Large NBFCs

Large NBFCs must be subjected to regulation; exactly like banks RBI Deputy Governor Rajeshwar Rao was in the news recently for suggesting in a speech that large NBFCs should be regulated in the same way as banks. In fact, Rao went a step ahead to suggest that NBFCs above certain threshold AUM should either convert…

IMF Outlook

India needs to really engage itself with the per capita challenge The IMF World Economic Outlook which was presented this month has some major takeaways for all the economies. But three things really stand out from the perspective of India. Firstly, there is the comparison with China. Secondly, there is the uncertainty over supply chains.…

IPO Story

Some IPOs are doing better and there is a method to the madness Initial Public Offerings (IPOs) collected Rs.7500 crore in the month of Sep-20. As of September end, IPOs garnered more than Rs.22,000 crore during the year. If things go well, this could end up being the best IPO year after 2017; not counting…

Personal bankruptcy

The RCOM-SBI case could be an acid test for the new rules In December 2019, the government brought personal bankruptcy under the ambit of NCLT. That meant; in the event of business bankruptcy, the NCLT can initiate personal bankruptcy against the promoter, if they have guaranteed a loan. The first test case appeared in the…

EPFO Losses

Despite the setback, the EPFO must persist with equities Employee Provident Fund Organization (EPFO) has decided to pay only 8.15% out of the 8.50% interest committed by the government for FY2019-20. The balance will be paid by December 2020 subject to equity surplus available with the EPFO corpus. This rate was already the lowest paid…

Multi-Cap Funds

New SEBI rules were necessary, but would they be workable? On 11 September, SEBI announced key changes to the design and composition of multi-cap funds. These funds give the investors exposure across large caps, mid caps and small caps. What are the key changes made and what were the triggers for these changes? What SEBI…