BRICS Nations and De-dollarisation: Unpacking Trump’s Tariff Threat

The dynamics of global trade have long been influenced by the US dollar’s status as the world’s reserve currency. However, the emerging economic coalition of BRICS (Brazil, Russia, India, China, and South Africa) is challenging this dominance. In a recent development, US President Donald Trump raised concerns about de-dollarisation, suggesting a potential 100% tariff on BRICS nations. 

Understanding De-dollarisation

De-dollarisation refers to the process by which countries reduce their reliance on the US dollar in international trade and financial transactions. BRICS nations have been at the forefront of this movement, aiming to establish alternative trade mechanisms and strengthen their collective economic independence. The de-dollarisation agenda is driven by various factors, including:

  • Reducing dependence on a single currency.
  • Mitigating risks from US monetary policy shifts.
  • Promoting regional currencies for trade and investment.

This shift could potentially alter the global economic order, challenging the US’s economic influence.

Trump’s Warning: A 100% Tariff Threat

In his statement, Donald Trump alluded to imposing a 100% tariff on BRICS nations if they pursue de-dollarisation. The rationale behind such a drastic measure seems rooted in:

  • Protecting the dollar’s hegemony in global trade.
  • Safeguarding US economic interests in a multipolar economic landscape.

While such a tariff could strengthen the dollar’s position in the short term, it may also escalate trade tensions and lead to retaliatory measures from BRICS nations.

Potential Consequences of Tariffs

Imposing a 100% tariff on BRICS nations could have far-reaching consequences for both the US and global economies:

  1. Increased Trade Costs
    Tariffs of this magnitude would significantly raise the cost of goods imported from BRICS nations, impacting American businesses and consumers.
  2. Trade Realignment
    BRICS nations might seek alternative markets or enhance intra-BRICS trade to mitigate the impact of US tariffs.
  3. Strengthening the De-dollarisation Agenda
    Tariffs could inadvertently accelerate efforts by BRICS to establish a parallel global financial system, reducing reliance on the dollar.
  4. Economic Uncertainty
    Prolonged trade tensions could lead to market volatility, disrupting global supply chains and economic stability.

The Larger Picture: De-dollarisation and Global Trade

BRICS nations are actively exploring innovative ways to reduce dollar dependence, such as:

  • Establishing a common currency for intra-group trade.
  • Strengthening bilateral trade agreements in local currencies.
  • Developing alternative payment systems independent of US-led financial infrastructure.

These efforts, while still in nascent stages, pose a long-term challenge to the dollar’s dominance in global trade.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions. 

Investments in the securities market are subject to market risks, read all the related documents carefully before investing.

Landmark Cars Expand Reach with MG Select Dealerships in Ahmedabad and Kolkata

Landmark Cars Limited, a prominent player in India’s premium automotive retail space, has announced an exciting development in its collaboration with JSW MG Motor India Pvt. Ltd. (MGI). The company has received a letter of intent to establish MG Select dealerships in Ahmedabad and Kolkata. This strategic move not only deepens Landmark’s ties with MGI but also sets the stage for the launch of MG Select’s accessible luxury segment in India.

Landmark Cars’ share price was up by 0.82% as of 9:45 a.m. on January 21, 2025.

What Is MG Select?

MG Select is a dedicated brand channel from MGI, focusing on the emerging accessible luxury market in India. With the initial launch of two innovative models—the MG Cyberster and MG M9 EV—MG Select is set to redefine luxury vehicle accessibility in the country. Sales are expected to commence by May 2025, aiming to cater to evolving customer preferences.

A Strategic Step for Landmark Cars

Landmark Cars’ new dealerships will be operated by its wholly-owned subsidiary, M/s Aeromark Cars Private Limited. This initiative highlights Landmark’s dual strategy of horizontal and vertical expansion. While horizontal growth strengthens relationships with existing original equipment manufacturers (OEMs), vertical expansion deepens the company’s geographic presence to achieve operational efficiency.

The Ahmedabad dealership solidifies Landmark’s leadership in the city, while the Kolkata dealership expands its portfolio to include MG Select products alongside its existing offerings of Mercedes-Benz, Mahindra & Mahindra, and Kia.

Comments from the Chairman

Mr. Sanjay Thakker, Promoter and Chairman of Landmark Cars Limited, expressed his optimism about the development. He remarked: “I am very excited about the launch of the upcoming MG Select products. This new range has the potential to broaden the ‘accessible luxury’ market in India, and Landmark is well-positioned to capitalise on this growth. This initiative aligns perfectly with Landmark’s strategy to grow with existing, profitable brands and strengthen our presence in our current geographies.”

About Landmark Cars

Landmark Cars Limited is renowned for its comprehensive automotive retail business, including sales of new vehicles, after-sales service, pre-owned vehicle sales, and third-party financial product facilitation. The company’s portfolio boasts partnerships with leading automotive brands such as Mercedes-Benz, Honda, Jeep, Volkswagen, BYD, Renault, Mahindra & Mahindra, Kia, and MG Motors. Additionally, it caters to the commercial vehicle sector with Ashok Leyland.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions. 

Investments in the securities market are subject to market risks, read all the related documents carefully before investing.

Venus Remedies Share Price Jumps Over 10%; Here’s Why

Venus Remedies’ share price jumped over 10% as of 9:27 AM on January 21, 2025, reaching an intraday high of ₹332.40 on the NSE. Here’s why the stock is in the spotlight.

Key Update Driving the Surge

Venus Remedies Limited witnessed a sharp rise in its share price by over 10% following the announcement of a significant achievement. The company has successfully renewed its European Good Manufacturing Practices (GMP) certification, further solidifying its foothold in the European market. This milestone reaffirms the company’s dedication to delivering top-quality pharmaceutical solutions globally.

What Does the Certification Cover?

Granted by Infarmed, the National Authority of Medicines and Health Products in Portugal, this renewal certifies Venus Remedies’ facility for manufacturing:

  • Cephalosporin formulations
  • Carbapenem products
  • Oncology liquid and lyophilised injectables

This certification ensures compliance with the strict manufacturing standards of the European Union, enhancing trust in the company’s product quality.

Impact on European Market Presence

Venus Remedies has been a consistent player in the European pharmaceutical landscape since its initial EU GMP certification in 2007. Over the last 15 years, the company has maintained a robust presence as a leading exporter of meropenem outside India, with multiple marketing authorisations across the region.

Share Market Reaction

The renewal of this certification signifies the company’s ability to sustain high standards. The market reacted positively, driving Venus Remedies’ share price upward, as it positions itself as a trusted partner for healthcare providers and patients across Europe.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions. 

Investments in the securities market are subject to market risks, read all the related documents carefully before investing.

63 Moons Technologies Announces Strategic Business Divestments

63 Moons Technologies Limited, a prominent player in financial technologies, recently announced the strategic divestment of three of its business undertakings: the Straight Through Processing (STP-Gate) messaging solution, the Open Dealer Integrated Network (ODIN), and the MATCH back-office services. These sales, executed through a slump sale basis to Synapsewave Innovations Private Limited, signify a strategic shift in the company’s operational focus.

The 63 Moons Technologies share price reached an intraday high of ₹877.30 on the NSE at 9:21 AM on January 21, 2025.

Details of the Divested Units

  1. STP-Gate Business:
    The STP-Gate messaging solution, designed to enable seamless post-trade settlements for brokers and fund houses, was sold for ₹1 crore in cash. In FY 2023-24, the unit contributed ₹144.91 lakhs to the company’s consolidated revenue, equating to 0.31%, while its net worth was recorded as nil​.
  2. ODIN Business:
    The ODIN platform, a robust order management system catering to dealers and brokers, was sold following regulatory and shareholder approvals. This sale was concluded post-compliance with an MPID Court order, further cementing Synapsewave’s acquisition​.
  3. MATCH and Other Services:
    MATCH, offering comprehensive back-office solutions for member accounting and trade confirmations, alongside related components, also transitioned to Synapsewave’s ownership. The transaction underscores Synapsewave’s ambition to expand its technological offerings​.

Transaction Highlights

Slump Sale Basis:
All three units were sold on an “as-is-where-is” basis, ensuring a smooth transfer of operations without debt or cash implications.

  • Non-Promoter Buyer:
    Synapsewave Innovations does not belong to 63 Moons’ promoter group, confirming the arm’s-length nature of the transaction​​.
  • Regulatory Compliance:
    The deals adhered to the SEBI Listing Obligations and Disclosure Requirements Regulations, 2015, ensuring transparency and regulatory approval at every stage.

Strategic Implications for 63 Moons

These divestments represent a recalibration of 63 Moons’ business strategy, potentially allowing the company to focus on its core competencies or explore new growth opportunities. While these units contributed marginally to the overall revenue, their sale aligns with long-term value creation.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions. 

Investments in the securities market are subject to market risks, read all the related documents carefully before investing.

Entity Locker: Digital Infrastructure for Business Document Management

The Ministry of Electronics and Information Technology (MeitY) has unveiled a groundbreaking digital platform called Entity Locker. Designed to enhance business efficiency, this innovative tool aims to simplify the management, storage, and verification of organisational documents.

A Secure Cloud Solution for Businesses

Entity Locker is a cloud-based platform catering to a diverse range of entities, including corporations, MSMEs, startups, trusts, and societies. By providing secure storage and seamless sharing options, it ensures efficient management of sensitive documents. This initiative aligns with the Union Budget 2024-25’s focus on digital governance and ease of doing business.

Key features of Entity Locker include:

  • Real-time document access via government database integration.
  • Consent-based secure sharing for sensitive information.
  • Role-based access management, authenticated through Aadhaar.
  • 10 GB encrypted cloud storage for reliable data security.
  • Legally valid digital signatures for document authentication.

These features collectively minimise administrative burdens, reduce processing times, and enhance operational efficiency.

Benefits for Businesses

Entity Locker brings numerous advantages to organisations by addressing common pain points in document management:

  • Streamlined sharing and access: Simplifies collaboration with stakeholders.
  • Regulatory compliance made easy: Supports adherence to reporting requirements.
  • Improved accountability: Tracks all document-related activities.
  • Reduced overhead: Consolidates document storage and security.
  • Faster processing: Mitigates delays caused by operational bottlenecks.

Seamless Integration with Government Platforms

Entity Locker integrates with key government systems, such as:

  • Ministry of Corporate Affairs (MCA)
  • Goods and Services Tax Network (GSTN)
  • Directorate General of Foreign Trade (DGFT)

This integration simplifies processes like vendor verification, MSME loan applications, FSSAI compliance, and corporate annual filings, ensuring smooth compliance with regulatory requirements.

Use Cases of Entity Locker

The platform is designed to cater to multiple business scenarios, such as:

  • Vendor verification during procurement.
  • Expedited loan processing for MSMEs.
  • Compliance documentation for FSSAI.
  • GSTN and MCA registration during tendering.
  • Simplified corporate filings.

Beyond Technology: A Strategic Initiative

Entity Locker represents more than a technological advancement. It symbolises a strategic effort to reduce administrative friction, foster productivity, and unlock new opportunities for businesses. Senior officials from MeitY emphasise its role in creating a digitally empowered and efficient business environment.

As a part of the Digital India Programme, the platform demonstrates the power of technology in addressing complex administrative challenges, promoting economic growth, and enabling seamless operations.

Future Developments

In its phased implementation, Entity Locker will integrate with more government platforms, providing businesses with broader access and functionality. Stakeholders are encouraged to adopt this innovative solution to boost efficiency and compliance

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions. 

Investments in the securities market are subject to market risks, read all the related documents carefully before investing.

Hatsun Agro Acquires Milk Mantra Dairy In ₹233 Crore Deal

Hatsun Agro Product Ltd has announced the acquisition of a 100% stake in Milk Mantra Dairy Pvt Ltd. This strategic move, approved by the board on January 20, strengthens Hatsun Agro’s foothold in the eastern Indian dairy market.

Acquisition Details

The acquisition involves a total purchase consideration of ₹233 crore. Milk Mantra Dairy’s paid-up share capital, as of January 20, stands at ₹4.77 crore, including 31.69 lakh equity shares and 16.06 lakh compulsorily convertible preference shares. Hatsun Agro has signed share purchase agreements with existing promoters and shareholders to make Milk Mantra Dairy a wholly-owned subsidiary.

Strategic Expansion

Milk Mantra Dairy, founded in 1956, markets and sells dairy products under the ‘Milky Moo’ brand, primarily in Odisha. The company has recorded consistent turnover growth, reporting ₹276.42 crore in FY24, ₹272.91 crore in FY23, and ₹262.1 crore in FY22. The acquisition aligns with Hatsun Agro’s plans to expand into Odisha and eastern India, while also leveraging potential markets like North Andhra Pradesh and West Bengal. The addition of Milky Moo complements Hatsun Agro’s portfolio of brands, including Arun, IBACO, Hatsun, and Arokya.

Hatsun Agro Product Share Performance

As of January 21, 2025, 9:20 AM, the Hatsun Agro Product is trading at ₹970.95 per share, a surge of 1.69% from its previous day’s closing price. Over the last month, the stock has seen a decline of 6.54%, and over the last year, it has declined by 12.26%. 

Conclusion

The acquisition of Milk Mantra Dairy marks a significant step in Hatsun Agro Product’s strategy to enter new geographical markets and strengthen its presence in the dairy sector in eastern India.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions. 

Investments in the securities market are subject to market risks, read all the related documents carefully before investing.

SEBI Proposes Changes to NPOs and Social Stock Exchange

The Securities and Exchange Board of India (SEBI) has put forward proposals to broaden the definition of Not-for-Profit Organizations (NPOs) and expand eligible activities under the Social Stock Exchange (SSE). These recommendations, outlined in a consultation paper issued on January 20, is to address operational challenges and make the framework more inclusive.

Broader Activities for Social Enterprises

The list of eligible activities has been expanded to include vocational skills training, welfare for disadvantaged groups like children, women, and the elderly, as well as environmental stewardship, and the promotion of arts, culture, and heritage.

Additionally, the welfare of domestic and vulnerable animals, as well as the preservation of heritage in remote locations, has been included. Changes also shift the focus in sports from training to promotion and add research in science and medicine funded by public entities.

New Legal Structures Recognised as NPOs

SEBI has recommended adding more legal structures to qualify as NPOs, such as trusts registered under the Indian Registration Act, 1908, charitable societies under state laws, and companies registered under Section 25 of the Companies Act, 1956. These changes are intended to allow a wider range of organizations to participate in the SSE.

Addressing Cost and Registration Concerns

To tackle cost-related challenges faced by NPOs, SEBI proposes allowing them to register with the SSE for up to two years without raising funds. This acknowledges that many NPOs currently fail to transition to listing due to costs linked to annual reporting and social impact assessments.

Governance and Reporting 

The proposals suggest separating financial and non-financial annual disclosures, including governance and tax details in reports, and requiring separate impact reports for listed and non-listed projects. Social Impact Assessment Firms may also be replaced with Social Impact Assessment Organizations employing experienced assessors.

Current Status

As of December 31, 2024, 111 NPOs are registered with the SSE, and ₹22 crore has been raised by 10 organisations through Zero Coupon Zero Principal instruments. SEBI has invited feedback on the proposals until February 10, 2025.

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Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions. 

Investments in the securities market are subject to market risks, read all the related documents carefully before investing.

SC Orders ₹1,600 Crore Refund to Vodafone Idea, Rejects Tax Appeal

The Supreme Court, on January 20, 2025, upheld a Bombay High Court order directing the Income Tax Department to refund ₹1,600 crore to Vodafone Idea Ltd. This includes ₹1,128 crore in excess tax payments for the assessment year (AY) 2016-17, along with ₹500 crore as interest. 

The apex court dismissed the tax department’s special leave petition (SLP) citing an unexplained delay of 295 days in filing the appeal. The bench of Justices JB Pardiwala and R Mahadevan termed the delay unjustified.

Rules Against Time-Barred Tax Order

The Bombay High Court’s November 2023 judgment deemed the assessment order against Vodafone Idea unsustainable and time-barred. The court noted that the assessing officer failed to issue the final order within the prescribed 30 days following the dispute resolution panel’s directions, instead delaying it by two years. This violation of the Income Tax Act’s timeline was criticized.

Refund Linked to AY 2016-17 Scrutiny

The dispute originated from Vodafone Idea’s claim for a ₹1,128 crore refund for AY 2016-17. The tax department rejected the claim, revising the company’s taxable income and alleging discrepancies in arm’s length pricing. 

The telecom operator challenged this in the Bombay High Court, which ruled in its favour, ordering the refund with interest.

Impact of the Verdict

The court observed that the officer’s dereliction of duty affected not only the exchequer but also public trust. In its decision, the High Court emphasised that adhering to statutory timelines is crucial. 

Market Response

Following the announcement, Vodafone Idea’s shares, which recently saw a 25.84% rise over the past month, are currently trading at ₹9.39 on the BSE as of 11:20 AM on January 21, showing a 5.53% decline today. This follows a 9.1% rise in yesterday’s trading session, despite a 40.84% drop over the past six months.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions. 

Investments in the securities market are subject to market risks, read all the related documents carefully before investing.

Neeraj Parakh Proposed as Reliance Power’s CEO and Executive Director

Reliance Power Limited has announced the appointment of Neeraj Parakh as its Executive Director and Chief Executive Officer (CEO), effective January 20, 2025. His 3-year tenure is subject to the approval of the company’s members, according to an official filing.

Board Approval

The decision to appoint Parakh was taken at a board meeting held at the company’s Navi Mumbai headquarters. The filing confirmed that Parakh is not related to any of the directors, in compliance with regulatory norms.

Career at Reliance

Parakh has been with the Reliance Group since 2004, serving in roles across project planning, operations, procurement, and compliance. Over two decades, he has contributed to the development of power projects with a cumulative capacity of over 10 GW, spanning both thermal and renewable energy sectors.

Projects

Parakh’s work has been integral to major power projects such as Rosa, Sasan, and Yamuna Nagar, with a combined investment of ₹50,000 crore. Reports suggest that his focus on project execution and management has been central to the company, particularly in areas such as vendor localization and reducing dependency on imports. He has helped streamline procurement and optimize resources across the company’s projects.

Shareholding Reclassification 

Earlier this month, Reliance Power and Reliance Infrastructure disclosed plans to reclassify Anil Ambani and Jai Anmol Ambani from “promoter” to “public shareholder” status. This, approved by the boards of both companies, adheres to SEBI’s Regulation 31A requirements.

Market Update

Shares of Reliance Power shares are currently trading at ₹40.21, down by 1.40% as of 10:37 AM today, on January 21, showing a 48.41% gain over the past six months and a 40.88% rise over the past year. Though it remains down 83.26% from its all-time high.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions. 

Investments in the securities market are subject to market risks, read all the related documents carefully before investing.

Indian IT Professionals Grapple with H-1B Uncertainty under Trump’s Presidency

Donald Trump’s return to the White House has sparked concerns among H-1B visa holders and Indian IT professionals. Known for his previous policies favouring American workers, Trump’s leadership raises the prospect of stricter regulations on foreign talent, a scenario that could significantly impact the aspirations of Indian workers in specialised fields like IT and artificial intelligence.

Evolving Reliance on the H-1B Visa

The H-1B visa is an important pathway for foreign professionals to work in the United States, particularly in industries that require advanced expertise. Indian-origin companies have historically been among the top beneficiaries, with USCIS data showing they secured 24,766 out of 130,000 H-1B visas issued between April and September 2024. Firms like Infosys and Tata Consultancy Services (TCS) have long relied on this programme to bridge skill gaps in their US operations.

However, recent years have seen Indian IT firms reduce their dependence on the H-1B visa by hiring more local talent. HCLTech reported that 80% of its US workforce now comprises locals, while Wipro has adopted a similar approach. These shifts are driven by both regulatory uncertainties and the need for greater self-sufficiency.

Tighter Regulations and Challenges for Indian Workers

The number of H-1B visa approvals has been declining, with major sponsors like Amazon, Infosys, and TCS seeing notable drops in 2024. Economic factors such as the global recession and the rise of AI-driven business models have also contributed to reduced demand for traditional tech roles.

Adding to the challenges, Senator Bernie Sanders recently proposed amendments to the H-1B programme, including doubling application fees and raising minimum wage requirements. Sanders argued that these measures would prioritise local talent and prevent companies from undercutting American workers’ wages. While these proposals aim to address domestic concerns, they could make it more difficult for Indian professionals to secure employment in the US.

Conclusion

Indian IT professionals face an uncertain future as Trump’s presidency revives stricter policies on foreign workers. While companies are adapting to these challenges by hiring more locally, the path ahead for Indian talent in the US remains fraught with obstacles.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.