Companies & Sectors
Tribunal asks CCI to reconsider penalty order: SpiceJet
Mumbai : SpiceJet on Wednesday said the Competition Appellate Tribunal (COMPAT) has set aside an impugned Competition Commission of India (CCI) order penalising the low-cost airline and two more rivals for alleged concerted action in relation to cargo fuel surcharge.
 
"COMPAT vide it's order dated April 18 has set aside the impugned CCI order. The matter has been remanded back to the CCI with the direction to re-consider the report of the Joint Director General (JDG) and to take appropriate decision under Section 26(8) of the Competition Act, 2002," said a SpiceJet regulatory filing.
 
SpiceJet, Jet Airways and Indigo airlines were fined a total of Rs.258 crore for acting in a concerted manner to fix and revise fuel surcharge (FSC) prices for transporting cargo on November 17, 2015.
 
Accordingly, the CCI imposed penalties amounting to Rs.151.69 crore, Rs.63.74 crore and Rs.42.48 crore on Jet Airways, InterGlobe Aviation and SpiceJet, respectively.
 
Asking CCI to pass a fresh order, the tribunal said in case the fair trade regulator disagrees with the findings of JDG after reconsidering, it can indicate the reasons.
 
"The CCI shall indicate the reasons for such disagreement and issue notice to the parties, incorporating the reasons of disagreement and give them opportunity to file their replies/objections and thereafter to pass appropriate order in accordance with law," said the regulatory filing citing the tribunal order.
 
Disclaimer: Information, facts or opinions expressed in this news article are presented as sourced from IANS and do not reflect views of Moneylife and hence Moneylife is not responsible or liable for the same. As a source and news provider, IANS is responsible for accuracy, completeness, suitability and validity of any information in this article.

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Vijay Mallya convicted in cheque bounce case
Hyderabad : A city court on Wednesday convicted now defunct Kingfisher Airlines chairman Vijay Mallya in a cheque bounce case.
 
The 14th Additional Chief Metropolitan Magistrate convicted the industrialist under section 138 of Negotiable Instruments Act.
 
The court will pronounce the quantum of punishment on May 5, said Ashok Reddy, lawyer of GMR Hyderabad International Airport Ltd. which filed the case.
 
The liquor baron is currently in Britain.
 
The court had last month issued a non-bailable warrant against him on a petition filed by GMR Hyderabad International Airport Ltd. seeking his prosecution for defaulting on payments and cheating the company by issuing cheques that bounced.
 
The airport officials had filed 11 cases against Kingfisher for non-payment of dues to the tune of Rs.8 crore.
 
Cheques issued for Rs.50 lakh had bounced and a case in this connection was filed against him under provisions of the Negotiable Instruments Act.
 
Disclaimer: Information, facts or opinions expressed in this news article are presented as sourced from IANS and do not reflect views of Moneylife and hence Moneylife is not responsible or liable for the same. As a source and news provider, IANS is responsible for accuracy, completeness, suitability and validity of any information in this article.

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Nifty, Sensex looks overbought – Wednesday closing report
Nifty looks ripe for a small reversal if it closes below 7,856
 
We had mentioned in Monday’s closing report that Nifty, Sensex were in a strong uptrend and that Nifty would reverse only if it closed below 7,827. The major indices ended flat after the optimism of last week. The trends of the major indices in the course of Wednesday’s trading are given in the table below:
 
 
Profit booking, coupled with negative global indices and weak crude oil prices, kept the bulls in check the Indian equity markets on Wednesday. Consequently, the key indices of the Indian equity markets closed the day's trade flat. The BSE market breadth was tilted in favour of the bulls -- with 1,471 advances and 1,149 declines. The Indian equity markets were closed on Tuesday on account of Mahavir Jayanti.
 
After coming under attack from Finance Minister Arun Jaitley for his "one-eyed king" comment on India's growth rate, Reserve Bank of India (RBI) Governor Raghuram Rajan on Wednesday seemed to offer the peace pipe to the Centre saying that the country's current growth rate reflects the hard work of the government. “Current growth reflects efforts of government, people,” Rajan said, while at the same time apologising to the visually impaired for his earlier statement. “I want to apologise to a section of the population, the visually impaired, who might be hurt by my statement. My intent in saying 'One-eyed King in the land of blind' was to say that our outperformance is in the midst of global weakness,” Rajan clarified while addressing the 12th convocation of the National Institute of Bank Management, Pune. 
 
Jaitley had on Tuesday objected to Rajan's comment on India's growth saying that a 7.5% growth rate for any other country would have meant a “celebration”. Rajan, however, added that India's growth rate, though commendable, should not lead to euphoria as the potential for further growth is undoubtedly high. “India is the fastest growing large economy in the world. But as a central banker, I cannot get euphoric with India's economic growth rate as it is at the cusp of substantial pick-up in growth. I see scope to grow faster given capacity utilisation and agricultural output," Rajan said. “India has a long way to go to boost per capita income,” he added. Referring to the current status of public sector banks in the country, Rajan said: “RBI has offered all help to Bank bureau in reforms.” The earlier comment from Rajan, who often comes up with some eyebrow-raising one liners, had not gone down well with the central ministers. First Commerce Minister Nirmala Sitharaman said she did not approve of his use of words, followed by an observation from Minister of State for Finance Jayant Sinha. 
 
Drawing parallels between Reliance Jio and Reliance Communications’ 2003 launch, Deutsche Bank Markets Research has said Bharti Airtel appears to be better prepared with its 4G plans and it does not anticipate any impact on its revenue share or margins from the Jio launch. “There are parallels between Jio's current playbook and Reliance Communications’ launch in 2003; the executive management is the same in both instances. Reliance Communications' pan-India launch was on a scale comparable to that of the incumbents and it surpassed Bharti's voice throughout within three years,” the research report said here on Wednesday. “However, Bharti’s revenue share and margins were not affected by its entry. Bharti appears better prepared this time and, contrary to investor expectations, we do not anticipate any impact on its rev-share or margins from Jio’s launch. We believe Bharti’s business performance is poised for multi-year improvement,” it added. Reliance Jio's full commercial launch is expected by December this year. Repeated postponements have dogged the project. The continuity in Bharti's management and the lessons learnt post Reliance Communications' launch in 2003 have likely helped it to anticipate Jio's strategy this time around. “Bharti has been strategic in acquiring the largest amount of incremental spectrum since 2014. This has helped it to pre-empt Jio by launching 4G on a pan-India basis and increase the competitive gap with incumbent peers, which remain spectrum constrained in their key markets,” Deutsche Bank Market Research stated. It said Jio will impact data yields but not the revenue table of the sector. “We expect data yield to fall 20% per annum for next three years to reach Rs0.12 per MB compared to the current level of Rs.0.24 per MB. However, we believe Jio will not affect package pricing - it is likely to offer more data at existing price points.” The report said: “Bharti rev-share and margins are unlikely to be affected by Jio's launch. Weaker players that have a combined 25% revenue share are more at risk.” Bharti Airtel shares closed at Rs356.50, down 0.57% on the BSE.
 
Housing Development Finance Corp (HDFC) on Wednesday said it intends to sell up to 10% stake in its life insurance arm by way of an initial public offer when market conditions are favourable. The development financial institution held a 61.3% stake in the non-listed HDFC Standard Life Insurance Company as on March 31, and said in a regulatory filing with the bourses that it intended to retain it as a subsidiary after the public offer. For the financial year ended March 31, HDFC Life had a gross premium income of Rs.16,313 crore and a total income of Rs.17,954 crore. The profit-after-tax was Rs.818 crore, while the net worth was Rs.3,150 crore. The announcement on divestment was made just before the opening bell at Indian bourses on Wednesday. HDFC Life is a joint venture between the Indian financial institution and Standard Life, a global long-term investment savings player with headquarters at Edinburgh in Britain. Earlier this year, HDFC had concluded the sale of another 9% stake in HDFC Life to Standard Life for around Rs.1,700 crore, to take the British company's holding to 35% from the earlier 26%. This had valued HDFC Life at around Rs18,500 crore. The group now hopes for a valuation of around Rs22,500 crore during the public offer. HDFC shares closed at Rs1,138.40, up 0.98% on the BSE.
 
The top gainers and top losers of major indices are given in the table below:
 
 
The closing values of the major Asian indices are given in the table below:
 

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