The Reserve Bank of India (RBI) proposed some new rules for managing the risks associated with algo-based lending. Regulated Entities (REs) utilise models throughout the credit management life cycle for borrower selection, credit scoring, pricing, risk management, and credit loss provisions. The draft circular from RBI, ”Regulatory Principles for Management of Model Risks in Credit”, …
Introduction Japan’s yen hit mid-January highs around 145.28 in Monday’s intraday deals, extending its recent appreciation against the US dollar. Japan’s currency has appreciated by 10 percent against the dollar in just over three weeks, partly driven by the Bank of Japan’s (BoJ’s) 15-basis points rate hike to 0.25 percent last week. Earlier, on March …
Asset management companies (AMCs) are now required to establish robust institutional mechanisms to detect and prevent potential market abuse, including front-running and fraudulent securities transactions. In a circular issued on Monday, the Securities and Exchange Board of India (SEBI) mandated that AMCs set up comprehensive surveillance systems, internal controls, and escalation procedures to identify, monitor, …
The Nifty Realty Index, a critical barometer for the real estate sector, has faced a notable correction. After reaching a peak on June 18, the index has since dropped 15%. However, on Tuesday, the index snapped a four-day losing streak, registering gains of over 2%. This pullback is significant, given the recent performance and broader …
Domestic mutual funds (MFs) have substantially increased their holdings in companies listed on the National Stock Exchange (NSE), reaching an unprecedented high. As of June 30, 2024, mutual funds held a record 9.17% of NSE-listed companies, up from 8.93% in March 2024. This growth is driven by robust net inflows of over Rs 1 lakh …
With the intensifying political crisis in Bangladesh, its textile industry is facing severe disruptions which is a critical component of its economy. As international buyers look for alternative markets, India stands to benefit significantly. The textile sector, contributing a major share of Bangladesh’s exports, faces severe impacts due to the unrest, prompting buyers to shift …
Sharp Decline in Equity Benchmark Indices Indian markets are experiencing a Black Monday as equity benchmark indices have fallen more than 3% on Monday. This sharp decline is significant, but what stands out even more is the dramatic rise in the India VIX, or India Volatility Index, which is a measure of the market’s expectations …
The NSE benchmark Nifty50 index has experienced a significant decline of over 1.5% on Monday, following a drop of more than 1% on the previous trading day. This cumulative fall of over 2.5% in just two trading sessions has caused the index to slip below the 20-day moving average (DMA), a crucial indicator for short-term …
Warren Buffett’s Berkshire Hathaway has made a notable shift in its investment strategy by substantially increasing its cash reserves while reducing its significant stake in Apple. This move comes amid rising economic uncertainties and volatile market conditions. Cash Reserves Surge to Record Levels Berkshire Hathaway’s cash holdings have surged to nearly $280 billion, marking an …
Corporate Capital Ventures, a Delhi-based merchant banker specialising in SME IPOs, is under investigation by the Securities and Exchange Board of India (SEBI) for alleged irregularities in managing public issues. The probe was initiated following an anonymous complaint alleging insider trading by the merchant banker’s directors and their associates. The complaint specifically pointed to the …
