Jio Platforms Set to Become World’s Sixth-Largest Telecom Company After IPO

According to a news report, Jio Platforms, a digital services powerhouse under Reliance Industries, is reportedly preparing to initiate the process for its highly anticipated initial public offering (IPO). If realised, this move could catapult the company into the league of the world’s top 6 telecom firms by enterprise value (EV).

Industry analysts have projected Jio’s enterprise value to fall between $136 billion and $154 billion at its peak. Such a valuation would not only place Jio ahead of many global telecom giants but also make it the fastest telco to reach this stature, having commenced operations only in September 2016.

Benchmarking Global Telecom Giants

Should Jio reach its highest projected valuation of $154 billion, it would sit just behind 5 global telecom leaders in terms of market capitalisation:

  • T-Mobile (USA) – $282.58 billion

  • China Mobile – $232.09 billion

  • AT&T – $198.67 billion

  • Verizon – $184.41 billion

  • Deutsche Telekom – $175.63 billion

This would position Jio Platforms above Bharti Airtel, currently holding the sixth spot globally with a market capitalisation of $131.34 billion. Additionally, Jio would overtake other prominent names like Comcast, China Telecom, NTT, Softbank, and Saudi Telecom.

Read More: India’s $26 Billion IPO Plans in FY26 Face Reality Check – Reliance Jio and NSE Brace for Impact. 

Understanding Market Cap vs Enterprise Value

While market capitalisation measures a company’s equity value based on its outstanding shares, enterprise value offers a more comprehensive financial snapshot. EV factors in debt, minority interests, preferred equity, and subtracts cash and cash equivalents, making it a more holistic metric for corporate valuation.

This distinction is particularly relevant in Jio’s case, as some analyst projections focus on EV rather than just equity market capitalisation.

The Power of Diversification: Jio’s Subsidiary Network

Jio Platforms is not just a telecom service provider—it’s a digital conglomerate. Its subsidiaries include:

  • Reliance Jio – Mobile and broadband services

  • Jio Satellite – Satellite broadband

  • Saavn Media – Music streaming

  • Jio Haptik Technologies – Conversational AI

  • Asteria Aerospace – Drone technology

This vertical and horizontal diversification adds multiple revenue streams, bolstering its valuation prospects ahead of the IPO.

Strategic Investors Fuel Global Confidence

In a landmark fundraising exercise, Jio Platforms has secured ₹152,055 crore from a host of global giants, including:

  • Facebook (Meta)

  • Google

  • Silver Lake

  • KKR

  • Mubadala

  • General Atlantic

  • Vista Equity Partners

  • TPG

  • ADIA (Abu Dhabi Investment Authority)

Together, these strategic investors hold a collective stake of over 32.9% in the company, underscoring international confidence in Jio’s long-term vision and business model.

Conclusion

Jio Platforms’ expected IPO could mark a significant chapter not only for the company but also for the Indian telecom and digital services landscape. With global benchmarks in sight and a history of disruptive growth, the world is watching as Jio positions itself for a possible top-tier global ranking in the telecom industry.

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.

Government to Compensate OMCs for ₹30,000 Crore LPG Under-Recovery in FY26

According to news reports, the Government of India is reportedly likely to provide oil marketing companies (OMCs) compensation for the ₹30,000 crore under-recovery they are incurring in the ongoing financial year 2025–26 (FY26) due to the sale of subsidised Liquefied Petroleum Gas (LPG). According to a news report, officials from Indian Oil Corporation Ltd (IOCL), the largest among the 3 public sector OMCs, disclosed that they alone faced an under-recovery of ₹19,000 crore in FY25.

Although the Centre raised the price of LPG by ₹50 per cylinder last month, the move only reduced under-recovery by ₹10,000 crore. The remaining gap is expected to be covered through government support by the end of FY26.

Read More: Best Oil and Gas Stocks in May 2025: CPCL, Oil India, Aegis and More- Based on 5-Year CAGR. 

Mounting Losses for OMCs in FY25

OMCs bore significant financial pressure in FY25, with collective losses exceeding ₹41,000 crore. This was primarily driven by the surge in global LPG benchmark rates, particularly the Saudi Contract Price (Saudi CP). As per industry sources, the average Saudi CP escalated from $415 per tonne in FY21 to $712 per tonne by FY23 due to heightened volatility sparked by global trade tensions.

India’s LPG Dependency and Pricing Dynamics

India imports over 60% of its LPG requirement. As a result, domestic pricing remains closely linked to international benchmarks. Between July 2023 and February 2025, the average Saudi CP climbed 63% to $629 per tonne. During the same period, however, the effective price paid by households under the government’s flagship Pradhan Mantri Ujjwala Yojana (PMUY) was slashed by 44%.

This disparity underscores the burden absorbed by OMCs to maintain affordable household LPG prices, especially for economically vulnerable segments.

PMUY: Widening Access to Clean Cooking Fuel

Launched in May 2016, the PMUY aimed to replace traditional cooking fuels like firewood and cow dung with cleaner alternatives such as LPG. As of March 2025, the scheme had 103.3 million beneficiaries, pushing national LPG coverage to 107%. While beneficiary expansion under PMUY has plateaued, OMCs indicate that national-level demand for LPG is expected to stabilise rather than decline in the coming years.

Government Mulls Compensation Options

According to the news report, petroleum ministry officials have conveyed that a further price increase for PMUY consumers is unlikely in the short term. Consequently, discussions are ongoing with the finance ministry to determine an appropriate compensation mechanism for OMCs. A direct capital transfer, similar to the ₹22,000 crore support approved in 2022, remains a possibility—though not the government’s preferred option at present.

Conclusion

LPG prices to stay elevated due to shifts in global trade patterns. China has redirected a significant portion of its LPG imports from the United States to West Asia, increasing regional demand and contributing to price rises in Asia. Simultaneously, the US has boosted LPG exports to Europe and other parts of Asia, including India and Japan. This evolving trade landscape is keeping US and European prices subdued, while pushing Asian rates higher.

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.

Partial Cancellation of SEZs: Tata Steel, Infosys, ELCOT & SIPCOT Seek Government Nod

According to news reports, 4 prominent SEZ developers—Tata Steel, Infosys, Electronics Corporation of Tamil Nadu (ELCOT), and State Industries Promotion Corporation of Tamil Nadu (SIPCOT)—have submitted proposals to the government seeking partial cancellation of their respective Special Economic Zones (SEZs). These applications will be considered by the Board of Approval (BoA) in its upcoming meeting scheduled for May 9, chaired by Commerce Secretary Sunil Barthwal.

Special Economic Zones are designated enclaves considered foreign territory for trade and customs purposes. They offer tax incentives and simplified procedures to boost exports and attract investment. As of March 2024, 416 SEZs have been approved by the Indian government, with 276 operational and 6,279 units approved till the end of the financial year.

Tata Steel Seeks to Partially Surrender Gopalpur SEZ Land

Tata Steel SEZ Ltd, formerly known as Gopalpur SEZ Ltd, has requested the partial de-notification of 282.73 hectares from its total 588.65 hectares multi-product SEZ in Gopalpur, Odisha. The Development Commissioner of Falta SEZ, which oversees the jurisdiction, has recommended the proposal.

The company has already seen significant investments entering the domestic tariff area (DTA) surrounding the SEZ, which may have prompted the move to reallocate the land more effectively. The partial surrender is aimed at better aligning land use with current industrial and infrastructure development priorities. 

Read More: Tata Motors Share Price Fell ~2% Ahead of Demerger Vote Meeting. 

Infosys Cites Development Uncertainty in Indore SEZ

Infosys Ltd has proposed the partial de-notification of 20.23 hectares from its 52.64 hectares IT/ITES SEZ located in Indore, Madhya Pradesh. According to its submission, the company has completed Phase 1 of the development project but is encountering uncertainty with respect to Phases 2 and 3.

In its request, Infosys expressed its intention to optimise the use of allocated land and facilitate the creation of a more inclusive IT ecosystem by opening the unused area to other potential companies. The move reflects a shift towards land efficiency and adaptive planning in response to evolving operational realities.

ELCOT and SIPCOT Also Seek Land Reductions

The other 2 applications come from Tamil Nadu. ELCOT has sought approval to surrender 2.4 hectares of land from its 80.88 hectares IT/ITES SEZ located in Tirunelveli. Similarly, SIPCOT has applied for a partial cancellation, though the specific land area involved has not been detailed in the public domain.

These requests are part of a broader trend observed across multiple state and central SEZ developments, where developers are reassessing land usage amidst changing economic dynamics, policy shifts, and the evolving landscape of industry requirements.

SEZ Performance Remains Robust Despite Proposed Reductions

Despite these proposed cancellations, SEZs have shown a resilient performance. According to official data, exports from SEZs rose by over 8% to $143.34 billion between April 2024 and January 2025. SEZs contributed to more than one-third of India’s total outbound trade in the last financial year.

The partial cancellations do not reflect a decline in SEZ efficacy but rather a move towards rationalisation and resource optimisation. These land reallocation efforts may enable better integration with domestic economic zones or support more targeted infrastructure planning.

Conclusion

As India’s economic priorities evolve, the SEZ framework is undergoing gradual transformation. The current wave of partial de-notification requests underscores a more strategic and flexible approach to land utilisation by developers. The upcoming BoA meeting will provide further clarity on how the government balances export promotion with efficient land and infrastructure usage across SEZs.

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.

Retirement Age to Increase? HP Considers 59-Year Limit to Ease ₹800 Crore Budget Pressure

According to the news reports, Himachal Pradesh is grappling with significant fiscal stress, intensified by a sharp reduction in central revenue support. According to reports, the state’s revenue deficit grant has plummeted from ₹8,058 crore in FY24 to ₹3,257 crore in FY26. In response, the state government is actively exploring structural measures to manage its budget, one of which includes extending the retirement age of state employees by 1 year, from 58 to 59.

This proposed adjustment aims to delay pension payouts and retain experienced personnel for longer, potentially saving the state an estimated ₹800 crore in the current fiscal cycle.

Read More: Explore the Different Phases of Retirement Goals. 

Cabinet Subcommittee’s Cost-Containment Proposals

A cabinet subcommittee headed by Deputy Chief Minister Mukesh Agnihotri has submitted a report outlining several cost-containment recommendations. These include:

  • Increasing the retirement age to 59 years

  • Ending the practice of allowing retirees to commute 40% of their pension

  • Raising the minimum qualifying service for full pension eligibility from 20 to 25 years

  • Linking retirements in the education sector to the end of academic sessions rather than birthdays

The intent is to curb the immediate outflow of retirement benefits and ease fiscal pressure on the state exchequer.

Rising Pension and Salary Commitments

The financial demands of the state’s pension and salary obligations are substantial. Currently, the monthly pension outlay stands at ₹800 crore for approximately 1.89 lakh retirees. In addition, the state pays ₹1,200 crore in salaries to about 2.42 lakh active employees.

Following the Congress-led government’s return to power, Himachal Pradesh reinstated the Old Pension Scheme (OPS), a move that led 1.17 lakh employees to shift from the New Pension Scheme (NPS). While politically popular, the reintroduction of OPS has intensified fiscal challenges.

Political Trade-offs and Employment Promises

Extending the retirement age, while economically beneficial in the short term, presents a political dilemma. The proposal could delay recruitment processes, potentially hindering the government’s promise to create one lakh new jobs annually. With more than eight lakh unemployed youth in the state, the move may face resistance from job-seeking constituencies.

The government must weigh the trade-off between immediate fiscal relief and long-term employment opportunities—a balancing act made more delicate by the state’s growing debt burden, which now exceeds ₹1.04 lakh crore.

Conclusion

The proposal to align teacher retirements with the academic calendar reflects an effort to optimise public expenditure without abrupt disruptions. However, each policy shift carries implications not just for finances, but also for the public services ecosystem and electoral commitments.

The forthcoming cabinet discussions are expected to address both the economic logic and the political feasibility of the retirement age hike and related reforms. As Himachal Pradesh searches for viable solutions to stabilise its finances, the decisions made will likely shape the fiscal and employment landscape of the state for years to come.

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.

LG Electronics India’s IPO Plans on Hold Amid Market Volatility

LG Electronics has announced that it is not rushing into the planned ₹15,000-crore initial public offering (IPO) of its Indian subsidiary. The decision was shared by chief financial officer Chang-tae Kim during the South Korean company’s first-quarter earnings call. Citing a volatile share market and broader macroeconomic uncertainty, Kim stated that the company is not under pressure to list LG Electronics India immediately.

According to Kim, “the holding company has a stable financial structure and the continued business progress achieved by the Indian subsidiary,” allowing LG to take a measured approach.

Read More: LG Electronics India to File Updated IPO Draft in May?. 

Valuation and Timing Key to IPO Strategy

Rather than committing to an immediate listing, LG Electronics plans to make its final decision based on a 2-pronged strategy: assessing the market conditions to secure a fair valuation for the Indian arm, and choosing a time that can generate maximum synergy with the IPO.

“Instead, our final decisions will be made upon a comprehensive assessment on, number one, the market conditions that ensure a proper valuation for the Indian subsidiary and number two, an optimal timing where we can generate maximum synergy with the IPO,” said Kim.

IPO Filing and Revised Timeline

LG Electronics India filed its IPO proposal with the Securities and Exchange Board of India (SEBI) in December last year. The proposal included an offer for sale of 101.8 million shares, representing a 15% stake by the Korean parent. The IPO was initially slated for a May launch.

However, due to continued global uncertainty, particularly surrounding US trade policies, the company is now eyeing a potential post-August launch. Industry observers note that LG may be waiting for market sentiment to stabilise before moving forward.

Delay Reflected in Postponed Leadership Visit

The shift in IPO timing also coincides with changes in the company’s leadership schedule. LG CEO William Cho has postponed his planned visit to India, which was originally scheduled for this week. His visit was to mark the ground-breaking ceremony for LG’s third manufacturing facility at Sri City in Andhra Pradesh.

This postponement underscores the company’s current wait-and-watch approach, balancing long-term investment in India with short-term caution around capital market movements.

India Remains a Core Market for LG Electronics

Despite the delay, LG’s commitment to India remains strong. India is the company’s second-largest market after the United States. LG Electronics India holds leading market positions across several consumer durable categories. It is the market leader in refrigerators, washing machines, and microwave ovens, while ranking second in air conditioners and televisions.

According to Kim, India’s robust market growth and future potential have attracted both domestic and international investor attention.

Rising Interest and Public Speculation

“And following the IPOs of major companies in Korea, we too are aware of the rising public interest on the prospects of listing our Indian subsidiary, which has unique strength in the strong Indian market,” said Kim.

Conclusion 

He acknowledged the ongoing speculation surrounding the IPO timeline but reiterated that any decision will factor in the broader macroeconomic environment. Meanwhile, procedural steps for the India IPO are underway.

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.

EPFO Eyes BSNL and MTNL Properties to Expand Infrastructure Footprint

According to a report, the Employees’ Provident Fund Organisation (EPFO) is seeking to expand its physical infrastructure to cater to an anticipated increase in its subscriber base, from nearly 70 million to 100 million in the coming years. The move is part of a broader strategy to shift from rented offices to owning its premises across the country.

To achieve this, the retirement fund body is exploring opportunities to acquire offices, land, and buildings from 2 government-run telecom firms—Bharat Sanchar Nigam Limited (BSNL) and Mahanagar Telephone Nigam Limited (MTNL).

Discussion at the Central Board of Trustees Meeting

The matter was deliberated at length during the Central Board of Trustees (CBT) meeting held on 28 February 2025. Union Labour and Employment Minister Mansukh Mandaviya, who chairs the board, emphasised the need for government-to-government collaboration for the smooth acquisition of BSNL and MTNL assets.

“The Chairman remarked that the timely completion of capital projects is essential as it has been generally observed that it becomes very difficult to complete the projects which are delayed by more than 3 years due to cost overruns and price escalation,” the meeting minutes noted.

Coordinated Engagement with DoT, BSNL and MTNL

According to the report, EPFO stated in response to a written query that it has been actively enhancing its infrastructure by leasing or procuring land and buildings from central and state government bodies and their undertakings.

In continuation of these efforts, the Central Provident Fund Commissioner (CPFC) has approached the Department of Telecommunications (DoT) to designate an officer from the ministry, BSNL, or MTNL to collaborate with EPFO’s chief engineer. The goal is to compile a consolidated inventory of BSNL/MTNL assets available for sale or lease and ensure smoother coordination.

Asset Monetisation by BSNL and MTNL

The collaboration comes at a time when BSNL and MTNL are monetising their unused real estate assets. As per the report, BSNL has listed 5,208 separate vacant land and building assets across India for sale or rent, in addition to 536 upcoming properties.

Earlier in March 2025, the Union Minister of State for Communications, Pemmasani Chandra Sekhar, informed the Lok Sabha that BSNL and MTNL had earned ₹2,387 crore and ₹2,134 crore, respectively, through monetisation of land and buildings up to January 2025.

The 5-Year Perspective Plan of EPFO

This asset acquisition is part of a broader 5-year perspective plan adopted by the CBT in March 2023. Under the plan, EPFO aims to establish its own premises for all its offices and gradually reduce reliance on rented properties.

Between FY 2023–24 and FY 2027–28, EPFO intends to construct 21 zonal and 52 regional offices. This initiative is estimated to cost ₹2,250 crore, excluding an additional ₹750 crore currently being utilised for land acquisition and ongoing construction in states including Gujarat.

EPFO’s Current Operational Infrastructure

EPFO currently operates 283 offices nationwide, which include 21 zonal offices, 138 regional offices, 117 district offices, six training institutes, and its headquarters in Delhi. Out of these, 118 are situated in EPFO-owned buildings, while the remaining 165 function from rented premises.

The move to acquire government-owned real estate is expected to streamline this ratio in favour of permanent infrastructure, thereby improving operational efficiency and reducing long-term costs.

Read More: EPFO 2025: New Digital Rules for Faster Pension Claims, Home-Improvement Advances and More. 

Conclusion

According to the report, EPFO’s proactive approach to infrastructure expansion through government asset acquisition reflects strategic alignment between public sector entities. The initiative is also seen as a way to expedite project delivery and cater to the rising demand for EPFO services.

The success of this initiative will depend on inter-ministerial coordination, timely identification of viable properties, and efficient execution to avoid delays and escalating costs.

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.

TCS Awards 100% Variable to 70% Staff: What Employees Can Do With Their Variable Pay Hike

According to reports, Tata Consultancy Services (TCS), India’s largest IT services firm, has reaffirmed its commitment to rewarding performance by disbursing 100% Quarterly Variable Allowance (QVA) to over 70% of its employees. This development counters media claims suggesting reductions in senior-level variable pay.

According to internal communication reported in the media, for the remaining 30% of employees, the QVA amount has been linked to the performance of individual business units, which is consistent with the company’s regular policy of aligning payouts with operational metrics.

Variable Pay: How It Works at TCS

Variable pay at TCS is paid out on a quarterly basis and fluctuates based on both individual and unit performance. This system allows the company to incentivise performance while maintaining financial discipline.

In the second quarter of the fiscal year, the company had already paid 100% QVA to junior-level employees. For the final quarter, while the variable payout was substantial for the majority, those in higher bands or specialised units received a performance-linked payout.

Wage Hikes on the Horizon, Says Company

During the Q4 earnings conference, TCS reiterated its annual policy of salary increments, generally effective from April 1 each year. However, the final decisions on salary hikes will be announced later during the year. This policy reflects a structured and performance-sensitive approach to compensation, a hallmark of the IT industry.

Financial Health of TCS

In terms of financial performance, TCS reported a consolidated net profit of ₹12,224 crore for the quarter ended March 2025, marking a 1.7% year-on-year decline. However, revenue from operations rose by 5.3% to ₹64,479 crore. 

Smart Financial Moves Employees Can Consider With a Hike

With a variable pay boost and potential salary hike ahead, employees—especially in the IT sector—may find themselves in a stronger financial position. Here are a few constructive avenues employees can explore:

Step-Up SIPs: Aligning Investments With Rising Income

Step-Up Systematic Investment Plans (SIPs) are ideal for those receiving regular income hikes. This strategy allows employees to gradually increase their monthly investments in mutual funds, aligning with their growing earning capacity. It aids in building long-term wealth without overburdening current cash flow.

Read More: What is Step-up SIP: How to Use it. 

National Pension System (NPS): Building a Retirement Corpus

Topping up contributions to the National Pension System is another option. Employees can benefit from tax advantages under Section 80CCD(1B) and steadily accumulate a corpus for retirement. This becomes particularly effective when done regularly in tandem with income growth.

Loan Prepayment: Reducing Long-Term Interest Outgo

For employees servicing home loans or education loans, variable pay provides an opportunity to reduce outstanding principal. Prepaying loans, even partially, can significantly lower interest costs and shorten repayment tenures.

Credit Card Dues: Higher Repayments to Save on Interest

Instead of just making minimum payments, using bonus payouts or variable income to pay off credit card balances in full can prevent the accrual of high-interest charges. It can also improve credit scores over time.

Emergency Fund Top-Up: Fortifying Financial Stability

An emergency fund is a financial safety net. A portion of variable pay can be allocated to boost or build this fund, ideally covering at least 6 months of essential expenses. This ensures financial stability in uncertain times.

Upskilling and Certification: Investing in Career Growth

With the tech industry evolving rapidly, investing in upskilling through paid courses or certifications can improve future earning potential. It is also a productive use of surplus income.

Read More: TCS Follows Infosys: Salary Hike Letters Coming Soon – What to Expect.

Conclusion

While TCS’s recent variable pay announcement reflects strong employee performance and company stability, it also presents an opportunity for individuals to make thoughtful financial choices. Whether it’s through increasing investments, reducing liabilities, or building buffers, employees can use this inflow to enhance their overall financial well-being.

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.

NSE Probes Wall Street Firm Jane Street Over Suspicious F&O Trades

According to a Moneycontrol report, Jane Street, a global giant in proprietary trading known for handling transactions worth trillions, is now facing regulatory scrutiny in India. The National Stock Exchange (NSE) has reportedly initiated a probe into certain derivatives trades carried out by Jane Street Singapore Pte, a registered Foreign Portfolio Investor (FPI), raising concerns about market conduct and potential manipulation.

NSE Flags Suspect Derivatives Trades

As per Moneycontrol reports, the NSE’s surveillance systems flagged certain trades executed by Jane Street in the derivatives market, which were rapidly reversed with the same counterparties. These transactions were carried out at prices significantly higher or lower than the preceding trades, triggering suspicion of irregular trading patterns.

 

The trades under question were executed using automated systems. Jane Street, along with its custodian bank, claimed there was no human intervention and therefore no malafide intent. In response to the NSE’s notice sent in January, both parties stated that the trades were machine-based and driven by algorithmic models.

 

Sources familiar with the matter indicated that such trades are common among large F&O players who use multiple AI-driven models. At times, these systems may generate conflicting trades within microseconds. The probe is not limited to Jane Street alone; three to four other FPIs have reportedly received similar notices and are currently responding to the exchange.

Context and Regulatory Backdrop

This scrutiny comes amid a boom in Jane Street’s India operations. In April 2024, the firm also accused two former traders Doug Schadewald and Daniel Spottiswood of stealing highly valuable trading strategies, according to Bloomberg.

 

Globally, Jane Street came into the spotlight when the Financial Times reported in 2021 that the firm had traded $17 trillion worth of securities in 2020 and managed $8 trillion in ETF assets, with a focus on bond ETFs.

 

Meanwhile, India’s F&O market has been experiencing increased activity from both foreign funds and domestic traders. To manage this surge and maintain market integrity, the Securities and Exchange Board of India (Sebi) tightened regulations in November 2024. Measures included increasing contract sizes to ₹15 lakh, limiting weekly expiries to one benchmark index per exchange, enhancing margins, and introducing intra-day position monitoring.

Read More: Nifty Waves Index Launched: Top 10 Constituents and Their Weightage

Conclusion

While Jane Street maintains that the flagged trades were purely algorithm-driven and lacked any fraudulent motive, the NSE’s investigation highlights the regulatory focus on maintaining discipline in India’s evolving derivatives market. The outcome of this probe may play a critical role in shaping the framework for automated and high-frequency trading by foreign funds.

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. 

SK Minerals & Additives Files Draft Papers for IPO with BSE SME

Ludhiana-based SK Minerals & Additives has filed draft papers with the BSE SME platform to raise funds through an Initial Public Offering (IPO). The IPO comprises a fresh issue of up to 32.4 lakh equity shares with a face value of ₹10 each. The company filed its Draft Red Herring Prospectus (DRHP) on April 28, 2025. The shares are proposed to be listed on the BSE SME exchange.

Use of Proceeds

  • ₹310 million towards working capital
  • ₹55.54 million for capital expenditure, including the purchase of plant and machinery
  • The remaining amount will be used for general corporate purposes

Company Background

Incorporated in February 2022, SK Minerals & Additives is involved in the manufacturing, processing, and supply of speciality chemicals and industrial minerals. The company works with materials like bentonite, talc, dolomite, barite, and kaolin. It operates through a combination of in-house production, imports, and domestic trading.

Product Applications

The company’s products are used in industries such as food and bakery, animal feed, petroleum, plywood, ceramics, plastics, rubber, agriculture, and oil drilling. It also has a research and development pipeline focused on specialised chemical products.

Financials

In the first seven months of FY25, ending October 31, 2024, the company reported ₹113.92 crore in revenue from operations and a net profit of ₹5 crore. For the full FY24, the company reported ₹108.76 crore in revenue and ₹3.09 crore in net profit.

Read More: Upcoming IPO in 2025

Shareholding and Structure

  • Pre-issue shareholding: 90,00,000 shares
  • Post-issue shareholding: 1,22,40,000 shares
  • Market maker portion: 1,62,000 shares

The promoters are Sunita Rani, Mohit Jindal, Rohit Jindal, and Shubham Jindal.

Lead Manager and Registrar

Khambatta Securities Limited is the book-running lead manager. Maashitla Securities Private Limited is the registrar to the issue.

Conclusion

This IPO presents an opportunity for the company the expand its operations within the speciality chemicals and industrial minerals sector. The proposed listing on the BSE SME exchange marks a significant step in the company’s growth trajectory, supported by experienced lead managers and registrars.

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.

SME Migration to Mainboard Slows Amid Stricter SEBI Regulations

The once-booming trend of small and medium enterprises (SMEs) transitioning from the SME platform to the mainboard of Indian stock exchanges has seen a dramatic slowdown. As of 5 May 2025, only one company has successfully made the shift this year, compared to 12 in the whole of 2024. This represents a significant departure from the average of nearly 50 annual migrations recorded between 2020 and 2022.

Regulatory Overhaul Behind the Slowdown

This decline can be attributed to the Securities and Exchange Board of India (SEBI)’s decision to strengthen the regulatory framework governing SME-to-mainboard migration. In its December 2024 board meeting, SEBI approved a revised migration framework, which was officially notified in March 2025. 

The tightened rules, introduced to address concerns around corporate governance and protect public shareholders, have made it considerably more challenging for SMEs to qualify for mainboard listing.

Longer Waiting Periods for Transition

The time taken for SMEs to migrate has also increased substantially. While the average gap between SME listing and mainboard transition was under 2 years in 2019, this has now expanded to approximately five years. A contributing factor is the introduction of a mandatory three-year minimum waiting period between SME listing and mainboard migration.

New Eligibility Requirements by Stock Exchanges

Further compounding the slowdown are fresh eligibility criteria introduced by the National Stock Exchange (NSE) in April 2025. Key highlights include:

  • Minimum revenue: Companies must report at least ₹100 crore in revenue in the preceding financial year.

  • Profitability: Positive operating profits must be demonstrated in at least two of the past three financial years.

  • Promoter holding: Promoters must retain at least 50% of their initial shareholding at the time of SME listing.

  • Corporate governance: Companies must clear checks related to regulatory compliance, financial defaults, and other governance issues.

These measures are intended to ensure only financially stable and well-governed companies graduate to the mainboard.

Scrutiny of Past Migrations Fuels Stricter Norms

The revised regulations come in the wake of regulatory scrutiny of certain previously migrated SMEs. Companies such as Gensol, SecUR Credentials, and Varanium Cloud were flagged for alleged irregularities, including fictitious transactions, stock manipulation, and misappropriation of funds. These incidents underscored the risks faced by public shareholders and revealed loopholes in the earlier framework.

Read More: Retail Rush Turns Risky: Over 1 Lakh Investors Trapped in Gensol Engineering Shares. 

SEBI’s Stand on Governance and Promoter Behaviour

In a consultation paper issued in November 2024, SEBI raised concerns about a pattern of declining promoter holdings post-listing and instances of misconduct. It also advocated for a phased relaxation of promoter lock-in periods, while reinforcing the need for robust corporate governance to counter the growing risks of fund diversion and promoter exits.

Alternative Fundraising Options Without Migration

To address capital-raising concerns under the new regime, SEBI has introduced new flexibilities. SMEs can now raise funds through rights issues, preferential allotments, and bonus issues without necessarily migrating to the mainboard. This marks a shift from earlier requirements where such capital-raising activities often triggered mandatory migration.

Conclusion

The frenzied activity witnessed in the SME segment last year led stock exchanges to impose caps on listing gains to prevent excessive speculation. This further signals the regulatory intent to introduce greater stability and long-term credibility to the SME platform.

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.