Sebi unveils six-tier credit risk-o-meter for debt securities
The Securities and Exchange Board of India is introducing a mandatory colour coded credit risk-o-meter for debt securities. This new meter categorizes credit risk into six color-coded levels, indicating risk levels accurately. Issuers and online bond platforms will need to adopt these disclosures in their documentation. The measures aim to improve transparency in the investment […]
Reserves drop as FCNR inflows dry, RBI dollar sales continue
Reserves have fallen to $734.6 billion in the week ended October 2, the fourth consecutive week of fall and down from a recent peak of $785.71 billion reported on September 4, according to a footnote to governor Sanjay Malhotra’s monetary policy statement on Wednesday. The latest reserve numbers were released earlier than the scheduled date […]
CARE upgrades Adani Enterprises to ‘AA’, retains ‘stable’ outlook
CARE Ratings has upgraded the long-term rating of Adani Enterprises to ‘AA’, affirming a stable outlook. This elevation underscores enhanced financial adaptability, attributed to recent capital influx and subsidiary stake divestitures. With profit growth likely, supported by a resurgence at Kutch Copper Limited and continued airport operations, coupled with the promoter family’s substantial holdings, Adani’s […]
RBI still assessing revolving credit norms: Sanjay Malhotra
Reserve Bank of India governor Sanjay Malhotra has indicated that regulations on revolving credit by non-banking finance companies are under review. The RBI issued draft norms limiting NBFCs to term loans without revolving credit options. Malhotra said that systemic risks linked to these changes will be thoroughly evaluated before reaching a decision.
FPIs sell Rs 21,745 crore in second half of Sep, in oil & gas, auto & financials
Foreign portfolio investors experienced a significant increase in selling Indian equities during the latter half of September. Financial stocks led the sell-off, with the highest outflows totaling around ₹6,943 crore. Oil and gas and auto sectors experienced notable selling, reflecting profit-taking and portfolio rebalancing. Telecom stocks faced profit-taking ahead of the upcoming Jio Platforms IPO, […]
RBI raises repo rate to 5.5% in first hike under Governor Sanjay Malhotra, shifts stance to ‘calibrated tightening’
The RBI raised its benchmark repo rate by 25 basis points to 5.5%, its first hike since February 2023, and shifted its policy stance to ‘calibrated tightening’. The move came as the central bank raised its FY27 growth forecast to 7.1% while warning that inflation and its outlook were no longer benign.
RBI rate hike: Your home loan EMI just went up
The monetary policy committee (MPC) voted unanimously for the increase and adopted a stance of “calibrated tightening”. RBI Governor Sanjay Malhotra said rate cuts were off the table for now, leaving a further increase or a pause as the choices at future meetings. The impact on existing borrowers will depend on the benchmark in their […]
FCNR inflows to keep cap on bank deposit rates
The liquidity from the foreign currency non-resident deposits is likely to stabilize bank deposit rates temporarily. This situation will allow banks to benefit from higher lending rates associated with floating rate loans. Despite the current surplus liquidity, analysts foresee a shift towards neutrality by the end of December. The Reserve Bank of India emphasizes the […]
RBI says it will ensure ‘undervalued’ rupee finds its correct level
The Reserve Bank of India has stated its intent to stabilize the undervalued rupee, which reached a five-month low. Despite raising the policy rate for the first time since February 2023, the rupee has fallen due to foreign capital outflows. According to economists, the stronger dollar index contributes to the rupee’s pressure in the market. […]