Bank/NBFCs News

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01/11/2022

*📗BANKING*
*& FINANCIAL NEWS UPDATES📗*
*📚DT.01.11.2022📚*

🎯OPERATIONALISATION OF CENTRAL BANK DIGITAL CURRENCY-WHOLESALE (E₹-W) PILOT: RBI vide Press Release dated October 7, 2022 had announced that the Reserve Bank will soon commence pilot launches of Digital Rupee (e₹) for specific use cases. Accordingly, the first pilot in the Digital Rupee - Wholesale segment (e₹-W) shall commence on November 1, 2022.The use case for this pilot is settlement of secondary market transactions in government securities. Use of e₹-W is expected to make the inter-bank market more efficient. Settlement in central bank money would reduce transaction costs by pre-empting the need for settlement guarantee infrastructure or for collateral to mitigate settlement risk. Nine banks, viz., State Bank of India, Bank of Baroda, Union Bank of India, HDFC Bank, ICICI Bank, Kotak Mahindra Bank, Yes Bank, IDFC First Bank and HSBC have been identified for participation in the pilot.The first pilot in Digital Rupee - Retail segment (e₹-R) is planned for launch within a month.
(RBI Press Release)

🎯RBI IMPOSES MONETARY PENALTY ON VAKRANGEE LIMITED: The Reserve Bank of India (RBI) has imposed a monetary penalty of ₹1,76,00,000 (Rupees One Crore and Seventy Six Lakh only) on Vakrangee Limited (the entity) for non-compliance with certain provisions of the White Label ATM (WLA) directions. The penalty has been imposed in exercise of powers vested in RBI under Section 30 of the Payment and Settlement Systems Act, 2007 (PSS Act). This action is based on deficiencies in regulatory compliance and is not intended to pronounce upon the validity of any transaction or agreement entered into by the entity with its customers.
(RBI Press Release)

🎯RBI DISCUSSES 50 YEARS’ JOURNEY OF BASIC STATISTICAL RETURNS AT THE BSR@50 CONFERENCE: The Reserve Bank organised the BSR@50 Conference on October 28, 2022 to discuss the role of Basic Statistical Returns (BSR) system in supporting the expanse of the Indian banking system and financial inclusion policies during the last 50 years (1972-2022) and reflect on the way forward. The participants included officers of the Reserve Bank, representatives of major commercial banks, including their Chief Compliance Officers, and select ex-officials who contributed to the BSR system in the past.
(RBI Press Release)

🎯CENTRE'S FISCAL DEFICIT WIDENS TO RS 6.20 LAKH CRORE IN APRIL-SEPTEMBER: The Central government's fiscal deficit widened to Rs 6.20 lakh crore in April-September, accounting for 37.3 percent of the full-year target, data released on October 31 by the Controller General of Accounts showed. The Centre is targeting a fiscal deficit of Rs 16.61 lakh crore for FY23, or 6.4 percent of GDP.
(Moneycontrol)

🎯CORE SECTORS' GROWTH QUICKENS TO 7.9% IN SEPTEMBER: India's eight core sectors grew 7.9 percent in September, quickening from an upwardly revised 4.1 percent in August, the commerce ministry said on October 31. Output in six of the eight core sectors grew in September. These sectors include coal, refinery products, electricity, fertilisers, cement and steel, said the ministry. For the financial year 2022-23, the central bank has cut its projection of gross domestic product growth to 7 percent from the 7.2 percent earlier estimated. While India’s economy is expected to be the fastest-growing major economy this year, the recovery faces headwinds such as a looming global slowdown, quick monetary tightening across the world and the continued economic impact of the Russia-Ukraine war.
(Moneycontrol)

🎯SEBI ISSUES NORMS TO STANDARDISE USAGE OF RATING SCALES: SEBI has issued rules that credit rating agencies (CRAs) should follow to standardise the use of rating scales by them. CRAs analyse and rate financial instruments, mainly on the debt side, and suggest the risks involved based on the ratings they accord to the instruments. But the ratings are often filled with jargon and complicated for a common person to understand.
According to SEBI, ‘rating outlook’ indicates CRA’s view on the expected direction of the rating movement in the near to medium term, whereas a ‘rating watch’ indicates a CRA’s view on the expected direction of the rating movement in the short term. CRA will have to assign a rating outlook and disclose the same in the press release. Also, the regulator has specified standard descriptors for rating watch and rating outlook.
Rating watch with positive implications, developing implications and negative implications are the three standard descriptors that should be used when an issuer security is placed on rating watch, SEBI said to make it less complicated. Further, stable, positive and negative are the standard descriptors to be used when an issuer or security is placed on rating outlook, SEBI said. The new rules will be effective from January.
Also, SEBI said that rating symbols should have CRA’s first name as prefix. Under this, issuers with ‘AAA’ rating symbols are considered to have the highest degree of safety regarding timely servicing of debt obligations. Debt exposures to such issuers carry lowest credit risk.
While issuers with ‘AA’ and ‘A’ rating symbols are understood to have high and adequate degree of safety, respectively with regard to timely servicing of debt obligations. Debt exposures to such issuers carry very low to low credit risk.
As per SEBI, issuers with BBB rating are considered to have moderate degree of safety regarding timely servicing of debt obligations. Debt exposures to such issuers carry moderate credit risk. Those with BB, B and C ratings are considered to have ‘moderate’, ‘high’, ‘very high’ risk of default, respectively pertaining to timely servicing of debt obligations and issuers with D rating are in default or are expected to be in default soon.
(Business Line)

🎯EPFO RELAXES WITHDRAWAL NORMS FOR EPS-95 SUBSCRIBERS: EPFO on Monday decided to allow withdrawal of accumulations in Employees' Pension Scheme 1995 (EPS-95) for those subscribers who have only less than six months of service left. Further, the board has recommended extending proportionate pensionary benefits for members who have been in the scheme for more than 34 years.
(Business Standard)

🎯BOND YIELDS RISE FOR SECOND MONTH: Indian government bond yields clocked their second straight month of gains in October after ending higher on Monday, tracking similar move in U.S. yields, with traders cautious ahead of a few key central bank meetings this week.The benchmark Indian 10-year government bond yield ended at 7.4454%, after closing at 7.4161% on Friday. The yield has risen five basis points (bps) this month, after jumping 21 bps in September.
(Business Standard)

🎯RUPEE FALLS FOR 10TH STRAIGHT MONTH, RECORDS LONGEST MONTHLY LOSING STREAK SINCE 1985: The rupee slipped over 30 paise on Monday to close at 82.775 against the US dollar, in line with the losses in most other Asian currencies, amid cautiousness ahead of a few key central bank meetings this week.The domestic currency crashed 1.77% against the greenback in October, recording a decline for the 10th straight month. The last time it had a positive month against the dollar was in December 2021. With this, the domestic unit marked the longest monthly losing streak since 1985. The string of monthly losses has put the rupee on course for its worst annual performance in almost a decade.
(Economic Times)

🎯RETAIL INFLATION RISES TO 6.49 PC, FOOD INFLATION AT 7.76 PC FOR INDUSTRIAL WORKERS IN SEPTEMBER: Retail inflation for industrial workers rose to 6.49 per cent in September from 5.85 per cent in August 2022 and 4.40 per cent during the corresponding month a year before mainly due to higher prices of certain food items, according to the government data released. Similarly, food inflation stood at 7.76 per cent against 6.46 per cent of the previous month and 2.26 per cent during the corresponding month a year ago, a labour ministry statement said. The All-India CPI-IW (Consumer Price Index-Industrial Workers) for September, 2022 increased by 1.1 points and stood at 131.3.
(Economic Times)

🎯SMALL SIZED LOANS OF UPTO RS 10 CRORES NOW ACCOUNT FOR 60% OF BANK LOANS, SAYS RBI DY GUV: Small is emerging to be beautiful for commercial banks and the mainstay of their business. The share of smaller loans – of up to Rs.10 crore – in total loans has increased to 60 per cent in 2022 from 45 per cent in 2014 according to RBI deputy governor Michael Patra. Capturing the evolution of the financial landscape in the country over the past 50 years, Patra underscored that the patterns of financial intermediation are shifting.
(Economic Times)

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*FINANCIAL TERMINOLOGY/CONCEPT*

_*PPF vs EPF vs GPF*_
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*Public Provident Fund (PPF)*: This fund is available for the general public. Any person having a PAN may open a PPF account for self and his/her minor children and deposit up to Rs 1.5 lakh in a financial year taking together the contributions made in all the accounts opened against the PAN. The maturity period of a PPF account is 15 years, which may be extended on maturity for a block of 5 years any number of times. The contributions to PPF accounts are eligible for tax benefits u/s 80C of the Income Tax Act and the interests and maturity amounts are also tax-free.

*Employees’ Provident Fund (EPF)*: The benefits of EPF are available to employees of an organization. Private sector companies having more than 20 employees need to adopt EPF mandatorily to provide retirement benefits to employees having a basic salary of up to Rs 15,000 per month. It is optional for the employees having a higher basic salary. Under EPF, an employer contributes 12 per cent of his/her basic salary and the employer also makes a matching contribution. An employee has the option to enhance the contribution level beyond 12 per cent. There are three benefits of EPF – lump sum PF withdrawal at the time of retirement, regular pension under Employees’ Pension Scheme (EPS) and insurance benefit under Employees’ Deposit Linked Insurance (EDLI). Employer’s entire matching contribution up to 12 per cent of the basic (Basic+DA) salary is tax free. Interest received on employees’ contributions above Rs 2.5 lakh has become taxable.

*General Provident Fund (GPF)*: GPF is available to government employees who joined their services on or before December 31, 2003 and are getting pension benefits under the Old Pension Scheme (OPS) for accumulating their retirement corpus. Eligible government employees may contribute minimum 6 per cent of their emoluments and maximum up to 100 per cent of their emoluments.Unlike EPF, there is no contribution from the government and only the employees contribute to GPF. So, GPF is more like PPF. But the differences are that GPF is not available to the general public and the investment limit has now been set at Rs 5 lakh in a financial year. Interest on contribution over Rs 5 lakh in a financial year was made taxable.
**************************************

*RBI KEY RATES*

Repo Rate: 5.90%
SDF: 5.65%
MSF & Bank Rate: 6.15%
CRR: 4.50%
SLR: 18.00%
Fixed Reverse Repo: 3.35%
*FOREX (FBIL 1.30 PM)*
INR / 1 USD : 82.3934
INR / 1 GBP : 95.5351
INR / 1 EUR : 81.9232
INR /100 JPY: 55.7400

*EQUITY MARKET*
Sensex: 60746.59 ( +786.74)
NIFTY : 18012.20 (+225.40)
Bank NIFTY: 41307.90 (+317.10)

_Have a Nice Day_🙏🙏🙏

31/10/2022

*📗FINANCIAL NEWS UPDATES📗*
*📚DT.31.10.2022📚*

🎯MULTIPLE PENALTIES CAN BE IMPOSED ON SERVING CENTRAL GOVT EMPLOYEES: The Department of Personnel and Training (DoPT) has come up with a clarification on the implementation of the second penalty (or multiple penalties) on serving charged officers during the currency of the first penalty. Where such a specific mention has not been made, the two/all penalties should run concurrently and the higher penalty, even though ordered later, should be implemented immediately and after the expiry of its period, if the currency of the period of earlier punishment still continues, the same may be implemented for the balance period,”
(Financial Express)

🎯ONE-STOP FOR INSURANCE SERVICES 'BIMA SUGAM' A GAME CHANGER: IRDAI is working on Bima Sugam, which will act as a game changer in the insurance sector by providing a one-stop platform for multiple services including the sale of policy, renewal, and settlement of claims. This portal will help in expanding insurance pe*******on in the country.
(Business Standard)

🎯PM LAYS FOUNDATION STONE OF C-295 AIRCRAFT MANUFACTURING FACILITY IN VADODARA, GUJARAT: The Prime Minister, Shri Narendra Modi laid the foundation stone of the C-295 Aircraft Manufacturing Facility in Vadodara, Gujarat today. He also visited an exhibition showcasing technological and manufacturing strides in the aerospace industry under Aatmanirbhar Bharat. Addressing the gathering, the Prime Minister said that today we have taken a big step in the direction of making India the manufacturing hub of the world. He said India is making fighter jets, tanks, submarines, medicines, vaccines, electronic gadgets, mobile phones and cars that are popular in many countries.
(PiB, Govt. of India)

🎯SUITORS RAISES CONCERNS OVER BIDDING PROCESS AS RELIANCE CAPITAL RESOLUTION ENTERS FINAL STAGE: Suitors have raised concerns over the bidding process, including the introduction of ‘challenge mechanism’, as the resolution process of debt-ridden Reliance Capital Ltd (RCL) enters the final stage. According to sources, the decision of the Committee of Creditors (CoC) to introduce a new clause ‘Challenge Mechanism’ in the bidding process has upset the bidders. The ‘Challenge Mechanism’ gives lenders the power to oppose any resolution plan as and when they want. Bidders have raised concerns about the introduction of this new clause at this late stage of the bidding process, sources said, adding there was no mention of this mechanism in the Request for Resolution Plan (RFRP) document. RCL had offered two options to all the bidders. Under the first option, companies could bid for Reliance Capital Ltd (RCL), including its eight subsidiaries or clusters. The second option gave the company freedom to bid for its subsidiaries, individually or in a combination.
(Financial Express)

🎯INTELLIGENCE AGENCY SEEKS THRESHOLD FOR INPUTS TO BANKS: The Central Economic Intelligence Bureau (CEIB) has asked public sector banks (PSBs) to approach the finance ministry and fix a minimum loan limit for seeking reports about borrowers, banking sources told FE.Timely release of information on borrowers by the agency to banks is key to curbing economic offences. This also helps banks expedite big-ticket lending for large projects. The agency’s response came after PSBs, under the aegis of the Indian Banks’ Association (IBA), urged it to hasten the transfer of relevant information about borrowers, upon their request, before the sanctioning of large loans. The lenders also wanted the agency to digitise the entire process to make available crucial inputs on economic offences on a real-time basis.
(Financial Express)

🎯EPFO LIKELY TO START INTEREST CREDIT FROM MONDAY: In some good cheer for subscribers who are still waiting for deposit of interest in their provident fund accounts, the retirement fund body is expected to start crediting interest for 2021-22 from Monday (October 31). According to sources, the software upgrade for the purpose of deducting income tax has now been completed and the Employees’ Provident Fund Organisation (EPFO) will now start the process of crediting interest in members’ accounts. “For those members, who are still waiting to see the interest for 2021-22 in their accounts, the interest will be visible soon,” said a person familiar with the development. For the fiscal 2021-22, the EPFO has fixed the interest rate at 8.1 per cent but many subscribers have complained that they are unable to see it in their e-statements.
(Business Line)

🎯PLI FOR LEATHER, FOOTWEAR INDUSTRY COMING SOON: The Centre is likely to soon finalise a proposal to extend the Production Linked Incentive (scheme) for leather and footwear, a highly labour-intensive sector, to promote manufacturing and employment generation in both large and small cities across the country.
(Business Line)

🎯CPSEs CAN’T EXERCISE DELEGATED POWERS FOR PROJECTS OF THEIR SUBSIDIARIES: Department of Public Enterprises (DPE) has said that Maharanta, Navratna, and Miniratna Central Power PSEs cannot exercise delegated powers in respect of projects of their subsidiaries. At present, there are over 250 CPSEs and out of them, 55 are listed. This issue came to light when Oil India approached the Department of Public Enterprises with a query to know whether a Navratna CPSE can approve the projects of NRL (a subsidiary company of OIL) by exercising the power under the Navratna scheme available to OIL. In its response, DPE said that the matter has been examined and it is clarified that the Boards of Maharanta, Navratna, and Miniratna CPSEs have been delegated certain financial and operational powers.
(Business Line)

🎯PRE-DEPOSIT TO APPEAL UNDER OLD EXCISE, SERVICE TAX LAWS TO BE ONLY IN CASH: CBIC: Central Board of Indirect Taxes & Customs (CBIC) has said that pre-deposits for appeals in cases related to erstwhile Central Excise Duty and Service Tax can be made only in cash and not through Electronic Cash Ledger. CBIC said that any credit, tax, interest, fine or penalty recoverable from the person before, on, or after July 1, 2017, under the existing law should be recovered as an arrear of tax under CGST Act.
(Business Line)

🎯REMOVE WITHDRAWAL RESTRICTIONS ON DIGITAL BSBD ACCOUNTS PAYMENT: REPORT: The Reserve Bank needs to keep digital payments outside the purview of withdrawal restrictions on zero-balance basic savings bank deposit (BSBD) accounts and let the government allow a uniform fee of 0.3 per cent, in lieu of the Merchant Discount Rate (MDR), on e-commerce transactions, as per a report. The IIT Bombay report further said as much as Rs 5,000 crore can be raised per annum through a 0.3 per cent fee on payments through all electronic modes at e-commerce platforms, which could be used to maintain and strengthen the UPI infrastructure. Such a fee imposed on e-commerce merchants and institutions who cannot transact in currency notes would be more in line with 'digital payment facilitation fee'.
(Business Standard)

🎯BOI TO RAISE UP TO RS 2,500 CR IN CAPITAL VIA AT1 BONDS FOR BIZ GROWTH: Public sector lender Bank of India plans to raise up to Rs 2,500 crore in capital through additional tier-I bonds (AT1) bonds to support business growth. There is investor interest in AT1 instruments of banks due to or attractive coupons. Last month, the country's largest lender State Bank of India raised India’s largest lender Rs 6,872 crore at a cut-off of 7.75 per cent through AT1 bonds.
(Business Standard)

🎯INDIA TO CONTRIBUTE $500,000 FOR UN TRUST FUND FOR COUNTER-TERRORISM: External Affairs Minister S Jaishankar on Saturday said that India will contribute USD 500,000 to the United Nations Trust Fund for Counter Terrorism this year to aid capacity-building support to member states in combating terrorism.
(Business Standard)

🎯MEGHALAYA INKS MOU WITH CREDIT GUARANTEE FUND TRUST FOR MSME BORROWERS: The Meghalaya government signed an MoU with the CGTMSE to help facilitate flow of credit to MSME borrowers. The MoU between the state Finance department and the CGTMSE under the Ministry of MSME was signed to implement the 'Meghalaya Credit Guarantee Scheme', a statement issued by the department said. Currently, the loans taken by MSME borrowers are covered under Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE) against a risk coverage of 75 per cent of the loan amount under various MSME schemes. To overcome this major challenge, the launching the MCGS increases the coverage guarantee up to a maximum of 95 per cent and will minimize the risk and encourage collateral free lending by the member lending institutions.
(Business Standard)

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*FINANCIAL TERMINOLOGY/CONCEPT*

_*COMMERCIAL PAPER*_
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Introduced in India in the year 1990, Commercial Paper (CP) is an unsecured money market instrument issued in the form of a promissory note. CP, is a privately placed instrument, to enable highly rated corporate borrowers, primary dealers (PDs) and all-India financial institutions (FIs) for short-term borrowings from market.
Eligibility for Issue of CP: (I) Companies, including Non-Banking Finance Companies (NBFCs) and All India Financial Institutions (AIFIs), are eligible to issue CPs subject to the condition that any fund-based facility availed of from bank(s) and/or financial institutions is classified as a standard asset by all financing banks/institutions at the time of issue. (ii) Other entities like co-operative societies/unions, government entities, trusts, limited liability partnerships and any other body corporate having presence in India with a net worth of ₹ 100 crore or higher subject to the condition as specified above. (iii) The minimum credit rating shall be ‘A3’ as per rating symbol and definition prescribed by SEBI from any of the SEBI registered CRAs. Eligible issuers, whose total CP issuance during a calendar year is ₹ 1000 crore or more, shall obtain credit rating for issuance of CPs from at least two CRAs registered with SEBI and should adopt the lower of the two ratings. Where both ratings are the same, the issuance shall be for the lower of the two amounts for which ratings are obtained.
Eligible Investors: Individuals, banks, other corporate bodies (registered or incorporated in India) and unincorporated bodies, NRIs and Foreign Institutional Investors (FIIs).
Form of the instrument and issuance procedure: Issued in the form of Promissory Note. Minimum investment value is Rs.5.00 Lakh (face value) and then after in multiples of Rs.5.00 lakhs. CP shall be issued at a discount to face value. No issuer shall have the issue of CP underwritten or co-accepted. Options (call/put) are not permitted on CP. Tenor of CPs shall be 7 days to 1 Year.
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*RBI KEY RATES*

Repo Rate: 5.90%
SDF: 5.65%
MSF & Bank Rate: 6.15%
CRR: 4.50%
SLR: 18.00%
Fixed Reverse Repo: 3.35%

*FOREX (FBIL 1.30 PM)*
INR / 1 USD : 82.4092
INR / 1 GBP : 95.1129
INR / 1 EUR : 82.1405
INR /100 JPY : 56.2500

*EQUITY MARKET*
Sensex: 59959.85 ( +203.01)
NIFTY : 17786.80 (+49.80)
Bank NIFTY: 40990.80 (-308.50)

_Have a Nice Day_
🙏🙏🙏

🎯🎯🎯🎯🎯🎯🎯🎯🎯🎯

29/10/2022

*📗BANKING*
*& FINANCIAL NEWS UPDATES📗*
*📚DT.29.10.2022📚*

🎯RBI GOVERNOR CAUTIONS ON BACKDOOR ENTRY OF FINTECHS: The use of technology has made financial entities more efficient, but it has also led to backdoor entry of unregulated players into the financial space that often do not abide by norms, Reserve Bank of India (RBI) Governor Shaktikanta Das said on Friday.“This leads to several concerns including mis-selling, breach of customer privacy, unfair business conduct, usurious interest rates, and unethical loan recovery practices,” Das said at the annual conference of RBI ombudsman at Jodhpur. “Customers are initially tempted to borrow from these entities because of simplified or no documentation requirements followed by prompt disbursals. It is only later that the customers realise the serious downsides to such borrowings,” Das said. The RBI recently came out with detailed guidelines on digital lending mandating such entities to provide a key fact statement to the borrowers containing the annual percentage rate (APR), the recovery mechanism etc.
(Business Standard)

🎯INDIA'S FOREX RESERVES FALL TO TWO-YEAR LOW AT $524.52 BILLION: ndia's foreign exchange reserves fell for the week ending October 21 as the Reserve Bank of India (RBI) continues to protect the rupee from falling further. The RBI's weekly statistical supplement showed on Friday that the forex reserves of the country fell by $3.85 billion to $524.52 billion in the week ended October 21.The fall in the foreign exchange reserves can be attributed to a decrease in the Foreign Currency Assets (FCA), which is a major component of the overall reserves. The FCA dropped by $3.59 billion to $465.08 billion for the week ending October 21. Gold reserves also fell by $247 million to $37.21. So far, the central bank has spent more than $100 billion of forex reserves to shield the rupee, which has fallen about 12 percent against the dollar this year.
(Moneycontrol)

🎯TWITTER TO ALLOW USERS TO TRADE NFTS THROUGH TWEETS ON PILOT BASIS: Twitter is set to enable a feature on an experimental basis that will allow users to buy and sell non-fungible tokens (NFTs) through tweets posted on the microblogging site. The trading will be enabled through partnership with four marketplaces - Rarible, Magic Eden, Dapper Labs and GuardianLink’s Jump.trade. The feature is to be rolled out on a pilot basis using 'Tweet Tiles' -- an interactive customisable widget which was earlier tried by Twitter in collaboration with news media companies New York Times, Wall Street Journal, and The Guardian. The Tweet Tiles for NFT trading will allow users to view a dedicated panel in a tweet, and select the marketplace listing by clicking on it.
(Moneycontrol)
6
🎯SEBI DEFERS DEADLINE FOR DIRECT ETF TRANSACTIONS YET AGAIN: Capital market regulator SEBI has postponed implementation of the clause restricting transaction of less than ₹25 crore in passive funds to stock exchanges. In a circular issued on Friday, SEBI said based on further feedback received from stakeholders, it has been decided that the clause 2(IV)(A) of the circular will be applicable with effect from May 1, 2023. In order to enhance liquidity in units of ETFs on stock exchange platform, SEBI had earlier decided that direct transaction in ETFs with AMCs shall be facilitated for investors only for transactions above a specified threshold. In this regard, to begin with, any order placed for redemption or subscription directly with the AMC must be greater than ₹25 crore. The aforesaid threshold shall not be applicable for market makers and will be periodically reviewed, SEBI had said on May 23.This new norm, which was supposed to be effective July 1, was deferred to November 1 and now, May 2023.
(Business Line)

🎯LIC TO MOVE ₹1.8 LAKH CRORE INTO SHAREHOLDERS’ FUND: REPORT: Life Insurance Corp of India (LIC) is planning to transfer nearly ₹1.8 lakh crore from policy holders' funds into a fund earmarked to pay dividends or issue bonus shares, two sources said on Friday, as the country's largest insurer aims to shore up both its own net worth and investor confidence. The company plans to transfer ₹1.8 lakh crore, a sixth of the ₹11.57 lakh crore lying in its non-participating fund, to its shareholders' fund, according to an official aware of the matter.
(Business Line)

🎯PARAG AGRAWAL’S 11-MONTH TENURE AS TWITTER CEO ENDS AS ELON MUSK TAKES CONTROL: When Parag Agrawal was appointed CEO of Twitter in November 2021, the IIT graduate joined a steadily growing club of executives from India rising to the top of global corporations, but the 38-year-old executive’s brief tenure at the helm of the social media giant was challenging and chaotic. Less than a year into his job as CEO, India-born Agrawal was ousted from the company by its new owner billionaire Elon Musk who on Thursday closed the 44 billion dollar deal to acquire the social media behemoth.
(Financial Express)

🎯SEBI REDUCES FACE VALUE FOR DEBT SECURITIES TO BOOST CORPORATE BOND MARKET LIQUIDITY: To enhance liquidity in the corporate bond market, Sebi on Friday reduced the face value of debt security and non-convertible redeemable preference share issued on private placement basis to Rs 1 lakh from the current Rs 10 lakh. Further, non-institutional investors consider the high ticket size as a deterrent which restricts their ability to access the market for corporate bonds. If the face value and trading lot is reduced, more investors can participate, which in turn will enhance the liquidity in the corporate bond market, Sebi said in a circular.
(Financial Express)

🎯FINANCE MINISTRY ASKS 92 CPSEs TO REGISTER ON THE TReDS PLATFORM: The Ministry of Finance has asked 92 Central Public Sector Enterprises (CPSEs) to register themselves on the Trade Receivables Discounting System (TReDS), an invoice discounting platform for micro, small and medium enterprises (MSMEs), as per a report by the Business Standard. The institutional mechanism, TReDS is regulated by Reserve Bank of India (RBI) to enable discounting of MSMEs trade receivables from CPSEs and corporate buyers through multiple financiers.
(Financial Express)

🎯NFRA WARNS AUDITORS AGAINST NON-ACCRUAL OF INTEREST ON NPA BORROWINGS: The National Financial Reporting Authority has cautioned companies and auditors against non-accrual of interest on borrowings declared NPA by banks or for which the company is negotiating a one-time settlement.“Mere classification of the company’s loans as NPAs by the lender banks does not relieve the borrowing firm from its liability towards payment of interest or the principal,” NFRA said.The issue had come to NFRA’s attention during the proceedings of professional misconduct by the statutory auditor of Vikas WSP Ltd. The authority has observed similar violations in respect of many other companies too.“The company’s discontinuation of recognition of accrual of interest while calculating the authorised cost of borrowing was in violation of effective interest rate method and effective interest rate principles and concepts underpinning the amortised cost measurement,” a circular issued by NFRA said.
(Business Standard)

🎯RBI STEPS UP FUND INFUSION AS SYSTEM LIQUIDITY 'ALMOST NEUTRAL': Increased demand for cash during the festival season, a slow pace of government spending, tax outflows, and the central bank’s interventions in the currency market have led to the overall liquidity surplus in the banking system almost entirely drying up, analysts said.Over the last five days, the RBI has injected a daily average of Rs 72,456 crore worth of funds into the banking system. The cash infusion on October 25 nearly hit the Rs 1-trillion mark, at Rs 98,372.89 crore – the largest since April 24, 2019, when the RBI had infused funds worth Rs 1.45 trillion. When the RBI injects funds into the banking system, it implies that liquidity conditions are tight.Over the past few days, outflows on account of goods and services tax (GST) payments have occurred in the banking system, with the dealers pe***ng the amount at close to Rs 1.5 trillion this week.
(Business Standard)

🎯RBI REVIEWING REGULATION FOR GOVERNING NON-CORE BUSINESS OF BANKS: The Reserve Bank of India (RBI) intends to change the regulatory framework governing non-banking activities carried out by banks and their group entities such as insurance and asset management, reported the Financial Express, citing sources. According to the central bank, the moveis aimed at eliminating any regulatory arbitrage inherent in the current system. The modifications could be made by amending the Banking Regulation Act. According to sources, an internal panel has been set up by the RBI for this purpose.
(Business Standard)
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*FINANCIAL TERMINOLOGY/CONCEPT*

_*INVESTMENT & CAPITAL*_
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🎯While financial economists use the word investment to refer to the acquisition and holding of potentially income-generating forms of wealth such as stocks and bonds, macroeconomists usually use the word for the sum of fixed investment; the purchasing of a certain amount of newly produced productive equipment, buildings or other productive physical assets per unit of time; and inventory investment, the accumulation of inventories over time. This is one of the major types of expenditure in an economy, the others being consumption expenditure, government expenditure, and expenditure on a country's export goods by people outside the country.

🎯The everyday usage of investment coincides with the one used by financial economists- the acquisition and holding of potentially income-generating forms of wealth such as stocks and bonds.

🎯Similarly, while financial economists use the word capital to refer to funds used by entrepreneurs and businesses to buy what they need to make their products or to provide their services, macroeconomists and microeconomists use the term capital to mean productive equipment, buildings or other productive physical assets.

🎯As with the term investment, the everyday usage of capital coincides with its use by financial economists.
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*RBI KEY RATES*

Repo Rate: 5.90%
SDF: 5.65%
MSF & Bank Rate: 6.15%
CRR: 4.50%
SLR: 18.00%
Fixed Reverse Repo: 3.35%

*FOREX (FBIL 1.30 PM)*
INR / 1 USD : 82.4092
INR / 1 GBP : 95.1129
INR / 1 EUR : 82.1405
INR /100 JPY : 56.2500

*EQUITY MARKET*
Sensex: 59959.85 ( +203.01)
NIFTY : 17786.80 (+49.80)
Bank NIFTY: 40990.80 (-308.50)

_Have a Nice Day_
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