MARKETS, P6 COMPANIES, P4 INTERNATIONAL, P11 Tech glitch: Automatic norms for MD, CTO penalties eased Job portals turning into social media platforms EU plans new €35-bn loan for Ukraine NEW DELHI, SATURDAY, SEPTEMBER 21, 2024 FOLLOW US ON TWITTER & FACEBOOK. APP AVAILABLE ON APP STORE & PLAYSTORE WWW.FINANCIALEXPRESS.COM READ TO LEAD VOL. L NO. 174, 28 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: 84,544.31 ▼ 1,359.51 NIFTY: 25,790.95 ▲ 375.15 NIKKEI 225: 37,723.91 ▲ 568.58 HANG SENG: 18,258.57 ▲ 245.41 `/$: 83.58 ▲ 0.11 `/€: 93.28 ▲ 0.26 BRENT: $74.23 ▼ $0.65 GOLD: `73,715 ▲ `433 AMENDED IT RULES STRUCK DOWN EXPLAINER Curbing imports with border adjustment tax ■ PAGE 2 Continued on Page 7 Jio, Airtel lose users after 2.5 years; BSNL gains 2.9 million TARIFFHIKES IN July seem to have cost RelianceJio and BhartiAirtel,with stateowned BSNLending up as a big gainer during the month. While, for the first time in 2.5 years the largest and second largest telco lost subscribers, BSNLadded a record high 2.9 million users.Jio, Bharti and Vodafone Idea had increased their mobile service plan rates in the range of10-27% in the firstweek ofJuly. BhartiAirtel lost 1.69 million subscribers during the monthwhichwas highest among its peers. Vodafone Idea andJio lost 1.41 million and 758,000 users, respectively. Overall, the telecom subscriber base declined marginally to 1.169 billion in July from 1.170 billion inJune. Mobile subscriber base (as of July end, in million) Jio Airtel Vodafone Idea May June Market share (July end, in %) BSNL 7.6 VodaIdea 18.5 Jio 40.68 33.1 Airtel BSNL 88.5 IN FURTHER ESCALATION to the ongoing dispute, Samsung India Electronics has issued a show cause notice to its striking workers, stating that wages will be withheld until they return to work and questioning why their service should not be terminated within seven days, reports Narayanan V. ■ PAGE 5 ther“right to the truth”. He noted that it was also“not a responsibilityof the state to ensure that the citizens are entitled only to‘information’ that was not fake, false or misleading as identified byFCU”. The judge noted that the impugned rule sought to “restrict the fundamental right underArticle 19 (1) (a) (Freedom of speech and expression) byplacing restrictionswhichwere not as per reasonable restrictions provided underArticle19(2)”.“Thesamewasimpermissible through the mode of delegated legislation,”the opinion reads. 387.3 'NO WORK, NO PAY,' SAMSUNG WARNS STRIKING STAFF Supreme Court stayed the operation of the notification pending a final decision from the Bombay High Court. 215.8 HOUSEHOLD CONSUMPTION IS poised to grow faster in the second quarter of the current financial year as headline inflation eases but food price volatility remains a contingent risk, according to the August Bulletin of the Reserve Bank of India. ■ PAGE 2 ■ A day later, the 475.7 RBI: VOLATILITY IN FOOD PRICES A CONTINGENT RISK the FCU under the Press Information Bureau (PIB) on March 20 217.3 WITH BILATERAL CONSULTATIONS between India and the European Union (EU) failing to break the logjam over the latter's safeguard duties on Indian steel exports, New Delhi has proposed to “retaliate in equal measure,” and signalled to collect over $1.1 billion as duties from EU firms, reports Mukesh Jagota. The EU has extended the safeguard duties on steel imports, which were expiring in June, by anoter two years till 2026. ■ PAGE 3 ■ The Centre notified 85.6 $1.1-BN RETALIATION AGAINSTEU FOR EXTRASTEELDUTIES marked by FCU as “fake or misleading” was to be taken down by online intermediaries ITrules in April 2023 empowered the government to identify “fake news” on social media platforms through a Fact Check Unit (FCU) 476.5 389 NEWS INASETBACK to the Centre,the Bombayhigh courtFridaystruckdownas“unconstitutional” the amended IT rules that empower the government to identify “fake news” on social media platforms through a Fact Check Unit (FCU). Following a split verdict on pleas challenging the amended rules bya two-judge division bench on January31,a third judge,JusticeAtul SChandurkar,gavethedecidingopiniononthe matter and held that the rule was“ultra vires”, orbeyond the powers,of the ITAct. JusticeChandurkaragreedwiththeopinion ofJusticeGautamSPatel(nowretired),whowas part of the division bench that delivered the split verdict earlier and held that the said amendmenttotheITRules,2023throughRule 3(1)(b)(v),were violative of Articles 14 and 19 (1) (a) and 19 (1) (g) of the Constitution. Article 14 refers to equality before the law andtheprovisionsreferredtounderArticle19 pertain to the right to freedom of speech and expression,and the right to practice a profession ortrade. Justice Chandurkar held that the expressions“fake,false ormisleading”are “vague and overbroad”, and that the “test ofproportionality”isnotsatisfied.“Impugned Rule as amended be struck down.All the petitions will be placed before the division bench to be decided,” the judge held. Justice Chandurkar’s opinion will now be placed before a division bench of two judges, whichwillformallyannouncethe2:1majority against the impugned rules. According to the IT rules amended in April 2023, content marked by the FCU as “fake or misleading” will have to be taken down by online intermediaries if they wish to retain their“safe harbour” (legal immunity against third-partycontent). However,Justice Chandurkarendorsed the viewofJusticePatelthatundertherighttofreedom of speech and expression,there is no fur- ■ The content ■ The amended 218.1 IN THE SETBACK FOR CENTRE OMKAR GOKHALE Mumbai, September 20 86.3 Pictures speak louder than words. Pages 22, 23 carry images from the seventh edition of the FE CFO awards function which honoured the finest chief financial officers, selected by a distinguished external jury. Also, read excerpts of a fireside chat with the Chief Guest, Union Minister for IT, information & broadcasting & railways Ashwini Vaishnaw, and a round table discussion with financial sector leaders. HC draws red line on govt fact-check 474.6 387.7 SETTING THE BENCHMARK Source: Trai July 84,544 and counting ● FTSE REJIG, FED CUT PUSH INDICES TO FRESH HIGHS VIVEK KUMAR M Mumbai, September 20 AFTER A MUTED reaction to the Federal Reserve’s 50 basis point rate cut, bulls made a strong bounceback on Friday spurredbyoptimismthattheUSeconomy is likely to see a soft landing. In addition, inflowsfromtheFTSEsemi-annualreview adjustmentand Bankof Japanholding key rates unchanged fuelled the gains. The BSE Sensex rose 1,359.51 INSIDE points or 1.6% to MFs GETS NOD close at 84,544.31. FOR CDS This is the first time ■ PAGE 6 the 30-stock index surpassed 84,000 RTI INFO ON points. It took only six days for the BUCH REFUSED ■ PAGE 6 index to jump from 83,000 to 84,000 points. The Nifty rose 1.5% or 375.15 points to close at 25,790.95, inching closer to 26,000 points mark. With gains across sectors, investor wealth jumped `6.24 lakh crore to a record `471.71 lakh crore. Sriram Velayudhan, senior vice president - alternative research at IIFL Institutional Equities said the semi-annual review of FTSE indices contributed to the ● FPIs INFUSE `14,064 CRORE, INVESTOR WEALTH RISES `6.24 LAKH CRORE FOLLOW-UP FED RALLY Sensex Sept 19 (close) 83,184.8 Sensex milestones 84k Sept 20 83k 82k 81k 80k 10 July 18 Jul 03 market rally as inflows were expected in frontline private banks. With $1 billion (approximately `8,358 crore) inflows on account of the FTSE review adjustments, foreign portfolio investors (FPIs) infused a total of `14,064 crore on Friday, according to provisional data.On the otherhand, domestic institutional investors sold shares worth `4,427 crore. JATIN GROVER New Delhi, September 20 CEO TO ADDRESS CONCERNS VODAFONE IDEAHAS calledaconference call with investors and analysts on Mondayto provide"an update on recent developments".The callwill be addressed bythe company's CEO Akshaya Moondra and CFO Murthy GVAS along with the senior management team. The announcement comes a day after the Supreme Court dismissed curative petitionsfiledbyVodafoneIdeaandBharti Airtel seeking correction in arithmetical errors by the department of telecommunications in computing their adjusted gross revenue (AGR) dues arising out of a 2019 order. The development saw Vodafone Idea's shares closing down 19.6% at `10.4 on the BSE on Thursday. On Friday, the company's shares dropped below the `10 mark to a low of `9.79.However,laterthesharesrecovered, closing up 0.87% at `10.47. The dismissal of the curative petition by the SC is a big setback for Vodafone Idea as there's a huge gap between the DoT's calculation and self-assessment done by the company with regard to the dues. For instance, DoT has computed the total dues at `58,000 crore,whereas the company's calculation puts it at ■ The callwill be addressed plans to raise `25,000 cr through debt financing is likely to be raised at the meet Top Sensex gainers M&M ICICI Bank JSW Steel L&T Bharti Airtel Benchmark indices had recorded marginal gains on Thursday and US equities had fallen on Wednesday in their initial reaction to a 50-basis-points rate cut by the Fed. However, both the markets saw sharp bounceback a day later. Continued on Page 7 PhysicsWallah raises $210 mn at 155% higher valuation ■ On Friday, the company's shares dropped below the `10 mark to a low of `9.79 ■ According to Kotak Institutional Equities, Vi could see a shortfall of `10,400 crore over FY25-27 `21,500 crore. At `58,000 crore,Vodafone Idea'sAGR dues are the highest amongst operators, which as on date afteradding interest,has gone up to `70,320 crore. Continued on Page 7 Surveillance on laptop Grounding of engines: imports to be extended No relief for SpiceJet THE SUPREME Court on Friday upheld an order of the Delhi high court which directedlow-costairlineSpiceJettoground three aircraft engines for defaulting on payments to lessors,reports PTI.After the apex court order, a SpiceJet spokesperson said the company is currently in discussions with the aircraft lessor to reach an amicable settlement. ■ Page 4 ONLINE COACHING PLATFORM PhysicsWallah (PW) has closed a series B funding roundof$210million,whichisthelargest fund raise in the troubled edtech sectorin the post-Covid times. The fund raise valued the edtech platform at $2.8 billion, a 155% jump from its previousvaluation of $1.1 billion.This is only the second funding round for PW, founded by Alakh Pandey in 2016 as a YouTube channel providing coaching for engineering and medical entrance tests. The funding roundwas led byHornbill Capital, with participation from Lightspeed Venture Partners, both new partners for PW. Existing investors GSV and WestBridge Capital contributed about 25% of the round.As part of the funding round, PW is offering one board seat to Hornbill Capital and Lightspeed is set to be a board observer. SpeakingtoFE,PWco-founderPrateek Maheshwari said that the company is on tracktocloseFY24withrevenueof`1,975 crore, lower than earlier projections of `2,400 crore.Maheshwari said that FY25 is expected to be "the year of largest absolute profitability for the PW Group," with Q1 and Q2 alreadyprofitable. He said that the company has 40% of its previously raised capital in the bank, with a total treasury of `1,250 crore. Maheshwari described the new funding as"comfort capital,"allowing PW to mitigate unforeseen situations and seize opportunities forlarge-scale acquisitions without repeatedly approaching investors. He said that PW is already a cash-generating company, sufficiently fuelled for its growth initiatives. Continued on Page 7 FLAGSHIP STORES ALSO SEE BRISK BUSINESS iPhone 16, Day 1: Sold out as q-comm firms race to deliver first Big Basket sets the pace with 7-minute delivery in Bengaluru AYANTI BERA Bengaluru, September 20 THE LAUNCH OF Apple's iPhone 16 seriesinIndiaonFriday,notonlysaw consumers queuing outside its flagshipstoresinMumbaiandDelhi,but quickcommercefirmsalsoracingto deliver them at their fastest speed, within 10 minutes. This was the first time when the country's three q-comm firms, Blinkit, Zepto and BigBasket’s BBNow, started deliveries of Apple's latest model on the same day. The race was almost neck and neck with Blinkit running out of stock by the end of the day, and Zepto left with just a few. Comparatively, BBNow hadlittlehigherstockstilltheendof the day. The base and Plus models were the only the ones available on quick commerce apps, while the premium models - Pro and Pro Max -were made available through pre-booking. All the three platforms had launched the service in Delhi-NCR, Mumbai, and Bengaluru on Friday. Additionally, Blinkit is exclusively providing deliveries in Pune and Zepto in Hyderabad and Chennai. The companies plan to expand coverage in the coming months. After sales started at 8 am across the three platforms, Blinkit said it sold nearly 300 units in the first three hours itself, while BigBasket said it sold more than 100 units by 10am.BigBasketsaiditdeliveredan iPhone 16 to a customer in Koramangala, Bengaluru, by 8.07 am, withtheorderplacedatexactly8am. BigBasketexpectstosell2,000units of iPhone 16 within the next week, said a source close to the company. While BBNow has tied up with Tata-owned electronics retailer Croma, Blinkit has partnered with Unicorn Stores, a premium Apple reseller with 79 stores across the country. To ensure fast deliveries, Blinkit and BB Now have optimised their networks by positioning stock in micro-fulfilment centres across majorcities. Apple's latest iPhone has a starting price of `79,900 for its base model, which goes as high as `1,84,900 for its Pro Max model. Similar to previous iPhone launches,the pre-booking demand for iPhone Pro and Pro Max models outran supply, leaving some customers waiting as long as a week to get their pre-booked devices, sev- eral retailers told FE. While none of the quick commerce platforms shared the total numberofunitssoldondayone,this is the first instance of quick commerce apps getting an advantage over e-commerce rivals in terms of fasterdeliveryofthelatestiPhone.Ecommerce majors such as Amazon, who have so far monopolised the market for gadget launches, are offeringnext-dayandtwo-daydelivery of the devices while Flipkart will take as long as September 27-28 to make the deliveries. E-commerce platforms are already losing a chunk of their consumers to quick-commerce apps for categories such as groceries,staples, beauty, kitchen storage, small electronics, and more.The latest move takes theircompetition into thecategory of latest gadgets, where first availability and faster delivery dates are important to buyers. Customers queue outside an Apple store in Mumbai on Friday New Delhi 5.57 3.77 3.66 3.07 2.84 ANEES HUSSAIN Bengaluru, September 20 by the CEOAkshaya Moondra and CFO Murthy GVAS alongwith the senior management ■ The company's 1.63% 84,544.3 % gain Aug 01 10 4 6 29 Sept 12 AGR ruling setback: Vi calls investor meet THE IMPORT management system for laptops and other IT hardware products is expected to be extended by another three months beyond September 30 as more deliberations are needed to determine on whether and how this importsubstitution policyought to be taken forward, a senior official said, reports Mukesh Jagota. ■ Page 2 Sept 20 (close) Days taken for 1,000 points rally