Daily Market Update- NOV 18TH 2020

unnamed Daily Market Update  NOV 18TH 2020

The NSE has confirmed that the funds and securities worth Rs.2,300 crore belonging to about 235,000 investors of Karvy Stock Broking had been settled; including all fund balances up to Rs.30,000. The exchange and the regulator are in the midst of initiating regulatory proceedings against Karvy. In 2019, Karvy had been banned by SEBI on grounds of misusing the power of attorney given by clients. In fact, Karvy had transferred these shares to a group company and even pledged these shares for funding lines. The shares have already been transferred to clients and banks have had to hold non-collateralized loans.

The centre sought time from Delhi High Court to challenge an international arbitration tribunal’s award in favour of Vodafone in connection with the Rs.22,100 crore retrospective tax demand made by the CBDT. Indian government can now either abide by the decision or take up the matter legally. Harish Salve is representing Vodafone in this case. The court has listed the matter for further hearing on December 08. It may be recollected that Vodafone had initiated the arbitration proceedings under the aegis of the India-UK and India-Netherlands Bilateral Party Agreement. Vodafone has been accused of flouting legal process by initiating two international arbitrations. However, such BIPA deals are governed by international laws and Indian government being party to BIPA cannot object to such legal recourse.

Flipkart Group, in a bid to enhance customer experience and the interface of its offerings, announced the acquisition of Scapic, an augmented reality company.  It is a Cloud-based platform which empowers the creation and publishing of AR / 3D content. Scapic focuses on e-commerce and marketing verticals. Scapic will help Flipkart to make the platform easier to navigate and richer for consumers in terms of content and user-interface experience. Some of the changes that Flipkart is planning with the help of Scapic include deeper camera experiences and virtual storefronts for an immersive buying experience.

Lakshmi Vilas Bank has been placed under a 30-day moratorium by the RBI. Its board was superseded and withdrawals capped at Rs.25,000 per depositor. LVB has been seeing a consistent deterioration in its financial health and solvency ratios in the past few months. The problems started after the Indiabulls deal fell through. The former non-executive chairman of Canara Bank, T N Manoharan, has been appointed the administrator of the bank. RBI has also placed in the public domain a draft scheme for the amalgamation of LVB with DBS Bank, a profitable private bank headquartered out of Singapore.

NSE listed Embassy REIT will purchase the assets of Embassy TechVillage from shareholders, including Blackstone, for Rs.9782 crore. The deal is subject to regulatory approvals. Embassy has the right of first offer or ROFO to acquire these assets and it comprises 6.1 MSFT of completed area and 3.1 MSFT of under-construction area. More than a third of these are already pre-leased to JP Morgan. The Rs.9782 crore buyout will be funded by issuing equity of Rs.6,000 crore and the balance will be funded by debt. Embassy has confirmed that commercial realty has continued to grow despite the threat of WFH model.

There is a new feather in the cap for DLF, gaining recognition as an index component of the Dow Jones Sustainability Indices or DJSI in emerging markets category. This inclusion is more an attestation of the track record of DLF with respect to its governance as well as social and environmental initiatives. While there are already 11 companies from India in this list, DLF is the first realtor in this list. DLF managed to achieve 93 percentile overall score in governance, environment and social dimensions. DLF ranked 18th among 250 global real estate companies across the US, UK, Japan, Singapore and Hong Kong in terms of Corporate Sustainability benchmarks. The DJSI was jointly created by S&P Dow Jones Indices, a globally reputed index provider, and SAM, a recognized specialist in sustainable investing across the world.

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