The Securities and Exchange Board of India (SEBI) has introduced stricter regulations regarding associations between registered market participants and unregistered financial influencers. These measures aim to safeguard investors from misleading advice and unwarranted claims of guaranteed returns. SEBI’s new guidelines place clear restrictions on how regulated entities engage with influencers, directly or indirectly. Prohibition on …
As the world comes to a halt with the outbreak of the global Coronavirus pandemic, International credit rating institutions and research analysts such as Moody’s and Fitch have constantly cut the projected growth of India for 2020. Moody’s lowered India’s GDP growth outlook to a staggering 2.5% from 5.3% and Fitch has reduced the rate …
On Thursday, the surplus funds with the banks suddenly dropped, which took the overnight call rate to the highest in 21 months. This is because the sudden drop in surplus funds forced banks to urgently borrow funds for the short term to meet their requirements. The excess funds with banks were at Rs 6.06 lakh …
The RBI Monetary policy was announced on April 06th under fairly mixed circumstances. A lot has changed in the last few months since the demonetization exercise was first undertaken. To begin with, while demonetization did impact growth, the impact was nowhere close to what the pessimists were expecting. On the other hand, it had the …
There was actually little surprise in the markets when the Monetary Policy Committee (MPC) finally announced a 25 basis points cut in the monetary policy announcement on 2nd August. The debate among traders and economists was more around whether the actual rate cut would be 25 basis points or 50 basis points. In fact, the …
An Overview At its bi-monthly monetary policy meeting on Friday, India’s central bank may leave its benchmark rates unchanged while laying out a plan to raise the reverse repo rate, mirroring the measured approach Mint Road’s counterparts on both sides of the Atlantic are taking to re-acclimate their economies to normal liquidity flows. According to …
Let us see what repo and reverse repo rates are and how they affect the economy. Banks charge interest rates on loans and pay interest on deposits. These interest rates are influenced by the rate at which funds change hands between the central bank, i.e., the Reserve Bank of India (RBI) and banks. The rates …
In his speech in the morning of 5th August 2022, RBI Governor Shaktikanta Das addressed the media on the decisions taken by the Monetary Policy Committee (MPC), including the decision to hike the repo rate to its highest since August of 2019 ie. the pre-pandemic era. His speech indicated both the acknowledgement of the global …
Inflation Despite concerns surrounding volatile food prices and fluctuating oil costs, the RBI maintains its inflation projection for the fiscal year at 5.4%. However, the elusive 4% target remains unmet, as RBI Governor Shaktikanta Das acknowledges the persistent dance of headline inflation. Economic Growth Painting a broader picture, the anticipated GDP growth for FY24 stands …
The capital market regulator, the Securities and Exchange Board of India (SEBI) has released a new proposal to promote the dematerialisation (demat) of securities. Under the new proposal, all the listed companies are required to issue securities exclusively in demat form following corporate actions such as stock splits, share face value consolidations, mergers, or demergers. …
