August 2023

LONDON, Aug 2 (Reuters) – Britain said on Wednesday it would start work on setting up new rules specially designed to prevent a big insurance company collapse from crashing the financial system. Regulators have already introduced rules to deal with ailing banks after global financial crisis more than a decade ago left taxpayers picking up the bill. But no such specifically tailored regime currently exists in Britain to deal with failures in the country’s insurance industry, which is the fourth largest in the world. The UK finance ministry said in a response to a public consultation on introducing a regime for insurers that the Bank of England’s ability to deal with Silicon Valley Bank’s UK subsidiary this year showed how specific resolution rules could enhance UK financial stability. The European Union is in the process of approving its own set of rules for handling insurance company failures. In Britain, insurance company collapses currently come under modified UK company insolvency arrangements, which the finance ministry said may be less effective for an industry with 2.7 trillion pounds ($3.45 trillion) in assets. “The introduction of an insurer resolution regime would also ensure the UK remains at the forefront of international standards,” the government said, adding that UK branches of foreign insurers, including those from Gibraltar, should also come under the new rules. The ministry said it had considered whether the Lloyd’s of London insurance market should also come under the new regime but decided against it given the market already has to comply with winding up regulations specifically designed for it and there was a need to avoid duplication. Under the rules for dealing with failed banks, they are required to issue a special form of debt that can be written down to replenish burnt out capital as part of a resolution process. The ministry said it would not introduce a similar requirement for insurers. Shareholders in a failing insurer would be the first to absorb losses, ahead of unsecured creditors, to fund the “bail in” of an insurer, helping to keep taxpayers off the hook. Insurers deemed “systemically important” would be required to work with regulators on plans setting out what would happen in a collapse, the ministry said. The timing of the new regime is unclear given that legislation is needed and Britain is likely to face national elections next year. Britain is also finalising separate rules to ease capital requirements for insurers to encourage investment in the economy. 2 Aug, 2023 Source : REUTERS

The Directorate General of Foreign Trade (DGFT) on Thursday restricted import of certain laptops and computers under HSN 8471 with immediate effect. In its notification, the DGFT restricted import of laptops, tablets, all-in-one personal computers and ultra small form factor computers and servers. These electronics can be imported only against a valid license meant for restricted imports. However, it clarified that it does not bar imports under Baggage rules for the said items. India’s licensing requirement for imports of laptops, tablets and personal computers will ensure security of its citizens, a source familiar with the matter told Reuters on Thursday, adding the decision was in compliance with the World Trade Organization’s requirements. The government said the import licensing requirement is exempted for purchase of a single unit of laptop, tablet, all-in-one PCs or ultra small form factor computer, including in cases an unit is bought from online sites. However, such imports will attract taxes as applicable. You Might Also Like: Further, it also exempted licensing for imports up to 20 pieces each of these items per consignment, in cases where these are imported for certain purposes including research and development, testing, benchmarking and repair. Exemption of import licensing is also provided for the said electronics which serve as an essential part of Capital Good, the notification said. A Push for Local Manufacturing “However, our ecosystem isn’t ready yet for an assembly of this magnitude. Vendors ship in close to 2 million notebooks every quarter with around 3/4th out of this imported. Also, the almost entire volume of premium notebooks are imported,” Singh said. He added that the timing isn’t the best as the PC market has been struggling since the last 2-3 quarters and that the timing isn’t the best as the PC market has been struggling since the last 2-3 quarters and this will further dampen the market sentiment. Goldman Sachs said that the move could benefit Indian EMS (Electronics Manufacturing Services) companies as brands may import semi-knocked down (SKD) units/components and outsource assembly of these devices. “As India moves away from import of electronics to domestic manufacturing, we anticipate a paradigm shift in the growth of its home-grown EMS companies. Dixon is a major beneficiary of the “Make in India” push across products, as it is India’s largest EMS for electronics, lighting, mobile phones, security systems and washing machines,” it added. Anirudh Garg, Partner & Head of Research at Invasset PMS, noted that electronics have been a significant drain on India’s forex reserves. Therefore, the move will foster a conducive environment for domestic electronics and semiconductor manufacturing. “Companies like Netweb Technologies and Dixon Technologies stand to benefit from this policy, expanding their domestic market share and aligning themselves with India’s push to become a world leader in semiconductor manufacturing,” said Garg. In April-June, electronics imports, which include laptops, tablets and personal computers, was $19.7 billion, up 6.25% year-on-year. Electronics imports range between 7% to 10% of the country’s total merchandise imports. India has been trying to push local manufacturing by giving production-linked incentives in over two dozen sectors, including electronics. It has extended the deadline for companies to apply for its $2 billion manufacturing incentive scheme to attract big-ticket investments in IT hardware manufacturing, which covers products like laptops, tablets, personal computers and servers. The incentive scheme is key to India’s ambitions to become a powerhouse in the global electronics supply chain, with the country targeting annual production worth $300 billion by 2026. Dell, Acer, Samsung, LG Electronics, Apple Inc, Lenovo and HP Inc are some of the key companies selling laptops in the Indian market and a substantial portion are imported from countries such as China. The intent seems to be “import substitution of certain goods that are imported heavily,” said Madhavi Arora, economist at Emkay Global. Laptops, tablets and personal computers compose about 1.5% of the country’s total annual imports and nearly half of those are bought from China, according to government data. India has imposed high tariffs in the past on products like mobile phones to catalyze domestic output. 3 Aug, 2023 Source : The Economic Times

The Jan Vishwas (Amendment of Provisions) Bill, 2023 was passed in Lok Sabha on 27th June 2023 and Rajya Sabha on 2nd August 2023. The Bill was first introduced in Lok Sabha on 22nd December 2022. Subsequently, it was referred to the Joint Committee of the Parliament. The Jan Vishwas (Amendment of Provisions) Bill received overwhelming support and insightful suggestions from the Members of the Committee across parties. The Joint Committee on the Jan Vishwas (Amendment of Provisions) Bill, 2022 held detailed discussions with all the 19 Ministries/Departments along with Legislative Department and Department of Legal Affairs. The Committee conducted clause-by-clause examination of the Bill through a series of 9 sittings between 09.01.2023 and 17.02.2023. The Committee finally adopted its Report in its sitting held on 13.03.2023. The Report of the Committee was laid before Rajya Sabha and Lok Sabha on 17th March 2023 and 20th March 2023 respectively. The Committee recommended a few more amendments in the Bill. Committee also made 7 general recommendations which provide advice and guidance for future decriminalization efforts. One of the recommendations include constitution of a group consisting of legal professionals, industry bodies, members of bureaucracy and regulatory authorities, etc. to examine other acts and carry out exercise similar to the Jan Vishwas (Amendment of Provisions) Bill, 2023. Working group has been constituted as per the recommendation of the Committee. Through The Jan Vishwas (Amendment of Provisions) Bill, 2023, a total of 183 provisions are being proposed to be decriminalized in 42 Central Acts administered by 19 Ministries/Departments. Decriminalization is proposed to be achieved in the following manner: – (i) Both Imprisonment and/or Fine are proposed to be removed in some provisions. (ii) Imprisonment is proposed to be removed and fine retained in few provisions. (iii) Imprisonment is proposed to be removed and Fine enhanced in few provisions. (iv) Imprisonment and Fine are proposed to be converted to Penalty in some provisions. (v) Compounding of offences is proposed to be introduced in few provisions. For effective implementation of the above, the bill proposes measures such as (a) pragmatic revision of fines and penalties commensurate to the offence committed; (b) establishment of Adjudicating Officers; (c) establishment of Appellate Authorities; and (d) Periodic increase in quantum of fine and penalties It is also ensured that degree and nature of punishment is commensurate with the severity of the offence. The benefits of the Amendment Bill are outlined as under: 1. The Amendment Bill will contribute to rationalizing criminal provisions and ensuring that citizens, businesses and the government departments operate without fear of imprisonment for minor, technical or procedural defaults. 2. The nature of penal consequence of an offence committed should be commensurate with the seriousness of the offence. This bill establishes a balance between the severity of the offence/violation committed and the gravity of the prescribed punishment. The proposed amendments ensure the adherence to law by businesses and citizens, without losing the rigor of the law. 3. The criminal consequences prescribed for technical/procedural lapses and minor defaults, clog the justice delivery system and puts adjudication of serious offences on the back burner. Some of the amendments proposed in the Bill are to introduce suitable administrative adjudication mechanisms, wherever applicable and feasible. This would go a long way in reducing undue pressure on the justice system, reduce the pendency of cases and help in a more efficient and effective justice dispensation. 4. Decriminalization of provisions which affect citizens and certain categories of government employees will help them live without the fear of imprisonment for minor violations. 5. The enactment of this legislation would be a landmark in the journey of rationalizing laws, eliminating barriers and bolstering growth of businesses. This legislation would serve as a guiding principle for future amendments in various laws. Consolidated amendments in various laws with a common objective will save time and cost for both Government and Businesses alike. Ministry/Department-wise List of 42 Acts  (Covered under The Jan Vishwas (Amendment of Provisions) Bill, 2023) 2 Aug, 2023 Source : Ministry of Commerce & Industry

Home Credit India, which is a part of global consumer finance provider Home Credit Group, has said that sentiments of the low income population in urban and semi-urban spaces are quite buoyant about the country’s economy. The aim of the study is to understand the financial habits and sentiments of the consumers in the low-income strata within the urban and semi-urban areas. Image Courtesy: Reuters. Home Credit India, which is a part of global consumer finance provider Home Credit Group, has said that sentiments of the low income population in urban and semi-urban spaces are quite buoyant about the country’s economy. The company in its annual consumer survey ‘The Indian Wallet Study 2023’ found that with the economy growing, income levels have increased for 52 per cent of the low-income consumers last year. A total 76 per cent are expecting their incomes to rise in the coming year. This has made the low income population buoyant about the country’s economy. However, despite the increase in their income the consumers are highly cautious when it comes to non-essential spending, the study said. Home Credit India, which is a part of global consumer finance provider Home Credit Group, has said that sentiments of the low income population in urban and semi-urban spaces are quite buoyant about the country’s economy. The aim of the study is to understand the financial habits and sentiments of the consumers in the low-income strata within the urban and semi-urban areas. Image Courtesy: Reuters. Home Credit India, which is a part of global consumer finance provider Home Credit Group, has said that sentiments of the low income population in urban and semi-urban spaces are quite buoyant about the country’s economy. The company in its annual consumer survey ‘The Indian Wallet Study 2023’ found that with the economy growing, income levels have increased for 52 per cent of the low-income consumers last year. A total 76 per cent are expecting their incomes to rise in the coming year. This has made the low income population buoyant about the country’s economy. However, despite the increase in their income the consumers are highly cautious when it comes to non-essential spending, the study said. Aug 9, 2023 Source : Zee Business

In a recent development, public figures like celebrities and influencers who portray themselves as “health experts or medical advisors” are now required to include “clear explanations” whenever they talk about health-related products. This change also extends to medical professionals and fitness experts who need to disclose their certifications when they endorse products or share health advice. The government’s “Additional Influencer Guidelines for Health and Wellness Celebrities, Influencers, and Virtual Influencers” have introduced these mandatory requirements. The Ministry of Consumer Affairs took this step after consulting with various parties, including health and Ayush ministries, as well as organizations like the Food Safety and Standards Authority of India (FSSAI) and Advertising Standards Council of India (ASCI). According to the new norms, celebrities and influencers portraying themselves as health experts or medical practitioners must “clearly separate their personal opinions from their professional guidance” and avoid making health claims without proper evidence. The guidelines emphasize that they need to include a statement indicating that their content is not a replacement for professional medical advice. The guidelines also suggest that during such promotions, endorsers should motivate their audience to consult health professionals before making any significant changes to their diet, exercise, or medication routines. These guidelines are now added to the existing ‘Guidelines for Prevention of Misleading Advertisements and Endorsements for Misleading Advertisements’, initially published by the Ministry of Consumer Affairs in June 2022. The disclosure or disclaimer, as stated, must be visible during endorsements, promotions, or whenever health-related statements are made. It’s important to note that these rules do not apply to general wellness and health advice that is not linked to specific products or services, and not targeted towards particular health issues or outcomes. For instance, advice like “stay hydrated by drinking water,” “engage in regular exercise,” “limit screen time,” and “use sunscreen to protect from UV rays” are exempt from these regulations. Aug 11, 2023 Source : The Economic Times

The DA hike will be effective from July 1, 2023. The central government is likely to increase the dearness allowance (DA) for its over one crore employees and pensioners by three percentage points to 45 per cent from the existing 42 per cent as per the agreed formula for the purpose. The dearness allowance for employees and pensioners is worked out on the basis of the latest Consumer Price Index for Industrial Workers (CPI-IW) brought out by the Labour Bureau every month. The dearness allowance for employees and pensioners is worked out on the basis of the latest Consumer Price Index for Industrial Workers (CPI-IW) brought out by the Labour Bureau every month. The dearness allowance for employees and pensioners is worked out on the basis of the latest Consumer Price Index for Industrial Workers (CPI-IW) brought out by the Labour Bureau every month. The Labour Bureau is a wing of the Labour Ministry. Talking to PTI, All India Railwaymen Federation General Secretary Shiva Gopal Mishra said, “The CPI-IW for June 2023 was released on July 31, 2023. We are demanding a four percentage point hike in dearness allowance. But the dearness allowance hike works out to be a little over three percentage points. The government does not factor in hiking DA beyond the decimal point. Thus DA is likely to be increased by three percentage points to 45 per cent”. He further explained that the expenditure department of the Finance Ministry will formulate a proposal to hike DA along with its revenue implication and will put up the proposal before the Union Cabinet for approval. The DA hike will be effective from July 1, 2023. Presently, over one crore central government employees and pensioners are getting a 42 per cent dearness allowance. The last revision in DA was done on March 24, 2023, and was effective from January 1, 2023. The Centre had increased DA by four percentage points to 42 per cent based on the percentage increase in the 12 monthly average of the All India Consumer Price Index for the period ending December 2022. The DA is provided to employees and pensioners to compensate them for rising prices. The cost of living increases over a period of time and is reflected through CPI-IW. The allowance is revised periodically twice a year. Aug 6, 2023 Source : Hindustan Times

ata Consumer Products (TCP), a leading name in the retail industry, uniting the diverse food and beverage interests of the Tata Group, has officially stepped into the flourishing premium segment of Cold Pressed Oils. Under its renowned brand ‘Tata Simply Better,’ the company is unveiling an array of 100 percent pure and unrefined cold-pressed oils. The surge in popularity of cold-pressed oils is attributed to their myriad health advantages and distinct flavor profiles. Tata Simply Better Cold Pressed Oils are meticulously extracted using cutting-edge Cold Pressed technology, a process that harks back to traditional oil extraction methods. This ensures the retention of vital nutrients, an aromatic richness, and an authentic flavor profile. The resultant edible oils are ideal for everyday culinary endeavors. Deepika Bhan, President of Packaged Foods- India at Tata Consumer Products, expressed, “We are excited to introduce Tata Simply Better Cold Pressed Oils, a stride towards revolutionizing how consumers approach their cooking routines. Venturing into this category, we aim to redefine norms and positively influence consumers’ choices for their well-being. Recognizing the escalating demand for nourishing alternatives, we aspire to offer an exceptional range of edible oils that not only contribute to overall health but also elevate the taste of daily meals. Tata Simply Better Cold Pressed Oils epitomize our commitment to quality and purity, making them an indispensable addition to every household. This strategic launch not only bolsters Tata Consumer Products’ stature as a prominent F&B enterprise but also enriches our portfolio by presenting consumers with reliable, nourishing options they can embrace.” Tata Simply Better Cold Pressed Oils derive from A1 Grade Ingredients, meticulously selected to guarantee premium quality and consistency. Tata Simply Better had previously ventured into the realm of plant-based offerings with the introduction of its plant-based protein products. This initiative underscores Tata Consumer Products’ dedication to providing top-tier products aligned with evolving consumer preferences. The launch of Tata Simply Better Cold Pressed Oils signifies yet another milestone for the company, reinforcing its commitment to delivering “For Better” products that cater to the dynamic requirements of consumers. The Tata Simply Better Cold Pressed Oils, crafted from 100 percent pure and unrefined components, are conveniently accessible for purchase through major online marketplaces and the official Tata Simply Better website. These oils are priced competitively, with a range spanning from Rs 325 to Rs 699, ensuring accessibility for a wide range of consumers. Aug 8, 2023 Source : IndianRetailer.com

hyderabad: A farmer has been awarded 55,000 as compensation by a consumer forum after he filed a complaint against a weedicide company, alleging that their product failed to work resulting in significant crop losses. The District Consumer Disputes Redressal Commission of Nalgonda gave the direction after examining the complaint of Jambarapu Ashok, a farmer from Maddirala in Suryapet district, against Annadatha Fertilisers & Pesticides of Maddirala, Rekha Corporation of Hyderabad, and Syngenta India. In his complaint, Ashok said he had purchased %E2%80%98Fusiflex%E2%80%99 for 850 to eliminate weeds from his one acre groundnut crop in October 2022. He alleged the weedicide did not work as expected, compelling him to hire labourers at an additional cost of 9,500 to remove the weeds manually. Consequently, the yield of groundnut decreased significantly, resulting in crop loss. The farmer claimed to have sold only 28,975 worth of groundnuts, indicating the scale of his losses. In response to the complaint, Annadatha Fertilisers & Pesticides argued that they merely sell products manufactured by Syngenta and hold no liability for their effectiveness. The wholesale dealer, Rekha Corporation, contended that the farmer was not their direct consumer. After examining the evidence, the consumer forum ruled in favour of the farmer and ordered all three parties to pay the compensation. The commission said that the 850 paid for the weedicide and the 9,500 paid to the agricultural labourers should be returned by the three parties. Additionally, the firms must pay 30,000 towards crop loss, 10,000 for mental agony, and 6,000 for expenses. Aug 4, 2023 Source : Times Of India

namakkal: The district consumer disputes redressal commission (NCDRC) on Tuesday imposed a fine of 10,000 on a man for filing a case for publicity and wasting its time. Commission president V Ramaraj directed the man to pay the fine within four months and dismissed the case. The district consumer disputes redressal commission officials said G Kesava Rao, 58, of Gurunathar Street in Tirupur district filed a case in the Coimbatore district consumer disputes redressal commission in 2018. The case was transferred to the Namakkal in July 2022 for speedy disposal. In his complaint, Kesava Rao stated that he met Tirugnananandha Swami, 57, who is the founder of an ashram named Gnanalaya Valluvar Kottam in Coimbatore, in 2006. He claimed that he had given 3.35 lakh to the ashram founder, ashram Tirupur branch head Kandasamy, 69, and secretary Ravichandran, 65, to buy land for the ashram in Vadalur in Cuddalore district. He also claimed he had given 1.02 lakh to the trio to teach him ‘kaya siddhi’ – a yogic practice. He alleged that the trio had not purchased land in Vadalur. Similarly, they didn’t teach him the yogic practice as promised. He added that they started threatening him when he approached them to get the money back. In their reply, the ashram authorities stated that Rao had not given them and the ashram any money. Rao did not produce any receipts or documents to the commission during the trial. After hearing both sides, the commission president dismissed the case and imposed a fine of 10,000 on Rao. Aug 9, 2023 Source : Times Of India

mumbai: Godrej Consumer Products (GCPL) posted a 7.5% decline in its consolidated profit after tax at Rs 319 crore for the first quarter ended June 30, 2023, as compared to Rs 345 crore in the corresponding quarter last year.Sales rose 10% to Rs 3,418 crore from Rs 3,094 crore, led by a volume growth of 10%.India business sales grew by 9% year-on-year led by volume growth of 12%.Sudhir Sitapati, Managing Director and CEO, GCPL, said:We started the year on a positive note and achieved healthy volume-led sales growth. In organic terms, our consolidated sales increased by 9% year-on-year driven by healthy volume growth of 8%. Sales in constant currency terms increased by 13%. In India, we continued to stay course on our strategy of volume-driven category development and delivered double-digit volume growth of 10%. This performance was broad based with Home Care delivering double-digit volume growth and Personal Care in mid-single digits. Our value growth was lower than volume growth as we passed on the benefits of lower input costs to our consumers. Sitapati said the company remains focused on driving volume-led growth along with healthy investments in its brands and improvement in profitability.In a notice to the stock exchanges, GCPL said the company’s Board of Directors have approved a capital expenditure of Rs 900 crore for setting up a new manufacturing site at Tamil Nadu and Madya Pradesh. Aug 7, 2023 Source : Times Of India