1. SEBI Tightens Regulations for Mutual Funds to Safeguard Investors
The markets regulator on Thursday, 28 June, tightened investment norms for liquid mutual funds to protect investors from credit risks arising out of defaults by borrowers.
The Securities and Exchange Board of India (SEBI) said liquid funds can invest a maximum of 20 percent of their assets in a single sector as against the current cap of 25 percent, and must keep aside at least a fifth of their assets in cash equivalents to meet sudden redemption pressures.
Liquid funds are debt mutual funds that can invest in securities up to a maturity of 91 days.
(Source: LiveMint)
2. Ahead of Meeting with Modi, Trump Asks India to Withdraw High Duties
US President Donald Trump on Thursday demanded India withdraw retaliatory tariffs imposed by New Delhi this month, calling the duties “unacceptable” in a stern message that signals trade ties between the two countries are fast deteriorating.
India slapped higher duties on 28 US products after the United States withdrew tariff-free entry for certain Indian goods.
Washington is also upset with New Delhi’s plans to restrict cross-border data flows and impose stricter rules on e-commerce that hurt US firms operating in India.
(Source: Business Standard)
3. Govt Clarifies Still Planning to Go Ahead with Disinvestment of Air India
India clarified on Thursday that plans to sell debt-laden state-run carrier Air India were still on track, hours after a junior minister told parliament the privatisation was on hold because of high oil prices and volatile exchange rates.
India failed last year in its attempt to sell a 76 percent stake in loss-making Air India due to a lack of interest from bidders, but said it would return with an alternative proposal soon.
The government injected ₹3,975 crore into the airline in the fiscal year that ended 31 March and hived off some debt and the Ministry of Civil Aviation said on Thursday that the carrier was ready for sale.
(Source: LiveMint)
4. Indians' Money in Swiss Banks Falls, Hits Second-Lowest Level in Two Decades
Money parked by Indian individuals and enterprises in Swiss banks, including through India-based branches, fell by nearly six percent in 2018 to 955 million Swiss francs (about ₹6,757 crore) to hit its second-lowest level in over two decades, Swiss National Bank data showed Thursday.
Aggregate funds of all foreign clients of Swiss banks also fell by over four percent to CHF 1.4 trillion (nearly ₹99 lakh crore) in 2018, as per the annual banking statistics released by the Zurich-based central banking authority of Switzerland.
(Source: PTI)
5. Failure of Large HFCs Similar to Bank Collapse, Says RBI Report
India’s financial system remains stable due to the improved resilience of the banking sector, but from a contagion risk perspective, if a large housing finance company (HFC) fails, it would impact as much as the failure of a large bank, the Reserve Bank of India (RBI) said in a report on Thursday.
The bi-annual financial stability report noted that the recent pressure faced by non-banking financial companies (NBFCs) had brought in greater discipline to the sector. The report also pointed out stress in the retail lending segment and suggested exercising caution.
(Source: Business Standard)
6. Finance Ministry Tells State-Run Banks to Shore up Credit to MSMEs
he finance ministry has told the chief executives of all public sector banks (PSBs) to review credit facilities made available to micro, small and medium enterprises (MSMEs) and take ‘corrective’ measures to ensure the firms get adequate funds.
The finance ministry has told the PSB chief executives in an official communication to assign a chief general manager, or a general manager-level officer to “do an in-depth analysis of the progress made and issues in availability of credit, still being faced by the MSMEs”.
(Source: Business Standard)
7. India's Axis Bank Considers a $1.3 Billion Share Sale
Axis Bank Ltd. is considering raising at least $1.3 billion through a share sale to institutional investors, people with knowledge of the matter said, as the Indian lender seeks to bolster capital ratios and expand lending capacity.
India’s third-largest private sector lender, led by Chief Executive Officer Amitabh Chaudhry, is talking to potential advisers about the fundraising, according to the people. The bank plans to seek board approval for the sale as early as next month, the people said, asking not to be identified as the information is private.
(Source: BloombergQuint)
8. Godrej Family, Locked in a Dispute over Land, Seeks External Advice
The Godrej family has sought advice from external partners to help rework a pact related to landholdings of group companies, Adi Godrej, chairman of the Godrej Group and Jamshyd Godrej, chairman of Godrej and Boyce, said in a joint statement on Thursday.
The statement follows reports that differences had cropped up between the cousins over an existing agreement between Godrej and Boyce and Godrej Properties Ltd for joint development of land held by the former, according to several newspaper reports on Thursday. Revenue sharing is a part of this agreement.
(Source: LiveMint)
9. Buffett-Backed BYD in Advanced Talks to Develop, Make EVs in India
Warren Buffett-backed BYD Auto Co Ltd, China’s biggest electric carmaker, is set to make a significant investment in India to develop and produce electric vehicles, said two people familiar with the matter.
BYD is expected to unveil its investment plans by the end of 2019 or in early 2020, said the two people cited above who declined to be named.
The company is in advanced talks with its Indian partner, Olectra Greentech Ltd, to either form an equity joint venture or invest in a stand-alone entity in the country, the two people said.
(Source: LiveMint)
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