💰You can't withdraw your PF! | 💊Why is Zantac still selling in Indian markets?

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Market Watch

🔺Indian markets rebounded for the week—Sensex rose 759 points to 79,802.79 and Nifty gained 217 points to 24,131.10.

🔺Sectorally, all indices except realty and PSU banks ended in the green, led by auto, energy, pharma, and media, up 1-2%. Midcap and Smallcap indices rose 0.3% and 0.7%, respectively.

ICYMI

🤳Finally! Australia passes world-first social media ban for under-16s, tech companies put on notice.

👑 Nearly a week after the results were announced in Maharashtra, Mahayuti which won a landslide has not formed the government in the state. Eknath Shinde has decamped.

🏏Tejashwi Yadav suggests India play in Pakistan for the ICC Champions Trophy while taking a jab at PM Modi over biryani diplomacy.

❌Raj Kundra’s residence was raided by the ED in connection with an ongoing investigation into a pornographic content case.

🚔Navjot Singh Sidhu receives an ₹850 crore legal notice, adding to his troubles.

🎓✈️US universities warn students to return before Trump’s potential re-election.

📑India has served a $1.4 billion tax evasion notice to Volkswagen, accusing it of underpaying import duties by misclassifying car components.

➕✖️➗ Ed Sheeran announces India tour in 2025

💰You can't withdraw your PF!

The Employees' Provident Fund Organisation (EPFO) recently reported that, as of November 26, reported that 21.59% of claims were either rejected or returned. This is one of the systems where mandatory deductions are easy, but withdrawals are overly complex.

Firstly, what is the Employees' Provident Fund Organisation (EPFO)?

EPFO portal was responding to multiple articles (1, 2) highlighting a significant increase in the rejection rate of final Employees' Provident Fund claims, rising from 13% in 2017-18 to nearly 34% in 2022-23.

• The surge in rejections is attributed to the shift to an online system for processing claims, leading to issues such as data mismatches and KYC-related problems.

1 in 3 EPFO claims rejected: Many users reported rejections due to "multiple member IDs for the same bank account," despite submitting Aadhaar and cancelled cheque copies.

• Akashkumar Vaid who works as an office assistant has been trying to withdraw his PF for the last year but faced four rejections—citing the same reason ⬇️ without suggesting a way to resolve the issue.

• One user recounted facing 12 rejections over four years for the same claim, even after filing physical claims.

What happens when you take it offline? Possible corruption. In November 2024, the CBI arrested two EPFO officers in Himachal Pradesh's Solan for allegedly taking a ₹10 lakh bribe to settle a provident fund demand.

• Adding to the inefficiencies, over ₹8,505 crore remains unclaimed across 21.55 lakh inoperative EPF accounts as of FY24, as highlighted by Ravisutanjani. These systemic challenges underscore growing dissatisfaction among contributors who struggle to access their hard-earned savings.

Clip du jour

Putin apologised to ex-German Chancellor Angela Merkel over a 2007 incident when he brought his black Labrador, Konni, to a meeting with Merkel, unaware of her fear of dogs ⬇️

💊Why is Zantac still selling in Indian markets?

The ongoing sale of Ranitidine in India, despite international bans due to cancer risks, raises serious regulatory concerns.

What is this issue? Ranitidine, commonly known by the brand name Zantac, has the presence of N-nitrosodimethylamine (NDMA), a probable carcinogen. It is commonly used to treat heartburn or acid reflux.

• Alternatives like famotidine, cimetidine, and omeprazole are widely available for treatment.

Who has acted against it? The United States Food and Drug Administration (FDA) and the European Medicines Agency (EMA) banned Ranitidine sales in 2020 due to the molecule’s instability, which causes NDMA formation.

• GSK, a British multinational pharma company, withdrew Ranitidine from the Indian market in 2020, but other manufacturers in India continue production and sales. GSK settled a $2.2 billion lawsuit in the US over Ranitidine's carcinogenic risks, containing high NDMA, a known carcinogen.

Who is not? Despite awareness since 2021, India's Ministry of Health has not banned Ranitidine or enforced stricter quality controls.

• The Indian Pharmacopeia Commission has not established or enforced NDMA impurity standards for Ranitidine.

What’s happening | GDP slowdown

India's GDP growth decreased to 5.4% in the July-September quarter, from 6.7% in the April-June quarter, according to the National Statistics Office.

• Real GVA growth was 5.6%, down from 7.7% in the same quarter of the previous year.

Hi, I’m Sai Deepthi, the editor of this newsletter. I’d love to hear some feedback on the newsletter. WhatsApp me directly and tell me what you think.