India

Capital / Liquidity

India Supreme Court Temporarily Extends Borrower Relief

By Editors | 11/09/2020

The extension gives the government two weeks to decide on whether to extend a loan moratorium for borrowers and whether an interest waiver is warranted.

Capital / Liquidity

RBI Issues Framework for Covid-related Loan Restructuring

By Editors | 09/09/2020

The framework sets out sector-specific floor and ceiling thresholds for five financial ratios that lenders mandatorily have to consider when restructuring loans.

Enforcement

India’s Enforcement Directorate Fines StanChart $13.6mn

By Editors | 08/09/2020

Standard Chartered escrow accounts were used in 2007 to transfer shares in Tamilnad Mercantile Bank to overseas investors without the RBI’s permission.

Securities / Derivatives

SEBI Revises Mutual Fund Side Pocketing Standards

By Sanday Chongo Kabange | 08/09/2020

Previously, only debt securities downgraded below investment grade can be side pocketed. Side pocketing will be allowed for even higher-rated debts that are restructured due to Covid-19.

Capital / Liquidity

RBI Issues Draft Rules on Variation Margin Exchange

By Manesh Samtani | 08/09/2020

The rules are applicable to India-regulated financial firms, IFSC banking units, and FPIs with non-cleared derivatives exceeding 500bn rupees.

Capital / Liquidity

RBI Issues Revised Priority Sector Lending Guidelines

By Editors | 07/09/2020

The new guidelines will boost credit availability for startups, renewable energy, health infrastructure, small farmers, and “identified districts” with low credit flows.

Capital / Liquidity

RBI Loosens Constraints on Banks’ Bond-buying Activities

By Editors | 06/09/2020

The move will provide banks additional liquidity to buy more government bonds and help calm investors who are nervous about a sudden spike in yields.

Securities / Derivatives

SEBI Asks Rating Agencies Not to Classify Restructured Debt as Default

By Editors | 06/09/2020

Credit rating agencies are asked not to consider debt restructured as a result of Covid-19 related stress as a default event.

Securities / Derivatives

India: New Cash Segment Margin Rules Take Effect

By Editors | 01/09/2020

India’s brokers association had asked for additional time for firms to implement system changes and address operational challenges. SEBI refused the request.