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Setback for SAT, SC expunged its remarks against retired IRDAI member

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In a setback for the Securities Appellate Tribunal (SAT), the Supreme Court has expunged the former’s uncalled remarks against former Member (Non-Life), Insurance Regulatory and Development Authority of India (IRDAI) P.J. Joseph.

The Supreme Court in its recent order on an appeal filed by IRDAI against Atkins Special Risks Ltd and others said: “Having heard learned counsel for the parties and on perusal of record, we are of the opinion that the remarks made by the Tribunal against Mr. P.J. Joseph in paragraphs 8 and 9 of the impugned order dated March 16, 2018 as well as the comments in paragraph 1 of the said order were uncalled for and deserve to be set aside.”

“I am happy that the uncalled remarks by SAT in its order has been expunged,” Joseph told IANS.

The SAT on March 16, 2018 setting aside an IRDAI order had said: “We fail to understand as to how Member (non-life) could make such false statement in the impugned order. In our opinion, the impugned order passed by P.J. Joseph (non-life) virtually amounts to aiding and abetting corruption in the insurance business by the regulator which cannot be tolerated.”

The SAT had directed the insurance regulator to entrust the matter to a competent officer other than Joseph for fresh orders on Atkins complaint on merits.

The SAT’s remarks were questioned by legal eagles then.

“The stinging remarks against the Member (Non-Life) by name, with due respect to the SAT, are quite unfortunate and seem to be crossing swords with the repeated and well advised principle of ‘judicial restraint’ by the Supreme Court of India,” D. Varadarajan, a Supreme Court advocate specialising in company/competition/insurance laws, had told IANS.

Going by an SAT order dated March 16, the concerned IRDAI official was not even arraigned as a party, Varadarajan added.

The IRDAI on January 9, 2018, disposed off the complaint by London-based reinsurance broker Atkins Special Risks Ltd against rival Marsh India Insurance Brokers Pvt Ltd of poaching its reinsurance business offering unlawful payment to Jagdish Pershad Gupta, Chairman, Jagson International Ltd.

Atkins’ complaint was that between 2002 to 2012 it provided international reinsurance cover to Jagson. From 2010 onwards Jagson’s Gupta started demanding, through email, a cut in Atkins commission.

In 2012, Jagson’s reinsurance business was given to Marsh.

Atkins hired a private investigation firm to find out any payment of kick-backs by Marsh to Gupta.

As per the SAT’s order, the investigation firm had confirmed kick-backs to Gupta for diverting the reinsurance business to Marsh from Atkins.

Atkins alleged that during the telephonic conversation, Gupta had said that Marsh had agreed to pay him $4,00,000 in order to obtain Jagson’s business.

The SAT, in its order, said Atkins had relied on documentary evidence in support of the contention that Gupta had sought a bribe and was bribed by the officers of Marsh for diverting the reinsurance business from the appellant to Marsh.

The IRDAI stand that Atkins did not submit any documentary proof is false, said SAT.

An IRDAI official had then told IANS that the proof given by Atkins was not strong and hence focused investigation on Marsh’s books were not made.

The right to appoint or change reinsurance broker vests with the primary insurer. Interestingly, neither the IRDAI’s order nor the SAT order mentions the name of the primary insurer for Jagson or the reason for the change in reinsurance broker.

Reinsurance plays a major role in insuring huge risks. Many private general insurers are happy to front the business as the primary insurer passing on the lion’s portion of the risk to reinsurers. As a result the reinsurance brokers gained importance, a senior industry official had told IANS.

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India seen as credible broker for Russia-Ukraine peace talks: Report

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India is seen as a credible country that can help in the peace talks between Russia and Ukraine because it is one of few major powers with working relationships with both countries, according to a report in Al Jazeera.

It cited a foreign affairs expert as saying that India’s strategic autonomy puts it in a position to push for peace because New Delhi is “friends with both” sides.

India has also been even-handed. In July, it summoned Moscow’s charge d’affaires to condemn a Russian strike on a merchant vessel that killed 10 people, including four Indian crew members. Days later, it summoned Ukraine’s ambassador over an Indian seafarer killed in a Ukrainian drone strike on the MV Omorfi, the report observes.

It highlights that India is also an importer of goods from both Russia and Ukraine. In the 2025-26, India imported 1.46 million tonnes of sunflower oil from Russia and 443,000 tonnes from Ukraine, according to the Indian Solvent Extractors’ Association (SEA), alongside large volumes of Russian crude.

The article cites Maximilian Hess, a fellow at the Foreign Policy Research Institute, as saying that Zelenskyy approached India “because they have leverage over Moscow, and they are still one of the few major buyers of its oil.”

He added that a large amount of Russian money sits in the Indian financial system, which Moscow wants to keep access to.

Before Russia’s full-scale invasion in 2022, about a third of the world’s grain exports passed through the Black Sea, with Ukraine supplying a tenth of global wheat exports and 15 percent of maize. Disruption hits food-importing countries hardest, particularly in Africa and parts of Asia, the report states.

Indian officials point out that India as a leading voice of the Global South is keen that food exports to these developing nations resume to prevent adequate supplies and controlling rising inflation.

Both Ukrainian President Volodymyr Zelensky and Prime Minister Narendra Modi have discussed the issue of opening the food corridor over a phone call.

“India is ready to mediate in establishing food corridors, and we are counting on these efforts to continue,” Zelenskyy posted on X after call. The leaders discussed Russia’s blocking of grain exports in the Black Sea, he said.

PM Modi said India was ready to contribute “in every possible way” towards a peaceful resolution of the Russia-Ukraine conflict.

External Affairs Minister S. Jaishankar, during a visit to Kyiv in September, spoke of a potential pause on strikes against Black Sea shipping and energy infrastructure. On October 4, he said India was talking to both Russia and Ukraine about shipping safety, grain and energy exports and “non-attack possibilities”.

Ukrainian Foreign Minister Andrii Sybiha earlier called India’s proposal “the broadest”, because it covers both the Black Sea and energy infrastructure. The US plan offers only a halt to strikes on energy facilities.

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FPIs return to Dalal Street, invest Rs 53,739 crore in November so far

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Foreign portfolio investors (FPIs) turned net buyers of Indian equities in November, investing Rs 53,739 crore during the first nine days of the month after remaining net sellers for the previous two months, amid improving sentiment towards Indian markets and a global shift away from AI-linked trades.

The latest inflows come after FPIs withdrew Rs 34,843 crore from Indian equities in October and Rs 35,861 crore in September.

Analysts attributed the sharp turnaround to an AI-driven sell-off across major global markets, including the US, South Korea, Taiwan and Japan, which prompted investors to reassess their allocations.

According to analysts, concerns over data centre spending linked to artificial intelligence triggered a correction in AI-focused markets, leading global investors to seek opportunities in sectors and markets less exposed to the AI theme.

India, widely viewed as a non-AI trade, emerged as one of the preferred destinations for foreign investors during this period.

Apart from the change in global investment trends, India’s strong corporate earnings growth and attractive valuations in large-cap stocks also enhanced the market’s appeal.

Analysts noted that foreign investors were particularly active in index heavyweights, with financial services, information technology, automobile and telecom stocks attracting significant inflows.

Data from depositories showed that the Rs 53,739 crore infusion was recorded between November 2 and November 9, covering six trading sessions.

Despite the strong buying in November, cumulative FPI outflows from Indian equities in 2026 remain substantial at Rs 2.41 lakh crore.

In the debt market, foreign investors invested Rs 7,759 crore through the Fully Accessible Route (FAR).

However, they pulled out Rs 591 crore through the Voluntary Retention Route (VRR) and withdrew another Rs 270 crore through the general route.

Market participants believe sustained earnings growth and reasonable valuations in large-cap stocks could continue to support foreign investment flows into Indian equities in the near term, although global macroeconomic developments and investor sentiment towards risk assets will remain key factors to watch.

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IT Q2 results beat low expectations, but demand recovery pushed to FY28: Report

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India’s information technology (IT) services sector delivered Q2 FY27 results that were modestly ahead of subdued expectations, but the broader recovery in demand is increasingly being pushed into FY28 as companies contend with pricing pressure and AI-driven disruption, a report said on Friday.

The report from BNP Paribas India said investors responded positively to better-than-expected earnings after analysing quarterly results from 15 Indian IT services companies, including five large-cap and 10 mid-cap firms.

Shares of the covered companies rose by a median 5 per cent following the results after having declined about 23 per cent year-to-date in 2026.

The market rewarded better-than-feared revenue, margin expansion and strong deal momentum, while penalising margin pressure and weak deal wins. Demand remains steady but narrow, with the financial services vertical as the bright spot.

“While FY27 headline revenue growth guidance cuts seemed modest, the organic cut was sharper, implying that FY27 organic revenue is likely to trail FY26, with acquisitions filling in the gap partly,” the report said.

“AI-led work continues to grow even as clients demand pass-back of the productivity gains, shrinking the legacy books and pushing down pricing pressure. With seasonally weak H2FY27, companies now expect recovery in FY28, supported by large deal ramp-ups,” the report noted.

Collectively, 60 per cent of the firms beat on revenue and 53 per cent beat on EBIT margin expectations, while 27 per cent missed on revenue growth and 40 per cent missed EBIT margin expectations.

Deal Total Contract Value (TCV) inched up modestly annually in Q2FY27, underpinned by strong wins of three companies. Headcount increased slightly sequentially, while attrition and utilisations improved modestly.

Another recent report said that management commentary across nearly all major Indian IT companies during Q1 FY27 earnings season showed that clients demanded measurable outcomes, governance frameworks and stronger data foundations before committing to large-scale AI rollouts.

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