India In-Focus – Xiaomi India Appoints New Managing Director; tech firms slam Indian cybersecurity rules
MUMBAI (Reuters) – A late selling spree at automakers and banks sent India’s blue-chip stock indexes tumbling from their four-week highs and back into negative territory on Friday, though strength in tech stocks Information and Reliance Industries helped limit the decline.
The NSE Nifty 50 index closed down 0.26% at 16,584.3, while the S&P BSE Sensex slid 0.09% to 55,769.23. All the same, the indexes recorded their third consecutive week of growth, with gains of about 1.5% each.
Shares of Reliance Industries, India’s most valuable company, climbed 2% and were among the biggest risers on the indices.
Shares of UltraTech Cement fell 5.5% after the company announced it would spend $1.66 billion to boost capacity as it seeks to avoid competition from the sector’s newest entrant, Adani Group.
Xiaomi India appoints new CEO
The Indian unit of Chinese smartphone maker Xiaomi Corp. announced on Friday that it had named founding member Alvin Tse as chief executive, a changing of the guard as the company faces government scrutiny of its business practices.
Tse, a British national who was also the former general manager of Xiaomi Indonesia, helped the company expand into many global markets, Xiaomi India said.
The organizational reshuffle will also allow Anuj Sharma to join the company as Chief Marketing Officer.
The development comes nearly two months after India’s federal financial crime agency summoned former Xiaomi India chief Manu Kumar Jain in an investigation into whether the company’s business practices complied with laws. exchange rates, two sources told Reuters.
Indian cyber rules criticized
India’s cybersecurity rules due to come into effect later this month will create an “environment of fear rather than trust”, the government has warned a body representing top tech companies, calling for a one-month delay. year before the rules come into force.
The Internet and Mobile Association of India, also known as IAMAI, which represents companies such as Facebook, Google and Reliance, wrote to India’s Ministry of Information Technology this week to criticize a directive on cybersecurity announced in April.
Among other changes, India’s Computer Emergency Response Team Directive requires technology companies to report data breaches within six hours of becoming aware of such incidents and to retain computer and communications logs for six months.
In the letter seen by Reuters, IAMAI offered to extend the six-hour window, noting that the global standard for reporting cybersecurity incidents is generally 72 hours.
CERT, which falls under the Department of IT, has also asked cloud service providers such as Amazon and virtual private network companies to retain customer names and IP addresses for at least five years, even after have ceased to use the company’s services.
(Contributed by Reuters)