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Listen to the weekly round-up of news related to business, finance, and economy where we talk about RBI’s 50bps repo rate hike, dearness allowance hike, and the extension given to the Pradhan Mantri Garib Kalyan Anna Yojana. Also, listen to major updates like Porsche’s IPO listing and Sebi barring The Apex Global and its proprietor from the securities markets for four years.

Here’s Weekly Business News at 10:00 am on 1st October 2022.

[Disclaimer: This transcript is auto-generated]
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Let’s begin with news that made headlines this week. The RBI Monetary Policy Committee this week decided to hike the repo rate by 50 basis points to 5.9 per cent, in-line with expectations. RBI Governor Shaktikanta Das said in his post policy meet address that the standing deposit facility rate and the marginal standing facility rate were also increased by the same quantum to 5.65%and 6.15%, respectively. He added that RBI will remain focused on ‘withdrawal of accommodation’. He added that inflation continues to be high. The RBI governor emphasised that the US dollar has reached a new high. However, he maintained that the Indian economy remains resilient despite global headwinds wherein global recession fears are mounting, and inflation is high. The MPC cut the FY23 GDP growth forecast to 7% from 7.2% projected earlier. Meanwhile, inflation projection for FY23 has been kept unchanged at 6.7% on upside risks to food prices.

In what could give a significant push to consumption during the ongoing festive season, the Union government this week hiked dearness allowance for its employees and dearness relief for pensioners by 4% of basic pay/pension. The largesse will cost the exchequer Rs 8,568 crore in the current financial year and benefit about 4.77 million Central Government employees and 6.86 million pensioners. The Centre’s DA/DR hikes are usually followed by state governments for their employees and pensioners. The DA/DR increase effective July 1 is based on 12-month average of the Consumer Price Index for the period through June 2022. The enhanced DA/DR rates will be paid with September salary with arrears of two months, giving a substantial sum in the hands of employees. Festive time consumption usually gives a leg-up to economic growth and tax revenue collections.

Meanwhile, the government also extended the Pradhan Mantri Garib Kalyan Anna Yojana by another three months to December 2022, a move which will cost the exchequer Rs 44,762 crore more. The extension of the free ration scheme for the seventh time will make it even more difficult for the Centre to stick to the FY23 fiscal deficit target of 6.4% of the gross domestic product. The decision was taken by the Cabinet despite concerns over a likely dip in India’s grain stocks, particularly of wheat, the export of which has already been banned. The global grains stocks are also becoming tight due to the persisting geopolitical tensions. Under PMGKAY, which was launched in April 2020 in the midst of first Covid wave and a stringent nationwide lockdown, 800 million people get 5 kg of food grains free of cost every month.

In some good news, becoming a shareholder of Porsche will soon be possible. The mega Porsche IPO hit the street with Volkswagen AG, its parent company, offering shares to investors through the initial public offering route. Although the stock market is driving down prices, Porsche, the luxury sports car manufacturer, is not choosing to go for a pit stop. The parent firm Volkswagen is aiming to raise up to 9.4 billion euros and values Porsche at up to 75 billion euros. A total of 911 million Porsche AG shares will be divided into 455.5 million preferred shares and 455.5 million ordinary shares.

Moving on. The government has made the registration of IMEI number of all mobile phones mandatory before their sale in India on its anti-counterfeit and lost handset blocking portal from January 1, 2023. According to a notification dated September 26, all mobile phones, whether made locally or imported, will need to be registered and get IMEI, which is the International mobile equipment identity number, certificates from the Indian Counterfeited Device Restriction portal that is run by the Department of Telecommunications. The notification said, “the manufacturer shall register the international mobile equipment identity number of every mobile phone manufactured in India with the Indian Counterfeited Device Restriction portal of the government of India in the Department of Telecommunications prior to the first sale of the mobile phone.”

In other news, Markets regulator Sebi barred The Apex Global and its proprietor Yadunath Singh Thakur from securities markets for four years and directed them to refund money collected from investors through unauthorised investment advisory services. The regulator found that The Apex Global and Thakur were engaged in the business of providing investment advice to their clients and for consideration and thus, were acting as investment advisers. They were involved in such investment advisory services without obtaining regulatory approval from it, which is in violation of Investment Advisers norms, the Securities and Exchange Board of India said in its order on Wednesday. Through such services, they had received a total amount of Rs 1.23 crore from June 2013 to December 2019 through unregistered investment advisory activities, it added.

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Weekly Business News Roundup at 10:00 am on 1st October 2022