The 2,000 rupee note is seeing a sharp drop in print orders by the RBI. The number of outstanding notes has shrunk by 72 million to 3.29 billion in FY19. According to bankers, the RBI is shifting focus away from the Rs 2,000 note as the denomination was printed in large numbers to cope with the replacement of demonetised notes. After all demonetised notes were replaced in March 2017, the Rs 2,000 note accounted for half the total value of the currency in circulation. A year later its share declined to 37%. It now accounts for 31% of the value of total currency in circulation. All other banknotes saw an increase in the number in circulation. The biggest increase in share was by the Rs 500 note which now accounts for 51% of the banknotes in circulation. Notes of Rs 10 denomination are the largest in number with 31.28 billion in circulation. According to the RBI, indent (orders based on demand from banks) of banknotes for 2018-19 was lower by 5.6% from their level a year ago. However, the supply of banknotes during 2018-19 was higher than in the previous year.
2 India Inc leaders fired
Corporate governance issues claimed two top leaders of India Inc. The board of CG Power & Industrial Solutions sacked its chairman Gautam Thapar for financial irregularities worth thousands of crores of rupees, spread over several years, which he denied. Meqnwhile, the board of ratings major ICRA, the Indian arm of global major Moody’s, fired its MD Naresh Takkar for allegedly using his influence and improving ratings for companies in return for financial and other gains. After Thapar - the scion of the L N Thapar group - was sacked, the stock price of CG Power rallied 5%, the maximum possible, to close at Rs 10 on the BSE. “In cognizance of the current situation and recent developments...the board by majority consent has resolved to remove Gautam Thapar…with immediate effect,” CG Power said in a regulatory filing. The board said the decision was taken in the interests of the company and its stakeholders. In the case of ICRA, its board said it terminated the employment of Takkar as MD and group CEO, effective immediately. The decision was taken “after due consideration and taking into account the best interests of the company and its stakeholders”.
FPIs pull out £592 mn in August
Foreign investors pulled out a net amount of £592 million from the Indian capital markets in August even as the government rolled back enhanced surcharge on FPIs last week. The withdrawal from the capital markets (both equity and debt) in August is “contrary to the expectation” since the Centre last week announced revocation of enhanced super rich tax on foreign and domestic equity investors imposed in the Budget, said Himanshu Srivastava, senior analyst manager research at Morningstar.
According to the latest depositories data, foreign portfolio investors (FPIs) withdrew a net amount of £1.75 billion from equities and pumped in a net sum of £1.16 billion in the debt segment, translating into a total net outflow of £592 million during August 1-30. In July, overseas investors had pulled out a net amount of £298.6 million from the capital markets. Prior to the announcement of enhanced super-rich tax in the Union Budget for 2019-20 in July, FPIs were net buyers for five consecutive months.