The unintended consequences of India’s battle with black money

29 Jun 2016  | Saurabh Mukherjea

When the black economy of a country is equal to around a fifth of its GDP, the matter requires serious debate and unpopular methods to tackle it. Since May 2014, the NDA government has shown that it has the resolve to push through tough measures aimed at tackling India’s large but amorphous black economy. The NDA seems to realise that the battle against black money will be a prolonged affair and hence is steering clear of sellotape solutions in favour of sweeping changes.

Andrew Holland

With Brexit, volatility may become the norm in the near future

24 Jun 2016  | Andrew Holland

Brexit is a huge negative outcome and has far reaching ramifications for global markets and economies. This vote was not just about Europe but also

about the voting public being unhappy with politicians in the UK. Globally, it's been the central banks which have been dictating economic policy and these policies are still to reflect in the global economy picking up.

Why state-run banks must make room for an alternative banking system

13 Jun 2016  | Saurabh Mukherjea

Thanks to the Reserve Bank of India (RBI) governor’s intervention last year, the Indian banking system’s woes are, finally, understood well. At the end of FY16, ~17% of public sector banks' (PSBs) assets are stressed. Again, if we optimistically assume that only a third of these assets will be written off, that would imply that ~50% of the shareholders’ equity of PSBs will be written off by the end of FY18. Based on FY16-end numbers (i.e.

Palliatives for dodgy state-level GDP data

03 Jun 2016  | Saurabh Mukherjea

India’s Central Statistics Office (CSO) has been churning out some very counter-intuitive data over the past two years. For example, according to CSO data, gross domestic product growth ‘accelerated’ in FY16 versus FY15. However, this makes little sense as the majority of real economy indicators (e.g. non-oil bank credit, coal production, passenger vehicle production, government revenue expenditure) decelerated in FY16. 

Overwhelming deals, overdue diligence

21 May 2016  | Nitin Potdar

The Arbitration order directing former Ranbaxy shareholders to pay Daiichi Sankyo compensatory damages with retrospective effect has once again highlighted an obvious fact: that the process of due diligence itself calls for serious due diligence particularly in connection with any M&A transaction.  No wonder it is reduced to a perfunctory exercise (merely a financial audit in most cases) more lured by the enormity of the deal than guided by the criticality of the diligence.

Independent directors: Coping with regulation, waiting for resurrection

12 May 2016  | Nitin Potdar

There’s not an iota of doubt that the Companies Act, 2013 has sought to fortify the four walls of corporate governance by reinforcing the role of independent directors through explicit provisions. Thanks to the new act, board meetings have now attained a sense of purpose towards safeguarding the larger interests of shareholders.

The changing face of insolvency laws

06 May 2016  | Jayesh H

According to the World Bank’s Ease of Doing Business report, it takes more than four years on an average to resolve insolvency in India. A person on the ground would confirm that it takes much more time than that.

The proposed insolvency and bankruptcy law seeks to cut down the time to less than a year. Over the years, many concerns have been existing and/or raised amongst international investors on the regulatory and country risks while providing financing to and/or investing in India.

Ronnie Screwvala

Starting up is great but staying the course is key

22 Apr 2016  | Ronnie Screwvala

What does it take to be a successful entrepreneur? Ability to take risks, a great idea, passion…I believe it takes much more. But you don’t have to know all of that when you start or are a few years into your business. You need to learn, at every step, in a structured manner to make your entrepreneurial dream turn into reality. As individuals and professionals, we cannot stop learning even for a single day.

Is fintech here to stay?

07 Apr 2016  | Serguei Netessine

There are more than 5000 financial technology (fintech) startups in the world now. Many unicorns are emerging among them. There are now about 50 fintech-unicorns (tech firms valued at more than $1 billion) on the loose. Along with many established players becoming larger, new startups are launched monthly, if not weekly. This staggering growth is a reflection of the hype around fintech, where a plethora of start-ups are using technology to compete against or collaborate with established financial players.

Vaibhav Kakkar & Saurabh Tiwari

FDI norms in e-marketplace: Defining a genuine marketplace while protecting investors

05 Apr 2016  | Vaibhav Kakkar & Saurabh Tiwari

The government of India has, by Press Note 3 of 2016, finally clarified its foreign direct investment (FDI) policy on the e-commerce sector, especially on e-marketplaces, thereby ending a long period of regulatory silence and conjectures.