Corporate News - February 2024

Mr. Anil Kumar Lahoti appointed as new chairman of TRAI

Former Railway Board Chief, Mr. Anil Kumar Lahoti has been appointed as the chairman of the Telecom Regulatory Authority of India (TRAI) for a period of three years from the date of assumption of charge of the post or until he attains the age of 65. Before working in the Railway Board, Mr. Lahoti served under various capacities in Northern, Central, North Central, Western and West Central Railways. He has served in the Indian Railways for 36 years. A 1984 batch Indian Railway Service of Engineer (IRSE), he holds a degree in Civil Engineering from Madhya Pradesh's Madhav Institute of Technology and Master of Engineering in Structures from University of Roorkee, now IIT Roorkee. He later underwent training in Strategic Management and Leadership programmes at USA's Carnegie Mellon University.

Mahindra Group appoints Mr. Amarjyoti Barua as Group Chief Financial Officer, and Mr. Manoj Bhat as MD and CEO of Mahindra Holidays Resorts India

Mahindra and Mahindra Ltd. (M&M) announced a fresh reshuffle of its leadership team and appointed Mr. Amarjyoti Barua as the Group Chief Financial Officer of M&M's Finance Organisation. The appointment of Mr. Barua came after the resignation of Mr. Manoj Bhat who is set to take the role of MD & CEO of Mahindra Holidays Resorts India Ltd. (MHRIL). Both Mr. Barua and Mr. Bhat are set to take charge with effect from May 17, 2024.

IRCTC announces appointment of Mr. Sanjay Kumar Jain as CMD

Railway PSU, IRCTC announced the appointment of Mr. Sanjay Kumar Jain as its Chairman and Managing Director with immediate effect. Prior to this role, Mr. Jain was the Principal Chief Commercial Manager (PCCM) of Northern Railway, Indian Railway Catering and Tourism Corporation Ltd. (IRCTC). He is an Indian Railway Traffic Services (IRTS) Officer of 1990 batch. A qualified Chartered Accountant (CA), Mr. Jain has been at leadership roles in policy making, commercial ventures and developmental ventures of the Government of India and PSUs.

Tata Digital announces appointment of Mr. Naveen Tahilyani as new CEO

Tata Digital, the superapp from Tata Sons, announced the appointment of Naveen Tahilyani, as Chief Executive Officer (CEO) and Managing Director (MD). Mr. Tahilyani replaces Mr. Pratik Pal, who was at the helm since the Tata group announced its foray into digital commerce and the creation of the Tata Neu supperapp. Mr. Tahilyani is currently the CEO and MD of Tata AIA Life Insurance Company. He comes with a strong understanding of the Indian consumer landscape and extensive experience in the financial services sector. He has a proven track record of driving innovation, fostering collaboration, and achieving operational excellence.

Financial service providers must have regulatory nod for liquidation: IBBI

The Insolvency and Bankruptcy Board of India (IBBI) issued a circular stating that Financial Service Providers (FSPs) must have regulatory approval before commencing a voluntary liquidation process. The circular is part of the Insolvency and Liquidation Proceedings of Financial Service Providers and Application to Adjudicating Authority Rules, 2019. The circular states that liquidators need to ensure that FSPs have the necessary permission from their respective regulator before starting a voluntary liquidation process. The circular states that FSPs who have been notified by the Central Government, after consulting financial regulators, can undergo a voluntary liquidation. The liquidation process involves converting a company's assets into cash and using those funds to repay the company's debts as much as possible. The result of liquidation is the company being shut down.

IBBI expert committee proposes framework for mediation under IBC

An expert committee set up by the Insolvency and Bankruptcy Board of India (IBBI) submitted its report on the framework and processes for mediation under the Insolvency & Bankruptcy Code. The committee recommended a framework for introducing mediation as a complementary mechanism for resolving disputes. It suggested that the mediation framework under IBC would best operate as a self contained blueprint within the Code, with independent infrastructure to ensure that the objectives of the Code are met without compromising or diluting the basic structure of the Code in terms of timelines and public rights. Taking a cautious approach, the committee endeavours to balance the fundamental objectives of the Code for 'time bound reorganisation' and 'maximisation of value', with autonomy to parties to voluntarily opt for the 'out of court' mediation process to enhance the efficiency of the insolvency resolution process. Further, the committee proposed a phased introduction of voluntary mediation as a dispute resolution mechanism under the Code while maintaining the sanctity of the timelines for various existing insolvency resolution processes. The committee also noted that the core of the framework is its independence and flexibility to provide room for quick incorporation of implementation learning.

Finance Minister urges SPMCIL transformation amid digital transition

Union Finance Minister Smt. Nirmala Sitharaman asked the state owned Security Printing & Minting Corporation of India (SPMCIL) to find ways to transform itself at a time when its core business of printing currencies is depleting because of India's transition to a digital economy. Addressing the foundation day of SPMCIL. At a time when minting coins in a digital era has become slightly jaded, the corporation has kept itself relevant by coming out with commemorative coins which can be gifted as souvenirs.

Kotak Mahindra Bank implements RBI's first phase of Digital Rupee

Kotak Mahindra Bank (KMBL) announced the implementation of the first phase of the Reserve Bank of India's (RBI) Digital Rupee (e ). The first phase of the pilot project is accessible to a Closed User Group (CUG) of customers, which includes both retail customers and businesses. The e is a legal tender equivalent to bank notes and coins but issued in a digital form by the RBI. It is an electronic version of cash primarily meant for retail transactions. The Rs.-R will offer features of physical cash like trust, safety and settlement finality. As in the case of cash, it will not earn any interest and can be converted to other forms of money, like deposits with banks.

Centre may reduce import duty for Tesla in lieu of an EV factory in India

The central government is currently finalising a policy to extend concessional impor t duties on EVs, which can significantly help Tesla's entry in India. Months after expressing interest in entering the Indian market, billionaire Mr. Elon Musk-led Tesla may be making its way to the country as the central government is in the process to finalise its policy to extend concessional import duty. Tesla is now on the verge of entering the Indian market as the government is planning to extend its concessional import duty on electric cars exceeding 30 lakh ($36,000) for 2-3 years. This move will help India boost employment and cut down the prices of EVs in the country.

To break glass ceiling, Tata Steel invites applications from transgenders

Tata Steel has taken a significant step towards promoting inclusivity by inviting applications from transgender candidates for various positions across multiple locations. As a leading global steel company, Tata Steel recognises the importance of breaking the glass ceiling and mainstreaming transgender people in society. In February 2022, Tata steel had expanded its transgender employee base by on boarding 12 crane operator trainees from the LGBTQ+ community at its Kalinganagar plant in Odisha. Prior to this, Tata Steel's captive mining division in Jharkhand's West Bokaro had onboarded 14 transgender people as Heavy Earth Moving Machinery (HEMM) operators at its mines. This intervention has not only broached the unorthodox subject of hiring transgender in the blue collar workforce, but also provided a map for other organisations to navigate the difficult path to being inclusive in the truest sense.

Wipro acquires Aggne for $66 million to boost capabilities in the insurance sector

Bengaluru based IT major Wipro has acquired Aggne, a consulting and managed services company serving the insurance and insurtech industries, for $66 million. The purchase consideration is subject to customary closing adjustments as per the terms of the purchase agreement. Wipro is currently acquiring 60 per cent, with an option to purchase the remaining stake over a period of time. With this investment, Wipro becomes a majority shareholder in Aggne, which brings to Wipro a unique set of capabilities and intellectual property (IP) in the Property & Casualty (P&C) insurance space. The combined capabilities of Wipro and Aggne will help deliver enhanced value, faster speed to market, and differentiated services to clients in the P&C sector.

Defence ministry signs Rs. 2,269 Cr deal with Bharat Electronics Limited (BEL)

The Defense ministry signed a Rs. 2,269 crore deal with state run Bharat Electronics Limited (BEL) for the procurement of 11 Shakti warfare systems, along with associated equipment. The electronic warfare system will be installed on board the frontline warships of the Indian Navy. The project will generate employment of two and half lakh man days over a period of four years with the participation of more than 155 industry partners, including MSMEs, thus furthering the vision of Atmanirbhar Bharat.