Business analysis: Oracle fined over bribery charges; free ration scheme extended
The Federal takes a look at the news that matters in the world of economy and business, on Thursday, September 29.
Govt not to sell forex to defend rupee
The Indian Ministry of Finance has ruled against selling dollars to defend a specific rupee level.
What it implies: The Indian rupee reached a record low of ₹81.94 due to concerns that the US Federal Reserve will maintain its aggressive monetary tightening policy. The RBI has utilised $75 billion to stabilise the changing rupee. The depletion of foreign exchange reserves, which reached a two-year low of $545.65 billion, maybe a factor in the current situation. The FM stated that it could no longer waste foreign exchange reserves to arrest the falling rupee.
Business analysis Sept 28: Govt asks PSBs to start hiring; IT firms seek legal help on moonlighting
Oracle Corporation under scanner
The tech giant was fined over $23 million by the US Securities and Exchange Commission on charges of employing bribes to secure business in India and two other nations.
What it implies: Oracle is rumoured to have paid $330,000 to a company known for paying SOE officials. In this instance, the Ministry of Railways mandated using Oracle products for a specific project. The charges are severe since a government agency is involved in the transaction. The Ministry of Railways must conduct an internal investigation to discover whether a bribe was made to one of its employees to secure the contract.
Business analysis Sept 27: All eyes on IT Policy draft; festival sales likely to zoom
Confidential pre-filing of IPO
The SEBI is anticipated to permit confidential pre-filing of IPO paperwork.
What it implies: Several corporations submit IPO filings containing information about their finances and lawsuit disclosures. In several instances, pre-filing IPO documents do not necessarily result in an initial public offering. Therefore, this action is considered progressive by regulators.
Tata firms to be restructured
Tata has decided to transfer four startups, including e-commerce company Tata Cliq to Tata Digital.
What it implies: Tata Sons has initiated a group-wide consolidation initiative. In the coming months, it intends to reduce the number of listed entities from 29 to an estimated 15 entities. In addition, the organisation has pledged $10 billion to deleverage and restructure Tata firms. This programme will improve cross-company synergies and drive cost reductions.
Free foodgrain scheme extended
The government has extended the free food grain programme until December.
What it implies: Despite opposition from the Ministry of Finance, the Centre has extended the Pradhan Mantri Garib Kalyan Anna Yojana (PMGKAY) in light of the upcoming Gujarat and Himachal Pradesh elections.