Week ending 7th Sept 2024
1. Markets
Indian equities experienced a selloff, with the Nifty and Sensex both falling by 1.2%, following speculation about foreign funds selling ahead of regulatory deadlines. Foreign ownership of Indian government bonds, surpassed $2.85 billion in August.
2. Banking
The U.S. Federal Reserve is set to unveil new banking capital rules, reducing capital requirements which could positively affect Indian banks. In India, a real-time fraud list featuring over 3,000 entities is being circulated to mitigate rising bank fraud cases.
3. SEBI
SEBI proposed stricter insider trading regulations, expanding the definition of connected persons and presuming guilt. Concerns arose over regulatory overreach and the potential for criminalizing innocent parties.
4. Insurance
The IRDAI issued a Master Circular streamlining norms to protect policyholders. New guidelines require policies to be issued electronically and introduce faster claims processing. The focus is on improving service standards and building trust within the sector.
5. Economy
The World Bank raised India's FY25 growth forecast to 7%, driven by agriculture and private consumption. India recorded trade surpluses with 151 countries and saw a rise in FDI equity flows of 47.8% y-o-y. The PMI indicated strong services growth but slowing manufacturing activity. GSTN will launch an Invoice Management System on October 1 to prevent tax discrepancies and fake claims.
6. PE/VC
At the Global Fintech Fest, TVS Capital Funds and EY-Parthenon unveiled a report on fintech opportunities in a $10 trillion economy. Key points include the rise of fintech IPOs, profit growth, banking sector expansion, and increasing tech spending. Financial services continue to attract significant VC/PE funding.
Suggest reading detailed blog with data points >> https://bit.ly/Weekending7thSep
Interesting developments in the market lately! The impact of FPI sell-offs and regulatory changes are certainly significant. The proposed SEBI amendments and the fraud list among banks highlight the ongoing evolution in our financial landscape. Looking forward to diving into the detailed blog for more insights on these topics and the Fintech report. It’s crucial for investors and industry professionals to stay updated and adapt to these changes. What’s your take on the potential effects of these regulatory shifts?