MARKETS, P11 BACK PAGE, P22 INTERNATIONAL, P3 THEFT OF TRADING STRATEGY WINS CANDIDATES TOURNAMENT HUSH MONEY TRIAL GETS UNDERWAY Jane Street’s $1 bn trade puts spotlight on Indian options 17-year-old Gukesh is youngest to qualify for world chess title Trump attempted to 'corrupt' the 2016 poll, prosecutors allege NEW DELHI, TUESDAY, APRIL 23, 2024 FOLLOW US ON TWITTER & FACEBOOK. APP AVAILABLE ON APP STORE & PLAYSTORE WWW.FINANCIALEXPRESS.COM READ TO LEAD VOL. L NO. 44, 26 PAGES, `12.00 (PATNA & RAIPUR `12.00) P U B L I S H E D F R O M : A H M E D A B A D , B E N G A L U R U , C H A N D I G A R H , C H E N N A I , H Y D E R A B A D , K O C H I , K O L K ATA , L U C K N O W, M U M B A I , N E W D E L H I , P U N E SENSEX: 73,648.62 ▲ 560.29 NIFTY: 22,336.40 ▲ 189.40 NIKKEI 225: 37,438.61 ▲ 370.26 HANG SENG: 16,511.69 ▲ 287.55 `/$: 83.37 ▲ 0.10 `/€: 88.70 ▲ 0.17 BRENT: $86.51 ▼ $0.78 GOLD: `72,723 ▼ `539 THE BOARD OF Paytm Payments Bank is independent and capable of addressing regulatory concerns, Paytm chief executive officer Vijay Shekhar Sharma said in a webinar on Monday. ■ PAGE 10 SWIGGY'S HEALTH INSURANCE GIVES LESS TO WORKERS FOOD-TECH UNICORN SWIGGY provides an incentive-based structure for health insurance for its delivery agents, which works to the advantage of the company, while putting the delivery personnel at a huge disadvantage in case of any leave taken in case of family emergencies etc. ■ PAGE 5 BYJU'S DISBURSES PARTIAL MARCH SALARIES TO STAFF EMBATTLED EDTECH MAJOR Byju's has paid partial salaries to its employees for the month of March, according to sources familiar with the matter, reports Anees Hussain. "On April 20, teachers and lower-grade staff received their full dues for the month of March. Meanwhile, other employees on a higher pay scale have been paid at least 50% of their March salaries," a source close to the company revealed. ■ PAGE 5 DISH TVTO NOW FOCUS ON USER GROWTH: CEO DIRECT-TO-HOME OPERATOR Dish TV is bringing its attention back to growing its subscriber base after turning debt-free in FY24, said CEO Manoj Dobhal on Monday, reports Viveat Susan Pinto. ■ PAGE 4 FE S P E C I A L S Streamlining regulation will eliminate the loopholes that might exist due to multiple laws ■ EXPLAINER, P9 50,000 jobs ■ For the 28 nm chips, the company has already got advance orders up to its capacity level ■ The first chip from the plant is expected to come out by 2026 end ■ The 14 nm chip technology can be fitted in very small components, making them more energy efficient, powerful and faster in performance duce3billionchipseveryyear.Thechipsfrom theplantwillcatertoindustrieslikehigh-performance computing, electric vehicles, defence and consumer electronics, among otherthings.The fab plantwill serve both the commercial as well as strategic sectors. Continued on Page 11 73,648.62 Close (Apr 22) SENSEX points 0.77% 73,088.33 TOP SECTORAL GAINERS Telecom Close (Apr 19) 2.53 1.93 1.65 1.53 1.17 TOP SENSEX GAINERS L& T NIFTY points 0.86% 22,336.40 Close (Apr 22) Axis Bank Bajaj Finance Ultratech Cement Wipro RELIANCE INDUSTRIES (RIL) on Monday reported a 1.8% decline in its yearon-year consolidated net profit at `18,951 crore during the January-March quarter. The figure missed Bloomberg consensus estimate of `19,727 crore, dragged down by its petrochemicals business and higher tax outgo. However, consumer businesses comprising telecom (Jio) and retail performed well and registered growth.Otherincome at `4,534 crore saw a huge 58% jump. These were offset by tax expenses,which rose sharplyto `6,577 crore on ayear-onyearbasis,as the companyhad availed tax credits in the corresponding quarter of the previous year. This is the fourth straight quarter when RIL's profit missed the Street estimates. Continued on Page 12 Adani offshore investors in disclosure rules violation, finds Sebi Revenue 11.3 Ebitda 10.8 Net profit 1.8 17.66 17.74 Jio profit rises to `5.6K cr; Arpu flat JIO PLATFORMS, the parent company of telecom operator Reliance Jio, on Monday reported a 2.5% quarter-on-quarter (q-o-q) growth in its net profit to `5,583 crore for the January-March quarter, reports Jatin Grover. Consolidated revenue from operations during the period rose 4.2% q-o-q to `28,871 crore on the back of subscriber additions, growth in data and voice consumption. ■ Page 4 2.67 2.38 2.36 2.09 2.01 DOWNSTREAM CHEMICAL INDUSTRY EXPERIENCED INCREASINGLY CHALLENGING MARKET CONDITIONS THROUGH THE YEAR Reliance Retail Q4 profit up 12% y-o-y RELIANCE RETAIL Ventures (RRVL), the holding company of Reliance Retail, on Monday reported a consolidated net profit of`2,698croreforthequarterendedMarch 31, 2024,which was up 11.7% versus the year-ago period, reports Viveat Susan Pinto.Sequentially,however,netprofitwas down14.8%asQ3wasafestivequarterand therefore strong from a topline and bottomline perspective,analysts tracking the companysaid. ■ Page 4 Vi hits a sixer as FIIs, HNIs shore up FPO `18,000 crore issue subscribed 6.36 times JAYSHREE P UPADHYAY Mumbai, April 22 % gain Consumer durables Industrials Capital goods Services 560.29 Close (Apr 19) Why brands dare to ignore food safety standards Dholera is expected to generate around Benchmark indices rose for the second consecutive session on Monday on easing tensions in West Asia and a rally in Asian and European markets. Sensex ended 0.8% or 560.29 points higher at 73,648.62 and the Nifty rose 0.9% or 189.40 points to close at 22,336.40. Shares of L&T, Axis Bank and Bajaj Finance were the top gainers on Sensex. 22,147 Strong deposits growth was the key highlight for the quarter ended March ■ INVESTOR, P9 ■ The scaling up from 28 nm to 14 nm will open up huge order book for Tata Electronics Markets mirror global rally 189.40 HDFC Bank re-rating may be gradual SET FOR 2026 OPENING RAJESH KURUP Mumbai, April 22 % chg, y-o-y 18,951 AFTER THE RECENT groundbreaking of its `91,000-crore semiconductor fabrication plant,the Tata group,along with its technologypartnerPowerchip SemiconductorManufacturing Corporation (PSMC), has started work on producing the high-end chip technology of 14 nanometer (nm). Sources said that the company has provided the same as part of its business plan to the government. The 14 nm are much more advanced chips, and will be in addition to the 28 nm nodeswhichTata Electronics and PSMC plan to manufacture at their fabrication unit, which is coming up at Dholera,Gujarat. The 14 nm chip technology can be fitted in very small components, making them more energy efficient, powerful and faster in performance.Sources said that scaling up from 28 nm to 14 nm will open up huge order book for Tata Electronics, as companies constantly look for advanced chips to improve their products such as tablets, laptops,smartphones,electric vehicles,among others.Tata Electronics did not comment on the development. For the 28 nm chips, the company has already got advance orders up to its capacity level, sources said. "At present, 28-90 nm chips have a 50% market share.But based on the trend globally, it is crucial to progress towardsadvancednodesaswell,"sourcessaid, adding that in assembly, testing, marking, and packaging (ATMP) also, the companies are developing indigenous technologies. Tata's upcoming fab in Dholerawill have a capacityof50,000waferspermonth,andpro- MUKESH AMBANI, CMD, RIL Ebitda margin (%) 19,299 OUR BANK BOARD IS INDEPENDENT, SAYS PAYTM CEO JATIN GROVER New Delhi, April 22 REPORT CARD RIL (financials), ` crore Q4FY23 Q4FY24 42,516 THE GOVERNMENT IS taking a slew of steps to rein in prices of food items, given that even the latest retail food inflation print was higher than projected by the Reserve Bank of India, reports Sandip Das. ■ PAGE 2 Petrochemicals business, higher tax outgo offsets gains in consumer businesses 38,356 STICKY INFLATION: GOVTSTEPS UPVIGIL ON FOOD PRICES Tata Electronics prepares ground for high-end chips RIL misses estimates,net profit down 1.8% to `18,951 crore 240,715 NEWS 14 NM CHIPS FROM DHOLERA UNIT SOON 216,265 IN THE VIVEK KUMAR M Mumbai, April 22 INDIA'S MARKETS REGULATOR found a dozen offshore funds invested in Adani Group companies were in violation of disclosure rules and in breach of investment limits, two people with direct knowledge of the matter said on Monday. They declined to be named as they not authorised to speak to media. The Securities and Exchange Board of India (Sebi) and the Adani Group did not immediately respond to emailed requests for comment. Reuters had first reported that Sebi has uncoveredviolation ofrulesondisclosures bylistedentitiesandlimitsontheholdings of offshore funds in August last year. The regulator was also looking into Adani Group's tieswith one of the funds to determinewhetherit could be seen acting "in concert" with the conglomerate's key shareholders, an accusation Adani has rejected in the past. The regulator earlier this year sent notices to a dozen Adani Group's offshore investors outlining the charges and asking them to explain theirpositions on the disclosure violations and breach of investment limits,the sources said. "The offshore funds were reporting their investment in Adani group companies at individual fund level. Regulator wanted the disclosure of holding at offshore fund group level,"said the first of the two sources. -- REUTERS STRONG INTEREST FROM foreign institutional investors (FIIs) and high networth individuals,along with a pick-up in retailparticipation,helpedVodafoneIdea’s `18,000crorefollow-onpublicoffer(FPO) sail through with 6.36 times subscription on the final day on Monday. The FPO received 80.12 billion bids, according to data on the exchanges.This is based on the lowerend of the price band of INSIDE `10-11 set by the Vi recharges company.At the upper for a end of the price band, long call the issue was subscribed 7 times, ■ PAGE 22 according to the merchant bankers. Of the total bids received for the FPO, around 65% came from FIIs,according to data from the exchanges. The portion set aside for qualified institutional buyers (QIBs), which includes FIIs, domestic financial institutions and mutual funds, got 19.31x bids. Non-institutional investors, which includes high net-worth individuals and corporates, got 4.54x bids. The retail investors portion,which had not garnered much interest on the first two days of the issue,pickeduppaceonMonday.Theretail portion was fully subscribed,according to merchant bankers. The company had set aside 50% of the issue for QIBs, 15% for non-institutional investors and the rest for retail investors. BUOYANT RESPONSE Equity issues above `10,000 crore Company Size (issue year) (` cr) Subscriptions (times) 20,557 2.95 Paytm (2021) 18,300 1.89 LIC (2022) Coal India (2010) 15,199 15.28 YES Bank (FPO) (2020) 15,000 0.93 GIC (2017) 11,257 1.38 SBI Cards & Payment (2020) 10,341 26.54 Reliance 10,123 Power (2008) 73.04 Source: Primedatabase.com VI FPO subscription (in times) 17.56 QIBs NIIs Retail All investors 4.13 0.92 6.36 The shareswill get listed on the bourses on April 25. These numbers exclude the `5,400 crore that the company raised through anchor investors at `11 per share. Continued on Page 12 FOREIGN MINISTER WU SAYS NEW DELHI SHOULD FOCUS ON SIGNING FTA Amid India’s chip push,Taiwan flags talent gaps,high tariffs SOUMYARENDRA BARIK Taipei (Taiwan), April 22 A“CUMBERSOME”ADMINISTRATIVE structure,lack of experienced engineers, high tariffs on electronics component imports and inadequate infrastructure — these are some of the challenges that India needs to address before chip companies from the island territory start to commit serious investments,atopTaiwanesegovernment representative said. Responding to a question on what has stopped Taiwanese chip companies from investing in India, JosephWu,Taiwan's ministerof foreign affairs, also said the country should focus on signing a longnegotiated free trade agreement (FTA) with Taiwan that would allow companies in the semiconductor SPEED BUMP ■ Taiwan is home to some of the leading names in chipmaking, including the likes of Taiwan Semiconductor Manufacturing Company (TSMC) supply chain to import components, equipment and material to India easily. “India is known to be very cumbersomeinitsadministrativestructure and it would require for the ■ Taiwanese chip companies have redflagged India's lack of adequate infrastructure needed to support the task of making semiconductors JOSEPH WU, minister of foreign affairs, Taiwan ■ Another key challenge that India needs to address, as per Wu, is trained semiconductor engineers Indian government to look at that too, to streamline all kinds of laws and regulations to help semiconductor investors coming to the country,”Wu said. “In order to get the major semi- INDIA IS KNOWN TO BE VERY CUMBERSOME IN ITS ADMINISTRATIVE STRUCTURE AND IT WOULD REQUIRE FOR THE INDIAN GOVERNMENT TO LOOK AT THAT TOO conductor production to move to India, we need to think about the whole supply chain coming together… a whole cluster, rather than just one company. If it is only one company and nobody else,that is not going to help.We need to have IC design, testing, packaging and material supply,”he said. Taiwan is home to some of the leading names in chipmaking, including the likes of Taiwan Semiconductor Manufacturing Company (TSMC) which counts Apple and Nvidia among its clients, and United Microelectronics Corporation (UMC). More than 90% of the world’s most advanced chips required for almost all electronic equipment such as smartphones, car components, data centres, fighter jets and AI technologies,are made in Taiwan. Since the escalation in US-China tensions, a number of companies, including from Taiwan, have been lookingtodiversifyfromBeijingand consider alternate destinations for theirsupplychains.India,whichhas New Delhi rolled out a $10 billion chip incentivescheme,hasfoundsomesuccess in attracting a foundry investment from Tata and PSMC, but bigger names have stayed awayso far. In conversations with Taiwanese government officials and industry executives about India’s chip ambitions,the undertone was clear: Taiwan is looking at India as a potential investment destination, especially in the electronics space, but businesses from the island nation have some reservations which have stopped them from coming to New Delhi so far. Even in PSMC’s case, while it is offering its technology to Tata for the foundry, it has a very marginal role in the financials of putting together the plant. (ThereporterwasinTaiwanatthe invitation of the East-West Center)