$ Business & the State $

The National Payments Corporation of India (NPCI) has postponed the implementation of Merchant Discount Rate (MDR) on UPI transactions, originally scheduled for Thursday, to a date “immediately after Deepavali”, without specifying an exact date. The MDR was to be levied at 0.4% on UPI transactions exceeding ₹2,000 at medium and large merchant establishments. Transactions related to the capital market and those done in strategic sectors will face different MDR rates. According to government sources, the decision to delay the implementation of MDR on UPI was made in the Prime Minister’s Office following strong appeals from traders. “The UPI and Services Steering Committee today decided that, keeping in mind the festive season, Merchant Discount Rate (MDR) on select Person-to-Merchant (P2M) UPI transactions shall be implemented immediately post Deepavali at a date to be notified separately,” the NPCI said in a statement on Tuesday. It is to be noted that the Supreme Court has directed the NPCI, the Union government, and the Reserve Bank of India (RBI) to file affidavits by late October explaining the rationale for imposing MDR on specified UPI transactions. (The Hindu, 14 Oct.)

Yet another Reliance executive will be entering the Rajya Sabha soon, if things go as planned. Akhilesh Yadav-led Samajwadi Party has fielded Dhanraj Nathwani, son of another Reliance executive and four-time Parliamentarian Parimal Nathwani, as one of its two Rajya Sabha candidates from Uttar Pradesh. Polling will be held on 9th October, and based on the party’s strength in the UP Assembly, it appears well placed to secure two seats. According to E4M, Nathwani is a director in Reliance Group entities, including Reliance New Energy Limited. He was also elected President of the Gujarat Cricket Association in 2022, succeeding Union Home Minister Amit Shah.

Tata Trusts, the majority shareholder of Tata Sons Private Limited, has proposed a restructuring plan aimed at retaining the holding company’s private status and avoiding a potential listing requirement under Reserve Bank of India (RBI) regulations. The plan involves merging two Tata Group entities — Tata Electronics Systems Solutions Private Limited (TESS) and Tata Consulting Engineers (TCE) — with Tata Sons, thereby changing its regulatory classification. Tata Trusts has written to the Tata Sons board seeking approval of the proposal and initiating the process of obtaining the RBI’s no-objection certificate. The proposed reorganisation is aimed at ensuring that Tata Sons ceases to qualify as either a Non-Banking Financial Company (NBFC) or a Core Investment Company (CIC), categories that bring additional regulatory obligations, including compliance with listing norms for certain entities.

The Securities and Exchange Board of India (SEBI) has cleared Vinod Adani, elder brother of Adani Group chairman Gautam Adani, of allegations relating to the violation of minimum public shareholding (MPS) norms and Prohibition of Fraudulent and Unfair Trade Practices (PFUTP) regulations. The primary charge was Mr. Vinod Adani exercised control over investments made by two FPIs — Excel Investment and Global Opportunities Management Ltd (GMAML) — in three Adani Group firms. The allegation was this investment was in violation of SEBI regulations, which do not allow promoters to hold more than 25% in listed entities. Rejecting the charge, SEBI said the role played by Vinod Adani in relation to the two FPIs was advisory in nature and based on non-binding pacts. Separately, SEBI settled alleged MPS violations involving 18 noticees named in the order. The settlement included Adani Group chairman Gautam Adani.

It’s a constantly shifting equation between businesses and the state. In a country at war, it’s even more so. As Russia faces drones raining on private warehouses and other facilities, president Vladi­mir Putin is shift­ing the bur­den of anti-drone defences on to busi­nesses. Compan­ies that fail to pro­tect their assets from Ukrain­ian strikes face the pro­spect of state takeover, according to the FT. Late last month, the Rus­sian pres­id­ent signed an order allow­ing the intro­duc­tion of “tem­por­ary man­age­ment” at “crit­ical infra­struc­ture objects” that fail to pro­tect them­selves against drones, the paper said.


A lilliput-versus-giant battle between a Gram Sabha and the CM Office is likely in Odisha soon. Vedanta Group Chairman Anil Agarwal on Saturday sought the reopening of the Niyamgiri bauxite reserves in Odisha, nearly 13 years after mining plans were shelved following opposition from the Dongria Kondh community, a Particularly Vulnerable Tribal Group (PVTG). “The discussion [with Chief Minister Mohan Charan Majhi] today was that Niyamgiri would be reopened immediately. The tribal population there should be given employment opportunities and brought into the development process,” The Hindu reported Mr. Agarwal as saying after discussion with Odisha government at State secretariat. The Niyamgiri Hills are estimated to hold 72 million-88 million tonnes of bauxite, a key raw material for alumina and aluminium production. “The Niyamgiri bauxite reserves that were guaranteed to us should be opened to mining. We have been told that all the necessary permissions currently required will be granted immediately so that we can start mining there and provide employment to thousands of people,” he said. The proposed mining revival, however, comes against the backdrop of the 2013 Gram Sabha decisions that rejected mining in the Niyamgiri Hills. The Gram Sabhas were convened following a Supreme Court ruling that gave affected communities the authority to decide whether the proposed project would infringe upon their religious, cultural and community rights under the Forest Rights Act, 2006. The process was widely described as India’s first environmental referendum.

Private equity is a much feared force in the United States business world. The PE firms, which are basically privately held finance companies, engage in leveraged buyout of financially weak companies, known as ‘target companies’. However, in the ongoing mid-term election campaigns, the PEs have themselves become an import­ant tar­get as can­did­ates blame big investors for soar­ing hous­ing costs. The FT newspaper conducted an ana­lysis of cam­paign lan­guage in com­pet­it­ive con­gres­sional races over the past dec­ade, and found that neg­at­ive com­ments about private equity and cor­por­ate land­lords have risen sharply this year, with their invest­ments fre­quently being linked to rising prices. In pre­vi­ous elec­tion cycles, Wall Street and bank­ing were singled out for driv­ing up the cost of liv­ing. (28 Sep. 2026)


AI, especially the data centres that power it, have become a dividing line between Donald Trump and his MAGA base. Trump’s all-out defence of AI companies and open derision of their critics is frus­tra­ting a lot of Repub­lican strategists. Trump has derided those want­ing to block data centre devel­op­ments as “back­wards and poor”, called AI safety fears — which polling shows are shared by almost two-thirds of Amer­ic­ans — a “hoax” and accused advoc­ates of an AI slow­down of a “sick con­spir­acy” to help China. Trump poll­ster Tony Fab­rizio warned can­did­ates that “unqual­i­fied sup­port for build­ing more AI data centres is a los­ing pos­i­tion” and cau­tioned cam­paigns against “treat­ing local con­cerns as unin­formed”. Other strategists warned Texas Repub­lic­ans that the issue could cost the party a Sen­ate seat. Some con­ser­vat­ives believe advisers such as Sil­icon Val­ley ven­ture cap­it­al­ist and former AI tsar David Sacks have too much influ­ence on the pres­id­ent.

SEBI settles Hindenburg-related proceedings against Adani group entities

The Securities and Exchange Board of India (SEBI) has settled adjudication proceedings against five Adani group companies, for an amount of ₹1.5 crore. The proceedings relate to the allegations made by American short seller-researcher Hindenburg (now defunct), regarding undisclosed related party transactions (RPTs) as well as violation of various disclosure and corporate governance norms. Following this, the capital markets watchdog carried out an investigation into Hindenburg’s allegations of listing regulation and equity listing agreement violations. In the investigation, SEBI found that Adani Enterprises Ltd. (AEL) said RPTs between Adani Estates Private Limited, a subsidiary of AEL and Vakoder Investment Ltd., a related party of AEL, were not disclosed in the Annual Report for FY2013. In addition to this, the company had violated other laws and rules under the Listing Obligations and Disclosure Requirement (LODR) and clauses in listing agreement. The other four companies, Adani Total Gas Ltd., AWL Agri-Business Ltd., Adani Green Energy Ltd. and Adani Energy Solutions Ltd. too were found violating LODR regulations, sections under SEBI Act and NSE, BSE bye-laws. ATGL, AABL, and AGEL violated LODR sections pertaining to non-peer-review of audit reports. AESL violated sections under the NSE and BSE by-laws in addition to clauses under its listing agreement.

SEBI sent a show-cause notice to the five companies asking them to explain why an inquiry should not be held and penalties imposed for the alleged violations. Pending adjudication proceedings, the five companies proposed to settle with the regulator without admitting or denying the allegations. Based on the settlement terms recommended by SEBI’s High Powered Advisory Committee, AEL paid ₹76.05 lakh, AGEL ₹45.50 lakh and the rest of the companies paid ₹9.75 lakh each. “In view of the acceptance of the settlement terms and the receipt of settlement amount by SEBI, the instant adjudication proceedings initiated against the Applicants vide SCN dated February 15, 2024 is disposed of in terms of section 15JB of the SEBI Act and section 23JA of the SCRA read with regulation 23(1) of the Settlement Regulations on the basis of the settlement terms,” SEBI said in the settlement order. According to the SEBI website, the high powered committee on settlement orders consists of Justice (Retd.) Jai Narayan Patel, Mr. N. Venkatram (former CEO, Deloitte), Mr. S.K. Mohanty, (IRS, Retd.), and Mr. Sarit Jafa (IAAS, Retd.). (23 September)

RBI-mandated IPO could make Tata Sons a takeover target for rivals

A boardroom battle at the centre of the 150-year-old business empire of Tata is, at its core, one between the family scion Noel Tata on one side and, indirectly, the government on the other. Noel Tata, the head of Tata Trusts, which hold two-thirds stake in the group holding company Tata Sons, is fighting to keep the company private. The government and the RBI are pushing to make Tata Sons public. At the meet­ing on 16 September in Mum­bai, five board mem­bers, including Venu Srinivasan representing the Trusts, were in favour of pro­ceed­ing with the pub­lic list­ing ordered by the Reserve Bank of India, which the con­glom­er­ate ini­tially res­isted. Noel, however, opposed it. Last week­end, a leaked let­ter from the RBI to Tata Sons showed that the cent­ral bank had ordered it to com­ply with its rules “imme­di­ately”, pav­ing the way for a list­ing. Given the com­pany’s eco­nomic heft, people believe the RBI’s move had the approval of the Union gov­ern­ment. Its largest minor­ity share­holder, the indebted Shapoorji Pal­lonji group, lob­bied the gov­ern­ment and RBI for an IPO so it can sell at least part of the 18 per cent stake in Tata Sons. People close to Tata Sons believe that a list­ing could make the con­glom­er­ate, through the open float and shares of other lis­ted group com­pan­ies, a tar­get for busi­ness rivals. Mean­while, the trusts have said the pro­cess of identi­fy­ing Chandrasekaran’s suc­cessor should pro­ceed des­pite the board’s decision to retain him. This pro­cess is being delayed by reg­u­lat­ory hurdles after com­plaints by trust­ees close to Chandrasekaran. (20 September)