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Top Diwali Stock Picks; 10 Stock Suggestions By Edelweiss Brokerage

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Birlasoft Ltd

According to brokerage, Birlasoft is competing with larger IT services companies by exploiting its expertise in particular areas within broader sectors.

“Margins have improved consistently over the last few quarters, from 10% in Q1FY21 to 14-15% range currently. Better deal signings focus on niche verticals, top client growth and increased efficiency due to cutting of tail are responsible for improved profitability We expect revenues to grow by 37% over FY21-FY23E and EBIT to grow by 72% over the same period • At CMP, the stock is trading at 24.7x/119.5x FY22E/23E EPS,” the brokerage has said.

Brigade Enterprise

Brigade Enterprise

Brigade has increased its market share to 6% in the last five years after re-calibrating its project launch strategy. Brigade’s sales volume share in inexpensive and mid-market projects with unit sizes up to Rs1.5 crore climbed to 80% in FY21, up from 50% in the previous 3-4 years.

“We believe Brigade is best play on revival in residential market and would continue to maintain its market share given its asset light model, strong Brand and execution track record, growth capital in place, comfortable leverage position and one of best cost of borrowing industry (~8%). Furthermore, ramp up in BEL’s leasing income with large part of capex behind it would act as key catalyst in restricting the downside in its valuations,” the brokerage has said.

Home First Finance Company

Home First Finance Company

With a significant market size of INR50tn in the Economically Weaker Section (EWS) and Low Income Group (LIG) categories and relatively reduced competition from banks, the small ticket / inexpensive home category remains virtually unexplored.

“We believe HFFC is well placed to capitalize on the high growth yet underpenetrated affordable housing market (projected to register ~20-25% CAGR over the medium term). The valuation discount compared to other listed small ticket housing financing companies provide further comfort on the downside. We recommend a ‘BUY’ on the stock with a 1-year target price of INR 763,” the brokerage has said.

ICICI Bank Ltd

ICICI Bank Ltd

According to brokerage, because it proactively recognized stressed assets from previous wholesale loans, the bank’s asset quality has continuously improved over the last few quarters.

“In terms of valuation, ICICI Bank is trading at 2.3x FY23E P/ABV, a 35-40% discount over large peers such as Kotak and HDFC Bank. The valuation gap ought to close, leading to an upside of 22-25% CAGR in the share price over the next two years,” the brokerage has said.

Indo Count Industries Ltd

Indo Count Industries Ltd

The brokerage believes that with increasing US export orders, ICIL’s quarterly volume run-rate has reached 20-22 million metres over the last four quarters, compared to 14-17 million metres a few years ago.

“With multiple industry tailwinds such as robust US import demand, ‘China plus one’ strategy playing out, continuation of export incentives in addition to attractive valuations of ICIL at 15x on FY23E earnings estimates, which is at a 25% discount as compared to its peak multiples, we continue to prefer ICIL in the textiles space. We expect ICIL to deliver Revenue/EBITDA/PAT CAGR of 14%/22%/24% over FY21-23E,” the brokerage has said.

IndusInd Bank Ltd

IndusInd Bank Ltd

The bank has a strong presence in the car finance and microfinance divisions, which account for 41% of its loan book. These are high-risk groups that were disproportionately affected by the epidemic, the brokerage said.

“The stock is currently trading at a discount to the 4 largest private banks (1.6x FY23E P/ABV). We believe that it has the potential to trade at 2.2x P/ABV, implying 30-35% returns over the next 2 years,” thr brokerage has said.

Infosys Ltd

It believes that the company is now seeing high demand, with cumulative transaction wins of more than USD 2 billion in each of the last five quarters. The largest agreement in the company’s history was a USD3.2 billion deal with Diamler in Q3FY21.

“We expect Revenue/EBIT/PAT to grow 40%/41%/42% over FY21-FY23E. We believe that margins will remain resilient owing to operating leverage, higher offshoring and elevated utilization. At CMP, the stock is trading at 31.5x/26.2x FY22E/23E EPS,” the brokerage has said.

InoxLeisure Ltd

InoxLeisure Ltd

The brokerage believes that because the vast majority of Indians will have been vaccinated by then, ILL is well-positioned to capitalise on strong pent-up demand. Furthermore, following normalization, ILL is projected to rapidly expand screens, which should help revenue growth (opened 15 screens so far in FY22E). Given Indian moviegoers’ enormous demand for the silver screen, we believe the multiplex business is a long-term viable strategy.

Max Healthcare Institute

“Further, management is focusing on (a) optimising capacity utilisation in existing facilities/resources and patient mix, (b) increasing ARPOB, (c) scaling up capital-light businesses (Max@Home and MaxLab), and (d) potential targets for M&A. We believe MHI deserves superior valuations because of its presence in premium markets and excellent business mix compared to peers. Maintain ‘BUY’ with a revised target price of INR 443/share,” the brokerage has said.

Disclaimer

Disclaimer

The above stock is picked from the brokerage report of Edelweiss Brokerage. Investing in equities poses a risk of financial losses. Investors must therefore exercise due caution. Greynium Information Technologies, the author, and the brokerage house are not liable for any losses caused as a result of decisions based on the article.



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Buy This Pharma Stock For 30% Return: ICICI Direct

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Q2FY22 Results according to ICICI Direct

The brokerage has reported that “Q2FY22 revenues grew 13.2% YoY to Rs 303.5 crore as the company’s unique end-to-end business model in Latin America continues to drive robust growth. EBITDA margins improved 72 bps YoY to 33.3% mainly due to better gross margins. Subsequently, EBITDA grew 15.7% YoY to Rs 101.2 crore. Net profit grew 31.8% YoY to Rs 75 crore. Delta vis-a-vis EBITDA was on account of higher other income.”

ICICI Direct has said “Caplin posted strong Q2FY22 results and is now venturing on a CAPEX journey of Rs 300-350 crore to expand existing capacities, widen its product portfolio and backward integrate the majority of the products. Caplin is extending its US sterile products into other emerging markets. We continue to remain positive about the company’s unique business model.”

Key triggers for future price performance according to the brokerage

Key triggers for future price performance according to the brokerage

  • By thriving in lesser known CA markets and cracking the US generic pharma code of injectable, the company has created its own identity with long drawn plans on the back of significant CAPEX.
  • The overall development pipeline for US remains robust, with 45+ ANDAs under development with an addressable market in US ~ US$3.5 billion.
  • Growth momentum to persist mainly due to further expansion in front end, increasing product basket, change in product mix, launching of own brands.
  • The company is putting together a domestic market sales team focused on niche hospital injectables, given the company’s expertise in this area.

What should investors do?

What should investors do?

Caplin Point Laboratories is one of India’s most rapidly expanding mid-cap pharmaceutical businesses. According to the brokerage “For LatAm markets, it outsources ~40% of products from China, ~20% from Indian vendors and in-house manufacturing of the remaining ~40%.” ICICI Direct has reported that “Caplin’s share price has grown by ~3.6x over the past five years (from ~Rs 231 in July 2016 to ~Rs 830 levels in October 2021).” Hence, the brokerage has recommended buying the stock by saying “We value Caplin at Rs 1080 i.e. 24x P/E on FY23E EPS. We maintain our BUY rating on the stock due to steady growth from legacy LatAm markets, strong US traction and significant visibility CAPEX.”

Disclaimer

Disclaimer

The above stock is picked from the brokerage report of ICICI Direct. Investing in equities poses a risk of financial losses. Investors must therefore exercise due caution. Greynium Information Technologies, the author, and the brokerage house are not liable for any losses caused as a result of decisions based on the article.



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CFBP gives opinion in 175 cases of banks, recruitment agencies, BFSI News, ET BFSI

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New Delhi, The Central Finger Print Bureau (CFPB) has furnished opinion in 175 cases of banks and recruitment agencies, according to data released by the National Crime Record Bureau (NCRB).

According to the NCRB, 175 cases were sent to the CFPB for examination and to give its opinion in cases received from nationalized banks, recruitment agencies and insurance companies and also received 8,197 convicted Finger Print slips for record and 12,540 arrested Finger Print slips for providing previous criminal history during this year.

The CFPB Delhi helped detecting 118 cases from various agencies in 2020, a National Crime Record Bureau (NCRB) data said.

According to the NCRB, the CFPB furnished opinion on 118 cases received from different agencies like Post office, police agencies like Central Reserve Police Force, recruitment, Staff Selection Commission and banks whereas in 2019-20, the bureau gave an opinion on 90 cases received from different agencies.

In the calendar year-2020, CFPB examined and furnished opinions or reports in 175 document cases received from nationalized banks, recruitment agencies and insurance companies. A total of 57 cases comprising 840 chance prints were also received from various Finger Print Bureau of States and Union Territories for verification, the NCRB said.

The Punjab bureau has the highest number of conviction slips recorded in the year 2020. Majority of the states except Punjab, Maharashtra and Madhya Pradesh have remained underperformers with figures in hundreds and a few thousands whereas the crime rate ranges to tens of thousands.

States of Andhra Pradesh and Kerala have topped the list with the highest number of chance prints developed in a calendar year. Telangana, Tamil Nadu, Uttar Pradesh and Karnataka have developed a significant number of chance prints during the year. Delhi is the only union territory to have developed a large number of chance prints.

Record slips of those convicted for Murder, Grievous Hurt, Attempt to Murder and Rape are the highest in number as compared to other IPC heads whereas the search slips recorded also demonstrate a sharp rise in crimes such as kidnapping, abduction and assault on women, the CFPB data said.

The data also revealed that states such as Maharashtra, Madhya Pradesh and Gujarat have recorded the highest number of arrestee slips. Only Panjab, Tamil Nadu, Rajasthan and UP examined more than 100 document cases.

In a murder case registered in a Police Station in Delhi on March 13, 2020, Delhi Police gave a finger print for search for the details of the suspect to the Central Finger Print Bureau to identify the culprit. The Bureau found identical right thumb impression of the accused, who was arrested in the same case. The finger print expert opinion not only helped local police in solving a Murder case but also provided them scientific and infallible evidence against the culprit.

The CFPB Delhi also helped detect cases pertaining to the examination of questioned documents of the candidates who appeared in the written examination. In most cases, the prints were of very poor quality posing difficulty in examination with an additional pressure of time from the Staff Selection Commission (SSC) to furnish the expert opinion on a priority basis. Despite all the odds, the experts showed full dedication displaying the best professional skills, and the impersonation in the cases was established.

The Bureau received 56 document cases from CISF’s Eastern Zone Headquarters at Patna, one case from Force unit at Singrauli in Madhya Pradesh regarding impersonation in recruitment. In these cases, the Admission Certificates (Commission’s Copy) bearing questioned left hand thumb finger prints were received to be compared with the specimen finger prints present on the document of the suspected candidates.

Most of the questioned prints were of extremely poor quality but the specimen prints were of decipherable quality. The questioned left hand thumb fingerprints were compared carefully and thoroughly with specimen prints of suspected candidates by experts of CFPB and established conclusive impersonation.

Similarly, nine document cases regarding alleged misappropriation of the government money were received by CFPB from Post offices, Bhiwani in Haryana wherein withdrawal vouchers of various depositors bearing fingerprints were received to be compared with the specimen fingerprints present on relevant claim forms and written statements of the depositors. Luckily, most of the questioned prints were of decipherable quality but the specimen prints were of slightly poor quality. Finally, the specimen prints of decipherable quality were selected for examination and the impersonation in the cases was established by CFPB experts.

–IANS

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Bank credit picks pace as economy revives, BFSI News, ET BFSI

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Lenders are seeing a pick-up in loan demand with demand from medium sized firms and retail borrowers as the economy is slowly coming back on track as COVID restrictions ease.

Bank credit rose 6.8 per cent in October compared to 5.1 per cent in the same period a year ago, according to the latest figures released by the Reserve Bank of India on Wednesday. Outstanding credit amounted to Rs 110.5 lakh crore as of October 22, up Rs 7 lakh crore over a year.

The pick up in loan demand is largely due to the push from government schemes even as large corporates and top rated borrowers continue to rely on capital markets and the overseas markets where they manage to raise funds at much cheaper rates. India’s Weighted Average Lending rates were at 7.20% in September, according to the RBI data. At the same time, the average rates for triple-A rated five-year corporate bonds were at 6% and at 5.29% for three-year maturity, show Bloomberg data compiled by ETIG

The latest data on sectoral flow of credit offtake that lending to Medium sized firms rose 49 per cent year-on-year to Rs 1.75 Lakh crore as of end September compared to the same period a year ago. Much of the lending is reckoned to be under the government’s Emergency Credit Line Guarantee Scheme (ECLGS) MSME sector, under which the government provides 100% Guarantee to banks in respect of eligible credit facility extended by it to its borrowers.

In addition consumer durable loans have risen by 40 per cent compared to 14.9 per cent in the same period a year ago, with borrowers taking advantage of the reduced interest rates. With the government’s renewed thrust on the social sector, lending to infrastructure more than doubled to Rs 1323 crore in September from Rs 1081 crore a year ago.

On the liability side, the pace of deposit pick-up has slowed down to 9.9 per cent compared to 10.1 per cent in the same period a year ago. But deposit growth still continues to outpace the credit growth. In absolute terms banks raised almost double the amount of deposits at Rs 14 lakh crore than the amount they lent during the period.



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SBI, Bharti Airtel seen as top Muhurat session picks for 2021, BFSI News, ET BFSI

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Mumbai, Stocks of State Bank of India as well as Bharti Airtel have topped the list of scrip that have been recommended as the top Muhurat session picks by leading brokerage houses.

According to Motilal Oswal Financial Services (MOFSL), in terms of technical and derivatives picks for Samvat 2078, the rollover of SBI stock has been intact at 93 per cent from the last 2 months which indicates longs are upright in the scrip with more than 10 per cent price increase in the October series.

“One can look for ‘Bull Call Spread‘ opportunity here by buying at Rs 510 call and selling at Rs 540 call of the November series at a net premium cost of around 10 points.”

Other top stock picks from MOFSL are Larsen & Toubro, Trent, and Bata.

For Samvat 2078, the brokerage house expects a boost coming to sectors such as travel and tourism, real estate, and ancillary industries.

“Equity markets had a historical journey in Samvat 2077, as it touched new life time highs with Nifty and Sensex surpassing 18,000 and 60,000 mark, respectively, for the first time in history.”

“The recent sprint (in Nifty) to 15,000 in Feb ’21 and 18,000 in Oct ’21, from pandemic lows of 7,600 in Mar ’20 – amid lockdowns and other health challenges – has been led by a benign global liquidity, containment of Covid-19 cases, significant pickup in the pace of vaccination, sharp recovery in corporate earnings and a market-friendly budget.”

Besides, HDFC Securities have recommended Bharti Airtel as a top pick this Muhurat trading session.

As per HDFC Securities: “Pricing competition with Reliance Jio, regulatory and technological changes and adverse currency movement are key risks faced by the company. However, strong market position in the domestic mobile and non-mobile segment, diversification across businesses, healthy operations in Africa, high financial flexibility makes Bharti Airtel attractive for investment.”

“We feel Investors can buy the stock at LTP and add on dips to Rs 623 for a target of Rs 810.”

Furthermore, the brokerage house said that last year before Diwali, India was grappling with the aftermath of the first Covid-19 wave.

“There were considerable uncertainties on how the pandemic will impact India and the globe. Stock markets recovered from a steep Covid-19 induced fall and benchmark Nifty was pushing near pre-Covid all-time highs of 12,000 levels. Last year’s Diwali picks were issued in such an uncertain environment.”

“From those turbulent times to this Diwali, the pendulum has swung the other way. Markets have rallied 50 per cent since last Diwali and many stocks have zoomed to new all-time highs.”

The brokerage house also recommended Alembic Pharma, Cadila Healthcare, Credit Access Grameen, Gujarat Gas, ICICI Bank, Infosys, and Mphasis.

The special Muhurat trading session, held every year on Diwali day, is considered to be auspicious for stock market trading.

The trading during the special session will commence from 6.15 p.m. and end at 7.15 p.m. on Thursday.

It is believed that the Muhurat trading on this day brings wealth and prosperity throughout the year.

This ritual has been observed for ages by the trading community.

The Indian equity market will be closed on Friday, November 5, to mark Diwali Balipratipada.

–IANS

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What happens to your cryptocurrency if you die?, BFSI News, ET BFSI

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If you’re merely dipping your toe in cryptocurrency, it can be hard to imagine your crypto as something worth talking to an estate attorney about. But that fun money could grow to a significant percentage of your total investments, sometimes overnight. Sorry to be a downer, but YOLO – so make a plan for your crypto in the event you pass away.

Crypto accounts aren’t like traditional investment accounts. They can be more vulnerable to security issues, and you generally can’t name a beneficiary. For example, if you store your crypto on a physical device at home and a few friends know your key – a password of sorts that grants access to a crypto wallet – one of those so-called friends could wander into your house and steal your crypto as easily as they could walk off with your great-grandmother’s diamond earrings. Or, if you shared the keys with no one, your crypto is lost forever.

It’s important to understand how to safely store your crypto and communicate your wishes with your loved ones, just like you would with any other valuable asset.

KNOW HOW YOUR CRYPTO IS STORED
You trade and store crypto in wallets, but not the leather kind. Crypto wallets can either be digital and managed on an app or website, or physical like a thumb drive. The kind you choose depends on what you intend to do with your crypto.

HOT WALLETS:
These are used for trading and purchasing crypto. The upside is they’re typically free and convenient, but the downside is they’re less secure because they’re always connected to the internet.

COLD WALLETS:
These are used to store crypto for a longer period of time. Think of it like putting your crypto in a freezer.

The hot wallet is like a checking account – with money moving in and out – while the cold wallet is more like a savings account, where you park money for a longer time. You can have both at the same time.

Whoever holds the keys – that is, who maintains custody over a password of randomly generated numbers and letters – has access to your crypto. It could be you, a third-party crypto exchange or a hybrid of both.

“Don’t keep more than you’re willing to lose on a third-party exchange as a long-term solution,” says Alex Mejias, founder and managing attorney at James River Law in Richmond, Virginia. “You don’t control the keys. They could freeze your funds or get attacked.” Mejias recommends a self-custody or hybrid option as the value of your crypto grows.

KEEP YOUR CRYPTO SECURE, YET ACCESSIBLE
A cold wallet can be a small physical storage device that’s easy to misplace. Your cold wallet requires a PIN code for access, plus you set up a recovery phrase as a backup in case you lose your key. According to Mejias, a fireproof safe at home or a safety deposit box at a bank is a must, but don’t store your cold wallet in the same place as the note containing your key, PIN and recovery phrase. If someone finds all of those items together, it’s bye-bye Bitcoin.

Above all, design a storage method that makes sense. “Don’t get so cute that you make some complicated system that you can’t remember,” Mejias says. He’s heard of people writing down their keys and cutting the paper into three pieces, hiding each piece in a separate location. “It sounds like a good idea, but it’s a horrible idea. If you lose one of those three, it’s gone forever. You’ve tripled your risk.”

MAKE A DETAILED PLAN FOR LOVED ONES
Name a beneficiary in your will and add a document to your estate plan that lists your crypto assets and any passwords, PINs, keys and instructions to find your cold wallet. If you have an account at a cryptocurrency exchange, your beneficiary can contact customer support to notify them of your death.

According to a Coinbase representative, there is a process in place to guide next of kin, including one-on-one assistance from a Coinbase analyst. Gemini requires a death certificate and power of attorney to initiate a transfer out of a deceased person’s account.

“We hope to simplify this process in the future, so we are working to add account beneficiaries functionality to our platform,” a Gemini representative said in an email.

UPDATE YOUR PLAN AND YOUR WALLET
Ensure that your assets will go to the right people by keeping your estate plan updated, especially after a life change like marriage or divorce. Provide up-to-date instructions so beneficiaries can access your assets. Cold wallets need maintenance, too, in the form of periodic firmware updates. This can help lessen the burden on your loved ones and hopefully prevent fights as they settle your estate after your death.

“Crypto has the potential to be a very explosive thing because the value can be so huge so quickly,” Mejias says. “When you think about five, 10 years from now, we’re potentially talking about a whole lot of money.”

This article provides information for educational purposes. NerdWallet does not offer advisory or brokerage services, nor does it recommend specific investments, including stocks, securities or cryptocurrencies.



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From Nigeria to India, Gen Z taps apps to invest, BFSI News, ET BFSI

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There’s a new generation of investors in town. They’re young, they get their tips on YouTube, and they’re armed with apps that make the stock markets more accessible than ever before.

US investment app Robinhood has made a splash in the West with its mission to open the markets to “everyday people”, but from Nigeria to India, Gen Z are flocking to homegrown equivalents.

“I don’t really care about my college, to be honest. It’s all market, market and market,” said Delhi student Ishan Srivastava, who started trading last December.

Srivastava uses a handful of Indian trading apps, including Zerodha and Upstox, and often gets his financial advice from YouTube. The ambitious 20-year-old hopes to build a diverse investment portfolio and then retire by 45.

In India in particular, the investment revolution has been aided by a boom in “demat” accounts — easy-to-open electronic accounts for holding financial securities, equity or debt.

But a similar app-led investment craze is also underway 8,000 kilometres (5,000 miles) away, in Nigeria.

– Banks ‘less attractive by the month’ – The country’s economic hub Lagos has long been known for its hustle and celebration of success, but the weakness of the naira currency has put extra pressure on youths to make cash as the cost of living has rocketed.

Nigerians have flocked to local apps such as Trove and Risevest which allow them to invest in US stocks, widely seen as a means of protecting wealth as the naira nightmare continues.

“I had the option of putting the money in the bank, but that is looking less attractive by the month,” said 23-year-old Dahunsi Oyedele.

“Sometimes I put my money in Risevest and get some returns in a week. Imagine getting one or two percent returns on 100,000 naira ($240) each week — that’s small, but it means a lot.”

For a few months after losing his job as a tech journalist due to the pandemic, Oyedele covered his rent by trading cryptocurrencies.

He is far from alone in turning to speculation during the Covid-19 crisis, as a combination of mass joblessness, stay-at-home orders and — for the fortunate — underused savings have encouraged people worldwide to dabble in trading for the first time.

In the US alone more than 10 million new investors entered the markets in the first half of 2021, according to JMP Securities, some of them drawn in by social media hype around “meme stocks” like GameStop.

Worldwide, the new arrivals are largely young. Robinhood’s median US customer age is 31; India’s Upstox says more than 80 percent of its users are 35 or under, a figure matched by Nigeria’s Bamboo (83 percent).

Trading apps have lowered the barriers to entry for youngsters in part by offering fractional trade.

A share in Amazon, for instance, is currently worth more than $3,000 — unaffordable for the average Gen Z or slightly older millennial. But a small fraction of that share might be within reach, particularly on an app that charges zero commission.

– Flirting with danger? – Trading apps may have been hailed as democratising access to the markets, but critics say they could also make it easier for inexperienced young investors to get into hot water.

In the US, the Securities and Exchange Commission is investigating whether apps are irresponsibly encouraging overtrading using excessive email alerts and by making investment feel like a game.

And Britain’s Financial Conduct Authority warned in March that the new cohort of young investors — who skew in the UK towards being women and from minority backgrounds — have more to lose.

Nearly two thirds of the new investors it surveyed said “a significant investment loss would have a fundamental impact on their current or future lifestyle”, the FCA found.

“This newer group of self-investors are more reliant on contemporary media (e.g. YouTube, social media) for tips and news,” the watchdog noted.

“This trend appears to be prompted by the accessibility offered by new investment apps.”

Some young investors have already been burned.

Mumbai-based product designer Ali Attarwala is giving trading a break after a bad experience with cryptocurrencies earlier this year.

“These apps make it easy to buy speculative assets like crypto, but there is still a lot of volatility in these new assets,” the 30-year-old told AFP.

Srivastava has also had ups and downs, but he sees his losses as part of the learning experience.

“When I started, I blew up almost 50 percent of the capital,” he said.

“I don’t treat them as my losses, but like education fees.”



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No HC relief for Tatas on use of their trademark as crypto coin, BFSI News, ET BFSI

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Bitcoin may be a household name today, but there are various types of cryptocurrencies that exist. Ever heard of a cryptocurrency bearing the trademarks ‘Tata coin’ or ‘$Tata’?

Tata Sons, the holding company of the Tata Group, was unsuccessful in its bid to seek a permanent injunction from the Delhi high court restraining Hakunamatata Tata Founders and others from using the trademark ‘Tata’ as part of the name under which the cryptocurrency was made available to the public or as part of their corporate or domain name.

The domain names tatabonus.com and hakunamatata.finance that enabled the purchase and sale of the ‘Tata’ cryptocurrency were set up in June and May of 2021 respectively. The reason Tata Sons could not succeed is because it could not prove to the satisfaction of the court that the foreign parties (the defendants) intended to target India as a customer base.

No HC relief for Tatas on use of their trademark as crypto coinThe defendants in this lawsuit, filed by Tata Sons with the Delhi high court, were companies based in the US and the UK with no India presence. They were located outside the sovereign borders of India and statutorily outside the reach of the Trade Marks Act, 1999 and the Code of Civil Procedure, 1908. In this backdrop, the “intention to target India as a customer base was of paramount importance” for Tata Sons to make its case.

“The mere fact that the defendants’ cryptocurrency can be purchased by customers located in India and that, as a result, the plaintiff’s brand value may be diluted, even seen cumulatively, cannot in my view justify this court interfering with the defendants’ activities, or with its brand or mark,” held Justice C Hari Shankar.

The festive season can throw all your general perceptions about media ROI out of the window…

Apparently, the defendants’ cryptocurrency could be purchased — using the QR Code and the methodology indicated on the defendants’ website — by a customer located anywhere in the world. This factor therefore, too, cannot indicate any conscious targeting of the Indian customer base by the defendants. Nor do the websites or social media accounts prove any intent to target customers covered by the high court’s jurisdiction. “If at all they target customers, they target customers across the world,” the judge observed.

Tata Sons didn’t respond to an emailed query on the issue. Sources told TOI that Tata Sons is considering to pursue this case in the UK court.

Watch BE+ with Ambi Parameswaran: In conversation with industry leaders like Jasneet Bachal, Harish Narayanan, Deepali Naair, Siddhesh Joglekar and more



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RBI set to monitor digital banking and cyber security, asks banks to be vigilant too, BFSI News, ET BFSI

Banking & Finance

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RBI will soon launch a web-based supervisory system that will enable off-site and on-site monitoring of modern functions like digital banking, cyber security, said RBI deputy governor MK Jain. At the same time banks need to be careful in complying with rules and invest in technologies to meet the supervisory challenges as they experiment with new services in the post COVID world though ultimately its governance standards, business model, risk culture, and assurance functions will decide how well it fares in the long run, he said.

“For continuous engagement with supervised entities, a web-based and an end-to-end workflow automation system has been developed ( by RBI)” said Jain in a keynote address at a summit. It has various functionalities including inspection, compliance and incident reporting for cyber security, etc. with a built-in remediation workflow, time tracking, notifications and alerts, Management Information System reports and dashboards. “This is being launched shortly”.

With the proliferation of digital banking, cyber security has become an extremely important area of supervisory concern. To address this concern, the Reserve Bank has developed a model-based framework for assessing cyber risk in banks using various risk indicators, risk incidents. ” Cyber drills are conducted based on hypothetical scenarios”.

While a lot is being done in the cyber security space, these risks are continuously evolving in the dynamic environment we operate in, and hence there should be constant vigil and continuous enhancements of IT systems, warned Jain.

Globally, fintechs are challenging banks with more convenient offerings, better reach and lower cost to customers. Besides, developments in areas artificial intelligence, robotics and chat advisory, digitalisation, Distributed Ledger Technology, quantum computing, cloud arrangements, data analytics, new ways of remote, though have their benefits but are also generating new risks, Jain warned. Also, climate change, KYC / AML, cyber security, virtual currencies as well as increasing reliance on outsourcing are some of the other major challenges that will need to be addressed, he said.

Banks need to be agile and creative to stay ahead of the digital curve, but banks will have to align their products in compliance with existing laws and regulations. ” Financial institutions would need to experiment with new technologies and tailor their products and services in alignment with business strategy and in compliance with existing laws and regulations” Jain said. “Leveraging on technology will also require enhanced financial investments, building expertise and capacities, proper resource allocation and further strengthening of the operational capabilities”.



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As India pledges net-zero emissions, banks move to form common ESG framework, BFSI News, ET BFSI

Banking & Finance

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With India agreeing to achieve net-zero emissions by 2070, the onus is on banks to promote green finance. The Indian Banks’ Association is looking to create a common framework for environmental, social and governance (ESG) issues while carrying out credit assessment and include climate risk as part of their risk management policy, according to a report.

Banks have always been the backbone of India’s economic growth, and as the country pivots to sustainable growth, the banking sector will have to accelerate green lending, SBI Chairman Dinesh Khara had said earlier.

“A formal definition of green finance in India would enable more precise tracking of finance flows to the green sectors, which in turn would help design effective policy regulations and institutional mechanisms directed towards increasing both public and private investment in green sectors,” Khara had said.

Green finance definition

India’s green finance definition could be formed through a combination of adopting international practices, developing a set of principles for green economic activities and obtaining stakeholders’ views, he suggested.

“Unless banks are able to provide adequate credit to green projects and measure risk in their portfolio, the bank’s depositors and shareholders will continue to carry ESG (environmental, social and governance) risk that can erode returns.”

To support acceleration and green financing, he said, a number of structural changes will be needed in the traditional lending approach, including evaluation and certification of the green credentials of each project and understanding of the corporate road map to achieve net zero.

RBI‘s stance

The Reserve Bank of India also feels there is a need to mainstream green finance and devise ways for incorporating environmental impact into commercial lending decisions.

Addressing climate risk in the financial sector should be the joint responsibility of stakeholders as it would affect the resilience of the financial system in the long run, RBI Deputy Governor M Rajeshwar Rao said recently.

“As the risks and opportunities and financial impact arising from climate change vary across jurisdictions, this poses unique considerations for emerging economies like India. The challenge before us is to mainstream green finance and think of ways to incorporate the environmental impact into commercial lending decisions while simultaneously balancing the needs of credit expansion, economic growth and social development,” Rao said.

He noted that the global understanding of the systemic impact of climate change on the economy and the financial system as also its resultant impact on financial stability is evolving and, accordingly, the responses of central banks and supervisors around the world have also been developing.

RBI’s efforts

The RBI has been talking about green finance for many years and has taken various steps towards it. It has pushed, on the lines of corporate social responsibility for private companies, the concept of ESG principles into financing aspects. In April, the RBI joined the Network for Greening the Financial System (NGFS) in April 2021.

The NGFS, launched in December 2017 at the Paris One Planet Summit, is a group of central banks and supervisors from across the globe to share the best practices and contribute to the development of the environment and climate risk management in the financial sector. It is an institutional yet voluntary membership, which will also help mobilise mainstream finance to support the transition toward a sustainable economy.

“The RBI expects to benefit from the membership of NGFS by learning from member central banks and regulators and contributing to the global efforts on green finance and the broader context of environmentally sustainable development,” Rao had said in the speech.

NGFS and the Basel Committee on Banking Supervision’s Task Force on Climate-related Financial Risks (TFCR). RBI being a Basel Committee member was already part of TFCR.



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