The federation, which represents key players like SAIL, RINL, MECON Ltd., NMDC Iron and Steel Plant, and the National Mineral Development Corporation, submitted a proposal advocating for this consolidation instead of privatization. They argued that combining the unique strengths of these firms could significantly aid SAIL in reaching its target of 35 million tonnes of production capacity by 2030. SEFI highlighted ongoing issues within these companies, such as inadequate human resources and raw material shortages, which have undermined their financial viability.

The Nagarnar steel plant in Bastar, with a capacity of 3 million tonnes, faces significant staffing challenges, operating with only 200 officers and 1,000 employees. MECON Ltd., tasked with running the plant, lacks prior experience in steel plant operations, exacerbating operational difficulties. Despite its skilled workforce, RINL, which has a production capacity of 7 million tonnes but is operating at around 60% capacity, struggles with iron ore shortages and high raw material costs.

The federation also questioned the rationale behind FSNL’s disinvestment, pointing out the company's reserves of ₹170 crore, movable assets worth ₹100 crore, and a substantial work order of more than ₹1,000 crore.

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In a circular issued today, the NSE stated, "To standardize the opening price discovery/equilibrium price across exchanges during the special pre-open session for initial public offerings on the SME platform, it has been decided to put an overall capping up to 90% over the issue price for SME IPOs." This new rule aims to ensure consistency across exchanges and mitigate excessive volatility in the opening price of SME IPOs.

This price control cap specifically applies to the SME segment and does not extend to Mainboard IPOs, relisted securities, or public debt. The initiative is expected to bring greater stability and predictability to the SME IPO market, benefiting both issuers and investors by providing a more controlled and transparent price discovery process.

Please refer to the NSE circular dated July 4, 2024 for further information. Circular No. NSE/SME/62757

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The company has entered into an agreement with a Registered Vehicle Scrapping Facility (RVSF). "This positions Ashok Leyland strategically on our path to circularity and reducing our environmental impact," the company's annual report for FY24 stated.

Additionally, the Hinduja Group's flagship company is developing a digital platform called Re.AL for the used vehicle market. This platform will facilitate customers in reselling their vehicles in line with the government's vehicle scrappage policy.

As a major manufacturer of trucks and buses, Ashok Leyland expects the commercial vehicle industry to grow due to replacement demand, mandatory scrapping of older government vehicles, and steady macroeconomic growth.

Embracing Alternative Technologies

Dheeraj Hinduja, Chairman of Ashok Leyland, highlighted in the annual report that the company is gearing up to offer a variety of products powered by alternative fuels, including battery-operated vehicles, which are currently undergoing trials.

The company is concentrating on technologies like battery electric, hydrogen ICE, fuel cell, LNG, and CNG. "Ashok Leyland is well-prepared to provide clean energy options beyond electric propulsion. Our CNG and LNG trucks and buses are already in operation, and we are making progress with methanol as a new fuel source. We have also deployed prototype green hydrogen trucks in real-world conditions. In essence, Ashok Leyland is ready to offer a comprehensive range of clean energy vehicles," he said.

Ashok Leyland is also making significant strides in the green mobility sector through its subsidiary, Switch Mobility, which focuses on electric buses and light commercial vehicles.

Currently, over 950 electric buses are deployed worldwide, with an expanding order pipeline. Sales in the European market are expected to commence later this year. Recently, the company introduced the Boss electric truck and is nearing the launch of a fully electric 55-tonne tractor-trailer.

"The EV sector is anticipated to thrive, supported by favorable government policies," Hinduja added.

With numerous new products across various fuel segments in development, the company's R&D expenditure as a percentage of turnover rose to 1.30 percent in FY24 from 1.19 percent in FY23.

In FY24, Ashok Leyland invested ₹1,525 crore in its mobility divisions. After acquiring a 100 percent stake in OHM Global Mobility Pvt Ltd (OHM India) from OHM International Mobility Ltd, UK, for a nominal amount of ₹1 lakh, it invested an additional ₹300 crore in OHM. The company also invested ₹1,200 crore in Optare Plc., UK, raising its stake to 92.59 percent.

Ashok Leyland and TVS Mobility Pvt Ltd have formed a joint venture, TVS Trucks and Buses Private Ltd (TVS Trucks), with Ashok Leyland investing approximately ₹25 crore and holding 49.90 percent of the paid-up share capital.

While advancing new energy technologies, Ashok Leyland is also expanding its traditional ICE product range to address market needs. The company plans to introduce at least six new light commercial vehicle products this fiscal year. "In FY24, more than 30 percent of our sales came from newly launched products," noted Hinduja.

Ashok Leyland's share price closed at ₹234.25, down 1.91 percent, on the BSE on Tuesday.

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To encourage small investors to participate in the securities market, SEBI has raised the limit for the basic service demat account (BSDA) from ₹2 lakh to ₹10 lakh. These new guidelines will start on September 1, as stated by SEBI in a circular.

Increasing the limit for the value of securities in a BSDA aims to make it easier for small investors to trade in the stock market and promote their financial inclusion.

A BSDA is a simpler version of a regular demat account, introduced by SEBI in 2012 to reduce demat charges for investors with smaller portfolios.

To qualify for a BSDA, an individual must meet specific criteria: they can have only one demat account as the main holder, only one BSDA across all depositories, and the total value of securities in the account must not exceed ₹10 lakh, including both debt and non-debt securities.

Previously, an individual could hold up to ₹2 lakh in debt securities and ₹2 lakh in other securities in a single demat account to qualify for a BSDA.

For portfolio values up to ₹4 lakh, SEBI has stated that there will be no annual maintenance charge for a BSDA. For portfolios valued between ₹4 lakh and ₹10 lakh, the annual charge is ₹100. If the portfolio value exceeds ₹10 lakh, the BSDA will automatically convert into a regular demat account.

For BSDA services, SEBI mentioned that electronic statements will be free, while physical statements will cost ₹25 each.

Depository Participants (DPs) will only open BSDAs for eligible accounts unless the account holder opts for a regular demat account via email. DPs must review and convert eligible demat accounts to BSDAs within two months unless the account holder chooses to keep their regular demat account via email. This review will continue at the end of each billing cycle.

Earlier this month, SEBI released a consultation paper on increasing the threshold limit for BSDAs.

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The Indian currency's slide past the 83.50 mark was driven by multiple factors. Persistent inflationary pressures, elevated crude oil prices, and a robust dollar index, which rose above 105.20, have collectively weighed on the rupee. Additionally, geopolitical uncertainties and market anxieties surrounding the Federal Reserve's upcoming policy decisions further exacerbated the rupee's decline​.

Market Reactions and Implications

Currency traders and analysts closely monitor the situation, with some predicting further depreciation if the rupee fails to maintain its resistance levels. "There isn’t much fresh positioning on USD/INR as traders are awaiting key economic data," noted a market trader​​.

This record low of the rupee highlights broader regional trends. The US dollar has outperformed 22 of the top 23 Asian currencies this month, signalling its dominance despite global economic headwinds​​.

Government and RBI Response

The Reserve Bank of India (RBI) has been observed intervening less aggressively in the forex market recently, a shift from its earlier strategies to curb volatility. This hands-off approach has led to speculations about potential new policies or a strategic reserve buildup.

Future Outlook

Economists suggest that if current trends continue, the rupee might see further lows, possibly touching 83.72 against the dollar. This situation demands a cautious approach from investors and policymakers alike to navigate the prevailing economic turbulence and mitigate further currency devaluation.

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The BlackRock Nifty 50 ETF will be traded on the Tokyo Stock Exchange, offering Japanese investors a convenient way to invest in India's leading companies. This initiative marks the first time the Nifty 50, a benchmark index of the National Stock Exchange of India (NSE), will be directly available in the Japanese market.

"The launch of this ETF is a significant milestone, underscoring the global appeal of Indian equities," said Ryan S. Hiraki, Managing Director and Head of iShares Japan at BlackRock. "Japanese investors can now easily access a diversified portfolio of India's top 50 companies, representing key sectors such as information technology, financials, and consumer goods."

The Nifty 50 index includes major Indian companies like Reliance Industries, Tata Consultancy Services, and HDFC Bank, which are known for their strong performance and market capitalization. By listing the ETF in Japan, BlackRock aims to cater to the growing interest among Japanese investors in emerging markets, particularly India, which has shown robust economic growth.

The initiative is part of BlackRock's strategy to expand its offerings in the Asia-Pacific region. The company believes that India's economic prospects and its reformative measures have made its markets more attractive to international investors.

The launch has been well-received in financial circles. The National Stock Exchange of India (NSE) expressed optimism about the increased visibility and accessibility of the Nifty 50 index on a global scale. "This development is a testament to the growing recognition of India's economic potential," said Ashishkumar Chauhan, CEO of NSE. "We are excited to see the Nifty 50 reach a wider audience through BlackRock's extensive network."

Investors can look forward to the ETF's performance as it provides an opportunity to capitalize on India's dynamic market. BlackRock's robust ETF framework ensures that the Nifty 50 ETF will be a significant addition to the investment options available in Japan, promoting cross-border investment flows and financial integration.

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SEBI's proposed changes include higher margins for options contracts and enhanced disclosure requirements for retail investors. The focus is on trades below ₹1 million, which accounted for 78% of the transactions on the National Stock Exchange (NSE) in April. Retail investors, who contribute to 35% of India's derivatives trading, are a primary target of these regulatory updates.

"While the growth in retail participation is encouraging, it also necessitates stronger regulatory frameworks to protect investors and maintain market integrity," a SEBI official stated.

The market's exponential growth has raised concerns about potential systemic risks. By imposing higher margins, SEBI aims to curb speculative trading and enhance market stability. This step aligns with global trends where regulatory bodies are tightening controls to safeguard markets against excessive volatility and financial instability.

Industry experts believe these measures will foster a more transparent and resilient trading environment, ensuring that retail investors are well-informed and protected against undue risks.

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One of the key steps to start investing in mutual funds (MFs) is to link a valid bank account to your MF account. This allows for easy transactions, such as buying or redeeming mutual funds, and for receiving dividend credits.

The market regulator SEBI allows investors to link up to five bank accounts to a single MF folio. If you change your bank account details, it is crucial to update them with the fund house to ensure that redemption proceeds and dividends are credited to your new account.

Why Bank Account Details Might Change:
There are various reasons why you might need to change your bank account details. When this happens, it's important to update your MF folio with the new information.

How to Update Bank Account Details:

1. Single Account Change: If you're changing details for just one bank account, you can use the Change of Mandate form provided by the fund house. This form needs to be signed by all folio holders as per the mode of holding.
2. Multiple Accounts Change: For changes involving multiple bank accounts, you need to fill out a Multiple Bank Accounts Registration form. Specify the primary account for transactions.
3. Systematic Investment Plan (SIP): To change the bank mandate for an ongoing SIP, download and fill out the Change of Bank Mandate form for SIP from the fund house’s website. This form only updates the bank details for SIP and not for other transactions.

Additional Methods:
You can also update your bank details through Registrar and Transfer Agents (RTAs) like CAMS and KFintech, or platforms like MFCentral and MFUtility.

Cooling-Off Period:
Upon receiving a change of bank mandate request, a 10-day cooling-off period is implemented to prevent fraudulent or unauthorized transactions. Redemption proceeds will only be paid after this period.

Required Documentation:
For each bank account to be added, you must provide:

• Bank account number
• Type of account (savings or current)
• Bank name
• Branch
• City and pin code
• MICR and IFSC codes

Updating your bank account details ensures that all your transactions and dividend payments are processed smoothly and securely.

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In a significant milestone, Uttar Pradesh has become the second state in India to surpass 1 crore registered investors in the equity markets. According to the latest NSE Market Pulse report, the state saw an additional 2.2 lakh investors in April, bringing the total number of registered investors to 1.01 crore. This makes Uttar Pradesh the second state after Maharashtra to cross the eight-digit mark in investor registrations.

Impressive Growth Amidst Slowing Registrations

The combined investor base of Uttar Pradesh and Maharashtra now constitutes 28% of the total investor base in the country. However, despite this achievement, the rate of new investor registrations has been slowing down. Compared to March, which saw an additional 2.4 lakh new investors, April witnessed a slight decline. This trend has been consistent since January, when investor registrations peaked at 23.3 lakh.

Maharashtra's Position and Trends

Maharashtra continues to hold a significant position, coming in second for new investor additions in April with 1.9 lakh registrations. However, this number represents a 9% decrease compared to March. Despite the increasing number of investors, Maharashtra's share of the total investor base has also slightly declined from nearly one-fifth to 17%.

Top States with Highest Investors in Indian Stock Market

Other Leading States in Investor Registrations

Gujarat holds the third-largest investor base in the country, with 82.9 lakh registered investors. In April, Gujarat added 94,000 new investors, a drop from the 1.1 lakh added in March. West Bengal follows with 53.1 lakh investors, taking fourth in the overall investor base. Notably, West Bengal added 1.09 lakh new investors in April, securing third place in new investor additions for the month. Rajasthan, closely trailing West Bengal with 52.7 lakh investors, contributes to the top five states, which collectively account for nearly half (48.3%) of the total investor base in India.

As Uttar Pradesh continues to strengthen its position in the equity market, it is essential to maintain the momentum by further enhancing financial education and ensuring easy access to investment opportunities. The collaboration between government bodies, financial institutions, and educational platforms will be critical in sustaining this growth trajectory.

In summary, Uttar Pradesh's achievement of crossing 1 crore registered investors marks a significant milestone in India's financial landscape. It underscores the state's potential as a major player in the equity markets and sets a precedent for other states to follow.

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The proposed IPO will be subject to necessary approvals from the Reserve Bank of India and the Department of Financial Services, Government of India. Details regarding the size of the issue, timing, and other related modalities will be decided in due course, the bank stated in its regulatory filing.

Shares of Canara Bank responded positively to the news, closing 2.56% higher at Rs 118 post-announcement.

This decision is part of a broader strategy, as earlier in the day, Canara Bank's Board also approved the raising of Rs 8,500 crore via debt instruments for the financial year 2024-25. This includes Rs 4,000 crore through Basel III Compliant Additional Tier I bonds and Rs 4,500 crore through Tier II bonds, aimed at enhancing the bank's capital adequacy.

In another strategic move, Canara Bank disclosed plans to sell a 13% stake in Canara Robeco Asset Management Company (CRAMC) by taking the mutual fund subsidiary public. This follows the in-principle approval granted last December to commence the listing process of its mutual fund arm.

These initiatives underscore Canara Bank's efforts to strengthen its capital base and unlock value from its subsidiaries, setting the stage for sustained growth and financial stability.

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