New norms are in place to strengthen regulations for this set of lenders which has been playing a critical role in Asia's third largest economy, notes Tamal Bandyopadhyay.
Do the non-banking finance companies have a role in hoarding and the resulting inflation?
The directive comes in the backdrop of concerns that some of corporates/entities may be hoarding foodgrains, which could have had the benefit of resources from NBFCs.
The Reserve Bank of India is expected to come out with comprehensive guidelines on the non-banking finance companies that are not involved in taking public deposits.
RBI's licensing norms require a bank to bring down promoter holding to 40 % within 3 years of operation - which, for Bandhan Bank, will be by Aug 23
The current episode highlights the structural vulnerabilities in the liquidity management practices of Indian NBFIs
Godhwani's exit comes at a time when the company's fund raising plans and proposed related party transactions are under scrutiny, says N Sundaresha Subramanian.
Karvy Computershare Pvt Ltd engaged in fraudulent activities with respect to certain initial public offerings in 2005, market regulator Sebi said.
With auditing under the scanner and two of the Big Four firms stopping non-audit services for audit clients, auditors will now be subjected to a more stringent standard of reporting.
Fintechs need to behave with responsibility and transparency. A lot of mis-selling has been happening. Other issues have been plaguing the fledgling industry -- high interest rates, even higher processing fees, harsh collection process and, most critically, data leakage leading to rampant frauds, points out Tamal Bandyopadhyay.
The company has kicked off sale of infrastructure assets as well as sale of a part of the promoter holding in Zee to repay loans.
The much awaited Credit Information Bureau (India) Ltd was launched on Wednesday with a database of 55 consumer credit records which would help creditors to evaluate risks, reduce incidence of defaults and non-performing assets.
Ponzi schemes have characteristics that the informed investor can spot easily.
the three investors that have submitted their final bids are not commercial banks. Among the three, one is a non-banking financial company. Another distinctive feature of the revival is that PMC may lose its cooperative bank characteristic after its reconstruction.
According to industry players, over 50 FMPs have exposure to Zee Group companies.
For the first time in our economic history a government has thought about more than 50 per cent of our economic activity instead of the five per cent represented by the Sensex companies, observes IIM-B professor R Vaidyanathan.
Funds parked by Indian individuals and firms in Swiss banks, including through India-based branches and other financial institutions, jumped to 2.55 billion Swiss francs (over Rs 20,700 crore) in 2020 on a sharp surge in holdings via securities and similar instruments, though customer deposits fell, annual data from Switzerland's central bank showed on Thursday. The increase in aggregate funds of Indian clients with Swiss banks, from 899 million Swiss francs (Rs 6,625 crore) at the end of 2019, reverses a two-year declining trend and has taken the figure to the highest level in 13 years. It stood at a record high of nearly 6.5 billion Swiss francs in 2006, after which it has been mostly on a downward path, except for a few years including in 2011, 2013 and 2017, as per the Swiss National Bank (SNB) data.
Members of Parliament, state legislatures, and local governments not eligible to be members of PSB boards
Criterion for corporates will effectively rule out entry for business houses.
The BJP MP said the guidelines for grant of licences were 'brazenly flouted'.
The disruptions caused by COVID-19 have more severely impacted small and mid-sized corporates, including NBFCs and MFIs, in terms of access to liquidity.
Twenty years after India's insurance sector was opened up, unshackling the control of state-owned companies, as many as 50 private players have set up shop. Along with their foreign partners, private players have brought about a sea change in the product offering, distribution and underwriting processes, and services levels. Yet, India's insurance penetration needle has not moved much.
It is, thus, logical that some compensation is paid to a lender, especially when a customer is poached within two years, Parekh noted.
If indeed the gate opens for big industrial houses, the RBI needs to be smarter than them and demonstrate it through action, not reaction, observes Tamal Bandyopadhyay.
In the past two months alone, four companies have garnered a cumulative Rs 22,400 crore via this route.
'India-China economic ties are likely to take a hit in the wake of the new situation, but that also provides India with a new opportunity to strengthen its manufacturing base,' points out Dr Rajaram Panda.
this move by the government is likely to iron out the current challenges for the NBFCs and in turn help the real estate sector.
Mired in corruption, politics and with a history of suicides by its hapless depositors, PMC Bank's revival is a challenge very different from Yes Bank and LVB, both for the regulator and the rescuer, observes Tamal Bandyopadhyay.
Swiss authorities have always maintained that assets held by Indian residents in Switzerland cannot be considered as 'black money' and they actively support India in its fight against tax fraud and evasion.
In his first comments after resigning as RBI governor on December 10 last year amid sharp differences with the government, Patel said banks indulged in over-lending, while the government did not "fully play" its role, and also conceded that the regulator should have acted earlier.
The move comes against the backdrop of rising instances of people getting duped by illicit money pooling activities
The Reserve Bank of India (RBI) on Thursday paved the way for niche banking by issuing draft guidelines for setting up payment banks and small banks.
Sebi, however, allowed wilful defaulters to make counter-offers to avoid hostile takeovers
In advanced economies where the financial system is more matured, the form of shadow banking is more of risk transformation through securitisation.
Collection dived to 75-80% in November-December from 99% after demonetisation.
The Ministry of Corporate Affairs had taken various steps to protect small investors.
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