RBI has proposed to allow non-resident Indians to access rupee interest rate derivatives market and participate in overnight indexed swap market. This will provide hedging facility to NRIs and broad-base participation in the financial markets.
Companies and Markets
Companies & Markets
In its final monetary policy meeting of 2018, the RBI decided to keep the policy rate (Repo rate) unchanged at 6.50 per cent. The decision was unanimous (all members voted in favour of hold) and was in line with market expectations.
Sharp correction in oil prices since the last MPC meet in October, softening of inflation expectations, and easing of depreciation pressures for the rupee are the main factors that led the RBI to keep the policy rate unchanged.
Rate-sensitive NBFC, bank, realty stocks fell after the RBI maintained status quo on repo rate at 6.5 per cent in its monetary policy review meeting that concluded on Wednesday.
India Inc Wednesday said the RBI’s decision to maintain status quo in its monetary policy was on expected lines in view of headwinds and sought more measures by the central bank to improve the credit flow to the economy.
“There is an urgent need to improve the credit flow to the real economy. GDP growth is already showing signs of slowing down. With crude oil prices down, we need to take further measures for the revival of animal spirits in the economy and give more momentum to it,” Ficci president Rashesh Shah said.
To help release resources for credit, the Reserve Bank of India (RBI) in its fifth bi-monthly monetary policy on Wednesday announced a calibrated reduction in Statutory Liquidity Ratio (SLR) levels by 25 basis points per quarter starting from the January to March 2019 quarter until the SLR level reached 18 per cent. The SLR ratio currently stands at 19.50 per cent and lowering the SLR would prod banks to lend more rather than park their cash in safe-haven government securities.
The Uday Kotak-led new board of Infrastructure Leasing & Financial Services (IL&FS) seems clueless about steps required to clean the mess at the infrastructure conglomerate.
At several meetings since its reconstitution, the board has largely maintained status quo as every other day new facts are emerging delaying the resolution process.
A day after the ruling BJP termed the extradition of Christian Michel, the alleged middleman in the AgustaWestland chopper deal case, a diplomatic victory for India and pointed out that it could spell “serious trouble” for Congress’ “first family”, referring to Gandhis, the Congress on Wednesday alleged that the BJP and prime minister Narendra Modi were “latching” on to Michel for a “smear campaign” against opposition leaders.
Markets regulator Sebi has proposed a framework for warehouse companies and other allied service providers engaged in non-agricultural goods, a move which will help in improving the delivery and settlement mechanism.
The proposed guidelines would be applicable for warehouses and assayers engaged in non-agricultural commodities such as precious metals, gems and stones, metals, minerals and alloys but excludes crude oil, electricity and natural gas.
A fresh storm may be brewing ahead of the December 14 RBI board meeting with the central bank suddenly saying CRR cut is not under the ambit of monetary policy committee (MPC) and it does not see the need to use the cash reserve ratio as a tool for liquidity management, a stand and statement that may not go down well with North Block mandarins.
In a shocking revelation, the ministry of corporate affairs (MCA) has stated that in two years — between FY17 and FY18 — infrastructure giant Infrastructure Leasing & Financial Services (IL&FS) had siphoned massive funds through loans and advances to its group entities.
The ministry also observed that five top executives, including chairman Ravi Parthasarathy, played major role in the fraudulent activities.