easing-spectrum-sharing-rules/articleshow/92446321.cms">exploring</a> the removal of these restrictions. However, if this passes, the government may end up realizing even less money from auctions. <cmsannotation type="cmsannotation" annotationid="How telcos could bid for 5G spectrum" comment="subhead" text="How telcos could bid for 5G spectrum">How telcos could bid for 5G spectrum</cmsannotation> Analysts at IIFL Securities believe that telcos could go for only 4 out of 10 bands, with Jio and Airtel topping up their sub-GHz holdings. For now, telcos are likely to focus on the crucial 850MHz and 900MHz frequencies, while the more expensive 600MHz and 700MHz frequencies might not see any action, the report added. The mid-range, where telcos already hold over 670MHz spectrum, might not see any action. Overall, the report concludes that telcos could bid for spectrum worth ₹71,000 crore – considerably lower than the ₹78,000 crore that the government scooped up from 4G spectrum auctions. <div type="javascript" title="Custom" contenttype="Image"><cdata><![CDATA[]]></cdata></div> SEE ALSO: <a href="https://www.businessinsider.in/finance/news/rbis-efforts-to-save-rupee-has-made-a-big-dent-in-its-forex-reserves/articleshow/92654557.cms">RBI’s ‘Save the Rupee’ bill has hit over $40 billion already and it could add another $40 billion this year</a> <a href="https://www.businessinsider.in/business/corporates/news/ambani-and-adani-valuations-surge-while-tatas-birlas-see-major-declines-in-the-first-half-of-2022/articleshow/92593235.cms">Ambani and Adani valuations surge while Tatas, Birlas see major declines in the first half of 2022</a> <a href="https://www.businessinsider.in/business/corporates/news/mukesh-ambani-steps-down-as-director-of-reliance-jio-akash-ambani-appointed-chairman/articleshow/92521472.cms">Akash Ambani to head Reliance Jio - that’s just phase I of Mukesh Ambani’s succession plan</a>

You Searched For "RBI opposed Tata" and got 4 results

RBI opposes Tata’s decision to pay Docomo over two-year long dispute

BI India Bureau

Infy bags the GST deal

BI India Bureau

Foreign investors have pulled out nearly $7 billion in the last two months, and over $12 billion since April this year

Rounak Jain

5G spectrum auctions might not see a bidding war as there’s ‘enough’ for everyone

Rounak Jain

Popular Keywords

Buying Guides