China's rare earth curbs hit India; Groww eyes bonds
China's rare earth export controls are concerning Indian electronic manufacturers. This and more in today's ETtech Top 5.
Also in the letter: ■ IT stocks tank■ Explained: Sebi's new Esop norms■ Microsoft vs OpenAI
Alarms ring at speaker, wearables, TV makers on Chinese rare earth squeeze
China's curbs on rare earth exports have set off alarm bells across the electronics industry, with speaker, wearable, and television manufacturers warning of looming shortages of permanent magnets. Production could grind to a halt unless supplies resume, industry executives and associations said.
Driving the news: Of the seven rare earth metals now under export curbs, terbium and dysprosium are essential for making neodymium-iron-boron (NdFeB) magnets.
These magnets are widely used in high-performance, portable and compact audio products.
They typically account for 5–7% of the bill of materials, and Indian electronics makers remain almost entirely dependent on Chinese imports, according to a white paper by the Electronics Industries Association of India (ELCINA).
Current state: China is holding back shipments of these magnets and related products at its ports, demanding end-use declarations before allowing export.
This has disrupted operations at speaker assembly units in India and caused delays in deliveries to local TV and audio brands, according to ELCINA.
To navigate the bottleneck, speaker manufacturers and importers have sought government help to secure end-use certificates, which Chinese exporters now require to obtain export licences, backed by full traceability documentation.
Tell me more: Alternative sourcing from Japan, Vietnam, or even recycled magnets within India comes at a steep cost. ELCINA's price analysis shows these options nearly double input costs, with supply remaining patchy and unreliable.
Also Read: G-7 eyes rare earth action plan as China's magnet control raises alarm
Groww looks to offer trading in corporate bonds, to apply for Sebi licence
(L-R) Harsh Jain, Neeraj Singh, Lalit Keshre and Ishan Bansal, founders, Groww
Online stockbroker Groww is planning to expand its mobile app to include trading in corporate bonds.
Driving the news: The Bengaluru-based firm plans to apply for an Online Bond Platform Provider (OBPP) licence, sources told us. While it already facilitates the primary sale of newly listed corporate bonds, it aims to offer secondary trading once it secures regulatory approval.
Significance: The OBPP licence will allow Groww to compete with platforms such as Wint Wealth and Grip Invest.
It also positions the company to tap into India's underpenetrated bond distribution market, where retail participation has been steadily growing.
That said, recent concerns around issuers like BluSmart have shaken confidence in the space.
Expansion bid: With an initial public offering (IPO) on the horizon, Groww is steadily diversifying beyond stockbroking.
It recently entered the credit space after receiving a non-banking finance company (NBFC) licence from the Reserve Bank of India (RBI).
The firm has expanded into wealth management with its acquisition of Fisdom and began offering margin trade funding to investors last year.
Background: In May, Groww confidentially filed its draft red herring prospectus with Sebi, aiming to raise between $700 million and $1 billion.
The company recently raised $250 million in a funding round led by GIC, which valued it at $6.5 billion. For FY25, it reported total revenue of Rs 4,056 crore and a net profit of Rs 1,819 crore.
Sponsor ETtech Top 5 & Morning Dispatch!
Why it matters: ETtech Top 5 and Morning Dispatch are must-reads for India's tech and business leaders, including startup founders, investors, policy makers, industry insiders and employees.
The opportunity: Reach a highly engaged audience of decision-makers.
Boost your brand's visibility among the tech-savvy community.
Custom sponsorship options to align with your brand's goals.
What's next: Interested? Reach out to us at spotlightpartner@timesinternet.in to explore sponsorship opportunities.
IT stocks slip up to 3.5% after Fed holds rates, flags persistent inflation
Indian IT stocks slipped in Thursday's trade after the US Federal Reserve kept interest rates unchanged, with LTIMindtree and Tech Mahindra leading the losses.
What happened: The Fed held its benchmark rate steady at 4.25% to 4.5%, citing ongoing inflation concerns and a cautious economic outlook. This marks the sixth consecutive meeting without a rate change. However, the latest 'dot plot'— a chart that reflects individual policymakers' forecasts—shows policymakers still expect two cuts in 2025.
Big losers: Here's how major IT firms reacted: LTIMindtree: Dropped 3.5% intraday, closed 1.6% lower.
Tech Mahindra: Fell nearly 3%, closed down about 2%.
The Nifty IT index slipped 1.4%.
Infosys also slipped, closing down about 0.1%.
Mid-sized firms, including Persistent Systems, Coforge, and Mphasis, declined between 1% and 2.6%.
Why this matters: The Fed's cautious stance raises uncertainty around US growth and inflation. For Indian IT firms, which derive significant revenue from US clients, this could dampen client spending and contract pipelines.
Explained: Sebi's new Esop norms for IPO-bound startup founders, reverse-flipping
The Securities and Exchange Board of India (Sebi) has approved several measures to ease doing business, including a long-awaited change for startup founders.
What's the news: The market regulator will allow startup founders to retain their employee stock options (Esops) even after their companies go public. Old rules: Founders were classified as 'promoters' at the time of initial public offering (IPO) filings, which barred them from holding or being granted Esops. If they held any, they had to liquidate them.
Founders were classified as 'promoters' at the time of initial public offering (IPO) filings, which barred them from holding or being granted Esops. If they held any, they had to liquidate them. New norms: Founders who received Esops at least one year before filing the draft red herring prospectus (DRHP) can now retain them post-listing.
Founders who received Esops at least one year before filing the draft red herring prospectus (DRHP) can now retain them post-listing. Flipback: Sebi will now also permit equity shares resulting from the conversion of Compulsorily Convertible Securities (CCS) to be included in an Offer for Sale (OFS), facilitating capital raising through public issues.
About time: Sebi has recognised past regulatory grey areas. Founders have long argued that the rules were unfair, often forcing them to exit early and miss out on long-term value creation.
Microsoft prepared to abandon high-stakes talks with OpenAI
OpenAI CEO Sam Altman with Microsoft CEO Satya Nadella
Microsoft is prepared to step back from 'high-stakes' talks with OpenAI over the future of their alliance, the Financial Times reported on Wednesday.
Driving the news: The tech giant is reportedly considering pausing negotiations if the parties cannot reach an agreement on key issues, including the size of Microsoft's future stake in OpenAI.
For now, Microsoft plans to lean on its existing commercial deal, which gives it access to OpenAI's technology through 2030, the FT report added.
Meanwhile: OpenAI executives have discussed accusing Microsoft of anticompetitive behaviour, the Wall Street Journal reported on Monday. The two companies are also renegotiating the terms of Microsoft's investment, including its future equity position in the AI firm.
Also Read: Microsoft planning thousands more job cuts aimed at salespeople
Updated On Jun 19, 2025, 07:25 PM IST
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Time of India
32 minutes ago
- Time of India
Showroom owners duped of Rs48L in bid to by scrap copper
Pune: An automobile showroom owner (30) from Satara Road filed a complaint with the Parvati police, stating that online fraudsters duped him of Rs 47.72 lakh between April and May by promising to sell him scrap copper. The victim is a resident of Satara Road. He stated that his partner wanted to buy large quantities of scrap copper. He conducted an online search for companies selling scrapped copper. An officer of the Parvati police said, "The complainant and his partner stumbled upon a link to a South Africa-based company. They contacted the company via email and put forth their requirement for the scrapped copper." You Can Also Check: Pune AQI | Weather in Pune | Bank Holidays in Pune | Public Holidays in Pune "The company officials responded to the mail, claiming that the company could fulfil the requirement," police said. According to the police, the company demanded a 30% advance amount from the victim. The company stated that the remaining 70% would be taken post-delivery. "The complainant and his partner liked the idea and decided to go ahead with the deal," police said. "The victims took the banking details of the company and transferred 30% amount—Rs 47.72 lakh—as an advance payment," police said. "After the payment, the material did not reach Pune or Mumbai. The suspects kept promising the delivery. The complainant and his partner then decided to investigate the company's background. They visited several business sites in South Africa and realised that no such company existed. They realised it was a fake company," police said.
Economic Times
32 minutes ago
- Economic Times
GPMI is coming: The new tech that could replace HDMI, DisplayPort, and Thunderbolt
Photo Credit - X: Md Atiquz Zaman A new tech called GPMI has been announced. GPMI stands for General Purpose Media Interface. It's a new type of cable that can do many things with just one wire – like sending video, audio, internet, and even power. GPMI was created by more than 50 Chinese tech companies. Some big companies involved are Hisense, Skyworth, TCL, and others. It could replace popular cables like HDMI, DisplayPort, and Thunderbolt in the future. GPMI can support 8K video, which means super high-quality pictures. It also helps reduce the number of cables needed when connecting devices, as stated by The Indian Express. Type-C GPMI cable – works with USB-C, supports 96 Gbps bandwidth and gives 240W of power. Type-B GPMI cable – uses a special connector, supports 192 Gbps bandwidth and gives 480W of power. Even though the Type-C GPMI is slower than Type-B, it's still more than twice as fast as regular USB4 ports, which usually offer 40 Gbps. So, GPMI is faster, more powerful, and more useful than the current tech like HDMI, DisplayPort, and USB, as mentioned by The Indian Express report. People in the tech world have mixed feelings about GPMI. Big hardware and software companies see that GPMI is powerful. Companies like Huawei and TCL are already using GPMI, showing they trust it. More big companies might start using GPMI soon, according to the report by Allianz Technologies. ALSO READ: Grey's Anatomy's Eric Dane reveals ALS fight — spot the early signs before it's too late China is playing a big role in creating and growing GPMI tech. Chinese companies want the world to start using GPMI. The Chinese government is supporting this move. They want to compete with technology from Western countries, as per the Allianz Technologies. Chinese tech companies are already putting GPMI into their devices. This could help GPMI become popular all over the world. Because of China's involvement, GPMI will likely be cheaper and easier to get. This means both normal people and businesses can use it easily. Big Chinese tech companies supporting GPMI makes it more likely to be used has a bright future but also some problems to solve. One big problem is getting many people and companies to use it. It might be hard to work with old devices and it could cost a lot to add GPMI, as stated by Allianz GPMI is good for new tech like AI, AR/VR, and gaming. It can handle better screen quality, faster speeds, and many devices at once. This makes GPMI ready for future technology needs, as per reports. Q1. What is GPMI?GPMI stands for General Purpose Media Interface. It's a new cable that can send video, audio, internet, and power using just one wire. Q2. Who created GPMI? GPMI was developed by over 50 Chinese tech companies, including Hisense, Skyworth, and TCL.
Economic Times
32 minutes ago
- Economic Times
Taiwan slaps anti-dumping duties on Chinese beer and steel to shield local industry
Taiwan's Ministry of Finance will impose anti-dumping duties on beer and hot-rolled steel from China for four months, starting next Thursday. This decision follows investigations that found these products were being dumped, causing substantial damage to Taiwan's domestic industry. Tariffs on Chinese beer will range from 13.13% to 64.14%, while steel tariffs will be either 16.9% or 20.15%. Tired of too many ads? Remove Ads Tired of too many ads? Remove Ads The Ministry of Finance announced that it will impose anti-dumping duties on beer and hot-rolled steel produced in China for four months starting next Thursday, citing "substantial damage" to Taiwan's industry, as reported by the Taipei to a statement from the finance ministry, both it and the Ministry of Economic Affairs "have tentatively concluded that these products are being dumped and that it has inflicted significant harm on the domestic industry." The finance ministry mentioned that the duties would be applied for four months to "protect our industry from ongoing damage during the investigation," as noted by the Taipei tariffs on Chinese beer will vary from 13.13 per cent to 64.14 per cent, while those for steel will be either 16.9 per cent or 20.15 per cent, the report indicated. In March, the finance ministry initiated anti-dumping investigations into Chinese beer and selected steel products following allegations of unfair currently has anti-dumping duties on ten products, with eight coming from China, its largest trading partner, according to official statistics. The ministry is also assessing whether the low prices of certain Chinese hot-rolled steel products, attributed to "long-standing overcapacity" in production, are negatively impacting domestic businesses, the finance ministry has emerged as the largest export market for Chinese beer brewers, who captured over 70 per cent of the local beer market in the first quarter of this year, according to DPP Legislator Hsu Fu-kuei. In the last five years, Chinese beer exporters have shipped over NT$16 billion (US$548.32 million) worth of products to Taiwan, according to suppliers have harmed local beer producers, and the outcome could be severe if the government fails to implement anti-dumping measures, he cautioned. DPP Legislator Chung Chia-pin reported that local beer firms have experienced a 20 per cent drop in market share, with a 15 per cent decrease in production, leading to a utilisation decline of about 30 per cent. He suggested that this indicates significantly adverse effects on the local beer companies' operations due to Chinese beer 70 per cent of the Taiwanese population reportedly backs the government's decision to impose anti-dumping taxes on Chinese beer manufacturers to maintain market order, as stated by DPP Legislator Kuo Kuo-wen, referencing an unnamed public opinion poll, as cited by the Taipei Times report.
