India-UK FTA, CERC's Market Coupling Move, ED Heat On Anil Ambani — The Week That Was
The inheritance dispute over late Sanjay Kapur's Sona BLW added to the week's dramatic events.
This week witnessed the historic India-United Kingdom Free Trade Agreement, a bustling week in India's IPO market, and the quarterly earnings season. But the surprises don't end anytime soon, as US President Donald Trump was spotted touring the central bank's renovation project with Fed Chair Jerome Powell. Back home, Vice President Jagdeep Dhankhar announced his sudden resignation citing health issues during Parliament's Monsoon session.
Additionally, the Enforcement Directorate's probe into financial irregularities linked to Anil Ambani-led companies and the inheritance dispute over late Sanjay Kapur's Sona BLW added to the week's dramatic events.
India-UK FTA
Prime Minister Narendra Modi and his UK counterpart Kier Starmer on July 24 signed the historic free trade pact between the two countries, in a move that would enhance market access for various products between the nations.
The agreement will significantly reduce import duties and improve market access for goods and services on both sides. India’s average tariff on UK products will fall from 15% to 3%, easing entry for British exporters of soft drinks, cosmetics, cars and medical devices. Indian exports will also benefit from duty-free or preferential access across nearly all tariff lines.
CERC's Market Coupling Move
The Central Electricity Regulatory Commission approved a phased rollout of market coupling across India’s power exchanges, beginning with three months of pilot run. The change is aimed at improving market efficiency, but it reduces the commercial price discovery role of exchanges like IEX in determining prices.
The decision shifts price-setting responsibilities from individual exchanges to a central body, a development that may hurt Indian Energy Exchange, which currently handles the bulk of trade volumes and plays a key role in price discovery.
The Commission has asked the Grid Controller of India to start with pilot testing of three mechanisms: coupling the Real-Time Market (RTM) across all exchanges, coupling the RTM with Security Constrained Economic Dispatch, and coupling the Day-Ahead Market.
Day-Ahead Market coupling is scheduled to go live in January 2026, while coupling of Real Time Market and Term-Ahead Market will follow in stages.
ED Probes Perpetual FDs In Anil Ambani Case
The Enforcement Directorate is probing financial irregularities linked to Anil Ambani-led companies, centering around the controversial investment of Rs 2,850 crore by Reliance Mutual Fund in Yes Bank’s AT-1 perpetual bonds, the agency sources told NDTV Profit.
These bonds, which were later written off during Yes Bank’s bailout, resulted in heavy losses for public investors. Investigators suspect a potential quid pro quo arrangement, prompting closer scrutiny by both the ED and the CBI.
This comes after the ED searched properties linked to Anil Ambani in Mumbai and Delhi over alleged money laundering.
Donald Trump, Powell Spotted Touring Central bank’s Renovation Project
Donald Trump downplayed his clash with Federal Reserve Chairman Jerome Powell over cost overruns during a tour of the central bank’s renovation project on Thursday, making it clear that he saw the issue of lower interest rates as a more pressing concern.
After a tour that saw Trump and Powell publicly trade barbs over the cost of the project, Trump maintained there was “no tension” with the Fed chief and indicated that problems with the project probably weren’t reason enough to fire the central bank head.
He ribbed Powell — who for months has faced presidential criticism — over interest rates. “Well, I’d love him to lower interest rates. Other than that, what can I tell you?” Trump said.
Sona BLW's Inheritance Dispute
Rani Kapur, mother of late industrialist Sunjay Kapur, has asked the board of Sona BLW Precision Forgings Ltd. to postpone its annual general meeting scheduled for July 25. She alleged coercion, misuse of documents, and unauthorised moves to appoint directors claiming to represent the Kapur family, weeks after her son’s death.
The letter, sent to the board and shareholders and marked to the markets regulator, has escalated tensions within the promoter group.
On June 23, the board of Sona BLW Precision Forgings Ltd. appointed Jeffrey Mark Overly as the chairman of the company following the demise of Sunjay Kapur.
