Morning Scan: All the big stories to get you started for the day - Moneycontrol.com

A round-up of the biggest articles from newspapers.

Vodafone, Cairn unhappy over some terms for settling retro tax cases

In an interesting twist of events, the UK majors Vodafone Group and Cairn Energy expressed their concerns over some of the terms mooted for settling retro tax cases, reported The Economic Times.

Why it's important: The main bone of contention is that the government wants them to give a declaration waiving any future claims once the tax disputes are solved.
The companies see this clause is difficult to comply with.

They feel putting the onus of settlement on them is tough as they don't have control of any litigation by a third party.

SEBI looking at reasons behind surge in options trades

The Securities and Exchange Board of India (SEBI) is concerned over a jump in options trading from the cash market recently, reported The Economic Times.

Why it's important: The option trading involves more risks.
It needs greater awareness to highlight the problems in such trading from stock markets and brokers.
SEBI feels the new retail traders are taking options trading without understanding its risks for quick returns.

SEBI is looking at the reasons behind such an increase.

Growth & profitability beyond expectation: Capgemini CEO

Capgemini CEO Aiman Ezzat, in an interview with The Times of India, said there is a huge talent shortage in the market and the company is hiring more freshers.

What the CEO says: The company sees the market is improving and everything is "beyond expectations — the growth, profitability and cash, all the sectors and geographies, and all the business lines."
He says the growth is not only because of the pent-up demand.
There is structural acceleration in terms of use of technology.
Attrition is going up for everybody.
There is not enough talent in the market. So, the company will hire more freshers.

According to the Capgemini CEO, the public sector is growing the fastest.

Corporate loan demand down; banks push for retail credit business

The companies are taking less loans nowadays and banks are pushing for more loans to individuals, reported Mint.

Why it's important: There is less demand from corporates.
Outstanding retail loans are at Rs 28.58 trillion against Rs 28.24 trillion for corporates as of July 30.
Individuals are taking more loans to tide over the pandemic-induced hardships.
They are taking the benefits of the low interest rates as well.

For corporates, capacity expansion is yet to go in full steam after the Covid waves.

SBICap plans to raise stake in Investec: CEO

SBI Capital Markets Ltd CEO Arun Mehta said in an interview with Mint that it's planning to raise a stake in financial services firm Investec Capital Services (India) Pvt. Ltd.

What the CEO says: The tie-up with Investec to take care of one key hurdle of SBICap —institutional sales of equity capital market business.
It's a very important requirement for the company and creates a win-win for joint venture partners.

SBICap tried to set it up internally, but in three years, it realized it is quicker and more efficient to go for a tie-up with an established player.

Air traffic passenger traffic sees rise

The air passenger traffic in the domestic sector is increasing steadily, reported Mint.

Why it's important: The increase in the air traffic is due to decrease in new corona cases as well as the less travel restrictions after the strict second wave lockdown.
The average number of daily fliers is up at 220,000.

The average daily departures increased to 1,970.

Tesla mulls fully-owned retail outlets in India

Electric carmaker Tesla is planning to set up fully-owned retail outlets in India, reported Business Standard.

Why it's important: The company is in talks with the government for the purpose.

The single-brand retail needs to cross several hurdles before setting up an outlet.

We want to be stronger before going for an IPO in two years: CavinKare CEO

CavinKare CEO, in charge of the FMCG business, Venkatesh Vijayaraghavan said in an interview with Business Standard that the company is looking at a turnover of Rs 5,000 crore in the next three years.

What the CEO says:
The company wants to increase the physical presence by scaling up existing units in Bangladesh, Sri Lanka and Nepal and also wants to increase exports to much more than the 40 countries.
The firm is looking at increasing the share of foreign market from 4% to 20% of the turnover.

The firm wants to be stronger before going for an IPO after a couple of years.

It's unrealistic for global investors to meet T+1 time frame: ASIFMA head

Lyndon Chao, the head of equities at ASIFMA (Asia Securities Industry & Financial Markets Association), in an interview with Business Standard said that a market transition to T+1 would require significant, coordinated, and expensive structural changes to the settlement process.

What he says: The structural changes needed in technological enhancements and realtime/near real-time trade processing as well.
It is unrealistic to expect that global investors will meet SEBI’s time frame for T+1 of 2022 as it is a time consuming process.
Even the current T+2 settlement cycle from various time zones can be challenging.
T+1 would be even more challenging.
For the US, most global investors operate within the US time zone.
Global investors account for over 20% of India’s market capitalisation.

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Morning Scan: All the big stories to get you started for the day - Moneycontrol.com
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