Renault-Nissan set up a $200 million fund to tap into startups

In the latest move to adapt to the dynamic changes in the industry, the trinity of the Renault-Nissan-Mitsubishi partnership have started a fund for $200 million. Sources have attested that Mitsubishi plans to invest 20%, Renault and Nissan will finance 40% each of the fund. The aim of setting up such a fund is to invest into start-ups.
Reportedly, the fund will be unveiled Chief Executive Officer Carlos Ghosn in Las Vegas at the CES Tech Industry Show next Tuesday. Prominent car-makers have realized that investing in tech startups will allow them move ahead in acquisitions much faster. When the industry is as competitive it helps.
The auto industry which traditionally relies on ownership, is gradually coming to terms with services like Uber and other car-sharing platforms which have taken over. Self-driven cars and electric models are also flooding the market.
BMW is the latest automobile company to have ventured into this sector through its 500 million Euro investment in iVentures fund. It is  the biggest in-house facility that is owned by such a brand. This will allow BMW to now expand into car-sharing and other ride software companies.
While Nissan has refused to discuss further investment plans The fund will be set up and planned by Francois Dossa, head of a Dutch joint venture.

EOW now in charge of PanCard clubs fraud probe of Rs 7,035 crores; case against 6 directors filed

The Economic Offences Wing (EOW) has taken over the reins in the PanCard Clubs (PCL) investigation which is being touted as one of the greatest investment frauds. Over 50 lakh investors have been allegedly cheated of a staggering total of Rs 7,035 crore. An officer at EOW has said that a case against PCL and six of its directors has been registered under IPC and other sections of the Maharashtra Protection of Interest of Depositors (MPID), as reported by Times of India.

PCL is a Mumbai based timeshare company that came up with several schemes for hotel stays. The company promised the investors holiday packages at the hotel and investors who did not avail of this offer were promised higher returns on their investments. When one of the investors complained, the Securities and Exchange Board of India (SEBI) intervened and discovered that there were multiple investment schemes being run by the company.

The SEBI barred PCL from selling its properties which the company challenged in the Securities Appellate Tribunal (SAT) but the SEBI order was maintained. After this, PCL’s head office in Mumbai shut down.

Reports have found that most of the investors at PCL belonged to middle-class families from all around the country.

Sources: The Times of India, The Quint

Jaitley inaugurates Invest Karnataka, praises state

Union Finance Minister Arun Jaitley, while inaugurating the three-day Invest Karnataka event in Bangalore said that while unpredictability and vulnerability has become the norm of global economy, India has remained “relatively unimpacted” by the crises.

“The world faces a very difficult and challenging situation… In the global situation, India is being distinctively noticed,” said the Finance Minister.

He praised Karnataka for focusing on inclusive development, and added that the state is in a position to achieve 2 to 3 per cent higher growth rate as compared to the national average. He also assured the cooperation of the Central government to help Karnataka achieve the same. According to NASSCOM, Bengaluru alone attributes 38 per cent of the total revenue from IT exports of India. Karnataka’s IT exports alone amounts to $27 billion, and according to the state, has one of the fastest growing economies in the country, with 7 per cent Gross Domestic Product. He urged the government to ease laws for manufacturing sector, to further boost growth.

In its fourth edition of global investment meet, Karnataka expects to gain an investment worth one lakh crore, said a statement released by the government.

Business heads like Azim Premji, Narayana Murthy, Kumaramangalam Birla, Anil Ambani, Gautam Adani, were all present at the inauguration.

 

SOURCES: Financial ExpressNew Indian Express