Money this Month
From SEBI cautions Paytm over related-party transactions with its payments bank to Nirmala Sitharaman unveils her seventh budget.Here's the Tenth in the line of indefinite "Money this Month" editions.
One place to know about them all for it is your "Money This Month", that matters. Here's the Tenth in the line of indefinite editions and intellectually stimulating ramblings about the financial world , explained in the most efficient and succinct jargon.
Being published by the Research Department of Finance and Investment Cell at Aryabhatta College, "𝐌𝐨𝐧𝐞𝐲 𝐓𝐡𝐢𝐬 𝐌𝐨𝐧𝐭𝐡", a monthly newsletter that aims to encapsulate the latest developments in the field of money, economics, finance, and geopolitics. Extensive efforts have been put in to compile the most relevant and insightful information from various sources to provide you with a comprehensive overview of the financial world.
Headlines
SEBI cautions Paytm over related-party transactions with its payments bank
US Fed raises interest rates to an all-time high in 22 years
Bain Capital to acquire 90% stake in Adani Housing and Adani Capital
HDFC to be replaced by HDFC Bank from MSCI Global indexes
SEBI issues directive to uphold standardised charge structure
Nirmala Sitharaman unveils her seventh budget
So, how was the money this month?
MONEY THIS MONTH
SEBI cautions Paytm over related-party transactions with its payments bank
SEBI issued an administrative warning to One97 Communications, Paytm's parent company, over related-party transactions with its now-defunct banking unit Paytm Payments Bank in FY22. Two transactions, amounting to ₹324 crores and ₹32 crores, were processed between the parties, allegedly without the requisite approval of shareholders or audit committee. Paytm was instructed to submit a report on corrective actions within 10 days thereafter.
US Fed raises interest rates to an all-time high in 22 years
The Federal Reserve approved a much-anticipated increase in interest rates, raising benchmark borrowing costs to the highest level in over 22 years. This marked the 11th rate increase since the Fed began its inflation fight in March 2022 and following a brief pause in June, it had again increased interest rates by a quarter-point to a range of 5.25% to 5.50%.
Bain Capital to acquire 90% stake in Adani Housing and Adani Capital
US-based investment firm Bain Capital entered into an agreement to acquire 90% of the two non-banking financial arms of the Adani group, buying out all of the Adani family's private investments in the companies. Gaurav Gupta, CEO and Managing Director, will hold the remaining 10% stake in both companies. Bain Company has also committed $120 million as capital and $50 million as an additional liquidity line in the form of non-convertible debentures.
HDFC to be replaced by HDFC Bank from MSCI Global indexes
HDFC and HDFC Bank completed their $40 billion merger, the largest in India's corporate history, on July 1. Following the mega-merger, the foreign shareholding in the combined entity was about 60%-62%, allowing the bank to be added to the MSCI index for the first time since 2013, replacing HDFC Ltd. July 13 was set as a “record date” for shareholders to swap HDFC's shares with those of the Bank.
SEBI issues directive to uphold standardised charge structure
SEBI introduces new regulations on F&O trading, aiming to standardise charges and reduce excessive profits earned by brokers. The regulator has mandated Market Infrastructure Institutions (MIIs) to discontinue slab-wise transaction charges and replace it with a uniform fee for all members, effective from October 1. MIIs have been directed to be “true to label” in the charges they levy, enhancing transparency and benefiting investors through reduced charges.
Nirmala Sitharaman unveils her seventh budget
Finance Minister Nirmala Sitharaman presented the Union Budget 2024-25 in the Parliament on July 23, outlining a roadmap with nine priorities. Key tax changes include elimination of angel tax, and adjustment of income tax slabs under the New Tax Regime. Long-term capital gains will now be uniformly taxed at 12.5% for all assets, while short-term capital gains will be taxed at 20%, as against 15% earlier. Fiscal Deficit for FY25 is estimated to be 4.9% of GDP.