India

Securities / Derivatives

SEBI Revises Haircuts on G-Secs Used as Stock Trading Collateral

By Editors | 22/02/2019

Following feedback from clearing corporations, there will now be three haircut slabs depending on the type and tenure of government securities.

Capital / Liquidity

India Infuses $6.8bn into 12 Public Sector Banks

By Editors | 21/02/2019

The Indian government has approved capital infusions into 12 public sector banks amounting to $6.8bn as part of its bank recapitalisation plan.

RBI to Pay $3.9bn Interim Dividend to Government

By Editors | 19/02/2019

India’s central bank will pay a $3.9bn interim dividend to the government amid pressures to transfer its surplus reserves.

Market Infrastructure

RBI Consults on New Requirements for Benchmark Administrators

By Editors | 18/02/2019

The draft directions under consultation include requirements related to administrators’ minimum net worth, governance arrangements, and organisational structure, among other requirements.

Securities / Derivatives

India Lifts Corporate Bond Investment Cap for FPIs

By Editors | 17/02/2019

The 20% cap limiting exposures to a single corporate entity was aimed at incentivising FPIs to maintain a portfolio of assets, but market feedback indicates it has instead had a contraining effect.

Enforcement

UPDATED – Multiple Indian Banks Penalised for Rule Violations

By Editors | 13/02/2019

The latest penalties involve banks’ non-compliance with RBI directions on the monitoring of borrowers’ end use of loan funds, as well as failures related to KYC/AML compliance.

Securities / Derivatives

SEBI Proposes Caps to Curb Volatility in Futures, Options

By Editors | 13/02/2019

Among the measures proposed is a circuit breaker capping maximum daily movements at 20 percent for all stocks, including those on which derivatives trading is available.

Market Infrastructure

RBI Eyes Holding Company Model for India’s Banks

By Editors | 11/02/2019

The RBI wants banks to operate as subsidiaries of financial holding companies, with other business arms also split off into separate subsidiaries.

Securities / Derivatives

SEBI to Move Volatile Equity Derivatives to Physical Settlement

By Editors | 11/02/2019

Equities derivatives with heightened volatility will see an earlier than expected move to mandatory physical settlement, SEBI’s latest effort to reduce speculation and volatility.