Why finance pros at PE, VC funds are flunking Sebi exam

Update: 2024-10-25

Description

Welcome to Top of the Morning by Mint, your weekday newscast that brings you five major stories from the world of business. It's Friday, October 25, 2024. My name is Nelson John. Let's get started.

Qatar's Nebras Power was supposed to acquire up to a 49 per cent stake in Aditya Birla Group’s renewable energy business for about $400 million, but the deal has been put on hold due to a valuation mismatch. Utpal Bhaskar reports that challenges such as competitive returns and execution risks in the Indian market continue to be concerns for investors. The Aditya Birla Group company is still seeing interest from Alberta Investment Management and BlackRock's Global Infrastructure Partners.

India's startups aren't complying with certain rules. The Central Consumer Protection Authority has issued notices to 11 e-commerce companies including Blinkit, Zepto, Swiggy and Meesho for violating declaration rules. These violations include failing to display product manufacturing and expiry dates, among other packaging and labelling norms. Soumya Gupta writes that the CCPA took this action after users complained about receiving perishable items close to or after their expiry dates.

After a long and contentious battle, the Insurance Regulatory & Development Authority of India has approved the Burman family's proposed acquisition of Religare, reports Anirudh Laskar. This nod marks a significant step towards the Burmans’ takeover of Religare. Only approvals from the banking and market regulators are now pending. Despite initial resistance from Religare's management, the Burman family, which owns Dabur India, aims to solidify its ownership through an open offer of more than 3,400 crore rupees.

In a surprising turn of events, 60 out of 100 private equity and venture capital executives in India failed a mandatory exam set by the National Institute of Securities Management (NISM), under directives from SEBI. This exam, which is crucial for maintaining registration, has stirred concerns within the sector. Critics argue that the exam's content, which spans various fund types—venture capital, private equity and public markets—is disproportionately focused on public markets, and does not reflect the practical differences between these fund categories. Sneha Shah and Ranjani Raghavan report on the embarrassing situation India’s PE and VC sector is staring at.

Last year, Ecom Express found itself at a crossroads, searching for new leadership after the health-related departure of its co-founder and CEO, T.A. Krishnan. With growth stalling, the company turned to Ajay Chitkara, a veteran of the telecom industry, to inject new life into its operations. Chitkara, known for his successful stint at Airtel, took the reins at a tough time and now faces a daunting task: steering Ecom Express towards profitability and a successful IPO. The company has reduced its losses, but sustaining growth remains a challenge, especially with new players such as Valmo shaking up the logistics market. Mint’s startups editor Ranjani Raghavan tackles the question of whether Ecom Express’s IPO can succeed when Delhivery’s stock has failed to deliver.

SUBJECT/Title: