Trump Names David Sacks White House AI & Crypto Czar

Donald Trump has appointed David Sacks, a former PayPal executive and tech entrepreneur, as the White House AI and Crypto Czar. Sacks, a key figure in the tech world and part of the "PayPal Mafia," will shape policies on artificial intelligence and cryptocurrency. With a background in leading ventures like Craft Ventures and PayPal, Sacks is known for supporting cryptocurrency, particularly praising Bitcoin's impact on the internet's evolution. Interestingly, Sacks was involved in Musk's removal from PayPal over two decades ago. Despite their past, both Sacks and Musk, now appointed by Trump for roles in the administration, bring valuable expertise to guide the country in technology and government efficiency. Trump's choice in appointing Sacks reflects a strategic move to bolster American competitiveness in crucial technological realms. Sacks is poised to uphold the U.S.'s position in AI and cryptocurrency while focusing on online free speech, addressing tech companies' biases, and overseeing a White House science and technology advisory council. His appointment signals a significant step towards leveraging tech expertise in shaping national policies.

IndusInd Bank, a private sector lender in India, has announced plans to raise up to $3.47 billion. This move comes as the bank aims to regain trust following a $230 million accounting error. The bank is seeking to secure 300 billion rupees in funding through a debt issue and a capital increase. The accounting error resulted in a significant impact on the bank's net worth for the fiscal year, leading to the resignation of the CEO and deputy CEO in April. The Hinduja family, which owns a substantial stake in the bank, has been allowed to nominate two directors to IndusInd's board. Promoters, including the Hindujas, previously did not have representation on the board. The bank, currently managed by an executive committee, is in the process of selecting a new CEO from three senior bankers, with the appointment expected before the release of first-quarter results on July 28. The decision to allow promoters to nominate board directors was approved by India's central bank, signaling a move towards greater transparency and corporate governance within the bank. This strategic move aims to strengthen oversight and decision-making processes within IndusInd Bank, paving the way for a new chapter in its leadership structure.

The Enforcement Directorate (ED) has initiated legal action against the popular Indian fashion e-commerce company, Myntra, and its affiliates for alleged violations of Foreign Direct Investment (FDI) regulations totaling Rs 1,654.35 crore. The ED's investigation revealed that Myntra, under the guise of a wholesale model, was purportedly engaged in Multi-Brand Retail Trading (MBRT), contrary to India's FDI policy. The probe found that Myntra had received significant FDI funds on the pretext of operating as a wholesale business. However, a substantial portion of goods were sold to a related company, Vector E-Commerce Pvt. Ltd., which then distributed the products to end consumers. This intricate arrangement bypassed the restrictions on multi-brand retailing under FDI norms. Furthermore, Myntra was found to have breached the permissible limit of selling only 25% of its goods to related group companies as stipulated in FDI policy amendments from 2010. The deliberate structuring of transactions to facilitate B2B sales followed by B2C retailing raised serious concerns regarding compliance with regulations. The case underscores heightened regulatory scrutiny in the e-commerce sector concerning adherence to FDI guidelines. Myntra, in response, reiterated its commitment to upholding all applicable laws and operating with integrity. The company emphasized its role in promoting India's textile and apparel industry through digital commerce and fostering opportunities for local artisans and businesses. The ED's action highlights the importance of compliance with FDI regulations in the rapidly evolving e-commerce landscape. As investigations progress, industry players are expected to ensure strict adherence to regulatory frameworks to avoid legal repercussions.

US cleaning product giant Clorox has filed a $380 million lawsuit against IT services provider Cognizant for allegedly handing over network passwords to cybercriminals. The lawsuit reveals recorded conversations showing how attackers obtained access to Clorox's network with basic social engineering tactics rather than sophisticated hacking techniques. The cybercriminal group Scattered Spider targeted Clorox in 2023 by tricking Cognizant's helpdesk into providing credentials without verification. The attackers successfully reset passwords, multi-factor authentication, and made phone number changes for SMS authentication without any proper authentication. Despite Clorox providing specific procedures to prevent such attacks, the lawsuit claims Cognizant staff failed to follow security protocols. The breach led to extensive damages totaling $380 million, including disruptions to production and operations. Clorox asserts that Cognizant's negligence extended to the incident response, causing further delays and errors in mitigating the cyberattack. The lawsuit highlights the importance of stringent verification processes and operational requirements in IT outsourcing contracts to prevent such incidents. The legal filing includes claims of breach of contract, breach of good faith, gross negligence, and intentional misrepresentation against Cognizant. The lawsuit may have significant implications for how enterprises handle breach response, liability, and resilience planning in outsourced IT services. The case serves as a cautionary tale for organizations to prioritize human verification processes in addition to technical security controls. It underscores the need for robust contractual agreements to ensure service providers comply with security standards and protocols to mitigate cyber risks effectively. Clorox's lawsuit signals a shift in how enterprises approach cybersecurity in outsourced services and underscores the critical need for enhanced oversight and accountability in vendor relationships to protect against cyber threats.

During the financial year 2024-25, taxpayers selling capital assets like property or jewelry are subject to the capital gains tax at a rate of 12.5% for both financial and non-financial assets. Different holding periods determine if an asset is classified as long-term or short-term. Listed financial assets must be held for over a year, while unlisted financial assets and all non-financial assets require a minimum two-year holding period to be considered long-term. There are exemptions and specific tax rates for different types of assets. An exemption of ₹1.25 lakh is available for certain listed financial assets, while unlisted bonds, debentures, debt mutual funds, and market-linked debentures are taxed based on the individual's tax slab. Short-term capital gains are taxed at a rate of 20%. The new provisions for capital gains tax came into effect on July 23, 2024. The holding period requirements have been simplified to one year for listed securities and two years for all other assets. Taxpayers can claim exemptions by reinvesting gains in residential properties or bonds under specific sections of the law. CA Chirag Chauhan advises taxpayers to be aware of investment rules and caps on exemptions. Regarding debt mutual funds, a change in tax treatment occurred from April 1, 2023. Gains from selling debt mutual funds are now considered regular income and taxed based on the individual's slab rate. The benefits of indexation for long-term holdings have been removed, and the distinction between short-term and long-term gains no longer exists for debt funds under the new regime. Equity-oriented funds still enjoy special tax rates, while old tax rules apply for debt mutual funds bought before April 2023 and sold during FY 2024-25 if held for over three years. For units purchased post-April 2023, the new tax rules apply, where entire profits are added to total income and taxed as per applicable slab rates. When reporting debt mutual funds in ITR-2 and ITR-3, gains are categorized under "Capital Gains" and require detailed asset-specific information. It is advisable to consult a financial advisor for accurate tax calculations and compliance.

A once prosperous beauty products company, The Good Glamm Group, has collapsed, leaving unpaid vendors and employees in its wake. The company's brands will now be sold individually by lenders to recoup losses. The downfall of Good Glamm, known for acquisitions like POPxo and BabyChakra, can be attributed to financial strains stemming from its ambitious expansion strategy. Several investors resigned from the board and key brands were sold off at reduced valuations. The firm, valued at over $1 billion in 2021, struggled with liquidity, leading to layoffs and decreased marketing efforts. Similar to other well-funded startups, such as Dunzo and Byju’s, Good Glamm faced insurmountable challenges despite impressive revenue growth. Founder Darpan Sanghvi has pledged personal funds to repay employees and vendors, striving to make amends for the company's demise.

Akasa Air is set to undergo significant growth in the coming years, aiming to expand its fleet from 30 to 226 aircraft by 2032. The Chief Financial Officer, Ankur Goel, stated that the airline anticipates a yearly increase in available seat kilometers by over 30%, building on the 50% growth from the previous year. Despite facing challenges with delayed deliveries from Boeing, Akasa Air remains optimistic about its expansion plans. The Mumbai-based low-cost carrier has ordered 226 Boeing 737 MAX aircraft, with deliveries previously impacted by regulatory issues and a workers' strike. Akasa Air's revenue saw a substantial increase in the previous fiscal year, reaching $356 million, although the loss widened to $194 million. The airline holds a 5.3% domestic market share, competing with leaders like IndiGo and Air India Group. With the recent infusion of capital from prominent investors like Azim Premji and Rakesh Jhunjhunwala's family, Akasa Air is poised for growth and aims to enhance its market presence. The airline's strategic approach to cost leadership and expansion plans reflect its goal of achieving operational profitability in the near future. The airline's CFO highlighted the improved financial performance, emphasizing the efficient execution of their business strategy. As Akasa Air continues to enhance its cost structure and commercial operations, it remains optimistic about its future prospects in the dynamic aviation industry.