Episode Details

Welcome to Top of the Morning by Mint, your weekday newscast that brings you five major stories from the world of business.

It's Tuesday, February 18th, 2025. This is Nelson John, let's get started.

Japan’s KYB Corporation has sold its 51% stake in the joint venture KYB Conmat Pvt. Ltd., transferring full ownership back to India’s Conmat Group, led by Premraj Keshyep. Established in 2013, this partnership combined KYB’s advanced technology with Conmat’s local expertise to produce concrete construction equipment like transit mixers, batching plants, and concrete pumps. Over the past decade, the company has grown significantly, increasing its revenue sixfold. With KYB’s exit, Conmat plans to expand further by developing electric and AI-driven machinery and diversifying into earthmoving equipment. The Indian concrete construction equipment market is projected to grow from ₹88 billion to approximately ₹230 billion in the next four years, driven by infrastructure development and urbanization. Conmat aims to capitalize on this growth, targeting a revenue of over ₹10 billion within two years, up from the current ₹3.3 billion, reports Priyamvada C. Additionally, KYB has granted Conmat a non-exclusive license to continue using its transit mixer technology, allowing the company to manufacture and sell existing products both domestically and internationally.

In a recent development, the Indian government has assured the Bombay High Court that it will not halt Skoda Auto Volkswagen India’s shipments amid an ongoing $1.4 billion import tax dispute. The controversy centers on the classification of imported car parts. Authorities allege that Skoda misclassified these parts to benefit from lower customs duties, importing them as individual components rather than as completely knocked down (CKD) units, which attract higher taxes. Skoda contends that it has consistently used its global NADIN software for production planning, a practice it claims is standard in the automotive industry and not intended to circumvent tax laws. The company has sought legal intervention to challenge the tax demand and prevent any disruption to its operations. The court has scheduled further hearings to delve deeper into the matter. 

As of January 31, 2025, Indian investors have left approximately ₹323 crore in funds and ₹182 crore in securities unclaimed, totaling about ₹500 crore. To address this, the Securities and Exchange Board of India (Sebi) has proposed new guidelines to ensure these unclaimed assets are promptly returned to their rightful owners and safeguarded against misuse.

What Are ‘Unclaimed’ Assets?

Unclaimed assets refer to funds or securities in a client’s brokerage account that cannot be transferred back to their bank or demat account due to issues like inactive accounts or incorrect details. If a broker cannot return these assets and cannot reach the client, the account is labeled as ‘unclaimed.’

Sebi’s Proposed Process:

1. Immediate Action by Brokers: Brokers must attempt to return unutilized funds to the client’s bank account regularly. For inactive accounts (no activity for 30 days), funds should be returned during the monthly settlement on the first Friday of each month. Active accounts should have funds returned monthly or quarterly, based on the client’s preference.

2. Handling Unclaimed Securities: Securities bought but not transferred to the client’s demat account due to issues should be flagged. If unresolved for seven days, brokers must pledge these securities to the stock exchange’s demat account.

3. Efforts to Locate Clients: Brokers are required to make at least six attempts to contact the client before transferring unclaimed assets to the stock exchange. If the client is deceased, efforts should be made to contact nominees or legal heirs.

4. Role of Stock Exchanges: Once assets are transferred, exchanges must try to locate cl