Morning Buzz: IT headcount falls for first time in 25 years, AU and Fincare Small Finance Bank to merge, and more

Here are the top business headlines this morning to get your day started

  • Published:
  • 30/10/2023 09:54 AM

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IT headcount falls for first time in 25 years

Nine of the top 10 Indian IT companies employing two million engineers have seen their headcount shrink in the six months to September 30. The services companies have been grappling with the impact of AI as well as the cut back in spends on the part of clients. Mint’s numbers showed that the headcount fell by 51,000 to 2.06 million from 2.13 million.

(Mint)

Large private firms asked to dematerialise shares

All private companies except for small and government companies can now issue shares only in demat form. Those that have physical shares have been given till September 2024 to comply. This will help the government take care of benami transactions and the back-dated issuing of shares to the detriment of other shareholders. Also, any transfer of shares for these companies can take place only in dematerialised form.

(Economic Times, Business Standard, BusinessLine)

AU and Fincare Small Finance Bank to merge

AU Small Finance Bank plans to merge with Fincare Small Finance Bank. Shareholders of Fincare SFB will receive 579 shares of AU for every 2000 shares of Fincare held. The merger is expected to take effect from February 1, 2024. The merger is contingent on regulatory approvals as well as the infusion of Rs700 crore by the promoters of Finacre. The managing director of Fincare, Rajeev Yadav, is to assume the role of deputy managing director of AU Small Finance Bank.

(Exchange filing)

New mutual fund launches slow after new debt fund tax

New mutual fund schemes in the debt segment have seen a slowdown in launches post the changes in taxation. The first half of FY24 saw the launch of 73 schemes as compared to 183 in the first half of FY23. Last year, NFOs in the debt fund space comprised the majority of launches. Now most launches are in the equity and hybrid space. In the balances, hybrid segment fund houses must maintain both equity and debt at 40 percent.

(Business Standard)