Top headlines: India buries retrospective tax, RBI to spell out policy

Business Standard brings you the top headlines on Friday

Finance Minister Nirmala Sitharaman announces the government is ending a controversial retrospective tax law. The Reserve Bank of India will announce decisions of its monetary policy committee review meeting. More on these and other top headlines for the day.

Beyond rates: Five things to watch out for in RBI's monetary policy

Most economists expect the monetary policy committee (MPC) of the Reserve Bank of India (RBI) to keep the repo rate unchanged for the seventh time straight and continue with an accommodative stance after a review meeting ending Friday. That being likely the market will want to know the central bank’s thinking about the economy in the coronavirus pandemic. Read more

Govt buries retrospective tax, introduces Bill to amend Income Tax Act

Putting an end to the contentious retrospective tax law that hit the confidence of foreign investors, including Vodafone and Cairn, for years, Finance Minister Nirmala Sitharaman on Thursday introduced a Bill in Parliament to nullify the provision in the Income Tax Act.

The government has also proposed to refund the amount paid in litigation by companies without any interest thereon. Read more

Lenders to debt-laden Vodafone Idea look at swapping debt for equity

Lenders to Vodafone Idea Ltd (Vi) are discussing a plan to swap their debt for equity which would significantly dilute the stakes of the firm’s promoters -- Vodafone PLC and the Aditya Birla group.

According to a banking source, the debt-to-equity swap plan is on the table and both promoters have agreed to dilute their shareholding. While Vodafone PLC of the UK owns 45 per cent in Vi, the Aditya Birla group holds a 27 per cent stake in the telecom firm. Read more

Explained: Behind the disconnect between stock market and economy

As the coronavirus shut down the economy in 2020, the stock market plunged. But even as the economy remained shut for months, the indices jumped back to smash all records. The divergent trend surprised many, with the issue reaching Parliament. Read more

Individual investors flex their muscle amid stock market surge

Individual investors have gained more sway in dictating market movement. The holdings of retail investors — those who invest less than Rs 2 lakh — in companies listed on the NSE stood at an all-time high of 7.18 per cent (as against 6.96 per cent in the previous quarter and 6.74 per cent in the corresponding period last year), with the value of investments totalling over Rs 16 trillion in the June quarter (Q1). Read more