Top 10 biz headlines: Ola Electric turns unicorn, DHFL crisis, and more

RBI may get regulatory powers over HFCs; NHB to be in charge of supervision 

The government is considering shifting the regulation of housing finance companies (HFCs) from the National Housing Board (NHB) to the Reserve Bank of India (RBI), according to sources familiar with the development. The NHB, which has an RBI executive director as its board member, will, however, continue to supervise the HFCs, the sources added. Read more here

Cash-starved DHFL likely to get fresh line of credit from lenders 

Efforts are underway to resume and revive the lending operations of troubled housing financier Dewan Housing Finance Corporation (DHFL). In the first round of the lenders’ meeting on Monday as part of restructuring their exposure to DHFL, bankers were willing to consider the proposal of extending a fresh line of credit, sources in the know said. Read more here

Ola Electric turns unicorn with SoftBank's $250-million investment 

Ola Electric Mobility (Ola Electric), the ride-hailing firm’s electric vehicle arm, has raised $250 million from Masayoshi Son’s SoftBank, according to regulatory documents. The investment has made the company a “unicorn”, or a start-up valued at more than $1 billion, according to sources. Read more here

ED summons chief rating officers of ICRA and CARE in IL&FS probe

The Enforcement Directorate (ED), which is keeping an eye on rating agencies, has issued a summons to the chief rating officers of ICRA and CARE Ratings in connection with the money-laundering probe into the activities of Infrastructure Leasing & Financial Services (IL&FS). The officers have been asked to appear before the agency on Thursday in its Mumbai office. Read more here

Start-ups rush to join electric two-wheeler race as big boys wait 

It could have been the best of times for two-wheelers. After all, India has grabbed the top slot from China recently as the largest manufacturer of conventional internal combustion engine sp(ICE)-powered two-wheelers. But there is some worrisome news. Read more here

States' GST revenue takes bigger hit than Centre's in April-June 

July 1 was as much a cause for concern, as it was a reason to celebrate for the government. While celebrating the second anniversary of goods and services tax (GST), the government confronted the fact that growth in monthly revenue in June was the lowest achieved in the last nine months, at 4.5 per cent year on year. Read more here

MF sales may dip as regulatory changes choke distributor commissions 

The surge in commissions generated from mutual fund (MF) distribution in previous years is showings signs of waning following the changes in commission and fee structure brought about by the Securities and Exchange Board of India (Sebi). In 2018-2019, MFs’ payouts to distributors through commissions and other distribution-related expenses dropped seven per cent to Rs 7,938 crore, according to data collated by the Association of Mutual Funds in India. Read more here

Will a Centre-state panel help cut red tape in India’s power sector? 

The power ministry has proposed a “power sector council" comprising the political executive as well as the energy bureaucracy to tackle issues between the Union and state governments as part of the ministry’s 100-day action plan for the second term of the Narendra Modi government, the Livemint reported. 

Does India really need a direct tax code? 

The Union Budget may be around the corner. But the task force set up by the finance ministry on the new direct taxes code (DTC) is scheduled to submit its draft by July 31. The task force was mandated to draft a new law to bring income tax in line with global best practices, while also addressing India’s economic needs, the Economic Times reported.

Chandra’s ₹10,000-cr Tata group revival plan to be completed this year 

Tata Sons will complete investing ₹10,000 crore in group entities this year as part of Chairman N Chandrasekaran’s plan to clean up the capital structure and strengthen the companies’ balance sheets, the Hindu Businessline reported.

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